Summer Internship Report

On

STUDY OF PERFORMANCE MANAGEMENT SYSTEM AT

UFLEX LTD.
By

SEM SHAIKH
THE M.S. UNIVERSITY OF BARODA

In Partial Fulfillment of Award of Master of Commerce

DECLARATION

I, Sem Shaikh student of Masters of Commerce from The M.S. University of Baroda hereby declare
that I have completed Summer Internship on STUDY OF PERFORMANCE MANAGEMENT
SYSTEM AT UFLEX LTD. as part of the course requirement .
I further declare that the information presented in this project is true and original to the best of my
knowledge.

Date: 15/05/2014

Sem Shaikh

Place: Vadodara

Acknowledgement

The project Title Analysis of Performance Management System at UFLEX LIMITED has been
conducted by me during 01/01/2014 to 30/03/14 at UFLEX Ltd. My project work has been
successfully accomplished due to cooperative efforts of many people.

I am deeply indebted to Dr. U. M. Dangarwala for his precious & illustrious guidance offered. His
inspiring guidance had always encouraged me and boosted my morale and without him this project
could have not been a success.
I owe enormous intellectual debt towards my industry guide Mr. Bhavin, who has augmented my
knowledge in the field of my research. They have helped me learn about the process and giving me
valuable insight into the organization
A special thanks to Mr. Rajesh Solanki for giving me the opportunity of association with the
organisation.
Last but not the least, I feel indebted to all those persons and organization which have helped in the
successful completion of this study.

Date: 15/05/2014

Sem Shaikh

Place: Vadodara

Acknowledgement. i
Certificate from the Faculty Guide
Certificate from the Industry Guide
Executive Summary..

CONTENTS
CHAPTER No.
1

PAGE

TITLE

NO.

INTRODUCTION

OBJECTIVES AND RATIONALE OF THE

PROJECT

REVIEW OF LITERATURE

INTRODUCTION TO THE COMPANY

4
4.1 Company Profile
5

RESEARCH METHODOLOGY
5.1 RESEARCH DESIGN
4

5.2 RESEARCH TOOLS AND

QUESTIONNAIRE
5.3 ACTION PLAN FOR DATA
COLLECTION
5.4 DATA ANALYSIS

RESEARCH FINDINGS

CONCLUSION AND SUGGESTIONS

Bibliography
References.
Annexure

CHAPTER 1
INTRODUCTION

Performance management system (PMS) is the heart of any people management processes in
organization. Organizations exist to perform. If properly designed and implemented it can change the
course of growth and pace of impact of organizations. If people do not perform organizations don't
survive. If people perform at their peak level organization can compete and create waves.
Performance management systems if properly designed and implemented can change the course of
growth and pace of impact of organizations. In the past organizations as well as the HR function have
wasted a lot of time by wrongly focusing on performance appraisals rather than performance
management.
Effective performance management requires:

Identifying the parameters of performance and stating them very clearly.

Setting performance standards

Planning in participative ways where appropriate, performance of all constituents

Identifying competencies and competency gaps that contribute/hinder to performance

Planning performance development activities.

Creating ownership.

systematically deciding and communicating what needs to be done (aims, objectives,

priorities and targets)

a plan for ensuring that it happens (improvement, action or service plans)

some means of assessing if this has been achieved (performance measures)

information reaching the right people at the right time (performance reporting) so
decisions are made and actions taken

A Performance Management System enables a business to sustain profitability and performance by

linking the employees' pay to competency and contribution. It provides opportunities for concerted

personal development and career growth. It brings all the employees under a single strategic umbrella.
Most importantly, it gives supervisors and subordinates an equal opportunity to express themselves
under structured conditions. Managing this process effectively isn't easy. It calls for a high level of
co-ordination, channeled information flow, and timely review. Whether employees are at a single
place, or spread across multiple locations, the use of technology can help simplify the complete
process for more effective information management.
Performance management could be defined as it begins when the job is defined and ends when an
employee leaves the company. Between these points, the following should be understood for a
working performance management system.
Developing clear job descriptions: Job descriptions are the first step in selecting the right person for
the job, and setting that person up to succeed Job descriptions provides a framework so the applicants
and new employees understand the expectations for the position.

Selection: Jobs have different requirements. This is the process of matching the skills and interests of
a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a
selection process maximizes input from potential co-workers and the person to whom the position
will report.

Providing effective orientation, education, and training. Before a person can do the best job, he
or she must have the information necessary to perform. This includes job-related, position-related,
and company-related information; an excellent understanding of product and process use and
requirements; and complete knowledge about customer needs and requirements.

Providing on-going coaching and feedback. People need ongoing, consistent feedback that
addresses both their strengths and the weaker areas of their performance. Effective feedback focuses
more intensely on helping people build on their strengths. Feedback is a two-way process that
encourages the employee to seek help

Conducting quarterly or annual performance development discussions. If supervisors are giving

employees frequent feedback and coaching, performance reviews can change from negative,
evaluative, one-sided presentations to positive, planning meetings.

