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Transcript of H.R.management Report
A
SUMMER TRAINING PROJECT REPORT
ON
PERFORMANCE MANAGEMENT SYSTEM
Submitted in partial fulfillment for the award of two years
fulltime Dual degree master’s programme in management
(2010-2012)
Name of the company: Submitted by:
Pyrotech Electronics Private Ltd. Shweta Audichya
PACIFIC INSTITUTE OF MANAGEMENT AND TECHNOLOGY
Pacific academy of higher education and research
Pacific Hills, Airport road,
Pratanagar Extension,
Udaipur 313003
ACKNOWLEDGMENT
I wish to express my sincere gratitude to Prof. K.K.Dave, Director Pacific Institute Of
Management And Technology, Udaipur for providing me an opportunity to complete my
project work on “how performance management system works” at Pyrotech Electronics
Private Ltd. I sincerely thank to my project guide Prof. Narendra Chawda, faculty PIMT and my
mentor for guidance and encouragement in carrying out this project work. I am really thankful to
my mentor for the constant reminders and much needed motivation.
My special thanks to my supervisor “Ms. Saumya Dwivedi – Human Resource Manager” for
her kind co-operation to the completion of my project work. I also wish to express my gratitude
to the officials and other staff members of “Pyrotech Electronics Private Ltd” who rendered their
help during the period of my project work.
At Last I wish to avail myself of this opportunity, express a sense of gratitude and love to my beloved
parents for their providing strength, help and for everything. Last but not the least I would like to thank
God who made all things possible.
With Sincere Thanks,
SHWETA AUDICHYA
CERTIFICATE
This is to certify that Ms. SHWETA AUDICHYA a student of Dual Degree Masters programme
in Management, Pacific Institute Of Management And Technology, Udaipur has successfully
undergone her summer training in HR Department of Pyrotech Electronics Pvt. Ltd. from May 23
2011 to July 10,2011.
She has done the project on Performance Management System. During her study of research she has
worked hard and made all her efforts to complete the project.
We wish her all success in future.
Company Name Company Seal
Pyrotech Electronics Pvt. Ltd.
Designation
Signature
PREFACE
Practical knowledge means the visualization of the knowledge, which we read in our books.
For this, we perform experiments and get observations. Practical knowledge is very important
in every field. One must be familiar with the problems related to that field so that he may solve
them and become a successful person.
After achieving the proper goal in life, a manager has to enter in professional life. According to
this life, he/she has to serve an industry, may be public or private sector or self-own. For the
efficient work in the field, he must be well aware of the practical knowledge as well as
theoretical knowledge.
To be a good manager, one must be aware of the industrial environment and must know about
management, working in the industry, labor problems etc. so he/she can tackle them
successfully.
Due to all the above reasons and to bridge the gap between theory and practical, our curriculum
provides a practical training of 2 months. During this period, a student works in the industry
and gets all type of experience and knowledge about the working environment.
I have undergone my summer training (after 2nd semester) at “Pyrotech Electronics Pvt. Ltd.”
in “Udaipur”. This report is based on the knowledge, which I acquired during my training
period.
EXECUTIVE SUMMARY
For any student pursuing higher studies in a professional course, especially in management, the
research project is a necessary for all round development of skills and l\knowledge. As a part of
the course curriculum, each and every year student has ton undergo “major research project” in
the real world & experience the working in and environment.
I as fortunate to get the opportunity in the well established conglomerate “A STUDY ON
PERFORMANCE MANAGEMENT SYSTEM”. It enables special focus and concentrated
efforts on the major research project.
Under the research project, I have done study performance management system at Pyrotech
Electronics Private Ltd. The rationale for this was:
1. To manage performance and align individual objectives to business objectives.
2. To help appraise to give his/hr best performance by focusing on major value adding results.
3. To motivate the employees towards the organizational goals.
4. To help him/her become aware of his/hr strengths and to bring some areas for improvement
to his/her attention.
Such study is useful as it help appraise on focusing his/hr major value.
DECLARATION
I, SHWETA AUDICHYA, student of PGDM of, Pacific Institute Of Management And
Technology, Udaipur, hereby declare that the project report on “how performance management
system works” at Pyrotech Electronics Pvt. Ltd., Udaipur, is an original and authenticated work
done by me.
I further declare that it has not been submitted elsewhere by any other person in any of the
institutes for the award of any degree or diploma.
SHWETA AUDICHYA
Date:
TABLE OF CONTENTS
Title Page No.1. Acknowledgement2. Preface3.Executive Summary
Chapters1. Introduction
Introduction of HR Performance Management System
2. Company Profile3. Objective and Rationale of the study4. Research methodology
Introduction & objective Research Design Data collection Instruments
5. Data Analysis and Interpretation6.Findings,Suggestions, Conclusion & Limitations7. My Learning8. Bibliography
CHAPTER - 1
INTRODUCTION OF THE PROJECT
“PERFORMANCE MANAGEMENT SYSTEM”
INTRODUCTION
Human Resource
Human resource is a term used to describe the individuals who comprise the workforce of
an organization, although it is also applied in labour economics to, for example, business
sectors or even whole nations. Human resources is also the name of the function within
an organization charged with the overall responsibility for implementing strategies and
policies relating to the management of individuals (i.e. the human resources). This
function title is often abbreviated to the initials 'HR'. Human resources are a relatively
modern management term, coined in the 1960s. The origins of the function arose in
organizations that introduced 'welfare management' practices and also in those that
adopted the principles of 'scientific management'. From these terms emerged a largely
administrative management activity, co-coordinating a range of worker related processes
and becoming known, in time as the 'personnel function'. Human resources progressively
became the more usual name for this function, in the first instance in the United States as
well as multinational corporations, reflecting the adoption of a more quantitative as well
as strategic approach to workforce management, demanded by corporate management
and the greater competitiveness for limited and highly skilled workers.
PERFORMANCE MANAGEMENT SYSTEM
Performance It is actual results vs. desired results.
