performance appraisal indawar shoes

Preface

Managing human resources in today’s dynamic environment is becoming more and

more complex as well as important. Recognition of people as a valuable resource

in the organization has led to increases trends in employee maintenance, job

security, etc

My research project deals with “Performance Management System as carried out at

Dawar puram (Kutail). In this report, I have studied &evaluated the performance

Management System process as it is carried out in the company.

In the first section of my report, I have conducted a research study to evaluate the

process of performance Management System as carried out at Dawar puram

(Kutail).

The second section of my report deals with a detailed company profile. It includes

the company’s history: its activities and operations, organizational structure, etc.

this section attempts to give detailed information about the company and the nature

of it’s functioning.

The third section deals with performance Management System. In this section, I

have given a brief conceptual explanation to performance Management System. It

contains the definition, process and significance of performance Management

System. this section also contains my findings, conclusions, suggestions and

feedback

1 | P a g e

Overview of the footwear industrial sector

Footwear has become out as one of the basic needs and necessities of today’s

human being. It is as important for a human being as clothes and shelters. The

importance of this product has been highly recognized in the western countries.

Footwear industry in these countries come in the category of other developed

industries, for example Nike’s and Reebok’s of America,Lapsa2 of U.K., Goose of

Italy are some of the highly reputed companies manufacturing hi-tech shoes and

having worldwide acceptability. The footwear industry in India is somehow

different and regretfully his industry could not develop itself despite the fact that

India being second largest populated country in the world, surplus manpower and

resources of raw materials, whatever the reason being

The footwear sector is a diverse industry which covers a wide variety of materials

(textile, plastics, rubber and leather) and products from different types of men's,

women's and children's footwear to more specialized products like snowboard

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boots and protective footwear. This diversity of end products corresponds to a

multitude of industrial processes, enterprises and market structures.

Footwear industry action aims to promote innovation, competitiveness and

competition between companies involved in the sector, combat fraud and

counterfeiting, and protect consumers' health and the environment.

The Indian footwear industry consists of a large number of small enterprises most

of which are located in regions with little industrial diversity. However, there are

differences from one member state to the other.

Footwear is expected to comprise about 60% of the total leather exports by 2011

from over 38% in 2006-07.

Presently, the Indian footwear market is dominated by Men's footwear market that

accounts for nearly 58% of the total Indian footwear retail market.

By products, the Indian footwear market is dominated by casual footwear market

that makes up for nearly two-third of the total footwear retail market.

The Indian footwear market scores over other footwear markets as it gives benefits

like low cost of production, abundant raw material, and has huge consumption

market.

The footwear component industry also has enormous opportunity for growth to

cater to increasing production of footwear of various types, both for export and

domestic market

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INTRODUCTION

There were about 200 footwear exporting firms in Agra exporting to several countries, but

besides these firms, there were also about 6,000 small-scale footwear-manufacturing units

functioning in the town that were yet to make a breakthrough in the world market.

DAWAR TODAY

An OHSAS 18001 & SA 8000 ISO 9001 & 14001 Company

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For more than Two decades, Dawar Group has controlled the Specification, Production,

Distribution and Technical information of footwear technology. "Dawar Group" was founded in

"1977" on the modest scale in the city Agra. A move to set-up more Units were necessary to

cope with the abrupt increase in the volume of business. As a part of its expansion and

diversification drive, Two manufacturing Units came into existence under the Group.

DAWAR FOOTWEAR IND:-

is a Govt. recognized export house engaged in the manufacture & export of Men's Footwear i.e

Classic- Comfort Classic & Sport Line & all type of Uppers.

DAWAR LSD:- is a Govt. recognized export house engaged in the manufacture &

export of Ladies Footwear *Fashion *Comfort *Sporty *Woven Ankled-Mid-Long Boots, Shoes

& Sandals..

SAKSHAM DAWAR MEMORIAL TRUST:

It is children education in addition to this it also provides monitory assistance to a

large member of its workers children studying in other schools.

The group also works in association with number of NGO ‘S to full fill its other

social welfare commitments. It also organizes regular health checkups for the

families of its workers.

MARKETING TACTICS:

Our product range is exhibited is many prestigious fair like ITALY, GERMANY

AND USA.

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VISION OF DAWAR

“To be the best Quality footwear & footwear components producing world class plant with

lowest production cost, Ecofriendly,Safe & healthy environment, conformance with social

/ethical compliance.”

Expansion:-

In house production of PU, TPR Soles and Shoes

Dawar family is a large and growing family. It extends beyond the people who work for Dawar

Group. Their families are also an integral part of it. The Group shares the hopes and aspirations

of its people and their children. It goes out of its way to reward their hard work and dedication.

"Saksham Dawar Memorial Trust" is a small but significant step in that direction. Its a child

education programme for the children of the workers. In addition to this, it also provides

monetary assistance to a large number of its worker's children studying in other schools.

The Group also works in association with a number of NGO's to fulfill its other social welfare

commitments. It also organizes regular health check-ups for the families of its workers. But these

efforts are not enough. There is a lot more that needs to be done. Nobody understands it more

than the chairman of the Group, "Mr. Puran Dawar".LEADING FROM THE FRONT

Double Capacity From 6400 to 10000 Pairs a Day

• Company Has Plans To Foray Into Retail

• Plans To Launch Own Brand Globally.

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• To Foray in Chain Of Hospitals in Tier 3 Cities in North India

An OHSAS 18001 & SA 8000 ISO 9001 & 14001 Company

Mr. Puran Dawar(Chairman)

Mr. Prem Agarwal(General Manager)

Dawar Group is led from the front by "Mr. Puran Dawar", a pro-active veteran from the shoe

industry. Mr. Dawar is a widely travelled person and has been associated with the shoe industry

for more than three decades. He understands the dynamics of shoe business and how it is

conducted in the international market.

With his clear vision and rock solid dedication, he has brought Dawar Group this far and

continues to lead it with missionary zeal.

