PERFORMANCE MANAGEMENT

Introduction:

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.

Performance management is the process of creating a work environment or setting in

which people are enabled to perform to the best of their abilities. Performance management is a
whole work system that begins when a job is defined as needed. It ends when an employee
leaves the organization.

A performance management system includes the following actions.

1. Develop clear job descriptions.

2. Select appropriate people with an appropriate selection process.

3. Negotiate requirements and accomplishment-based performance standards, outcomes,

and measures.

4. Provide effective orientation, education, and training.

5. Provide on-going coaching and feedback.

6. Conduct quarterly performance development discussions.

7. Design effective compensation and recognition systems that reward people for their
contributions.

8. Provide promotional/career development opportunities for staff & assist with exit
interviews to understand WHY valued employees leave the organization
Definition

Performance management is an ongoing, continuous process of communicating and

clarifying job responsibilities, priorities and performance expectations in order to ensure mutual
understanding between supervisor and employee. It is a philosophy which values and encourages
employee development through a style of management which provides frequent feedback and
fosters teamwork. It emphasizes communication and focuses on adding value to the organization
by promoting improved job performance and encouraging skill development. Performance
Management involves clarifying the job duties, defining performance standards, and
documenting, evaluating and discussing performance with each employee.

Determine Major Job duties:

The first step in the process is to determine the major duties of the job. Major job duties
are those job specific duties that are essential to a specified job. These are the duties that the job
was really established to perform, and if they were not performed would severely impact the
nature of the job. They are distinct from marginal functions, which are peripheral to the core
duties.
Resources which are help to identify major job duties:

• The Position Description on file in each unit

• Job Specifications on the University Human Resources or specific campus web site
• A recent job posting for that position.

Define performance standards for each duty:

While the list of Major Job Duties tells the employee what is to be done, performance
standards provide the employee with specific performance expectations for each major duty.
They are the observable behaviors and actions which explain how the job is to be done, plus the
results that are expected for satisfactory job performance. They tell the employee what a good
job looks like. The purpose of performance standards is to communicate expectations. Some
supervisors prefer to make them as specific as possible, and some prefer to use them as talking
points with the specificity defined in the discussion. Keep in mind that good performance
typically involves more than technical expertise. You also expect certain behaviors (e.g.
friendliness, helpfulness, courteousness, punctuality, etc.) It is often these behaviors that
determine whether performance is acceptable. Performance standards are:

• Based on the position, not the individual

• Observable, specific indicators of success
• Meaningful, reasonable and attainable
• Describe "fully satisfactory" performance once trained
• Expressed in terms of Quantity, Quality, Timeliness, Cost, Safety, or Outcomes

Document Job performance:

It is important to document performance over the entire year. Good documentation

procedures help to reduce the possibility of many rating errors (contained in next section,
Evaluate Job Performance). Be sure to make notes of good as well as unsatisfactory
performance. Good documentation is important in justifying evaluations and resultant
administrative decisions. Effective documentation is:
 • Accurate
• Specific
• Consistent
• A record of a discussion – never done in isolation
• Factual, not inferential

Evaluate Job performance:

In evaluating performance, always compare actual performance to the performance

standards as determined at the beginning of the evaluation period.

Potential constraints on performance:

Before discussing performance, always assess the potential constraints on performance.

Some things to look for:

• Lack of proper equipment

• Excessive work load
• Inadequate working conditions
• Inadequate clerical support
• Absenteeism of key personnel
• Slowness of action from internal or external sources
• Inadequate performance of co-workers on whom individual's work depends
• Inadequate performance of subordinates or managers
• Unclear objectives or performance standards
• Policy problems
• Inadequate communication within the organization
• Pressure from co-workers to limit performance
• Lack of authority to get things done
Hold performance discussions:

The Performance Review Discussion is one of the most important things that you as a
supervisor will do. This is a time to continue that all important feedback about duties,
expectations and performance. This is a time to have a more formalized discussion about the
employee's performance and it should reflect the day to day coaching that has transpired
throughout the year. It should be undertaken with great care and preparation, and the way you
handle it can have significant impact on the morale and future performance of your staff
members. Formal performance discussions should be held at least once a year. Coaching should
occur on a frequent basis. Informal performance discussions are also valuable and should be held
at intervals throughout the year.

Prepare for the discussion:

1. Establish date, time and suitable private location.

2. Notify employee, well in advance, of the date, time, location and what to prepare.
3. Provide the employee with questions to help prepare for the discussion.

Objectives

The objectives of Performance Management are to:

1. Increase two-way communication between supervisors and employees

2. Clarify mission, goals, responsibilities, priorities and expectations
3. Identify and resolve performance problems
4. Recognize quality performance
5. Provide a basis for administrative decisions such as promotions, succession and strategic
planning, and pay for performance

Principles of developing a performance management plan

Development of a performance management plan should be consistent with the following

principles:
 1. Performance management is considered a process, not an event. It follows good
management practice in which continual coaching, feedback and communication are
integral to success.
2. The Performance Management Plan is primarily a communication tool to ensure mutual
understanding of work responsibilities, priorities and performance expectations.
3. Elements for discussion and evaluation should be job specific – not generalized
personality traits. The major duties and responsibilities of the specific job should be
defined and communicated as the first step in the process.
4. Performance standards for each major duty/ responsibility should be defined and
communicated.
5. Employee involvement is encouraged in identifying major duties and defining
performance standards.
6. Professional development should be an important component of the plan.
7. The formal evaluation period should be long enough to allow for full performance and to
establish a history such that evaluations are fair and meaningful. One year is a common
evaluation period.
8. Documentation of performance will occur as often as needed to record the continuum
of dialogue between supervisor and employee.
9. If formal ratings are included, they should reflect the incumbent's actual performance in
relation to the performance standard for that major duty.
10. The supervisor should be evaluated on the successful administration of the plan and
ongoing performance management responsibilities.
11. Training for supervisors and employees is encouraged and will be provided by
University Human Resource Services.

The Performance Management Plan should be consistent with federal and state laws which
address non-discrimination.
Supervisor's responsibilities

The supervisor's responsibilities are to:

1. Communicate and clarify major job duties, priorities and expectations.

2. Establish and communicate performance standards.
3. Monitor employees' performance through observation, discussion, etc.
4. Document good and unacceptable performance.
5. Provide continuous coaching and constructive feedback in a timely manner.
6. Hold performance discussions (at least annually).
7. Correct poor performance and reinforce good performance.
8. Help employees to develop skills and abilities for improved performance.
9. Provide necessary information, resources and opportunity to allow accomplishment of
key results.

Benefits

Managing employee or system performance facilitates the effective delivery of strategic

and operational goals. There is a clear and immediate correlation between using performance
management programs or software and improved business and organizational results.