Designing effective compensation and recognition systems that reward people for their
contributions: The power of an effective compensation system is frequently overlooked and
downplayed in some employee motivation-related literature

Providing promotional/career development opportunities for staff: The supervisor plays a key
role in helping staff develop their potential. Growth goals, changing and challenging job assignments
and responsibilities, and cross-training contribute to the development of a more effective staff
member.

Assisting with exit interviews to understand WHY valued employees leave the organization:
When a valued person leaves the company, it is necessary to understand why the person is leaving.
This feedback will help the company improve its work environment for people. An improved work
environment for people results in the retention of valued staff.

In this research project, I have studied, examined the traditional Performance management scenario of
the company, the process, performance appraisal followed and the role of performance management
in assessing the performance of the employee and procedure followed by the company for feedback
session and the impact of PMS on overall working of Human Resource department and various other
departments. In addition to the above, I have also learned about different forms used by the company
for the same purpose. I have also suggested that company should design KEY RESULT AREAS for
the employees in order for the better and realistic assessment of their performance.
THE PROCESS OF PERFORMANCE MANAGEMENT SYSTEM IN THE COMPANY IS AS
FOLLOWS:-

PERFORMANCE MANAGEMENT SYSTEM IN UFLEX:

WORKMAN FORCE
(90 DEGREE APPRAISAL)
APPRAISAL CYCLE

10

WORKMEN

Workmen dont fill the appraisal form it is

90 degree so their performance is only
measured by their line manager.

Line manager
Corporate HR discusses the cases. Whenever
Line manager
who
have
the information
necessary
discuss
with
Unitallhead
and after about
workmen performance,
theyfrom
report
direct to unit
finalization,
gets the approval
CMD.
head regarding individuals performance.

Unit head
Since it is a 90 degree appraisal, every performance of workmen is measured by the line manager who
directs the workmen. He is like an immediate boss. Line manager comes below the UNIT HEAD. A
Unit Head
the appraisal
form
to report and
good number of line managers are directed by UNIT
HR.HOD
line fills
manager
who have
allaccording
the information
self judgment,
forwards
the sameperformance.
to unit HR, who in turn
about the workmen performance, they report directly
to H.R.and
regarding
individual
sends
at
to
corporate
HR
head.
UNIT HEAD fills the appraisal form according to the given ratings, comments, and self judgments are
UNIT HR
sent to the UNIT HR. He marks the necessary changes in the filled form after his discussion with the
Unit HR
UNIT HEAD. Then this is forwarded to the CORPORATE H.R. who in turn discusses each
individual case and then gets the final approval from CMD. For salary appraisal & for the promotion
if any. Every individual employee is presented with a copy, of his increments signed by CORPORATE
HR which is the result of his appraisal.
All the finalized forms come to Corporate HR. then Corporate HR send the report of performance
measurement to all Appraisee. In that report it is clearly mentioned that The Appraisee appraised in
form of promotion, in term of increasing
salary,
or get some suggestions to improve his performance.
CORPORATE
HR HEAD
If any employee joins before its PMS cycle (Sep to Sep), then it is not included in cycle, Company
doesnt count from joining date; it measures employee performance from its decided date.

11

STAGES OF PMS CYCLE (FOR STAFF- 180 DEGREE APPRAISAL)

12

EMPLOYEE
Fill self appraisal form which is provided
HEAD OF DEPARTMENT

by corporate HR at appraisal time, initiate

the PM cycle

IMMEDIATE SUPERVISOR

Immediate supervisor gives his rating on given

critical attributes and comments on employees
performance, & report to head of department.
CEO, receive all recommendation and finalizes
the rating & pass it to corporate HR.

Head of department compare the ratings and discuss

with HR UNIT on it, then after discussion &
verification, forward it to UNIT CEO.

Unit HR

UNIT CEO
CORPORATE HR
CHAIREMAN APPROVED
THE FORM

Receive all recommendation and prepare

it with justification for above assessment
EMPLOYEE APPRAISED
& takes it to CMD for approval.

CMD

13

Stages of Performance appraisal system:

Employee: employee is the one who actually starts the PMS cycle. He/she initiate the PMS
through filling up the form provided by HR Deptt. This cycle comprises of 75 days
approximately.PMS starts from employee and usually ends at corporate HR people, who finally
provides their inputs on the basis of comments and ratings provided by various stakeholders
involved in PMS cycle.
Immediate boss: as soon as the employee fills up the forms and submits it to next level in PMS
cycle, it is the responsibility of the immediate boss of the employee to submits the form to next
level of approval after submitting/providing the rating as well as his/her comments.
Head of Department: when HOD gets the form from second level of PMS, he/she compares the
ratings and comments which are given by employee & immediate boss. and he/She will review the
same and discussion is done with the Business Unit HR. on the basis of the comments provided
by immediate boss & employee, HOD provides his comments as well as the ratings(with due
interaction/discussion with Unit HR).
UNIT CEO: This is the fourth level of PMS cycle. In this stage the form is received by Unit CEO
and he/she confess the same with stakeholders included, receive all the recommendation and
finalize the rating then pass it to Corporate HR.