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It is Mr. Dawar's concern for his people and environment related issues that has endeared him to

one and all. A visit to Group's manufacturing facility and corporate office reflects these concerns.

Mr. Prem Agarwal , General Manager is a seasoned professional who looks after the day to day

affairs of the company.

OUR PEOPLE

Dawar Group is indebted to its people for their unflinching support and dedication. They have

stood by us in our good, bad and ugly times. They have crafted some of the finest shoes for most

of the top names in international footwear and fashion industry. They have made us a force to

reckon with in the fiercely competitive global footwear industry.

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We, at one end, have not failed them either. To begin with, we have provided them with a world

class working environment envied by many in the industry. Its a hazard free, airy, well lit and

well built working facility we are talking about with clean toilets and adequate drinking water.

Its a facility that encourages performance by its ambience. Hot Indian summer is hardly a

distraction. Their health is a matter of concern to us. Medical check-ups by qualified doctors are

organised at regular intervals to monitor their health and welfare. Then, there is a cafetaria for

people where they get subsidised food items.

There is a volleyball court in the front amidst sprawling greens. It has witnessed many a

competitive in-house tourneys. It is important for our people to know the joy of winning and the

agony of losing to each other. But together they make a formidable team of 800 strong and

highly skilled people we are proud o

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WORK STRENGTH

For a company to stay ahead in terms of quality and competitiveness, it has to rely on the

strength of its own infrastructure and resources. We, at Dawar Group, realised it very early.

Today, we not only have a most modern manufacturing complex but also an array of

sophisticated machines to produce a diverse range of world class footwear.

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Besides a number of Italian Lasting Machines and German Closing Machines, there are other

machines at various stages of production. The assembly line manufacturing enhances production

and ensure quality. On-line Quality Control Checks by seasoned professionals enable us to

monitor consistency in production of a particular order.

From shoe upper to complete shoes, everything is produced in-house there by reducing

production lead time and enhancing cost effectiveness. Over the years, the group has kept a

sturdy pace with technological advances in footwear production. It has continuously upgraded its

infrastructure to produce quality footwear.

Installed Capacity

2000 pairs/day - Ladies Shoes

4000 pairs/day - Men's Shoes

1200 pairs/day - Children shoes

For a company to stay ahead in term of quality and competitiveness. It has a relay

on the strength of its own infrastructure and resource. We at Dawar group releasing

it very early.

Today we not only have a most modern manufacturing complies but also an array

so sophisticated manufacturing complies but also array of sophisticated machine to

produce a diverse range of world class footwear.

Besides a no of Italian hasting machines and German closing machines,

there are other machines of various stages of production online quality checks

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enable us to monitor consistency in production of particular order from shoes

upper to complete shoes; everything is produced in house there by reducing

production had time enhancing cost effectiveness. Over the year the group kept a

study pace with technologically advances in footwear production. It has

continuously upgraded in to infrastructure to produce quality footwear.

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QUALITY POLICY

At Dawar, we look at quality from a different perspective. Concern for quality is ingrained in our

system. It is an integral part of our thought process. And that is how it has become a tangible

aspect of our products. You can see and feel it. Quality is not talking about it; it is doing it. It

should be inherent in your belief system

Over the years, we at Dawar, have evolved our own quality policy turned to the capabilities of

our people. They produce quality because we provide them quality environment and facilities.

We lead the crusade for quality from the front. At Dawar, quality is people driven. Workers

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produce it, professionals inspect it and together they deliver it. From time to time our people

undergo orientation programmes conducted with the assistance of technocrats to understand

qualitative aspects of products we make. To top it all, the management of Dawar Group monitors

the production process to ensure that each footwear bears Dawar's seal of 'Quality Always'

At Dawar, we look at quality from a different prospective concern for quality is

ingrained in our system. it is an integral part of our through process. And that is

how it has become a tangibles aspect of our product you can see and feel it. Quality

is not taking about it. It’s should be inherent in our belief system.

We at Dawar have involved our own quality policy turned in to

capabilities of our peoples.

They produce quality because we provide them quality environment and facilities.

We lead the crusade for quality from the front. At professional inspect it a together

they deliver it.

From time to time people undergo orientation programmers conducted

with the assistance of technocrats to understand qualitative aspect of products

we make. To top it all, the management of Dawar group monitors the

production process to ensure the each foot bears Dawar’s seal of quality always

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ENVIRONMENT FRIENDLY COMPANY

Inherent in the work culture of "Dawar Group" is a deep concern for conservation & Preservation

of the environment. The sprawling greens in front of its Corporate Headquarters and

Manufacturing facility is one such example.A modern waste treatment plant has been installed to

ensure its surroundings are not polluted. The facility has been designed meticulously to match

international standards in terms of temperature control, noise levels etc.

It has "top-of-the-line fire fighting" arrangements. The walls in the working areas are fitted with

fire fighting equipments and fire exits routes are painted all over the work area. The electricity

cables have been laid under the watchful eyes of professionals as per the prescribed standards.

To educate our workers regarding the use of chemicals, regular orientation programmes are

conducted. Our concern for our environment and the measures we have taken to preserve it have

got us an "ISO 14001" Certification.

RESEARCH & DEVELOPMENT

Dawar group is constantly innovating new designs. In sync with latest trends in the European

standards, development of new designs goes on round the year at our Research and Development

department.

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At Dawar group , commitment to provide high class and quality service continues, right from the

designer's sketchbook through to the performance of our shoes on a customer's foot.

Dawar group has adopted latest footwear technology to give new dimension to the creative

designers.

Success is never a matter of desire, it is the product of hard work and vision. The phenomenal

success of Dawar Group proves it. With effective presence in more than "40" countries and a

turnover exceeding, the group has been growing steadily.

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It's success is simply a by product of the implicit faith and confidence its buyers have in its

capabilities. It has never let them down. And that is because their every requirement is met as per

their exact specifications. Today, the Group exports its footwear to some of the top names in

fashion and footwear business. "United Colours Of Benetton, Lumberjack" etc. are some of the

brands it makes footwear for.

