CHAPTER- V DATA PRESENTATION AND ANALYSES: PERFORMANCE APPRAISAL SYSTEM IN MANUFACTURING INDUSTRY 5.1 INTRODUCTION 5.2 INFORMATION AT A GLANCE 5.3 DIFFERENT FORMATS 5.4 PURPOSE OF APPRAISAL IN MANUFACTURING INDUSTRY 5.5 PROCESS OF EMPLOYEES APPRAISAL 5.6 CASE STUDY OF MANUFACTURING INDUSTRY 5.7 QUESTIONNAIRE FOR DATA COLLECTION IN SAMPLE MANUFACTURING INDUSTRY 5.8 FIRST SUGGESTIVE MODEL 5.9 SECOND SUGGESTIVE MODEL 5.10 DIFFERENT SCALE / WEIGHT FOR DIFFERENT VARIABLES 5.11 DETERMINATION OF WEIGHT / MARKS ON THE BASIS OF IMPORTANCE OF VARIOUS EMPLOYEE PERFORMANCE MEASUREMENT FACTORS AT THREE LEVELS OF MANAGEMENT – Pro forma. 5.12 DETERMINATION OF WEIGHT / MARKS ON THE BASIS OF IMPORTANCE OF VARIOUS EMPLOYEE PERFORMANCE MEASUREMENT FACTORS AT THREE LEVELS OF MANAGEMENT 5.13 ALLOCATION OF MEASUREMENT VARIABLES ON THE BASIS OF DETERMINED WEIGHT FOR THREE DIFFERENT SAMPLE ORGANIZATIONS 5.14 SAMPLE RESPONDENTS FOR PROVIDING WEIGHT FOR SET VARIABLES 5.15 CONCLUSION
Transcript
CHAPTER- V
DATA PRESENTATION AND ANALYSES: PERFORMANCE APPRAISAL SYSTEM IN
MANUFACTURING INDUSTRY 5.1 INTRODUCTION 5.2 INFORMATION AT A GLANCE
5.3 DIFFERENT FORMATS 5.4 PURPOSE OF APPRAISAL IN MANUFACTURING INDUSTRY 5.5 PROCESS OF EMPLOYEES APPRAISAL 5.6 CASE STUDY OF MANUFACTURING INDUSTRY 5.7 QUESTIONNAIRE FOR DATA COLLECTION IN SAMPLE MANUFACTURING INDUSTRY 5.8 FIRST SUGGESTIVE MODEL 5.9 SECOND SUGGESTIVE MODEL 5.10 DIFFERENT SCALE / WEIGHT FOR DIFFERENT VARIABLES 5.11 DETERMINATION OF WEIGHT / MARKS ON THE BASIS OF IMPORTANCE OF VARIOUS EMPLOYEE PERFORMANCE MEASUREMENT FACTORS AT THREE LEVELS OF MANAGEMENT – Pro forma. 5.12 DETERMINATION OF WEIGHT / MARKS ON THE BASIS OF IMPORTANCE OF VARIOUS EMPLOYEE PERFORMANCE MEASUREMENT FACTORS AT THREE LEVELS OF MANAGEMENT 5.13 ALLOCATION OF MEASUREMENT VARIABLES ON THE BASIS OF DETERMINED WEIGHT FOR THREE DIFFERENT SAMPLE ORGANIZATIONS 5.14 SAMPLE RESPONDENTS FOR PROVIDING WEIGHT FOR SET VARIABLES 5.15 CONCLUSION
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5. DATA PRESENTATION AND ANALYSES: PERFORMANCE
APPRAISAL SYSTEM IN MANUFACTURING INDUSTRY
5.1 INTRODUCTION:
This chapter covers the performance appraisal system formats or models for manufacturing organization in the sample area. The selected sample unit is GHATGE PATIL INDUSTRIES LIMITED, KOLHAPUR having turnover of Rs. 190 crores. The researcher has designed the questionnaire for data collection and on the basis of responses he designed the model for performance appraisal of employees. The questionnaire covered questions for employees rating on the basis of job knowledge, intelligence, dependability, industriousness, quality of work, leadership qualities, creative abilities, communication skills, power of judgement, analytical ability, co-cooperativeness, self expression, organizing skills etc.
