A Project

On
“PERFORMANCE APPRAISAL”
Of
“MOTHER CARE”

(Submitted in Partial Fulfillment of the Requirements of Bachelor of

Business Administration Program under Utkal University)

By

VASUDHA AGRAWAL

56317UTO8089

Faculty Guide
Corporate Guide

Prof. SIPRA KARMAKAR Mr.

RAMESH KUMAR PANDA
 Declaration

I VASUDHA AGRAWAL a student of ASIAN SCHOOL OF BUSINESS

MANAGEMENT do here by declare that the project report “PERFORMANCE
APPRAISAL IN MOTHER CARE, KANIHA” is being submitted by me and is the
product of my own knowledge and effort. No part of this report has been
submitted to anyone at time before. It is presented for the partial fulfillment
of BBA 2008-11.

It is for the academic purpose and it has not been published or

presented anywhere else for the award of such degree.

Date:- VASUDHA
AGRAWAL
 ACKNOWLEDGEMENT

I acknowledge my indebtness to my corporate guide Mr. RAMESH KUMAR PANDA for

giving me the opputunity to work in their esteemed organization, and helping me to
complete the project in a successful manner.

I am obliged to my faculty guide Prof. SIPRA KARMAKAR for providing time, effort
and most of all her patience in helping me for preparing the project report. I am
also thankful to all the faculty members of our college for their kind cooperation
with me to write this report.

I feel immense pleasure to express my deep sense of gratitude to Mr. RAMESH

KUMAR PANDA as an external guide whose expert guidance and deep knowledge
help me to complete my project in this short span of time. I am also thankful to all
the staff members of MOTHER CARE, KANIHA who extended their hands and
cooperation directly or indirectly for successful completion of the training
programme.

Last but not the least I am also thankful to my family members and friends for
providing me moral support to do this project successfully.

Date:- VASUDHA
AGRAWAL
 Chapterization
Chapter-1
Introduction

1.1 Meaning of the study

1.2 Objectives of the study
1.3 Significance of the study
1.4 Methodology
1.5 Sources of data collection
1.6 Limitation of the study

Chapter-2
Company Profile

2.1 Brief history of the company

2.2 Vision, Mission and objective of the company
2.3 Organization structure & style of work of company
2.4 Review of Literature

Chapter- 3
Research Methodology

3.1 Methods of data collection

3.2 Tool or technique used

Chapter-4
Data analysis & interpretation

5.1 Data analysis

5.2 Data interpretation

Chapter-5
Conclusion

6.1 Findings
6.2 Suggestions
6.3 Conclusion

• References
• Appendix
CHAPTER 1
Meaning of the Study

PERFORMANCE:

Performance may be defined as the accomplishment of a given task measured

against present standards of accuracy, completeness, cost and speed and to act in
accord with the requirements or obligations of the organization.
In other words it is the act of carrying out various activities by the employees of
an organization for the purpose of achieving the goals of the organization.

APPRAISAL:
It is the evaluation of worth, quality or merit of the employees of an organization
over a period.

PERFORMANCE APPRAISAL:

Performance appraisal means systematic evaluation of the

personality and performance of each employee by his superiors or
some other persons who are familiar with their performance. In
other words, performance appraisal is a formal, structured system
of measuring and evaluating an employee’s job related behaviors
and outcomes to discover how the employee is presently
performing and how he can perform effectively in the future. it is
the development process for the appraisee where appraiser plays
a very important role to enhance the capabilities of the appraise
to achieve the expected levels of job performance for the whole
unit/department/office/organization. It can focus every person’s
attention on the company’s mission, vision, and values.

Performance appraisal can be:

1. Systematic:
The appraisal is systematic when it evaluates all performances in the same
manner, utilizing the same approaches so that appraisal of different persons
is comparable.

2. Objective:
It attempts at accurate measurement of performance by trying to eliminate
human biases and prejudices.
Objectives of the study:-
There are number of objectives behind this study which have shaped the need of
this project through all stages off data collection, analysis and presentation. The
present study has been undertaken within the following specific objectives:-

• To know about the organizational profile.

 • To know about the Performance Appraisal Management Process of Mother
Care.

• To evaluate its Performance Appraisal System.

• To give implemental suggestions those might be useful for the policy

makers.

Significance of the Study:-

• Performance Appraisal of Mother Care is extremely vital. The efficient

Performance Appraisal is required. So, it is found to be the ideal topic to
study, analyze and search for a better Performance Appraisal management
technique, which will help Mother Care to perform its functions in a more
efficient manner.

• The data and information has been collected from the Mother Care Franchise
Store, Kaniha as well as from the official website of Mother Care at
www.mothercare.com

Research Methodology:-

• The study is mainly based only on secondary data.

• The secondary data sources include the office manuals, internet website and
class books.

• Data collections are subject to qualitative and quantitative in nature.

Sources of Data Collection:-

• Annual Report of Mother Care

• Study Materials of Mother Care

• Internet Websites:

1. www.mothercare.com

Limitations of the study:-

• The geographical area under study was limited to Kaniha which led to the
study`s focus to be confined only to Kaniha region.

• There is no scope for interviewing area managers and officers at the zonal
and head office level which sometimes was felt essential while undertaking
the study.
CHAPTER 2
Company Profile

Type Public (LSE: MTC)

Industry Retail

Founded 1961

Headquarter Cherry Tree Road, Watford,

s Hertfordshire

Ian Peacock (Chairman of the board),

Key people
Ben Gordon (CEO)

Revenue £723.6 million (2009)

Operating
£37.2 million (2009)
income

Profit £30.3 million (2009)

Employees 7,715 (2009)

Subsidiaries Early Learning Centre

Website www.mothercare.com

Mothercare plc (LSE: MTC) is a British retailer which specialises in products for expectant
mothers and in general merchandise for children up to 8 years old. It is listed on the London
Stock Exchange and is a constituent of the FTSE 250 Index.
History

The Company was founded by the entrepreneur Selim Zilkha in 1961.It was first listed on the
London Stock Exchange in 1972.

In 1982 it merged with Habitat to form Habitat Mothercare plc and in 1986 Habitat Mothercare
plc merged with British Home Stores to form Storehouse plc. It bought Children's World from
Boots in 1996, and rebranded all of their superstores Mothercare World stores. In 2000 the Bhs
stores were sold to Philip Green[3] and Storehouse reverted to the Mothercare brand.

Mothercare agreed to buy the Early Learning Centre (ELC) in April 2007 for £85 million.

In 2007 Mothercare launched Gurgle, a pregnancy and parenting social networking website. In
November 2009 Mothercare acquired the 50% of Gurgle that it did not already own.

In July 2010, Mothercare bought the trademark and brand of privately owned rival Blooming
Marvellous

Operations

The Company operates online, on the high street and out of town, and in November 2009 had
over 1,060 stores worldwide of which 389 were in the UK and 671 were abroad in 38 other
countries.

Our aim is to build the Mothercare group into the world's leading specialist retailer of
parenting and children's products. The acquisition of the Early Learning Centre in June 2007
was a key step in the development of this proposition. The group's aspirations will be achieved
through:

• developing innovative and exciting own-brand products under both the

Mothercare and Early Learning Centre brands;
• the best in class expertise and specialism of our staff; and
• the successful delivery of the growth strategy set out below.

growth strategy

The growth strategy of the Mothercare group is focused on four key levers that will deliver the
potential of the Mothercare and Early Learning Centre brands.

• maximising the synergies from the integration of the Early Learning Centre;
• restructuring the combined Mothercare and Early Learning Centre property
portfolio;
• continuing the rapid growth of Direct; and
• driving the international reach of the Mothercare and Early Learning Centre
brands.

CHAPTER 3
Methods of Data Collection

Data-collection techniques allow us to systematically collect information about our objects of

study (people, objects, phenomena) and about the settings in which they occur.

In the collection of data we have to be systematic. If data are collected haphazardly, it will be
difficult to answer our research questions in a conclusive way.

Example:During a nutrition survey three different weighing scales were used in three villages.
The researchers did not record which scales were used in which village. After completion of the
survey it was discovered that the scales were not standardised and indicated different weights
when weighing the same child. It was therefore impossible to conclude in which village
malnutrition was most prevalent.