Our product range is exhibited in many prestigious fairs like "Riva Del Garda (Italy), GDS

(Germany) and WSA (USA)".

For us at Dawar every customer, no matter big or small, counts. Whenever visiting our

"Corporate headquarters" in India, each customer is looked after well. We have even made

independent work stations for them to work with freedom. All the work stations are equipped

with modern telecommunication facilities. We cherish the mutually rewarding relationship we

share with our customers worldwide.

OUR MAIN MARKET

(1) UK & Europe (2) Scandinavia (3) Australia & North America

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The brand "DAWAR" has been able to maintain its aura of exclusivity and distinction in the

global market. Our brand "DAWAR" cherish the dreams of people from across the world by

providing footwear of their choice. With the growing popularity, proliferation comes along.

The company has elaborated the brand concept by launching a variety of sub-brands and shoes to

suit different occasions. The new brand were coined with attractive catchword, thus helping the

customers finding the right shoes. Our range of brand caters to every need in footwear world.

• U.K. & Europe

• Scandinavia

• North America

• South America

• Australi

PRODUCTS

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WOMENS COLLECTION 2010

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MENS COLLECTION 20

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VALUES OF DAWAR

A Footwear Manufacturing group strong values towards:-

Clientele

Quality

Infrastructure

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CHART OF DAWAR:

ORGANISATION CHART

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Mr. Dawar (Chair Man)Mr. Dawar (Chair Man)

Mr. P.P. Agarwal (G. M.)Mr. P.P. Agarwal (G. M.)

Research & Development Department

Research & Development Department

Production

Department

Production

DepartmentHuman Resource

Department

Human Resource

Department

Mr. Vipin Gupta (RND Manager)

Mr. Vipin Gupta (RND Manager)

Coordinator in Ani Shera

Coordinator in Ani Shera

CoordinatorCoordinator

Purchaser Mr. Ajay Raj

Purchaser Mr. Ajay Raj

Quality Manger

Mr. Manoj Tiwari

Quality Manger

Mr. Manoj Tiwari

S.K. SharmaS.K. Sharma

D. K. SharmaD. K. Sharma

J.K. MishraJ.K. Mishra

Mr. Dinesh Kashyap

Mr. Dinesh Kashyap

Production Manager

Production Manager

Mr. Rajat

Predhan

Mr. Rajat

Predhan

Mr. Bipin Gupta

(H.R. Manager)

Mr. Bipin Gupta

(H.R. Manager)

Welfare officer Ritesh Verma

Welfare officer Ritesh Verma

Attendance System operator

Amit Menna

Attendance System operator

Amit Menna

COMPANY POLICY OF DAWAR

We at DAWAR FOOTWEAR IND. a leading manufacturer and exporter of

footwear and footwear components, are committed to carry out our activities with

highest concern for Customer delight, Environmental protection, Occupational

Health & Safety, Ethical governance and in compliance with all applicable

statutory, legislative and national and international standards requirements.

To this goal, we shall:

Supply high quality of footwear and footwear components and meet

requirements of our customers.

Continually improve Quality, Productivity, Social Performance, cost of poor

quality, impact of our activities on air, water & land and also in prevention /

control of Occupational Health and Safety risks;

Monitor, control and upgrade our technology / processes and operational

practices so as to optimize resource consumption and ensure safe work

environment / well being at work place;

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Recognize and care for the concerns of our employees and affected interested

parties regarding the impact of our operations on the environment and

Occupational Health & Safety hazards at work place;

Participate in overall social development of the neighborhood;

Strengthen awareness, skill and competence of our employees so as to enable

them to contribute effectively in ensuring sound quality, environmental, social,

occupational health and safety management.

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GROWTH AND DEVELOPMENT OF ORGANIZATION

215

368

211

458

364

761

849

938

617

841

0

100

200

300

400

500

600

700

800

900

1000

VALUE IN LACS

APRIL'06

APRIL'07

MAY '06 MAY '07 JUNE '06 JUNE '07 JULY '06 JULY '07 AUG '06 AUG '07

MONTH

MONTHLY SALES PERFORMANCE

Cumulative Total (In Lacs) 826 1587 2525 3366

This Index show how Dawar group increase his performance Month by month

and also year by year

PRESENT STATUS OF ORGANIZATION

Ranks of the Footwear company in Agra :-

1. DAWAR GROUP

2. TEZ SHOES

3. GUPTA OVERSES

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4. ROGER EXPORT

5. VIROLA INDUSTRY

6. PARK EXPORT

7. METRO & METRO

8. SUPER HOUSE

9. VASHANA EXPORT

10. NOVA SHOES

DAWAR GROUP [excellence in footwear] ranked no. 1 in export of Leather

Shoes

OBJECTIVES OF DAWAR

To reduce spillage & leakage

To reduce oil, grease & leather contents in discharged water to zero

To reduce electrical energy consumption by 5%

To provide Awareness Training to all employees of company &

subcontractors

To ensure improved emergency preparedness

To ensure safe Workplace for employees

To ensure improved safe work practices

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To review & update personal Manual

To upgrade sanitation facilities in the plant

To maintain zero overtime

To reduce diesel energy consumption by 3%

Market profile of the organization:-

DAWAR GROUP capture 24% shoe market in whole AGRA

24%

12%

10%10%

8%

8%

8%

7%

7%6%

DAWAR GROUP

TEJ SHOE

GUPTA OVERSES

ROGER EXPORT

VIROLA INDUSTRY

PARK EXPORT

METRO & METRO

SUPER HOUSE

VASHANA EXPORT

NOVA SHOES

.

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MANUFACTURING PROCESS OF DAWAR

Raw Material

Cutting

Closing

Lasting

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MARKETING STRATEGY

Dawar has a distribution Network that rivals the human arterial system reticulate

network of retailers, showrooms and exclusive outlets with a reach like a blue

green marine octopus.

