Performance Appraisal Innouva Shoes

Preface

Managing human resources in today’s dynamic environment is becoming

more and more complex as well as important. Recognition of people as a

valuable resource in the organization has led to increases trends in employee

maintenance, job security, etc

My research project deals with “Performance Management System as

carried out at Nouva shoes . In this report, I have studied &evaluated the

performance Management System process as it is carried out in the

company.

In the first section of my report, I have conducted a research study to

evaluate the process of performance Management System as carried out at

Nouva shoes .

The second section of my report deals with a detailed company profile. It

includes the company’s history: its activities and operations, organizational

structure, etc. this section attempts to give detailed information about the

company and the nature of it’s functioning.

The third section deals with performance Management System. In this

section, I have given a brief conceptual explanation to performance

Management System. It contains the definition, process and significance of

performance Management System. this section also contains my findings,

conclusions, suggestions and feedback

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Overview of the footwear industrial sector

Footwear has become out as one of the basic needs and necessities of

today’s human being. It is as important for a human being as clothes and

shelters. The importance of this product has been highly recognized in the

western countries. Footwear industry in these countries come in the category

of other developed industries, for example Nike’s and Reebok’s of

America,Lapsa2 of U.K., Goose of Italy are some of the highly reputed

companies manufacturing hi-tech shoes and having worldwide acceptability.

The footwear industry in India is somehow different and regretfully his

industry could not develop itself despite the fact that India being second

largest populated country in the world, surplus manpower and resources of

raw materials, whatever the reason being

The footwear sector is a diverse industry which covers a wide variety of

materials (textile, plastics, rubber and leather) and products from different

types of men's, women's and children's footwear to more specialized

products like snowboard boots and protective footwear. This diversity of end

products corresponds to a multitude of industrial processes, enterprises and

market structures.

Footwear industry action aims to promote innovation, competitiveness and

competition between companies involved in the sector, combat fraud and

counterfeiting, and protect consumers' health and the environment.

The Indian footwear industry consists of a large number of small enterprises

most of which are located in regions with little industrial diversity.

However, there are differences from one member state to the other.

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Footwear is expected to comprise about 60% of the total leather exports by

2011 from over 38% in 2006-07.

Presently, the Indian footwear market is dominated by Men's footwear

market that accounts for nearly 58% of the total Indian footwear retail

market.

By products, the Indian footwear market is dominated by casual footwear

market that makes up for nearly two-third of the total footwear retail market.

The Indian footwear market scores over other footwear markets as it gives

benefits like low cost of production, abundant raw material, and has huge

consumption market.

The footwear component industry also has enormous opportunity for growth

to cater to increasing production of footwear of various types, both for

export and domestic market .

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INTRODUCTION

There were about 200 footwear exporting firms in Agra exporting to several

countries, but besides these firms, there were also about 6,000 small-scale

footwear-manufacturing units functioning in the town that were yet to

make a breakthrough in the world market.

About UsNuova Shoes, is a part of R.C.K.K., established in 1964. It is managed by Mr. Harsimran

Singh Alag (Mannu) who has done a special course in "Designing in Footwear" from

Italy under the able guidance of his father Mr. Manjit Singh who is in this field since

1964 when R.C.K.K. started.

Situated at Khasra No. 432, Mauza Gailana, Asopa Hospital Road, Agra - 282007 (India),

Nuova Shoes is headed and managed by professionally competent and dedicated team of

Partners, Executives and workers. It has a well laid out factory with latest Italian and

German Shoe making machineries which ensures quality standards to meet international

norms.

Nuova Shoes, has a Footwear Design Department and Sample Room which displays

hundreds of samples designed by us, keeping in view the latest world fashion trends.

Research and Development continuously engages itself throughout the year updating its

customers with latest world fashion trends. We also engage designers from Italy for

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continuous flow of fashion.

Nuova Shoes has been exporting to various parts of the world including U.S.A, U.K.,

Italy, Germany etc in famous brand names such as GBX, Giorgio Brutini, J.C. Penney,

Kenneth Cole (U.S.A), Stefanel, Geox, Diesel, Tommy Hilfiger (Italy) and Marc, S.

Oliver (Germany), Barrats, Pierre Cardin, Pavers (U.K).

Currently our capacity is 1.5 million pairs of which the current utilization is 70%.

Our sourcing is global so as to ensure that we sustain our competitiveness not only in

terms of cost but also in terms of new leathers, materials and components.

With a network of shoe professionals around the shoe producing and fashion designing

nations - from China to Italy, we are continuously engaged in creating products in

keeping with the fashion trends and market requirements.

We believe that Designing & the Product Development is only a part of the total sum.

The execution is the other key and we are proud of our performance. The goal is to

achieve Customer Delight for we are aware that "we are as good as our last delivery".

Finally, the Client Retention is the other factor which we are proud to mention for we

have been able to retain all our Clients who we started with and the objective is to grow

with all our Customers in a symbiotic way.

We also have an in-house sole unit manufacturing Leather, PVC and TPR soles with a

production capacity of 3000 pairs per day.

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Year of Establishment 1964

Nature of Business Manufacturer, Exporter, Trader

Contact UsCompany name : Nuova Shoes

Telephone : +(91)-(562)-4028200

Fax No : +(91)-(562)-4028298

Address : Khasra Number - 432, Mauza Gailana, Asopa Hospital Road, Agra - 282007, Uttar Pradesh, India

MARKETING TACTICS:

Our product range is exhibited is many prestigious fair like ITALY,

GERMANY AND USA.

VISION OF NOUVA SHOES

“To be the best Quality footwear & footwear components producing world

class plant with lowest production cost, Ecofriendly,Safe & healthy

environment, conformance with social /ethical compliance.”

