An In-Depth Study of Performance Management System: Jyoti Sharma
An In-Depth Study of Performance Management System: Jyoti Sharma
An In-Depth Study of Performance Management System: Jyoti Sharma
MANAGEMENT
SYSTEM
PROJECT REPORT ON
Towards the partial fulfillment of the Training in(HR) at Minda Corporation Ltd.
SUBMITTED BY
JYOTI SHARMA
CANDIDATE DECLARATION
I also declare that this Project is a result of my effort and no part of this research
has been published earlier or been submitted as a project by me for any degree or
diploma for any institute or Company.
JYOTI SHARMA
CERTIFICATE
There are a number of important people I want to thank, without whose support,
guidance, encouragement, and help this work would not have been possible. I
would also like to give my greatest thanks to God who deserves the ultimate praise
and credit for all good things in my life.
I am grateful to Sir for his generosity, mentoring, support, and sense of humor,
which have always served to keep my spirits light and my attitude positive.
prospect. Training makes the concept clear and help in facing the actual
situations.
The process of PMS from Setting Goals till Learning and Development
has been done in my project report. From the study and work of
for Human Resource and also for the development of the employees.
This Project has really exposed me to a far new world and I sincerely
CONTENTS
1) CANDIDATE DECLARATION
2) CERTIFICATE
3) ACKNOWLEDGEMENT
4) ABSTRACT
5) CHAPTER 1: INTRODUCTION
10) CONCLUSION
11) BIBLOGRAPHY
INTRODUCTION
personnel, and how motivated and satisfied they are. This study throws
Efficient.
APPRAISAL- the word means “to fix a price or value for something”.
Today leading organizations are using every available tool with greater
been viewed as an effective highly political and time consuming task yet
there is hardly a single organization in the world that does not want a
manager.
REVIEW OF EXISTING LITERATURE
(Brumbrach, 1988).
(Dr. R K Sahu,2007)
K Sahu, 2007).
OBJECTIVE OF STUDY
Research Design
questionnaire.
Sample Size
magazines and journals, and data from the Internet will also be taken.
Analysis Pattern
After the collection of data from the primary and secondary sources that
interpretation.
KEY FACTORS AFFECTING PERFORMANCE MANAGEMENT
upon the ability of an employee. The more able the employee is, the
knowledge, which are used in the performance, are termed as the ability
of an employee. It is always present and will not vary widely over short
periods of time. Apart from ability many people who are not motivated
level of
Maslow and basic needs (1940s & 50s) - broader view extending beyond
the work place. Proposed a hierarchy of needs - the lowest level needs
are dominant till satisfied and performance is affected if the needs
according to these levels are not taken care of which can lead to the
dissatisfaction of an employee.
satisfaction.
our study and has hence been reproduced. While managing careers we
commitment are made only when the intellect merges conclusively with
happen unless
annual salary reviews. Within a short period of time, the argument began
over whether the two should be linked and, if so, to what extent. One
potential, and develop strong bonds between teams and for enhancing
difficult. They may view themselves and their worth higher than the
health and how much it can prudently afford to pay, as well as the
employee's skill level, responsibilities, and longevity– not only with the
company, but in their current position. Some companies have a salary
range for various positions that can take experience, seniority, and skill
levels into account. But increases are frequently based more on the
tool for every organization and there are several benefits that a PMS
The biggest success factor in all our initiatives has been the
the organization.
PMS – METHODOLOGY
PMS process consists of four steps:
1. Goal setting
1. SETTING GOAL:
employees. Their action and attitude are key drivers for the success of
any performance management system. The manager’s role in PMS
described below:
below:
· Ask question so as to understand clearly what is expected.
FOR EXAMPLE:
· Communication skills.
· Creativity and innovation
· Leadership skills.
· Personal conduct
· Attitude to work
· Dependability
· Loyalty
WEIGHTAGES:
comes to 100%.