Thanks to the vision and drive of our corporate, we now have a sales Network that

brings the breathtaking world of super footwear right at your feet, within seconds.

A marketing system that we have conceived and created is understandably, the

envy of the competition.

Marketing Network National International

Offices 13 2

Distributors 150 10

Exclusive showrooms 350 10

Shoe stations 7000 500

EXPORT MARKET

The various export markets of the Dawar Shoes Ltd.are:

Germany

Italy

Spain

East Europe

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Indian sub continents

PROCESS FLOW CHART

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STUCK - ON

PRODUCTION

PLANNING & CONTROL

MATERIALS

MANAGEMENTFABRICATION

PRODUCTIONS PURCHASING JOB

WORK

EVA INJECTED

FOOTWEAR

CUTTING & STORAGE

CLOSING UPPER STORES

EVA COMPOUNDING

STORAGE & DESPATCH FINISHED

GOODS

DESIGN & DEVELOPMENT

PVC INJECTED

FOOTWEAR

MARKETING

RESEARCH METHODOLOGY

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Research is an important pre-requisite for a dynamic organization to be précised.

Research is more systematic activity directed towards the discovery and

development of organized body of knowledge. Some of the characteristics of

research methodology are as follows:

Research is directed towards a solution of problem. It may attempt to answer a

question or determine the relation between two or more variables.

Research involves gathering new data for primary of first hand sources or using

existing data for new purposes.

Research is based on observable experience or empirical evidence.

Research strives to be objective and logical applying every possible test to validate

the proceed are employed the data collection and conclusion research.

STEPS OF METHODOLOGY

COLLECTION OF DATA

ORGANIZATION OF DATA

PRESENTATION OF DATA

ANALYSIS OF DATA

INTERPRETATION OF DATA

RESEARCH

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Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, making deductions

and reaching conclusions and at last carefully testing the conclusions to determine

whether they fit the formulating hypothesis.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the problems. It is a way of

studying how research is done scientifically. It consists of various steps that are

generally adopted by the researcher in studying his research problems along with

the logic behind them.

For solving the problem related to “performance management” of the DAWAR

company research is done by using the “360 degree performance appraisal

method” which is helpful in analysis of , performance management simplification

of accounting data, helpful in comparative study, helpful in locating the weak spots

of the business,

helpful in forecasting, estimating the trends of the business, effective control etc.

RESEARCH DESIGN

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Research design is a framework or the blue print for conducting the research

project. Research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research purpose

with economy in procedure. It includes an outline of what the researcher will do

from writing the hypothesis and its operational implications to the final analysis of

data.

“An overall plan of action to be followed during an experiment to be sure that

the objective are met. Often the specific procedures to solve problems are

included in the research design”

The main objective of over study is to analysis the performance management of the

firm through 360 degree performance appraisal method. This technique are helpful

in solving the problems which we faced during the research. Research Design

refers to "framework or plan for a study that guides the collection and analysis of

data". A typical research design of a company basically tries to resolve the

following issues:

Determining Data Collection Design

Determining Data Methods

Determining Data Sources

Determining Primary Data Collection Methods

Developing Questionnaires

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Determining Sampling Plan

TYPES OF RESEARCH DESIGN

Exploratory research design

Descriptive research design

EXPLORATORY RESEARCH DESIGN

It is also termed as Formulative research design. The main purpose of the study is

to formulate a problem for more precise investigation. In it

we understand the performance management through 360 degree performance

appraisal method.

DESCRIPTIVE RESEARCH DESIGN

This research is the most commonly used and the basic reason for carrying out

descriptive research is to identify the cause of something that is happening.

The research design is the master plan specifying the methods and procedures for

collecting & analyzing needed information. The research design in this project is

DISCRIPTIVE. Descriptive research includes surveys & facts findings.

SOURCES OF DATA

It is of two types:-

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Primary Data

Secondary Data

PRIMARY DATA

Primary data are those data, which is originally collected. It is of following type’s

questionnaire, interview, observation etc.

SECONDARY DATA

Secondary data are those data which are collected and which has been passed

through statistical research.In this project, secondary data has been collected from

following sources:-

Annual Reports

Books

Internet

Other material and report published by company

SAMPLE DESIGN

Sample design is a technique or the procedure which the researcher would adopt in

selecting items for the sample. It is not possible for any researcher to include each

and every member of the universe in his research process. So, he selects small

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portion of the universe, which is its true representative. This group known is

sample and this process is called Sampling.

Sample designs are basically of two types:

Non – Probability Sampling

Probability Sampling

NON- PROBABILITY SAMPLING

In this items for the sample are selected deliberately by the researcher, by using his

own judgment. In this every item of universe does not have equal chances of

inclusion in the sample.

It can be of following type:

Convenience Sampling

Judgment Sampling

Quota Sampling

PROBABILITY SAMPLING

It is also known as Random Sampling or Chance Sampling. In this, each

population element has equal chance of selection.

It can be of following type:

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Random Sampling

Stratified Sampling

Cluster Sampling

Multi stage Sampling

In this project, non - probability sampling has been used because sample is selected

by own view and every item of universe has not equal chances of being selected.

Under non- probability sampling, convenient sampling has been used because

sample has been selected according to own convenience.

Sampling size: This refers to the number of person institution to be surveyed.

Total sampling size of this study is 50

Sampling procedure: This refers to the procedure by which respondents should be

chosen. This study is conducted on the basis of convenience sampling and

judgment sampling.

DATA COLLECTION METHODS:

1. Primary data is gathered through a survey conducted on employees.

2. Secondary data is collected from internet, files, record books, company manuals

and books

Research instrument used in this project report for collecting primary data is

Questionnaire

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INSTRUMENT USED: Questionnaire

SAMPLING TECHNIQUE: Random sampling

DATA ANALYSIS:

The data collected through survey was analyzed with the help of simple

percentages, tabular and graphic methods which included pie charts, bar graphs are

used to analyze the data.