A performance management system consists of the processes used to identify, encourage,
measure, evaluate, improve, and reward employee performance at work. Employees’ job
performance is an important issue for all employers. However, satisfactory performance does not
happen automatically; therefore, it is more likely with a good performance management system.
Appraisal serves a two fold purpose: (1) to improve employees work performance by helping
them realize and use their full potential in carrying out their firms missions and (2) to provide
information to employees and managers for use in making work related decisions. Best practices
in Performance Management dictate a proactive approach to the Performance Appraisal or
Review Process that follows the multi-phase design:
Planning Phase: Set mutually agreed upon
goals and guidelines for employee evaluation.
Determine the key objectives for measuring
success in the position and set developmental
goals to encourage greater productivity and
results.
Performance Phase: The longest phase that allows the employee to meet goal and
objectives, develop new skills and track accomplishments or set backs in the system
throughout the process. Managers are reviewing performance and making notes as well.
Assessment Phase: Employees are given an opportunity near the end of the performance
cycle to provide feedback on the preset goals, competencies and objectives to deliver to
their manager. This is when the manager will document feedback on the employee
performance as well. The system allows senior managers to review all submitted
documentation and sign off before the actual review is complete.
Review Phase: Manager and employee sit down together to discuss the year in review.
Reviews can be presented online or printed and e-signature that the review took place can
be captured in the system to protect the organization if legal review should occur.
Performance Management
Performance management is the practice of actively using performance data to improve the
public's health. This practice involves strategic use of performance measures and standards to
establish performance targets and goals, to prioritize and allocate resources, to inform managers
about needed adjustments or changes in policy or program directions to meet goals, to frame
reports on the success in meeting performance goals, and to improve the quality of public health
practice.
Performance Management components include:
Performance Standards - establishment of organizational or system performance standards,
targets and goals and relevant indicators to improve public health practice
Performance Measures - application and use of performance indicators and measures
Reporting of Progress - documentation and reporting of progress in meeting standards and
targets and sharing of such information through feedback
Quality Improvement - establishment of a program or process to manage change and achieve
quality improvement in public health policies, programs or infrastructure based on performance
standards, measurements and reports.
Why Do We Need Performance Appraisals?
Performance Appraisal is an objective system to judge the ability of an individual employee to
perform his tasks. A good performance appraisal system should focus on the individual and his
development, besides helping him to achieve the desired performance. This means that while the
results are important the organization should also examine and prepare its human capital to
achieve this result. This holds true even for new inductees.
Performance Management
It includes activities that ensure that goals are consistently being met in an effective and
efficient manner of any organization.
It focuses on the performance of
An organization
A department
An employee
And many other areas
It is an integrated approach to ensure that an employee performance support &
contributes to the organization strategic goals.
It can be thought of as a cycle
Performance planning where goals and objectives are established.
Performance coaching where a manager intervenes to give feedback
Performance appraisal where individual performance is formally documented and
feedback delivered
It is a formal system of review and evaluation of individual or team task
performance.
Steps in Performance Appraisal
Objectives of Appraisal
Almost all organizations practice performance appraisal in one form or another to achieve certain
objectives. These objectives may vary from organization to organization or even within the same
organization from time to time. It has been found that there are two primary objectives behind
the use of this methodology. One is to use it as an evaluation system and second, to use it as a
feedback system.
The aim of the evaluation system is to identify the performance gap. This means that it helps
determine the gap between the actual performance of the employee and that required or desired
by the organization. The aim of the feedback system is to inform the employee about the quality
of his work or performance. This is an interactive process by which the employee can also speak
about his problems to his superior.
An effective performance appraisal system should emphasis individual objectives, organizational
objectives and also mutual objectives. From the viewpoint of individual objective the
performance appraisal should talk about
Setting work standards
Assessing work performanceproviding feedback (to motivate, correct, and continue their performance)
a) What task the individual is expected to do?
b) How well the individual has done the task?
c) How can his performance be further improved?
d) His reward for doing well.
From the organizational view point a performance appraisal should generate manpower
information, improve efficiency and effectiveness serve as a mechanism of control and provide a
rational compensation structure. In short the appraisal system establishes and upholds the
principle of accountability in the absence of which organization failure is the only possible
outcome. Finally, talking about mutual goals, the emphasis is on growth and development,
harmony, effectiveness and profitability.
Methods of Performance Appraisal
In order to achieve the objectives, a variety of performance appraisal methods have been
developed. The choice of method depends on organizational ethos, its objectives, size, product
and technology.
The most traditional method is the Confidential Report method where the supervisor makes an
evaluation of his subordinate on the basis of certain characteristics like loyalty, intelligence,
conduct, character etc. In some other methods like Graphic Rating scale and the Ranking
Methods though the process is simple it is plagued with subjectivity. In the Critical Incidents
method a balance sheet of on-job-behavior for each employee is generated which can then be
used at the end of the year to see how well the employee has performed.
In 1961 Peter Drucker popularized the Management by Objectives (MbO) method. In this
method the subordinate in consultation with the supervisor chalks out short term objectives
followed by specific actions that he has to carry out. The goals are finally set and are action
oriented. The goals set should be specific, measurable, achievable, review able and time bound
and most importantly it should be aligned with the goal of the organization. At the end of a
specified time period, the activities are jointly reviewed by both the subordinate and his
supervisor. Depending on the performance of the subordinate, the goals are modified or
redesigned for the next period of time.
Methods & techniques to evaluate the performance
Graphic rating scale method
Alternation ranking method
Paired comparison method
Forced distribution method
Critical incident method
Behaviourally anchored rating scales (BARS)
Management by objectives(MBO)
Annual confidential report(ACR)
Performance Management and Performance Appraisal
Many people mistake performance appraisal for performance management. Actually,
performance management is a much bigger system, and is much more valuable to managers and
companies (and employees) than performance appraisal. The essential components or parts of an
effective performance management system include:
Performance Planning (includes employee goal setting / objective setting)
Ongoing Performance Communication
Data Gathering, Observation and Documentation
Performance Appraisal Meetings
Performance Diagnosis and Coaching
Performance Management is an ongoing process of measuring and adjusting performance
continually focusing on behaviours throughout the year. It is a continuous process not an event.
