An In-Depth Study of Performance Management System

AN IN-DEPTH STUDY OF PERFORMANCE MANAGEMENT
SYSTEM
DISSERATION REPORT ON
“AN IN-DEPTH STUDY OF PERFORMANCE MANAGEMENT
SYSTEM AT MOTHERSON SUMI SYSTEMS LIMITED”
Towards the partial fulfillment of the degree of
“POST GRADUATE DIPLOMA IN MANAGEMENT” (2007-2009) to
INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD
SUBMITTED BY
PRIYANKA NARANG
PGDM (2007-09)
UNDER THE GUIDANCE OF

PROF. SUNIL Kr.TYAGI
ITS GHAZIABAD
INSTITUTE OF TECHNOLOGY AND SCIENCE,

MOHAN NAGAR, GHAZIABAD
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CERTIFICATE
This is to certify that the dissertation titled “AN IN DEPTH STUDY OF

PERFORMANCE MANAGEMENT SYSTEM AT MOTHERSON SUMI SYSTEM
LTD” submitted by PRIYANKA NARANG student of PGDM (2007-09) for the partial
fulfillment of the requirement of the POST GRADUATE DIPLOMA IN
MANAGEMENT embodies the bonafied work done by her under my supervision.
I also declare that this dissertation is a result of her effort and no part of this research has
been published earlier or been submitted as a project by her for any degree or diploma for
any institute or university.
Date: Signature of the mentor
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CANDIDATE DECLARATION
I hereby declare that the project titled AN IN DEPTH STUDY OF PERFORMANCE

MANAGEMENT SYSTEM AT MOTHERSON SUMI SYSTEM LTD at Institute
Of Technology And science, Ghaziabad is original and bonafide work carried out by
me during the year 2007-2009 under the able guidance of Prof. SUNIL TYAGI
In partial fulfillment of the requirement of Post Graduate Diploma in Management at
INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD.
I also declare that this dissertation is a result of my effort and no part of this research has
been published earlier or been submitted as a project by me for any degree or diploma for
any institute or university.
PRIYANKA NARANG
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ACKNOWLEDGEMENTS
There are a number of important people I want to thank, without whose support,
guidance, encouragement, and help this work would not have been possible. I would also
like to give my greatest thanks to God who deserves the ultimate praise and credit for all
good things in my life.
First and foremost, I want to thank Prof. Sunil Tyagi , who has been my advisor and
mentor throughout my studies, and served as the chair of my dissertation committee.
Without sir’s patient criticism, continual support, effective teaching, and constant
challenge and encouragement to give my very best efforts to my undertakings, I would
not have learned what I needed to nor been prepared to complete this dissertation and
future work. Much of what I have learned about the craft of research has come from Sir,
and I am forever grateful for the opportunity to have studied under his guidance.
I also want to give thanks to my Director General Mr. Shekhar Ghose who has
contributed immensely to my professional and personal development over the past two
years.
I am grateful to my Chair Person Prof. Parul Malik for her generosity, mentoring,
support, and sense of humor, which have always served to keep my spirits light and my
attitude positive.
As a student specializing in Human resource, I came to know about the ground realities in
topics like Performance management system with special reference to MSSL.
I would not have made it through this research without the support, encouragement,
teaching, and friendship of fellow students in the program.
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ABSTRACT
Training is an integral part of the work situation and is closely related to the career ana
promotion structure. So practical training could be taken as a beginning of a process of in
doctrinate into the ways of a business organization and it is the first step which would be helpful
in future prospect. Training makes the concept clear and help in facing the actual situations.
I have done training at MSSL,NOIDA in Human Resource. During the
training Programme, I got the opportunity to learn valuable things regarding management. It was
my fortune to get the training in a very healthy atmosphere. The management of the company
offered learning situation sufficient facilities and training opportunities to fulfill the objectives of
training.
The project assigned to me was Performance Management System. In
my project report I have studied the procedure of Performance Management System at MSSL.
The process of PMS from Setting Goals till Learning and Development has been done in my
project report. From the study and work of Performance Management System I can say that it is
an important tool for Human Resource and also for the development of the employees.
This Project has really exposed me to a far new world and I sincerely
hope that “MOTHERSON SUMI SYSTEM LIMITED.” Will find my study equally valuable as
found it in shaping my career.
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CONTENTS
1) CERTIFICATE 2
2) CANDIDATE DECLARATION 3
3) ACKNOWLEDGEMENT 4
4) ABSTRACT 5
5) CHAPTER 1: INTRODUCTION
5.1 Introduction of the study 8
5.2 Significance of the Study 9
5.3 Review of existing literature 10

5.4 Objectives Of the study 12
6) CHAPTER 2: RESEARCH METHODOLOGY 14
7) CHAPTER 3: DESCRIPTIVE WORK

7.1 Key factors affecting PMS 16
7.2 Conceptualization of the study 19
7.3 PMS Methodology 21
7.4 Performance Assessment 26
7.5 Annual Increment 32
7.6 Types of Errors in PMS 34
7.7 Company Profile 35
8) CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 44
CHAPTER 5: FINDINGS & RECOMMENDATIONS 73
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CHAPTER 6: CONCLUSION & LIMITATIONS 76