· INDIVIDUAL PERFORMANCE:
PERFORMANCE ASSESSMENT:
The performance of an employee is measured through series of steps. There are
Various step involved in it. The first being the SELF- ASSESSMENT FORM, the
second being the KRA REVIEW FORM, and the final being the COMPETANCY
REVIEW FORM. At different levels there is different type of form
EXPLANATION:
There are three parts for assessing the employee’s performance. PART A- self-
appraisal, PART
B- KRA evaluation sheet, and PART C- Competency review form. The detail of
which is
described below:
Towards the end of the form total score is given there which is average of the score
of parameter, and accordingly ranking is given.
In the excel sheet than the following data are entered i.e. the KRA rating and
the performance evaluation sheet and accordingly the software derived the
desired ranking and accordingly the appraisal and salary correction is done.
RATINGS:
1. BELOW AVERAGE:
Does not fully meet the requirements.
Excessive supervision required.
2. AVERAGE:
Adequate performance, meets requirement.
Need push to perform better.
3. ABOVE AVERAGE:
Consistently higher performance than expected.
Challenging assignments are normally handled.
4. OUTSTANDING:
Exceptional performance which leaves nothing to be desired.
Challenging assignment consistently well handled.
ANNUAL INCREMENT:
P ERIODICITY & CYCLE OF INCREMENT
o Increment cycle would be on financial year basis, i.e., April to March.
o Increments and promotions would be effective from 01st of April.
E LIGIBILITY
o Increment would be given to all confirmed employees as of 31st March.
o Increments would also be given to employees whose last increment was effective
from 01st October 2006 or before that on pro-rata basis.
QUANTUM
OF INCREMENT:
Excellent 20%
Very Good 15%
Good 10%
Average 6%
Below Average No Increment
o Employees across the level and function will get the same
percentage increase if their performance rating is same.
SALARY
CORRECTION
o Over and above performance based increment, salary correction would also be
considered depending upon the role and criticality of the position and to bring
internal equity.
However, such cases has to be strictly restricted
STRICTNESS ERROR:
It occurs when the appraiser artificially assigns all or certain group of employees’
low performance ratings and consequently all or certain scores cluster at the
bottom of the rating scales.
CENTRAL TENDENCY:
It is the tendency of the appraiser to avoid using the extremes of rating scales and
to cluster the ratings around the mid point.
RECENCY EFFECT:
Some times the raters assign ratings on the basis of recent behavior they have seen
in their appraises forgetting about past behavior over a period. This is called
recency effect. After performance evaluation system we find source for the type of
training to be given to employees. According to the review of performance
assessment we recognize the type of training the employee need for his
development. The departmental head gives the feedback regarding the performance
of the employees and accordingly the HR department reviews the assessment and
provides the type of training the employee required. Sometime the employee
himself mentions the type of training he or she needs. Training the important part
for development of any employee as it help to increase the knowledge of the
employee in the area were they are lacking.
QUETIONNAIRE ANALYSIS
Ques1. PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE/ DISAGREE
WITH THE FOLLOWING STATEMENTS:
A. ANNUAL APPRAISAL
B. BI-ANNUAL APPRAISAL
C) SELF APPRAISAL
D) SUBORDINATE FEEDBACK
E) COMPETENCY ASSESSMENT
F) OBJECTIVE SETTING AND REVIEW
I) CAREER MANAGEMENT
J) PERSONAL DEVELOPMENT PLANS
According to employees:
· They think that annual appraisals are more effective than bi-annual
appraisals.
Performance appraisal
Assessment of training and developmental needs
Personal development plans
Pay based on performance ratings.
· Around 90% of the employees surveyed carried out the requirements related to
performance management and as a result received a pay rise,
agreed improvements to be done.
· Employees disagree that the most important thing about their job is the pay.
2. The time for the project is not sufficient to undergo all the procedures.
following steps:
a) Performance planning
c) Performance rating
d) Performance rewarding
e) Performance developing
A) PERFORMANCE PLANNING
Objective:
C) PERFORMANCE RATING
Objective:
decisions.
II. Once the ratings are available, it is easy to identify individuals who
of the division.
Objective:
II. To ensure that annual increments are strictly on the basis of merit i.e.
SOURSES are:
Websites
www.google.com
www.citehr.com
www.ask.com
www.articles911.com
Magazines
Human capital
icfai journals
Books: