INTRODUCTION

There are various meanings of performance management, but in reality, it is

about improving the performance; of the employees, the organization or both.

Performance management usually refers to many initiatives that are taken on-

board by management to ensure that performance is more manageable. While

performance management can be seen through various perspectives; including

strategy, organizational behavior, operations management, economics, accounting

and HRM, this research will focus on how to enhance employee and organizational

performance.

Poorly implemented performance systems have a negative impact on

organizations and can lead to increased employee turnover. If employees see that the

performance process is unfair, they will leave the organization or withdraw

psychologically. In other words, they will put in minimum effort towards their work

until they find another job and then resign. A system that is not standardized will

provide misleading and fabricating information about employee performance.

This will lead to lowered self-esteem, damaged relationships and decreased

motivation to perform on the part of employees. Further to this, employees will

experience increased level of job burnout and job dissatisfaction. From the

management point of view, systems that are poorly implemented will increase the risk

of litigation. Employees may file lawsuits against the organization for being appraised

unfairly and for mistreatment. In addition to this, there will be emerging biases,

unclear rating systems and these will lead to decreased productivity within the

organization.
 This process requires more interaction between the supervisor and supervisee

and encourages the professional development of the employee to meet the

organization’s changing needs. While this more dynamic evaluation process is time-

consuming, the increased productivity levels resulting from performance management

have proven to be valuable to many organizations.

STATEMENT OF THE PROBLEM

Employee perceptions and attitudes affect employee performance, which in

turn affects organizational performance and productivity. Therefore, the focus of this

study is to know the effectiveness of the performance management system in the

Kerala Feeds, Kalettumkara with the aim of developing a suitable improved

performance management system.

OBJECTIVES OF THE STUDY

 To understand the importance of Performance Management System in Kerala

Feeds, Kalettumkara that synchronizes the performance of the employees so as

to make the work effective.

 To study the process and methods of existing performance management

system.

 To suggest the ways to improve the performance of employees and thereby

improving the overall performance of the company.

 RESEARCH METHODOLOGY

Research methodology is a way of systematically solving the research

problems. It may be understood as a science of studying how the research is done

scientifically. It studies the various steps that are adopted by researcher in studying

the research problems. It is necessary to the research process but also the

methodology.

SCOPE OF THE STUDY

The study on performance management system provides many scopes as the

productivity is entirely depend upon the performance. The present study aims at

knowing the performance management system among the employees with special

reference to Kerala feeds, kalettumkara. The study helps to know the performance

management system among the employees. The study is mainly conducted among the

staff and workers who are related with Kerala Feeds, Kalettumkara.

LIMITATIONS OF THE STUDY

 The study is undertaking within a short span of one month.

 Lack of co-operation from certain employees due to their tight schedules.

 Wrong opinion expressed by the employees due to fear also affected the

genuineness of the result.

PERIOD OF THE STUDY

This project work has been done as a part of BBA program which was

conducted for one month.

 INDUSTRY PROFILE

The Indian feed industry is about 35 years old. The quality standards of Indian

feeds are high and up to international levels. Raw materials for feed are adequately

available in India. The feed industry has modern computerized plants and the latest

equipment for analytical procedures and least-cost ration formulation, and it employs

the latest manufacturing technology. The poultry industry is now growing in

importance. Today, the Indian feed industry is worth approximately Rs 45 billion, that

is about US$1 billion.

The animal feed and fodder industry is another ago-based industry, which

helps the growth of dairy industry also. Acute shortage of feed and fodder, one of the

weaknesses of Indian dairy industry. Keeping in view the growth rate of population,

income, demand for food, it is estimated that India would need around 215 million

tons of food grains. One of the trends to be followed is that productivity in livestock

sector continues to be guided by population, rather than increase in productivity levels

per unit of production. Researches pertaining to intensive feeding, breeding and

management need to be strengthened. India has one of the largest populations of

domestic animals that provide diverse products such as milk, meat, wool, eggs and

skins.

The cattle feed business is growing by a CAGR of more than 30% as milk

producers have started replacing traditional feed with more nutritional DOC having

realized the tangible benefits in terms of yield improvements. Also, there is an

increasing trend in diversion of soya-bean meal for human based consumption leading
to bigger market share of cottonseed meals for cattle feed in India. State and Central

Govt. are concentrating on incremental increase of cattle’s in the state / country.

These cattle’s provide self-employment to the beneficiary by generating sufficient

income through their produce or flash.

In India the animal feed industry is of recent origin, the first animal food plant

having been established in 1960. There are today as many as 14 plants in the

organized sector, besides many small feed compounders, which operate in large cities.

The 14 organized units have modern or semi modern equipment for manufacturing

compound feeds. All of them have excellent facilities for quality control and are well

equipped for chemical analysis of raw materials and the finished products. The

installed capacity for all types of feeds that can be produced in the units under

organized sector in India is estimated in the neighborhood of 630000 metric tons a

year. Taking into account the expansion plans of the organized sector, it is anticipated

that the capacity of this industry in India is likely to increase rapidly.

India has the largest cattle, buffalo and goat population according to latest

census. There are about 200 million cattle, 50 million buffaloes and 90 million goats

in the country. About one sixth of the cattle, about half of buffalo and one fifth of goat

population in world are in India. Animal husbandry plays an important role in the

national life and accounts for about 10% of the national income. In particular the

contributor of the cattle and buffalo to the economy is considerable. They are the

main source of drought power in agricultural operations and rural transportation they

provide essential, foods like milk and meal.