CHAPTER7: BIBLIOGRAPHY 81
CHAPTER -1
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INTRODUCTION
The concept of Performance Management has been one of the most important and positive
developments in the sphere of Human Resource Management in recent years. Performance
Management is, of course, about performance. It is important to clarify what performance means,
because if performance cannot be defined, performance appraisal can’t be done properly and
eventually performance management system cannot be successfully implemented. Performance
appraisal which is key to Performance Management System may be defined as a structured
formal interaction between a subordinate and supervisor, that usually takes the form of a periodic
interview (annual and semi-annual), in which the work performance of the subordinate is
examined and discussed, with a view to identifying weaknesses and strengths as well as
opportunities for improvement and skills development.
Organizations are now looking forward to obtain competitive edge through highly developed
employee skills by adopting an efficient Performance Management system. The efficiency of an
organization depends directly on the capability and talent of its personnel, and how motivated
and satisfied they are. This study throws light on the effectiveness of implementing Performance
Management System in the organization and how Performance appraisal as a key to Performance
Management System helps to increase productivity of employees, which makes the organization
efficiently.
APPRAISAL- the word means “to fix a price or value for something”. So it is a process in which
one values the employee’s contribution and worth to the organization
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SIGNIFICANCE OF STUDY
Today leading organizations are using every available tool with greater vigor to create a more
efficient and profitable business. One of these tools, Performance Management, historically has
been viewed as an effective highly political and time consuming task yet there is hardly a single
organization in the world that does not want a performance management system focused on
results and backed by commitment.
The performance appraisal is the key element in the performance management process. When
used effectively the performance appraisal can provide accurate feedback on past performance,
significantly enhance employees’ productivity and satisfaction and offer feedback to employees
on how to improve. For that reason performance appraisal is one of the most important
responsibilities of supervisor or manager.
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REVIEW OF EXISTING LITRATURE
There are different views on what performance is. It can be regarded as simply the record of
outcomes achieved. On the individual basis, it would then be the record of a person’s
accomplishments (Bernadine et al, 1995; Kane, 1996).
On the other hand, it has also been suggested that performance is behavior and should be
distinguished from the outcomes because the outcomes can be contaminated by systems
prevalent in the organization (Campbell, 1990).
Performance means both Behavior and result Behavior, emanates from the performer and
transforms performance from abstraction to action. Not just the instrument for result, behavior is
also the outcome in its own right and can be judged apart from the result (Brumbrach, 1988).
“Performance Management is a continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning performance with the strategic
goals of the organization” (Herman Aguinis, 2007)
The concept of performance management has been one of the most important and positive
developments in the sphere of Human Resource Management in recent years. The phrase
‘Performance Management’ was first coined by Beer and Ruth in 1976. It became recognized, as
a distinctive approach in mid 1980s, because of the growing realization that a more continuous
and integrated approach was needed to manage and reward performance.
Performance Management System is the process of performance planning, Performance
Monitoring and Coaching, Measuring Individual Performance linked to organizational goals,
giving him/her feedback, rewarding the individual based on his/her achievements against set
performance goals and required competencies, and working out a plan for his/her development.
(Dr. R K Sahu,2007)
. Sound PMS of an organization is directly related to the satisfaction of the employees.

Performance appraisal is always result based rather than be effort based. This sometimes leaves
the employees dissatisfied. However in case of good PM, the appraisal process must be
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transparent which allows the employees to interact with their managers and clarify their queries.
Under a performance appraisal system employees must be able to see some benefits to them,
which is important for personal development of employees. This result in the employee
satisfaction, which increases productivity as the performance of an organization, depends
directly on the performance of its people. (Dr. R K Sahu, 2007).
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OBJECTIVE OF STUDY
• TO STUDY THE RELEVENCE OF “PERFORMANCE MANAGEMENT SYSTEM”

AT MOTHERSON SUMI SYSTEM LIMITED.
• ORGANIZATIONAL BENEFIT OF PERFORMANCE MANAGEMENT SYSTEM.
• RECOGNIZING THE TRAINING NEED & IDENTIFICATION OF TYPE OF
TRAINING.
• TO SUGGEST VARIOUS METHOD TO IMPROVE ITS EFFECTIVENESS.
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CHAPTER -2
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RESEARCH METHODOLOGY
Research process includes research design, which tells about the nature of the study. Research
comprises defining and redefining problems, and suggested solutions, collection, organizing a
devaluating data, making deductions and reaching conclusion. This research is an exploratory
research.
Research Design
The following procedure will be adopted in the project:
A survey of the employees at different levels at MOTHERSON SUMI SYSTEM LIMITED.
will be done with the help of a structured questionnaire.
Sample Size
The sample size of the employees would be around 50.
Sources of Data Collection

The study is primarily based on primary data. Secondary data is collected through company’s
records, books related to the topic, HR magazines and journals, and data from the Internet will
also be taken.
Analysis Pattern
After the collection of data from the primary and secondary sources that will be properly
arranged and tabulated to make analysis and interpretation.
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CHAPTER-3
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KEY FACTORS AFFECTING PERFORMANCE
Ability: Ability is one of the important factors affecting performance management system.
Performance Management of an employee depends upon the ability of an employee. The more
able the employee is, the more he/she is important to the organization. Character traits, skills and
knowledge, which are used in the performance, are termed as the ability of an employee. It is
always present and will not vary widely over short periods of time. Apart from ability many
people who are not motivated keep their performance to an acceptable level by expending only
20-30% of their ability. Managers who know how to motivate their employees can achieve 80-
90% ability levels and consequently higher levels of performance. The amount of effort i.e.
manual or mental energy that a person is prepared to expend on a job to reach a certain level of
performance varies according to incentive and motivation to the employee. (Likert, 1976)
Motivation: Motivation factors are present in the job itself. They include such things as
opportunity for recognition, achievement, and growth. Hence, a leader that recognizes employee
efforts and helps employees achieve and grow can help improve satisfaction, as long as pay is
perceived as fair.
Thus, regularly spending time with employees focusing on development and achievement adds
value.
Maslow and basic needs (1940s & 50s) - broader view extending beyond the work place.
Proposed a hierarchy of needs - the lowest level needs are dominant till satisfied and
performance is affected if the needs according to these levels are not taken care of which can
lead to the dissatisfaction of an employee.
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• Physiological (food, shelter)

• Safety (insurance, security, protection from harm)
• Love (peer groups, recreation, affection, acceptance)
• Self- actualization (creativity, growth, achieving one’s potential)
• Esteem (achievement, status, self respect, recognition).
Also Herzberg’s motivation theory focused on two factors, Motivation and Hygiene. Hygiene
factors such as pay if perceived as unacceptable lead to job dissatisfaction, if perceived as
acceptable lead only to a state of no dissatisfaction. Hence, a large raise may result in a
temporary euphoria, but would not lead to job satisfaction.
Career development: This indicates some key learning’s relevant for our study and has hence
been reproduced. While managing careers we are essentially managing a process of enhancing
performance of individuals and groups to help them contribute concretely towards enhancing
shareholder value. Careers are built in corporations where basics of people management are
adhered to with sincerity and commitment are made only when the intellect merges conclusively
with the commercial and cultural realities of an organization and this cannot happen unless
intellect is given its rightful place through effective performance appraisal. Ever since companies
decided that maybe they should measure how their workers are doing and give the better
performers a raise, employers have married employee performance appraisals with annual salary
reviews. Within a short period of time, the argument began over whether the two should be
linked and, if so, to what extent. One facet of that ongoing debate is whether the size of pay
increase differences makes a difference and whether increasing pay for good performance is a
motivator for even better work the next year
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Feedback: Performance Management System cannot be effective without feedback. As a basic

