ALL INDIA MANAGEMENT ASSOCIATION, LODHI ROAD, NEW DELHI THESIS REPORT ON PERFORMANCE MANAGEMENT SYSTEM AT INNOVATIVE TECH

PACK LTD

SUBMITTED TO: PROF. R.KSINGH

EXTERNAL GUIDE: MR. PRATEEK KULSHRESHTHA

SUBMITTED BY MOHD FAISAL JANUARY, 2008 REGISTRATION NO. 420810032

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ABSTRACT Performance management (PM) 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 as referenced on this page is a broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in applications methods) for managing behavior and results, two critical elements of what is known as performance. There are many ways and methods to measure employee performance but one of the most effective ways is using automated tools. The following are the advantages for using an automated performance management systems:

Automation of Processes:Organisations can improve their HR Reporting and analytics with the automation of their performance measurement process. It also saves time and money.

Goal clarity and alignment: Everyone in the organisation is clearly aware about the common organizational goals and objectives. Once the goals are clearly defined, everyone works for the growth of the organisation.

Remote Workers (out of office operations):Technological advancements have lead to the growth of alternate working arrangements. With an EPM, employees working out of offices can coordinate their efforts with their managers.

Flexibility and customisation: The employee performance management solutions can be customised according to the needs of the organisation. Competency management: Every organisation has some competencies around which their business operations revolve. An efficient and effective employee performance measurement solution ensures that the competencies are managed well.

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Talent

management

(retention

and

growth):

Employee

performance

management is an important factor for Talent Management. It helps identify known competencies, develop succession plans, notice talent gaps and establish compensation scales based on employee assessment.

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CERTIFICATE FROM GUIDE

This is to certify that the thesis titled Assessing Training Needs - A Case of Kesar Impex (Construction Wing) prepared by MOHD FAISAL for the award of degree in Post Graduate Diploma in Business Administration from All India Institute of Management Association under my supervision & guidance. It is an original piece of work based on primary as well as secondary data. This work is satisfactory and complete in every respect. I wish him all the success for his future endeavor. Thanking you

Yours Sincerely

K.C.JHA

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THESIS TOPIC APPROVAL LETTER

From: Thesis <thesis@iipm.edu> Date: Fri, Dec 18, 2009 at 5:28 PM Subject: Thesis Topic Approval (H) SS 08-10 To: anujvohra2000@gmail.com Dear Anuj Vohra, This is to inform that your thesis proposal on Performance Management System at Fly Mobile, to be conducted under the guidance of Mr. Manoj K Nair is hereby approved and the registration number is DS/08/10-H-102 Make it a comprehensive thesis by ensuring that all the objectives as stated by you in your synopsis are met using appropriate research design; a thesis should aim at adding value to the existing knowledge base. You are required to correspond with your internal guide Prof. Dipti Sharma at dipti.sharma@iipm.edu Ph.-0124-3917413 by sending at least four response sheets (attached along with this mail) at regular intervals before 15th February 2010 (the last date for thesis submission). NB: 1) A thesis would be rejected if there is any variation in the topic/title from the one approved and registered with us. 2) Students are required to prepare a handwritten 5- 7 pages summary of the thesis at the time of Viva.

Regards, Prof .Sumanta Sharma Dean (Projects) IIPM Sumanta.sharma@iipm.edu Phone: +91 0124 3917401 (D) +91 0124 3917415 (Board)

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THESIS SYNOPSIS

STUDENT DETAILS Name: Section: Phone No: Email Address: Mohd Faisal HR-4, 2008-10(SS) 9711017506,9711185610 faisalmohd007@gmail.com

Specialization Area: Human Resource THESIS TOPIC: Performance management at M/s Innovative Tech Pack Ltd INTRODUCTIONPerformance Management System Performance management system is the process of evaluating the performance of the employees in terms of requirements of the job. Performance management system (PMS) is the heart of any people management " process in organization. Organizations exist to perform. If people do not perform, organizations don't survive. If people perform at their peak level, organization can compete and create waves. Performance management systems if properly designed and implemented can change the course of growth and pace of impact of organizations. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management. RESEARCH OBJECTIVES Identify the performance management systems used in M/s Innovative

Tech Pack Ltd Main KRAs and KPIs used in evaluating the employees of the M/s

Innovative Teck Pack Ltd Suggestions and improvements to be implemented in the appraisal

systems.

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Understanding of the whole process of appraisal and impact of the

same on the employees. Techniques used in appraisal and understanding the linkage of

performance with promotion or merit awards. Learning the Performance management system of Executives and

Manager level employees. HYPOTHESIS: To understand the performance management system in Innovative Tech Pack Ltd RESEARCH METHODOLOGY: The Research will primarily include primary data from employees who are working in the organization. Secondary Data: Secondary data will involve data from various publications to understand the appraisal systems. Primary Data: Primary data from Innovative Tech Pack Ltd. and the appraisals used Tool Used: Performance management appraisal forms, KRAs sheets. Sample Size: Over 100 respondents from organization. Target Audience: Employees in the organization. SCOPE OF WORK The main scope of employee performance appraisal are:1. To enable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations 2. To determine increments rewards, and provide a reliable index for promotions and transfers to positions of greater responsibility. 3. To maintain individual and group development by informing the employee of his performance standard.

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4. To suggest ways of improving the employees performance when he is not found to be up to the mark during the review period. 5. To identify training and development needs and to evaluate effectiveness of training and development programmes. 6. To plan career development, human resource planning based on potentialities.

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JUSTIFICATION OF CHOOSING THE TOPIC: In Todays world, most of the organizations are finding it difficult to retain good talent. HR has to play a major role in ensuring that employees are faithful to the organization. Thus, performance management system is an important tool which is a major factor in ensuring that employees are faithful to the organization. Performance appraisal is one such method that allows for the optimization of labor. In a broad sense , it is a formal structure that allows for the continued measuring and evaluation of individual behavior and performance, whilst influencing an employees job related attributes through such factors as increased job satisfaction and recognition (with the use of promotional aids such as better equipment, duties, and wages). The purpose of any such system, is not only to measure the performance of human resources but also to find areas of skill deficit for further development (through employee feedback), identify excess potential that could be better utilized, and communicate objectives more accurately to workers . By doing so, businesses move one step closer to the achievement of their set goals and objectives. Thus, HR has to play a crucial role in ensuring that employees remain engaged at all times. For this propose, HR professionals need to be aware of the Best practices in India and what makes an organization a great place to work. DETAILS OF EXTERNAL GUIDE: Mr Manoj K Nair- Asst.Manager HR (Fly Mobile)B.Com, Diploma in law & Taxes, CCA Certified Charted AccountantHandling Payroll & Personnel Management in Fly Mobile Mobile No-9311304555 SUMMER TRAINING DETAILSTopic of Training- HR Initiatives I did my summer training in Fly Mobile under the guidance of Mr Roshan Kumar (Manager-HR). During this period I worked on multiple assignmentsa. Setting up of process for initiating new initiatives for employee recognition like New Joinees Introduction on Notice Board, Did you Know Management knowledge series. b. Setting up of KRAs for HR department. c. Part of Campus recruitment team for Sales programme selection.