For employee performance management, using integrated software, rather than a

spreadsheet based recording system, may deliver a significant return on investment through a
range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the
latent potential in every employees work day i.e. the time they spend not actually doing their job.
Benefits may include:

Direct financial gain

• Grow sales
• Reduce costs
• Stop project overruns
• Aligns the organization directly behind the CEO's goals
 • Decreases the time it takes to create strategic or operational changes by communicating
the changes through a new set of goals
Motivated workforce

• Optimizes incentive plans to specific goals for over achievement, not just business as
usual
• Improves employee engagement because everyone understands how they are directly
contributing to the organizations high level goals
• Create transparency in achievement of goals
• High confidence in bonus payment process
• Professional development programs are better aligned directly to achieving business level
goals

Improved management control

• Flexible, responsive to management needs

• Displays data relationships
• Helps audit / comply with legislative requirements
• Simplifies communication of strategic goals scenario planning
• Provides well documented and communicated process documentation

Performance management tools:

The effectiveness of any human resource performance management tools depends most
on its fit within the broader internal organizational system in which it operates. The most
powerful performance management tools are organization-specific and respond to an
organization’s unique business and human capital context. Once the “right” performance
management tools are in place within any organization, they can operate as a cohesive system
and create a significant financial return that competitors will find difficult to replicate.

There are no quick fix methods for enhancing the performance management tools.
However, specific steps can be taken to maximize their effectiveness. The following design
principles might lead to better results while designing performance management tools in an
organization.

1. Firstly it is important to identify the underlying priorities that should guide

decisions about performance. It is important to define the company’s position on
competing priorities, such as recognizing the team vs. the individual; achieving
results vs. demonstrating valued behaviors.
2. The next step is to make sure that the performance management tools we choose
find the right fit with our strategy, structure, and culture. The performance
management process should reinforce the messages that the organization wants to
send about its business, talent, performance, rewards, advancement, and careers.
Perhaps the most important aspect of effective implementation of the performance
management tools would be to clearly communicate what kind of performance culture we are
trying to create.
 REVIEW OF LITERATURE

1. Due to rapidly changing business environment, HRD practitioners are unprecedentedly

demanded to actively participate in improving organizational effectiveness as
performance management specialist. The purpose of this study was to examine and
discuss major elements and issues in performance management system through an
extensive literature review and provide some considerations for designing and
implementing effective performance management system in organizations. (Bae, Eul-
Kyoo 2006)

2. The main benefit of using an IT platform for managing the PMS within an organization
is that the maintenance of the information contained within the systems becomes much
simpler. They also set up some requirements for an IT platform, which is suitable in such
a situation. (Bititci et al. 2000)

3. Performance management is what an organization does to realize its aspirations, to be

more specific, It is an intervention… targeted at individual employees with the aim of
directing and enhancing their performance so as to improve organizational performance.
(Williams 2002)

4. Performance management is the process of improving the quality and quantity of work
done and bringing all activity in line with an organization’s objectives. (Walters 1995)

5. The principle of setting goals for individuals which are linked to organizational goals has
a long history, evolving from merit-rating to management by objectives, through Locke’s
goal setting theory of 1968, and finally to performance management, which became
recognized process in the 1980’s. (Armstrong & Baron 2002)
6. There are different views on what performance is. It can be regarded as simply the record
of outcomes achieved. On the individual basis, it would then be the record of a person’s
accomplishments (Bernadine et al, 1995; Kane, 1996).

7. It has also been suggested that performance is behavior and should be distinguished from
the outcomes because the outcomes can be contaminated by systems prevalent in the
organization (Campbell, 1990).

8. Performance means both Behavior and result Behavior, emanates from the performer
and transforms performance from abstraction to action. Not just the instrument for result,
behavior is also the outcome in its own right and can be judged apart from the result
(Brumbrach, 1988).

9. “Performance Management is a continuous process of identifying, measuring, and

developing the performance of individuals and teams and aligning performance with the
strategic goals of the organization” (Herman Aguinis, 2007)

10. The concept of performance management has been one of the most important and
positive developments in the sphere of Human Resource Management in recent years.
The phrase ‘Performance Management’ was first coined by Beer and Ruth in 1976. It
became recognized, as a distinctive approach in mid 1980s, because of the growing
realization that a more continuous and integrated approach was needed to manage and
reward performance. (Carolyn Stringer, 2007)

11. Performance Management System is the process of performance planning, Performance

Monitoring and Coaching, Measuring Individual Performance linked to organizational
goals, giving him/her feedback, rewarding the individual based on his/her achievements
against set performance goals and required competencies, and working out a plan for
his/her development. (Dr. R K Sahu,2007)
12. Sound PMS of an organization is directly related to the satisfaction of the employees.
Performance appraisal is always result based rather than be effort based. This sometimes
leaves the employees dissatisfied. However in case of good PM, the appraisal process
must be transparent which allows the employees to interact with their managers and
clarify their Queries. (Dr. R K Sahu, 2007)
 Objective of the study

Primary objective:
The objective of performance management is to identify, measure, and develop the
performance of employees while aligning to the organizational goals.

Secondary objective:
The performance management links directly to rewards, recognitions & career
development.
 To analyze the growth of organization & employees based on performance.
 To highlight the rewards & recognitions for high performance level employees.
 To suggest ways of improving performance.

Scope of the study

1) It is anticipated that information received from the study would assist management of the
organization to better understand the critical issues relating to performance management
and empower them to take corrective action where ever necessary.

2) The results of the study may also prove significant in altering management perceptions
on PM which is to be managed as a business imperative.

3) The study will also provide a platform to assist the management of performance in an
industry that is constantly changing and where there is a shortage of applicable guidelines
and literature
Limitations:

1. The conclusion derived does not have universal applicability as this study was
undertaken only within Pepsi co Limited.
2. Sample size is limited.
3. Some other limitations of performance management include risk of internal competition,
favoritism, expensive & time consuming.

Research Methodology

Type of Study:

The study adheres to descriptive research design to gain valuable insight on the
effectiveness of employee engagement activities.

Sampling design:

1. The Sample size taken is 119.

2. The sampling design that was adopted for the study is Stratified random sampling

Method of Data collection:

Primary data:
The primary data is collected by questionnaire method

Secondary data:
The secondary data was collected from the websites, books and the project work done by
research scholars
 About PepsiCo India

PepsiCo entered India in 1989 and has grown to become one of the country’s leading
food and beverage companies. One of the largest multinational investors in the country, PepsiCo
has established a business which aims to serve the long term dynamic needs of consumers in
India.