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Women Sandals

Women Sandals (01)

Product Code: ART-NO-P5160001

Women Sandals

Women Sandals (02)


Women Sandals

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Women Sandals (03)


Women Sandals

Women Sandals (04)


Women Sandals

8

Women Sandals (05)


Women Sandals

Women sandals (06)


Other products & services we offer

Ladies Sandal

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Ladies Sandal

Ladies Sandal

Ladies Sandal

10

Mens Shoes

Mens Shoes (01)


Mens Shoes

Mens shoes (02)


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Mens Shoes

Mens Shoes (03)


Mens Shoes

Mens shoes (04)


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Mens Shoes

Mens Shoes (05)


Mens Shoes

Mens Shoes (06)


Other products & services we offer

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Mens Shoes

Mens Boots

Mens Boots (01)


Mens Boots

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Mens Boots (02)


Mens Boots

Mens Boots (03)


Mens Boots

Mens Boots (04)

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Mens Boots

Mens Boots (05)


Mens Boots

Mens Boots (06)


Women Boots

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Women Boots

Women Boots (01)


Women Boots

Women Boots (02)


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Women Boots

Women Boots (03)


Women Boots

Women Boots (04)


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Women Boots

Women Boots (05)


Women Boots

Women Boots (06)


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Kids Boots

Kids Boots (02)


Kids Boots

Kids Boots (03)


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Kids Boots

Kids Boots (04)


Kids Boots

Kids Boots (05)


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Kids Boots

Kids Boots (06)


Kids Boots

Kids Boots (07)


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Kids Boots

Kids Boots (08)


Kids Boots

Kids Boots (09)


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Kids Boots

Kids Boots (10)


OUR PEOPLE

NOUVA SHOES is indebted to its people for their unflinching support and

dedication. They have stood by us in our good, bad and ugly times. They

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have crafted some of the finest shoes for most of the top names in

international footwear and fashion industry. They have made us a force to

reckon with in the fiercely competitive global footwear industry.

We, at one end, have not failed them either. To begin with, we have

provided them with a world class working environment envied by many in

the industry. Its a hazard free, airy, well lit and well built working facility we

are talking about with clean toilets and adequate drinking water.

Its a facility that encourages performance by its ambience. Hot Indian

summer is hardly a distraction. Their health is a matter of concern to us.

Medical check-ups by qualified doctors are organised at regular intervals to

monitor their health and welfare. Then, there is a cafetaria for people where

they get subsidised food items.

There is a volleyball court in the front amidst sprawling greens. It has

witnessed many a competitive in-house tourneys. It is important for our

people to know the joy of winning and the agony of losing to each other. But

together they make a formidable team of 800 strong and highly skilled

people we are proud o

WORK STRENGTH

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For a company to stay ahead in terms of quality and competitiveness, it has

to rely on the strength of its own infrastructure and resources. We, at

NOUVA SHOES , realised it very early. Today, we not only have a most

modern manufacturing complex but also an array of sophisticated machines

to produce a diverse range of world class footwear.

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Besides a number of Italian Lasting Machines and German Closing

Machines, there are other machines at various stages of production. The

assembly line manufacturing enhances production and ensure quality. On-

line Quality Control Checks by seasoned professionals enable us to monitor

consistency in production of a particular order.

From shoe upper to complete shoes, everything is produced in-house there

by reducing production lead time and enhancing cost effectiveness. Over the

years, the group has kept a sturdy pace with technological advances in

footwear production. It has continuously upgraded its infrastructure to

produce quality footwear.

Installed Capacity

2000 pairs/day - Ladies Shoes

4000 pairs/day - Men's Shoes

1200 pairs/day - Children shoes

For a company to stay ahead in term of quality and competitiveness. It has a

relay on the strength of its own infrastructure and resource. We at NOUVA

SHOES releasing it very early.

Today we not only have a most modern manufacturing complies but also an

array so sophisticated manufacturing complies but also array of sophisticated

machine to produce a diverse range of world class footwear.

Besides a no of Italian hasting machines and German

closing machines, there are other machines of various stages of production

online quality checks enable us to monitor consistency in production of

particular order from shoes upper to complete shoes; everything is produced

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in house there by reducing production had time enhancing cost effectiveness.

Over the year the group kept a study pace with technologically advances in

footwear production. It has continuously upgraded in to infrastructure to

produce quality footwear.

QUALITY POLICY

At NOUVA SHOES , we look at quality from a different perspective.

Concern for quality is ingrained in our system. It is an integral part of our

thought process. And that is how it has become a tangible aspect of our

products. You can see and feel it. Quality is not talking about it; it is doing

it. It should be inherent in your belief system

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Over the years, we at NOUVA SHOES , have evolved our own quality

policy turned to the capabilities of our people. They produce quality because

we provide them quality environment and facilities. We lead the crusade for

quality from the front. At NOUVA SHOES , quality is people driven.

Workers produce it, professionals inspect it and together they deliver it.

From time to time our people undergo orientation programmes conducted

with the assistance of technocrats to understand qualitative aspects of

products we make. To top it all, the management of NOUVA SHOES

monitors the production process to ensure that each footwear bears NOUVA

SHOES 's seal of 'Quality Always'.

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At NOUVA SHOES , we look at quality from a different prospective

concern for quality is ingrained in our system. it is an integral part of our

through process. And that is how it has become a tangibles aspect of our

product you can see and feel it. Quality is not taking about it. It’s should be

inherent in our belief system.

We at NOUVA SHOES have involved our own quality policy

turned in to capabilities of our peoples.

They produce quality because we provide them quality environment and

facilities. We lead the crusade for quality from the front. At professional

inspect it a together they deliver it.

From time to time people undergo orientation programmers

conducted with the assistance of technocrats to understand qualitative

aspect of products we make. To top it all, the management of NOUVA

SHOES monitors the production process to ensure the each foot bears

NOUVA SHOES ’s seal of quality always

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ENVIRONMENT FRIENDLY COMPANYInherent in the work culture of "NOUVA SHOES " is a deep concern for conservation &

Preservation of the environment. The sprawling greens in front of its Corporate

Headquarters and Manufacturing facility is one such example.A modern waste treatment

plant has been installed to ensure its surroundings are not polluted. The facility has been

designed meticulously to match international standards in terms of temperature control,

noise levels etc.