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CONTENTS ABSTRACT CERTIFICATE FROM GUIDE THESIS TOPIC APPROVAL LETTER THESIS SYNOPSIS CHAPTER-1 INTRODUCTION CHAPTER-2 COMPANY PROFILE CHAPTER-3 OBJECTIVE, SCOPE, SIGNIFICANCE, METHODOLOGY AND LIMITATION OF THE STUDY CHAPTER-4 PERFORMANCE APPRAISAL AT FLY CHAPTER-5 DATA ANALYSIS & INTERPRETATION CHAPTER-6 RECOMMENDATIONS CHAPTER-7 CONCLUSION BIBLIOGRAPHY ANNEXURE - QUESTIONNAIRE

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CHAPTER-1 INTRODUCTION Fly is a European mobile phone company founded in 2003 with offices across countries including UK, France, Germany, India, Russia, Ukraine and Nigeria. Fly is already a leading mobile phone brand in Eastern Europe and is also developing fast in other parts of the world. Fly phones were introduced in India in 2005. The highly differentiated range of mid & high end phones have been received with great enthusiasm by users as well as the trade. Fly India is rapidly expanding in India and now has widespread sales and service presence across the country. The Brand is positioned as a challenger brand with a strong commitment to differentiation. It is in sync with todays youth WHY NOT ATTITUDE Today HRM is an evolving branch of Management. It looks after the HR planning, Job Design, Job analysis, Training and development compensation system, motivation, safety, Industry Relatives etc. Organizations are no longer just looking at performance appraisal as a onetime activity. It is looking at performance appraisal as an everyday activity and looking at performance management as a whole. Since organization exist to achieve goals, the degree of success that individual employees have in reaching their individuals goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This led us to the topic of performance appraisal. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individuals

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performance. It helps to align the individual performances with the organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people.Performance appraisals of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement. Among these performance Appraisal are the measure of the effectiveness of hiring the employees Appraisal are like Balance- sheets- a snapshots of past performance, but they need to be given the shape of a profit and loss statement a moving picture. AIM There are basically many purposes to which performance appraisal First, it can be used as a basis for reward allocations. Decisions as who will get salary increases, promotions, and other rewards are determined by their performance evaluation. Second, these appraisals can be used for identifying areas where development efforts are needed. Management needs to spot those individuals who have specific skill or knowledge deficiencies. The performance appraisal is a major tool for identifying these deficiencies. Finally the performance appraisal can be used as a criterion against which selection devices and development programs are validated. It is one thing to

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say, for example, that our selection process is successful in differentiating satisfactory performers from unsatisfactory performers. THE APPRAISAL PROCESS Established Performance Standards Communicate Performance expectations to employee Measure actual performance Compare actual performance with standards Discuss the appraisal with the employees If necessary, initiate the corrective action The appraisal process begins with the establishment of performance standards. These should have evolved out of job analysis and the job description discussed under human resources planning. These performance standards should also be clear and objective enough to be understood and measured. Communication only takes place when the transference of information has taken place and has been received and understood by the subordinate. Therefore feedback is necessary from the subordinate to the manager. Satisfactory feedback insures that the information communicated by the manger has been received and understood in the way it was intended. The third step is to determine what actual performance is, it is necessary to acquire information about it. We should be concerned with how we measure and what we measure.

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What we measure is probably more critical to the evaluation process than how we measure, since the selection of the wrong criteria can result in serious dysfunctional consequences. And that we measure determines, to a great extent, what people in the organization will attempt to excel at. One of the most challenging tasks faced by mangers is to present an accurate appraisal to the subordinate and then have the subordinate accept the appraisal in a constructive manner. Appraising performance touches on one of the most emotionally charged activities the assessment of another individuals contribution and ability. The impression that subordinates receive about their assessment has a strong impact on their self esteem and very important, on their subsequent performance. The final step in the appraisal is the initiation of corrective action when necessary. Corrective action can be of two types. One is immediate and deals predominantly with symptoms. The other is basic and that look out for causes. Immediate action corrects something right now and gets things back on track. Supervisors have conducted performance appraisals for years. Employees have attended training sessions for years. Organization members have worked long, hard hours for centuries. Processes, such as planning, budgeting, sales and billings have been carried out for years in organizations. But all too often, these activities are done mostly for the sake of doing them, not for contributing directly to the preferred results of the organization. Performance management reminds us that being busy is not the same as producing results. It reminds us that training, strong commitment and lots of hard work alone are not results. The major contribution of performance management is its focus on achieving results -- useful products and services for customers inside and outside the organization. Performance management redirects our efforts away from busyness toward effectiveness. Recently, organizations have been faced with challenges like never before. Increasing competition from businesses across the world has meant that all businesses must be much more careful about the choice of strategies to remain competitive. Everyone (and everything) in the organization must be doing what they're supposed to be doing to ensure strategies are implemented effectively. PGP/SS/2008-10 DS/08/10-H-102

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This situation has put more focus on effectiveness, that systems and processes in the organization be applied in the right way to the right things: to achieve results. All of the results across the organization must continue to be aligned to achieve the overall results desired by the organization for it to survive and thrive. Only then it be said that the organization and its various parts are really performing.

THE HISTORY OF PERFORMANCE APPRAISAL Its roots in the early 20th century can be traced to Taylors pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates form the time of the second World War- not more than 60 years ago. Yet is a broader sense, the practice of appraisal is very ancient art. In the scale of things historical, it might well lay claim to being the worlds second oldest profession.

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Appraisal is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and randomly. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgement made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification, i.e. appraisal was used to decide whether the salary or wage of an individual employee was justified or not. The process was firmly linked to material outcomes. If an employees performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes, but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began form that time.

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Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills developments. In many organizations- but not all- appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organization needs to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal the assignment and justification of rewards and penalties- is a very uncertain and contentious matter. The performance appraisal process has become the heart of the human resource management system in the organisations. Performance appraisal defines and measures the performance of the employees and the organisation as a whole. It is a tool for accessing the performance of the organisation. The important issues and points concerning performance appraisal in the present world are: The focus of the performance appraisals is turning towards career

development relying on the dialogues and discussions with the superiors. Performance measuring, rating and review systems have become more detailed, structured and person specific than before. OBJECTIVES OF PERFORMANCE APPRAISAL Performance Appraisal process show that organization undertake performance appraisal to meet certain objectives which are in the form of salary increase,

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promotion, identifying training and development needs and putting pressure on the employees for better performance.

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The objectives are explained in the following points: SALARY INCREASE: - Performance appraisal plays a major role in making decision about salary increase. The increment in the salary depends on how the employee performs the job, and there is a continuous evaluation of his performance formally or informally. In small organizations as there is direct contract between the superiors and the subordinate, performance appraisal can be an informal process, but in large organizations where direct contract hardly exists the performance appraisal process is formal. PROMOTION: - Performance appraisal discloses how an employee is working in his present job and what his strong and weak points are. In the light of these, it can be decided whether he can be promoted to the next higher position and what additional training will be necessary for him. Similarly, performance appraisal can be used for transfer, demotion, and discharge of an employee. TRAINING AND DEVELOPMENT: - Performance appraisal tries to identify the perfection of an employee on his present job. This information can be used for devising Training & Development programme appropriate for overcoming weakness of the employee. PRESSURE ON EMPLOYEES: - Performance appraisal puts some sort of pressure on employees for the better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal, they tend to have positive and acceptable behavior in this respect. Thus appraisal can work automatically as a control device. SATISFACTION THROUGH FEEDBACK: - Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. The knowledge of how his efforts are contributing to the attainment of organizational objectives provides him satisfaction, that his work is meaningful. Through Feedback he comes to known his shortcomings and then he tries to overcome them and contribute more to the achievement of goals set by the organizations.

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FLOWCHART OF PROCESS OF PERFORMANCE APPRAISAL 7 Setting Performance Standards

Taking Corrective Actions

Communicating Standards

Discussing Results

Measuring Performance

Comparing With Standards

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PROCESS OF PERFORMANCE 1. ESTABLISHING PERFORMANCE STANDARDS: The first step in the process of performance appraisal is the establishment of certain standards, which will serve as the basis of the evaluation. These standards should be clear and in writing. It should be discussed with the supervisors to ensure that all the relevant factors have been included. If work performance cannot be measured then the personal characteristics, which contributed to employees performance must be determined. These characteristics include work quality, honesty & reliability, cooperation & teamwork, job knowledge, initiative, leadership, attendance, sense of responsibility, health and physical conditions etc. The standards should be mentioned in the appraisal form & the appraisal form should be carefully designed and printed. In addition who is to do appraisal and how frequently appraisal is to be done should also be decided. 2. COMMUNICATING THE STANDARDS: The performance standards specified are communicated and explained to the employees so that they come to know what is expected of them. The standard

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should be conveyed to the evaluators also. The reactions of the employees to the standard should be obtained and if necessary the standard should be revised in the light of the feedback received form the employees and the evaluators. 3. MEASURING PERFORMANCE: a.) The performance standards are specified and accepted. b.) Measurement of the actual performance. This requires choosing the right technique of management, identifying the internal and external factors influencing performance and collecting information on results achieved. Personal observations, written reports and face-to-face contacts are means of collecting data on performance. 4. COMPARING THE ACTUAL WITH THE RESULTS: Actual performance is compared with the predetermined performance standards. Such comparisons reveal the deviations, which may be positive or negative. Positive deviations occur when the actual performance exceeds the standards if actual performance is less than the standards and if actual performance is less than the standards then it is negative deviation. 5. DISCUSSING THE APPRAISAL: The results of the appraisal are communicated to and discussed with the employees. Along with the deviations the reasons behind them are also expressed and discussed. Such discussion will enable the employees to know their weakness and strengths and thus the employees will be motivated to improve him/her. 6. TAKING CORRECTIVE ACTIONS: - Through mutual discussions with employees, the steps required to improve performance are identified and initiated. Training, counseling etc. are examples of corrective actions that help to improve performance. the

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PREREQUISITE OF SUCCESSFUL PERFORMANCE APPRAISAL The essentials of an effective performance system are as follows: 1. Documentation: It means continuous noting and

documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. 2. Standards / Goals: The standards set should be clear, easy to

understand, achievable, motivating, time bound and measurable. 3. Practical and simple format: The appraisal format should

be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. 4. Evaluation technique: An appropriate evaluation technique

should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. 5. Communication: Communication is an indispensable part of

the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process. 6. Feedback: The purpose of the feedback should be

developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance. 7. Personal Bias: Interpersonal relationships can influence the

evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.