PepsiCo India and its partners have invested more than U.S.$1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to 150,000
people including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that
deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio
includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to
low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina
drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based
drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda,
Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and
all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips;
Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar
brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack
options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s,
Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated
fats and all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are
franchisee owned and 5 co packer units. In addition to this, PepsiCo’s Frito Lay foods division
has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making
tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible
in its contribution to the country, consumers and farmers.
Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with Purpose.

We believe our financial success – Performance – must go hand-in-hand with our social
and environmental responsibilities – Purpose. We bring that Purpose to every aspect of our
business.

Our approach to superior financial performance is straightforward – drive shareholder

value. By integrating a commitment to social and environmental performance into all of our
businesses, we're able to manufacture our products more efficiently and economically, attract
even more of the world's best talent, and sharpen our competitive edge in markets all over the
world.

Our Performance with Purpose agenda is comprised of three platforms:

Human Sustainability

Nourish consumers with a broad range of convenient, great-tasting foods and drinks –
from treats and simple refreshments to positive nutrition; make the healthy choice an easier
choice to make.

Environmental Sustainability

Conserve our natural resources; operate in a way that minimizes our environmental
footprint with the goal of reaching a net-neutral impact.

Our commitment
 At the foundation of all is the PepsiCo culture. It is our culture that supports our values
and facilitates the achievement of the vision. While there is no official list of PepsiCo cultural
attributes, there are many manifestations that quickly become evident to new employees.

For example, our business strategies and organizational structure place a heavy reliance
on our quality people to make things happen. PepsiCo employees are smart, creative, and
passionate about their work, and these talents are leveraged fully in our empowered workplace.
There is an ownership culture that promotes individual initiative and responsibility.
Palakkad plant history:

Pepsico India Holdings Pvt Ltd, Palakkad was incorporated in the year 2001, with its
manufacturing facility located at Pudussery panchayat , Dist. – Palakkad. We manufacture the
worldwide popular carbonated softdrinks viz Pepsi, 7up, Mirinda, Mountain Dew & and the
packaged water Brand “Aquafina”.
PepsiCo Palakkad covers a total area of 50.48 acres. The manufacturing facilities of the
plant are designed and constructed as the State Of the Art Technology.
It runs three lines namely:

 600 BPM Glass Line (Sassib)

 300 BPM Pet Line (Sassib)

 180 BPM Water Line (KHS)

Palakkad Plant under the umbrella of Pepsico India Business unit is one of the leading plants
in India business operations. The Plant enjoys the below mentioned achievements in the past:-

 First plant in India BU to successfully implement Self Managing Teams (SMT) –

learning and fully integrated team, willing to take additional responsibility and
challenges.
 Professional and scientific selection of associates – mix of males and females.
 Introduction of Female associates being sustained with success.
 ISO 14001:2004 certified in 2009
 HACCP certification in 2008
 PepsiCo International “Quality Excellence Award” (Bronze level) in 2005
 National Award for Excellence by CII in Water Management in 2007 & 2008
 Golden peacock Environ management in 2005
 Water Digest Award for “Corporate Social Responsibility for Water Practices”
Staffing policy:

1. Recruitment and Selection:

The following are the different categories of employees working in the plant.

1. Executives and Managers

2. Associates
3. NPCI
As per the current status the following are details of the employees working in the plant

Sl.No Category Strength.

1. Administrators (Executives & Managers) 40

2. Supervisors 15

3. Technicians 15

4. Manufacturing labours 525

Total 595

The selection of candidates

1. Campus Recruitment
2. Consultants
3. Direct Recruitment

Considering the requirements, every year company visits the Government ITI’S across
Kerala for recruiting trainee Associates. Initially, the candidates have to undergo a written test
after which they will be called for personal interviews that check both technical and
interpersonal aspects. Only, those candidates score at least 50% marks in the written test will be
screened for the personal interviews. If their proficiency in knowledge is found to be
satisfactory, they will be subjected to the Antecedent verification. After receiving a positive
report of the same, the candidates will be called for joining the Organization. A pre-employment
medical check up is done before they start with the machines.

2. Salary and Wage Administration:

Associates are appointed as two categories:

1. Trainees

2. Laterals

The training period for the employees joined as trainees from ITI is two years and they
will be getting a stipend of Rs.2750/pm in the first year and Rs.2900/-pm in the second year.
For diploma holders the stipend will be Rs.2900/pm in the first year and Rs.3150/-pm in the
second year.

Over and above, trainees will be eligible for Variable pay based on the daily productivity
and monthly performance of the plant. The variable pay scheme is as follows,

• Plant Incentive scheme

• Line Incentive Scheme
• Productivity linked bonus scheme
• Attendance Incentive during season time.

Induction schedule:

All New joiners are required to undergo an induction period for 4-6 days at the Plant in
every department with a view to get thorough understanding of the plant operations, as follows:-

• Quality Department – ½ day

• Production/Maintenance Department - 1 day
• Power/utilities - 1 day
• Briefing R&M- 1 day
 • Production Process- 1 day
• Lines/SKUs- 1 day
• Shipping Department – ½ day
• Distribution of the stocks- 1 day
• Details of products with MRP- 1 day
• Shipping operation- 1 day
• Finance and Purchase Department – ½ day
• Human Resource Department – ½ day
The New Joiners would meet the respective department heads (as given below) who would
ensure that their induction takes place appropriately as per schedule.

• Quality Manager - Anand Kumar

• Shipping Coordinator – Ravi Chandran
• Finance Manager – Ameya Gatad
• HR Manager - Vipin Dhariwal
• Production Manager – K. Paramashivam
 Analysis & Interpretation

Table 3.1 represents the Age of the respondents

Description Frequency Percentage (%)

20 to 25 Years 36 30%
26 to 30 Years 52 44%
31 to 35 Years 16 13%
36 to 40 Years 10 9%
Above 40 Years 5 4%
Total 119 100

Interpretation:

Table 3.1 shows that 44% of the respondents are between the age group of 26 to 30
years, 30% are between 20 to 25 years, 13% between 31 to 35 years, 9% between 36 to 40
years and 4% of the respondents are above 40 years.
 Table 3.2 represents the Gender of the respondents

Description Frequency Percentage (%)

Male 74 62
Female 45 38
Total 119 100

Interpretation:

Table 3.2 shows that 62% are Male respondents and 38% are female respondents.
It is inferred that organization are concentrating on the recruitment of the male candidates
because they are fit enough to work in machineries and also in rotational shifts than
comparing to female employees.
 Table 3.3 represents the Qualification of the respondents

Description Frequency Percentage (%)

Diploma 20 17%
Engineer 18 15%
Under Graduate 28 24%
Post Graduate 31 26%
Others 22 18%
Total 119 100

Interpretation:

Table 3.3 shows that 26% of the respondents are post graduates, 24% of the
respondents are under graduates, 18% of the respondents’ falls under the category others,
17% are diploma holders, 15% of the respondents are the engineers.
 Table 3.4 represents the No. of work experience in PepsiCo Limited.