Industries playing increasing roles in the struggle against world hunger include the

poultry industry, which require less capital to enter than other animal industries, and

the feed industry, which provides economical, feeds upon which the poultry industry

depends. Any entrepreneur venture into this field will be successful.

KERALA FEEDS INDUSTRY

Setup in 1995, Kerala Feeds Ltd was incorporated under the Companies act —

1956 with a production capacity of 500 TPD. The production was enhances to 650

TPD in June 2006. Kerala Feeds Limited is a Public Sector Undertaking under the

control of Government of Kerala. The Company is committed to produce and sell

good quality compounded cattle feed and feed supplements to dairy farmers at

affordable rates. The manufacturing technology and the Plant & Machinery of the

Company are one of the best in the country and consequently we are able to supply

consistent good quality feed in the form of pellets to dairy farmers. Imported

equipment’s, advanced technology and commitment to produce good quality of

pelletized cattle feed provides a cutting edge to the Company in the market as

compared to its competitors. Owing to its excellent quality, Company's products have

got very good demand in the market and always the demand exceeds the production

capacity. Being a Public Sector Undertaking, the Company has a definite role in

fulfilling the social obligation as well and consequently the Company's intervention

and presence in the market has saved the farmers from the exorbitant price increase of

cattle feed. This point is particularly worthy of mentioning especially for the period

2006 to 2009 when the cattle feed industry in India faced a turbulent period owing to

unprecedented increase in the price of raw materials. Companies in the private sector
are mainly operating on profit motive and consequently they increased the selling

price of cattle feed many times in tune with the increase in raw material cost during

this period. However Kerala Feeds Limited, being a Public Sector Undertaking has

the dual responsibility of profit motive as well as social obligation to support the dairy

farmers in their crisis period. Hence unlike a company in private sector, Kerala Feeds

Limited has not made matching increase in the price of its cattle feed in line with the

increase in raw material cost and to a large extent Company's presence in the market

saved the dairy farmers from exorbitant price increase of cattle feed. Government of

Kerala is committed to ensure this social responsibility and consequent to

Government policy and direction of controlling the price of cattle feed, board of

Directors of the company also give due priority to this aspect.

 COMPANY PROFILE
Kerala feeds Ltd.

Set up in 1995, Kerala feeds ltd was incorporate under the company act 1956

with a production capacity of 500 TPD. The production was enhancing to 650 TPD in

June 2006. Kerala feeds limited is a public sector undertaking under the control of

Govt. of Kerala. The company is committed to produce and sell good quality

compounded cattle feed and feed supplements to dairy farmers at affordable rates.

The manufacturing technology and the plant and machinery of the company are one

of the best in the country and consequently we are able to supply consistent good

quality feed in the form of pellets to diary famers. Imported equipment’s, advanced

technology and committed to produce good quality of pelletized cattle feed provide a

cutting edge to the company in the market as compared its competitors. Owing to its

excellent quality, company product have got very good demand in the market and

always the demand exceeds the production capacity. Being a public sector

undertaking, the company has a definite road in fulfilling a social obligation as a

consequently the company intervention and present in the market has saved the

famers from the exorbitant price increase of cattle feed. This point is particularly

worthy of mentioning a specially for the period 2006 to 2009 when the cattle feed

industry in India faced a turbulent period owing to unprecedented increase in the price

of raw materials. Companies in the private sector are mainly operating on profit

motive and consequently they increased the selling price of cattle feed many times in

tune with the increase in raw material cost during this period. However Kerala Feeds

Limited, being a Public Sector Undertaking has the dual responsibility of profit

motive as well as social obligation to support the dairy farmers in their crisis period.
Hence unlike a company in private sector. Kerala Feeds Limited has not made

matching increase in the price of its cattle feed in line with the increase in raw

material cost and to a large extent Company's presence in the market saved the dairy

fanners from exorbitant price increase of cattle feed. Government of Kerala is

committed to ensure this social responsibility and consequent to Government policy

and direction of controlling the price of cattle feed, board of Directors of the company

also give due priority to this aspect.

 Capacity - 650 TPD

 Initial investment - 32 Core

 Machinery - Imported from Holland, Italy

 Nature of production - Fully Automated and Computerized

 Technology - MMCP

COMPANY POLICY: To improve dairy farming in Kerala by providing quality

feeds and supplements at reasonable cost.

BOARD OF DIRECTORS
SL NAME DESIGNATION
No.
1 SHRI. K. S INDUSEKHARAN NAIR, CHAIRMAN, KFL
CHAIRMAN , KERALA FEEDS LTD
KALLETTUMKARA
THRISSUR- 680683
2 Dr. B SREEKUMAR, MANAGING MANAGING DIRECTOR
DIRECTOR
KERALA FEEDS LTD, KALLETTUMKARA
THRISSUR- 680683
3 SMT. MINI V. R, JIONT SECRETARY, OFFICIAL DIRECTOR
FINANCE DEPARTMENT, GOVT.
SECRETARIAT, TVM- 695001
4 SMT. KSHITI V DAS, DEPUTY OFFICIAL DIRECTOR
SECRETARY, ANIMAL HUSBANDRY
DEPARTMENT, GOVT. SECRETARIAT,
TVM- 695001
5 Dr. N N SASI, DIRECTOR, ANIMAL OFFICIAL DIRECTOR
HUSBANDARY DEPT, VIKAS BHAVAN,
TVM-33
6 SHRI, GEORGE KUTTY JACOB, DIRECTOR, OFFICIAL DIRECTOR
DAIRY DEVELOPMENT DEPT, TVM-
695004
7 DR.JOSE JAMES, MANAGING DIRECTOR, OFFICILA DIRECTOR
KERALA LIVE STOCK DEVELOPMENT
BOARD,TVM-695004
8 DR. A S BIJULAL, MANAGING DIRECTOR, OFFICIAL DIRECTOR
MEAT PRODUCTS OF INDIA LTD, EKM,
KERALA
9 SHRI. VINOD JOHN, MANAGING OFFICIAL DIRECTOR
DIRECTOR, KERALA STATE POLLUTARY