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An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful. The main Performance Appraisal challenges involved in the performance appraisal process are as followsDETERMINING THE EVALUATION CRITERIA Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable term. They should have the experience and the necessary training to carry out the appraisal process objectively. Prerequisites of Performance AppraisalThe essentials of an effective performance system are as follows: Documentation: ratings. Standards / Goals: The standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. Practical and simple format: The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. Evaluation technique: An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. Communication: Communication is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open It means continuous noting and documenting the

performance. It also helps the evaluators to give a proof and the basis of their

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communication system motivates the employees to actively participate in the appraisal process. Feedback: The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance. Personal Bias: Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively. CHALLENGES OF PERFORMANCE APPRAISALS It should be noted that performance appraisal is a simple ye complicated process because it involves human beings. The challenges are many fold Determining the evaluation criteria: Identification of the appraisal criteria is

one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms. Lack of competence: Top management should choose the raters or the

evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively. Errors in rating and evaluation: Many errors based on the personal bias like

stereotyping, halo effect (i.e. one trait influencing the evaluators rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees. Resistance: The appraisal process may face resistance from the employees and

the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of

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appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her. PERFORMANCE APPRAISAL- CAREER DEVELOPMENT Performance appraisal is a part of career development. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. Performance appraisal as Career Development leads to the recognition of the work done by the employees, many a times by the means of rewards and appreciation etc. It plays the role of the link between the organization and the employees personal career goals. It helps to identify the hidden talents and potential of the individuals. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. The performance appraisal process in itself is developmental in nature. Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career in the right direction. BALANCE SCORECARD To evaluate the organizational and employee performance in Performance appraisal management processes, the conventional approach measures the performance only on a few parameters like the action processes, results achieved or the financial measures etc. The Balanced scorecard an approach given by Kaplan and Norton provides a framework of various measures to ensure the complete and balanced view of

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the performance of the employees. Balanced scorecard focuses on the measures that drive performance. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. The four Perspectives recommended by the managers to collect information are:

The financial measures: The financial measures include the results like profits, increase in the market share, return on investments and other economic measures as a result of the actions taken.

The customers measures: These measures help to get on customer satisfaction, the customers perspective about the organisation, customer loyalty, acquiring new customers. The data can be collected from the frequency and number of customer complaints, the time taken to deliver the products and services, improvement in quality etc.

The internal business measures: These are the measures related to the organizations internal processes which help to achieve the customer satisfaction. It includes the infrastructure, the long term and short term goals and objectives, organisational processes and procedures, systems and the human resources.

The innovation and learning perspective: The innovation and learning measures cover the organisations ability to learn, innovate and improve. They can be judged by employee skills matrix, key competencies, value added and the revenue per employee.

It focuses on the measures that drive the employee performance. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. To establish a Performance Evaluation for employees that will serve as a formal communication tool between employees and their supervisors concerning job standards and employee performance standards. Performance Evaluation is a systematic process of observing, assessing, and interpreting ones actual performance.

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Performance evaluation provides annual feedback to staff members about job effectiveness and career guidance.Performance Evaluation is very important in an organization, it is designed to monitor employee performance carefully through out the year. Describe the specific action or behaviour-focus on the performance, not on the performer. At the end of the year employee and the manager jointly set objectives for the next appraisal period. All objective should be set using the SMART format: S= specific - it is clearly understood what needs to be achieved M= measurable- there is a mechanism for assessing whether the goal has been achieved or not. A= Achievable- it is something within the employees capability and responsibility R= Relevance - important is in relation to the job or the employees development T= Time bound - there is date by which it should be completed Performance Evaluation helps identify strengths and areas for development. THE PERFORMANCE EVALUATION PROCESS There are a number of methods of performance evaluation. No single methods can be considered ideal in all circumstances. Supervisor is the primary course for the performance information. This is the case in most organization because the supervisor observes employees directly and has good knowledge about performance standards. There are also alternative sources of performance information. Supervisors are usually in the best position to evaluate performance. Supervisors are responsible to provide employees with an overview of the performance evaluation process. Supervisors should do Performance Evaluation in such a way that there should be no discrimination on the base of age, race, color, religion, sex, sexual orientation, disability, national origin, or status. A positive attempt must be made to be as fair as possible to the employee. Job description should be reviewed, so that manager or supervisor can have a better picture of an employees duties and they can evaluate fairly. Information should also PGP/SS/2008-10 DS/08/10-H-102

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be taken form the alternative sources such as peers, customers and subordinates, because for some jobs like sales teaching etc supervisor may not observe his or her subordinates performance on regular bases. Appraise Performance Appraise the employees performance in each area of responsibility (refer to job description). Success should be measured against previously agreed upon objectives. Performance should be rated on the result that is achieved in a fixed time period. Performance Not Potential Manager or Supervisor should rate or evaluate only employees performance and not his or her potential. Self AssessmentEmployees undergo a self-assessment process and evaluate his or her performance. Self-assessment process consists of the employee, using a copy of the appraisal form, rating his / her achievement. The performance evaluation meeting is a good time to talk about setting or re-defining developmental goals. The employee then has the option of completing a self-evaluation and returning it to the supervisor. The supervisor must give the employee an opportunity to complete the evaluation. Cross Rating Usually, evaluations are completed by one evaluator. In some cases, another supervisor or manager within the organization may have important insights regarding the employees performance. For example, if the employee worked for another manager for a good part of the year, it would be necessary to seek the views of the previous manager as well. Keep in mind that the goal is to have a complete, objective, and fair appraisal of performance. More Frequent EvaluationsIf an employees performance needs improvement, set a timeframe for corrective action and re-evaluation. Discuss performance expectations, actions etc employee should meet those expectations and in a specific time manager should re-evaluates employees performance. Annual evaluation must be reviewed at mid-year, If improvement has occurred, this is noted. If improvement has not occurred, the plan is

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reviewed and appropriate steps taken. The employees mid-year review is documented and placed in his or her departmental file. For all employees, a mid-year review can be an important component of the evaluation process. It helps supervisor to take time in evaluating his/her work and performance which should look at progress on goals, other accomplishments, as well as areas of concern. Many organizations use performance evaluations provided by the peers. Employees work in teams supervisors can take information from them ask them too evaluate there team member. Customers can also provide performance information. Collecting information from customers can be costly and time consuming process. However, performance information provided by customers is particularly useful for jobs that require high degree of interaction with the public e.g. suppliers, sales representatives. The Performance Evaluation Meeting The interview with the employee is the most important part of the appraisal process. Supervisor should maintain employees self-esteem at all times during the session. Build rapport project the rite attitude, establish the purpose of the meeting. An outline of the discussion will help both supervisor and the employee keep to the subject. Supervisor should tell the employee the order in which he will proceed. For example, tell the employee that he will explain the process and what constitutes the different levels of performance, discuss each category, discuss the rating, discuss future goals, and address any concerns. The annual performance evaluation meeting allows the supervisor and employee to reflect and review the employees accomplishments, achievement of goals, and areas of needed development. Focus on improvement, give only necessary information. It is a time to share each persons perception of the employees work over the past year and to discuss differences. It is also time to set goals for the next evaluation year or period. One purpose of discussing performance with an employee is to provide the employee with an objective evaluation of his/her performance as compared to previous established goals and standards. In those situations where the goals and standards have been met or exceeded, superior should praise the employee for the good