Corporate HR: in this stage , the Corporate HR is responsible for the final stage, He/She has to
provide the final input on the form and he/she also has authority /discretion to
replace/remove/change the given ratings to the employee incase he/she is not satisfied with
overall comments & ratings provided by the stakeholders. Corporate HR will check and comments
and measures it with the rating received by employee.
This is the last stage in PMS cycle. The PMS cycle is over here but the PMS work needs to be
closed by passing the form to corporate HR Head and finally to the CMD.
After this workflow/PMS cycle, the increment/appraisal/promotion is decided.

14

15

16

CHAPTER-2
OBJECTIVES

17

To study the process and methods of existing Performance management systems at U flex ltd.

To study the effectiveness of performance appraisal and methods in the company.

To trace the drawbacks in prevailing system and suggest the latest methodology with respect
to same.

To support in bridging the gap between current performance and desired performance.

To Introduce KEY RESULT AREAS instead of self achievement in sales department.

18

CHAPTER-3
REVIEW OF LITERATURE

19

Performance management can be defined as the ongoing communication process that involves both
manager and the employee in:

Identifying and describing essential job functions and relating them to the mission and goals of
the organization
Developing realistic and appropriate performance standards
Giving and receiving feedback about performance
Writing and communicating constructive performance appraisals
Planning education and development opportunities to sustain improve or build on employee
work performance.

Objective of PMS

To confirm the services of probationary employees upon their completing the probationary
period satisfactorily

To check the effective & efficiency of individuals, teams & organization

To effect promotions based on competence and performance

To access the training and development needs of the employees

To decide upon the pay rise

20

PM can be used to determine whether HR programmes such as selection, training, and

transfer have been effective or not.

PMS Includes

Work plan A document that describes the work to be completed by an employee within the
performance cycle, the performance expected, and how the performance will be measured.

Corrective action plan A short-term action plan that is initiated when an employees
performance fails to meet expectations. Its purpose is to achieve an improvement in
performance.

Individual development plan An action plan for enhancing an employees level of

performance in order to excel in the current job or prepare for new responsibilities.

Performance appraisal A confidential document that includes the employees performance

expectations, a summary of the employees actual performance relative to those expectations,
an overall rating of the employees performance, and the supervisors and employees
signatures.

HIGHLIGHTS OF THE SYSTEM

The appraiser and the appraisee jointly set the Key Result Areas (KRAs) and assign mutually
agreed weight age expressed as a percentage.

Simple mathematical relationship between set weight age and accomplishment gives a final
numerical score on KRAs

21

To evaluate all management personnel on company values and leadership attributes a new
section has been added entitled Values in Action

Components of PMS

Performance Standards - establishment of organizational or system performance standards,

targets and goals and relevant indicators to improve public health practice

Performance Measures - application and use of performance indicators and measures

Reporting of Progress - documentation and reporting of progress in meeting standards and

targets and sharing of such information through feedback

Quality Improvement - establishment of a program or process to manage change and achieve

quality improvement in public health policies, programs or infrastructure based on
performance standards, measurements and reports.

22

The essence of the performance management system in organization is to recognize the importance of
the employees towards achieving the organizational objectives. The basic requirement for this is that
the employees personal goals should be perfectly aligned with the vision, mission and the values of
the organization.
The proposed conceptual framework also underscores the vital role of education, training and
development in the envisioned successful organization. In this organization, continuous learning is a

23

prerequisite to successful job performance and organizational effectiveness. Employees must be able
to learn work, developing effective technical and people skills in order to assume new responsibilities,
and keep pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the ability to learn,
adapt to change, solve problems creatively, and communicate effectively in diverse groups. In
addition, employees must take personal and proactive responsibility for their careers to ensure future
employability and advancement.
The realities of the contemporary workplace will continue to challenge existing paradigms and should
be considered in managing the performance of employees in a dynamic working environment.

PERFORMANCE MANAGEMENT SYSTEM

Performance management system (PMS) is the heart of any people management process in
organization. Organizations exist to perform. If properly designed and implemented it can change the
course of growth and pace of impact of organizations. Performance management could be defined as
it begins when the job is defined and ends when an employee leaves the company. Between these
points, the following should be understood for a working performance management system.

Developing clear job descriptions: Job descriptions are the first step in selecting the right person for
the job, and setting that person up to succeed Job descriptions provide a framework so the applicants
and new employees understand the expectations for the position.
Selection: Jobs have different requirements. This is the process of matching the skills and interests of
a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a
selection process maximizes input from potential co-workers and the person to whom the position
will report.

24

Providing effective orientation, education, and training. Before a person can do the best job, he or she
must have the information necessary to perform. This includes job-related, position-related, and
company-related information; an excellent understanding of product and process use and
requirements; and complete knowledge about customer needs and requirements.

Providing on-going coaching and feedback. People need ongoing, consistent feedback that addresses
both their strengths and the weaker areas of their performance. Effective feedback focuses more
intensely on helping people build on their strengths. Feedback is a two-way process that encourages
the employee to seek help Conducting quarterly performance development discussions. If supervisors
are giving employees frequent feedback and coaching, performance reviews can change from
negative, evaluative, one-sided presentations to positive, planning meetings. Designing effective
compensation and recognition systems that reward people for their contributions: The power of an
effective compensation system is frequently overlooked and downplayed in some employee
motivation-related literature

Providing promotional/career development opportunities for staff: The supervisor plays a key role in
helping staff develop their potential. Growth goals, changing and challenging job assignments and
responsibilities, and cross-training contribute to the development of a more effective staff member.