human tendency people tend to make judgments about those working with them. In the absence
of a meticulously structured objective system of appraisal, people will tend to judge the work
performance of others, including subordinates informally and arbitrarily based on their likes,
dislikes, biases and prejudices. The multi rater feedback process is called 360 Degree Feedback.
The powerful process is perhaps one of the most effective and widely used initiatives to develop
leadership capability, identify potential, and develop strong bonds between teams and for
enhancing key competencies in organizations. The focus of a 360-Degree implementation today,
continues to be on development. Rarely do companies use it for performance appraisals, rewards
and recognition, collecting data on employees or succession planning.
Compensation: Compensation reviews are another matter. In a compensation review, the goal is
to establish the employee's value to the corporation, based on their duties and responsibilities,
potential, and their own financial goals. If employees have a great performance review, they're
going to expect a great compensation package, and that might be difficult. They may view
themselves and their worth higher than the company does, hence dissatisfaction. Any number of
factors can come into play in compensation review, including the company's economic health
and how much it can prudently afford to pay, as well as the employee's skill level,
responsibilities, and longevity– not only with the company, but in their current position. Some
companies have a salary range for various positions that can take experience, seniority, and skill
levels into account. But increases are frequently based more on the economy and how the
company's doing than on actual performance. Most leaders try to give larger increases to higher
performing employees, and smaller increases lower performers..
IN ESSENCE, Performance Management System is the most important tool for every
organization and there are several benefits that a PMS system can offer in making an
organization more efficient and effective. The biggest success factor in all our initiatives has
been the Management’s commitment to fostering a culture of transparency and collaboration,
without which no system can be effective, however good they are. (Robbins, Low, Morel ; 1986.
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CONCEPTUALISATION OF STUDY
PERFORMANCE MANAGEMENT SYSTEM
DEFINATION:
It is defined as a process that consolidates goal setting, performance appraisal and development
into single common system, the aim of which is to ensure that employee’s performance is
supporting the company’s strategic aim. Performance management includes the practices through
which the manager defines the Employees goal and work, develop the employee’s capabilities
and evaluate and reward the personal effort all within the framework of how the employee’s
performance should be contributing to achieving company’s goal.
It refers to a comprehensive scientific approach to ensure a link between efforts of individual
employees with vision and goals of the organization, to achieve excellence in the organization on
one side and satisfaction and growth of employees on the other side.
WHY PERFORMANCE MANAGEMENT:
The increasing use of PERFORMANCE MANAGEMENT by employer reflects several things.

It reflects the popularity of TOTAL QUALITY MANAGEMENT. PM emphasis on the
integrated nature of goal setting, appraisal and development reflect this assumption.PM also aids
the employee’s continuous improvement effort. It means that each employee must continuously
improve his or her own personal performance from one appraisal period to next. Focus of
Performance Management System is of development of mission and goal statement of the
company that includes Development of business plan, Communicating goals and objectives to
employees, Defining role responsibilities, Defining and measuring individual performance,
Defining performance standards and comparing them to Individual performance, Competency
analysis, Continuous monitoring and 360° feedback Conducting performance and development
reviews, Coaching and counseling and Rewarding and Performance problem solving areas its
major components.
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METHODOLOGY OF PMS:
Employee’s performance management includes planning work and setting expectation
developing the capacity to perform continuously monitoring performance and evaluating it.
PLAN
ACT
CHECK DO
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SET INDIVIDUAL PERFORMANCE:
PLAN:
OBJECTIVE LINKED WITH ORGANIZATIONAL GOAL.
DO:
PERFORM AGAINST THE SET OBJECTIVE AND IDENTIFY ANY DEVELOPMENT

OPPURTUNITIES.
CHECK:
CONTINOUSLY MONITER PERFORMANCE AND PROVIDE ONGOING FEEDBACK.
ACT:
DELIVER AGAINST THE SET OBJECTIVE AND FORMALLY EVALUATE THE

INDIVIDUAL PERFORMANCE TO TAKE RELEVENT CONSEQUENCE MANAGEMENT
ACTION WRT PRAMOTION /INCREMENT/IMPROVEMENT PLAN.
FOCUS OF THE PROBLEM
The study focuses on understanding and effectiveness of Performance Management System in

Motherson sumi system Limited. The study throws light on the positive impact and motivating
employees with the performance management system to build the necessary commitment for the
organization.
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PMS – METHODOLOGY:
PMS process consists of four steps:

1. Goal setting
2. Monitoring and feedback
3. Rewards and recognition
4. Learning and development
1. SETTING GOAL:
Setting goal to achieve organizational objective.
Helping people to understand goals.
What need to be done?
How will it be measured?
2. MONITORING AND FEEDBACK:

Conduct review and give feedback.
How well are employees are meeting there goal.
Address issues on performance during the appraisal period.
3. REWARD AND RECOGNITION:

Monitory / non monitory
4LEARNING AND DEVELOPMENT:

Developmental needs are identified, agreed and planned for.
Learning and developmental opportunities provided.
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PMS – YEARLY CYCLE:
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JANUARY
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MANAGERS ROLE IN PMS:

Managers play a crucial link between organization and individual employees. Their action and
attitude are key drivers for the success of any performance management system. The manager’s
role in PMS described below:
• Set goals for employees.
• Create clear expectation for employees
• Provide honest and timely feedback.
• Be fair , reasonable and consistent
• Work towards employees growth and development
• Communicate honestly and directly.
• Provide opportunities for learning through coaching.
EMPLOYEES ROLE IN PMS:

The role of employees in the performance management system is equally critical as that of
manager. The employee’s role is described below:
• Ask question so as to understand clearly what is expected.
• Involve and participate in goal setting exercise.
• Perform work as per assign standard.
• Take charge of your own development.
• Create opportunities to seek and give feedback to your manager.
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SETTING GOALS:
Goals have to be S.M.A.R.T.
• S- SPECIFIC – set clear concrete goal.
• M- MEASURABLE- quantity, quality, cost and time
• A- ACHIEVABLE- realistic should stretch you.
• R- RESULT ORIENTED- Deliverable, accomplishments.
• T- TIME BOUND- deadliness, dates.
FOR EXAMPLE:
“TO ESTABLISH ALTERNATE VENDORS FOR TOP 10 CRITICAL
ITEMS FOR HOME UPS LINE OF PRODUCTS BY JUNE 2007”
EMPLOYEES APPRAISAL PROCESS:

The performance will be assessed as per various parameters set in “performance management
system”. These are:
1. Assessment of performance against goal.
2. Assessment of skills and knowledge.
3. Assessment of attributes and behavior.
1. ASSESSMENT OF PERFORMANCE AGAINST GOAL:

The performance for the year is assessed on the basis of RESULT/ DELIVERABLES
achieved by end of the year against the goals.
2. ASSESSMENT OF KNOWLEDGE AND SKILLS:

Assessment of knowledge and skills is based on:
• Professional and technical knowledge.
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• Professional and technical skills.