It is not the same as performance appraisal, which is an assessment of the employee’s
performance by both the employee and his superior jointly, with the purpose of allocating a score
that may be used for both development and salary or promotion purposes.
Performance Management includes Performance Appraisal as one of its elements. Performance
Management should became part of day to day workplace behavior. Some organizations have
adopted an online Performance Management system. Going online with performance
management puts ownership of the process in the hands of the individual as opposed to the
traditional manager driven system. It allows direct communication between the individual and
the manager via online journals at times convenient to both. It links performance with the
individual’s learning and development plans and also to the organizational goals, values and
competencies
Uses
HR planning
Availability of data to identify those who have the potential to be promoted.
Recruitment and selection
Predicting the performance of job applicants
Training & development
Point out an employee specific needs for T & D
Compensation
Provide a basis for rational decisions regarding pay adjustments.
Internal employee relation
Such as promotion, demotion, termination, layoff and transfer.
In, Pyrotech group, they have adopted a performance appraisal model in which best-to-worst
ranking methods are used to identify poor performers. The identified poor performers are then
given a time period during which they have to show an improvement in their performance. In
cases where the employee fails to improve his performance he is asked to leave the organization
gracefully and a severance package is offered to him. If the employee refuses to leave then his
service is terminated and no compensation is offered. Advocates of this system feel that it
continually motivates employees to improve their performance since nobody would like to be
included in the poor performance band. But the flip side of this strategy is that employees
become too competitive and team spirit is not nurtured.
Building blocks of an effective performance management process
Direction sharing
Role clarification
Goal setting & planning
Goal alignment
Developmental goal settings
Ongoing performance monitoring
Ongoing feedback
Coaching and support
Performance appraisal
Rewards , recognition & compensation
CHAPTER -2
COMPANY PROFILE
PYROTECH ELECTRONICS PVT. LTD. UNIT II
2.1 COMPANY BACKGROUND We are an ISO-9001 company associated with manufacturing and supply of Control Room Equipment, Electronic Process Control Instruments and Sensors, for last three decades for power plants, process plants and other industries. Pyrotech came in to existence in 1976 and we have registered an average rate of growth of 55%, since inception. We manufacture around 200 different types of instruments. All of our products are subject to 23 stringent tests for quality control (High freq disturbance, ESD, Vibration, high voltage, EMC etc.). We also represent Siemens field instruments, L&T drives, Schneider PLC, Cirronet wireless
radios, Madison Ultrasonic/Radar level transmitter. Our project division has done complete C&I projects for captive power, sponge iron, waste-water and other industries. Our group companies are :-
1.
PEPL unit-1: Electronic Process and Control Instruments.
2.
Pyrotech Control (India) Pvt. Ltd.: Enclosures, Control and Mosaic panels.
3.
PEPL unit-2: Control panels, control desks and Mosaic panels and Industrial furniture.
4.
Tempsens Inst. (I) Pvt. Ltd.: Temperature sensors, Thermocouples and RTD’s.
We have wide acceptance amongst OEM’s and system integrators namely BHEL, NTPC, Siemens, L&T, ABB, Honeywell Ltd., Yokogawa India Ltd., etc. Our consultants include EIL, PDIL, HOWE, Holtec, Lurgi, Tata Consulting Engineers, Toyo Engineering India Ltd., etc. Further, we have been supplying our products and expertise to a wide array of customers in Power, Petrochemical, Chemical, Fertilizer, Food processing, Metallurgy, Cement, Sugar and other Industries.
In the journey of over 2 decades & more, we have expanded to match global vision & progressed steadily through up gradation of technology, quality and skills. Today, we are one of the India's leading manufacturers of automation & control equipment. Pyrotech has an exceptional multi-disciplinary array of products - Panels, Enclosures, LVS, LIR/LIE, Computer Consoles, Electronic products and Office-Industrial furniture. To reap advantages of Global Integrated Chain, we collaborated with companies like Synelec (LVS), Subklew (Mosaic Tile System), & Weigel Meters (Meters). In every true sense of the word, we have become, “The Control Room Solutions Provider.”Approved by major consultants and working with large OEMs, we are in position to cater to the needs of a Varity of industries, ranging from Power to Petrochemicals, Metering to Railways, Material Handling to Process Control, Cement to Defense and many more.
2.2 ORGANIZATION P OLICY
Our organization Policy is to manufacture defect free Panels, control desks, Process control systems & industrial enclosures to Provide value for money & customer satisfaction. The organization wants to create ZERO DEFECTS working culture by continually improving quality, technology & skills.
2.3 PYROTECH GROUP
Pyrotech Group(Control &
InstrumentationElectronic & Sensor
Equipment)
Pyrotech Electronics
Pvt. Ltd. Unit I
ISO 9001:2000(Electricals & Electronics)
Pyrotech Electronics
Pvt. Ltd. Unit II
ISO - 9001 : 2008
EMS 14001 : 2004
OHSAS : 18001 : 2007
(Control & Instrumentatio
n)
Tempsens InstrumentIndia
Pvt. Ltd.ISO 9001:2000
(Temprature Sensors)
Pyrotech Marketing & Projects Pvt.
Ltd. (Marketing)
Annuniciator Bar Graphindicator
Transducer Scanner
Industrial Automation
Thermocouple Resistance
Thermometers(RTD's)
Services, Marketing PLC
Projects
2.4 QUALITY POLICY "Pyrotech Electronics Pvt. Ltd. is committed for customer satisfaction by design, manufacturing & supply of Process control instruments as per agreed customer requirements by employing trained manpower, ensuring in time delivery and continual improvement in quality system & technology."
2.5 VISION FOR TOMORROW
Our work is focused on creating and continuously improving a sensitive organization capable of reacting promptly to market requirements and customer’s need. We will continue to earn customer's trust with highest quality of services.WE RESEARCH, PLAN, DESIGN AND INVEST FOR FUTURE.