Assisting with exit interviews to understand WHY valued employees leave the organization: When a
valued person leaves the company, it is necessary to understand why the person is leaving. This
feedback will help the company improve its work environment for people. An improved work
environment for people results in the retention of valued staff.

There are three important areas that are covered in performance management. These are shown in the
diagram below.

25

Key Result Areas

Ke
y
res
ult
are
as
Th
ey

Goals

Key
Performance
Indicators

dea
l
wit

h the outcomes or results managers are responsible to achieve. A KRA refers to a target that needs to
be achieved by the appraisee in a given time. Key result areas deal with the ends and not means to
them. The word key signifies the vital few results that are important. The results are the things that
are intended consequences of the things you do. The word areas means that the results could be
made up of clusters of related but specific results. There is no strict limitation but as a thumb rule the
managers should have no more than four to five key results areas.K.R.A in the company are identified
soon as a person is assigned with certain job role and responsibilities. They are uniquely identified on
the basis of intersection of the level of operation & the vertical of operation.KRAs are the set of
performance expectations from the appraisee.

K.R.As are set on the combination of following features:Project Requirements: These are of technical nature

26

Goals
Goals are the tools used to achieve the results. Goals are how you turn intentions into action. The
dictionary meaning of the goals is the end to which the design tends. To develop this concept let us
go back a bit to the vision and mission of the organization and then link it to the goals.
The vision that any company has is just like a destination. The vehicle that the company is use to
reach this destination is nothing but the mission. The values of the company give a broad direction to
journey. The organization should strive hard to reach the destination but never by compromising on
the values. The distance covered in the direction of the destination could be the key result area for
the organization and the speed of travel, stoppage times, and breakdowns could be the key
performance indicators. And the goals will be the path or the road that the organization takes to
reach the destination. That is the goal is the intention expressed by the organization to make a
positive change in the direction of the long-term vision and mission of it.

27

Performance Management in Employee perspective

Till now we have seen how the performance management can be used to improve the business
processes and to achieve success in moving towards the mission and vision of the organization. Now
we will concentrate our effort on performance management in to effectively utilize the human capital
that the organization has. We will not discuss the exact performance management framework for the
employee performance management because this framework will vary from industry to industry and
also from organization to organization. But nevertheless we will discuss how to arrive at the
framework in detail.
Performance management in the HR perspective.
Performance management can be defined as the ongoing communication process that involves both
manager and the employee in:

Identifying and describing essential job functions and relating them to the mission and goals of
the organization Developing realistic and appropriate performance standards Giving and
receiving feedback about performance Writing and communicating constructive performance
appraisals Planning education and development opportunities to sustain, improve or build on
employee work performance.

Advantages of performance management

People believe that they have stake in the organization.

People feel motivated because they know where the organization is moving.
Infighting and politics ceases to exist.
.
But many a times measuring the performance can not be that simple to be measured in terms of direct
performance indicators. Many a times non-quantifiable parameters could also be the performance

28

areas. For example brand loyalty. In such kind of cases we have to go for Indirect Performance
measures.
The essence of the performance management system in organization is to recognize the importance of
the employees towards achieving the organizational objectives. The basic requirement for this is that
the employees personal goals should be perfectly aligned with the vision, mission and the values of
the organization.

The proposed conceptual framework also underscores the vital role of education, training and
development in the envisioned successful organization. In this organization, continuous learning is a
prerequisite to successful job performance and organizational effectiveness. Employees must be able
to learn work, developing effective technical and people skills in order to assume new responsibilities,
and keep pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the ability to learn,
adapt to change, solve problems creatively, and communicate effectively in diverse groups. In
addition, employees must take personal and proactive responsibility for their careers to ensure future
employability and advancement.
The realities of the contemporary workplace will continue to challenge existing paradigms and should
be considered in managing the performance of employees in a dynamic working environment.

29

CHAPTER-4
INTRODUCTION TO THE
COMPANY

30

UFLEX INDUSTRIES LTD.

CMD Mr. Ashok Chaturvedi
UFLEX is a Multi Million Group headquartered at Noida, on the periphery of New Delhi, India and
having manufacturing facilities in India & Dubai. UAE, offices in Europe and North America and
market presence in 80 countries around the world. Flex facility enjoys ISO 9001 and ISO 14001
certifications and has FDA and BGA approvals. For their products, U Flex is part of the D&B Global
Database and winner of various prestigious national and international awards like the top exporter of
BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL and the
Dupont Awards in 2004-2005 are the latest in this series. UFLEX Group came into existence in 1983
and has grown into one of the biggest multi integrated packaging groups in the world. Uflex Limited,
the India-based flexible packaging giant, began its existence nearly two decades ago and has come a
long way since then offering a vast array of innovative products and services that enrich life, improve
performance and create value for the customers and shareholders
. The group is a multi faceted organization which has backward integrated its operations from
manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metallized form),
Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all
types of packaging & printing machines, offering total flexible packaging solutions to the entire
w

They manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPP
Films, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates and Pouches
and have emerged as a one stop shop committed to providing customers with competitive
advantage, placing top priority to customer success. With consistent quality, production expertise,
continuous innovation in products and technologies, a dedicated work force and a highly motivated
corporate team, the Uflex group is expanding at an immense pace. The Film Division of Uflex Limited
is one of the largest manufacturer, supplier and exporter of a variety of Plastic Films in the world.

