European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2275 Issue 50 (2012) EuroJournals, Inc. 2012 http://www.eurojournals.com/EJEFAS.

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A Study on Factors Influencing Faculty Performance Management System in Technical Educational Institutions
G. Barani Asst.Professor / MBA / School of Management Studies Anna University of Technology Coimbatore/India E-mail: gunabarani@yahoo.com R. Rajesh Asst.Professor / MBA / Sengunthar Engineering College Tiruchengode / India, PhD Research Scholar E-mail: mrdrajesh@gmail.com Abstract Performance management systems are considered as one of the important input for the organizational success. Implementation of performance management systems in educational institutions are in embryonic phase. Performance management system used in any organization or institution to align vision and mission with its requirements and to plan day-to-day work, manage and evaluate business strategy, monitor operational efficiency improvements, and communicate progress to all stakeholders. This present work laid focus on the factors influencing on the performance of faculty members in technical education institutions in Tamilnadu. 100 respondents are selected and data is collected by using structured questionnaire. Questionnaire contains four sections, first section deals with personal profile, second section contains the factors influencing faculty performance, third section enlists the preparedness of the institutes as to various activities and fourth section attracts suggestions from the respondents. The data collected is analysed through factor analysis, multiple linear regression, t-test, chi-square rest and graphical analysis. It is concluded that the factors are having impact on the faculty work performance.

Keywords used: Performance Management System, Personal Benefits, Job Security, Training and Development, Work Freedom

Introduction
Performance management is a set of regular, enduring human resource activities carried out by employers relative to their subordinates to augment and preserve employee performance toward the achievement of desired performance objectives. These activities, intended at encouraging best possible employee motivation and development of both individual employees and the organization as a whole (Waldman & Kennett, 2002). Implementation of effective performance management provides an important means for aligning individual employee and team working behaviours with the organizational goals (Fisher et. al, 2003). Considering performance management in educational institutions is an influential indication to manage achievements and uphold the quality in educational purposes (Barber 2000; Fitzgerald 2000). In this respect, managing performance in educational institutions provides stability and consistency in academic activities (Silcock 2002).

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This study stresses that the existence of effective performance management system in educational institutions will ensure increased performance as a whole. This research largely implies the need of human resource system and practices in the educational institutions, human capital and their performance is the largest resource for the success of educational institutions. The management has to focus on the defining policies, departing vision and mission, deploying procedures, developing skills of faculties and delegating responsibilities for attaining objectives. Today educational institutions are focusing on to develop their own interest rather than its stakeholders. Employees in corporate are getting more monetary benefits than the teaching faculties. Teaching faculties are creator of the society but welcomed and recognized poorly in working place and society at large. Many educational institutions are not ready to spend a single rupee for the enrichment of faculties. Faculty turnover is evidenced to that reality. In the competitive environment and shifting students attitude from technical education to arts and science education, lower mobility of other state/country students and increased cost of operation causes for the dearth of focus on the faculty side. Removal of all odds and failures can be possible by deploying suitable performance management techniques in the educational institutions. Personal care of faculty will lay way for institute success, student success and faculty success along with increased job satisfaction and work efficiency. Hence it is advisable to use the results of this present study for bringing improved work performance among the faculty members in the work place. Hence this present study has been carried to test the factors influencing faculty performance management system in technical educational institutions.

Statement of Problem
Effective implementation of performance management in educational institutions will enhance overall performance in terms of student examination results, quality of teaching, perfection in work, healthy culture and behaviour, effective interpersonal relationship, work efficiency and so on. It doesnt require more fund and formality to establish, the most important concern in designing a performance management system is its fitness with the institute strategic objectives, vision and mission and the most important concern in providing performance related feedback is its fit with the institute culture. Managements must clearly define performance to their faculties to perform well at work. Facultys works are multi-dimensional; it requires administrative, teaching, mentoring, communication, interpersonal traits, leadership capabilities and practical exposure in the subject they preferred to teach. Defining performance is a prerequisite to measuring and evaluating job performance of faculties. Timeline is a significant element in performance management system, considering data about past performance to set goals, plans, and objectives for the present that should result in high performance in the future. Performance management system can be done in the following ways, at first begins with establishing suitable human resource planning consisting faculty development curriculum, systemized work assignment, compensation plans and rewards, motivation insights, training to attain institute vision and mission will maximize faculty performance. Second step starts with evaluation of faculty performance at fixed time intervals, weekly by head, monthly by principal, once in a semester by management in the areas like semester results, academic contribution, programme participation, paper publication, and interest in all other academic activities. Third step setting standard to comparing the actual results of the faculty. Final step ends with the correcting deviations by giving advice, counselling, and training to the faculties. The positive side of work should be appreciated with awards and rewards. At the same time the management cautious on the time of giving rewards and punishment decisions, it is not personal affairs and has influence in the entire institute success. Reward allocation involves sequential decisions about who are eligible to reward, how to reward them, and when to reward them. This will shape and sharp entire faculty behaviour, either directly or through explicit wisdom at the times of new assignment implemented. Faculties watch what happens to peers who make mistakes; then they fiddle with their own behaviour consequently.