2.6 COR PORATE MILESTONES OF THE ORGANIZATION
1976 Pyrotech is founded in Udaipur. First products Thermocouple and RTD
1980-1982 Diversification into electronics and panel making
1982 First turnkey instrumentation package for JK White Cement
1984 Prototype development of ALCOSY
1985 Separate temperature sensor division, Tempsens established
1986 Landmark year as BHEL Bangalore approves and starts using ALCOSYenclosures
1990 HZL Chanderia plant instrumentation package completed
1991 Electronics division separated from the panel division, panels division named Pyrotech Controls (I) Pvt. Ltd.First Line Side Equipment developed and installed for NTPC
1992 Training modules for TISCO developed
1993 High performance 19 ’’ Racks developed for defence – supplied toIndian Army
1994 Major Power projects executed with mosaic tile system
1998 New factory with a space of 50,000 sq. ft set up at Udaipur, namedPyrotech Electronics Pvt. Ltd., Unit#2
1999 Tie up with Synelec, France for Videowall, Siemens Germany for PA1products, Dr. Thiedig for SWAS
ISO 9001 CERTIFICATIONRAJIV GANDHI NATIONAL QUALITY AWARD
2000 Control Room Design – new concept in Indian market
2001 Prestigious projects executed – NTPC Simhadri, UPSEB, BSES Seismic approval for mosaic control desk at 3.5g
2002 Indigenous technology for mosaic tiles developed for Delhi MetroRailway Corporation
2003 Major orders executed for display walls for NTPC Rihand,Ramagundam and Tata Power
2004 New modular furniture range for industrial and offices developed. Sales Turnover Rs. 25 Crore in 2004, Group Turnover – Rs. 40 Crore
2005 Major turnkey instrumentation package for NPCIL Kaiga and Rawatbhata. Sales Turnover Rs. 32 Crore in 2005, Group Turnover – Rs. 56 Crore Manufacturing of MCC draw out and PCC panels started in 2005.
2006 Quantum increase in turnover from Rs. 32 crores to Rs.55 crores. Significant small and big order were received in this year.
2007 A new unit for Control Room & Office furniture started in 2007, in the name of Pyrotech Workspace Pvt Ltd, Udaipur with an area of about 80,000 sq ft.Major order received from Power Machines Ltd. Russia for NTPC Sipat Project (3 x 660 MW) for UCD, UCB and Marshalling Panels.
2008 Accreditation from DNV, ISO 14001 : 2004 and OHSAS 18001 : 2007 received.
2009 New factory with a space of 70,000 Sq. ft. set up at Udaipur in the name of Pyrotech Electronics Pvt. Ltd. Unit # 4. 12 KV KIOSK developed for JVVNL.
2010 Major order from BHEL for Video Wall (56 Cubes) for NTPC Dadri Korba and Farakka received.Major order from Invensys for Video Wall (96 Cubes) for NTPC Mauda, Rihand and Vindhyachal received.
Exceeding customer satisfaction is the top priority. We have Industry specific dedicated sales engineers, this provides a updated knowledge and the best available technological product design for particular industry. We also provide expert support during product selection, customization and commissioning, to achieve maximum techno-economic effectiveness. The close partnership with our customers starts long before goods are delivered intensive individual consultation plays a central role for us .
Our marketing route are direct and established. You can rely on them. Our distribution and service outreach underlines our strong customer orientation. Our products fulfill the most exacting demands and have been tested under extreme conditions. We provide a comprehensive guarantee.
During the last 30 years, our team of professionals has recorded numerous achievements, generating remarkable growth. Our staff of industry-experienced engineers are dedicated to the constant improvement and development of products. The managerial staff and technical personnel have good training, technical knowledge and experience for their assigned functions.
Our team work has resulted in successful development of the products, the system, the approach, the services and above all, the confidence of our customers.
2.7 PRODUCTS PANELS & CONTROLS DESKS
Mosaic Panel & Desk
Mimic Panel
Control Panel
PLC Panel
Marshalling Panel
Networking Panel 19"
Transducer Panel
19" Rack Panel
MCC Panel
Purge & Explosion Proof Panel
Junction Box
Metering Box
LIE/LIR
Shelter Panel
HT Panel
NG & LAVT Cubicle
Test Bench
Computer Consoles
SYSTEM INTEGRATIONS – DISTRIBUTORSHIP
SYNELEC - Large Video Screen
SUPTEAM - Mosaic Tile System
WEIGEL - Panel Meters And Accessories
Cheval - 19" Rack Solutions
WORKSPACE SOLUTION
Industrial Furniture
Office Furniture
2.8 DEPARTMENTS
2.8.1 HR
Functions of Senior Manager- Talent Management/C&B/Partner
Compensation and Benefits:
development and integration of the organization as a whole
Various individual development plans and strategies are planned, executed and
proper follow up is done.
HR Operations:
Performance Management.
Training (Learning and Development):
Employee Relations
2.8.2 Commercial
2.8.3 Customer Service and Support
2.8.4 Finance
2.8.5 Stores
2.8.6 Design
2.8.7 CNC
2.8.8 Fabrication
2.8.9 Painting
2.8.10 Marketing and sales
2.8.11 Internal Tubing
2.8.12 Wiring
2.8.13 Quality Assurance
2.8.14 Packing
2.8.15 Dispatching
2.9 AWARDS :
November - 1993 : "Excellence in Electronics" award by Department of Electronics.
September - 1994 : Pyrotech Electronics Pvt. Ltd. Unit-I was honoured with "ELCINA" award for Research & Development.
November - 1999 : Pyrotech Electronics Pvt. Ltd Unit-II was honoured with "Rajiv Gandhi National Quality award"
"Council for Business Practice" Award for Service Price Quality
2.10 SWOT analysis
STRENGTH
Lean cost structure
Effective business model
Innovation leadership
Event sponsoring
Good marketing and distribution
strategies
Strategic alliance with suppliers
Quick responsiveness
Strong R&D: taken over from
IBM
WEAKNESS
Unable to maintain sustained growth
rate in all market segment
Ignoring potential market
Retaining of largest shares by
competitors
Poor global perception
High delivery time:3 weeks
OPPORTUNITY
Increasing global demand for PC
Specialty shops proving one stop
platform for distribution
Government organizations
increasing their spending on IT
Increasing product portfolios/
product lines
Development of Junction Boxes
Converting manual orders to
automotive orders
THREAT
Competition threat from both local
and international markets
Industry reaching maturity
Poor and irregular maintenance of
machines
Price war
Emerging small firms
International competitors forming
alliances with local competitors.