DEVELOPMENT CORPORATION
LTD,TVM- 695024
10 SHRI. JAMES P JACOB, SR. MANAGER OFFICIAL DIRETOR
(P&I&QC) KCMMF (MILMA) TVM- 695004
11 SHRI. C K CHANDRAN, CHEMBARA NON OFFICIAL
HOUSE, THRISSUR DIRECTOR

PRODUCTS

1. Kerala feeds rich

2. Kerala feeds elite

3. Keram in mineral mixture

4. KF malabari premium goat feed

 5. Densified fodder block

6. Calf starter

7. Kerabbit

8. KF midukki

9. KF nirav

BARANCHES OF KERALA FEEDS

 KERALA FEEDS LTD, KALLETTUMKARA

 KERALA FEEDS LTD, THODUPUZHA

 KERALA FEEDS LTD, CHEMANCHERY

 KERALA FEEDS LTD, MUTHALAMADA

 KERALA FEEDS LTD, KARUNAGAPILLY

 KERALA FEEDS LTD, KOOTHATTUKULAM

PLANT DESIGN AND TECHNOLOGY

The design of the plant is based on European Standards. The plant is fully

automated and controlled from the Control Room. The specialty of the plant is the

high levels of automation that has been incorporated and this automation has been

helpful in attaining the consistency in quality through the repeatability of the

formulation during the batching process. The technology is a tried, tested and proven

one. It has been successful in producing high quality pellet. This technology has been

marketed by us in the form of MMCP. In our effort to ensure the repeatability in the

composition of the batches and with an intention to prevent an aberration in the

quality due to the malfunction of an equipment an interlock arrangement is provided

wherein the machinery gets started before the machinery that follows.

PLANT SITE

The plant is situated in 27 acres of land and has sufficient scope for further expansion.

The site comprises of main plant buildings, Raw Material and Finished Product God

owns, silo, Molasses tanks, Administrative Office, Quality Control Laboratory,

Worker’s rest rooms, Canteen, Guest House and Quarters, Generator Room, Boiler

House and 2 Weigh Bridges. The Location Map will give you more precise details.
 REVIEW OF LITERATURE

Numerous studies have been conducted on Performance Management System

all over the world. The concept of Performance Management System has been

developed in many ways by many different researchers and practitioners

K. Chandhana and Dr. David T Easow (2015) in their article titled

‘Performance Appraisal Method Used in Top 10 IT Companies – 360 Degree

Feedback & Balanced Score Card: A Review’ has found that the both 360degree

feedback and balanced score card has its own loopholes, through these methods are

being used by top IT companies. The satisfaction levels of employees towards these

appraisal methods are very low and there is a need of a new appraisal method which

prevents these errors and has the advantages of these methods.

Rajput, et al, (2015) in their article titled ‘Performance Appraisal System’

explain that performance appraisal is conducted on an annual basis for existing

employees whereas for trainee and new recruits it is done on quarterly basis in many

organizations. Here author studies about the multidimensional nature of job where the

nurse manager gives rating to different job of nursing process. Thus, Employees who

have relatively less competition or lenient appraisers have higher appraisal than to

equally competent employee.

Rinku Sanjeev and Sanjeev Kumar Singh (2014) in their article titled

‘Employee Perception towards Performance Appraisal Program in Packaging

Industry’ suggest that the employees have both positive and negative perceptions

towards the Performance Appraisal Program in packaging industry. Employees’

perceptions also vary according to their demographic differences. The Performance

Appraisal Programs need transparency and well explained parameters for the

acceptance and satisfaction of employees as these impact the overall organizational

performance

Anbarasu Thangavelu and Dr. J Clement Sudhahar (2014) Performance

Management Challenges in IT Industry – An Overview’ conclude that the

performance management system for a large IT organization should be designed to

measure the past and potential performance of its employees and its own performance

in alignment with the states vision of the organization.

Jawad et al., (2014) ‘Impact of Technology on Performance of Employees (A

Case Study on Allied Bank Ltd, Pakistan)’found that the investment of organizations

in new technology has good impact on the performance of employees; it increases

their efficiency and productivity. It also makes the organizations more competitive

regarding customer services like in the case of Allied Bank, it become more

customers focused and services oriented.