5.2 INFORMATION AT A GLANCE: GHATGE PATIL INDUSTRIES LIMITED, KOLHAPUR
SN Particulars Manufacturing (GPI) 1 Name Ghatge Patil Industries Limited, Kolhapur 2 Educational Qualification of MD B. E., M. B. A. 3 Experience 30 Years 4 Registration Date of Company
1962
5 Nature of Organization:
Deemed Public Company. Shares are not listed in stock exchange
6 Introduction –
• The company has two divisions, one is Foundry and another is Production
• 70% Export • Gate Valves production • Marine gear box production
7 Capital Investment Rs. 127 cr. 8 Turnover per year Rs. 290 cr. 9 Name of MD Mr. Kiran J. Patil
10 Name of HR Manager
Mr. V. S. Patil
11 Total Number of Employees 1000 12 Employees : Top
Middle Lower
45 100 855
13 Selection Procedure
• Written Test • Oral Test • On the job testing • Campus Interview • Through Employment Exchange
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• Advertisement • References
14 Training Procedure
• Induction Training provided • Regular training as per the training
needs. 15 Rater intimating to subordinate
regarding performance appraisal
Yes – Rater is intimating to the subordinate about performance appraisal
16 Rater and Ratee’s perception about performance appraisal
Satisfactory
17 Existing PA System. Need to be improved 18 Role of Rater and Ratee They are performing positive role 19 Difference of Opinion about PA Yes – It is found that there is difference of
opinion in the PA 20 PA feed back to Employees Oral instructions are given to the
employees. 21 Method of Performance
improvement of Employees.
• Training • Meeting • Interaction • Visit to other companies
22 Analysis of Performance Appraisal forms.
Yes – As per the need and requirements
23 SWOT of Existing PAS
S = No W = Time Consuming O = No T = Halo effect, no scientific technique and lack of skills for performance measurement.
24 Collection of existing PAS format from three levels
Yes - but only workers’ performance appraisal format is available which is very complicated and time consuming.
25 PA system used by
By supervisor
26 Nature of activity
• Casting • Production of gate valves • Marine gear box
27 Organizational Chart
Members ↓
Board of Directors ↓
Chairman ↓
MD ↓
CEO ↓
VP – All Functional Areas ↓
Section Heads
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↓ Supervisors
↓ Workers
28 Board of Directors
• Mr. J. B. Patil • Mr. Kiran J. Patil • Mr. P. D. Gurge • Mr. A. D. Patravale • Mr. J. B. Diwale
29 Historical background
• The company has long history • Started workshop at the beginning • Started Transport Business • Started automobile Industry • Good reputation in Maharashtra and
India 30 Geographical Factors and Area
of Marketing India and Abroad
31 Infrastructural Factors • 23 acre of factory land • 3.5 hector area for Factory Shade
and Buildings 32 Discussion on analyzed tables
(First Questionnaire) (FIRST STEP)
The first questionnaire has been discussed by the researcher and received some good suggestions from the sample respondents.
33 Testing of PAS Model at Three Levels (360 Degree) (SECOND STEP)
• Tested by the researcher
34 Correction of PA Model at Three Levels (360 Degree)
• The researcher has made necessary corrections in the model
• Above Model Corrected through Discussion
35 Modified Model Testing at Three Levels (360 Degree) (THIRD STEP)
• The researcher has again tested the modified model
36 Correction of Modified Model at Three Levels (360 Degree)
• The researcher has made necessary corrections in the modified model
• Above Model Corrected through Discussion
37 Modified Model Testing at Three Levels with computer programming support (360 Degree) (FOURTH STEP)
• The researcher has tested manually and not by computerized programmed support. But in due course it will be tested with the help of computer support.
38 Submission of Final Computerized PAS Model
• The researcher will submit to the respondent companies in due course of time.
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39 Collect Photos • The researcher has collected necessary photographs for reference.
40 Conclusion
• It is found that there is a scope for improvement in PAS
• Training should be provided to the employees
• Sales related incentives are good in this industry
• Production related incentives are good.
41. Language known by the majority of the employees in the organization.
SN Language Known
Manufacturing (GPI)
Read Write Speak 1 Marathi Yes – All Yes - All Yes – All
2 Hindi Yes – All Yes - All Yes – All
3 English Yes – Top Management People
Yes – Top Management People
Yes – Top and Middle Management People
4 Kannada No No No
5 Any Other No No No
42. No of employees working: Manufacturing Industry (GPI)
S. N.
Particulars / Departments
Administration Marketing Manufacturing Security Total
1 Skilled 15 27 400 16 458 2 Semi
Skilled 2 16 500 24 542
3 Unskilled - - - - - 4 Total 17 43 900 40 1000
5.3 DIFFERENT FORMATS: (Source Internet and Books)
Format: 1
EMPLOYEE PERFORMANCE APPRAISAL YEAR ---------
FOR SUPERVISORS AND ABOVE
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Employee Code No.: Name of Employee: Designation: Dept./Section: Date of Joining: Performance Category: Definition of Ratings: Outstanding: 5 Exceptional contributions well in excess of job requirements. Needs little supervision Very Good: 4 Better than average performance. Shows good development and potential Good : 3 Adequately meets requirements of job. Average performance and potential for development. Average : 2 Barely meets requirements of job. Needs improvement. Poor : 1 Does not meet requirements of job and has reached performance ceiling. Indicate the rating from 1 through 5 which best describes the employee’s performance in each of the following Categories.