2.11 CUSTOMERS LIST
OEM's : Asea Brown Boveri Ltd. Instrumentation Ltd. Larsen & Toubro Ltd. Siemens Ltd. Thermax Ltd.
Chemical : SRF Ltd. Indian Petrochemicals Corporation
Ltd. Rajasthan State Mines and
Minerals Ltd. Tata Chemicals Ltd. Mysore Petro Chemicals Ltd.
Power :
National Thermal Power Corporation Ltd.
Karnataka Thermal Power Corporation Ltd.
Maharashtra State Electricity Board
Andhra Pradesh State Electricity Board
Badarpur Thermal Power Station.
Fertilizer : IFFCO National Fertilizer Ltd. Chambal Fertilizer & Chemicals
Ltd. Coromandel Fertilizer Ltd. Rashtriya Chemical & Fertilizer
Ltd.
Sugar :
Daurala Sugar Works The Dhampur Sugar Mills Ltd. Ramgarh Chini Mills Modi Sugar Mills Siel Sugar
Synthetic : Asian Paints Century Rayon Grasim Industries Ltd. Indian Rayons and Industries Ltd. Indo Rama Synthetic (I) Ltd.
Steel : Steel Authority of India Ltd. ESSAR Steel Ltd. TISCO Vishakapatnam Steel Plant SunFlag Iron and Steel Company
Ltd.
Cement : Shree
Cement Ltd. Vikarm
Cement Ltd. Binani
Cement Ltd. The
J.K. White Cement
Madras Cement
Lafarge India Ltd.
The India
Associated Cement Co's Ltd.
J.K. Cement Ltd.
Cement Ltd. Century
Cement
CHAPTER -3
OBJECTIVES OF THE STUDY
OBJECTIVES OF THE STUDY
Objectives of the study:
To carry out the study of PEPL, we framed the following objectives:
1. To study the Effectiveness of the Performance Management System at Pyrotech
Electronics Pvt. Ltd. (PEPL) from the perspectives of the employees.
2. To understand the shortcomings of the Performance Management System at Pyrotech
Electronics Pvt. Ltd. (PEPL)
3. To come out with solutions that will help the organization in formulating better strategies
for the development of the employees and the organization.
4. To identify the technique of performance appraisal followed in PEPL.
5. Employee attitude towards the present appraisal system.
6. Review of the current appraisal system in order to 1. Enhance productivity 2. Attain global standards
7. To provide suggestions & recommendations from the study conducted.
CHAPTER -4
RESEARCH METHODOLOGY
Research is common parlance to refer to a search for knowledge. Research comprises defining
problem, formulation hypothesis or suggesting solution, collecting, organizing or evaluating data
and reaching conclusion and at last carefully testing conclusion to determine whether fit the
formulated hypothesis.
Research is a careful investigation or enquiries for new facts in any branch of knowledge.
Researchers are basically systematic enquiry with customer’s critical examination with objective
to search new facts or interpret know facts in light.
When we talk of research methodology, we not only talk of the research methods but
also the comparison of the logic behind the methods, we used in this context of our
research study and explain why we are using a particular method or technique and why
using the others. Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
systematically. In this, we study the various steps that are generally adopted by
researcher in studying his research problem along with the logic behind them.
“The present study is based upon the case study method of research to investigate
procedures at micro level”.
Research always starts with a question or a problem. Its purpose is to answer to questions
through the application of the scientific methods. It is a systematic and intensive study directed
towards a more complete knowledge of the subject studies. Once the problem is defined properly
then one can easily check out the Objectives for the research.
4.1. Introduction to the Project Topic:
Performance management is the activity of tracking performance against targets identifying
opportunities for improvement - but not just looking back at past performance. The focus of
performance management is the future - what do you need to be able to do and how can you do
things better? Managing performance is about managing for results. Performance-based
management at any level in the organization should demonstrate that:
You know what you are aiming for
You know what you have to do to meet your objectives
You know how to measure progress towards your objectives
You can detect performance problems and remedy them
4.2 Statement of the problem
Measuring employee performance has come a long way from the annual performance appraisal
to an ongoing performance management system. Performance Management is one of the key
processes that, when effectively carried out, helps employees know that their contributions are
recognized and acknowledged. But at times it gets diverted from its objectives.
There is a need that the opinion of the appraisees about the Performance management system be
discussed with the management so as to make the system highly effective. Management desires
information on the perception of the employees towards the existing performance management
system and hence wants to gauge its effectiveness. Hence this study is being conducted and
therefore the statement of the problem is:
“To study the Effectiveness of the Performance Management System at Pyrotech
Electronics Pvt. Ltd.”
4.3 Title of the study:
The project is titled as “A Study on the Effectiveness of the Performance Management System at
Pyrotech Electronics Pvt. Ltd.
4.4 Scope of the study:
The study is exclusively conducted on the employees of Pyrotech Electronics Pvt. Ltd. who have
undergone at least one appraisal cycle. The study is conducted to analyze and obtain their
insights about the Performance Management System. It was carried out within the office at
Udaipur city over a period of six weeks.
4.5 Research Methodology:
RESEARCH METHODOLOGY
• Type of Research Descriptive
• Type of Data Primary
• Data Collection Method Questionnaire
• Sample Size 50
• Sample unit Employees of PEPL.
• Sampling Technique Random Sampling
3.6.1 Sources of Data
For the purpose of the study, both primary and secondary data are utilized.
Primary data is collected through self administered structured questionnaire. Each
respondent was interviewed and data was collected.
The questionnaire contained fourteen questions.