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performance, and if the established goals and standards have not been met, then the supervisor should enter into a future oriented problem solving discussion with the employee. Individuals should be evaluated only for job responsibilities discussed in advance and mutually understood by both supervisor and employee. Each evaluation should include at a minimum a review of the employees job description and assigned responsibilities, and an assessment of the employees performance in the job, including strengths and areas in which improvement is needed. The supervisor should review the results of all evaluations in detail with his/her immediate supervisor. Such review should include a summary of planned development efforts. Supervisor should give a favorable rating only when the individual has merited it. Forget about giving people a break. Sometimes this is difficult to accomplish. Supervisors have to be fair and, often, this means giving the benefit of the doubt. However, if supervisor continue to do this over a period of time, then the organization will find out that the standards set by the organization have been lowered. By lowering standards, employees produce less to attain the same level of performance after the meeting; the supervisor is to write the final evaluation document incorporating useful information from the employees self-evaluation. Both the supervisor and employee must sign the final document. A copy of the final document is given to the employee and the original copy goes in the personnel file. If an employee disagrees with the final document of the evaluation, he or she may indicate so by attaching an explanation of differing opinion and any documents supporting that opinion. 360 PERFORMANCE EVALUATION The 360-degree performance evaluation is a common tool in human recourse management. It is a mechanism for evaluating someones performance based on feedback from every one with whom the individual comes in contacts supervisor, coworker, subordinates, the general public. It is a method of collecting input from many sources in an employees environment. This method of collecting evaluative input is an excellent source of motivation for employees because it provides a truly honest assessment of how the employee and his/her performance are viewed by a verity of constituents. PGP/SS/2008-10 DS/08/10-H-102

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The most challenging aspect of the 360-degree evaluation is the evaluators' concern about confidentiality. When implementing this type of evaluation, it's best to assure other employees that what they share will remain strictly confidential. Likewise, explain to each employee that he will be evaluated by many people, including those who know his work best. This type of feedback helps employees see themselves as others see them and allows them to seriously examine their behavior. It can reveal areas in which employees are performing particularly well and those areas in which there is room for improvement. 360 Performance Evaluation

This review process is also helpful for the supervisor. It can provide a more accurate assessment of an employees performance and help eliminate accusations of favoritism. The 360-degree process provides greater objectivity. And because the feedback is submitted anonymously, it provides a supervisor with the most unbiased and accurate information from which to draw performance conclusions. 360-degree evaluation and feedback system are tools that help employees building new skills and improve their performance in generally by gathering information and analyzing performance from several sources. DEVELOPMENT PROCEDURE

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Human Resource Development is the framework for helping employees develops their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, succession planning, key employee identification, tuition assistance, and organization development. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource development and cover all of these bases. Employee development consists of experiences and training opportunities designed to enhance current employees knowledge and skills. Development Employee development, however, is a much bigger, inclusive "thing". For example, if a manager pairs up a relatively new employee with a more experienced employee to help the new employee learns about the job, that's really employee development. If a manager coaches and employee in an ongoing way, that's employee development. Or, employees may rotate job responsibilities to learn about the jobs of their colleagues and gain experience so they might eventually have more promotion opportunities. That's employee development. In other words employee development is a broader term that includes training as one, and only one of its methods for encouraging employee learning Development is a broad, ongoing multi-faceted set of activities (training activities among them) to bring someone or an organization up to another threshold of performance, often to perform some job or new role in the future. Organization intentions should be that they retain and motivate the very best people in there workforce. This can be done via a combination of relevant learning programs, on the job development. All learning programs should be part of an organization strategic operating plan with the specific objective of correcting performance gaps both an

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individual and organizational level so as to add value to performance improvement, productivity and service. Annual Learning Needs Analysis What the business intends to achieve What knowledge, skills or attitude gaps exist that inhibit employee achievement? Identification of Learning Needs All learning programs should be part of the Companys strategic operating plan with the specific objective of correcting performance gaps both at an individual and organizational level so as to add value to performance improvement, productivity and service.

Line Managements Responsibility for Training Line Management should understand their responsibilities to identify and satisfy their employees learning needs and recognize that the majority of learning takes place on the job. His / her responsibility shall be a key result area for them. Where the learning

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take place away from the workplace, Line Managers should be fully committed to, and practice, effective pre- and port-course / event briefings with employees. Employees should be made to understand the need for and the benefits of effective learning and development and take ultimate responsibility for their own development. Training should be a key result area for all Managers and Officers, within the Performance Management Scheme. Companies can establish itself as a Learning Organization through continuous coaching and self- development (through internal and external means) at all levels. Each Manager and Line Manager should have learning and development as an essential part of their job description. Personal Development Plans Personal development plans (PDPs) provide a powerful, flexible way to link employees' professional and personal development with the development of the business. Personal development plan allow employees to answer the following questions: How can I continually learn and grow in the next year? How can I do better in the future? How can I avoid performance problems faced in the past?

Personal Development Plan is more then training it is not the same as simply putting groups of employees through traditional training programmes. It focuses on the development of the individual employee. Every employee should have a PDP. Junior employees benefit from PDPs that help them to develop their roles within the business. Typically, each employee's line manager should be responsible for the employee's PDP. Personal Development Plan objectives can be achieved through learning in the workplace. Assign a suitably skilled manager or colleague to provide guidance to the employee, as requested. More formal training can help to develop specific knowledge and skills. Objectives that are common to many employees, or that demand special expertise, are often suited to formal training. More senior or expert employees may be highly motivated by achieving development objectives independently.

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Employee DevelopmentEmployee development tends to focus on managers, but can be used for other employees as well. It is important for companies because it helps retain employees and ensures that the organization has capable employees for filling positions throughout the company. Employee development is crucial for the growth and prosperity of any business as employees are one of the determining factors for the success of the company. The more capable and qualified the employees the better the performance of the company. When they are well trained, they can easily handle situations and please customers ensuring customer retention. Employee development program make positive contribution to organization performance. A more highly-skilled workforce can accomplish more and a supervisors group can accomplish more as employees gain in experience and knowledge. Retaining an employee saves the organization a great deal of money. One method of retention is to provide opportunities to develop new skills. The right employee training, development and education, at the right time, provides big payoffs for the employer in increased productivity, knowledge, loyalty, and contribution. Employee development initiatives are of benefit both to the individuals concerned and to the organizations that they serve. Well developed employees can help to facilitate growth through being better informed and by jointly sharing the organizations vision; they are also better equipped to bring improvements to their work environment and processes. Such employees are described as being "engaged" or better connected with the organization and its leadership. These employees tend to have confidence in the organizations future direction and thereby put their energies towards producing better results. Development is to help the employee identify realistic growth and improvement goals while working with their leader to develop and execute some positive actions to reach those goals. Development occurs in an infinite number of ways. Actions can be formal or informal, traditional or highly creative. The important thing is that positive action occurs through a planned process that both the employee and the leader agree is in the best interest of the individual and the company.

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Employee development programs are essential to improve morale and to motivate the employees to perform well. Employees like to learn new skills and meet challenges and they are more motivated when they feel there is great potential for personal growth. When the company shows interest in employee development, the employee naturally has a greater interest in the company's development too. Employee Development is the pursuit of any activity that leads to continuous learning, personal growth, and which contributes to the achievement of both an individuals and their employers or organizations objectives on the longer term. It is difficult to discuss employee development as a formal human resources initiative. Since the history of HR application that have been labeled as employee development are so diverse. As an HR function, employee development has been somewhat of a catch all basket for a basket for a variety of initiatives intended to improve employee and organization performance. Accordingly, there is little or no agreement among HR professionals or organization leaders on just what does or does not constitute employee development. Development includes the formal or informal acquisition of competencies, if only at an awareness level. Employment includes an individuals participation in selfemployment, working for an organization, volunteering, or similar activities such as home-making or relationship building. Employee development, regardless of the form it takes, is essential to the long-term success of organizations today. Employee development, career development, career management, career planning, career guidance, career coaching, career counseling, mentoring, and initiatives with similar names and labels have been used by organizations. Employee development is a continuous process that continues throughout the life span, regardless of how many employers or what type of employment or other types of settings the individual experiences. When an employer supports the spirit of employee development as a business investment, great benefits to the organization can be realized.