It has "top-of-the-line fire fighting" arrangements. The walls in the working areas are

fitted with fire fighting equipments and fire exits routes are painted all over the work

area. The electricity cables have been laid under the watchful eyes of professionals as per

the prescribed standards. To educate our workers regarding the use of chemicals, regular

orientation programmes are conducted. Our concern for our environment and the

measures we have taken to preserve it have got us an "ISO 14001" Certification.

RESEARCH & DEVELOPMENT

NOUVA SHOES is constantly innovating new designs. In sync with latest trends in the

European standards, development of new designs goes on round the year at our Research

and Development department.

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At NOUVA SHOES , commitment to provide high class and quality service continues,

right from the designer's sketchbook through to the performance of our shoes on a

customer's foot.

NOUVA SHOES has adopted latest footwear technology to give new dimension to the

creative designers.

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Success is never a matter of desire, it is the product of hard work and vision. The

phenomenal success of NOUVA SHOES proves it. With effective presence in more than

"40" countries and a turnover exceeding, the group has been growing steadily.

It's success is simply a by product of the implicit faith and confidence its buyers have in

its capabilities. It has never let them down. And that is because their every requirement is

met as per their exact specifications. Today, the Group exports its footwear to some of

the top names in fashion and footwear business. "United Colours Of Benetton,

Lumberjack" etc. are some of the brands it makes footwear for.

Our product range is exhibited in many prestigious fairs like "Riva Del Garda (Italy),

GDS (Germany) and WSA (USA)".

For us at NOUVA SHOES every customer, no matter big or small, counts. Whenever

visiting our "Corporate headquarters" in India, each customer is looked after well. We

have even made independent work stations for them to work with freedom. All the work

stations are equipped with modern telecommunication facilities. We cherish the mutually

rewarding relationship we share with our customers worldwide.

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OUR MAIN MARKET

(1) UK & Europe (2) Scandinavia (3) Australia & North America

The brand "NOUVA SHOES " has been able to maintain its aura of exclusivity and

distinction in the global market. Our brand "NOUVA SHOES " cherish the dreams of

people from across the world by providing footwear of their choice. With the growing

popularity, proliferation comes along.

The company has elaborated the brand concept by launching a variety of sub-brands and

shoes to suit different occasions. The new brand were coined with attractive catchword,

thus helping the customers finding the right shoes. Our range of brand caters to every

need in footwear world.

• U.K. & Europe

• Scandinavia

• North America

• South America

• Australi

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COMPANY POLICY OF NOUVA SHOES

We at NOUVA SHOES FOOTWEAR IND. a leading manufacturer and

exporter of footwear and footwear components, are committed to carry out

our activities with highest concern for Customer delight, Environmental

protection, Occupational Health & Safety, Ethical governance and in

compliance with all applicable statutory, legislative and national and

international standards requirements.

To this goal, we shall:

Supply high quality of footwear and footwear components and meet

requirements of our customers.

Continually improve Quality, Productivity, Social Performance, cost of

poor quality, impact of our activities on air, water & land and also in

prevention / control of Occupational Health and Safety risks;

Monitor, control and upgrade our technology / processes and operational

practices so as to optimize resource consumption and ensure safe work

environment / well being at work place;

Recognize and care for the concerns of our employees and affected

interested parties regarding the impact of our operations on the

environment and Occupational Health & Safety hazards at work place;

Participate in overall social development of the neighborhood;

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Strengthen awareness, skill and competence of our employees so as to

enable them to contribute effectively in ensuring sound quality,

environmental, social, occupational health and safety management.

GROWTH AND DEVELOPMENT OF ORGANIZATION

215

368

211

458

364

761

849

938

617

841

0

100

200

300

400

500

600

700

800

900

1000

VALUE IN LACS

APRIL'06

APRIL'07

MAY '06 MAY '07 JUNE '06 JUNE '07 JULY '06 JULY '07 AUG '06 AUG '07

MONTH

MONTHLY SALES PERFORMANCE

Cumulative Total (In Lacs) 826 1587 2525 3366

This Index show how NOUVA SHOES increase his performance Month

by month and also year by year

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PRESENT STATUS OF ORGANIZATION

Ranks of the Footwear company in Agra :-

1. NOUVA SHOES GROUP

2. TEZ SHOES

3. ROGER EXPORT

4. VIROLA INDUSTRY

5. PARK EXPORT

6. METRO & METRO

7. SUPER HOUSE

8. VASHANA EXPORT

10. NOVA SHOES

NOUVA SHOES [excellence in footwear] ranked no. 1 in export of

Leather Shoes

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OBJECTIVES OF NOUVA SHOES

To reduce spillage & leakage

To reduce oil, grease & leather contents in discharged water to zero

To reduce electrical energy consumption by 5%

To provide Awareness Training to all employees of company &

subcontractors

To ensure improved emergency preparedness

To ensure safe Workplace for employees

To ensure improved safe work practices

To review & update personal Manual

To upgrade sanitation facilities in the plant

To maintain zero overtime

To reduce diesel energy consumption by 3%

MANUFACTURING PROCESS OF NOUVA SHOES

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Raw Material

Cutting

Closing

Lasting

MARKETING STRATEGY

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NOUVA SHOES has a distribution Network that rivals the human arterial

system reticulate network of retailers, showrooms and exclusive outlets with

a reach like a blue green marine octopus.

Thanks to the vision and drive of our corporate, we now have a sales

Network that brings the breathtaking world of super footwear right at your

feet, within seconds. A marketing system that we have conceived and

created is understandably, the envy of the competition.