Secondary data is collected from Internet, Newspapers and magazines, company web
link.
3.6.2 Research Type:
The type of research adopted for the project is descriptive research. It refers to those studies
used to describe phenomena associated with a subject population or to estimate proportions of
the population that have certain characteristics. Descriptive research basically means discovery
of association among different variables.
3.6.3 Sampling Plan:
Type of sampling: Random sampling is a common probability method. The researcher
selects the sample randomly.
Sampling Unit: The study is conducted on the employees of PEPL who have at least
undergone one appraisal cycle. The survey was conducted to know about their perception
towards the Performance Management System. The main motive behind the survey is to
study the effectiveness of the PMS from the employees’ perspective.
Sample Size: A sample of fifty respondents was considered as sample size for the
research.
3.6.4 Research Instrument
The main tool that has been used in data collection is questionnaire that has been constructed for
this purpose. Primary data was collected by means of questionnaire which was distributed to the
employees of Pyrotech Electronics Pvt. Ltd. who have at least undergone one appraisal cycle.
3.6.5 Data Collection Method
The survey was conducted by way of personal interview wherein the researcher gave the
respondent the questionnaire and initiated a two-way conversation to obtain information from the
participant.
Evaluation has been done in the phases:o Filling up of questionnaire by the employeeso Methodology used was one to one discussion with employee.o The final analysis is done on the basis of information extracted from the filled
questionnaire.
Chapter-4
Data Analysis and Interpretation
4.1. ANALYSIS AND INTERPRETATION: The present chapter focuses on the results
derived to analysis and interpretation of the primary data.
Table 4.1 Showing frequency of the respondent’s familiarity with the process of
Performance Management System :
Frequency Percent
Yes 43 86
No 7 14
Total 50 100
Graph 4.1 Showing frequency of the respondent’s familiarity with the process of
Performance Management System
86%
14%
Percentage of the employees familiarity with the process of Performance Management System(PMS)
YesNo
Inference:
86% of the respondents said YES when asked whether they were familiar with the process of Performance Management System
Table 4.2 Showing perception of employees regarding PMS’s simplicity:
Frequency PercentYes 41 82No 9 18Total 50 100
Graph 4.2 Showing perceptions of employees regarding PMS’s simplicity
82%
18%
Perception of employees regarding PMS’s simplicity
YesNo
Inference:
Majority of the respondents (82%) feel that PMS is simple, 18% of respondents did not agree.
Table 4.3 Showing percentage of employees satisfied with the current PMS:
Frequency Percent
Yes 40 80
No 10 20
Total 50 100
Graph 4.3 Showing percentage of employees satisfied with the current PMS
80%
20%
Percentage of employees satisfied with the current PMS
YesNo
Inference:
Majority of the respondents (80%) are satisfied with the current PMS, and 20% of respondents are not satisfied with it.
Table 4.4 Showing percentage of employees satisfied with rating system:
Frequency Percent
Yes 42 84
No 8 16
Total 50 100
Graph 4.4 Showing percentage of employees satisfied with rating system
84%
16%
Percentage of employees satisfied with rat-ing system
YesNo
Inference:
Majority (84%) of the respondents are satisfied with the rating system ,only a few (16%) are not
satisfied and have given some suggestions to improve the rating system.
Table 4.5 Showing percentage of employees, who gets motivated from the recognition given
to high performers:
Frequency Percent
Yes 43 86
No 7 14
Total 50 100
Graph 4.5 Showing percentages of employees, who gets motivated from the recognition
given to high performers
86%
14%
Percentage of employees, motivated from the recognition given to high performers
YesNo
Inference:
Majority (86%) of the respondents get motivated when the recognition is given to the high
performers.
Table 4.6 Showing percentage of employees who feel that the PMS is biased:
Is it biased?
Frequency Percent
Yes 12 24
No 38 76
Total 50 100
Graph 4.6 Showing percentages of employees who feel that the PMS is biased
24%
76%
Percentage of employees who feel that the PMS is biased
YesNo
Inference:
Majority (76%) of respondents feel that PMS is not biased and some of them (24%) feel that it is
biased.
Table 4.7 Showing response regarding getting opportunity to take part in goal setting:
Sufficient opportunity to take part in goal setting
Frequency Percent
Yes 45 90
No 5 10
Total 50 100
Graph 4.7 Showing responses regarding getting opportunity to take part in goal setting
90%
10%
Percentage of employees regarding getting opportunity to take part in goal setting
YesNo
Inference:
Majority (90%) of the respondents gets opportunity to take part in the goal setting, while some of
them don’t get sufficient opportunity to take part in goal setting.
Table 4.8 Showing response of employees regarding discussing targets:
Line managers always discuss performances and targets with you
Frequency Response (in %)
Yes 43 86
No 7 14
Total 50 100
Graph 4.8 Showing response of employees regarding discussing targets
86%
14%
Involvement of employees in discussing targets with managers
YesNo
Inference:
Majority (86%) of employees feel that line managers always discuss performances and targets with them .
Table 4.9 Showing response regarding autonomy to plan, organize and do the work
Frequency Response (in %)
Yes 45 90
No 5 10
Total 50 100
Graph 4.9 Showing response regarding autonomy to plan, organize and do the work
90%
10%
Percentage of employees regarding autonomy to plan, organize and do the work
YesNo
Inference:
Majority of employees (88%) feel that employees are empowered and have the autonomy to plan, organize and do their work, which shows a level of comfort among the employees.
Table 4.10 Showing response regarding who should do the appraisal?
Options Frequency Response ( in % )
(a) Superior 10 20
(b)Subordinate 0 0
(c)Self Appraisal 2 4
(d)Consultant 6 12
(e)All of the above 32 64
Graph 4.10 Showing responses regarding who should do the appraisal?
20%
4%
12%64%
Perception of employees regarding "who should do the appraisal"
(a) Superior(b)Subordinate(c)Self Appraisal(d)Consultant(e)All of the above
Inference: Majority (64%) of employees feel that appraisal should done by each one (superiors, subordinates, self, consultant).While 20% think that appraisal should done by superiors.