LIMITATIONS

1) Analysis was based on sample results

2) Some employees were not very open, forthcoming in writing their responses

3) It was difficult to get questionnaire filled by employees due to their busy

schedule

4) Some employees had biased response style in dealing with sensitive issues

Performance

Employee Performance Management is a process for establishing a shared

workforce understanding about what is to be achieved at an organisation level. It is

about aligning the organisational objectives with the employees’ agreed measures,

skills, competency requirements, development plans and the delivery of results.

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http://www.peoplestreme.com/../objectives.html

http://www.peoplestreme.com/../workforce-planning-1.shtml

The emphasis is on improvement, learning and development in order to achieve the

overall business strategy and to create a high performance workforce.

Performance management includes activities to ensure that goals are consistently

being met in an effective and efficient manner. Performance management can

focus on the performance of an organization, a department, employee, or even the

processes to build a product or service, as well as many other areas.

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OBJECTIVES OF THE STUDY

The main objective of this study was to know performance management system in

the organization.The sub objectives that we wanted to achieve are as follows:-

To know whether the employees are aware of the appraisal system followed

by the company.

To ascertain that what the factors are those are considered while appraising

the performance of employees.

To know that whether there is any biasness in the performance appraisal

system of the organization.

To find out the satisfaction level of employees regarding companies

appraisal system.

To analyze the various factors that can motivate employees in their work.

To invite suggestions for the welfare of the employees of the company.

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PERFORMANCE MANAGEMENT

Employee Performance Management is a process for establishing a shared

workforce understanding about what is to be achieved at an organization level. It is

about aligning the organizational objectives with the employees’ agreed measures,

skills, competency requirements, development plans and the delivery of results.

The emphasis is on improvement, learning and development in order to achieve the

overall business strategy and to create a high performance workforce.

Performance management includes activities to ensure that goals are consistently

being met in an effective and efficient manner. Performance management can

focus on the performance of an organization, a department, employee, or even the

processes to build a product or service, as well as many other areas.

The PM approach is used most often in the workplace but applies wherever people

interact—schools, churches, community meetings, sports teams, health setting,

governmental agencies, and even political settings. PM principles are needed

wherever in the world people interact with their environments to produce desired

effects. Cultures are different but the laws of behavior are the same worldwide.

Armstrong and baron (1998) defined it as “A strategic and integrated approach to

increasing the effectiveness of organizations by improving the performance of the

people who work in them and by developing the capabilities of teams and

individual contributors”

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http://www.peoplestreme.com/../objectives.html



FEATURES:-

1) the fastest known method for career promotion;

2) the quickest way for career advancement;

3) the surest way for career progress;

4) the best ingredient in career path planning;

5) the only true and lasting virtue for career success;

6) the most neglected part in teachings about management and leadership

principles;

7) the most complete and sophisticated application of performance management;

8) the best integration of human behavior research findings, with the latest

management, leadership and organizational development principles;

9) the best automated method for organizational change, development, growth,

performance and profit;

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OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior-

subordinates and management-employees.

To diagnose the strengths and weakness of individuals so as to identify the

training and development of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the

organization.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other resource functions of the organization

such as recruitment, selection, training and development.

To reduce the grievances of the employees.

45

HISTORY OF PERFORMANCE MANAGEMENT

Performance Management began around 60 years ago as a source of income

justification and was used to determine an employees wage based on performance.

Organisations used Performance Management to drive behaviours from the

employees to get specific outcomes. In practice this worked well for certain

employees who were solely driven by financial rewards. However, where

employees were driven by learning and development of their skills, it failed

miserably. The gap between justification of pay and the development of skills and

knowledge became a huge problem in the use of Performance Management. This

became evident in the late 1980s; the realisation that a more comprehensive

approach to manage and reward performance was needed. This approach of

managing performance was developed in the United Kingdom and the United

States much earlier than it was developed in Australia.

In recent decades, however, the process of managing people has become more

formalised and specialised. Many of the old performance appraisal methods have

been absorbed into the concept of Performance Management, which aims to be a

more extensive and comprehensive process of management. Some of the

developments that have shaped Performance Management in recent years are the

differentiation of employees or talent management, management by objectives and

46

http://www.peoplestreme.com/../key-performance-indicators.shtml

http://www.peoplestreme.com/../appraisal-1.shtml


http://www.peoplestreme.com/../p-cmgr-1.shtml

constant monitoring and review. Its development was accelerated by the following

factors:

1) The introduction of human resource management as a strategic driver and

integrated approach to the management and development of employees.

2) The understanding that the process of Performance Management is

something that’s completed by line managers throughout the year – it is not a

once off annual event coordinated by the personnel department.

47


PROCESS OF PERFORMANCE MANAGEMENT IN

ORGANISATION

48

ESTABLISH PERFORMANCE

STANDARDS

COMMUNICATING THE STANDARDS

MEASURING THE ACTUAL

PERFORMANCE

COMPARING THE ACTUAL WITH

DESIRED

DISCUSS RESULTS

DECISION MAKING

1.) ESTABLISH PERFORMANCE STANDARDS

The first step in the process is the setting up of the standards which will be used to

as the base to compare the actual performance of the employees. This step requires

setting the criteria to judge the performance of the employees as successful or

unsuccessful and the degrees of their contribution to the organizational goals and

objectives. The standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee cannot be measured,

great care should be taken to describe the standards. KPAs are set for each

employee and they are prioritized. 70% weightage is given to technical skills and

30% weightage is given to behavioural skills. Behavioural skills expected from

employees are same for all employees. Assessment is done by the head of the

department.