Description Frequency Percentage (%)

0-3 Years 38 32%
3-6 Years 44 37%
6-9 Years 25 21%
Above 9 Years 12 10%
Total 119 100

Interpretation:

Table 3.4 shows that, 37% of the employees are having work experience from 3-6
years, 32% of the employees are having work experience from 0-6 years, 21% of the
employees are having 6-9 years of work experience and 10% of the employees are having
above 9 years of work experience.
 Table 3.5 represents the functional area in PepsiCo Limited which giving top priority to
Performance Management.

Description Frequency Percentage (%)

Human Resources 37 31%
Finance 30 25%
Products & service development 40 34%
Others please specify 12 10%
Total 119 100

Interpretation:

Table 3.5 shows that 34%of the respondents said that Products & Service
Development department gives top priority to performance management, 31% of the
respondents said that Human Resources department gives top priority to performance
management, 25% of the respondents said that Finance department gives top priority to
performance management, 10% of the respondents said that other department’s gives top
priority to performance management.
 Table 3.6 represents the rewards & recognitions followed in PepsiCo limited are
motivating factors of Performance Management.

Description Frequency Percentage (%)

Strongly Agree 34 28%
Agree 49 41%
Neutral 24 20%
Disagree 12 10%
Strongly Disagree 1 1%
Total 119 100

Interpretation:

Table 3.6 shows that 41% of the respondents are agreed to the rewards &
recognitions followed in their organization, 28% of the respondents are strongly agreed to
the rewards & recognitions followed in their organization, 20% of the respondents are
neither agreed nor disagreed to the rewards & recognitions followed in their organization,
10% of the respondents are disagreed to the rewards & recognitions followed in their
organization, 1% of the respondents are strongly disagreed to the rewards & recognitions
followed in their organization.
 Table 3.7 represents the level of Opportunities for personal growth and career
development which employees get.

Description Frequency Percentage (%)

Strongly Agree 36 30%
Agree 52 44%
Neutral 10 8%
Disagree 18 15%
Strongly Disagree 3 3%
Total 119 100

Interpretation:

Table 3.7 shows that 44% of the respondents are agreed to the level of
opportunities for personal growth & career development which they get in their
organization, 30% of the respondents are strongly agreed to the level of opportunities for
personal growth & career development which they get in their organization, 15% of the
respondents are disagreed to the level of opportunities for personal growth & career
development which they get in their organization, 8% of the respondents are neither
agreed nor disagreed to the level of opportunities for personal growth & career
development which they get in their organization, 3% of the respondents are strongly
disagreed to the level of opportunities for personal growth & career development which
they get in their organization.
 Table 3.8 represents the level of compensation linked on employees’ performance.

Description Frequency Percentage (%)

Strongly Agree 31 26
Agree 35 29
Neutral 25 21
Disagree 20 17
Strongly Disagree 8 7
Total 119 100

Interpretation:

Table 3.8 shows that 29% of the respondents are agreed to the level of
compensation linked on their performance followed in their organization, 26% of the
respondents are strongly agreed to the level of compensation linked on their performance
followed in their organization, 21% of the respondents are neither agreed nor disagreed to
the level of compensation linked on their performance followed in their organization, 17%
of the respondents are disagreed to the level of compensation linked on their performance
followed in their organization, 7% of the respondents are strongly disagreed the level of
compensation linked on their performance followed in their organization.
 Table 3.9 represents the performance related pay is essential for part of Performance
Management.

Description Frequency Percentage (%)

Strongly Agree 20 17%
Agree 43 36%
Neutral 28 23%
Disagree 21 18%
Strongly Disagree 7 6%
Total 119 100

Interpretation:

Table 3.9 shows that 36% of the respondents are agreed to the performance related
pay is essential part of performance management, 23% of the respondents are neither
agreed nor disagreed to the performance related pay is essential part of performance
management, 18% of the respondents are disagreed to the performance related pay is
essential part of performance management, 17% of the respondents are strongly agreed to
the performance related pay is essential part of performance management, 6% of the
respondents are strongly disagreed to the performance related pay is essential part of
performance management.
Table 3.10 represents the performance management is about individual & their long term
development.

Description Frequency Percentage (%)

Strongly Agree 36 30%
Agree 40 34%
Neutral 18 15%
Disagree 20 17%
Strongly Disagree 5 4%
Total 119 100

Interpretation:

Table 3.10 shows that, 34% of the respondents are agreed to the performance
management is about individual & their long term development, 30% of the respondents
are strongly agreed to the performance management is about individual & their long term
development, 17% of the respondents are disagreed to the performance management is
about individual & their long term development, 15% of the respondents are neither
agreed nor disagreed to the performance management is about individual & their long
term development, 4% of the respondents are strongly disagreed to the performance
management is about individual & their long term development.

Table 3.11 represents the performance management provides a way of keeping a record of
an individual’s progress and performance.
 Description Frequency Percentage (%)
Strongly Agree 39 33%
Agree 44 37%
Neutral 16 13%
Disagree 19 16%
Strongly Disagree 1 1%
Total 119 100

Interpretation:

Table 3.11 shows that 37% of the respondents are agreed to the performance
management provides a way of keeping a record of an individual’s progress and
performance, 33% of the respondents are strongly agreed to the performance management
provides a way of keeping a record of an individual’s progress and performance, 16% of
the respondents are disagreed to the performance management provides a way of keeping
a record of an individual’s progress and performance, 1% of the respondents are strongly
disagreed to the performance management provides a way of keeping a record of an
individual’s progress and performance.

Table 3.12 represents the performance management motivates people and makes them to
feel as the part of the organization.
 Description Frequency Percentage (%)
Strongly Agree 38 32%
Agree 43 36%
Neutral 22 18%
Disagree 13 11%
Strongly Disagree 3 3%
Total 119 100

Interpretation:

Table 3.12 shows that, 36% of the respodents are agreed to the performance
management motivate people and make them to feel as the part of the organization, 32% of
the respondents are strongly agreed to to the performance management motivates people
and makes them to feel as the part of the organization, 18% of the respondents are neither
agreed nor disagreed to to the performance management motivates people and makes them
to feel as the part of the organization, 11% of the respondents are disagreed to to the
performance management motivates people and makes them to feel as the part of the
organization, 3% of the respondents are strongly disagreed to to the performance
management motivates people and makes them to feel as the part of the organization.