31

Mission
We believe in using our creativity and aesthetic potential in providing flexible packaging solutions
which make packaging easier, faster, more efficient and user friendly. In this way we too have a share
in contributing to the conservation of resources by enhancing the shelf life of the perishable
products.
Vision
At UFLEX we believe that, to eventually emerge as a World leader in providing total Flexible
Packaging

solutions,

we

need

customer

focused

approach.

The way to being a world class player is paved with state-of-the-art facilities blended with world class
practices. And it shall be our endeavor to be placed amongst the top ten international players by the
year 2005.
Endeavour
Their endeavor is to enhance stake holders value.
PRINCIPLES
People Related

People come first whatever they do

Each individual is the organizations responsibility first

Each individual is competent and capable of taking responsibility for himself

Each individual is unique and talented

Each individual is working in the interest of the organization

NO individual is a write off

Work related

High priority to quality and process improvements

Focus on customer expectations

Environment friendly manufacturing

Working with facts and data

Working on causes not only on phenomena

Cost efficiency , Respect for people

UFLEX Converting Division- The $150million flagship company of the Flex group is India's largest
manufacturer of flexible packaging materials. It is a one-stop shop offering a wide range of packaging
32

solutions. Its vertical integration thrust laid the foundation of two strategic Hi-tech divisions
manufacturing BOPET and BOPP films. Both these units are today among the largest in India.
UFLEX Chemicals Division- Originating from the backward integration thrust of Uflex Limited, the
Company is now an independent entity, developing and manufacturing Polyester Chips, wide range of
Adhesives and Printing inks. UFLEX Chemicals has diversified into Info Tech Industry offering call
centre services and software solutions.
UFLEX Engineering Division- Established with a view to expand the end use of flexible packaging.
It is now one of the foremost engineering companies in India. It offers a wide range of proven
sophisticated PLC controlled FFS packaging machines and converting equipment.
The projects division of UFLEX Ltd. offers specialized services in planning, design, monitoring and
execution of all Civil and Electromechanical works.
UFLEX Foods - A 100% Export oriented State-of-the-art freeze dried mushroom manufacturing
plant is set in the sylvan resort town of Dehradun in the foothills of the Himalayas.

33

CHAPTER-5
RESEARCH
METHODOLOGY

RESEARCH DESIGN

34

Research design is the plan, structure, and strategy of investigation conceived so as to obtain
answers to research questions and to control variance According to Kerlinger.

The plan is an outline of the research scheme on which the researcher is to work. The structure of the
research is a more specific outline or the scheme and the strategy shows how the research will be
carried out, specifying the methods to be used in the collection and analysis of the data.Research
design is the blueprint of the research it lays down the method and procedure for the collection of
requisite information and its measurement and analysis with a view to arriving at certain meaningful
conclusions at the end of the proposed study

Research design used in the project

The Research method followed in this project is Descriptive Research. I chose the mentioned
research method as the basic objective of the project was to examine Performance management
system prevailing in the company, suggest some suitable changes in existing system in order to make
it more positive and meaningful in achievement of desired organizational goals.

Descriptive studies
Descriptive studies are undertaken when the researcher is interested in knowing the characteristics of
certain groups such as age, sex, education level, occupation or income. It can also be conducted when
he wants to know the proportion of people in a given population who have behaved in a particular
manner, making projections of a certain things; or determining the relationship between two or more
variables. The objective of such a study is to answer the who, what, where, and how of the subject
under investigation. Descriptive studies are well structured. It is therefore, necessary that the
researcher gives sufficient thought to framing research questions and deciding the types of data to be
collected and the procedure to be used for this purpose. If you are not careful in the initial stages you
may find that either the data collected are inadequate or the procedure used is cumbersome and
expensive.

35

The data and records of the employees are also examined to understand the purpose well. Then the
research was designed as a good research design facilitates the study and makes it an efficient as
possible. A systematic research with structured and specified steps in specified sequence was designed
and is as follows:

Step1: The objective is specified with sufficient precision to ensure that data collected is relevant.
Step 2: The data collection method to be used is questionnaires, interviews and observations. While
designing data collection procedure, adequate safeguards against bias and unreliability are ensured.
Step 3: The questions are prepared in a clear, understandable manner.
Step 4: The sampling design used is stratified random sampling, under this sampling design; every
item of the universe has an equal chance of inclusion in the sample.