2.) COMMUNICATING THE STANDARDS

Once set, it’s the responsibility of the management to communicate the standards

to all the employees of the organization. The employees are informed and the

standards are clearly explained to them. This will help them to understand their

roles and to know what exactly is expected from them. The standards are also

communicated to the appraisers or the evaluators and if required. The standards

49

can also be modified at this stage itself according to the relevant feedback from the

employees or the evaluator

50

3.) MEASURE THE ACTUAL PERFORMANCE

The most difficult of the performance appraisal process is measuring the actual

performance of the employees that is work done by the employees during the

specified period of time. Is is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not

affect the outcome of the process and providing assistance rather than interfering in

an employees work.

4.) COMPARING THE ACTUAL WITH DESIRED

PERFORMANCE

The actual performance is compared with the desired or the standard performance.

The comparison tells the deviations in the performance of the employees from the

standards set. The result can show the actual performance being more than the

desired performance or, the actual performance being less than the desired

performance depicting a negative deviation in the organizational performance. It

includes recalling, evaluation and analysis of data related to the employee’s

performance.

52

5.) DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on

one-to-one basis. The focus of this discussion is on communication and listening.

The results, the problems and the possible solutions are discussed with the aim of

problem solving

and reaching consensus. The feedback should be given with a positive attitude as

this can have an effect on the employees’ future performance. The purpose of the

meeting should be to solve the problems faced and motivate the employees to

perform better

6.) DECISION MAKING

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or

the related HR decisions like rewards, promotions, demotions, transfers etc. If the

employee’s performance is below desired level then proper training is provided to

them.

Methods of Performance appraisal

The foregoing list of major program pitfalls represents a formidable challenge,

even considering the available battery of appraisal techniques. But attempting to

53

avoid these pitfalls by doing away with appraisals themselves is like trying to solve

the problems of life by committing suicide. The more logical task is to identify

those appraisal practices that are (a) most likely to achieve a particular objective

and (b) least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated

at the outset of the article, I shall briefly review each, taking them more or less in

an order of increasing complexity.

The best-known techniques will be treated most briefly.

Broadly, all the methods of performance appraisal can be classified into

following two categories:

Traditional Methods

Modern Methods

54

Method of performance appraisal

Method of performance appraisal

Traditional Methods Modern Methods

Essay Method

Graphic Rating Scale

Field Review Method

Forced Choice Method

Ranking Method

Checklist Method

Management by Objectives

Assessment Centre Method

360 Degree Appraisal

TRADITIONAL METHODS

Essay appraisal

In its simplest form, this technique asks the rater to write a paragraph or more

covering an individual's strengths, weaknesses, potential, and so on. In most

selection situations, particularly those involving professional, sales, or managerial

positions, essay appraisals from former employers, teachers, or associates carry

significant weight.

55

Graphic rating scale

This technique may not yield the depth of an essay appraisal, but it is more

consistent and reliable. Typically, a graphic scale assesses a person on the quality

and quantity of his work (is he outstanding, above average, average, or

unsatisfactory?) and on a variety of other factors that vary with the job but usually

include personal traits like reliability and cooperation. It may also include specific

performance items like oral and written communication.

Field review

The field review is one of several techniques for doing this. A member of the

personnel or central administrative staff meets with small groups of raters from

each supervisory unit and goes over each employee's rating with them to (a)

identify areas of inter-rater disagreement, (b) help the group arrive at a consensus,

and (c) determine that each rater conceives the standards similarly. .

Forced-choice rating

Like the field review, this technique was developed to reduce bias and establish

objective standards of comparison between individuals, but it does not involve the

intervention of a third party.

56

Ranking methods

For comparative purposes, particularly when it is necessary to compare people who

work for different supervisors, individual statements, ratings, or appraisal forms

are not particularly useful. Instead, it is necessary to recognize that comparisons

involve an overall subjective judgment to which a host of additional facts and

impressions must somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison

ranking.

1. “Alternation ranking”:Ranking of employees from best to worst on a trait

or traits is another method for evaluating employees. Since it is usually

easier to distinguish between the worst and the best employees than to rank

them, an alternation ranking method is most popular. Here subordinates to

be rated are listed and the names of those not well enough to rank are

crossed. Then on a form as shown below, the employee who is highest on

the characteristic being measured and the one who is the lowest are

indicated. Then chose the next highest and the next lowest, alternating

between highest and lowest until all the employees to be rated have been

ranked.

57

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be

more so. But with large numbers of employees it becomes extremely time

consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e.,

when two or more people are asked to make independent rankings of the same

work group and their lists are averaged), are among the best available for

generating valid order-of-merit rankings for salary administration purposes.

MODERN METHODS

Management by objectives

To avoid, or to deal with, the feeling that they are being judged by unfairly high

standards, employees in some organizations are being asked to set - or help set -

their own performance goals. Within the past five or six years, MBO has become

something of a fad and is so familiar to most managers that I will not dwell on it

here.

Assessment centers

So far, we have been talking about assessing past performance. What about the

assessment of future performance or potential? In any placement decision and even

58

more so in promotion decisions, some prediction of future performance is

necessary. How can this kind of prediction be made most validly and most fairly?

360 Degree Feedback

Many firms have expanded the idea of upward feedback into what the call 360-

degree feedback. The feedback is generally used for training and development,

rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate

parties – peers, supervisors, subordinates and customers, for instance – complete

survey, questionnaires on an individual. 360 degree feedback is also known as the

multi-rater feedback, whereby ratings are not given just by the next manager up in

the organizational hierarchy, but also by peers and subordinates. Appropriates

59

customer ratings are also included, along with the element of self appraisal. Once

gathered in, the assessment from the various quarters are compared with one

another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like

the critical incident method, it focuses on actual behavior and actual results, which

can be discussed objectively and constructively, with little or no need for a

supervisor to "play God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If

the employee meets or exceeds the set objectives, then he or she has demonstrated

an acceptable level of job performance. Employees are judged according to real

outcomes, and not on their potential for success, or on someone's subjective

opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed

easily. The MBO method recognizes the fact that it is difficult to neatly dissect all

the complex and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into

so many constituent parts, but to put all the parts together and the performance may

be directly observed and measured.