Various data collection techniques can be used such as:

• Using available information

• Observing
• Interviewing (face-to-face)
• Administering written questionnaires
• Focus group discussions
• Projective techniques, mapping, scaling

Method of data collection used

Using available information

Usually there is a large amount of data that has already been collected by others, although it
may not necessarily have been analysed or published. Locating these sources and retrieving the
information is a good starting point in any data collection effort.

For example, analysis of the information routinely collected by health facilities can be very
useful for identifying problems in certain interventions or in flows of drug supply, or for
identifying increases in the incidence of certain diseases.
Analysis of health information system data, census data, unpublished reports and publications in
archives and libraries or in offices at the various levels of health and health-related services,
may be a study in itself. Usually, however, it forms part of a study in which other data collection
techniques are also used.

The use of key informants is another important technique to gain access to available
information. Key informants could be knowledgeable community leaders or health staff at
various levels and one or two informative members of the target group (e.g., adolescents on
their sexual behaviour). They can be involved in various stages of the research, from the
statement of the problem to analysis of the data and development of recommendations. Other
sources of available data are newspapers and published case histories, e.g., patients suffering
from serious diseases, or their relatives, telling their experiences and how they cope.

Note:In order to retrieve the data from available sources, the researcher will have to design an
instrument such as a checklist or compilation sheet. In designing such instruments, it is
important to inspect the layout of the source documents from which the data is to be extracted.
For health information system (HIS) data, for example, the data compilation sheet should be
designed in such a way that the items of data can be transferred in the order in which the items
appear in the source document. This will save time and reduce error.

The advantage of using existing data is that collection is inexpensive. However, it is sometimes
difficult to gain access to the records or reports required, and the data may not always be
complete and precise enough, or too disorganised.

Advantages and disadvantages of data collection method used

Advantages:-

• Is inexpensive because data is already there.

• Permits examination of trends over the past.

Disadvantages:-

• Data is not always easily accessible.

• Ethical issues concerning confidentiality may rise.
• Information may be imprecise or incomplete.

BIAS IN INFORMATION COLLECTION

BIAS in information collection is a distortion in the collected data so that it does not represent
reality.

There are so many bias in collection of data but the bias which can occur in the research done
here with the help of specific data collection method is described below:-
Information bias:

Sometimes the information itself has weaknesses. Medical records may have many blanks or be
unreadable. This tells something about the quality of the data and has to be recorded. For
example, in a TB defaulter study the percentage of defaulters with an incomplete or missing
address should be calculated.

Another common information bias is due to gaps in people’s memory; this is called memory or
recall bias. A mother may not remember all details of her child’s last diarrhoea episode and of
the treatment she gave two or three months afterwards. For such common diseases it is
advisable to limit the period of recall, asking, for example, ‘Has your child had diarrhoea over
the past two weeks?’

Note:

All these potential biases will threaten the validity and reliability of your study. By being aware
of them it is possible, to a certain extent, to prevent them. If the researcher does not fully
succeed, it is important to report honestly in what ways the data may be biased.

Data collection techniques and tools used:

• Checklists
• Data compilation forms.
CHAPTER 4
INTRODUCTION TO PERFORMANCE
APPRAISAL

PERFORMANCE:

Performance may be defined as the accomplishment of a

given task measured against present standards of
accuracy, completeness, cost and speed and to act in
accord with the requirements or obligations of the
organization.

In other words it is the act of carrying out various activities by the

employees of an organization for the purpose of achieving the goals of
the organization.

APPRAISAL:

It is the evaluation of worth, quality or merit of the employees of an

organization over a period.

PERFORMANCE APPRAISAL:

Performance appraisal means systematic evaluation of

the personality and performance of each employee by his
superiors or some other persons who are familiar with their
performance. In other words, performance appraisal is a formal,
structured system of measuring and evaluating an employee’s job
related behaviors and outcomes to discover how the employee is
presently performing and how he can perform effectively in the future.
it is the development process for the appraisee where appraiser plays
a very important role to enhance the capabilities of the appraise to
achieve the expected levels of job performance for the whole
unit/department/office/organization. It can focus every person’s
attention on the company’s mission, vision, and values.
Performance appraisal can be:
1. Systematic:
The appraisal is systematic when it evaluates all performances in
the same manner, utilizing the same approaches so that appraisal of
different persons is comparable.