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A major difficulty supervisors and employees encounter in matching needs with activities is that of selecting the optimum developmental activity that is the activity that provides maximum learning within the boundaries of the organizations:

Mission, Budget, Workload, Travel, Staffing and Time constraints.

To minimize this problem, a variety of developmental approaches and strategies should be considered. We often think of training only in terms of formal training courses. There are several ways through which employees can reach the objectives stated in their development plans. These include the following: Managers or supervisors can assess improvement and progress over a period of time and this makes it easier to identify a problem intervene and resolve problems quickly. On the job training is also productive, as the employee is still working as they are learning. As training progresses and the employee begins to feel more confident, this confidence would allow them to work at a higher standard and ultimately be more productive

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Mentors need to be facilitators and coaches, not tutors or trainers. Mentorees need simply to open their minds to the guidance and facilitative methods of the mentor. The mentor should not normally provide the answers for the mentoree; instead a mentor should ask the right questions (facilitative, guiding, interpretive, and nonjudgmental) that guide the mentoree towards finding the answers. Mentors teach through Sharing Modeling Guiding Advising Supporting Networking

Mentors share their own experiencesboth successes and failures. They teach through stories and anecdotes, and offer insights that can only come with experience. Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. UNIQUE FEATURES AND ADVANTAGE OF THE MBO PROCESS The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. PGP/SS/2008-10 DS/08/10-H-102

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Some of the important features and advantages of MBO are: 1. Motivation Involving employees in the whole process of goal setting

and increasing employee empowerment increases employee job satisfaction and commitment. 2. Better communication and Coordination Frequent reviews and

interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period. 3. Clarity of goals

There are several limitations to the assumptive base underlying the impact of managing by objectives, including: 1. It over-emphasizes the setting of goals over the working of a

plan as a driver of outcomes. 2. It underemphasizes the importance of the environment or

context in which the goals are set. That context includes everything from the availability and quality of resources, to relative buy-in by leadership and stake-holders. 3. Companies evaluated their employees by comparing them with

the "ideal" employee. Trait appraisal only looks at what employees should be, not at what they should do. 4. It did not address the importance of successfully responding to

obstacles and constraints as essential to reaching a goal. The model didnt adequately cope with the obstacles of:

Defects in resources, planning and methodology, The increasing burden of managing the information organization

challenge,

The impact of a rapidly changing environment, which could alter the

landscape enough to make yesterdays goals and action plans irrelevant to the present.

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When this approach is not properly set, agreed and managed by organizations, in selfcentered thinking employees, it may trigger an unethical behavior of distorting the system of results and financial figures to falsely achieve targets that were set in a short-term, narrow, bottom-line fashion The use of MBO needs to be carefully aligned with the culture of the organization. While MBO is not as fashionable as it was before the 'empowerment' fad, it still has its place in management today. The key difference is that rather than 'set' objectives from a cascade process, objectives are discussed and agreed, based upon a more strategic picture being available to employees. Engagement of employees in the objective setting process is seen as a strategic advantage by many. A saying around MBO and CSF's -- "What gets measured gets done"-- is perhaps the most famous aphorism of performance measurement; therefore, to avoid potential problems SMART and SMARTER objectives need to be agreed upon in the true sense rather than set.

360-degree appraisal Behavioral observation scale Behaviorally anchored rating scales

Trait-based systems, which rely on factors such as integrity and conscientiousness, are also commonly used by businesses. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are two-fold: 1. Because trait-based systems are by definition based

on personality traits, they make it difficult for a manager to provide feedback that can cause positive change in employee performance. This is caused by the fact that personality dimensions are for the most part static, and while an employee can change a specific behavior they cannot change their personality. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the threat of being caught is gone.

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2.

Trait-based systems, because they are vague, are more easily

influenced by office politics, causing them to be less reliable as a source of information on an employee's true performance. The vagueness of these instruments allows managers to fill them out based on who they want to/feel should get a raise, rather than basing scores on specific behaviors employees should/should not be engaging in. These systems are also more likely to leave a company open to discrimination claims because a manager can make biased decisions without having to back them up with specific behavioral information.

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CHAPTER- 2 COMPANY PROFILE

DETAILS ABOUT FLY MOBILE Meridian Telecom was founded by a group of private investors in 2002. The group holds immense experience in growing mega distribution and marketing in FMCG field, especially in the emerging markets. The company launched Fly Mobile Phone brand in 2003 making rapid inroads in the stylish, feature rich and user friendly mobile phone market. Capitalizing on the fast growth of this segment the company soon diversified its product range in the high value segment, smart phones, mobile phone accessories and soon to be launched digital cameras. Meridian focus on high quality and workmanship began to pay off soon enough in an industry which was consolidating into the big 4 or 5 players, Meridian continuously improved its market but began to expand from Russia to CIS, Ukraine, Poland, Bulgaria, and now UK where it has already bagged bundling deals with Virgin and Argos car factory among others. Similarly Africa, Middle East and South Asia are in advance stages of launch. During a short period of existence, the company has managed to gain a significant market share and became an important player in handset distribution in Central & West Europe including Russia. Meridian's successful strategy of strong product offerings and a differentiated retail strategy have resulted in recording high growths in the fast emerging markets.

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Hierachy Chart In Human Resources In Fly Mobile

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CHAPTER- 3 OBJECTIVE, SCOPE, SIGNIFICANCE, METHODOLOGY AND LIMITATION OF THE STUDY

OBJECTIVE OF THE STUDY To assess how effectively the performance appraisal system is working at Fly Mobile. To find out attitudes & problems of employees and to clarify and define the problems and issues, if any. To provide feed back to appraisers and appraises, if any and to Recommendations for further development. To determine / find out about the current system in place at Fly. SCOPE OF THE STUDY In formulating a performance appraisal strategy, it should be linked to the organizations mission and HR strategy. The system functions as a management tool to help ensure that employees are focused on organizational priorities and operational factors that is critical to the organizations success. SIGNIFICANCE OF THE STUDY (i) Significance of the Industry: To achieve and maintain a competitive advantage is extremely essential for organizations to survive. This can only be achieved if the organization works as an integrated unit and has a good performance appraisal. This will help them achieve sales volume and higher market share in the Indian market. (ii) Significance of the Researcher: I have gained lot of experience while doing this project. The project had helped me to study the HR performance Appraisal at Fly Mobile to interact with the HR Managers of the Fly Mobile. To interact with the employees of the Fly Mobile.

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RESEARCH METHODOLOGY RESEARCH DESIGN The research was probability based exploratory research. Primary Data Internal data from companies offices and employees. Interviews of employees of Fly Mobile.

Secondary Data Fly Mobile Website Internet

Data Collection Tools Questionnaires Personal Interviews

SAMPLING METHODOLOGY (i) (ii) (iii) (iv) Sampling Unit: Employees of Fly Mobile Sampling Technique: Random Sampling Sampling Area: Delhi, Fly Mobile Sample Size: 50 Employees LIMITATIONS OF THE STUDY: The sample size was limited to 50 employees Biased opinions of the employees are limiting factors for the research.

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CHAPTER- 4 PERFORMANCE APPRAISAL AT FLY Directed towards constructive business and performance improvement strategies, the dialogue should cover these main time slices:1. 2. 3. Reviewing the past Considering the present Looking into future

The dialogue is intended to benefit both partners in many ways: By clarifying specific responsibilities, key contributions expected and relating these to the organizations objectives. By helping to understand what is expected of each partner and where their efforts should be concentrated. By reviewing past successes and failures from the preceding period and the lessons to be learnt from them. By discussing how the day-to-day relationship is felt to be supportive, constructive or restrictive. By checking whether the working environment is effectively deployed, organized and resources economically and effectively deployed. By sharing mutual aspirations ideas, hopes, challenges to improve and inspire higher performance standards. By providing a realistic, data based framework for fair performance evaluation. By crystallizing role enlargement, role enrichment and training and development. The objectives of the performance dialogue dont require anything new of each partner, it simply ensures of basic communication responsibilities in a formal way and

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on a regular basis, an enlightened comprehensive stocktaking and planning of performance and related issues for improvement. SETTING GOALS / KEY RESULT AREAS (KRAS) / TARGETS Job profile helps to identify responsibilities and enlist them in accordance of their importance. The most important responsibilities should come first and routine responsibilities should come at the end. Set 3 goals for each quarter. Some of the goals will continue throughout the year. e.g. Sales, recovery and some of goals will be for a specific period. Out of these 3 goals, 2 goals should be of very important nature and one goal could be that of routine responsibility or improvement. As far as possible the KRA / Targets should be:o To increase sales volume o To reduce costs and waste o To collect from debtors o To improve the innovative methods and processes Unless the goals are on these lines, they would not be goals but would be routine assignments. Goals should be quantifiable and their performance measurable. Unless goal is quantified in terms of numbers or time, it would not be measurable. At the end of the year, managers have the opportunity to have a performance dialogue with superior. During the discussions managers have to convince their superior about their performance or superior will have to convince managers for his expectations. The kind of dialogue is important that gives opportunity to both - the superior as well as sub-ordinate to remove the misconceptions and realize each others difficulties and also helps to understand each other in a better manner.