Marketing Network National International

Offices 13 2

Distributors 150 10

Exclusive showrooms 350 10

Shoe stations 7000 500

EXPORT MARKET

The various export markets of the NOUVA SHOES Shoes Ltd.are:

Germany

Italy

Spain

East Europe

Indian sub continents

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RESEARCH METHODOLOGY

Research is an important pre-requisite for a dynamic organization to be

précised. Research is more systematic activity directed towards the

discovery and development of organized body of knowledge. Some of the

characteristics of research methodology are as follows:

Research is directed towards a solution of problem. It may attempt to answer

a question or determine the relation between two or more variables.

Research involves gathering new data for primary of first hand sources or

using existing data for new purposes.

Research is based on observable experience or empirical evidence.

Research strives to be objective and logical applying every possible test to

validate the proceed are employed the data collection and conclusion

research.

STEPS OF METHODOLOGY

COLLECTION OF DATA

ORGANIZATION OF DATA

PRESENTATION OF DATA

ANALYSIS OF DATA

INTERPRETATION OF DATA

RESEARCH

Research comprises defining and redefining problems, formulating

hypothesis or suggested solutions, collecting, organizing and evaluating

data, making deductions and reaching conclusions and at last carefully

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testing the conclusions to determine whether they fit the formulating

hypothesis.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the problems. It is a

way of studying how research is done scientifically. It consists of various

steps that are generally adopted by the researcher in studying his research

problems along with the logic behind them.

For solving the problem related to “performance management” of the

NOUVA SHOES company research is done by using the “360 degree

performance appraisal method” which is helpful in analysis of , performance

management simplification of accounting data, helpful in comparative study,

helpful in locating the weak spots of the business,

helpful in forecasting, estimating the trends of the business, effective control

etc.

RESEARCH DESIGN

Research design is a framework or the blue print for conducting the research

project. Research design is the arrangement of conditions for collection and

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analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedure. It includes an outline of what the

researcher will do from writing the hypothesis and its operational

implications to the final analysis of data.

“An overall plan of action to be followed during an experiment to be

sure that the objective are met. Often the specific procedures to solve

problems are included in the research design”

The main objective of over study is to analysis the performance management

of the firm through 360 degree performance appraisal method. This

technique are helpful in solving the problems which we faced during the

research. Research Design refers to "framework or plan for a study that

guides the collection and analysis of data". A typical research design of a

company basically tries to resolve the following issues:

Determining Data Collection Design

Determining Data Methods

Determining Data Sources

Determining Primary Data Collection Methods

Developing Questionnaires

Determining Sampling Plan

TYPES OF RESEARCH DESIGN

Exploratory research design

Descriptive research design

EXPLORATORY RESEARCH DESIGN

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It is also termed as Formulative research design. The main purpose of the

study is to formulate a problem for more precise investigation. In it

we understand the performance management through 360 degree

performance appraisal method.

DESCRIPTIVE RESEARCH DESIGN

This research is the most commonly used and the basic reason for carrying

out descriptive research is to identify the cause of something that is

happening.

The research design is the master plan specifying the methods and

procedures for collecting & analyzing needed information. The research

design in this project is DISCRIPTIVE. Descriptive research includes

surveys & facts findings.

SOURCES OF DATA

It is of two types:-

Primary Data

Secondary Data

PRIMARY DATA

Primary data are those data, which is originally collected. It is of following

type’s questionnaire, interview, observation etc.

SECONDARY DATA

Secondary data are those data which are collected and which has been

passed through statistical research.In this project, secondary data has been

collected from following sources:-

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Annual Reports

Books

Internet

Other material and report published by company

SAMPLE DESIGN

Sample design is a technique or the procedure which the researcher would

adopt in selecting items for the sample. It is not possible for any researcher

to include each and every member of the universe in his research process.

So, he selects small portion of the universe, which is its true representative.

This group known is sample and this process is called Sampling.

Sample designs are basically of two types:

Non – Probability Sampling

Probability Sampling

NON- PROBABILITY SAMPLING

In this items for the sample are selected deliberately by the researcher, by

using his own judgment. In this every item of universe does not have equal

chances of inclusion in the sample.

It can be of following type:

Convenience Sampling

Judgment Sampling

Quota Sampling

PROBABILITY SAMPLING

It is also known as Random Sampling or Chance Sampling. In this, each

population element has equal chance of selection.

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It can be of following type:

Random Sampling

Stratified Sampling

Cluster Sampling

Multi stage Sampling

In this project, non - probability sampling has been used because sample is

selected by own view and every item of universe has not equal chances of

being selected. Under non- probability sampling, convenient sampling has

been used because sample has been selected according to own convenience.

Sampling size: This refers to the number of person institution to be

surveyed. Total sampling size of this study is 50

Sampling procedure: This refers to the procedure by which respondents

should be chosen. This study is conducted on the basis of convenience

sampling and judgment sampling.

DATA COLLECTION METHODS:

1. Primary data is gathered through a survey conducted on employees.

2. Secondary data is collected from internet, files, record books, company

manuals and books

Research instrument used in this project report for collecting primary

data is

Questionnaire

INSTRUMENT USED: Questionnaire

SAMPLING TECHNIQUE: Random sampling

DATA ANALYSIS:

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The data collected through survey was analyzed with the help of simple

percentages, tabular and graphic methods which included pie charts, bar

graphs are used to analyze the data.

LIMITATIONS

1) Analysis was based on sample results

2) Some employees were not very open, forthcoming in writing their

responses

3) It was difficult to get questionnaire filled by employees due to their busy

schedule

4) Some employees had biased response style in dealing with sensitive

issues

Performance

Employee Performance Management is a process for establishing a shared

workforce understanding about what is to be achieved at an organisation

level. It is about aligning the organisational objectives with the employees’

agreed measures, skills, competency requirements, development plans and

the delivery of results. The emphasis is on improvement, learning and

development in order to achieve the overall business strategy and to create a

high performance workforce.