Table 3.13 represents the employees are getting useful feedback from their performance
management review.

Description Frequency Percentage (%)

 Strongly Agree 21 18%
Agree 30 25%
Neutral 32 27%
Disagree 26 22%
Strongly Disagree 10 8%
Total 119 100

Interpretation:

Table 3.13 shows that 27% of the respondents are neither agreed nor disagreed to
the employees are getting useful feedback from their performance management review,
25% of the respondents are agreed to the employees are getting useful feedback from their
performance management review, 22% of the respondents are disagreed to the employees
are getting useful feedback from their performance management review, 18% of the
respondents are strongly agreed to the employees are getting useful feedback from their
performance management review, 8% of the respondents are strongly disagreed to the
employees are getting useful feedback from their performance management review.

Table 3.14 represents the performance management helps employees to do their job in a
better way.

Description Frequency Percentage (%)

Strongly Agree 33 28%
Agree 42 35%
 Neutral 22 19%
Disagree 16 13%
Strongly Disagree 6 5%
Total 119 100

Interpretation:

Table 3.14 showa that 35% of the respondents are agreed to the performance
management helps employees to do their job in a better way, 28% of the respondents are
strongly agreed to the performance management helps employees to do their job in a better
way, 19% of the respondents are neither agreed nor disagreed to the performance
management helps employees to do their job in a better way, 13% of the respondents are
disagreed to the performance management helps employees to do their job in a better way,
5% of the respondents are disagreed to the performance management helps employees to
do their job in a better way.

Table 3.15 represents time spent of Performance management is worthwhile.

Description Frequency Percentage (%)

Strongly Agree 15 13%
Agree 87 73%
Neutral 7 6%
 Disagree 10 8%
Strongly Disagree 0 0%
Total 119 100

Interpretation:

Table 3.15 shows that, 73% of the respondents are agreed to the time spent of
Performance management is worthwhile, 13% of the respondents are strongly agreed to
the time spent of Performance management is worthwhile, 8% of the respondents are
disagreed to the time spent of Performance management is worthwhile, 6% of the
respondents are neither agreed nor disagreed to the time spent of Performance
management is worthwhile and no respondent is disagreed for the time spent of
Performance management is worthwhile.

Table 3.16 represents the employees training goes beyond technical skills to include social
skills, general problem-solving skills & broader knowledge of the organization.

Description Frequency Percentage (%)

Strongly Agree 32 27%
Agree 52 44%
Neutral 15 13%
Disagree 12 10%
 Strongly Disagree 8 6%
Total 119 100

Interpretation:

Table 3.16 shows that, 44% of the respondents are agreed to the employees training
goes beyond technical skills to include social skills, general problem-solving skills &
broader knowledge of the organization, 27% of the respondents are strongly agreed to the
employees training goes beyond technical skills to include social skills, general problem-
solving skills & broader knowledge of the organization, 13% of the respondents neither
agreed nor disagreed to the employees training goes beyond technical skills to include
social skills, general problem-solving skills & broader knowledge of the organization, 10%
of the respondents are disagreed to the employees training goes beyond technical skills to
include social skills, general problem-solving skills & broader knowledge of the
organization, 7% of the respondents are strongly disagreed to the employees training goes
beyond technical skills to include social skills, general problem-solving skills & broader
knowledge of the organization.

The following are the tables showing the effectiveness of the review meeting conducted in
each of the areas listed below:

Table 3.17 represents creating & maintaining an informal and friendly atmosphere in
review meeting.

Description Frequency Percentage (%)

 Very effectively 25 21%
Effectively 38 32%
Fairly effectively 52 44%
Not effectively 4 3%
Total 119 100

Interpretation:

Table 3.17 shows that, 44% of the respondents said that creating & maintaining an
informal and friendly atmosphere in review meeting are fairly effective, 32% of the
respondents said that creating & maintaining an informal and friendly atmosphere in
review meeting are effective, 21% of the respondents said that creating & maintaining an
informal and friendly atmosphere in review meeting are very effective, 3% of the
respondents said that creating & maintaining an informal and friendly atmosphere in
review meeting are not effective.

Table 3.18 represents the employees working to a clear structure.

Description Frequency Percentage (%)

Very effectively 20 17%
Effectively 40 34%
Fairly effectively 48 40%
Not effectively 11 9%
Total 119 100
Interpretation:

Table 3.18 shows that, 40% of the respondents said that the employees working to a
clear structure in a fairly effective manner, 34% of the respondents said that the employees
working to a clear structure in a effective manner, 17% of the respondents said that the
employees working to a clear structure in a very effective manner, 9% of the respondents
said that the employees working to a clear structure is not in effective manner.

Table 3.19 represents the keeping control of the meeting.

Description Frequency Percentage (%)

Very effectively 34 28%
Effectively 45 38%
Fairly effectively 32 27%
Not effectively 8 7%
Total 119 100
Interpretation:

Table 3.19 shows that, 38% of the respondents said that keeping control of the
meeting is in effective manner, 28% of the respondents said that keeping control of the
meeting is in very effective manner, 27% of the respondents said that keeping control of
the meeting in a fairly effective manner, 7% of the respondents said that keeping control of
the meeting is not in effective manner.

Table 3.20 represents the using of praise in the review meeting.

Description Frequency Percentage (%)

Very effectively 35 29%
Effectively 53 45%
Fairly effectively 28 24%
Not effectively 3 2%
Total 119 100
Interpretation:

Table 3.20 shows that, 45% of the respondents said that using of praise in the
review meeting is in effective manner, 29% of the respondents said that using of praise in
the review meeting is in very effective manner, 24% of the respondents said that using of
praise in the review meeting is in effective manner, 2% of the respondents said that using
of praise in the review meeting is not in a effective way.

Table 3.21 represents the way of handling criticism in the review meeting.

Description Frequency Percentage (%)

Very effectively 28 23%
Effectively 39 33%
Fairly effectively 43 36%
Not effectively 9 8%
Total 119 100
Interpretation:

Table 3.21 shows that, 36% of the respondents said that the way of handling
criticism in the review meeting is in fairly effective manner, 33% of the respondents said
that the way of handling criticism in the review meeting is in effective manner, 23% of the
respondents said that the way of handling criticism in the review meeting is in very
effective manner, 8% of the respondents said that the way of handling criticism in the
review meeting is not in effective manner.

Table 3.22 represents inviting self assessment in the review meeting.

Description Frequency Percentage (%)

Very effectively 30 25%
Effectively 45 38%
Fairly effectively 25 21%
Not effectively 19 16%
Total 119 100
Interpretation:

Table 3.22 shows that, 38% of the respondents said that inviting self
assessment in the review meeting is in effective manner, 25% of the respondents said that
inviting self assessment in the review meeting is in very effective manner, 21% of the
respondents said that inviting self assessment in the review meeting is fairly effective
manner, 16% of the respondents said that inviting self assessment in the review meeting is
not in effective manner.