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PERFORMANCE PARAMETERS (I) AREA: Research & Development 1. Meeting commitments: Timely completion of task, achieving

output as per schedule for production related items. 2. Response time and quality or response: Responding to

customer queries within shortest agreed time. 3. of drawings. 4. 5. Engineering Discipline: Application of engineering knowledge Following standards: Adherence to company, national and Accuracy, Quality & Detailing: Accuracy, quality and detailing

international standards in design and manufacture. 6. Over-all improvements: Implementing new ideas, development

of new models. 7. Cost effective solutions: Function cost relationship of

output, amount of value engineering, done on product. 8. Special Assignments / improvements: Efficiency, effectiveness

and quality in completing special assignments / projects given to appraisee. 9. initiative. (II) AREA: ENGINEERING 1. Meeting commitments: Achieving performance as per the IMPROVEMENTS: Brought about at the appraisers own

time / quality / quantity commitment made to the customer. 2. agreed time. 3. Cost effectiveness: Cost effective project. Function and cost Response time: Responding to customer queries within shortest

relationship of the output, amount of value engineering did on the project.

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4.

Standardization: Ability to make standardization of various

norms and procedure (Drawings, documents, purchase indents, manufacturing, norms, inspection reports, QAP etc). 5. Versatility development: Developing subordinates in multiple

disciplines. Interest taken in overall development of subordinates knowledge, skills and attitudes. 6. Special assignments / improvements

(III) AREA: CENTRAL PLANNING 1. Advance planning: Anticipation of needs in enhancing of work,

forecasting, prioritization of work. 2. 3. Monthly Programs Achievement Response Time: Responding to customer queries within

shortest agreed time. 4. Due date performance: Timely completion of task, achieving

output as per agreed schedule. 5. Manufacturing Resource Productivity: Utilization of machines

through scheduling and loading, raw material consumption optimization, etc. 6. agencies. 7. Adherence to systems and system up gradation: Strictly to Co-ordination and communication Effectiveness: Ability to co-

operatively and persuasively get things done through many departments /

procedures and avoiding non-conformities, development, maintenance and upgradation of systems including computer system. 8. Quality as regards to reporting (Record Maintenance):

Accuracy and correctness of record maintenance. 9. Inventory control: Achievement in reducing inventories to

targeted levels.

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10.

Monitoring of achievement against scheduling and timely

corrective action. (IV) AREA: MATERIALS 1. Due date performance: Timely completion of task, achieving

output as per agreed schedule for production related items, spares and product support related items. 2. Inventory control: Achievement in reducing inventories to

targeted levels. 3. Cost reduction: Cost reduction through systems improvements,

judicious procurement, selection of transport media, negotiation on terms etc. 4. Operation system maintenance: Strictly adhering to procedure

and avoiding non-conformance. 5. Lead time reduction: Achievement in lead time reduction by

proper selection of transport media. Local vendor development etc. 6. Quality improvement and supplier improvement: Work done

for suppler quality index. 7. Development of components: Target achievement for

development of vendors for items decided to be off-loaded. 8. Overhead cost reduction: Reduction of Overhead cost like

travel cost for chasing materials, cost of telex, fax messages, etc. 9. Special assignments / Improvements

(V) AREA: MANUFACTURING ENGINEERING 1. Meeting Commitments: Achieving performance as per the

time / quality / quantity commitment. 2. Response time: First time right design. Design output, which

doesnt require later modification. 3. Customer Acceptance: Customer acceptance of outputs like

jigs, fixtures, etc.

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4. disciplines. 5.

Versatility Improvement: Developing workmen in multiple

Producibility of design: Ease of manufacturing design items of

materials, jigs and fixtures and achievability of tolerances. 6. Cost effectiveness: Function cost relationship of output,

amount of value engineering, done on the product. 7. 8. 9. 10. 11. 12. 13. Adherence to standards Upgrading to cutting Tools Inventory Control Development of sub-ordinates House Keeping System maintenance Special Assignments / improvements

(VI) AREA: MANUFACTURING 1. Due date performance: Timely completion of task, achieving

output as per agreed schedule. 2. Quality: Ensuring participations quality circles, suggestions

and other cultural activities. 3. Employee involvement: Encouraging participations in quality

circles, suggestions and other cultural activities 4. disciplines 5. 6. House Keeping Control of consumables: Control over indirect product inputs Versatility improvement: Developing workmen in multiple

like oils, paints, power, water, electrodes, cotton waste, chemicals etc. 7. Co-ordination with other departments: Ability to co-operatively

and persuasively get things done through other departments / agencies.

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8. per unit. 9.

Cost Per Unit: Achievement of actual cost within budgeted cost

Rejection Control: Control / reduction through suggestions in

process, tooling etc. 10. Special Assignments / Achievements: Efficiency, effectiveness

and quality in completing special assignments / projects given to appraisee. (VII) AREA: PLANT ENGINEERING 1. 2. 3. 4. 5. 6. 7. 8. Breakdown %age Breakdown hours of critical machines Implementation of preventive maintenance systems Improvement in the Aesthetics of machines Data generation for effective spares planning Machines problem identification process Spares control Special Assignments / Design modifications: Elimination of

chronic problems, recurring complaints, improving utilization of machines. 9. 10. 11. 12. 13. Energy conservation Cost control Safety System modification Customer reaction

(VIII) AREA: QUALITY ASSURANCE & SYSTEMS 1. 2. 3. 4. Elimination / reduction or recurring non-conformities Internal failure cost External failure cost Shop quality level

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5. 6. 7. 8. 9.

Response time for clearing reports System maintenance and operation Supplier product quality improvement Acceptable quality level Versatility improvements

(IX) AREA: MARKETING 1. related items. 2. Inventory control: Achievement in reducing inventories to Sale Target: Timely completion of task, achieving output as per

agreed schedule for production related items, spares and product support

targeted levels. 3. customers. 4. 5. advertisement, 6. Marketing Costs 5. Control of marketing costs like traveling, Recoveries: Ensuring timely recoveries of dues from

promotion, and dealer developments, etc. Market Intelligence Gathering: Competitors sales information,

their targets and plans, environment information. 7. Customer calls: Achievement of customer calls targets and

maintaining the targeted ration of calls converted to orders. 8. 9. 10. 11. 12. 13. Capitalization of business opportunities Market Share Quality and speed of response Errors free order collection and registration Generation of enquiries and follow up Special assignment / Improvements

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1.

Adherence to statutory requirements: Adherence to statutory

requirements in excise documentation, MODVAT etc. 2. System maintenance: Strictly adhering to procedures and

avoiding non-conformance. 3. Due date performance: Timely completion of task, achieving

output as per agreed schedule. 4. keeping 5. 6. 7. Quality and timeliness of management reporting Response to customer requirements Meeting commitment:Timely completion of task, achieving Accuracy of records and documents: Zero defect record

output as per agreed schedule. 8. 9. 10. 11. Internal Checks and controls Requirements Cost Saving and cost reduction Company image building Special Assignments

(XI) AREA: PERSONNEL 1. Timeliness of service: Timely legal & Govt. compliance,

payment of wages, disciplinary action etc. 2. Adherence to systems / norms / standards: Adherence to

standing rules and departmental operating systems 3. agreed time. 4. Compliance to Statutory /Govt. Requirements: Compliance to Response time: Responding to customer queries within shortest

statutory records like PF, ESI, Gratuity etc. to Govt. 5. Cost Control / Savings: Control of welfare cost, recreational

cost, reduction of accidents, cost of medicines, cost of canteen services etc.

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6.