Bethuel Sibongiseni Ngcamu (2013) ‘The Empirical Analysis of Performance

Management System: A Case Study of a University in South Africa’ concluded that

the Performance Management System (PMS) to be effectively implemented flexible

PMS needs to be designed in order to accommodate all employees at all levels. It

further recommends that in order for the PMS to improve effectiveness amongst

employees; well-crafted job descriptions in line with departmental strategic plans that

are aligned with the comprehensive organizational strategy; need to be brought to

light.
 Bedeian (1976)5 in his paper titled “Rater Characteristics Affecting the

Validity of Performance Appraisals” states that the task of developing effective

performance appraisal systems is one of the most preferred contemporary problems of

personnel administration. An abundance of literature is available detailing the

problems and difficulties inherent in subordinate appraisals. Numerous studies have

made suggestions for rating format and content changes. Some have even suggested

the elimination of appraisal. More recently, an identifiable body of knowledge which

seriously casts doubt on the use of supervisor’s judgment in evaluating employee

performance has begun to emerge. The purpose of this paper is to explore this

emerging body of knowledge and to examine its ramifications for performance

appraisal.

Wilsted and Taylor (1978)8 in their article titled, “Identifying Criteria for

Performance Appraisal Decisions” states that appraising employee performance has

long been regarded as an important part of the management function, for purposes of

salary administration and recognizing future management potential. More recently

performance appraisal has been recognized for its value as one of the several tools

available to organizations for employee motivation. Central to such programs as

'Management by Objectives,' for example, is the motivational value of participative

developed goals, clearly communicated and supported with a clear and accurate

perception by the subordinates regarding the criteria to be applied in appraising

his/her performance against those goals. Indeed, what is perceived by individuals is

often more important than 'reality' in influencing behavior. Selective filtration by

superiors and subordinates depends on the trust established, and serves to set

expectations for performance in the work environment. Individuals function on the

basis of perceptions. Accurate perceptions of the performance appraisal criteria by

those being evaluated are essential to the motivational objectives of appraisal. Yet,

even in the most formal rating programs, the rate’s perception of appraisal criteria

often varies widely from that actually employed.

Kleiman and Durham (1981)9 in their article titled, “Performance Appraisal,

Promotion and the Courts: A Critical Review”, reviewed twenty-three Title VII court

cases in order to determine the standards set by the courts in their assessment of

performance appraisal systems when used as the basis for promotion decisions. The

topics covered were adverse impact determination, the courts' adjudication strategy,

and the evidence needed to justify the performance appraisal procedures. Among the

major findings were the courts': (1) failure to adhere to the “applicant flow technique”

of adverse impact determination, (2) interest in assessing performance appraisal

systems regardless of their adverse impact, (3) ignorance regarding

 THEORETICAL FRAMEWORK

Meaning

Performance management can be regarded as a systematic process by which

the overall performance of an organization can be improved by improving the

performance of individuals within a team framework. It is a means for promoting

superior performance by communicating expectations, defining roles within a

required competence framework and establishing achievable benchmarks.

Definition

According to Armstrong and Baron (1998), Performance Management is both

a strategic and an integrated approach to delivering successful results in organizations

by improving the performance and developing the capabilities of teams and

individuals.

Characteristic of Performance Management System

1) Goal-setting and management: Goals management is an integral part of an effective

performance management system. Goals are important because they challenge the

employees and motivate them to perform better. Setting goals would mean providing

direction, priority and time frame for an employee to achieve the objectives. Based

on the business models, goals are set by the employees and approved by the managers

or set by the managers.

2) Performance Appraisals: Performance appraisals are the heart of the employee

performance management system. Feedback questionnaires are created for employees

based on their goals and competencies. Performance manager software automates the

appraisal cycle. The automated reminders and notifications in the software help

reduce the manual follow-up efforts of HR to make the employees and managers to

complete the feedback process.

3) 360 Degree Reviews: An ideal performance management system does not only

stimulate feedback from the manager but considers an overarching perspective of

everyone who is involved in the business. You can even make this creative by adding

emoticons in the rating section. With a 360-degree review mechanism, there is an

upward feature through which employees can give anonymous feedback to their

managers. The managers will then be able to know how capable they are in terms of

their leadership skills and team management. Through this, employees can identify

the perception gaps between the managers and the employees.

4) Employee engagement: Employee engagement is the hallmark of a successful

performance management system. Employee engagement is the process of creating

the best work conditions for an employee to keep him motivated. When employees

are engaged, they give their best performance every day. In a performance

management system, engaging an employee would mean, having a system where

employees are reviewed on an overall basis, they are recognized for good

performance, rewarded for their achievements and are appreciated for their talent.

5) Continuous Feedback Mechanism: From the beginning, we have been emphasizing

one thing that is very significant for a successful performance management system. It
is a feedback mechanism that is continuous. In a performance management system,

continuous feedback promotes healthy collaboration between all the employees and

the managers. The feedback that is provided is accurate and timely. This process is a

lot more convenient than those excel sheets that you send every year. You can even

have a facility in which you can send confidential comments to the employees by

having a mobile app.

6) Performance Analytics: In order to do effective performance management, it is

important that your performance management system has a thorough record of all the

performance reports of the employees. It is important that your PMS has proper

records of all the employees' profile reports and career history so that the managers

can come up with strategies for employee’s talent management. For a PMS, details

such as employees' skills, training programs, and attrition rate are important because it

helps managers understand the various trends in employee performance.

Importance of Performance Management System

1) Involve Employees in the Planning Stage: The mere making of plans alone will not

help you to run your business successfully. You must also focus on the appropriate

ways to get business tasks done. One way of doing this efficiently is to involve your

employees in the planning process. This will not only boost their morale and

confidence, but also help you avoid any communication gaps in the process.

Additionally, it will also help in providing them with a clear picture of what you

expect from them and what they need to accomplish.