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Faculty Work Performance Need for the Study

It is probable that a number of personal specific variables and a number of institution level variables may sensible or influence employees perceptions of problems with work performance in the institution. Personal specific factors include the privileges and expectations associated with their job. To meet cost of living and other incidental services money is the prime requirement, similarly to gain dignity in the society, a strong and respectful designation is desirable. Hence the personal expectation is differs from one person to another person. While applying this scenario in teaching profession, some faculty members expect monetary benefits than non-monetary benefits and rarely a few are expect nonmonetary benefits than the monetary emoluments. Teaching profession is somewhat connected with the toughest job characteristics. Faculty members are considered as the role model for the students and society. It is not advisable to treat a faculty like a labour, executive or manager, he delivers the role of guru to their students. If there is any scarcity in the above personal specific variable, the faculty cant continue their position in the long-run. These kinds of personal benefits cannot attainable alone; these are all blended with their job. If the institution failed to satisfy the faculty members in this regard, the ultimate loss will be in the hands of the institution. Hence it is advisable to bring job satisfaction by giving enough job security with the suitable remuneration plan. Among the all reasons pay plays a significant role in the work performance of faculty members. Some types of faculty members may be more sensitive to perceived inequity-related to pay. Similarly, some organizational features may heighten faculty members perceptions of inequity. Little empirical research has been conducted on the potential influence of personal specific and institutional level variables on perceived problems with merit plans in institutions of higher education. There were plenty of empirical research in the field of performance management system, however, has recommended that personal specific variables such as gender, age, experience, seniority, educational qualification, period of work or tenure may influence faculty members perception of pay inequity and their responses to pay inequity. In addition to that, particularly, this research has recommended that the institution level variables like, superior tendency, management policy on human resource management, ineffective human resource policies, inflexible work timing, excessive work load, torturing environment, lack of freedom in the delivery of work, salary level, timing of salary given, performance management system and many more influence faculty members perceptions of and responses to pay inequity. To meet economic, social and cultural challenges in work performance of faculty members require flexible institutional structures and an implementing trend of modern management approach regarded as by flexibility, portability and the ability to take benefit of modern civilization.

Review of Literature
The literature review is specified here to show the reasons why performance management system is desirable in any organization. Constant professional improvement puts ahead the great impact for the need of performance management which is a device to stimulate faculties regarding their work experience in order to improve their professional development and overall institution performance. An endeavour to streamline and modernize institution atmospheres initiates the responsibility and efficiency of faculties work. This provides great insights for performance management in institutions because performance management fills the gap in the needs to manage faculty performance and it is also used to get a basis posture for professional development and feedback in terms of vocation performance (Crouch, & Mabogoane 2001). Whether it comes through district decentralization or school choice options, site-based budget autonomy has been theorized to have the potential for improving resource allocation and school performance (Odden and Clune 1998). Odden and Kelley (2002) argues that school-based budgeting allows for more flexible and efficient compensation plans aligned with performance and skills. Spending flexibility may lead to improvement in student achievement. Memon (2007) concluded that quality of faculty is an input to institutional success and for ensuring the quality of faculties there must be well defined performance criteria. This study quoted