Performance management includes activities to ensure that goals are

consistently being met in an effective and efficient manner. Performance

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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.

OBJECTIVES OF THE STUDY

The main objective of this study was to know performance management

system in the organization.The sub objectives that we wanted to achieve are

as follows:-

To know whether the employees are aware of the appraisal system

followed by the company.

To ascertain that what the factors are those are considered while

appraising the performance of employees.

To know that whether there is any biasness in the performance

appraisal system of the organization.

To find out the satisfaction level of employees regarding companies

appraisal system.

To analyze the various factors that can motivate employees in their

work.

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To invite suggestions for the welfare of the employees of the

company.

PERFORMANCE MANAGEMENT

Employee Performance Management is a process for establishing a shared

workforce understanding about what is to be achieved at an organization

level. It is about aligning the organizational objectives with the employees’

agreed measures, skills, competency requirements, development plans and

the delivery of results. The emphasis is on improvement, learning and

development in order to achieve the overall business strategy and to create a

high performance workforce.

Performance management includes activities to ensure that goals are

consistently being met in an effective and efficient manner. Performance

management can focus on the performance of an organization, a department,

employee, or even the processes to build a product or service, as well as

many other areas.

The PM approach is used most often in the workplace but applies wherever

people interact—schools, churches, community meetings, sports teams,

health setting, governmental agencies, and even political settings. PM

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principles are needed wherever in the world people interact with their

environments to produce desired effects. Cultures are different but the laws

of behavior are the same worldwide. Armstrong and baron (1998) defined it

as “A strategic and integrated approach to increasing the effectiveness of

organizations by improving the performance of the people who work in them

and by developing the capabilities of teams and individual contributors”

FEATURES:-

1) the fastest known method for career promotion;

2) the quickest way for career advancement;

3) the surest way for career progress;

4) the best ingredient in career path planning;

5) the only true and lasting virtue for career success;

6) the most neglected part in teachings about management and leadership

principles;

7) the most complete and sophisticated application of performance

management;

8) the best integration of human behavior research findings, with the latest

management, leadership and organizational development principles;

9) the best automated method for organizational change, development,

growth, performance and profit;

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OBJECTIVES OF PERFORMANCE

APPRAISAL

To review the performance of the employees over a given period of

time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between

superior-subordinates and management-employees.

To diagnose the strengths and weakness of individuals so as to

identify the training and development of the future.

To provide feedback to the employees regarding their past

performance.

Provide information to assist in the other personal decisions in the

organization.

Provide clarity of the expectations and responsibilities of the functions

to be performed by the employees.

To judge the effectiveness of the other resource functions of the

organization such as recruitment, selection, training and development.

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To reduce the grievances of the employees.

HISTORY OF PERFORMANCE

MANAGEMENT

Performance Management began around 60 years ago as a source of income

justification and was used to determine an employees wage based on

performance. Organisations used Performance Management to drive

behaviours from the employees to get specific outcomes. In practice this

worked well for certain employees who were solely driven by financial

rewards. However, where employees were driven by learning and

development of their skills, it failed miserably. The gap between justification

of pay and the development of skills and knowledge became a huge problem

in the use of Performance Management. This became evident in the late

1980s; the realisation that a more comprehensive approach to manage and

reward performance was needed. This approach of managing performance

was developed in the United Kingdom and the United States much earlier

than it was developed in Australia.

In recent decades, however, the process of managing people has become

more formalised and specialised. Many of the old performance appraisal

methods have been absorbed into the concept of Performance Management,

which aims to be a more extensive and comprehensive process of

52

http://www.peoplestreme.com/../appraisal-1.shtml


http://www.peoplestreme.com/../p-cmgr-1.shtml

management. Some of the developments that have shaped Performance

Management in recent years are the differentiation of employees or talent

management, management by objectives and constant monitoring and

review. Its development was accelerated by the following factors:

1) The introduction of human resource management as a strategic driver

and integrated approach to the management and development of

employees.

2) The understanding that the process of Performance Management is

something that’s completed by line managers throughout the year – it is

not a once off annual event coordinated by the personnel department.

PROCESS OF PERFORMANCE

MANAGEMENT IN ORGANISATION

53

ESTABLISH PERFORMANCE

STANDARDS

COMMUNICATING THE STANDARDS

MEASURING THE ACTUAL

PERFORMANCE

COMPARING THE ACTUAL WITH

DESIRED


http://www.peoplestreme.com/../key-performance-indicators.shtml

http://www.peoplestreme.com/../key-performance-indicators.shtml

1.) ESTABLISH PERFORMANCE STANDARDS

The first step in the process is the setting up of the standards which will be

used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their

contribution to the organizational goals and objectives. The standards set

should be clear, easily understandable and in measurable terms. In case the

performance of the employee cannot be measured, great care should be

taken to describe the standards. KPAs are set for each employee and they are

prioritized. 70% weightage is given to technical skills and 30% weightage is

given to behavioural skills. Behavioural skills expected from employees are

same for all employees. Assessment is done by the head of the department.

2.) COMMUNICATING THE STANDARDS

Once set, it’s the responsibility of the management to communicate the

standards to all the employees of the organization. The employees are

informed and the standards are clearly explained to them. This will help

them to understand their roles and to know what exactly is expected from

them. The standards are also communicated to the appraisers or the

54

DISCUSS RESULTS

DECISION MAKING

evaluators and if required. The standards can also be modified at this stage

itself according to the relevant feedback from the employees or the evaluator

55

3.) MEASURE THE ACTUAL PERFORMANCE

The most difficult of the performance appraisal process is measuring the

actual performance of the employees that is work done by the employees

during the specified period of time. Is is a continuous process which

involves monitoring the performance throughout the year. This stage

requires the careful selection of the appropriate techniques of measurement,

taking care that personal bias does not affect the outcome of the process and

providing assistance rather than interfering in an employees work.