• Communication skills.
• Creativity and innovation
• Leadership skills.
3. ASSESSMENT OF ATTRIBUTES AND BEHAVIOR:

Assessment of attributes and behavior is based on:
• Personal conduct
• Honesty and integrity
• Attitude to work
• Dependability
• Loyalty
WEIGHTAGES:
Weightage allocated to each objective. The total of the entire objective comes to 100%.
The weightage allocated are;
• INDIVIDUAL PERFORMANCE:
Against agreed goals / objective which carries a weightage of 40%.
• INDIVIDUAL’S KNOWLEDGE AND SKILLS:

The application of skills and knowledge carries a Weightage of 35%.
• INDIVIDUAL ATTRIBUTES AND BEHAVIOUR:

The demonstration of behavior / attributes carries a Weightage of 25%.
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LEVEL AT MSSL:
There are different levels at MSSL, these are describe as:
1. STAFF: DRIVERS, ELECTRICIAN, PEON, COOK, FIELD ASSISSTANT,

WIREMAN, TESTER, TESTING ENGINEER, TECHNICIAN.
2. LEVEL 1: ASST. MANAGER, EXECUTIVE, and SERVICE ENGG. OFFICER.
3. LEVEL 2: SENIOR MANAGER / MANAGER.
4. LEVEL 3: GM / DGM.
5. LEVEL 4: V.P
6. LEVEL 5: CEO, DIRECTOR.
PERFORMANCE ASSESSMENT:
The performance of an employee is measured through series of steps. There are
Various step involved in it. The first being the SELF- ASSESSMENT FORM, the
second being the KRA REVIEW FORM, and the final being the COMPETANCY
REVIEW FORM. At different levels there is different type of form
EXPLANATION:
There are three parts for assessing the employee’s performance. PART A- self- appraisal, PART
B- KRA evaluation sheet, and PART C- Competency review form. The detail of which is
described below:
1. PART A – SELF APPRAISAL:
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This is to be filled by the employee himself. This is filled in order to have a

review of the employee’s capabilities. This form is reviewed and the employee’s strong
points according to him are viewed.
For example:
“WHAT DO YOU THINK HAS BEEN YOUR MOST IMPORTANT
CONTRIBUTION TO THE DEPARTMENT OR ORGANIZATION IN LASTR YEAR?”
This form basically shows what employees feel that he has done in the last year.
2. PART B- KRA EVALUATION SHEET:
Key result areas are such critical areas of performance, which

Though constitute few in number, would have major impact on business/ targets
of the Units / function. KRA setting is the process that converts organizational
Objectives into employee objectives. KRA setting for the next year should be done
jointly between appraiser and appraisee and keeping in mind the resources and
action that may be required for successful completion the targets, the agreed KRA
become the standard against employee’s achievement will be evaluated. KRA
setting helps in role/KRA clarity and regular review of progress made.
3. PART C- COMPETANCY REVIEW FORM:
This is also termed as “performance assessment rating form”. In this

form the performance of the employees is judged on certain parameters. The
parameters being:
“Job knowledge and skills, innovation and creativity, energy, act with integrity
and work habits, compliance to system and procedure, credibility and ethics, work output and
its quality, focus on result, team work, and self accountability.
Towards the end of the form total score is given there which is average of the score
of parameter, and accordingly ranking is given.
In the excel sheet than the following data are entered i.e. the KRA rating and
the performance evaluation sheet and accordingly the software derived the
desired ranking and accordingly the appraisal and salary correction is done.
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S No Competency Competency Descriptor
1 Job Knowledge & Skill Knows the fundamentals of his job and is able to
apply his knowledge and skill to effectively
accomplish the task
2 Quality of output Demonstrates accuracy and thoroughness
Displays commitment to excellence
Monitors own work to ensure quality
3 Focus on Result Sees obstacles as challenges and approaches them
with a positive “can-do” attitude,
Keeps functioning effectively under critical and
tight deadlines, heavy workloads,and/or other
pressures
4 Planning & Organising Establishes a systematic course of action for self
Skill determines priorities and allocates time and
resources effectively to ensure accomplishment of
a specific objective.
5 Initiative & Innovation Identifies what needs to be done and takes action
before being asked
Develops better, faster, or less expensive ways to
do things
6 Interpersonal Relates well with others. Anticipates and
Relationship resolves confrontations, disagreements, and
complaints in a win-win way.
7 Communication Skills Presents ideas and proposals in a structured
manner to effectively communicate the intended
message. Demonstrates willingness to share ideas
and encourages others to do the same.
8 Reliability/Dependability Demonstrates a consistent effort to be on the job,
carrying out instructions, and fulfilling
responsibilities
9 Credibility and Ethics Honors his own commitments
Is honest and forthright
Takes responsibility for his mistakes, Does not
blame others
10 Openness to Learning Pursues self-development
Seeks opportunities to acquire new
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RATINGS:
1. POOR:
Performance falls below the minimum requirement.
not likely to meet the performance of competent employee.
2. BELOW AVERAGE:
Does not fully meet the requirements.
Excessive supervision required.
3. AVERAGE:
Adequate performance, meets requirement.
Need push to perform better.
4. ABOVE AVERAGE:
Consistently higher performance than expected.
Challenging assignments are normally handled.
5. OUTSTANDING:
Exceptional performance which leaves nothing to be desired.
Challenging assignment consistently well handled.
PERFORMANCE RATING:
The Ratings will be defined as follows:
Rating Description For KRA For competency

achievement Assessment
1 Below Average Performance is below Does not sufficiently

expected level demonstrates skill and behavior
required for effectiveness in
current role
2 Average Minimum job Partially demonstrates skill and
requirements are met, behavior required for
needs improvement effectiveness in current role
3 Good Performance is up to the Regularly demonstrates skill
expected level and behavior required for
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effectiveness in current role

4 Very Good Consistently exceeds Consistently demonstrates skill
expected level of and behavior which surpass
performance. Strong those required for effectiveness
potential for future in current role. Strong potential
growth. for future growth.
5 Excellent Achievements are rarely Demonstrates exemplary skill
equaled. Strong potential and behavior in all situations,
for fast track growth. far above that required for
effectiveness in current role.
Strong potential for fast track
growth.
FORCED DISTRIBUTION OF PERFORMANCE RATING:
The distribution of final rating in any department/function will be on the following

pattern:
Excellent Very Good Good Average Below

Average
Not more Not more Not more Not less than Not less than
than 10% than 20% than 50% 20% 5%
PERFORMANCE RATING & PROMOTION REVIEW COMMITTEE
The review committee at Head Office will review all the ratings and
recommendations for comparative analysis to avoid major disparities within and across
departments.The committee will consist of the departmental/functional Head and Director-HR.
Performance Rating of all Managers and above and promotion recommendations Of Assistant
Manager and above will also be reviewed by the CEO
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WEIGHTAGES:
MANAGEMENT GRADES AVERAGE OF COMPANY