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educational qualification, teaching practices, nonexistence of proper monitoring system or effective supervision as reasons of low quality of teaching. Stephan and Dorfman (1989) found that the outcomes of effective performance appraisal are improvement in the accuracy of employee performance and establishing relationship between performance on tasks and a clear potential for reward. According to Grote, D. (2000), Public organizations defined that Performance appraisal today use an essential part of organizational life, for it help to justify compensation differentiation, promotion, demotion, selection validation, and termination. A curiosity in performance management has been an issue of latest academic attention (Otley (1999); Ferraira and Otley (2005), as has a distress with the use of targets in this perspective. This attention is significant in relation to the public services where there has been a distinguished practical focus on the use of targets (Broadbent and Laughlin, 2006) which are argued to be performance procedures that can be used in the context of performance management system. Broadbent and Laughlin (2003) formerly argued that in making themselves politically responsible to the electorate the government has at the same time unmitigated managerial accountability down to the operational essentials of the public services putting an importance upon the achievement of particular targets and procedures. There is a sufficient amount of empirical evidence exists in private sectors that indicates that merit pay plans generally have a positive impact on employee performance and organizational productivity (Heneman, 2002; Huselid, 1995; Jenkins, Mitra, Gupta, & Shaw, 1998, Locke, Feren, McCaleb, Shaw, & Denny, 1980). Very little empirical research has been conducted concerning the pressure of merit pay plans on faculty performance in four-year colleges and universities. However, one recent study found that faculty perceived their merit pay plans to have a somewhat positive effect on teaching effectiveness, service levels, and research quantity and quality (Terpstra & Honoree, 2008). Problems with the design or implementation of merit plans may interfere with employees perceptions of either distributive equity or procedural equity (Folger & Konovsky, 1989; Terpstra & Honoree, 2003). Perceived pay inequity may lead to decreased motivation and performance, lower overall job satisfaction, higher absenteeism and turnover, and more pay-related grievances and lawsuits (Milkovich & Newman, 2005). Some notable exceptions (Konrad & Pfeffer, 1990), previous research on the determinants of faculty pay has been largely a theoretical in nature and driven by curiorsity. A tighter coupling between theory and empirical research findings is sorely needed in this research domain. This present study addressed this problem, using an agency theory perspective to test the hypothesis framed on the determinants of faculty pay. Agency theroy has previously been used to provide a theoretical framework to predict the basis of pay for non-programmable jobs, or jobs consisting of tasks that are difficult to structure and where incumbents enjoy extensive discretion, such as those of executives (Tosi & Gomez-Mejia, 1989) and salespersons (Eisenhardt, 1988). This study show how agency theory can be applied to univesity faculties through tests of hypothesis on faculty payderived from an agency theory framework. This process improves conceptual understanding of the determinants of faculty pay; it also provides some interesting extensions of agency theory to the study of intra-organizational pay allocations. Raj Mestry et al.(2009) Evidence in literature indicates that Continuing Professional Development of teachers is essential in creating effective schools. The many changes that have taken place in the education system arise out of the implementation of legislation and policies and the restructuring of the education system to align with the vision of the National Department of Education. F H Weeks (2012), This paper is directed at gaining conceptual clarity as to what is meant by a culture of learning and exploring two fundamentally different views as to how such a culture can be nurtured within South African schools. The study is based on a multi-disciplinary literature review to gain an understanding of the concept and the theo-ries advocated for bringing about a culture change. D Vos et al, (2012) The investigation indicated that the behaviour of the principals and that of the educators contributed only to an average degree to the establishment of a more effective organisational climate in the primary schools investigated.

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In addition to that the adoption of Total Qualtiy Management enhances credibility to meet the requirements of the facutly performance which leads to improve its competitive position among other similar academic institutions (Cornesky, 1994). The concept of quality has been changed following the development of management science with new dimensions (Daradkeh and Shibli, 2002). Management researchers and scholars have argued on the definition of total quality management based on their cultural back ground and work performance. Therefore, it is a management philosophy, strategic approach and mean of change aimed to transfer modern organizations to patterns of thought and action fits with environment and modern future requirements for bringing high work performance (Dagher, 2001).

Objectives of the Study

The study is carried with the following specific objectives: 1. To identify the factors affecting performance of faculty members in technical educational institutions. 2. To identify whether the institutions vision, mission and the objectives with regards to performance are communicated to faculty members. 3. To measure the effectiveness of the performance management systems adopted in educational institutions. 4. To know the training and development initiatives undertaken by the management to achieve their objectives. 5. To give suggestions to management for apt use of resources and better performance management of faculty members.