2. Objective:
It attempts at accurate measurement of performance by trying to
eliminate human biases and prejudices.

REASONS FOR THE EXISTENCE OF PERFORMANCE

APPRAISAL SYSTEM IN AN ORGANIZATION:

The important reasons for benefits which justify the existence of a

system of performance appraisal in an enterprise are as under:

• A good system of performance appraisal helps the supervisor to

evaluate the performance of his employees systematically and
periodically.
• It also helps him to assign that work to individuals for which
they are best suited.
• Performance rating helps in guiding and correcting of
employees.
• The supervisor may use the results of rating for the purpose of
constructively guiding employees in the efficient performance
of work.
• The ability of the staff can be recognized and can be
adequately rewarded by giving them special increments.
 • Rating can be used to evaluate the effectiveness of training
programmers.
• Weaknesses of employees are revealed by merit rating and the
training programmers can be modified accordingly.
• Performance appraisal provides an incentive to the employees
to better their performance in a bid to improve their rating
over others.
• Systematic appraisal will prevent grievances and develop
confidence amongst the employees if they are convinced of the
impartial basis of evaluation.
• The records of merit rating are available in permanent form to
protect the management against subsequent charges of
discrimination which might be leveled by the trade union
leaders.

WHEN PERFORMANCE APPRAISAL IS DONE?

Appraisal should be a continuing and ongoing process drawn

together by formal meetings at regular intervals that, usually, take
place every six or twelve months.

WHO DOES THE APPRAISAL?

Generally the appraiser is the immediate superior of the man to be

appraised. He is most familiar with the employee’s work and is in
contact with him and so he is considered to be able to appraise him
well. The method which is used to do the appraisal decides who
should be the appraiser.

WHO IS THE APPRAISEE?

All the employees of the organization are apprised.

Appraise should:
• Have a clear picture of what is expected of them.
• Be able to discuss priorities.
• Gain a platform to remove confusion when overload occurs.
 • Receive feedback on their performance.
• Be heard and respected.
• Be offered constructive guidance on attaining agreed goals.
• Receive help in constructing personal development plans and
Targets.
• Take ownership of their performance.

PROCESS:
 1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting
up of the standards which will be used to as the base to compare the
actual performance of the employees. This step requires setting the
criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the
organizational goals and objectives. The standards set should be
clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should
be taken to describe the standards.

2. COMMUNICATING STANDARDS

Once set, it is the responsibility of the management to communicate

the standards to all the employees of the organization. The employees
should be informed and the standards should be clearly explained to
the. This will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the
relevant feedback from the employees or the evaluators.

3. MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is

measuring the actual performance of the employees that is the work
done by the employees during the specified period of time. It is a
continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal
bias does not affect the outcome of the process and providing
assistance rather than interfering in an employees work.

4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance
of the employees from the standards set. The result can show the
actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting
a negative deviation in the organizational performance. It includes
recalling, evaluating and analysis of data related to the employees’
performance.
5. DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the

employees on one-to-one basis. The focus of this discussion is on
communication and listening. The results, the problems and the
possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive
attitude as this can have an effect on the employees’ future
performance. The purpose of the meeting should be to solve the
problems faced and motivate the employees to perform better.

6. DECISION MAKING

The last step of the process is to take decisions which can be taken
either to improve the performance of the employees, take the required
corrective actions, or the related HR decisions like rewards,
promotions, demotions, transfers etc.