Table 4.11 Employees timely get automatic E-Mail reminders, and prompts, when targets are due.
Options No. of respondents Percent
(a) Yes 46 92
(b) No 4 8
Graph 4.11 Showing response regarding automatic E-Mail reminders, and prompts, when targets are due
92%
8%
Perception of employees regarding reminders, when targets are due
(a) Yes (b)No
Inference: From the above figure we can conclude that 92% of the employees are getting automatic mails timely when the targets are due. It seems that how careful the company is about the target achievement and the company wants employees to achieve the given targets on time.
System needs to have an overview that where the problem exist with these 8% employees. May be some technical problem is there so fix it.
Table 4.12 Compensation on the basis of the performance evaluation creates disputes in the organization.
Options No. of respondents Percent
(a) Agree 13 26
(b)Disagree 37 74
Graph 4.12 Showing response regarding Compensation on the basis of the performance evaluation creates disputes in the organization.
26%
74%
Showing response regarding Compensation on the basis of the performance evaluation creates disputes
in the organization.
(a) Yes (b)No
Inference: Here as we can see that 74% of the employees disagree with the statement that means
compensation on the basis of the performance evaluation do not create disputes in organisation
and this method is good enough.
On considering the portion of the employees saying it creates disputes which is only 26%,
system just need to give an overview to the process.
Table 4.13. Showing response of PMS in polishing skills & performance area
Options Frequency Response ( in % )
Yes41
82
No9
18
Graph 4.13 Showing responses of PMS in polishing skills & performance area
82%
18%
Perception of employes regarding improvement in skills & performance area through PMS
Yes No
Inference: If the process of appraisal does not lead to the improvement of the skills and
proficiency of the employees, the very purpose of appraisal becomes illogical. In the
survey conducted it was observed that nearly 82% of the respondents agree that
Performance Appraisal does leads to polishing the skills of the employees.
Table 4.14. Showing response of employees towards the personal likings do come in the process of appraisal while appraising an employee.
Options Frequency Response ( in % )
Yes 33 66
No 17 34
Graph 4.14 Showing response of employees towards the personal bias while appraising an employee
66%
34%
Perception of employees regarding personal bias
Yes No
Inference: In the process of appraising, both the parties are human being, that is, the one
who is being appraised and the other who is appraising. Thus, there bound to be
subjectivity involved, be it an objective way of appraising.
Thus, when asked from among the sample size of 50 respondents, as huge as 66%
responded that personal bias do creep in while appraising an individual. Hence, we can
say that personal likings do come in the process of appraisal.
Chapter-5
Findings, Suggestions,Conclusion & Limitations
5.1 FINDINGS:
a) Majority of the employees (86%) are familiar with the process of Performance Management
System in Pyrotech Electronics Pvt. Ltd.
b) Opinions of the respondents about the simplicity of the PMS are mixed. Majority of the
respondents (82%) find it simple whereas others consider it to be moderately complex.
c) It was found that majority of the employees (80%) are satisfied with the current Performance
Management System (PMS) whereas (20%) not satisfied.
d) Majority of the employees (84%) are satisfied with the rating system and some of them are
not satisfied and have given some suggestions to improve it.
e) Majority of the employees (86%) respondents feel that Recognition given to high performers
motivates the employees.
f) 76 % Employees at Pyrotech Electronics Pvt. Ltd. believe the PMS is not biased. Majority of
the respondents in the survey gave a negative response when asked whether it is biased whereas
24% of the respondents consider it to be biased.
g) Employees also have enough courage to discuss all the matters of their goals with the
manager. Majority (90%) of the employees feel that they get sufficient opportunity to take part in
goal setting whereas 10% do not feel so.
It was also found that superiors help their subordinates at the time of need.
h) 86% Employees also agree that line managers always discuss performances and targets with
them.
i) 88% respondents feel that Employees are empowered and have the autonomy to plan, organize
and do their work. It shows that employees have freedom to do their work in their own way.
j) Majority (64%) of employees feel that appraisal should done by each one (superiors,
subordinates, self, consultant).While 20% think that appraisal should done by superiors. There is
absence of 360 degree technique of appraisal. The relationship between employees and the
executives is one sided.
k) 92% of the employees agreed that they are getting automatic mails timely when the targets are
due. It seems that how careful the company is about the target achievement and the company
wants employees to achieve the given targets on time.
l) 74% of the employees are disagreeing with the statement Compensation on the basis of the
performance evaluation creates disputes in the organization.
It means compensation on the basis of the performance evaluation does not create disputes in
organisation and this method is good enough.
m) It was observed that most of the respondents (82%) agree that Performance Appraisal does
leads to polishing the skills of the employees.
\n) 66% responded that personal likings do come in the process of appraisal while appraising an
individual.
5.2. RECOMMENDATIONS/SUGGESTIONS:
After having analyzed the data, it was observed that practically there was no appraisal in the
organization. To be an effective tool, it has to be on the continuous basis. This is the thing that
has been mentioned time and again in the report, as, in the absence of continuity, it becomes a
redundant exercise. Before actually deciding drafting what should be the kind of appraisal the
following things should be taken care of:
a) Special training and awareness programs should be conducted for the appraisers and the
appraisees on the purpose and the benefits of Performance Management System. It should create
consciousness and strive for self development.
b) Performance appraisal should not be limited to incentives alone but should be made use for
identifying training needs, career development and self improvement. It should also be used for
promotion and career growth.
c) The performance management system should spell out the growth curve of an employee. The
management should provide with growth plan for each employee and follow it effectively and
efficiently.
d) There should be a special committee which keeps a check on the Performance Management
System and also address all the problems faced by the employees related to their performance
management.
e) Management should conduct regular sessions, group discussions and brain storming exercises
with employees to know about their expectations from the PMS.
f) Peer evaluations conducted by the employee’s co-workers may be initiated. They are the ones
who do the same work and are aware of the co-workers performance.
g) In order to achieve better understanding and to develop skills, development and training
programs are of absolute necessity. So management may conduct training programs based on the
performance management system.
h) The preparation of a comprehensive manual guideline giving the objectives of the system
could be done. The process, the role of the appraiser, appraisees, HRD department and the
reviewing officer should be made clear. The manual should spell out the complete guidelines of
the performance management system.