Methodology
Sample & Design This study has used personal interview method to examine the impact of performance management system on private technical education institutions of Tamilnadu. Dual sets of sample is affianced to this study, the first set deals with the selection of educational institutions and second set related with selection of respondents for the study. Selection of sample is based on the availability of faculty of members and their willingness to convey response for the questions included in the questionnaire. Convenience sampling method is adopted to collect the sample. Sample collection is carried in the major educational hub of Namakkal, Erode, Salem, Coimbatore, Chennai, Trichy, Madurai districts of Tamilnadu. 27 educational institutions are selected randomly, in which four are b-schools, five are polytechnic colleges and rests are engineering and technology institutes offering undergraduate and postgraduate courses. 100 respondents are selected for this study which consists of Head of Departments, Directors, and diverse cadres of faculty members had been conducted through convenience sampling. The descriptive research design has been employed for the present study. It is the overall framework for the research and stipulates that what information is to be collected from which sources by implementing what procedures. Survey Instrument A well-structured questionnaire is administered for collecting sample from the respondents. The survey instrument is divided into four sections. The first section in the questionnaire contained information about personal data regarding gender, age, monthly salary, designation, educational qualification, experience and additional responsibilities. The second section describes six factors with 40 components (after checking Cronbach Alpha) on which faculty performance in educational institutions has been measured on a 5 point Likert scale ranging from 5 to 1, 5 is for Highly Satisfied, 4 is for Satisfied, 3 is for Neither Satisfied nor Dissatisfied, 2 is for Dissatisfied and 1 is for Highly

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Dissatisfied. Third section covers the aspect of institute preparedness to convey its vision, mission and objectives, effectiveness of performance management system, and training and development activities to enrich faculty performance. Fourth section attempts to collect suggestions for developing enhanced faculty performance in the institution. Application of Tools Percentage analyses, Factor analysis, Multiple Linear Regression, T-test and Chi-square have been used to analyse the data and get inferences from the data collected. Factor analysis is popularly used to condense the larger number of variables into fewer dimensions for identifying the significant factors influencing faculty performance in the institution. Multiple linear regression analysis has been applied to analyse the impact of various factors on the faculty performance in the work place. Percentage analysis describes the content in demographic information of the respondents. Demographic information of respondents is checked the provision of training and development initiative and performance management system through chi-square test. Graphical representation will be given to incorporate faculty suggestions for implementing better performance management system.

Results
Analysis of Personal Profile The collected data has been analysed using simple percentage analysis as per its components, which is presented in table 1.
Table 1: Personal Profile of Respondents
Sample Number 81 19 52 33 11 4 47 28 18 7 49 32 12 7 34 21 24 21 33 16 48 3 48 28 15 9 Frequency 81% 19% 52% 33% 11% 4% 47% 28% 18% 7% 49% 32% 12% 7% 34% 21% 24% 21% 33% 16% 48% 3% 48% 28% 15% 9%

Distribution Male Gender Female 23 - 30 31 - 35 Age 36 45 46 & Above Less than 15,000 Monthly Salary 15,001 20,000 20,001 35,000 35,001 & Above Lecturer Assistant Professor Designation Associate Professor Professor/Director UG Educational PG Qualification M.Phil/ Others Ph.D Science & Humanities Department Management Engineering Others Up to 2 Years 3 5 Years Experience 6 10 Years 11 & Above (Source: Primary data)

Attributes

Table 1 presents the personal profile of the respondents who have included for this study. It could be noted from the above table 81% of respondents are male and 19% are female, age is identified as one of the variable that had significant impact in the performance of faculty members, in this study

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52% respondents falling in the age group of 23 30 years. Monthly salary is an important variable having impact in the faculty performance, here majority (47%) of respondents are getting less than Rs.15,000 per month. Lecturer and assistant professor cadre is occupied 49% and 32% respectively in designation part. Educational qualification clearly shows that UG occupies 34% and remaining qualifications occupies equally. Engineering (48%) disciple is considered largely for the present study and 48% of respondents fall up to 2 years experience.

