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RESEARCH METHODOLOGY

OBJECTIVES:

Primary Objectives:1) To understand the Performance Management System of Indian Oil Corporation Limited.2) To find out whether the employees feel that the current system is helping them to

increase their competencies/performance and to know the perception of employeesregarding various elements of PMS.3) To find out the satisfaction level of employees with their current PMS.4) To find out the areas where there is scope for improvement.

Secondary Objectives:

5) Comparison of Performance Appraisal System and Performance Management System.6) To understand the strategic use of PMS in IOCL to enhance the effectiveness of the

whole organization.

RESEARCH DESIGN:

This present study is based on the descriptive research design. Through descriptiveresearch, I was able to understand the performance management strategy of Indian Oil

Corporation Limited.1) Sample size: 44 employees.2) Sampling method: The employees were selected randomly.

SERVEY QUESTIONNAIRE

Dear Sir/Mam,I am UROOJ currently pursuing MBA from Jamia Hamdard University. I have undertaken a

Research Project based on Performance Management System of your organization. As theemployees play the most important role for any organization I would like to take this opportunity

to understand your perceptions about your own Performance Management System. Pleaseprovide your answers by choosing a numberon a rating scale from 1-5 where 1-5 stands for:

Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

Please feel free to express your views because this research is for the study purpose only and theinformation which you will provide will be treated as confidential. The analysis of data will be

done at the aggregate level.1. Name:______________________________2. Gender: Male Female3. Designation : _______________________

1. I clearly understand myroles and responsibilities.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

2. The KRAs for each role are well defined.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

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3. I am satisfied with the current Performance Appraisal System which is mostly Appraisee

driven.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

4. I feel that Appraisee driven Performance Appraisal gives more empowerment to the

employees.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

5. I feel that when the employee is given the chance to set targets for himself/herself then

he/she is more clear of his/her duties.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

6. I feel that this type of Performance Management System gives the chance for the

development of employees.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree7. When the person is more clearand confident of the job, then his/ her job satisfaction

level increases.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

8. The current Performance Appraisal System helps in tapping the hidden potential of

employees.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

9. I enthusiastically participate in the Performance Management System because I feel that

ultimatelyit is designed to enhance my performance.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

10. Whenever there have been grievances in the past between me and my appraiser

regarding the rating system, I amalways satisfied with the final decisions.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

11. The current Performance Management System gives the chance for innovation as it

allows the appraisee to set targets for himself/ herself.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

12. I feel that the systemis transparent in judging the performance of employees.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

13. The system takes corrective measures to identify the hidden potential of employees.1. Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

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14. The current Performance Management system provides ongoing feedback and

coaching.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

15. There is a performance based payin this system.

1.Strongly disagree 2.D

isagree 3. Somewhat agree 4. Agree5.Stronglyagree

16. The performance based pay helps in self motivation of the employee to achieve

targets.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

17. Due to this type of system, training needs are identified and then relevant training is

provided accordingly.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

agree

18. In this type ofPerformance Management System individual goals are aligned with

those of the other teammembers.

1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Stronglyagree

19. The Performance Management System of the company supports organizational values

and culture.1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

Agree

20. I believe that performance based pay helps in improving the employees performance1.Strongly disagree 2. Disagree 3. Somewhat agree 4. Agree 5.Strongly

Agree

21.Why do I have performance management systems in my organization? (Please tickas many boxes as appropriate)

Retention strategy Reward allocation Identification of training and development needs Facilitates Promotions & Transfers decisions To clarify an employees job requirementsIdentifying barriers to performance Motivational Strategy. Any other (please specify)_____________________

22.What in your opinion are the causes for failure of performance appraisal Systema) Lackof role clarity b) Interval of appraisals c) Lackof communication by superiorsd) Any other pls. specify_____________________________________________________

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23.In general, how effective has your organizations performance managementprocesses proved in improving overall performance?

a) Effective b) Moderately effective c) Ineffective d) Dont Know

24. How are individual, teamand organizational objectives linked?a) Cascading of goals(Top down approach)b)

By enabling employees to see how theirjob contributes to the overallobjectives of the organization through frequent interactions.

c) Comparing employee performance with work groupsd) Any other please specify__________________________________

25. I feel that there is an improvement on my competencies over the years.a) Knowledgeb) Attitudec) Skilld) Values

DATA INTERPRETATION AND ANALYSIS

1.I clearly understand my roles and responsibilities.

2.The KRAs for each role are well defined.

3.I am satisfied with the current Performance Appraisal System which is mostly Appraisee driven.

31

10

1 1 1

0

5

10

15

20

25

30

35

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

13

25

6

0 0

0

5

10

15

20

25

30

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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4.I feel that Appraisee driven Performance Appraisal gives more empowerment to the employees.

5.I feel that when the employee is given the chance to set targets for himself/herself then he/sheis more clearof his/her duties.

6.I feel that this type of Performance Management System gives the chance for the developmentof employees.

5

22

13

4

00

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

9

25

7

2 1

0

5

10

15

20

25

30

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

23

17

12

1

0

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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7.When the person is more clear and confident of the jo b, then his/ herjo b satisfaction levelincreases.

8.The current Performance Appraisal System helps in tapping the hidden potential of employees.

9.I enthusiastically participate in the Performance Management System because I feel thatultimately it is designed to enhance my performance.

10

25

6

2

00

5

10

15

20

25

30

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

23

20

0 1 00

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

3

25

8 7

1

0

5

10

15

20

25

30

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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10.Whenever there have been grievances in the past between me and my appraiser regarding therating system, I am always satisfied with the final decisions.