2) Monitoring the Progress of Your Employees: Just as revision of business plans is

sometimes necessary for the success of your business, measuring the performance of

every employee is also important. This ensures that tasks are efficiently completed on

time and on or under budget. It also points out to you any shortcomings of either your

staff or business plans, and helps you to take the appropriate corrective actions.

3) Ensuring All Around Development of Employees: Performance management gives

you the tools to instill the desired qualities in your employees in order to get the job

done. Development is not limited to only individuals in your workplace, but also

addresses the performance of the team as a whole. All around employee development

not only ensures the personal and professional growth of your employees, but also the

expansion and improvement of your business.

4) Evaluation of Individual Performance: Evaluating and rating the performance of

your employees on an individual basis is essential. This gives them a clear picture of

where they presently stand, areas that they need to work on and what they are good at.

This way, they can focus more on their weaknesses and work to strengthen those

areas. You should make it company policy to issue performance reviews while

providing your employees with the feedback that they need to perform better at their

jobs. Remember – just as it is important to point out your employees’ weaknesses and

shortcomings, it is also essential to commend them on their strengths.

5) Rewarding Your Employees: Rewarding and appreciating your employees’ efforts

ensures that their level of their performance and consequently the performance of

your business is not compromised. It ensures optimum productivity, performance and

maximum profitability. Rewarding your staff for a job well done not only enhance

their performance but also serves as a tool to keep them motivated. Therefore,

performance management is an effective system that allows you to achieve the

financial goals of your small business.

Advantages of Performance Management System

1. Consistency: The selection of employees for promotion, transfer, or other action

should be more consistent. The right person — or a right person — should be matched

with the right job more often.

2. Motivation: All the organization’s employees (as well as supervisors and managers)

should be more highly motivated. Objective performance appraisal will identify those

who are outstanding, and management — applying promotion, transfer, and other

policies — will reward them. Every employee will realize that the organization

rewards achievement, and many will be encouraged to improve their performance.

3. Morale and retention: More highly motivated employees are likely to be more

loyal, as well, so that management will have better success retaining valuable

employees even as the nation’s workforce becomes more mobile. In addition, morale

should improve, making the workplace more pleasant, and output per hour worked

should increase, cutting labor costs.

4. Organizational impacts: Those who do research on human behavior stress that

individual employees will grow in maturity and responsibility if their efforts are

accurately judged and rewarded. The organization should see daily benefits —

including financial — from having more responsible people throughout. The

employer with an accurate evaluation system may truly have a basis for saying that he

has better employees than others in his field.

5. Training needs: While accurate evaluation is most often recommended for its role

in making “good employees better,” it has a valuable remedial use as well. Evaluation

can spot employees who need training — and not all of them will be recent hires. It is

usually assumed that when an employee has completed the normal training sequence,

he or she is trained. But that is not always the case.

6. Firing risks: Finally, employees who are sufficiently weak that they should be

dismissed can be spotted with more certainty under an evaluation system. Perhaps

more important, management may be more willing to dismiss an inadequate employee

if an objective evaluation system can be pointed to as identifying the inadequacy. The

employee and the organization should benefit from an early end to a bad situation.

Disadvantages of Performance Management System

1. Time Consuming: It is recommended that managers spend about an hour per

employee writing performance appraisals. I’ve known managers who had to write

performance appraisals on 100 plus employees which would take weeks to complete.

And, depending on the number of people being evaluated, the process can take hours

to write the department’s performance appraisals – but also hours meeting with staff

to review the written material. A very time-consuming and tedious task.

2. Discouragement: The performance appraisal process needs to be one of

encouragement, positive reinforcement and a celebration of a year’s worth of

accomplishments. If the performance appraisal process is not a pleasant experience, it

has the potential to discourage staff. It is critical that managers document not only

issues that need to be corrected, but also the positive things an employee does

throughout the course of a year, and both good and bad should be discussed during a

PA. For instance, encourage employees by sharing observations of successful project

completion, positive teamwork or professional developmental milestones.

3. Inconsistent Message: We all struggle to remember things when we get busy. It is

those times when we remember the bad and forget to acknowledge the great things

employees do every day that sends an inconsistent message to employees. Make a

habit of documenting employee observations (both positive and negative) when it is

fresh. Keep these notes as a source of information as you share feedback with

employees. This document of observations will provide you with the necessary

feedback to review with the employee at performance appraisal time – to both correct

behaviors and celebrate success. Keep notes and accurate records of employee

behavior, with the goal of sending a consistent message to the employee.

4. Biases: It is difficult to keep biases out of the performance appraisal process. It

requires a very structured, objective process, as well as a mature manager to remain

unbiased. Be aware of this and take the time to learn about common rater (bias)

errors. Performance appraisal rater errors are common for managers who assess

performance. Learn to understand these natural biases so you can ensure your

employees receive fair evaluations.

 RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It

gives an idea about various steps adopted by the research in a systematic manner with

an objective to determine various manners.

POPULATION CHARACTERISTICS

Sample was taken from employees who are working in Kerala Feeds,

Kalettumkara.

SAMPLING PROCEDURES

Sampling may enable more accurate measurement of sample size from the

population or universe.

Simple random is used in this study. In simple random sampling, every

individual in the target population has an equal chance of being part of the sample.

A sampling procedure must reflect the unit of the analysis. In the study 50

samples were collected using questionnaire from various employees in the company.

SAMPLE SIZE

Sample is consisting of 50 respondents.