4.) COMPARING THE ACTUAL WITH DESIRED

PERFORMANCE

The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance of the

employees from the standards set. The result can show the actual

performance being more than the desired performance or, the actual

performance being less than the desired performance depicting a negative

deviation in the organizational performance. It includes recalling, evaluation

and analysis of data related to the employee’s performance.

5.) DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the

employees on one-to-one basis. The focus of this discussion is on

communication and listening. The results, the problems and the possible

solutions are discussed with the aim of problem solving

and reaching consensus. The feedback should be given with a positive

attitude as this can have an effect on the employees’ future performance. The

57

purpose of the meeting should be to solve the problems faced and motivate

the employees to perform better

6.) DECISION MAKING

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective

actions, or the related HR decisions like rewards, promotions, demotions,

transfers etc. If the employee’s performance is below desired level then

proper training is provided to them.

Methods of Performance appraisal

The foregoing list of major program pitfalls represents a formidable

challenge, even considering the available battery of appraisal techniques.

But attempting to avoid these pitfalls by doing away with appraisals

themselves is like trying to solve the problems of life by committing suicide.

The more logical task is to identify those appraisal practices that are (a) most

likely to achieve a particular objective and (b) least vulnerable to the

obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal

stated at the outset of the article, I shall briefly review each, taking them

more or less in an order of increasing complexity.

The best-known techniques will be treated most briefly.

Broadly, all the methods of performance appraisal can be classified into

following two categories:

Traditional Methods

58

Modern Methods

Method of performance appraisal

Method of performance appraisal

Traditional Methods Modern Methods

Essay Method

Graphic Rating Scale

Field Review Method

Forced Choice Method

Ranking Method

Checklist Method

Management by Objectives

Assessment Centre Method

360 Degree Appraisal

TRADITIONAL METHODS

Essay appraisal

In its simplest form, this technique asks the rater to write a paragraph or

more covering an individual's strengths, weaknesses, potential, and so on. In

most selection situations, particularly those involving professional, sales, or

managerial positions, essay appraisals from former employers, teachers, or

associates carry significant weight.

Graphic rating scale

59

This technique may not yield the depth of an essay appraisal, but it is more

consistent and reliable. Typically, a graphic scale assesses a person on the

quality and quantity of his work (is he outstanding, above average, average,

or unsatisfactory?) and on a variety of other factors that vary with the job but

usually include personal traits like reliability and cooperation. It may also

include specific performance items like oral and written communication.

Field review

The field review is one of several techniques for doing this. A member of the

personnel or central administrative staff meets with small groups of raters

from each supervisory unit and goes over each employee's rating with them

to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a

consensus, and (c) determine that each rater conceives the standards

similarly. .

Forced-choice rating

Like the field review, this technique was developed to reduce bias and

establish objective standards of comparison between individuals, but it does

not involve the intervention of a third party.

Ranking methods

For comparative purposes, particularly when it is necessary to compare

people who work for different supervisors, individual statements, ratings, or

appraisal forms are not particularly useful. Instead, it is necessary to

recognize that comparisons involve an overall subjective judgment to which

a host of additional facts and impressions must somehow be added. There is

no single form or way to do this.

60

The best approach appears to be a ranking technique involving pooled

judgment.

The two most effective methods are alternation ranking and paired

comparison ranking.

1. “Alternation ranking”:Ranking of employees from best to worst on

a trait or traits is another method for evaluating employees. Since it

is usually easier to distinguish between the worst and the best

employees than to rank them, an alternation ranking method is most

popular. Here subordinates to be rated are listed and the names of

those not well enough to rank are crossed. Then on a form as shown

below, the employee who is highest on the characteristic being

measured and the one who is the lowest are indicated. Then chose the

next highest and the next lowest, alternating between highest and

lowest until all the employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might

be more so. But with large numbers of employees it becomes extremely time

consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings

(i.e., when two or more people are asked to make independent rankings of

the same work group and their lists are averaged), are among the best

available for generating valid order-of-merit rankings for salary

administration purposes.

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MODERN METHODS

Management by objectives

To avoid, or to deal with, the feeling that they are being judged by unfairly

high standards, employees in some organizations are being asked to set - or

help set - their own performance goals. Within the past five or six years,

MBO has become something of a fad and is so familiar to most managers

that I will not dwell on it here.

Assessment centers

So far, we have been talking about assessing past performance. What about

the assessment of future performance or potential? In any placement

decision and even more so in promotion decisions, some prediction of future

performance is necessary. How can this kind of prediction be made most

validly and most fairly?

360 Degree Feedback

Many firms have expanded the idea of upward feedback into what the call

360-degree feedback. The feedback is generally used for training and

development, rather than for pay increases.

62

Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for

instance – complete survey, questionnaires on an individual. 360 degree

feedback is also known as the multi-rater feedback, whereby ratings are not

given just by the next manager up in the organizational hierarchy, but also

by peers and subordinates. Appropriates customer ratings are also included,

along with the element of self appraisal. Once gathered in, the assessment

from the various quarters are compared with one another and the results

communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO.

Like the critical incident method, it focuses on actual behavior and actual

results, which can be discussed objectively and constructively, with little or

no need for a supervisor to "play God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual

outcomes. If the employee meets or exceeds the set objectives, then he or

she has demonstrated an acceptable level of job performance. Employees are

63

judged according to real outcomes, and not on their potential for success, or

on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be

observed easily. The MBO method recognizes the fact that it is difficult to

neatly dissect all the complex and varied elements that go to make up

employee performance.

MBO advocates claim that the performance of employees cannot be broken

up into so many constituent parts, but to put all the parts together and the

performance may be directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot

be reasonably accomplished. Supervisors and subordinates must have very

good "reality checking" skills to use MBO appraisal methods. They will

need these skills during the initial stage of objective setting, and for the

purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that

fluid objectives may be distorted to disguise or justify failures in

performance.