RESEARCH TOOLS AND QUESTIONNAIRE

Sampling Design
Sample size: Random sampling technique was adopted to choose the respondents for the sample.
This technique was used keeping in view the scope of the study, which try to cover different
departments and cadres of people. The sample drawn is 50 which are from the whole population.
Sample universe: UFLEX INDUSTRIES LTD., SECTOR- 4, NOIDA

Research tools : The instrument used by me for collecting the information is QUESTIONNAIRE
which contained questions covering various aspects related to performance management system. It
contained open ended questions, questions based on likert scale and close ended questions.

ACTION PLAN FOR DATA COLLECTION

36

To obtain the data free from errors, I performed every step carefully while collecting and recording
information and tried to get complete, comprehensible and consistent data The data for the present
research study was collected through two methods:
1. Primary data collection method
2. Secondary data collection method

PRIMARY DATA COLLECTION

The primary data are those which are collected afresh and for the first time. These data are obtained
by a study specifically designed to fulfill the data needs of the problems at hand. Such data are
original in character.
Collected through:

Methods of primary data collection:

The primary data has been collected through following methods:

1. Interview method:
Direct personal interview method was used to collect the information from the respondents
(employees) by personally visiting and meeting the people from whom data have to be collected. This
method was used because the project includes an intensive study of a limited field. Moreover, the data
needed for the purpose is more of personal nature which can be collected through directly
communicating with the employees in order to increase its reliability. The information thus collected
is original, accurate and in depth.
The interview was unstructured as it was characterized by flexibility of approach to questioning and
did not follow a system of pre-determined questions and standardized techniques of recording
information. The method of unstructured interview was chosen so as to have greater freedom to ask,
in case of need, supplementary questions or at times to change the sequence of questions.

37

2. Questionnaire method:
In this method, a questionnaire was made consisting of a number of questions to be answered and
filled by the respondents (employees) on their own. This method was used in order to enable the
respondents to answer the questions as per their convenience and to provide those adequate to give
well thought out answers. Thus this further increases accuracy.
Secondary data:
The secondary data are those which have already been collected by someone else and which have
already been passed through the statistical processes. Thus such data is not originally collected rather
obtained from published or unpublished sources.

Methods of secondary data collection:

Company Journals, Magazines, Internet, Books and newspapers. . The collection of the secondary
data was done through published sources and Unpublished sources of Performance management.

The methods of collecting primary and secondary data differ since primary data are to be originally
collected, while in case of secondary data the nature of data collection work is merely that of
compilation.

DATA ANALYSIS

SECTION B: NATURE OF CURRENT PERFORMANCE MANAGEMENT

SYSTEMS:

Q1. Does your organization operate a formal performance management system?

38

OPTION
S

NO. OF
RESPONDENT
S

PERCENTAGE

YES

50

50

NO

Q2.What is the degree of performance management system prevailing in your company?

a) 80

b) 90

c) 270

d) 360

39

OPTIONS NO. OF
PERCENTAGE
RESPONDENTS

80

50

90

50

270

360

Q3. Please indicate which of the following methods of performance appraisal

Form a part of your system?

40

a) Written Essay method

f) Critical Incident assessment

b) Graphic rating scales

g) Behavioral Assessment (BARS)

c) Ranking method

h) Paired Comparison Method

d) 360 degree appraisal

i) Forced distribution method

e) Self appraisal

j) Balance Score card

k) Any other pls. specify_______________

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

Written Essay method

46

92

Graphic rating scales

14

28

Ranking method

360 degree appraisal

Self appraisal

50

10

Critical Incident
assessment

Behavioral Assessment
(BARS)

41

0
Paired Comparison
Method

0
0

Forced distribution
method
0
0

Balance Score card

Any other pls.

specify_______________

42

4. Who sets the performance goals/requirements for individuals?

a) Senior Managers

b) Line managers/Team leaders

c) HR professionals

d) Appraisee

e) Appraiser & Appraisee

e) others (pls. specify)

OPTIONS

NO. OF RESPONDENTS

PERCENTAGE

Senior Managers

36

72

Line managers/Team
leaders

27

54

27

54

HR professionals

43

Appraisee

10

20

Appraiser & Appraisee

27

54

others (pls. specify)

Q5. What are the determinants for job performance in your organization?

44

Organizational Culture

Technology

Competency of the employee

Intelligence

Attitude

Aptitude

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

Organizational Culture

Technology

10

Competency of the employee

41

82

Attitude

18

Intelligence

10

45

Aptitude

18

6. In general, how effective has your organizations performance management

Processes proved in improving overall performance?
a) Effective

OPTIONS

b) Moderately effective c) Ineffective d) Dont Know

NO. OF
PERCENTAGE
RESPONDENTS

46

7. Do you expect any changes in The Current Performance Management System In your
Organization?
a) Yes

b) No

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

YES

18

NO

18

47

INTERPRETATION

The analysis shows that Uflex ltd follow formal Performance management system although the nature
of Performance management is traditional they are not in pace with the latest development in this
field. Also, maximum responses show that degree of Performance appraisal followed is 90.amongst
various methods of performance appraisal Self appraisal is used on a large scale in Uflexltd. It also
indicates that senior managers lay down performance requirements for employees, although line
managers and HR professionals contribute as well to the above purpose. Being a semi government
organization performance management practices are not followed on a large scale in the company but
still majority of population says that while measuring performance of employee Competency of
employee plays a major role apart from Intelligence, attitude, aptitude of the employee. Majority of
employees feel that current Performance management processes has proved quite effective in
improving the overall performance of employee in the company. Despite of all these aspects of
Performance management employees still feel that there should be some changes in the current
performance management practices so that employees of theUFlex ltd can work more effectively
towards fulfilling the organizational goals and take company to higher levels.