2. Personal Cleanliness Wearing ID Card, trimmed hair and nails, clean dress, etc,
3. Job Knowledge Understands what he is doing. Handles changes easily and Learns new things, knows principles and methods of his job process/system.
4. Attitude Willing to work hard, assumes added responsibility, plans and meets schedules and commit- ments, produces reliable results.
5. Motivation Shows strong desire to accomplish things, Possess ‘self’ Starting ability, Performs, job With minimum amount of Supervision, Ability to overcome obstacles, Strong desire To rise to top, Promptness In making decisions.
6. Analysis Thinks through complex & difficult
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problems before coming to a decision. Keeps personal feelings out of situation 6. Creativity/Originality Demonstrates ability to organise ideas. Approached problems with inquisitive mind. Looks for new/improved methods in his job
7. Leadership Effective in dealing with people. Effectively evaluate people. Inspires loyalty in sub-ordinates, Can reprimand without incurring resentment. Generates confidence. Has capacity to generate enthusiasm. Concern for sub-ordinate development.
8. Communication Demonstrate ability to express himself, well expresses ideas simply, concisely and effectively. Sells ideas in persuasive and logical manner
9. Organisation & Planning Plans and organizes work efforts effectively. Time planning and execution is effective. Supervise through delegation, schedule, follow-up and control
10. House-Keeping & Hygiene Right things at right place. Maintains good work place. Adopting safe work practices.
11. Training & Learning Learning new skills. Sharing communication. Training others.
13. Systems & Procedures Follows systems and procedures. Good work habits and methods
14. Team Work Builds team work culture. Works for consensus approach. Participative approach.
15. Suggestions Contributes valuable suggestions. Accepts new suggestions
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16. Decision Making Strong in decision-making. Takes quality decisions. Has convincing ability.
17. Work Stress Willing to work hard. Enjoy working. Accepts additional responsibility.
18. Inter-Departmental Relationships
19. Quality Consciousness
20. Scope For Development Total
Comments by HOD:
To MD / TD for comments and approval:
To HR Manager for necessary action:
Format: 2 CATEGORY: TRAINEES POSITION: DEPT/ SECTION: (To be completed by HR/Personnel Department) Name of the Trainee: ------------------------------------------- Code No.(if any): ------------------------------------------- Date of Joining: ------------------------------------------- Duration of Training : From------------------------ To------------------------ Total No. of days Absent:
II Performance Ratings (To be completed by Department/Section In-charge)
YEAR: FROM------------- TO:----------- (To be completed by HR Dept.) Name of the Employee: Code No.: Designation: Date of Joining: Department/Section: II ATTENDANCE & PUNTUALITY (To be completed by HR Dept.):
III PERFORMANCE RATINGS (To be completed by Dept./Section In-charge)
Rating:
Outstanding: 5 Exceptional contribution well in excess of job requirements. Needs little supervision. Very Good: 4 Better than average performance. Shows good development & Potential. Good: 3 Adequately meets requirements of job. Average performance and potential for development.
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Average: 2 Barely meets requirements of job. Needs improvement. Poor: 1 Does not meet requirements of job and has reached performance Ceiling.
Indicate the rating from 1 through 5 which best describes the employee’s
performance in each of following categories
Parameters Rating
1. Attendance and Punctuality
2. Personal Cleanliness & Hygiene
3. Attitude & Good Manners
4. Communication and Reporting Skills
5. Job Knowledge - Theory
6. Job Skills - Accuracy
7. Speed
8. Learning
9. Work Methods
10. Creativity
Total
OVERALL AVERAGE RATING:
SIGNATURE OF H.O.D.:
TO DIRECTOR (FOR HIS/HER RECOMMENDATIONS):
TO HR DEPARTMENT: FOR FURTHER NECESSARY ACTION:
GUIDELINES FOR RATINGS:
1. One has to select different Behaviour Traits required for good performance.
2. One has to introduce Multiplication factors against each Trait according to job requirement.
3. The Multiplication factors are as follows: Personal Cleanliness & Hygiene Practices Rating X 1 Attendance & Punctuality Rating X 1 Attitude & Good Manners Rating X 1 Job Knowledge (Both Theory & Practical) Rating x 3 Creativity & Innovation Rating x 3 Application of New Concepts Rating x 3
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Communication (Convincing & Reporting Skills) Rating x 2 Time Planning Rating x 2 Learning Rating x 2 Overall Quality Consciousness Rating x 2
4. Overall average rating is arrived at by dividing it by total number of traits. 5. Employee performance based salary / wages can be fixed. Considering the above mentioned performance appraisal and rating system in manufacturing industry it is found that the present systems are tedious, very descriptive and time consuming. Considering this situation in the industries and various formats of performance appraisal system the question arises that, what is employees appraisal? Performance is a result and behaviour of an employee on the task, which can be observed and evaluated whether quantifiable or not, it can be rated from excellent to inadequate, outstanding to poor, good to bad, etc. The basic principle of PA could be:
1. Any activity or the task can be measured by some combination of cost, 2. Time and Quality indices. 3. Measurement systems provide productivity 4. Professional work is measured in a group 5. The ultimate measurement is the measurement of effectiveness
5.4 PURPOSE OF APPRAISAL IN MANUFACTURING INDUSTRY: Following is the purpose of performance appraisal in the manufacturing industry. 1) Employee’s Effectiveness: The employee appraisal helps in identifying the deficiency in the employee and enables him to strive if or remedies to improve efficiency in the manufacturing industry. 2) Employee’s Development: The diagnosis of training and development
needs, appraisal process which enables organisation to develop their employees for future challenges.
3) Removing Work Alienation: The appraisal also helps to counsel the employee to correct his misconceptions which might have resulted in work alienation.
4) Removing Discontent: It also helps to remove discontent amongst the employees and motivate them towards their jobs.
5) Wage/Salaries Administration: To motivate the employee in terms of special increment or any financial award the appraisal is found very useful.
6) Helps Promotions: Employee’s performance appraisal highlights the strong and weak points and also the potential in him for his promotion to higher rank.
7) Develop interpersonal Relationship: Regular appraisal encourages the employee to do introspection and correct his behaviour to improve interpersonal relationship.
8) Aid to Training & Development: This also helps in selecting the employees for training and development. Above mentioned are the specific purposes to conduct performance appraisal in the manufacturing. In the sample manufacturing these purposes are discussed ant the respondents authorities are agreed upon them.
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5.5. PROCESS OF EMPLOYEES APPRAISAL: The researcher has followed following process in the sample manufacturing industry for the preparation of format or Model for performance appraisal. Step 1: Conducted pilot study of the sample industry with present PA system. Step 2: Data collection through prepared questionnaire. Step 3: Analyses of Data. Step 4: First PA Model prepared and tested. Step 5: Second P A model prepared and tested. Step 6: Weight for different variables has determined and tested Step 7: Third and Final P A Model has prepared and tested. Step 8: Final P A Model has converted in computer software.
5.6 CASE STUDY OF MANUFACTURING INDUSTRY: (Source Internet)
Please tick your answers against following statements: 1) Which is considered to be productive to the Company?
a) Whether taking leave with prior approval for one week or b) Availing of one day leave without prior intimation or approval?
2) If you are not punctual, do you expect others also. a) Not punctual b) Feeling guilty to point out the same.
3) Dress improves productivity. Will you agree or not? a) Yes b) No.
4 ) Motivational factors – Mention in order of preference. a) Money b) Good Manager c) Good sub-ordinates d)Good achinery e) Training f) Team Work g) Canteen h) Job related books i) Freedom on job j) career development
6. How do you feel “Job Stress”? A) Enjoyable B) Tired and Bored
7. Can you order in preference the following: i) Job Stress develops knowledge and skill
ii) Job stress leads to health problems iii) Job Stress develops communication and leadership skills iv) Job stress invites frustration
8. A Good leader is…. a) One who leads and dominates in an autocratic way b) One who leads but democratic
9. Good communication in an organisation is: a) Good English without any mistakes b) Meaning understood by the Receiver as envisioned by the Sender.
10. Do you give more weightage in which of the following Attitudes? a) Outwardly performs but inwardly with reluctance b) Inwardly wants to perform and hence the outward action.
11. Good Housekeeping is a) Clean and Good place b. Right thing at right place c. Both
12. Do you give preference to a) Individual identity in performance b) Group identity
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13. Do you recognize new ideas a) Immediately and wants to put on experiment
b) Not immediately and you want to see the existing system runs well. 14. Do you consider new ideas as
a) Quite expensive and time consuming b) Ready to accept for change if it is productive and qualitative one
15. Do you expect your sub-ordinates a) To be free and open in sharing communication of all matters b) Communication only relates to work
16. Do you notify a) Strengths of an employee publicly and weakness when alone b) Loud noise in announcing the weakness and no botheration on strengths.