Factors Affecting Faculty Performance

Performance management system must be continuing and its focal point must be on performance tracking and improvement rather than assessment of performance. It means institute should examine the individual performance and organize interim meeting with individual to guide and mentor to them. In addition to that special training should be arranged in the areas which institute or faculty wants to improve. Faculty performance is depends on the various factors in the job content, management perception and attaining objectives. This can be categorized like personal benefits, job security, additional responsibility, training and development, teaching aid and facilities and work freedom. Personal benefits enlists the elements associated in the enrichment of faculty own affairs like remuneration, casual and other leave, on-duty provision, permission to attend university valuation and attending programmes, giving incentive for paper publication, granting of permission of further study, funds for membership and rewards for producing cent percent results. Similarly job security arises in eight elements, additional responsibility and training and development alters faculty performance through seven ways, teaching aid and facilities having impact in five ways and work freedom expects four other elements. These factors and its components are presented in table 2.
Table 2: Results of Factor Analysis
Components Remuneration Leave Facilities On Duty Provision Permission for Valuation Permission for Programme Publication Incentive Permission for further Study Funds for Membership Rewards for Performance Excessive work pressure Torturing environment Students Complaints Feed-back System Enquiry Evening Classes Results HOD/Principal Behavior Placement Clerical Work Developmental Work ISO/NAAC Work Estate/Property Responsibilities Admission Work Committee Work Staff Development Programme FDP/Workshop (Outside) Organizing Seminar & Conferences Creating Pedagogy Skills Interaction with Industry Factor Loading 0.911 0.784 0.743 0.694 0.582 0.524 0.779 0.512 0.798 0.876 0.862 0.673 0.715 0.721 0.823 0.847 0.724 0.718 0.756 0.787 0.535 0.536 0.726 0.788 0.769 0.778 0.726 0.613 0.682 0.697 Eigen Value % of Variance Explained

Factors

Personal Benefits

7.341

23.395

Job Security

6.214

18.894

Additional Responsibility

5.322

15.056

Training and Development

4.736

9.328

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Table 2:

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Results of Factor Analysis continued
Optimum Workload Tie-up with Leading Institutes LCD Presentation Smart Board Internet Library Amenities Own Teaching Style Work Autonomy On-time Entry & Exit Participation in Decision making 0.639 0.816 0.529 0.823 0.796 0.673 0.810 0.797 0.693 0.617

Teaching Aid and Facilities

3.064

5.267

2.127

3.051

Work Freedom Source: Primary data

Work performance of teaching faculty relies on the expectation and avoidance of certain factors associated with their job. Offering adequate personal benefits directs the faculties to perform their job through self-motivation. Job security of faculty is disturbed largely by the academic work pressure from the management and students. Assigning additional responsibilities diminishes faculty performance, providing adequate training and development, teaching aid and other facilities and work freedom will ensure peaceful working atmosphere. Putting together all factors explain 74.991% of variance in data in six factors affecting faculty performance. Personal benefits are the high influential factor in faculty performance and it is loaded with nine elements and it explains 22.326% of variance with the Eigen value of 7.341. Job security is another prominent factor in faculty performance, which is encumbered with eight elements. It explains 18.894% of variance with the Eigen value of 6.214. Assigning additional responsibility has an impact on the faculty performance and this factor is concerned with the assignment of clerical work, admission work, development work, placement, estate in-charge and so on. Seven variables are grouped under this factor and it explains 15.056% of variance and has Eigen Value of 5.322. Proper training and development will bring required quality of performance among the faculty members; hence this factor is loaded with seven components. It explains 9.328% of variance and has Eigen value of 4.736. Facilitating teaching aids and other facilities can be done through LCD, smart board, internet, well-equipped library and amenities. It explains 5.267% of variance and has Eigen value of 3.064. Work freedom is loaded with four components and it explains 3.051% and had Eigen value of 2.127.