LEVEL KRA AND PERFORMANCE
PERFORMANCE
REVIEW
SENIOR
MANAGEMENT SM1 TO SM6 25% 75%
MIDDLE
MANAGEMENT MM1 TO MM4 40% 60%
JUNIOR
MANAGEMENT EC 1 TO EC 3 70% 30%
STAFF
S4 & S5 80% 20%
Thus according to this weightage the appraisal of an employee is decided. If he is

Senior management rank than his performance weightage is 25% and company
performance 75% is taken into account for appraising any employee in senior
Management cader. In others words the pay rise depend on both the individual
performance and the company performance.
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ANNUAL INCREMENT:
• PERIODICITY & CYCLE OF INCREMENT
o Increment cycle would be on financial year basis, i.e., April to March.
o Increments and promotions would be effective from 01st of April.
• ELIGIBILITY
o Increment would be given to all confirmed employees as of 31st March.
o Increments would also be given to employees whose last increment was effective
from 01st October 2006 or before that on pro-rata basis.
o All functional heads will give performance rating and promotion recommendation
in the performance appraisal form for employees in their department which will
be used for giving annual increments.
o Trainees and probationers will be eligible for performance review and

increment in the next review cycle only.
• QUANTUM OF INCREMENT:
o A fixed percentage increase in CTC will be given as annual

increment depending upon the performance rating as per the table
below:
Rating %age increase in CTC

Excellent 20%
Very Good 15%
Good 10%
Average 6%
Below Average No Increment
o Employees across the level and function will get the same
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percentage increase if their performance rating is same.

o Quantum of increment will be on pro-rata basis depending up on
the date of joining or date of last increment.
o In case an employee does not get any increment because of

ineligibility as mentioned above, he will get increment in the next
increment cycle for the entire period.
• SALARY CORRECTION
o Over and above performance based increment, salary correction

would also be considered depending upon the role and criticality
of the position and to bring internal equity.
However, such cases has to be strictly restricted
• PROMOTION GUIDELINES:
An employee to become eligible for promotion has to fulfill the following criteria:
o All promotions will be subject to vacancy at higher level. No promotion will be

approved if the person continues performing the same nature of job.
o Has undergone two review cycle and has been rated either “Excellent” or “Very
Good
o Has made significant contribution in his function which is not normally expected.
o Has demonstrated potential for vertical growth, high degree of ability to work
independently and shoulder higher responsibility
o For promotion from Level 2 and above, should have demonstrated high degree of
strategic thinking and business leadership capability.
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BENEFIT
Benefit to Employees
• Has an understanding of the expectations of the organization in terms of performance
• Employee’s performance and contributions are aligned with larger organizational goal.
• Employee knows how he is performing through periodic feedback
Benefit to Organization
• Ensures a realistic link between performance, recognition and reward
• Helps build a uniform focus across the organization
• Fosters leadership role in a Manager to counsel and coach his employees
• Improves communication top down.
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TYPES OF ERROR IN PMS:

TYPES OF ERRORS –
While evaluating performance of the candidate under the PMS few types of error can take place
that are as follows –
STRICTNESS ERROR:
It occurs when the appraiser artificially assigns all or certain group of employees’ low
performance ratings and consequently all or certain scores cluster at the bottom of the rating
scales.
CENTRAL TENDENCY:
It is the tendency of the appraiser to avoid using the extremes of rating scales and to cluster the
ratings around the mid point.
SPILL OVER EFFECT:
It is the tendency of the appraiser to carry in mind the past performance of the appraise in view
while making evaluation on the present Performance.
RECENCY EFFECT:
Some times the raters assign ratings on the basis of recent behavior they have seen in their appraises
forgetting about past behavior over a period. This is called recency effect.
After performance evaluation system we find source for the type of training to be given to
employees. According to the review of performance assessment we recognize the type of
training the employee need for his development. The departmental head gives the feedback
regarding the performance of the employees and accordingly the HR department reviews the
assessment and provides the type of training the employee required. Sometime the employee
himself mentions the type of training he or she needs. Training the important part for
development of any employee as it help to increase the knowledge of the employee in the area he
was lacking.
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COMPANY PROFILE
The Sumi Motherson Group is a focused, dynamic and progressive group providing customers
with value added products, services and innovative solutions.
Established in 1975, the group has a turnover of US$ 625 million (2006-2007) and has
manpower over 20000 personnel.
Motherson Sumi System Limited (MSSL), the flagship company of Sumi Motherson Group a
joint venture between Sumitumo Wiring System / Sojitz Corporation, Japan and the
Motherson Group, MSSL is pioneer in manufacturing integrated wiring Harness and is the
market leader with over 50% share of Indian automotive market.
One of the leading names in Indian auto ancillary industry, the Group has core competencies in
manufacturing of Electrical Distributions Systems (EDS) and Polymer Processing. These
competencies are supported by specialization in Engineering Design, Information Technology,
Tool Manufacturing and Metal Machining. The Group has collaborated with global technology
leaders and adopted vertical backward integration in key areas.
The Group provides totally integrated solutions starting with designing from first principles to
delivering fully engineered higher levels modules for a wide range of applications to customers
across different industries.
MSSL offers to its customers the advantages of vertical backward integration for all critical
inputs and a full service supplier offers full system solution including design from 1 st principles
to prototyping mass production and logistics MSSL. MSSL has manufacturing facilities in
Noida, Delhi, Gurgoan, Pune, Bangalore, Nasik, Chennai and Faridabad.
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WIRING HARNESS
Wiring harness is an assembly of wires bundled by tapes having terminals, housings caps, tubes
etc. to give electric connection to all parts of an automobile.
Power from battery is transmitted to various units throughout the vehicle with the aid of Wiring
Harness. For example – from switch to units like Head Light, Brake Light, Horn etc.
It functions like the blood circulation system of the Human Body.
WIRE TERMINAL HOUSING GROMMET CLAMP