48

SECTION C: PERCEPTIONS OF HR PROFESSIONALS ABOUT PERFORMANCE

MANAGEMENT SYSTEMS:

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

Retention
strategy
a) Strongly
Disagree
b) Disagree

c) Neutral

14

28

d) Agree

36

72

e) Strongly
Agree

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

Reward
Allocation

49

f) Strongly
Disagree
g) Disagree

h) Neutral

14

28

i) Agree

36

72

j) Strongly
Agree

OPTIONS

NO. OF
RESPOND
ENTS

PERCENTAGE

strongly Disagree

Disagree

Neutral

14

28

Agree

36

72

Identification of training and development

needs

50

Strongly Agree

Facilitates promotions, transfer

and termination decisions
strongly Disagree

Disagree

Neutral

14

28

Agree

36

72

Strongly Agree

51

To clarify an employees
job requirements

strongly Disagree

Disagree

Neutral

23

46

Agree

27

54

Strongly Agree

52

Identifying barriers to
performance

strongly Disagree

Disagree

Neutral

Agree

36

72

Strongly Agree

14

28

53

Motivational strategy

strongly Disagree

Disagree

Neutral

Agree

40

80

Strongly Agree

18

54

2) What according to you is the most challenging aspect of performance management?

a)
b)
c)
d)
e)

Determining the evaluation criteria

Creating a rating instrument
Lack of competence
Errors in rating and evaluation
Resistance

OPTIONS

NO. OF
RESPONDE
NTS

PERCENTAGE

Determining the evaluation criteria

32

64

Creating a rating instrument

14

28

55

Lack of competence

10

Errors in rating and evaluation

Resistance

In this section, I tried to figure out the knowledge and opinions of employees about Performance
management in general. I listed down the few parameters to know the reason of undertaking
performance management system in the company. There are mixes responses, according to
employees Reward allocation i.e. giving rewards on the basis of performance and Motivation being
the major reason for implementing Performance management system. Besides this, retention, to
identify training and development needs, to take decisions on promotions, transfers and terminations,
identifying barriers to performance are also some of the prominent causes for implementing
Performance management. Also, majority of employees says determining evaluation criteria for
employees is the most challenging aspect of performance management system, apart from creating
rating instrument are challenging aspects as well.

SECTION D: PROCESS OF PERFORMANCE MANAGEMENT

56

Q1. To what extent do you agree that the following statements describe Performance Management
Processes in your Organization?

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

strongly Disagree

50

100

Disagree

Neutral

Agree

Strongly Agree

Performance Related Pay is an essential part of

Performance management

57

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

strongly Disagree

25

50

Disagree

25

50

Neutral

Agree

Strongly Agree

Line managers Own and operate The

Performance Management Processes

58

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

Performance
management motivates
individuals

strongly Disagree

Disagree

Neutral

Agree

23

46

Strongly Agree

27

54

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

Performance management is used to

manage organizational culture

59

strongly Disagree

Disagree

Neutral

25

50

Agree

25

50

Strongly Agree

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

strongly Disagree

Disagree

Neutral

10

20

Agree

40

80

Strongly Agree

The effectiveness of Performance management is

measured in Qualitative rather than Quantitative
terms

60

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

The aims and Objectives of performance management are

well communicated and fully understood.
strongly Disagree

Disagree

32

64

Neutral

Agree

14

28

Strongly Agree

61

2. Do you give an overall rating for performance?

a) Yes

b) No

OPTIONS

NO. OF
PERCENTAGE
RESPONDENTS

YES

50

100

NO

62

3. If yes, what sort of feedback do you give?

a) Numerical/alphabetical
c) Verbal (positive and negative)

b) Verbal (all positive)

d) Combination of the above

e) Others (pls. specify)

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

Verbal (all positive)

Verbal (positive and negative)

Combination of the above

50

100

Others (pls. specify)

Numerical/alphabetical

63

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

strongly Disagree

Disagree

Neutral

31

62

Agree

18

36

Strongly Agree

a. Coaching

64

NO. OF
RESPONDENTS

PERCENTAGE

strongly Disagree

Disagree

Neutral

22

44

Agree

27

54

Strongly Agree

b. Training and development

65

NO. OF
RESPONDENTS

PERCENTAGE

strongly Disagree

Disagree

Neutral

41

82

Agree

18

Strongly Agree

c. Career Management and development

66

d. Succession Planning
strongly Disagree

Disagree

Neutral

18

36

Agree

32

64

Strongly Agree

Q5. Did the following people receive training in performance management

Techniques? (Please tick as many boxes as appropriate)