Factors Affecting Faculty Performance

Table 3 describes multiple liner regression, which is used to analyse the factors affecting faculty members performance in the institutions.
Table 3: Factors affecting Faculty Performance
Dependent Variable Faculty Performance Un-standardized Co-efficient B Std. Error -0.857 0.664 0.431 0.045 0.182 0.074 0.209 0.093 0.093 0.179 0.112 0.746 0.121 0.106 0.047 Beta Coefficient 0.491 0.145 0.131 0.087 0.106 0.124 t-value -1.496 6.264$ 2.123@ 2.145@ 0.889* 1.975@ 1.994@ Sign. 0.118 0.000 0.029 0.028 0.369 0.072 0.063

Independent Variables Constant Personal Benefits Job Security Additional Responsibility Training & Development Teaching Aid & Facilities Work Freedom R

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Table 3:

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Factors affecting Faculty Performance continued

R Square 0.573 Adjusted R Square 0.50 F Value 23.251$ Note: $ significant at 1%, @ significant at 5% and *significant at 10%.

Table 3 explains the values of R2 (0.573) and adjusted R2 (0.50) which indicates 57.3% of variation on faculty performance is explained based on six fundamental factors described in faculty performance. From the list of six independents variable, personal benefits possess highest beta coefficient (0.491) and t-value (6.264) are statistically significant at 1% of level. It strongly evidences that personal benefit plays a crucial role in the faculty performance in the work place. Likewise job security (0.145), additional responsibility (0.131), teaching aid & facilities (0.106) and work freedom (0.124s) are statistically significant at 5% level. Training and development (0.087) is significant at 10% of level. It is concluded that all the six factors have relative influence on the performance of faculty members in the educational institutions.

Chi-square Analysis
Chi-square analysis is used to test the relationship between personal profile and their attitude towards various institute activities shown in the following table.
Table 4: Chi-Square Test
No relationship between Experience and Institute Objectives Gender and Effectiveness of PMS Education and Effectiveness of PMS Designation and Training & Development Initiatives Calculated Value 14.802 4.234 13.858 16.743 Degrees of Freedom 6 2 6 6 Table Value 12.592 5.991 12.592 12.592 Result Rejected Accepted Rejected Rejected

It could be concluded from the table 4 that the calculated chi-square value is more than the table value and null hypothesis is rejected at 5% of level of significance to the relationship between experience of respondents and vision, mission and objectives of institute. Similarly relationship between education and effectiveness of performance management system, and designation and training and development initiatives also rejected. The relationship between gender of the respondents and effectiveness of performance management system is accepted at 5% of level of significance.

Graphical Representation
The faculty members are asked to suggest few things for bringing better performance management system in the workplace. As per the ideas generated in pre-test all the aspect of faculty development can be categorized in to seven ways. These are explained with the respondents suggestions in the figure 1.

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Figure 1: Suggestion for Healthier Performance Management System

Source: Primary data

It is noted from the above figure 1, systematized workflow ensures proper performance management system to faculties of technical institutions, it is revealed by 14% of respondents. Systematized workflow gives proper direction to perform their day-today work. Training and development preferred by 16% of respondents for bringing healthier performance management system in the institution. Compensation policies have impact on the performance hence it is opted by 12% of respondents. Recognition and appreciation is the curing techniques in the depressed situations, it is suggested by 18% of respondents. Optimum work load will bring healthier performance among the faculties; it is the suggestions of 17% respondents. Career development activities will enhance the performance of faculty to 13% respondents. Resource accessibility will bring huge performance among the faculty members, revealed by 10% of respondents.

Conclusion
Present research work has been carried out to investigate the factors influencing faculty performance of technical education institutions and is concluded with the following findings. Personal profile contains 81% of respondents are male, 52% of respondents are between the age group of 23-30 years. 47% respondents monthly salary less than 10,000, 49% are lecturers , 34% are UG holders, 48% belongs to engineering disciple and 48% are having experience less than 2 years. Factor analysis extracted six factors which influences highly on the performance of faculty members, which significantly explain 75% of variances in data. These factors are related with the personal benefits of the faculty members, job security aspects, additional responsibilities, training and development, teaching aid and facilities in the college, and work freedom in the routine work schedule. Multiple linear regression results show that all the factors identified by factor analysis have direct and positive impact with the factors influencing faculty performance. It shows 57.3% of variation of factors influencing performance of technical institute faculty members. Chi-square test accepts the null hypothesis of relationship between gender and effectiveness of performance management system at 5% level of significance. Relationship between experience and institute objectives, education and effectiveness of performance management system, and designation and training and development initiatives rejected.

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