Welfare Programme: Recreational / cultural / social activities,

preventive and curative health management etc. 7. Quality of service: Elimination of errors in transactions,

customer complaints and reminders from other agencies. 8. Accuracy as regards to reports / records: With reference to

records of attendance, PF, ESI, legal reports etc. 9. Internal / External Environment Scanning: Scanning of internal

environment to get a feel of IR situation, external environment for salary surveys, and IR situation in other local companies etc. 10. (XI) AREA: HRD 1. programmes. 2. programme. 3. Company image building: Minimum waiting time and accurate Training coverage: % age of employees covered under training Employee involvement programme: Interest taken to overall Company property protection

development of employees knowledge and skills through participating

guidance to visitors, zero complaints from visitors, etc. 4. Special assignments / improvements: Efficiency, effectiveness

and quality in completing special assignments / projects given to appraisee. 5. Management information system: To make available all

important information for top management and facilities decision making. 6. Meeting qualified and special manpower requirements.

CRITICAL ATTRIBUTES CONCEPTUAL SKILLS 1. Proactive skills Ability to anticipate problems and undertake steps to resolve them.

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Effectiveness in influencing events. 2. Analytical & Planning skills Competence in analyzing a problem in its various aspects Generation and evaluation of various alternative in problem solving Vision, foresight and power of anticipation Allotment of correct priorities and setting realistic objectives. 3. Total perspective Ability to look at the total picture and take an overall view. Ability to work through stated philosophy / values / policies Ability to take optimal decisions to the advantage of the overall organization (and not only the best for own department / unit) 4. Integrated Skills Ability to harmonic and integrate divergent views Human Skills 1. Leadership Ability to direct, co-ordinate work and plan activities of the team. Judicious delegation of authority to other while ensuring effective control. Ability to get the work done through subordinates though corrective action / follow up. 2. Training & Development of subordinates Degree of guidance and encouragement provided to subordinates to develop their full potential. Efforts made for imparting on-the-job training. Utilization of training facilities / resources for growth and development of subordinates.

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3.

Ability to inspire and motivate Personnel bearing, example and enthusiasm in inspiring and

motivating others. 4. 5. Degree of impact on the team members Level of moral amongst subordinates Ability to command respect from subordinates Concern for welfare of subordinates Interpersonal Relationship Skills in establishing and maintaining rapport with people Internal seniors, peers, juniors External Personnel in other companies Tact & Cooperation Ability to maintain cordial and harmonious relations in work

situations. 6. Receptivity to different view points Degree of cooperation and co-ordination with colleagues and seniors Degree of active participation in group efforts in work situations Communication Clarity, precision and effectiveness in expression both verbal and

written. 7. Extent, manner and periodicity of communication Resolution of conflict Courage to confront issues constructively / tactfully

FUNCTIONAL SKILLS 1. Job Knowledge

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Level of professional knowledge in terms of depth, breadth and

currency in relation to the requirement of the job. Degree of proficiency in the application of knowledge to the

assigned tasks Clarity of objectives relating to own functions

2. Planning & Organizing Foresight and vision in anticipating work needs Ability in analyzing problem in its various aspects Ability to accord correct priorities Degree of competence in making effective use of resource in terms

of men, material and time. 3. Decision Making Ability to take optimal and prompt decisions after due evaluation

of available alternatives. Willingness to take risk, after careful exploration of opinions.

PERSONALITY ATTRIBUTES 1. Dependability Ability to accomplish task on time without sacrificing quality. Ability to accomplish task consistently with little or no

supervision. 2. Openness Quality of being frank and candid in accepting and giving

suggestions, ideas, opinions etc.

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Ability to produce fresh / new ideas deviating from the traditional

pattern of thinking. Perseverance Ability to persist and continue actively in the face of difficulty,

opposition and counter influence. Empathy / Sensitivity Capacity to understand and appreciate others feelings.

Integrity (Intellectual & Moral) Courage of own convictions Degree of honesty and uprightness in stating facts and giving

correct information even at the risk of personal disadvantage. Loyalty / Commitment accepted company Self confidence Personality (strong or weak) Degree of adequacy and self reliance in social / work situations Confidence in own power of judgment, efforts and abilities Degree of trustworthiness Subordination of personal interest to the overall interest of the Readiness with which additional responsibility is willingly

ability to undertake independent action when needed. Capacity to withstand stress Ability to perform effectively under pressure Capacity to keep cool and calm under stress

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Discipline Adequacy in consistently confirming to service rules, regulations,

orders and instructions Personal conduct and behaviour in keeping with the service

requirement Flexibility / Adaptability Positive Outlook Cheerful and positive temperament Amendable to change on the basis of feedback Ability to respond quickly to different people / situations Cheerful and positive temperament

Appearance and Bearing Degree of personal interest and pride in appearance Manner of personal conduct at all times.

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CHAPTER- 5 DATA ANALYSIS & INTERPRETATION

1. In your company, the key competencies required for each job are already identified?

Very True 2% True 6% Partly True 18%

Not True 74%

Interpretations: Most of the respondents (74%) found the above statement to be Not True. This was followed by 18% of the respondents feeling that this statement was Partly True for their organisation. Only 6% of the people found it to be True and 2% Very True.

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2. There are mechanism that help employees develop their potential for the next rung of job?

Very True 2%

True 8%

Not True 40%

Partly True 50%

Interpretations: Quite a large number of respondents (40%) shared the view that the appraisal system did not give a clear understanding of each appraises job to both appraiser and appraise by saying that it was Not True. Only 50%, 8% and 2%of the respondents felt that the statement was True, Partly True and Very True respectively.

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3. Employees regularly receive feedback about their potential for higher level jobs?

Very True 2% True 14%

Partly True 14%

Not True 70%

Interpretations: 70% of the respondents agreed that the appraisal system did not helped them to know their potential to perform at higher levels. Plan their performance well by saying that it was Not True. Only 14% each and 2% people felt that this statement was True, Partly True and Very True.

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4. Job rotation is practiced widely to help people develop their potential in new areas?

Not True 0%

Very True 14% Partly True 50%

True 36%

Interpretations: About 50% of the respondents felt that the above statement was Partly True. It was followed by 36% people feeling that it was True with 14% believing that it was Very True.

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5. The appraisal system provides an opportunity for self-review and reflection?

Very True 4%

True 4%

Partly True 26%

Not True 66%

Interpretations: There is a general agreement on then fact that the PA system in Fly Mobile does provide ample opportunity for self-review and reflection. 26% of the people felt that it was Partly True with 4% each True and Very True. 66% Not True.

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6. Promotions are based strictly on need rather than to reward individuals?

Very True 2% True 8%

Not True 41%

Partly True 49%

Interpretations: 49% of the respondents believe that the above statement is Partly True This was closely followed by 41% of the respondents rating it as Not True and 8% of the respondents feeling that it was True followed by 2% Very True.

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7. The appraisal system gives each appraisee an idea of what is expected of him next year?

Very True 4% Not True 28% True 16%

Partly True 52%

Interpretations: 52% of the respondents felt that the above statement was Partly True. This was followed by 28% and 16% of the respondents feeling that it was Not True and True respectively followed by 4% Very True.

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8. It is designed to aid the appraisee and appraiser jointly understand the formers job? Very True 4% Not True 28% True 24%

Partly True 44%

Interpretations: There was a mixed response to the given statement. 44% of the responses consisted of Partly True ratings. 28% respondents believed that this was Not True whereas 24% believed that this was True followed by 4% Very True.

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9. The performance appraisal provides an opportunity for self review and reflection? Very True 2%

True 2%

Not True 46% Partly True 50%

Interpretations: Most of the respondents agreed that the appraisal system catered to their development needs (50% believed that it was Partly True) and it was very closely followed by 46% saying it was Not True. There was 2% cases each which believed that it was True / Very True.

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10. The appraisal procedure allows the appraisee to express his developmental needs?

Very True 4%

True 12%

Not True 52% Partly True 32%

Interpretations: The most common response on above statement was an astounding Not True with 52% people agreeing that the PA system was free of any biases. It was followed by 32% saying that it was Partly True and 12% saying that it was True and 4% Very True.

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11. The system has scope to correct the biases of the assessor through a super review? Very True 2%

True 2%

Partly True 28%

Not True 68%

Interpretations: 68% of the people rated the above statement as Not True 28% believed it was Partly True with 2% disagreeing by saying that it was True and 2% says Very True.