TYPE OF DATA

When working on the methods of data collection we are to understand that

there are two types of data namely.

1. Primary data

2. Secondary data

PRIMARY DATA

Primary data are these which are collected a fresh and for the first time. They

are original data that has been collected specially for the purpose in mind. Primary

data has not been published by and is more reliable, authentic and objective. Primary

data has not been changed or altered by human beings; therefore its validity is greater

than secondary data. The people who gathered primary data may be an authorized

organization, investigator, enumerator or they may be just someone with a clipboard.

Primary data is collected through the questionnaire and interview methods

SECONDARY DATA

Secondary data is the data that has been already collected by and readily

available from other sources. When we use statistical method with primary data from

another purpose for our purpose. We refer to it as secondary data. Secondary data is

data that is being reused. Such data are cheaper and more quickly obtainable than the

primary data.

These secondary data may be obtained from many sources. Including literature,

industry surveys, compilations from computerized debates and information systems

and computerized or mathematical models of environmental processes.

TOOLS FOR DATA COLLECTION

There are different tools for data collection such as distributing questionnaire,

conducting interviews and by observations. Questionnaire as well as interview

techniques for responses from the respondents.

TOOLS AND METHODS FOR ANALYSIS

In this study simple percentage method is used for analyzing the data.
 1) Does your organization operate formal performance management system

(PMS)?

Opinion Number of Percentage of

respondents respondents
Yes 35 70

No 0 0

To some extend 10 20

Can’t say 5 10

Total 50 100

Figure: 5.1

80
70
60
50
40
30
20
10
0
Yes No To some extend Can’t say

Interpretation

Figure: 5.1 shows that 70 % of respondents agreed that organization operate formal

performance management system, 20% of them said that to some extent and 10% of

them opined can’t say about it. So it can be concluded that majority of respondents

said that organization operates formal performance management system.

2) The performance management system is clearly defined in the organization?

Opinion Number of Percentage of

respondents respondents
Strongly agree 20 40

Agree 15 30

Neutral 10 20

Disagree 5 10

Total 50 100

Figure: 5.2

40
35
30
25
20
15
10
5
0
Strongly Agree Neutral Disagree
agree

Interpretation

Figure: 5.2 shows that 40% of the respondents strongly agreed that performance

management system are clearly defined in their organization, 30% of them agreed the

fact, 20% of them have neutral opinion and 10% of them disagree with the same. So it

can be concluded that most of respondents strongly agreed that the performance

management system are clearly defined in their organization.

3) What are the techniques that are used in your organization for assessing

performance?

Opinion Number of Percentage of

respondents respondents
Observation 10 20

Assessment 10 20

Checklist 25 50

Development center 5 10

Total 50 100

Figure: 5.3

60

50

40

30

20

10

0
Observation Assessment Checklist Development
center

Interpretation

Figure: 5.3 shows that 20% of respondents opted observation, 20% of them selected

assessment, 50% of them opted for checklist and the remaining 10% selected for

development center. So it can be concluded that checklist is the most used techniques

in their organization for assessing performance.

4) Do you believe that the current performance management system is improving

performance?

Opinion Number of Percentage of

respondents respondents
Yes 10 20

No 10 20

To some extent 5 10

Can’t say 25 50

Total 50 100

Figure: 5.4

50
40
30
20
10
0
Yes No To some Can’t say
extent

Interpretation

Figure: 5.4 shows that 20% of them agree that their current performance management

system improved their performance, but 20% of them don’t agree to the fact, 10% of

them said it to some extent and 50% of them said they can’t say about the fact. So it

can be concluded that most of the respondents said that the current performance

management system improved their performance.

5) How would you think performance management can be improved in the following

individual factor?

Opinion Number of Percentage of

respondents respondents
Qualification 25 50

Experience 15 30

Skills 6 12

Personality 4 8

Total 50 100

Figure: 5.5

60
50
40
30
20
10
0
Qualification Experience Skills Personality

Interpretation

Figure: 5.5 shows that 50% of respondents opted that qualification is the individual

factor improved by the performance management, 30% of respondents opined it

experience, 12% of them opined skills, 8% of respondents opined personality. So it

can be concluded that most of them opined qualification is the individual factor

improved by the performance management system.

6) What are the barriers to effective performance?

Opinion Number of Percentage of

respondents respondents
Development 12 24
intervention
Training 18 36

Lack of resources 10 20

Lack of employee 10 20
dedication
Total 50 100

Figure: 5.6

40
35
30
25
20
15
10
5
0
Development Training Lack of Lack of
intervention resources employee
dedication

Interpretation

Figure: 5.6 shows that 24% of the respondents opted development intervention are the

barriers to effective performance, 36% of respondents voted for training, 20% of them

voted for lack of resources and 20% of the voted for lack of employee dedication.

Hence from the table it clear that training is the most effective barriers to improving

performance.
7) The PMS implemented in your organization create a participative environment.

Opinion Number of Percentage of

respondents respondents
Strongly agree 15 30

Agree 7 14

Neutral 22 44

Disagree 6 12

Total 50 100

Figure: 5.7

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree

Interpretation

From figure: 5.7 it is clear that 30% of the respondents strongly agreed to the topic

PMS implemented in their organization create a participative environment, 14% of the

respondents agreed, 44% of respondents have a neutral response to the statement and

the remaining 12% disagreed. So it can be concluded that most of the respondents

have a neutral response that PMS implemented in their organization create a

participative environment.
8) Do you feel your job responsibilities are clearly defined?