11.The current Performance Management System gives the chance for innovation as it allows the

appraisee to set targets for himself/ herself.

12.I feel that the system is transparent in judging the performance of employees.

7

21

10

3 3

0

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

7

21

86

1

0

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

6

18

14

5

1

0

5

10

15

20

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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13.The system takes corrective measures to identify the hidden potential of employees.

14.The current Performance Management system provides ongoing feedback and coaching.

15.There is a performance based pay in this system.

5

17

15

6

1

0

2

4

6

8

10

12

14

16

18

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

1

15

18

9

1

0

5

10

15

20

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

1

13

15

13

2

0

2

4

6

8

10

12

14

16

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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16. The performance based pay helps in self motivation of the employee to achieve targets.

17.Due to this type of system, training needs are identified and then relevant training is providedaccordingly.

18.In this type of Performance Management System individual goals are aligned with those ofthe other team members.

10

22

7

32

0

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

11

20

9

4

00

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

0

18

12

86

0

5

10

15

20

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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19.The Performance Management System of the company supports organizational values and culture.

20.Ibelieve that performance based pay helps in improving the employees performance

Average ratings on each qestion was calculated for all 44 respondents from Quaet No. 1 to Quest No.20.Question wise average is depicted as under:

6

22

11

4

1

0

5

10

15

20

25

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

8

25

7

4

00

5

10

15

20

25

30

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

12

19

9

4

00

5

10

15

20

Strongly Agree Agree Somewhat agree Disagree Strongly Disagree

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The analysis of first 20 questions can be done by plotting a bar graph which is average(mean) of

responses of each question.Here on the scale of5 let us consider 2.5 as to be median which will

divide the scale of 1-5

. The score more than 2.5

reflects strong sense of agreement of therespondent.Question wise mean of all the 44 respondents:

Roles and Responsibilities clearly understood:MEAN:

Standard Deviation:

KRAs for each role well defined:MEAN:

Standard Deviation:

Satisfaction with the current e-PMS:MEAN:

Standard Deviation:

Current e-PMS gives empowerment:MEAN:

Standard Deviation:

When employees are given chance to set targets for themselves then they are more clear withtheir duties:

MEAN:

Standard Deviation:

Current e-PMS develop employees:MEAN:

Standard Deviation:

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

0.85

0.81

0.87

0.91

0.81

4.57

4.16

3.64

3.89

4.34

4.05

0.64

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Clarity of job is directly related to job satisfactionMEAN:

Standard Deviation:

e-PMS tap hidden potentialMEAN:

Standard Deviation:

I enthusiastically participate in e-PMS:MEAN:

Standard Deviation:

In situations of grievances I am always satisfied with the final decisions:MEAN:

Standard Deviation:

Current e-PMS gives chance for innovation:MEAN:

Standard Deviation:

Current e-PMS is transparent:MEAN:

Standard Deviation:

Current e-PMS takes measures to identify hidden potential:MEAN:

Standard Deviation:

Current e-PMS provides ongoing feedback and coaching:MEAN:

Standard Deviation:

The system incorporates Performance based pay :MEAN:

Standard Deviation:

Performance based pay helps in self motivationMEAN:

Standard Deviation:

Training needs identified and aligned with e-PMS:MEAN:

Standard Deviation:

0.63

0.93

1.00

0.95

0.95

0.85

0.94

1.02

0.90

1.08

1.06

4.48

3.50

3.59

3.52

3.63

3.43

3

.14

2.95

3.80

3.86

2.95

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Individual and team members goals are alignedMEAN:

Standard Deviation:

Current e-PMS supports organizational values and cultureMEAN:

Standard Deviation:

Performance based pay improves performanceMEAN:

Standard Deviation:

MEAN OF MEAN: 74.87/20 = 3.74

Above 3.74 = 4.57, 4.48, 4.34, 4.16, 4.05, 3.89, 3.89, 3.86, 3.84, 3.80 (highest to lowest - Areas

of Strength).

Below 3.74 = 2.95, 2.95, 3.14, 3.43, 3.5, 3.52, 3.59, 3.63, 3.64, 3.64 (lowest to highest - Areasfor improvement).

FINDINGS

By analyzing the results of the Bar Graph of first 20 Questions we come to the conclusion thatmost of the respondents are clear of the main purpose of thier performance and agrees to the

fact that it supports improvement of the performance.

Majority of employees agree that e-PMS is successful in IOCL. KRAs for each are well defined Appraisee driven performance management system facilitates satisfaction, empowerment and

development of employees. Clarity of job roles leads to increase in satisfaction level. Current e-PMS helps in tapping hidden potential and it is transparent but still there is a scope for

improvement.

It supports organizational values and culture. Grievances handling system is successful. The current e-PMS aligns the individual goals with the organization goals. It does not provide much coaching and feedback.

RECOMMENDATIONS

Following are the areas of improvement:1. The current e-PMS aligns the individual goals with the organization goals. But level of

improvement is needed.

2. The system should provide scope for identification of training needs.3. Communication system needs improvement.4. Goal setting should be done in a timely manner.5. For the people working in a same department in the same grade the roles are so diverse

that it becomes difficult for the appraiser to identify their potential for promotion, so there

should be some common criteria for comparing the performance two employees working in

a same department and in the same grade.

0.92

0.83

0.92

3.64

3.84

3.89

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