APPROACHES TO PERFORMANCE APPRAISAL:

TRADITIONAL APPROACH

Traditionally, performance appraisal has been used as just a method

for determining and justifying the salaries of the employees. Than it
began to be used a tool for determining rewards (a rise in the pay)
and punishments (a cut in the pay) for the past performance of the
employees.
This approach was a past oriented approach which focused only on
the past performance of the employees i.e. during a past specified
period of time. This approach did not consider the developmental
aspects of the employee performance i.e. his training and development
needs or career developmental possibilities. The primary concern of
the traditional approach is to judge the performance of the
organization as a whole by the past performances of its employees.
Therefore, this approach is also called as the overall approach. In
1950’s the performance appraisal was recognized as a complete
system in itself and the Modern Approach to performance appraisal
was developed.
 MODERN APPROACH
The modern approach to performance development has made the
performance appraisal process more formal and structured. Now, the
performance appraisal is taken as a tool to identify better performing
employees from others, employees’ training needs, career development
paths, rewards and bonuses and their promotions to the next levels.
Appraisals have become a continuous and periodic activity in the
organizations. The results of performance appraisals are used to take
various other HR decisions like promotions, demotions, transfers,
training and development, reward outcomes. The modern approach to
performance appraisals includes a feedback process that helps to
strengthen the relationships between superiors and subordinates and
improve communication throughout the organization. This recognizes
employees as individuals and focuses on their development.

TRADITIONAL METHODS:

• Unstructured appraisal
• Employee Ranking
• Forced Distribution
• Graphic Rating Scales
• Critical Incident Method
• Check-list
• Field Review

Unstructured appraisal:

Under this, the appraiser writes down his impression about the
person being apprised in an unstructured way. However, in some
organizations, comments are required to be grouped under specific
headings such as quality of job performance, reasons for specific
job behavior, personality traits, and development needs. This
system is highly subjective and has gat its merit in its simplicity
and is still in use especially in the small firms.

Employee Ranking:

Ranking is a simple process of placing employees in a

rank according to their job performance. It permits
comparison of all employees in any single rating group
regardless of the type of work.

All workers are judged on the same factors and they are rated on the
overall basis with reference to their job performance instead of
individual assessment of traits. In this way, the best is placed first in
the rank and the poorest occupies the last rank. The difficulty of this
system is that the rater is asked to rank employees on certain
desirable traits. The other difficult with this method is that it does not
indicate the degree of difference between the first man and the second
man, and so on.

Forced Distribution:

Some appraisers suffer from a constant error,i.e, they either rate all
workers as excellent, average or poor. They fail to evaluate the poor,
average or excellent employees clearly. This system is devised to force
the appraiser to fit the employees being apprised into predetermined
ranges of scale. This system is based on the presumption that
employees can be given equal ratings. This system is based on the
presumption that employees can be divided into five point’s scale of
outstanding, above average, average, below average and poor.
This system is easy to understand and administer. the objective of
this technique is to spread out ratings in the form of a normal
distribution which is open to criticism.

Graphic Rating Scales:

The term used to define the oldest and most widely used performance
appraisal method. The evaluators are given a graph and asked to rate
the employees on each of the characteristics. The number of
characteristics can vary from one to one hundred. The rating can be a
matrix of boxes for the evaluator to check off or a bar graph where
the evaluator checked off a location relative to the evaluators
rating.The selection of factors to be measured on the graphic rating
scale is an important point under this system.

These are of two types:

i) Characteristics, such as initiative and dependability.
ii) Contributions such as quantity and quality of work.
Critical Incident Method:

The term used to describe a method of performance

appraisal that made lists of statements of very effective
and very ineffective behavior for employees. The lists
have been combined into categories, which vary with the
job. Once the categories had been developed and
statements of effective and ineffective behavior had been
provided, the evaluator prepared a log for each
employee. During the evaluation period, the evaluator
recorded examples of critical behaviors in each of the
categories, and the log has been use to evaluate the
employee at the end of the evaluation period.

Field Review:

Under this method the supervisors are interviewed by an expert from

the personnel department. The expert questions the supervisors to
obtain all the pertinent information on each employee and takes notes.
Thus there is no rating form with factors or degree, but overall
ratings are obtained. The workers are usually classified into three
categories as outstanding, satisfactory and unsatisfactory.
The interviewer questions the supervisor about the requirements of
each job in his unit and about the performance of each man in his job.
The supervisor is required to give his opinion about the progress of
his subordinates, the level of the performance of each subordinate, his
weakness, good points, outstanding ability, promotability, and the
possible plans of action in cases requiring further consideration.
This method relieves the supervisors of the tedious writing work of
filling in appraisal forms. It also ensures a greater likelihood that the
supervisors will give adequate attention to the appraisals because the
personnel department largely controls the process.