5.3 Suggestions from Employees
Here are some of the suggestions given by employees
According to employees, PMS should be more transparent as it is only one way now. The
company should have a 360 degree appraisal system, wherein ratings should be given by
managers, peers and subordinates.
Actual facts and figures should be considered for goal setting and there should be two way
communications between manager and employees.
There should be clarity of the parameters for ratings along with soft skills and hard skills
specified.
End date should be provided for the development plans.
The time period for conducting the appraisal should be revised, so that the exercise becomes
a continuous phenomenon.
Transparency into the system should be ensured through the discussion about the
employee’s performance with the employee concerned and trying to find out the grey areas
so that training can be implemented to improve on that.
5.4 CONCLUSION
An organization's measurement system strongly affects the behavior of people both inside and
outside the organization. If companies are to survive and prosper in information age competition,
they must use measurement and management systems derived from their strategies and
capabilities. Performance Management is one of the key processes that, when effectively carried
out, helps employees know that their contributions are recognized and acknowledged.
Performance Management System drives Performance Excellence in the Organization. It is a key
to Strategic success.
The organization has a sound and effective Performance Management System. At Pyrotech
Electronics Pvt.Ltd.it is not considered as a mere routine affair but as a purposive developmental
exercise. It gives supervisors and subordinates an equal opportunity to express themselves under
structured conditions. Organization must keep up the good practices. However, they should focus
on certain aspects like societal perspective, peer evaluations, forming a special committee etc.
Thus, Performance Management System at Pyrotech Electronics Pvt. Ltd. is effective as it
incorporates the major aspects like direction, awareness, support and rewards. It successfully
recognizes and differentiates between high and low performance; brings about a feeling of
transparency and fairness in the evaluation process; Increases the objectivity and accuracy of
measurement of performance; Increases alignment between individual and organizational goals
and increases the performance-reward linkage. It also helps in keeping a check on the
performance by various follow up programs and provides various opportunities for self
development. Hence, Performance Management system at Pyrotech Electronics Pvt. Ltd. is indeed
effective.
5.5 LIMITATIONS OF THE STUDY
A few limitations and constraints came in way of conducting the present study, under
which the researcher had to work are as follows:
Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity.
Though, no effort was spared to make the study most accurate and useful, the “sample
Size” selected for the same may not be the true representative of the Company, resulting
in biased results.
This being the maiden experience of the researcher of conducting study such as this, the
possibility of better results, using deeper statistical techniques in analyzing and
interpreting data may not be ruled out.
In the project, non-random sampling has been used which is a non probability sampling
method; it therefore does not provide estimates of precision.
The sample size is restricted to only those employees of Pyrotech Electronics Pvt. Ltd.
who have at least undergone one appraisal cycle.
The study was done for a short period of time, which might not hold true over a long
period of time.
My Learning
My Learning
My internship at PEPL was a great experience. Before starting the project I was totally naive of
how complex the process of business world could be. My knowledge of subjects and books was
not sufficient enough to provide me a clear view of what organizations are all about, how they
form their strategies, how they achieve their goals and what possibly makes successful
organizations. After a period of six weeks now I find myself in a much better position to explain
what an organization and business is all about. It was indeed my fortune that I got associated
with an organization which has a presence all over and is very much successful in its industry.
In the internship program, I learned about the electronic industry, the company, the various
businesses of the organization and its various products and services. It was a great learning
experience and also gained firsthand knowledge about the company and its activities from
various top notches of the organization. I also got an opportunity to attend Open Forum in the
company, which was very helpful and informative.
I got an opportunity to work with the HR team. I had hands on experience of various functions of
the HR department. Here, I learned to associate my academic knowledge with practical
experience. The company gave me an opportunity to do a study on the effectiveness of the
Performance Management System. During the study, I learnt the complete process and gained a
lot of useful insights on the performance management system. The study helped me to gain
knowledge and exposure about the Performance Management System and its effectiveness.
Thus, the internship program provided me the platform to learn and experience the real business
world and will now help me in better understanding of my academic subjects where I would be
able to associate them with reality. The internship program was an enriching experience indeed.
QUESTIONNAIRE
Dear Sir/ Madam,
I am currently conducting a study about the Performance Management System of this
organization. This is a Part of my studies in PGDM Programme. Your answers will be used
for research only. Please be honest.
Name …………………………………
Department …………………………………
1. Are you familiar with the process of Performance Management System?
(a) Yes (b) No
2. What is your perception regarding PMS’s, is it simple?
(a) Yes (b) No
3. Are you satisfied with the current PMS?
(a) Yes (b) No
4. Are you satisfied with rating system?
(a) Yes (b) No
5. Are you get motivated from the recognition given to high performers?
(a) Yes (b) No
6. Do you feel that the PMS is biased?
(a) Yes (b) No
7. Do you get the opportunity to take part in goal setting?
(a) Yes (b) No
8. Do you think that Line managers always discuss performances and targets with you?
(a) Yes (b) No
9. Do you think that employees are empowered and have the autonomy to plan, organize and do the work?
(a) Yes (b) No
10. Who should do the appraisal?
(a) Superior
(b)Subordinate
(c)Self Appraisal
(d)Consultant
(e)All of the above
11. Employees timely get automatic E-Mail reminders, and prompts, when targets are due.
(a) Agree (b) Disagree
12. Compensation on the basis of the performance evaluation creates disputes in the organization.
(a) Agree (b) Disagree
14. Does appraisal help in polishing skills and performance area?
(a) Yes (b) No
15. Does personal creeps-in while appraising an employee?
(a) Yes (b) No
BIBLIOGRAPHY
Websites:
www.google.com
www.wikipedia.com
www. pyrotechindia.com
www.googlescholar.com
Books:
C. R. Kothari –Research Methodology
Human Resource Management- T N Chhabra