60

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be

reasonably accomplished. Supervisors and subordinates must have very good

"reality checking" skills to use MBO appraisal methods. They will need these skills

during the initial stage of objective setting, and for the purposes of self-auditing

and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid

objectives may be distorted to disguise or justify failures in performance.

61

BENEFITS OF PERFORMANCE APPRAISALS

Measures an employee’s performance.

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback.

Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and analysis.

Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and

misunderstandings.

Plays an important tool for communicating the organization’s philosophies,

values, aims, strategies, priorities, etc among its employees.

Helps in counseling and feedback.

62

RATING ERRORS IN PERFORMANCE

APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and biases

referred to as 'rating errors'. These errors can seriously affect assessment results.

Some of the most common rating errors are: -

Leniency or severity:

Leniency or severity on the part of the rater makes the assessment subjective.

Subjective assessment defeats the very purpose of performance appraisal. Ratings

are lenient for the following reasons:

1. The rater may feel that anyone under his or her jurisdiction who is rated

unfavorably will reflect poorly on his or her own worthiness.

2. He/She may feel that a derogatory rating will be revealed to the rate to

detriment the relations between the rater and the ratee.

3. He/She may rate leniently in order to win promotions for the subordinates and

therefore, indirectly increase his/her hold over him.

Central tendency: -

This occurs when employees are incorrectly rated near the average or middle of the

scale. The attitude of the rater is to play safe. This safe playing attitude stems from

certain doubts and anxieties, which the raters have been assessing the rates.

63

Halo error:-

A halo error takes place when one aspect of an individual's performance influences

the evaluation of the entire performance of the individual. The halo error occurs

when an employee who works late constantly might be rated high on productivity

and quality of output as well ax on motivation. Similarly, an attractive or popular

personality might be given a high overall rating. Rating employees separately on

each of the performance measures and encouraging raters to guard against the halo

effect are the two ways to reduce the halo effect.

Rater effect:

This includes favoritism, stereotyping, and hostility. Extensively high or low score

are given only to certain individuals or groups based on the rater's attitude towards

them and not on actual outcomes or behaviors; sex, age, race and friendship biases

are examples of this type of error.

Primacy and Regency effects: -

The rater's rating is heavily influenced either by behavior exhibited by the ratee

during his early stage of the review period (primacy) or by the outcomes, or

behavior exhibited by the ratee near the end of the review period (regency). For

example, if a salesperson captures an important contract/sale just before the

completion of the appraisal, the timing of the incident may inflate his or her

standing, even though the overall performance of the sales person may not have

64

been encouraging. One way of guarding against such an error is to ask the rater to

consider the composite performance of the rate and not to be influenced by one

incident or an achievement.

Performance dimension order: -

Two or more dimensions on a performance instrument follow each other and both

describe or rotate to a similar quality. The rater rates the first dimensions

accurately and then rates the second dimension to the first because of the

proximity. If the dimensions had been arranged in a significantly different order,

the ratings might have been different.

Spillover effect: -

This refers lo allowing past performance appraisal rating lo unjustifiably influence

current ratings. Past ratings, good or bad, result in similar rating for current period

although the demonstrated behavior docs not deserve the rating, good or bad.

65

Q-1) Do you know the present Performance management system used in your

organization?

100%

0%

yes

no

Interpretation

We can say that 95% employees know the performance management system used

in the organization 5% are unaware of that.

Response yes No

Respondents 50 0

67

Q-2) Are you satisfied with the present PMS used in your organization?

Response yes No Some how Can’t say

Respondents 40 0 10 0

Interpretation

We can say that 80% employees are satisfied with the performance management

system used in the organization and no one is unsatisfied. 10% employees are

some how satisfied and 10% are not able to say anything.

68

80%

10%10% 0%

yes

no

somehow

can't say

Q-3) The current process is too time consuming.

Response Strongly

agree

agree neutral disagree Strongly

disagree

Respondents 0 28 11 11 0

0%

56%22%

22%

0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation

We can say that 56% employees are agree, 22% are neutral and 22% are disagree

with the above statement.

69

Q-4) Do you think the assessment given by your HOD is on unbiased basis.

Response Strongly

agree

agree neutral disagree Strongly

disagree


20%

60%

10%6% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation

We can say that 20% employees are strongly agree, 60% are agree, 10% are

neutral, 6% are disagree and 4% are strongly disagree with the statement.

70

Q-5) Team objectives don’t exist.

Response Strongly

agree

Agree neutral disagree Strongly

disagree


20%

20%

10%30%

20%s.agree

agree

neutral

disagree

s.disagree

Interpretation


neutral, 30% are disagree and 20% are strongly disagree with the statement.

71

Q-6) The focus of performance management is developmental.

Response Strongly

agree


disagree


20%

50%

16%

10% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation


neutral, 10%are disagree and 4% are strongly disagree with the statement.

72

Q-7) Regular feedback of the work is given.

Response Strongly

agree


disagree


30%

54%

6%6% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation

We can say that 30% employees are strongly agree, 54% are agree, 6% are neutral,

6%are disagree and 4% are strongly disagree with the statement.

73

Q-8) PMS of your company motivates you for work.

Response Strongly

agree

Agree Neutral Disagree Strongly

disagree


18%

62%

16%

4% 0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



74

Q-9) PMS is effective in your organization.

Response Strongly

agree


disagree


26%

54%

12%4% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



75

Q-10) Participation in the performance management process is up to the

required level.

Response Strongly

agree


disagree


16%

50%

20%

10% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



76

Q-11) Personal development plans exist.

Response Strongly

agree

Agree Neutral disagree Strongly

disagree


12%

60%

10%

10%8%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



77

Q-12) Feedback on good or poor progress is saved up to the end of the year.

Response Strongly

agree


disagree


18%

74%

4%

4% 0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



78

Q-13) Is unsatisfactory PMS directly relates to the employee turnover.