MODERN METHODS
Management by Objectives:

It was Peter Ducker who proposed goal setting approach

to performance appraisal which he called’ Management
by Objectives and Self Control’.

The management by objectives performance appraisal

method has the supervisor and employee get together to
set objectives in quantifiable terms. The appraisal
method has worked to eliminate communication problems
by the establishment of regular meetings, emphasizing
results, and by being an ongoing process where new
objectives have been established and old objectives had
been modified as necessary in light of changed
conditions.

MBO process:
-set organizational goals.
-define performance target.
-performance review
-feed back.

Behavioral Anchored Rating Scales (BARS):

It is designed to identify the critical areas of

performance for a job, and to describe the more effective
and less effective job behavior for getting results.
Performance is evaluated by asking the rater to record
specific observable job behaviors of an employee and
then to compare these observations with a “behaviorally
anchored rating scale”.

This rating method combines elements of the Traditional

Rating Scales and Critical Incident Method
 The term used to describe a performance rating that
focused on specific behaviors or sets as indicators of
effective or ineffective performance, rather than on
broadly stated adjectives such as "average, above
average, or below average". Other variations were:

• Behavioral observation scales

• Behavioral expectations scales
• Numerically anchored rating scales

360 degree performance appraisal:

360 degree feedback is the most comprehensive and

costly type of appraisal. It includes self ratings, peer
review, and upward assessments; feedback is sought
from everyone. It gives people a chance to know how
they are seen by others; to see their skills and style; and
may improve communications between people.

It is the most comprehensive appraisal where the

feedback about the employees’ performance comes
from all the sources that come in contact with the
employee on his job.

360 degree feedback helps by bringing out every aspect

of an employee's life. Cooperation with people outside
their department, helpfulness towards customers and
vendors, etc. may not be rewarded by other types of
appraisal. This system also helps those who have
conflicts with their manager.

360 degree feedback generally has high employee

involvement and credibility; may have the strongest
impact on behavior and performance; and may greatly
increase communication and shared goals. It provides
people with a good all-around perspective.
 360 degree feedback may be given directly to the
employees, who have the option of discussing them with
their managers; or it may be given to the managers for
use in a feedback meeting. Whichever method is chosen,
training for the managers and rates is necessary.

Its Four integral components -

a) Self Appraisal
b) Superior’s Appraisal
c) Subordinate’s Appraisal
d) Peer Appraisal

PURPOSE OF PERFORMANCE APPRAISAL:

Performance appraisal serves over a dozen different

organizational purposes:

•Providing feedback to employees about their performance

•Facilitating Promotion Decisions
•Facilitating Layoff or Downsizing Decisions
•Encouraging Performance Improvement
•Motivating Superior Performance
•Setting and Measuring Goals
•Counseling Poor Performers
•Determining Compensation Changes
•Encouraging Coaching and Mentoring
•Supporting Manpower Planning
•Determining Individual Training and Development Needs
•Determining Organizational Training and Development
Needs
BENEFITS OF PERFORMANCE APPRAISAL :

For the individual, performance appraisal is an

opportunity to: -

• understand your role and achieve clarity in terms of what is

expected of you.
 • gain feedback of their performance, and recognize good
performance.
• identify your strengths and how they could be best utilized
• plan your development with the support of the organization
• improve your working relationships
• receive support to overcome any difficulties

For the organization, performance appraisal is an opportunity to: -

• communicate organizational plans and objectives
• agree key targets for employees
• support improvements in performance
• develop potential
• help employees to overcome difficulties
• receive feedback which may help to improve organizational
performance

Performance Appraisal in mother

care
[Performance Management System]
Philosophy of Performance Management System

To build a culture of performance by aligning individual and organizational

objectives and encouraging open communication and continuous feedback.