Opinion Number of Percentage of

respondents respondents
Strongly agree 34 68

Agree 10 20

Neutral 4 8

Disagree 2 4

Total 50 100

Figure: 5.8

70
60
50
40
30
20
10
0
Strongly Agree Neutral Disagree
agree

Interpretation

Figure: 5.8 shows that 68% of respondents strongly agreed that their job

responsibilities are clearly defined, 20% of respondents agree with the same, 8% of

them have a neutral opinion about the same, 4% of the employees are dissatisfied with

the same. So it can be concluded that most of employees strongly agreed that their job

responsibilities are clearly defined.

9) The current performance management system works well and does not need

change.

Opinion Number of Percentage of

respondents respondents
Strongly agree 20 40

Agree 15 30

Neutral 10 20

Disagree 5 10

Total 50 100

Figure: 5.9

Strongly
agree
Agree

Neutral

Disagree

Interpretation

Figure: 5.9 shows that 40% of the respondents strongly agree that the current

performance management system works well and does not need change, 30% of them

agreed of the fact, 13% of them have neutral opinion, 10% of them disagreed with the

same. So it can be concluded that most of them strongly agreed that the current

performance management system works well and does not need change.
10) The following processes a part of your performance management system.

Opinion Number of Percentage of

respondents respondents
Coaching 10 20

Training and 25 50
development
Career management 6 12

Succession planning 9 18

Total 50 100

Figure: 5.10

60
50
40
30
20
10
0
Coaching Training and Career Succession
development management planning

Interpretation

From the figure: 5.10 it is clear that 20% of respondents said that coaching is a part of

their performance management system, 50% of them said training and development,

12% of them said career management and remaining 18% of them said succession

planning. So it can be concluded that training and development processes is the major

part of their performance management system.

11) Who sets the performance goals / requirements for individuals?

Opinion Number of Percentage of

respondents respondents
Senior managers 14 28

Line managers 18 36

HR Professional 7 14

Others 11 22

Total 50 100

Figure: 5.11

40
35
30
25
20
15
10
5
0
Senior Line HR Others
managers managers Professional

Interpretation

Figure: 5.11 shows that 28% of respondents opted that senior managers set the

performance goals / requirements for individuals, 36% of respondents said line

managers, 14% of them said HR managers and 22% of them said others. So it can be

concluded that line managers mostly set the performance goals / requirements for

individuals.
12) Why do you have performance management system in your organization?

Opinion Number of Percentage of

respondents respondents
Retention strategy 25 50

Reward allocation 15 30
Motivational strategy 6 12

To clarify the employee’s 4 8

job requirement
Total 50 100

Figure: 5.12

60
50
40
30
20
10
0
Retention Reward Motivational To clarify the
strategy allocation strategy employee’s job
requirement

Interpretation

Figure: 5.12 shows that 50% of respondents opted retention strategy is the reason for

performance management system in their organization, 30% of them selected reward

strategy, 12% of them opted motivational strategy and remaining 8% selected to

clarify the employees job requirement. So it can be concluded that retention strategy

is the reason for performance management system in their organization

.

13) What according to you is the most challenging aspect of performance

management?

Opinion Number of Percentage of

respondents respondents
Creating a rating 23 46
instruments
Lack of competence 7 14
Errors in rating and 10 20
evaluation
Resistance 10 20
Total 50 100

Figure: 5.13

Creating a rating
instruments
Lack of competence

Errors in rating and

evaluation
Resistance

Interpretation

Figure: 5.13 shows that 46% of respondents opted creating a rating instruments is the

most challenging aspects of their performance management, 14% of them selected

lack of competence, 20% of them opted errors in rating and evaluation and 20% of

them selected resistance. So it can be concluded that most of them opted creating a

rating instruments is the most challenging aspect of their performance management.

14) Does performance management distract people from their important activities?

Opinion Number of Percentage of

respondents respondents
Yes 2 4

No 18 36

To some extent 5 10

Can’t say 25 50

Total 50 100

Figure: 5.14

50
40
30
20
10
0
Yes No To some Can’t say
extent

Interpretation

Figure: 5.14 shows that 4% of respondents agreed that performance management

system distract people from their important activities, 36% of them doesn’t agree to

the fact, 10% of them said to some extent and remaining 50 % said they can’t say

about it. So it can be concluded that most of them said that they can’t say that the

performance management system distract people from their important activities.

15) How many meetings are scheduled in a year to discuss employee performance?

Opinion Number of Percentage of

respondents respondents
1 2 4

2 4 8

3 36 72

4 or more 8 16

Total 50 100

Figure: 5.15

80

60

40

20

0
1 2 3 4 or more

Interpretation

Figure: 5.15 shows that 4% of respondents said that meeting are held only once a year

to discuss the employees performance, 8% of them said twice in a year, 72% of them

said three times and 16% of them said 4 or more times. So it can be concluded that

most of the respondents said that the meeting are held three times a year to discuss the

employees performance.
16) The following people receive training in performance management techniques?

Opinion Number of Percentage of

respondents respondents
All employees 25 50

Head of the department 10 20

HR Team 10 20

Other managers 5 10

Total 50 100

Figure: 5.16

60
50
40
30
20
10
0
All employees Head of the HR Team Other managers
department

Interpretation

Figure: 5.16 shows that 50% of the employees said all the employees received

training in performance management techniques, 20% of them said head of the

department, 20% of them said HR team and remaining 10% of them said other

managers. So it can be concluded that most of them said all the employees received

training in performance management techniques.