Table 3.23 represents the focusing on facts and discussing about performance not about
personality in the review meeting.

Description Frequency Percentage (%)

Very effectively 33 28%
Effectively 48 40%
Fairly effectively 31 26%
Not effectively 7 6%
Total 119 100
Interpretation:

Table 3.23 shows that, 40% of the respondents said that the focusing on facts
and discussing about performance not about personality in the review meeting is in
effective manner, 28% of the respondents said that the focusing on facts and discussing
about performance not about personality in the review meeting is in very effective manner,
26% of the respondents said that the focusing on facts and discussing about performance
not about personality in the review meeting is in fairly effective manner, 6% of the
respondents said that the focusing on facts and discussing about performance not about
personality in the review meeting is not in effective manner.

Table 3.24 represents the agreeing a plan of action in the review meeting.

Description Frequency Percentage (%)

Very effectively 42 35%
Effectively 48 40%
Fairly effectively 27 23%
Not effectively 2 2%
Total 119 100
Interpretation:

Table 3.24 shows that, 40% of the respondents said that the agreeing a plan
of action in the review meeting is in effective manner, 35% of the respondents said that the
agreeing a plan of action in the review meeting is in very effective manner, 23% of the
respondents said that the agreeing a plan of action in the review meeting is in fairly
effective manner, 2% of the respondents said that the agreeing a plan of action in the
review meeting is not in effective manner.

The following are the tables representing the satisfaction level in the various areas of the
organization.

Table 3.25 represents the efficiency in the use of resources.

Description Frequency Percentage (%)

Excellent 39 33%
Good 52 43%
Average 23 19%
Unsatisfactory 6 5%
Total 119 100
Interpretation:

Table 3.25 shows that, 43% of the respondents said that the efficiency in the
use of resources in the organization is good, 33% of the respondents said that the efficiency
in the use of resources in the organization is excellent, 19% of the respondents said that the
efficiency in the use of resources in the organization is average, 5% of the respondents said
that the efficiency in the use of resources in the organization is unsatisfactory.

Table 3.26 represents the assurance of quality performance.

Description Frequency Percentage (%)

Excellent 43 36%
Good 51 43%
Average 25 21%
Unsatisfactory 0 0%
Total 119 100
Interpretation:

Table 3.26 shows that, 43% of the respondents said that assurance of quality
performance in the organization is good, 36% of the respondents said that assurance of
quality performance in the organization is excellent, 21% of the respondents said that
assurance of quality performance in the organization is average, None of the respondents
said that assurance of quality performance in the organization is unsatisfactory.

Table 3.27 represents the employee’s satisfaction in the organization.

Description Frequency Percentage (%)

Excellent 41 34%
Good 49 41%
Average 25 21%
Unsatisfactory 4 4%
Total 119 100
Interpretation:

Table 3.27 shows that, 41% of the respondents said that the employee’s satisfaction
in the organization is good, 35% of the respondents said that the employee’s satisfaction in
the organization is excellent, 21% of the respondents said that the employee’s satisfaction
in the organization is average, 3% of the respondents said that the employee’s satisfaction
in the organization is unsatisfactory.

Table 3.28 represents the quality of products.

Description Frequency Percentage (%)

Excellent 46 39%
Good 55 46%
Average 18 15%
Unsatisfactory 0 0%
Total 119 100
Interpretation:

Table 3.28 shows that, 46% of the respondents said that the quality of products in
the organization is good, 39% of the respondents said that the quality of products in the
organization is excellent, 15% of the respondents said that the quality of products in the
organization is average, None of the respondents said that the quality of products in the
organization is unsatisfactory.

Table 3.29 represents the quality of standards.

Description Frequency Percentage (%)

Excellent 35 29%
Good 54 45%
Average 28 24%
Unsatisfactory 2 2%
Total 119 100
Interpretation:

Table 3.29 shows that, 45% of the respondents said that the quality of
standards in the organization is good, 29% of the respondents said that the quality of
standards in the organization is excellent, 24% of the respondents said that the quality of
standards in the organization is average, 2% of the respondents said that the quality of
standards in the organization is unsatisfactory.

Table 3.30 represents the safety standards in organization.

Description Frequency Percentage (%)

Excellent 48 40%
Good 49 41%
Average 19 16%
Unsatisfactory 3 3%
Total 119 100
Interpretation:

Table 3.30 shows that, 41% of the respondents said that the safety standards
in organization is good, 40% of the respondents said that the safety standards in
organization is excellent, 16% of the respondents said that the safety standards in
organization is average, 3% of the respondents said that the safety standards in
organization is unsatisfactory.

Table 3.31 represents the rate of product delivery.

Description Frequency Percentage (%)

Excellent 42 35%
Good 58 49%
Average 16 13%
Unsatisfactory 3 3%
Total 119 100
Interpretation:

Table 3.31 shows that, 49% of the respondents said that the rate of product
delivery is good, 35% of the respondents said that the rate of product delivery is excellent,
13% of the respondents said that the rate of product delivery is average, 3% of the
respondents said that the rate of product delivery is unsatisfactory.

Table 3.32 represents the staff punctuality and corporate social responsibility.

Description Frequency Percentage (%)

Excellent 31 26%
Good 39 33%
Average 45 38%
Unsatisfactory 4 3%
Total 119 100
Interpretation:

Table 3.32 shows that, 38% of the respondents said that the staff punctuality
and corporate social responsibility is average, 33% of the respondents said that the staff
punctuality and corporate social responsibility is good, 26% of the respondents said that
the staff punctuality and corporate social responsibility is excellent, 3% of the respondents
said that the staff punctuality and corporate social responsibility is unsatisfactory.

Table 3.33 represents the environment conservation.

Description Frequency Percentage (%)

Excellent 29 24%
Good 32 27%
Average 49 41%
Unsatisfactory 9 8%
Total 119 100
Interpretation:

Table 3.33 shows that, 41% of the respondents said that the environment
conservation in the organization is average, 27% of the respondents said that the
environment conservation in the organization is good, 24% of the respondents said that the
environment conservation in the organization is excellent, 8% of the respondents said that
the environment conservation in the organization is unsatisfactory.

Findings

1. It is inferred that 44% of the respondents are between the age group of 26-30 years.

2. It is found 62% are Male respondents and 38% are female respondents. It is inferred that
organization are concentrating on the recruitment of the male candidates because they are fit
enough to work in machineries and also in rotational shifts than comparing to female
employees.