64

BENEFITS OF PERFORMANCE APPRAISALS

Measures an employee’s performance.

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback.

Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and

analysis.

Improves understanding and relationship between the employee and

the reporting manager and also helps in resolving confusions and

misunderstandings.

Plays an important tool for communicating the organization’s

philosophies, values, aims, strategies, priorities, etc among its

employees.

Helps in counseling and feedback.

65

RATING ERRORS IN PERFORMANCE

APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and

biases referred to as 'rating errors'. These errors can seriously affect

assessment results. Some of the most common rating errors are: -

Leniency or severity:

Leniency or severity on the part of the rater makes the assessment

subjective. Subjective assessment defeats the very purpose of performance

appraisal. Ratings are lenient for the following reasons:

1. The rater may feel that anyone under his or her jurisdiction who is rated

unfavorably will reflect poorly on his or her own worthiness.

2. He/She may feel that a derogatory rating will be revealed to the rate to

detriment the relations between the rater and the ratee.

3. He/She may rate leniently in order to win promotions for the

subordinates and therefore, indirectly increase his/her hold over him.

Central tendency: -

This occurs when employees are incorrectly rated near the average or middle

of the scale. The attitude of the rater is to play safe. This safe playing

attitude stems from certain doubts and anxieties, which the raters have been

assessing the rates.

66

Halo error:-

A halo error takes place when one aspect of an individual's performance

influences the evaluation of the entire performance of the individual. The

halo error occurs when an employee who works late constantly might be

rated high on productivity and quality of output as well ax on motivation.

Similarly, an attractive or popular personality might be given a high overall

rating. Rating employees separately on each of the performance measures

and encouraging raters to guard against the halo effect are the two ways to

reduce the halo effect.

Rater effect:

This includes favoritism, stereotyping, and hostility. Extensively high or low

score are given only to certain individuals or groups based on the rater's

attitude towards them and not on actual outcomes or behaviors; sex, age,

race and friendship biases are examples of this type of error.

Primacy and Regency effects: -

The rater's rating is heavily influenced either by behavior exhibited by the

ratee during his early stage of the review period (primacy) or by the

outcomes, or behavior exhibited by the ratee near the end of the review

period (regency). For example, if a salesperson captures an important

contract/sale just before the completion of the appraisal, the timing of the

incident may inflate his or her standing, even though the overall

performance of the sales person may not have been encouraging. One way of

guarding against such an error is to ask the rater to consider the composite

performance of the rate and not to be influenced by one incident or an

achievement.

Performance dimension order: -

67

Two or more dimensions on a performance instrument follow each other

and both describe or rotate to a similar quality. The rater rates the first

dimensions accurately and then rates the second dimension to the first

because of the proximity. If the dimensions had been arranged in a

significantly different order, the ratings might have been different.

Spillover effect: -

This refers lo allowing past performance appraisal rating lo unjustifiably

influence current ratings. Past ratings, good or bad, result in similar rating

for current period although the demonstrated behavior docs not deserve the

rating, good or bad.

68

DATA ANALYSIS

Q-1) Do you know the present Performance management system used in

your organization?

100%

0%

yes

no

Response yes No

Respondents 50 0

69

Interpretation

We can say that 95% employees know the performance management

system used in the organization 5% are unaware of that.

Q-2) Are you satisfied with the present PMS used in your organization?

Response yes No Some how Can’t say

Respondents 40 0 10 0

Interpretation

70

80%

10%10% 0%

yes

no

somehow

can't say

We can say that 80% employees are satisfied with the performance

management system used in the organization and no one is unsatisfied. 10%

employees are some how satisfied and 10% are not able to say anything.

Q-3) The current process is too time consuming.

Response Strongly

agree

agree neutral disagree Strongly

disagree

Respondents 0 28 11 11 0

0%

56%22%

22%

0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation

We can say that 56% employees are agree, 22% are neutral and 22% are

disagree with the above statement.

71

Q-4) Do you think the assessment given by your HOD is on unbiased

basis.

Response Strongly

agree

agree neutral disagree Strongly

disagree


20%

60%

10%6% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation

72

We can say that 20% employees are strongly agree, 60% are agree, 10% are

neutral, 6% are disagree and 4% are strongly disagree with the statement.

Q-5) Team objectives don’t exist.

Response Strongly

agree

Agree neutral disagree Strongly

disagree


20%

20%

10%30%

20%s.agree

agree

neutral

disagree

s.disagree

Interpretation

73


neutral, 30% are disagree and 20% are strongly disagree with the statement.

Q-6) The focus of performance management is developmental.

Response Strongly

agree


disagree


20%

50%

16%

10% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation

74


neutral, 10%are disagree and 4% are strongly disagree with the statement.

Q-7) Regular feedback of the work is given.

Response Strongly

agree


disagree


30%

54%

6%6% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



75

Q-8) PMS of your company motivates you for work.

Response Strongly

agree

Agree Neutral Disagree Strongly

disagree


18%

62%

16%

4% 0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



76

Q-9) PMS is effective in your organization.

Response Strongly

agree


disagree


26%

54%

12%4% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation


neutral, 4%are disagree and 4% are strongly disagree with the

77

Q-10) Participation in the performance management process is up to the

required level.

Response Strongly

agree


disagree


16%

50%

20%

10% 4%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



78

Q-11) Personal development plans exist.

Response Strongly

agree

Agree Neutral disagree Strongly

disagree


12%

60%

10%

10%8%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



79

Q-12) Feedback on good or poor progress is saved up to the end of the

year.

Response Strongly

agree


disagree


18%

74%

4%

4% 0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



80

Q-13) Is unsatisfactory PMS directly relates to the employee turnover.

Response Strongly

agree


disagree


18%

70%

6% 4% 2%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



81

Q-14) Self rating is very useful for PMS.