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12. The appraisal system provides for a frank discussions between appraiser and appraisee?

Very True 4%

True 8% Partly True 8%

Not True 80%

Interpretations: An astounding 88% rated the above statement as not true with 8% each stated that it Partly true / True and 4% Very True.

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13. The procedure allows for the communication of CEO s goal to the workforce?

Very True 2%

True 2% Partly True 20%

Not True 76%

Interpretations: The typical response in this case was Not True, by 76% of the respondents. 20% rated the above statement as Partly True and 2% each as True/Very True.

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14. The appraisal system brings out the training needs of the employees. Very True 2%

True 4%

Not True 50%

Partly True 44%

Interpretations: 50% of the respondents believed the above statement to be Not True closely followed by 44% people believing it to be Partly True. Only 4% believed it to be True and 2% says Very True.

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15. The performance appraisal system clarifies the career prospects, aspirations and intentions? Very True 4% Not True 10%

True 6%

Partly True 80%

Interpretations: The typical response (80%) for the above statement was Partly True 10% employees believed it to be Not True and 6% employees believing if to be True followed by 4% Very True.

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16. The appraisal system provides a rational basis for salary recommendations?

Very True 4% True 12%

Not True 56%

Partly True 28%

Interpretations: 56% of the respondents felt that the above statement was Not True. 28% responses included Partly True ratings whereas 12% responses included True followed by 4% says Very True.

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17. The company relates reward to your performance?

Very True 4%

True 16%

Partly True 8%

Not True 72%

Interpretations: Most of the respondents (72%) felt that the above statement was Not True. 16% believed it to be True whereas a mere 8% felt that it was partly True and 4% says Very True.

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18. What kind of an appraisal system will bring out the best of an employee?

Appraisal by all Superiors 20%

Appraisal by reference team and self 40%

Appraisal by imme diate superior 10%

Appraisal by reference team 30%

Interpretations: This shows that the relationship between appraiser and appraise, in Fly Mobile, with respect to planning the performance is quite good. The subordinate in planning performance. The appraiser helps the appraise in testing the soundness of his goals as well as of his plans for achieving them. This implies that there is active participation of both appraiser and appraise in performance planning. The reason behind Not True answer may be due to the fact that many jobs in Fly Mobile are not well defined and therefore an elaborate planning on them is not done.

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CHAPTER-6 RECOMMENDATIONS Having drawn the above conclusions, it is hoped that the following recommendations would help to make the performance appraisal systems more effective. 1. Top-down communication of organizational goal policies would

enable individual KRA / KPA to be aligned more surely with the organizational goals. The assessment of the KRA on quarterly basis combined with greater interaction between superiors and subordinates would ensure that the KRAs being assessed are relevant and are focused on the goals and objectives of the organization. 2. One of the reasons why it was being felt that the appraisals were being

carried out as routine exercise and not with seriousness was because training was not being imparted despite training needs being discussed during the Performance Reviews. Thus, it is essential that training and development need to be met as soon as the company situation improves. In order to ensure that the morale and commitment of the employees are strengthened. 3. Objectivity in appraisals is required by the system. However, managers

often rate sub-ordinates subjectively for a variety of reasons such as empathy for someone whose work is suffering because of temporary problems, to avoid airing the departments dirty laundry, to avoid confrontation with a hard to manage employee etc. deflation of ratings does not occur as frequently as inflation because managers fear the consequences of deflation appraisals more than those of inflating them. Subjectivity in performance appraisals could be controlled if the managers are persuaded to coach and monitor their sub-ordinates continually and provide timely feedback to them. The annual performance appraisal could be more effectively if it were just one part of broader performance management system, in which employees get feedback at regular intervals throughout the year. Thus, if mangers were to evaluate performance as they went along, the correct rating would seem the only logical choice at the end. The better communications as a

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result of frequent interactions between the managers and the subordinate work make the performance appraisal system work. 4. Most appraisers felt that a one-day workshop consisting of training for

the appraisers on objectivity as an appraiser, appreciation of the objectives of performance appraisal scheme and how it operates in the event of a new scheme being introduced or in the case of a first time appraiser would be useful. Thus, one day training program for appraisers would therefore, refresh them on the basic objectivity of the scheme, and clear any doubts they might have about its implementation. 5. Developing counseling skills in appraisals would develop more

effective relationships within the organization because there are certain peoples problem which may not be directly related to work, but which would affect the ability of the employee to perform efficiently. Thus, counseling within the organizational constraints would be and effective way in which managers could help their sub-ordinates and peers and get to know them better. This would in turn result in more effective performance appraisals.

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CHAPTER-7 CONCLUSION Based on the analysis, the following conclusions have been arrive at:There appears to be a lack of communication of the organizational plans / goals throughout the organization. This is evident from the fact that the individuals goals are not really being aligned with the organizational goals due to the lack of clarity. There has been a great deal of dissatisfaction expressed over the fact that training and development needs are not being met despite having discussed them during the performance review discussion. This has resulted frustration among the employees. However, in the light of the current situation of the company, they seem to understand; the reason and we are willing to wait until the company is in a position to train its employees. The appraisers as well as the appraises feel that some appraisals are being conducted subjectively and not objectively. This is due to a certain bias, which is present among most appraisers. Most appraisers feel that their superiors discussed their work performance with them frequently apart from during the appraisal interview. On further questioning, however, it was found that routine matters were being discussed rather than the appraise KRAs / KPAs and how he was progressing with them. During the performance review discussion appraises were of the opinion that the appraisers were never appreciative of the effort put in by the appraisee to get their work done and were critical about those aspects of their goals which were too achieved. The appraises felt that appreciation goes a long way in boosting their morale when a job has been well done. Most appraises felt a lack of counseling from their appraisers on the form of encouragement.

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BIBLIOGRAPHY Books Managing Human Resources, Casio F. published by Mc Grammnally International editions, third edition, 1992. Planning for Performance Management, Manish Sinha, published by Human Resource Capital, Jan., 1998. Magazines India Today Business Today

Newspapers Indian Express Times of India

Websites www.google.com www.altavista.com www.Fly.in

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ANNEXURE QUESTIONNAIRE Name:______________________________________________________________ Department:__________________________________________________________ Vintage:_____________________________________________________________ Job role:_____________________________________________________________ 1. In your company, the key competencies required for each job are already identified. a) b) c) d) Very True True Partly True Not True

2. There are mechanism that help employees develop their potential for the next rung of job. a) b) c) d) Very True True Partly True Not True

3. Employees regularly receive feedback about their potential for higher level jobs a) b) c) d) Very True True Partly True Not True

4. Job rotation is practiced widely to help people develop their potential in new areas. a) b) c) Very True True Partly True

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d)

Not True

5. Your companys promotion policies are clearly defined and shared with all employees. a) b) c) d) Very True True Partly True Not True

6. Promotions are based strictly on need rather than to reward individuals? a) b) c) d) Very True True Partly True Not True

7. The appraisal system gives each appraisee an idea of what is expected of him next year? a) b) c) d) Very True True Partly True Not True

8. It is designed to aid the appraisee and appraiser jointly understand the formers job? a) b) c) d) Very True True Partly True Not True

9. The performance appraisal provides an opportunity for self review and reflection? a) b) c) d) Very True True Partly True Not True DS/08/10-H-102

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10. The appraisal procedure allows the appraisee to express his developmental needs? a) b) c) d) Very True True Partly True Not True

11. The system has scope to correct the biases of the assessor through a super review? a) b) c) d) Very True True Partly True Not True

12. The appraisal system provides for a frank discussions between appraiser and appraisee? a) b) c) d) Very True True Partly True Not True

13. The procedure allows for the communication of CEO s goal to the workforce? a) b) c) d) Very True True Partly True Not True

14. The appraisal system brings out the training needs of the employees. a) b) c) d) Very True True Partly True Not True DS/08/10-H-102

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15. The performance appraisal system clarifies the career prospects, aspirations and intentions. a) b) c) d) Very True True Partly True Not True

16. The appraisal system provides a rational basis for salary recommendations. a) b) c) d) Very True True Partly True Not True

17. The company relates reward to your performance. a) b) c) d) Very True True Partly True Not True

18. What kind of an appraisal system will bring out the best of an employee. a) Appraisal by all Superiors b) Appraisal by Immediate Superior c) Appraisal by Reference Team d) Appraisal by Reference Team & Self

THANK YOU

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