3. It is inferred that 26% of the respondents are post graduates, 24% of the respondents are
under graduates, 18% of the respondents’ falls under the category others, 17% are diploma
holders, 15% of the respondents are the engineers, so they are in need of graduates.

4. It is found that 37% of the employees are having work experience from 3-6 years.

5. It is found that 34%of the respondents said that Products & Service Development
department gives top priority to performance management, 31% of the respondents said that
Human Resources department gives top priority to performance management.

6. It is inferred that 41% of the respondents are agreed to the rewards & recognitions
followed in their organization, 28% of the respondents are strongly agreed to the rewards &
recognitions followed in their organization, 1% of the respondents are strongly disagreed to
the rewards & recognitions followed in their organization. This indicates that still there are 1%
of the employees are not agreed with the rewards & recognition practices.

7. It is inferred that 44% of the respondents are agreed to the level of opportunities for
personal growth & career development which they get in their organization. This indicates that
they have the opportunity to develop them personally.
8. It is found that 29% of the respondents are agreed to the level of compensation linked on
their performance followed in their organization and 7% of the respondents are strongly
disagreed the level of compensation linked on their performance. This indicates that 7% of the
employees are not satisfied with the compensation which they get.

9. It is found that 36% of the respondents are agreed to the performance related pay is
essential part of performance management and 6% of the respondents are strongly disagreed to
the performance related pay is essential part of performance management. This indicates only
36% are satisfied with their performance related pay.

10. It is inferred that 34% of the respondents are agreed to the performance management is
about individual & their long term development, 30% of the respondents are strongly agreed
to the performance management is about individual & their long term development. This
indicates that they have their liberty to develop them personally & professionally.

11. It is inferred that 37% of the respondents are agreed to the performance management
provides a way of keeping a record of an individual’s progress and performance, this helps to
justify the individuals performance.

12. It is inferred that 36% of the respodents are agreed to the performance management
motivate people and make them to feel as the part of the organization, This indicates that most
of the individuals feel that they are getting motivated because of the performance
management.

13. It is inferred that 27% of the respondents are neither agreed nor disagreed to the
employees are getting useful feedback from their performance management review, 25% of
the respondents are agreed to the employees are getting useful feedback from their
performance management review. This helps to identify individual’s positive & negative skills
they have.

14. It is found that 35% of the respondents are agreed to the performance management helps
employees to do their job in a better way, 28% of the respondents are strongly agreed to the
performance management helps employees to do their job in a better way. This indicates that
most of them are happy to do their jobs in a better way.

15. It is inferred that 73% of the respondents are agreed to the time spent of Performance
management is worthwhile. This indicates time spending on performance management gives
more impact to the organization in all aspects.

16. It is found that 44% of the respondents are agreed to the employees training goes beyond
technical skills to include social skills, general problem-solving skills & broader knowledge of
the organization, 7% do not agree with the training. This indicates they are getting not only
technical skills but also some social skills.

17. It is inferred that 44% of the respondents said that creating & maintaining an informal
and friendly atmosphere in review meeting are fairly effective. This says that they need to
create even friendlier atmosphere than what they have now.
18. It is found that 40% of the respondents said that the employees working to a clear
structure in a fairly effective manner. This indicates they are working partly in a clear
structure.

19. It is found that 28% of the respondents said that keeping control of the meeting is in very
effective manner, this indicates there should be more control towards the meeting.

20. It is found that 45% of the respondents said that using of praise in the review meeting is
in effective manner. This indicates effectively individuals getting praises for what they
deserve.

21. It is found that 36% of the respondents said that the way of handling criticism in the
review meeting is in fairly effective manner. This shows that handling criticism is agreed
towards the policy.

22. It is inferred that 38% of the respondents said that inviting self assessment in the review
meeting is in effective manner. This indicates the individual get chances of their self
assessment.

23. It is found that 40% of the respondents said that the focusing on facts and discussing
about performance not about personality in the review meeting is in effective manner. This
says that review is based only on talents & not on personalities.
24. It is inferred that 40% of the respondents said that the agreeing a plan of action in the
review meeting is in effective manner. This indicates most of the employees are agreeing for a
plan of action towards their structure.

25. It is found that 43% of the respondents said that the efficiency in the use of resources in
the organization is good. This indicates they can use the resources still in effective manner.

26. It is inferred that 43% of the respondents said that assurance of quality performance in
the organization is good. This indicates that the assurance of quality is over all good.

27. It is inferred that 41% of the respondents said that the employee’s satisfaction in the
organization is good, 35% of the respondents said that the employee’s satisfaction in the
organization is excellent. This indicates the employee satisfaction is more in this organization.

28. It is inferred that 46% of the respondents said that the quality of products in the
organization is good, 39% of the respondents said that the quality of products in the
organization is excellent. This indicates that, this organization is good in their quality.

29. It is found that 45% of the respondents said that the quality of standards in the
organization is good. This says that the standards of the quality are agreed.

30. It is inferred that 41% of the respondents said that the safety standards in organization is
good, 40% of the respondents said that the safety standards in organization is excellent. This
indicates that, all are more concerned about safety & they got all the safety measures.
31. It is found that 49% of the respondents said that the rate of product delivery is good. This
indicates that timeliness holds good.

32. It is inferred that 38% of the respondents said that the staff punctuality and corporate
social responsibility is average. This says that, they have to improve in their staff punctuality
& corporate social responsibility.

33. It is inferred that 41% of the respondents said that the environment conservation in the
organization is average. This indicates there can be further improvement in the conservation of
environment.
 Gap Analysis

Business gap analysis can be used to help achieve certain goals. This analysis
includes a description of the company's current situation, and what the company wants to
achieve in the future or what they have achieved in the past. The difference between these two
items is the gap. The analysis includes specific action steps the company must complete to close
this gap and achieve its goals.

In business and economics, gap analysis is a tool that helps a company to compare its
actual performance with its potential performance. If a company or organization is not making
the best use of its current resources or is forgoing investment in capital or technology, then it
may be producing or performing at a level below its potential.

The goal of gap analysis is to identify the gap between the optimized allocation and
integration of the inputs, and the current level of allocation. This helps provide the company with
insight into areas which could be improved. The gap analysis process involves determining,
documenting and approving the variance between business requirements and current capabilities.
Gap analysis naturally flows from benchmarking and other assessments. Once the general
expectation of performance in the industry is understood, it is possible to compare that
expectation with the company's current level of performance. This comparison becomes the gap
analysis. Such analysis can be performed at the strategic or operational level of an organization.
 The following are data’s taken from the year end results in some of the important areas
which are considered to be taken care by the organization for the good performance management
and to get over all profitability.