Objectives
• To accomplish the overall organizational vision and mission
by linking individual performance to company objectives
• To cascade company’s strategic goals to individual level
• To promote professional excellence
• To encourage two-way communication between the
executive and the reporting officer and bring about
transparency in the performance assessment process
• To translate future skill requirements of the organization
into individual development plans
• To identify high performers and recognize them through
rewards and incentives, and
PMS Cycle(PACE)

PACE C
PMS Calender
PMS Process
The PMS process is broadly divided into the following stages
• Performance Planning
• Mid Year Review
• Annual Assessment
• Normalization
• Feedback, Coaching and Counseling

Performance Planning
Performance Planning is the process of:
• Defining expectations i.e. the work to be done, the
results/targets to be achieved and skills/competencies
needed to achieve these objectives
• Setting “Measures” and “Targets”, determining priorities
and weight ages of results to be achieved
• Identifying and allocating appropriate resources (such as
manpower, tools, training, budget etc.) to enable the
executive to achieve the targets
• While defining work objectives and measures, it is necessary
to ensure that:
 Goals/ Targets/ Objectives are SMART (Specific, Measurable,
Agreed, Realistic and Time bound)

• Agreement on mutually agreeable and achievable

performance targets is arrived at after sufficient discussion
between reporting officer and executive has taken place.

Mid Year Review

Performance management is not an event but an ongoing process. Mid year
reviews help in the following ways:
• Updating the status of targets i.e. progress review
• Identifying areas for “mid-course” correction
• Revisiting KPAs and goals, if necessary
• Assessing resource and skill requirements affecting the
individual’s performance
• Discussion and feedback on functional competencies,
managerial competencies,
• potential competencies and core values actualization
• Providing early warnings of non-performance, i.e. avoiding
year end surprises
Annual Assessment
The objectives of Annual Assessment are to:
Discuss and arrive at an assessment of performance with respect to agreed targets
Assess the competencies, potential and core values actualization by the individual
Normalization
The objectives of the Normalization System in PMS are to:
• Ensure parity and integrity by minimizing variation in rating
by different reporting officers across various departments
and locations
• Enhance objectivity and transparency in the appraisal
system
• To view individual performance from the perspective of
organizational achievement.
Feedback, Coaching and Counseling
To enhance development orientation, reinforce good performance on time and
provide guidance to individuals across the organization; feedback, coaching and
counseling are provided.
Communicating the final performance results of the executive and providing
Developmental feedback are critical to this process.
The PMS Form
The PMS form is divided into seven parts
1. Performance Planning and Assessment (Part -I)
a) Dashboard of Key Performance Areas (KPAs) (Part IA)
b) Details of KPA (Part IA)
c) Mid Year Review (Part IB)
d) Revised KPAs (in case of change during mid-year review) (Part IC)
2. Competency Assessment (Part-II)
a) Functional/ Technical Competencies (Part IIA)
b) Managerial Competencies (Part IIB)
3. Core Values (Part-III)
4. Potential Competencies (Part-IV)
5. Special Achievements (Part V)
6. Total Marks (Part VI)
7. Individual Training and Development Plan (Part-VII)
Submission of PMS forms after Mid-year Review
After completion of Mid-year Review, the completed PMS forms shall be
submitted to the concerned HR by the reporting officer within the deadlines set in
the calendar.

Normalization Process
Feedback & Communication
 Feedback
Executive promoted during the year:

a. Executives promoted during the assessment year would be issued new

PMS forms, if promotion is accompanied by change in role-band or
change of job responsibility or transfer.

b. If an executive is promoted within the same role band and continues to

remain in the same department under the same reporting officer with
substantially the same responsibilities and KPAs, then the existing PMS
format will continue to be used. At the end of the year, he is assessed on

Performan
the same KPAs and the total score for normalisation purpose is also
derived from it.

e
The executive will be normalised in the cluster applicable after promotion.
If some responsibilities are added as a result of promotion, the same can
be incorporated in the PMS format during

Manageme
Furthermore, the executive will be normalised in a cluster as per his new
grade and function.

t Committe
The total score for the year would be calculated using the same 3-month
minimum service principle.