S S GgGS S S
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WIRING HARNESS PROCESS FLOW
START Ckt.
Final
Assembly Insp.
Cutting &
Stripping
Sub Assembly Visual
Insp.
Parts Fitting
Joint Taping
Dispatch
To
Crimping Customer
Splicing Joint Crimping END
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Partners in the Sumi Motherson Group:
Anest Iwate Corporation (Japan)
Centre tooling mold makers Ptd Limited
Kyungshin Industrial Co. (S. Korea)
Lisa Draeximaier (Germany)
Nissho Iwai Corporation (Japan)
Schefenacker Internationai (Germany)
Sumitomo Wiring System Ltd (Japan)
Wickmann Werke GmbH (Germany)
Wilhefm Pudenz GmbH (Germany)
Woco Franz Josef Wolf and Co. (Germany)
Balda AG (Germany)
K E Protec (Japan)
Woco Industrietechnik GmbH (Germany)
Visicorp plc (UK)
Webasto AG (Germany)
Group Highlights:
• It is the largest manufacturer of Automotive Wiring Harness in India, (65% share of
Passenger Car Market).
• It is the largest manufacturer of Automotive Rear View Mirrors, (40% share of Passenger
Car Market).
• It is the largest manufacturer of automotives wires in India.
• It provides only facility of its kind to manufacture blade type-Auto motive fuses in India.
• It is the leading manufacturer of injection molding components/ plastics and rubber
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components.
• It provides state of the art tool room facility.
Group Vision:
• To be a Globally Preferred Solutions Provider.
Group Mission:
• Ensure customer delight.
• Involve employees as partners in progress.
• Set new standards in good corporate citizenship.
• Enhance shareholders value.
Values:
We are building a robust organization that will help us consistently deliver superior operating
and financial results,
• Be a lean / responsive and learning organization.
• Continuously improving to achieve world-class standards and total customer satisfaction.
• Proactively manage change.
• Maintain high standards of integrity and safety.
• Ensure a common culture and a common set of values throughout the organization.
• Recognize individual’s contributions.
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• Develop stronger leadership skills, greater teamwork and a global perspective.
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Overview of MSSL:
• The Flagship Company of Sumi Motherson Group.

• A Joint Venture with Sumitomo Wiring Systems Ltd, Japan-the third largest automotive
wiring harness manufacturer in the world.
• A limited company listed on major stock exchanges.
• Among the fastest growing auto ancillary companies in India.
• Market Leader in Automotive Wiring Harness in India, supplying to all the leading automobile
manufacturers.
• Full Service Supplier-Complete in –house design capability.
• People Focus –Highly skilled & trained manpower.
• Vertical backward integration –Well established resource base and infrastructure.
• Over 13000 Types of Wiring Harness Produced Annually.
• Over 24000 Types of Components Handled in Manufacturing.
• 20 Manufacturing Units.
• Over 20 Million Wiring Harnesses Produced Annually.
Industries Served:
• Automotive
• 4-Wheelers
• 2 & 3 Wheelers
• Modules Suppliers
• Tractors & Farm Equipment
• Material Handling & Earthmoving Equipment
• Whitegoods
• Medical Diagnostics Equipment
• Electrical & Electronics
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Organization Structure:
A flat central organization structure with Strategic business unit concept where each SBU has its
own hierarchy and growth potential.
Chairman
COO
Marketing &
Finance & Vendor Product
International Manufacturing
Accounts Development Engineering
Business
Corporate
Quality HRM IT Communication
SB SB SB SB SB SB SB SB SB SB SB
U U U U U U U U U U U
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CHAPTER-4
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QUESTIONNAIRE
ANALYSIS
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Ques1. PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE/ DISAGREE

WITH THE FOLLOWING STATEMENTS:
A) PERFORMANCE RELATED PAY IS AN ESSENTIAL PART OF PERFORMANCE

MANAGEMENT (PM).
B) THE FOCUS OF PM SHOULD BE DEVELOPMENTAL
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C) THE MAIN OBJECTIVE OF PM SHOULD BE TO MOTIVATE INDIVIDUALS.
D) PM DISTRACTS PEOPLE FROM MORE IMPORTANT CORE ACTIVITIES
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E) PM SHOULD BE DISTANCED AS FAR AS POSSIBLE FROM COMPENSATION.
F) PM IS ABOUT INDIVIDUAL AND THEIR LONG TERM DEVELOPMENT
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G) PM DOES NOT HELP TO DEVELOP CAREERS ONLY BUT ALSO IMPROVE

WORK PERFORMANCE
H) PM IS ABOUT DECIDING HOW MUCH TO PAY PEOPLE
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I) PM PROVIDES A WAY OF KEEPING A RECORD OF AN INDIVIDUAL”S

PROGRESS AND PERFORMANCE
J) PM IS ABOUT GETTING PEOPLLE TO WORK HARDER
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K) PM HAS NO VALUE FOR INDIVIDUALS, ONLY FOR ORGANISATION
L) PM MOTIVATES PEOPLE AND MAKES THEM FEEL PART OF THE

ORGANISATION
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QUES 2. PLEASE INDICATE WHICH OF THE FOLLOWING FEATURES OF PM

PROCESSES ARE INCLUDED IN YOUR ARRANGEMENTS, AND HOW EFFECTIVE
YOU BELIEVE THIS TO BE.
A. ANNUAL APPRAISAL
70
60
50
Percentage
40
30
20
10
0
Are a Feature Very Effective Partly Effective
B. BI-ANNUAL APPRAISAL
70
60
50
Percentage
40
30
20
10
0
Are a Feature Very Effective Partly Effective Not Effective
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C) 360 DEGREE FEEDBACK
40
35
30
25
Percentage
20
15
10
0
D) PEER APPRAISAL
70
60
50
Percentage
40
30
20
10
0
Are a Feature Very Effective Partly Effective
E) SELF APPRAISAL
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SYSTEM
100
90
80
70
Percentage 60
50
40
30
20
10
0
Very Effective Partly Effective
F) SUBORDINATE FEEDBACK
80
70
60
50
Percentage
40
30
20
10
0
V ery E ffective P artly E ffec tive Not Effective
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G) COMPETENCY ASSESSMENT
80
70
60
50
Percentage
40
30
20
10
0
H) OBJECTIVE SETTING AND REVIEW
60
50
40
Percentage
30
20
10
0
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I) PERFORMANCE RELATED PAY
70
60
50
Percentage
40
30
20
10
0
Are a Feature Very Effective Partly E ffective
J) COACHING & MENTORING
60
50
40
Percentage
30
20
10
0
K) CAREER MANAGEMENT
35
30
25
20
Percentage
15
10
0
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L) PERSONAL DEVELOPMENT PLANS
35
30
25
Percentage
20
15
10
0
A re a Feature Very E ffec tive Partly Effec tive Not Effec tive
QUES.3. WHAT DO YOU UNDERSTAND BY THE TERM PERFORMANCE