17) What in your opinion are the causes for failure of performance management

system?

Opinion Number of Percentage of

respondents respondents
Lack of role clarity 12 24

Intervals of appraisal 3 6

Lack of communication 15 40
by supervisor
Others 20 30

Total 50 100

Figure: 5.17

Lack of role clarity

Intervals of
appraisal
Lack of
communication by
supervisor
Others

Interpretation

Figure: 5.17 it is clear that 24% of the respondents opted lack of role clarity is the

causes for failure of performance management system, 6% of them said intervals of

appraisal, 40% of them said lack of communication by supervisor and 30% of them

said others. So it can be concluded that lack of communication by supervisor is the

causes for failure of performance management system.

18) What do you do when you identify poor performers post your review session?

Opinion Number of Percentage of

respondents respondents
Training 10 20

Improvement coaching 10 20

Relocation 5 10

Discharge 25 50
Total 50 100

Figure: 5.18

60
50
40
30
20
10
0
Training Improvement Relocation Discharge
coaching

Interpretation

Figure: 5.18 shows that 20% of respondents said training method is used to improve

the post of poor performers during their review session, 20% of them said improving

coaching, 10% of them said relocation and remaining 50% of them said discharge. So

it can be concluded that discharge process is used to improve the post of poor

performers during their review session.

19) Your opinion on employee self-performance appraisal?

Opinion Number of Percentage of

respondents respondents
Highly beneficial 25 50

Beneficial to a certain 15 30
degree
Tends to be inflated 6 12

Not beneficial at all 4 8

Total 50 100

Figure: 5.19

50
45
40
35
30
25
20
15
10
5
0
Highly Beneficial to a Tends to be Not beneficial
beneficial certain degree inflated at all

Interpretation

Figure: 5.19 shows that 50% of respondents said employee self-performance appraisal

is highly beneficial, 30% of them said beneficial to a certain degree, 12% of them said

tends to be inflated, 8% of them said not beneficial at all. So it can be concluded that

most of them said employee self-performance appraisal is highly beneficial.

20) What strategies of your organization have been linked to the performance

management system to make it more effective?

Opinion Number of Percentage of

respondents respondents
Reward strategy 34 68

Culture strategy 10 20
Team work strategy 4 8

Leadership strategy 2 4
Total 50 100

Figure: 5.20

100

50

0
Reward Culture Team work Leadership
strategy strategy strategy strategy

Interpretation

Figure: 5.20 shows that 68% of respondents opted reward strategy is linked to

performance management system in order to make it more effective in their

organization, 20% of them opted culture strategy, 8% of them selected team work

strategy and remaining 4% of them opted leadership strategy. So it can be concluded

that most of them opted reward strategy is linked to performance management system

in order to make it more effective in their organization.

 FINDINGS

1) Majority of respondents said that organization operates formal performance

management system.

2) Most of the respondents strongly agreed that the performance management

system is clearly defined in their organization.

3) Most of employees selected checklist is the most used techniques in their

organization for assessing performance.

4) Most of the respondents said that the current performance management system

improved their performance.

5) Most of them opined qualification is the individual factor improved by the

performance management system.

6) Most of them said training is the most effective barriers to improving

performance.

7) Most of the respondents have a neutral response that PMS implemented in

their organization create a participative environment.

8) Most of employees strongly agreed that their job responsibilities are clearly

defined.

9) Most of them strongly agreed that the current performance management

system works well and does not need change.

10) Most of respondents said training and development processes is the major part

of their performance management system.

11) Most of them opted line managers mostly set the performance goals /

requirements for individuals

 .

12) Most of respondents selected retention strategy is the reason for performance

management system in their organization.

13) Most of them opted creating a rating instruments is the most challenging

aspect of their performance management.

14) Most of them said that they can’t say that the performance management

system distract people from their important activities.

15) Most of employees said that the meetings are held three times a year to discuss

the employee’s performance.

16) Most of the respondents said that all the employees received training in

performance management techniques.

17) Most of respondent’s opted lack of communication by supervisor is the cause

for failure of performance management system.

18) Most of them opined discharge process is used to improve the post of poor

performers during their review session.

19) Most of them said employee self-performance appraisal is highly beneficial.

20) Most of them opted reward strategy is linked to performance management

system in order to make it more effective in their organization.

 SUGGESTIONS

 HR professionals of the organization should apply strategic and integrative

approach to performance management.

 HR professionals should communicate well and involve the employees during

the performance management reviews. This will create a climate in which a

continuing dialogue between mangers and members of their teams take place

to define expectation and share information, mission, values and objectives.

 Employees do not have enough knowledge about the performance

management system and performance review techniques that are used in

assessing their performance.

 After performance reviews, the employees should be rewarded with incentives

that will be commensurate with their efforts. These will a long way in boosting

the morale of the employees.

 CONCLUSION
It is concluded from the survey that all respondents are aware about the

current performance management system and does not need to change. Current

performance management system works well and that improve the performance of

employees.

This study has shown that performance management is a comprehensive

approach to planning and sustaining improvements in the performance of employees

so as to meet the standards. Most of the HR professionals are not feel comfortable

with conducting performance review. So create a trust in them about performance

review techniques and maintaining good relationship with employees for improving

their performance and accomplishing goals and objectives of the organization.