All Employees

Other Managers/team leaders

67

Heads of departments

Appraisers

HR Team

None

OPTIONS

NO. OF
RESPONDENTS

PERCENTAGE

All Employees

45

90

Heads of departments

10

HR Team

10

Other Managers/team leaders

10

Appraisers

10

None

10

SECTION D: PROCESS OF PERFORMANCE MANAGEMENT

68

In this segment, I tried to take an overview of Performance management system of Uflex ltd. with
respect to various aspects. Majority of employees says that performance related pay is not followed in
the company, line managers doesnt operate the performance management processes. Also,
performance management plays a major role in motivating individuals and it is used to manager
organizational culture. In the company, Effectiveness of performance management system is
measured in both Qualitative as well as Quantitative terms. Majority of employees are of the opinion
that aims and objectives of performance management are not well communicated i.e. system is not
transparent employees are not fully aware of the performance management practices in the company.
The company gives overall rating for the performance and the feedback is combination of Numerical
values, verbal and alphabetical. Coaching and career management are important facet of the
companys process along with Training and development and succession planning. The most
important part is all employees receives training with respect to performance management techniques.

69

CHAPTER-6
RESULTS

70

There is communication gap between higher level & staff level. So unsatisfied employee
cannot keep his/her comments and cannot oppose the final decision which is finally made by
only higher authority.

HERE IS THE SAMPLE OF KEY RESULT AREAS DESIGNED BY ME FOR THE

SALES DEPARTMENT:
KEY RESULT AREAS: SALES EXECUTIVES

K.R.A 1 - To deliver presentations of products at customer sites and at conferences and exhibitions.
K.R.A 2 To maintain Companys contact management database with accurate, up-to-date contact
and activity details
K.R.A 3 - To Meet annual sales targets and Produce monthly sales report.
K.R.A 4 - To Maintain contact with existing and potential customers to promote sales and deliver
detailed account plans

71

K.R.A 5 - Understand the market in which the company operates and how the companys products
and services are used within that market
K.R.A 6 - Ensure that company has an in depth understanding of the users of company products and
their ongoing needs.

ASSISTANT MANAGER

K.R.A 1 - To Recruit and train sales force and assist in the management of the overall sales operation
for the Improvement business at a specific branch location.
K.R.A 2 - To assure total program success through motivating, coaching and developing a high
performance sales team.
K.R.A 3 -To Work closely with the Sales Department Head to learn and develop skills necessary to
lead a successful sales team.
K.R.A 4 - To look after the dealer/distributor network for increasing sales and maintaining
relationship with them.
K.R.A 5 - Visiting Corporate, Relationship Building, Selling Financial Products
K.R.A 6 To do Researches, writes and implements policies, standards, procedures and best practice
documentation.
SALES DEPUTY MANAGER

K.R.A 1 To develop and execute as well print, special issues/supplements, newsletters, catalogues
of the B2B magazines. Sell for awards, expos, exhibitions, seminars.
K.R.A 2 To Ensure that monthly targets for advertisements and collection of outstanding payments
are met and maintaining accurate sales forecasts and reports
72

K.R.A 3 - To Provide continuous communication to the customers about their samples, orders and
other logistics issues
K.R.A 4 -

To Maintain excellent communication and coordination with Supply Chain, R&D,

Quality, Finance and Marketing

K.R.A 5 To arrange for meeting revenue targets by developing, managing and growing the
business.
.K.R.A 6 - To Develop and promote market (country/region) specific products, execute market
specific policies.
SALES MANAGER
K.R.A 1 - Developing a business plan and sales strategy for the market that ensures attainment of
company sales goals and profitability
K.R.A 2 - Prepare action plans by individuals as well as by team for effective search of sales leads
and prospects.
K.R.A 3 - Provides timely feedback to senior management regarding performance. And Reporting to
Management about Performance of Sales Team.
K.R.A 4 - To Understand departmental financial data to determine what is happening in your
department. Review financial data that affects your department's profit centers
. K.R.A 5 To Meet daily with salesman. And Offer them the coaching, counseling, advice,
support, motivation or information they need in order to help them meet their sales objectives
K.R.A 6 - Provides timely, accurate, competitive pricing on all completed prospect applications
submitted for pricing and approval, while striving to maintain maximum profit margin

73

74

CHAPTER-7
CONCLUSION AND
SUGGESTIONS

There is Traditional/ Biased Performance management system in the sense that all the
authority lies in the hands of senior management irrespective of the performance level of
individuals.

It is inferred that Performance management system is crucial for any organization, so

organization must invest in specific technology oriented products and services, software &
hardware to improve the performance of employees.

Performance management system is quite traditional in the company, recent technologies are
not adopted.

75

76

77

CHAPTER-8
BIBLIOGRAPHY

References
1) Rao T.V( Performance Management and appraisal system) 2005 fourth printing
2) Sahu R.K (Performance Management System) 2007 edition
3) Michael Armstrong and angela Baron(Managing Performance Management in action) 2005
first edition
4) Decenzo ,A David , Robbins P Stephens ( Personnel and human Resource Management)
Ashok K Ghosh Publications 2007 Edition

78

Websites
www.citehr.com
www.Performanceappraisal.com
www.123manage.com
www.tvrls.com
www.humanresourceabout.com
www.chrmglobal.com

79

80

81

ANNEXURE

82