MANAGEMENT?
A) PERFORMANCE APPRAISAL OR REVIEW
90
80
70
60
Percentage
50
40
30
20
10
0
y es no
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B) REGULAR MEETINGS WITH BOSS TO REVIEW PROGRESS
60
50
40
Percentage
30
20
10
0
yes no
C) ASSESSMENT OF TRAINING AND DEVELOPMENTAL NEEDS
80
70
60
50
Percentage
40
30
20
10
0
yes no
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D) PERSONAL DEVELOPMENT PLANS
70
60
50
40
Percentage
30
20
10
0
y es no
E) PAY BASED ON PERFORMANCE RATINGS
60
50
40
Percentage
30
20
10
0
y es no
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QUES 4 HAVE YOU CARRIED OUT ALL THE REQUIREMENTS OF YOUR OWN
ORGANISATION’S PM ARRANGEMENTS IN THE LAST YEAR.
QUES 5 IF YES, WHAT ACTIONS WERE CARRIED OUT AS A RESULT?
A) IMPLEENTED A PROGRAMME OF SELF DEVELOPMENT.
90
80
70
60
50
Percentage
40
30
20
10
0
y es no
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SYSTEM
B) RECEIVED A PAY RISE
54
53
52
51
50
Percentage
49
48
47
46
45
44
yes no
C) IDENTIFIED CAREER DEVELOPMENT
54
53
52
51
50
Percentage
49
48
47
46
45
44
yes no
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D) AGREED IMPROVEMENTS TO BE DONE
60
50
40
Percentage
30
20
10
0
yes no
QUES 6 PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE OR DISAGREE

WITH THE FOLLOWING SATATEMENTS
A) I HAVE THE AUTHORITY TO DETERMINE MY WORK OBJECTIVES
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B) I RECEIVE A LOT OF FEEDBACK ON MY PERFORMANCE
C) THE MOST IMPORTANT THING ABOUT MY JOB IS PAY
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D) HARD WORK IS NOT NECESSARILY RECOGNIZED OR REWARDED IN MY

ORGANIZATION.
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E) MY ORGANISATION VALUES MY CONTRIBUTION
F) I FULLY UNDERSTAND MY ORGANISATIONAL GOALS AND OBJECTIVES
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G) I KNOW WHAT IS EXPECTED OF ME BY MY ORGANISATION
H) MY WORK OBJECTIVES ARE UNREALISTIC AND DIFFICULT TO ACHIEVE
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I) I HAVE THE AUTONOMY OVER THE WORK I PERFORM
J) MY ORGANISATION IS COMMITTED TO MY TRAINING AND DEVELOPMENT
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K) MY ORGANISATION COMMUNICATES WELL
L) MY WORK COLLEAGUES AND I HAVE RESPECT FOR EACH OTHER
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M) I FEEL I AM CONSTANTLY BEING COMPARED WITH MY WORK

COLLEAGUES
N) MY WORK
COLLEAGUES AND I WORK AS A TEAM
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QUES 7 PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE AR DISAGREE

WITH THE FOLLOWING STATEMENTS REGARDING PM AS IT APPLIES TO YOU
PERSONALLY IN YOUR CURRENT ROLE.
A) PM HELPS ME TO DO MY JOB BETTER
50
45
40
35
30
Percentage
25
20
15
10
5
0
Strongly Agree Slightly Agree Slightly Disagree
B) PM HELPS ME TO DEVELOP MY SKILLS & POTENTIAL
60
50
40
Percentage
30
20
10
0
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C) THE OBJECTIVE & PERFORMANCE STANDARDS AGREED WITH MY

MANAGER ARE REALISTIC
60
50
40
Percentage
30
20
10
0
D) I GET USEFUL FEEDBACK FROM MY PM REVIEW
60
50
40
Percentage
30
20
10
0
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E) ASSESSMENT OF MY PERFORMANCE STANDARDS ARE CONSISTENT, FAIR

AND UNBIASED
90
80
70
60
Percentage
50
40
30
20
10
0
Strongly A gree Slightly Disagree
F) I FEEL MOTIVATED AFTER A REVIEW MEETING
50
45
40
35
30
Percentage
25
20
15
10
5
0
Strongly Agree Slightly Agree S lightly Disagree Strongly Disagree
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SYSTEM
G) I DO NOT UNDERSTAND HOW MY BOSS DECIDES MY RATING
40
35
30
25
Percentage
20
15
10
0
Strongly Agree Slightly Agree Slightly Disagree Strongly Disagree
H) BOSSES GIVE THE BEST RATING TO PEOPLE THEY LIKE
60
50
40
Percentage
30
20
10
0
I) I FULLY UNDERSTAND HOW MY OBJECTIVES & STANDARDS RELATE TO

THE BUSINESS NEEDS
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SYSTEM
60
50
40
Percentage
30
20
10
0
Strongly Agree Slightly Agree
J) I HAVE RECEIVED ADEQUATE TRAINING IN PM
40
35
30
25
Percentage
20
15
10
0
K) TIME SPENT ON PM IS WORTH WHILE
80
70
60
50
Percentage
40
30
20
10
0
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CHAPTER-5
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FINDINGS
From the various graphs and diagrams we are able to judge a few things that
employees feel about the current performance appraisal process. These findings are
based on the total research process and the analysis. These findings will help to
make recommendations that could be implemented to improve and increase
efficiency of the system.
According to employees:
• Pay is an important part of performance management.
• Performance management slightly distracts people from more important core

activities.
• They feel that performance management should not be distanced as far as

possible from compensation
• Performance management helps improve performance also along with

developing careers.
• People strongly agree that performance management has value for

individuals along with the organization.
• Performance management motivates people.
• They think that annual appraisals are more effective than bi-annual
appraisals.
• Self-appraisal plays a very important role.
• The first and foremost step of performance management system should be

objective setting.
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• Coaching and mentoring should be introduced in a system.
• Performance management according to them includes:
Performance appraisal
Assessment of training and developmental needs
Personal development plans
Pay based on performance ratings.
• Around 90% of the employees surveyed carried out the requirements related
to performance management and as a result received a pay rise, agreed
improvements to be done.
• Employees at MSSL have the authority to determine their work objectives.
• Employees disagree that the most important thing about their job is the pay.
• They agree that hard work is recognized or rewarded in their organization.
• Employees slightly disagree that the organization is committed to their

training and development.
• Employees agree that performance management develops their skills and

potential.
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CHAPTER-6
84
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LIMITATIONS OF THE STUDY
1. The scope of the project is limited to the Motherson Sumi System Ltd.
2. The time for the project is not sufficient to undergo all the procedures.
3. Employees may face time constraint while giving information.
4. Budget might be a constraint
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CONCLUSION
Performance management system should be developed in order to improve th over all

performance of employees. It should include the following steps:
a) Performance planning
b) Performance monitoring or review
c) Performance rating
d) Performance rewarding
e) Performance developing
A) PERFORMANCE PLANNING
It enables the employees to develop role clarity and provides a sense of direction. It also provides
a norm or standard against which employees can review their performance.
Objective:
I. To set clear performance goals for each employee.