Response Strongly

agree


disagree


18%

70%

6% 4% 2%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



79

Q-14) Self rating is very useful for PMS.

Response Strongly

agree


disagree


16%

64%

12%8% 0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



80

Q-15) what factors from the following are considered in your organization

while appraising the performance.

Response Technicality

& behavior

Team

work

Productivity Waste

management

other


72%

8%

16%

4%

0% tech.&behavior

team work

productivity

waste mgmt

other

Interpretation

We can say that 72% employees says that technicality & behavior are considered

while appraising the performance, 8% think team work, 16% says productivity, 4%

says waste management and 0% says other.

81

Q-16) How often the appraisal should be done?

Response Once during the

service period

Continuously Never Can’t say


18%

82%

0%

0%

once

continuously

never

can't say

Interpretation

We can say that 18% employees think that appraisal should be done only once,

82% think that it should be done continuously.

82

Q-17) If given a chance or opportunity, would you like that the current

procedure should be reviewed?

Response Yes no Can’t say

Respondents 30 20 0

60%

40%

0%

yes

no

can't say

Interpretation

60% employees want that the current procedure should be reviewed and 40% says

that it should not be reviewed.

83

Q-18) Based on your qualification, current role, responsibility & achievement,

how do you rank your own performance?

Response Excellent Very good Average Good


8%16%

36%

40% excellent

very good

average

good

Interpretation

We can say that 8% employees rank their performance as excellent, 16% as very

good, 36% as average and 40% as good.

84

Q-19) What according to you is the best strategy for increasing the employee

performance?

Response Increase

benefits

Negative

reinforcement

Freedom

for work

Positive

reinforcement

Any

other


24%

0%

12%64%

0%inc.benefits

negative rein.

freedom for work

posiive rein.

other

Interpretation

We can say that 24 % employees think that increase in benefits can increase the

employee’s performance, 0% says negative reinforcement, 12% says freedom for

work, 64% say positive reinforcement.

85

RESULT AND FINDINGS

100% employees know the performance management system used in the

organization.

More than 50% employees agreed that the present system is time consuming.

60% of the employees agreed that assessment given by their HOD is on

unbiassed basis.

30% of the employees are agreed that team objectives do exist.

50% of the employees agreed that the focus of PMS is developmental.

More than 50% of the employees are agreed that PMS in their organization is

effective.

Half of the employees agreed that participation in the PMS is upto the required

level.

60% of the employees are agreed that personal development plans exist.

70% of the employees are agreed that unsatisfactory PMS directly relates to the

employee turnover.

64% of the employees are agreed that self rating is useful in PMS.

87

CONCLUSION

Employee satisfaction is vital factor for the performance of organization because it

provides the basis for the foundation of the organization. On the basis of study

which I gone through, I came to know that employee satisfaction level is high but

there are chances of improvisation.

To increase the level of satisfaction, some more steps can be taken by Dawar

Puram such as self rating by the employees and positive reinforcement system for

increasing the performance of the employees. The primary objective was to study

satisfaction with regard to performance management system of the organization

and from study, I came to know that majority of the employees are satisfied with

policies of the organization. To increase the percentage of satisfied employees,

organization should work for them.

89

RECOMMENDATIONS & SUGGESTIONS

Appraisal of the performance should be done continuously.

Positive reinforcement should be used for increasing the employee

performance.

Organization need to ensure role clarity among the employees.

Appraiser should have proper knowledge regarding the different rating

scales in the appraisal report.

It is suggested that involvement of appraisal in performance management

activities should be increased.

Employees should be given chance to give suggestions regarding

performance management system.

91

BIBLIOGRAPHY

WEBSITES

http://www.DAWAR shoes.com accessed on 15th July 2010

http://www.performancemanagementguide.com accessed on 17th July 2010

http://www.humanresources.about.com accessed on 16th July 2010

http://www.allbusiness.com accessed on 20th July 2010

93

http://www.allbusiness.com/

http://www.humanresources.about.com/

http://www.performancemanagementguide.com/

http://www.libertyshoes.com/

QUESTIONNAIRE

EMPLOYEE INFORMATION

NAME: DESIGNATION:

GENDER: DEPARTMENT:

AGE: SERVICE PERIOD:

PLEASE TICK MARK THE PROPER ANSWER

Q-1) Do you know the present Performance management system used in your

organization?

[1] Yes [2] No

Q-2) Are you satisfied with the present PMS used in your organization?

[1] yes [2] no [3] some how [4] can’t say

Q-3) the current process is too time consuming.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-4) Do you think the assessment given by your HOD is on unbiased basis.

95


Q-5) Team objectives don’t exist.


Q-6) The focus of performance management is developmental.


Q-7) Regular feedback of the work is given.


Q-8) PMS of your company motivates you for work.


Q-9) PMS is effective in your organization.


Q-10) Participation in the performance management process is up to the required

level.


96

Q-11) Personal development plans exist.


Q-12) Feedback on good or poor progress is saved up to the end of the year.


Q-13) Is unsatisfactory PMS directly relates to the employee turnover


Q-14) Self rating is very useful for PMS.


Q-15) What factors from the following are considered in your organization while

appraising the performance.

[1] Technicality & behavior

[2] team work

[3] productivity

[4] waste management

[5] other

97

Q-16) How often the appraisal should be done?

[1]once during the service period [2] continuously

[3] never [4] can’t say

Q-17) If given a chance or opportunity, would you like that the current procedure

should be reviewed?

[1] yes [2] no [3] can’t say

Q-18) Based on your qualification, current role, responsibility & achievement, how

do you rank your own performance?

[1] excellent [2] very good [3] average [4] good

Q-19) What according to you is the best strategy for increasing the employee

performance?

[1] Increase benefits [2] negative reinforcement [3] freedom for work

[4] positive reinforcement [5] any other

SUGGESTIONS AND VIEWS……………………………………………………

98

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