The respective HR departments have to ensure that PMS forms are filled and
signed off if an executive has served for a minimum period of 3 months either in
the location or under a particular reporting officer or within a role band. The
release order for the executive/reporting officer will be issued subject to the
fulfilment of this.

Thereafter, HR needs to coordinate with the other HR departments where the

executive has been transferred to communicate the proportionate weightage of
total score to be used for calculating the final score.

Audit of PMS

Guidelines

To achieve the objectives of the PMS, an audit procedure has been put in place to
ensure that all users follow PMS guidelines consistently.

Role of Audit Team

The audits are to be carried out on a sample basis across plants, regions
Corporate Centre using the format provide in the annexure.

Area Audit Team Report Submitted to

• Mother care Head of O&M

• Head of HR
• Head of HR for the
• respective Region
• Regions Head of OS
• Head of P&S/P&M
• Head of HR
• Corporate HRD
• Corporate Centre Nominated member from Corporate
• Nominated member from HR
• All nominated members will not be
• Corporate HRD

CHAPTER 5
 CONCLUSION
From the analysis of the responds of the employees regarding the
performance appraisal system, we arrive at the following conclusions:

• That all the employees at the organization are aware of the

performance appraisal system present in the organization and
they deem it necessary for assessing the performance of the
executives. The appraisal system followed in the organization is
satisfactory as far as its employees are concerned and is
concerned as a useful proposition for the employees.

• In short, each and every employee in the organization posses an

overall positive view towards the system of performance
appraisal.

• The performance appraisal as designed and followed by the

organization satisfies all those objectives for which the whole
system of appraisal has been conceptualized.
• That the system of appraisal enhances the relationship between
the appraiser and appraisee through mutual trust, performance
review discussion, sharing the views and ideas etc.

• Almost all the employees in the organization hold the view that
the appraisal system practiced by the organization reflects the
performance of the appraisee, whether good or bad, and sharing
the results with the appraisee helps to enhance the performance
of the employee in future.

• Practicing appraisal system by the organization helps to boost

up the performance of the employees which in turn results in the
success of the organization.

• Whereas the appraisal system is very much useful for its

employees as it provides the appraisee the opportunity for self
review, expressing his development needs, discovering his
potential and focusing clearly on his own strengths and
weaknesses. The appraisal system followed by the organization
is mainly directed towards evaluating the performance
personality traits and managerial skills and identifying the
training needs of the employees.

• As according to the employees of the organization the

management is serious about undertaking the appraisal of the
employees but they do not give the requisite consideration to the
findings as obtained by the appraisal programme. Neither do
they follow up seriously the training needs identified during
appraisal nor do they conduct the performance review discussion
with care. Worsening the system is the fact that no suitable
rewards or benefits are given to those employees who excel in
their work and gives a better performance as compared to
others. This reduces the enthusiasm of the employee and which
affects their working state of mind.

• The employees of the organization do prefer the open system of

appraisal as against the confidential system of appraising the
appraisee by the appraiser.
• A big and successful organization such as mother care attributes
its success to its effective and efficient employees possessing
high caliber and giving performance as per expectations.

• The employees of mother care are more responsible towards

their organization. To maintain the efficiency of the employees
and to motivate and encourage them, the organization needs to
keep track to their employees and one of the ways is to appraise
the performance of the employees.

• Although the organization has a well designed appraisal system

which is fruitful for the organization, certain drawbacks of the
managements reduces the effectiveness of the organization. The
main drawbacks of the organization are its casual attitude
towards the post-appraisal system and the absence of 360 degree
Performance appraisal system.

SUGGESTIONS

The organization can include the following suggestions:

 Ensure frequent two-way communication

 Mutually agree upon goals

 Evaluate its own performance first

 Document performance between appraisal meetings

 Preparation and assumptions of the executives discussion

 Ask for executive’s opinion

 Present its assessment openly, clearly and rationally

  Focus on performance, not personality

 Introduce 360 degree performance appraisal system.

Bibliography

• Annual Report of Mother Care

• Study Materials of Mother Care

• Internet Website: www.mothercare.com