II. To ensure commitment to perform
III. To enable objective performance appraisal
B) PERFORMANCE MONITORING / REVIEW
Monitoring well means consistently measuring performance and providing ongoing feedback to
employees and work groups on their progress toward reaching their goals. The performance
review should be conducted quarterly by the immediate superior to encourage performance, for
raising the resources or for any course corrections in which the appraisee will offer his
assessment of accomplishment of the activities. He would analyze his performance by
identifying the Facilitating and Inhibiting factors.
• The Facilitating factors are those factors, which have helped in accomplishing the
objective.
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SYSTEM
• The Inhibiting factors are those factors, which have prevented accomplishing the
objectives.
This will include self-appraisal and performance appraisal.
Objective:
I. To assess accomplishment of the planned goals/ targets/ activities.

II. To provide a rational basis for rewards
III. To identify training and development needs
C) PERFORMANCE RATING
Rating means evaluating employee or group performance against the elements and standards in
an employee’s performance plan and assigning a summary rating of record.
Objective:
I. Final assessment in the form of ratings or assignments of points

becomes very useful for development as well as administrative
decisions
II. Once the ratings are available, it is easy to identify individuals who can
perform certain functions well or those who have demonstrated certain
managerial and human capabilities
D) PERFORMANCE REWARDING
Rewarding means recognizing employees, individually and as members of groups, for their
performance and acknowledging their contributions to the organization’s mission. Rewards
should be in monetary as well as non-monetary terms. Rewards having recognition / prestige but
having no financial value should be envisaged for those types of exemplary performance which
may not have a bearing on the Performance appraisal ratings directly. This may be in the form of
appreciation (in writing) by superior, or head of the division.
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Objective:
I. To provide motivation for sustaining / improving performance.

II. To ensure that annual increments are strictly on the basis of merit i.e.
performance against targets.
PERFORMANCE DEVELOPMENT
Developing in this instance means increasing the capacity to perform through training, giving
assignments that introduce new skills or higher levels of responsibility, improving work
processes, or other methods. Giving them appropriate training sessions should develop those
employees who have failed to give desirable results. Providing employees with training and
developmental opportunities encourages good performance, strengthens job-related skills and
competencies, and helps employees keep up with changes in the workplace, such as the
introduction of new technology. Performance development plans should be made in order to
improve employees overall performance.
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CHAPTER-7
84
SYSTEM
BIBLIOGRAPHY
SOURSES are:
Websites
www.google.com
www.citehr.com
www.ask.com
www.articles911.com
Magazines
Human capital
icfai journals
Books:
which are full of information on performance appraisal System and its

tool are also secondary data for the research.
84

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AN IN-DEPTH STUDY OF PERFORMANCE MANAGEMENT

UNDER THE GUIDANCE OF

INSTITUTE OF TECHNOLOGY AND SCIENCE,

This is to certify that the dissertation titled “AN IN DEPTH STUDY OF

Date: Signature of the mentor

I hereby declare that the project titled AN IN DEPTH STUDY OF PERFORMANCE

5.2 Significance of the Study 9

5.3 Review of existing literature 10

7) CHAPTER 3: DESCRIPTIVE WORK

CHAPTER 5: FINDINGS & RECOMMENDATIONS 73

CHAPTER 6: CONCLUSION & LIMITATIONS 76

REVIEW OF EXISTING LITRATURE

. Sound PMS of an organization is directly related to the satisfaction of the employees.

• TO STUDY THE RELEVENCE OF “PERFORMANCE MANAGEMENT SYSTEM”

Sources of Data Collection

KEY FACTORS AFFECTING PERFORMANCE

• Physiological (food, shelter)

Feedback: Performance Management System cannot be effective without feedback. As a basic

PERFORMANCE MANAGEMENT SYSTEM

WHY PERFORMANCE MANAGEMENT:

The increasing use of PERFORMANCE MANAGEMENT by employer reflects several things.

SET INDIVIDUAL PERFORMANCE:

OBJECTIVE LINKED WITH ORGANIZATIONAL GOAL.

PERFORM AGAINST THE SET OBJECTIVE AND IDENTIFY ANY DEVELOPMENT

CONTINOUSLY MONITER PERFORMANCE AND PROVIDE ONGOING FEEDBACK.

DELIVER AGAINST THE SET OBJECTIVE AND FORMALLY EVALUATE THE

FOCUS OF THE PROBLEM

The study focuses on understanding and effectiveness of Performance Management System in

PMS process consists of four steps:

2. MONITORING AND FEEDBACK:

3. REWARD AND RECOGNITION:

4LEARNING AND DEVELOPMENT:

PMS – YEARLY CYCLE:

MANAGERS ROLE IN PMS:

EMPLOYEES ROLE IN PMS:

EMPLOYEES APPRAISAL PROCESS:

1. ASSESSMENT OF PERFORMANCE AGAINST GOAL:

2. ASSESSMENT OF KNOWLEDGE AND SKILLS:

• Professional and technical skills.

3. ASSESSMENT OF ATTRIBUTES AND BEHAVIOR:

• INDIVIDUAL’S KNOWLEDGE AND SKILLS:

• INDIVIDUAL ATTRIBUTES AND BEHAVIOUR:

There are different levels at MSSL, these are describe as:

1. STAFF: DRIVERS, ELECTRICIAN, PEON, COOK, FIELD ASSISSTANT,

This is to be filled by the employee himself. This is filled in order to have a

2. PART B- KRA EVALUATION SHEET:

Key result areas are such critical areas of performance, which

3. PART C- COMPETANCY REVIEW FORM:

This is also termed as “performance assessment rating form”. In this

S No Competency Competency Descriptor

Rating Description For KRA For competency

1 Below Average Performance is below Does not sufficiently

effectiveness in current role

The distribution of final rating in any department/function will be on the following

Excellent Very Good Good Average Below

PERFORMANCE RATING & PROMOTION REVIEW COMMITTEE

MANAGEMENT GRADES AVERAGE OF COMPANY

Thus according to this weightage the appraisal of an employee is decided. If he is

o Increment cycle would be on financial year basis, i.e., April to March.

o Increments and promotions would be effective from 01st of April.

o Increment would be given to all confirmed employees as of 31st March.

o Trainees and probationers will be eligible for performance review and