Response Strongly

agree


disagree


16%

64%

12%8% 0%

s.agree

agree

neutral

disagree

s.disagree

Interpretation



82

Q-15) what factors from the following are considered in your

organization while appraising the performance.

Response Technicality

& behavior

Team

work

Productivity Waste

management

other


72%

8%

16%

4%

0% tech.&behavior

team work

productivity

waste mgmt

other

Interpretation

We can say that 72% employees says that technicality & behavior are

considered while appraising the performance, 8% think team work, 16%

says productivity, 4% says waste management and 0% says other.

83

Q-16) How often the appraisal should be done?

Response Once during the

service period

Continuously Never Can’t say


18%

82%

0%

0%

once

continuously

never

can't say

Interpretation

We can say that 18% employees think that appraisal should be done only

once, 82% think that it should be done continuously.

84

Q-17) If given a chance or opportunity, would you like that the current

procedure should be reviewed?

Response Yes no Can’t say

Respondents 30 20 0

60%

40%

0%

yes

no

can't say

Interpretation

60% employees want that the current procedure should be reviewed and

40% says that it should not be reviewed.

85

Q-18) Based on your qualification, current role, responsibility &

achievement, how do you rank your own performance?

Response Excellent Very good Average Good


8%16%

36%

40% excellent

very good

average

good

Interpretation

We can say that 8% employees rank their performance as excellent, 16% as

very good, 36% as average and 40% as good.

86

Q-19) What according to you is the best strategy for increasing the

employee performance?

Response Increase

benefits

Negative

reinforcement

Freedom

for work

Positive

reinforcement

Any

other


24%

0%

12%64%

0%inc.benefits

negative rein.

freedom for work

posiive rein.

other

Interpretation

We can say that 24 % employees think that increase in benefits can increase

the employee’s performance, 0% says negative reinforcement, 12% says

freedom for work, 64% say positive reinforcement.

87

RESULT AND FINDINGS

100% employees know the performance management system used in the

organization.

More than 50% employees agreed that the present system is time

consuming.

60% of the employees agreed that assessment given by their HOD is on

unbiassed basis.

30% of the employees are agreed that team objectives do exist.

50% of the employees agreed that the focus of PMS is developmental.

More than 50% of the employees are agreed that PMS in their

organization is effective.

Half of the employees agreed that participation in the PMS is upto the

required level.

60% of the employees are agreed that personal development plans exist.

70% of the employees are agreed that unsatisfactory PMS directly relates

to the employee turnover.

64% of the employees are agreed that self rating is useful in PMS.

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CONCLUSION

Employee satisfaction is vital factor for the performance of organization

because it provides the basis for the foundation of the organization. On the

basis of study which I gone through, I came to know that employee

satisfaction level is high but there are chances of improvisation.

To increase the level of satisfaction, some more steps can be taken by

NOUVA SHOES Puram such as self rating by the employees and positive

reinforcement system for increasing the performance of the employees. The

primary objective was to study satisfaction with regard to performance

management system of the organization and from study, I came to know that

majority of the employees are satisfied with policies of the organization. To

increase the percentage of satisfied employees, organization should work for

them.

89

RECOMMENDATIONS & SUGGESTIONS

Appraisal of the performance should be done continuously.

Positive reinforcement should be used for increasing the employee

performance.

Organization need to ensure role clarity among the employees.

Appraiser should have proper knowledge regarding the different

rating scales in the appraisal report.

It is suggested that involvement of appraisal in performance

management activities should be increased.

Employees should be given chance to give suggestions regarding

performance management system.

90

BIBLGRAPHY

WEBSITES

http://www.NOUVA SHOES shoes.com accessed on 15th July 2010

http://www.performancemanagementguide.com accessed on 17th July

2010

http://www.humanresources.about.com accessed on 16th July 2010

http://www.allbusiness.com accessed on 20th July 2010

91

http://www.allbusiness.com/

http://www.humanresources.about.com/

http://www.performancemanagementguide.com/

http://www.libertyshoes.com/

QUESTIONNAIRE

EMPLOYEE INFORMATION

NAME: DESIGNATION:

GENDER: DEPARTMENT:

AGE: SERVICE

PERIOD:

PLEASE TICK MARK THE PROPER ANSWER

Q-1) Do you know the present Performance management system used in

your organization?

[1] Yes [2] No

Q-2) Are you satisfied with the present PMS used in your organization?

[1] yes [2] no [3] some how [4] can’t say

Q-3) the current process is too time consuming.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly

disagree

Q-4) Do you think the assessment given by your HOD is on unbiased basis.


disagree

Q-5) Team objectives don’t exist.


disagree

Q-6) The focus of performance management is developmental.

92


disagree

Q-7) Regular feedback of the work is given.


disagree

Q-8) PMS of your company motivates you for work.


disagree

Q-9) PMS is effective in your organization.


disagree

Q-10) Participation in the performance management process is up to the

required level.


disagree

Q-11) Personal development plans exist.


disagree

Q-12) Feedback on good or poor progress is saved up to the end of the year.


disagree

Q-13) Is unsatisfactory PMS directly relates to the employee turnover


disagree

Q-14) Self rating is very useful for PMS.


disagree

93

Q-15) What factors from the following are considered in your organization

while appraising the performance.

[1] Technicality & behavior

[2] team work

[3] productivity

[4] waste management

[5] other

Q-16) How often the appraisal should be done?

[1]once during the service period [2] continuously

[3] never [4] can’t say

Q-17) If given a chance or opportunity, would you like that the current

procedure should be reviewed?

[1] yes [2] no [3] can’t say

Q-18) Based on your qualification, current role, responsibility &

achievement, how do you rank your own performance?

[1] excellent [2] very good [3] average [4] good

Q-19) What according to you is the best strategy for increasing the employee

performance?

[1] Increase benefits [2] negative reinforcement [3] freedom for work

[4] positive reinforcement [5] any other

94

Performance Appraisal Innouva Shoes

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