Sl.No Important areas for performance management of the Result in the year
organization 2009-2010
(In 5 point scale)
1 Quality of product 4
2 Safety standards 3.6
3 Work environment 3.5
4 Employee satisfaction 3
5 Performance related Pay & compensation linked 2.2
performance
6 Individual development & personal growth 2.5
7 Rewards & recognition 3.4
8 Measuring individual performance & review meetings 2.6
9 Training & development 3
10 Staff punctuality & corporate responsibility 2

Current year data taken from the results of the questionnaire:

Sl.No Important areas for performance Result for the year Jan 2010 to till
management of the organization date(In 5 point scale)
1 Quality of product 4.25
2 Safety standards 4.05
3 Work environment 2.55
4 Employee satisfaction 3.75
5 Performance related Pay & compensation 2.7
linked performance
6 Individual development & personal growth 3.55
7 Rewards & recognition 3.45
8 Measuring individual performance & review 3.25
meetings
9 Training & development 3.55
10 Staff punctuality & corporate responsibility 2.95
Comparative table for the year 2009 & 2010 with the difference:

Sl. Important areas for Result in Result for

No performance management of the year the year Jan
the organization 2009-2010 2010 to till
(In 5 point date(In 5 Difference/
scale) point scale) gap
1 Quality of product 4 4.25 0.25
2 Safety standards 3.6 4.05 0.45
3 Work environment 3.5 2.55 -0.95
4 Employee satisfaction 3 3.75 0.75
5 Performance related Pay & 2.2 2.7
compensation linked performance 0.5
6 Individual development & 2.5 3.55
personal growth 1.05
7 Rewards & recognition 3.4 3.45 0.05
8 Measuring individual 2.6 3.25
performance & review meetings 0.65
9 Training & development 3 3.55 0.55
10 Staff punctuality & corporate 2 2.95
responsibility 0.95

Note:

5 - Excellent

4 - Good

3 - Average

2 - Need to improve

1 - Need more attention

(This is common for all the tables)

Gap Analysis Chart
Reasons for Gap analysis differences:

There are various reasons in the organization for the gap between the main factors
which decides the level of performance of the organization as a whole. Some important reasons
are as follows:

1. Quality of product:

The Quality of product is increased by 0.25 from the year 2009-2010 to till date, and the
reason for this increase is, the organization has the policy of no compromise in quality &
concentrates more on quality side to get all raw materials & other things from the reputed
suppliers rather than cheap one.

2. Safety standards:

The safety standards is increased by 0.45 from the year 2009-2010 to till date, and the
reason for this increase is, the organization has studied the need of safety and now implemented
various new techniques of safety standards & upgraded some standards which are already in
process.

3. Work environment:

The work environment is decreased by 0.95 from the year 2009-2010 to till date, and the
reason for this decrease is, there is no healthy relationship between the co-workers & there is no
optimum usage of working environment and there are many conflicts between colleagues due to
human mind perception about other workers in the same concern.

4. Employee satisfaction:

The employee satisfaction is increased by 0.75 from the year 2009-2010 to till date, and
the reason for this increase is, the organization is making all the employees satisfied in all the
kinds of monetary & non-monetary terms. Employees are satisfied to the great extent for their
individual development.
5. Performance related Pay & compensation linked performance:

The Performance related Pay & compensation linked performance is increased by 0.5
from the year 2009-2010 to till date, and the reason for this increase is, the organization has high
incentive scheme to the high level performers and the pay is based on the performance so every
one is awarded to their performance, the minimum level of pay is common to all so every kind of
performer can get their minimum pay.

6. Individual development & personal growth:

The Individual development & Personal growth of the employees is increased by 1.05
from the year 2009-2010 to till date, and the reason for this increase is, the organization now
focuses more on each employee’s development which helps us to achieve our organizational
goals. The organization is offering various trainings in need basis to develop them towards their
personal growth.

7. Rewards & recognition:

The Rewards & recognitions for the employees are increased by 0.05 from the year 2009-
2010 to till date, and the reason for this increase is, the organization modifies the rewards &
recognitions schemes according to the employee’s satisfaction & this system helps all the
employees to be rewarded & they will get motivated to do more job.

8. Measuring individual performance & review meetings:

The measuring of individual performance & review meetings are increased by 0.65 from
the year 2009-2010 to till date, and the reason for this increase is, the organization tracks the
records of the performance of the employees from the start of the year to till the end which gives
the clear picture about their performance & the review based on documented records will be
justifiable for all the employees.

9. Training & development:

 The training & development of the employees are increased by 0.55 from the year 2009-
2010 to till date, and the reason for this increase is, the organization gives more training
programs & workshops to the employees on the basis of their grade level and common training
programs is giving to all grade of employees. The training is offered on the need basis to all, if
necessary.

10. Staff punctuality & corporate responsibility:

The staff punctuality & corporate responsibility of the employees are increased by 0.95
from the year 2009-2010 to till date, and the reason for this increase is, the organization gives
more corporate responsibility to the employees to tackle the corporate problems & the staff
punctuality has been increased due to new HR policies related to the punctuality & the reward
scheme for perfect individuals.
 Suggestions

Organizations shall adopt performance management practices that are consistent with the
requirements of the company’s policy and that best fit nature of the work performed and the
mission of the organization.
As per the findings of agreed level of performance management of the PepsiCo limited,
still they can improve their performance management system by updating some small things in the
existing performance management system.

1. Communicating employee performance expectations. This helps the employee to

give out their best with available resources & time.

2. The organization can conduct regular fun activities and some sports activities to
the employees.

3. The organization can initiate some of the community development programs to

improve the social skills of the individual’s.

4. The organization can identify & recognize the persons not only for the
performance but also for various factors like creativity, best employee award, etc.

5. More training in the optimum usage of resources & the good knowledge to the
employees about the cost cutting factor. More training to employees to develop
their empathy towards others so that they can avoid conflicts.

6. Encouraging the incentive schemes for high performer.

7. Finally, the organization should evaluate its performance management system at

least every three (3) years to determine how effectively the system is meeting the
purposes stated in the company’s policy and take actions to improve the system if
 necessary. Evaluation findings & improvement actions shall be reported to the
higher official.

Conclusion

A Performance Management System enables a business to sustain profitability

and performance by linking the employees' pay to competency and contribution. It provides
opportunities for concerted personal development and career growth. It brings all the employees
under a single strategic umbrella. Most importantly, it gives supervisors and subordinates an equal
opportunity to express themselves under structured conditions. Managing this process effectively
isn't easy. It calls for a high level of co-ordination, channeled information flow, and timely review.
Whether employees are at a single place, or spread across multiple locations, the use of
technology can help simplify the complete process for more effective information management.