Above mentioned sample case or format questionnaire is used in the manufacturing industry. This format has covered majority of the parameters to measure the performance of the employees. The researcher has kept all these factors, variables and parameters while he designed the model for employees performance measurement in the sample manufacturing industry at three levels of management. Considering the above mentioned references the researcher has used the following questionnaire for collection of data which was useful for preparation of performance appraisal models. The researcher has used different variables for data collection and preparation of practical model of human resource performance appraisal. The variables used are Name, Address, Educational Qualification, Experience, Happy about present Performance Appraisal System, job rotation, promotion policies, opportunity available for self-development, 360 degree assessment, peer evaluation, perception of Raters, perception of Ratees, etc. variables has collected and on the basis of these variables and discussion held with HR authorities time to time, the researcher has designed the questionnaire for preparation of model performance appraisal format in his study. 5.7 QUESTIONNAIRE FOR DATA COLLECTION IN SAMPLE MANUFACTURING INDUSTRY:
Research Topic: “Performance Appraisal System for Employees”. (Manufacturing Unit) Please tick ( √ ) mark for multiple choice questions.
1. Name: 2. Address: 3. Educational Qualification: 4. Experience: 5. Are you happy about present Performance Appraisal System?
(a) Very True (b) True (c) Partly True (d) Not True 6. Are competencies required for performance improvement?
(a) Very True (b) True (c) Partly True (d) Not True
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7. Are you trying to improve your performance?
(a) Very True (b) True (c) Partly True (d) Not True 8. Is job rotation practically followed in your organization?
(a) Very True (b) True (c) Partly True (d) Not True 9. Is your company promotion policies based on performance appraisal
parameters? (a) Very True (b) True (c) Partly True (d) Not True
10. Does the performance appraisal provide an opportunity for self review and reflection? (a) Very True (b) True (c) Partly True (d) Not True
11. Is performance appraisal based on all round feedback i.e. 360 degree assessment? (a) Very True (b) True (c) Partly True (d) Not True
12. Does the appraisal procedure allow appraise to express his development needs? (a) Very True (b) True (c) Partly True (d) Not True
13. Does the appraisal system provide for a frank discussion between the appraiser and the appraise? (a) Very True (b) True (c) Partly True (d) Not True
14. Does your company use numerous rewards, including non financial, to motivate people? (a) Very True (b) True (c) Partly True (d) Not True
15. Are salary and other benefits renewed at least once in a year? (a) Very True (b) True (c) Partly True (d) Not True
16. Does your company make good use of IT applications in performance appraisal systems? (a) Very True (b) True (c) Partly True (d) Not True
17. Do you feel that your abilities and skills are utilized in optimum manner in your organization? (a) Very True (b) True (c) Partly True (d) Not True
18. Do you believe that performance appraisal system is useful? (a) Very True (b) True (c) Partly True (d) Not True
19. Is performance gradation system in your organization standard one? (a) Very True (b) True (c) Partly True (d) Not True
20. Does the employee of your organization give ongoing feedback? (a) Very True (b) True (c) Partly True (d) Not True
21. Is peer evaluation used in your organization for performance appraisal? (a) Very True (b) True (c) Partly True (d) Not True
22. Is performance appraisal system designed by the Appraise and the Appraiser jointly? (a) Very True (b) True (c) Partly True (d) Not True
23. Does the performance appraisal provide an opportunity for self review and reflection? (a) Very True (b) True (c) Partly True (d) Not True
24. Is perception of Raters (Appraiser) positive regarding performance appraisal? (a) Very True (b) True (c) Partly True (d) Not True
25. Is perception of Ratees (Appraisee) positive regarding performance appraisal? (a) Very True (b) True (c) Partly True (d) Not True
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26. Is there scope for improvement of performance appraisal system?
(a) Very True (b) True (c) Partly True (d) Not True 27. Is there uniformity in performance appraisal system at different levels?
(a) Very True (b) True (c) Partly True (d) Not True 28. The Performance Appraisal System works through…..
(a) Higher Authority (b) Superior (c) Peers (d) Your Subordinate (e) Out side agencies (f) Self Appraisal
29. Performance appraisal is conducted for…… (a) Salary/Wages determinations (b) Increments (c) Promotion (d) Transfer (e) Training needs determinations (f) Employee productivity
measurement (g) Motivation (h) Required knowledge and skills determinations
30. Which type of performance Appraisal Method is used? (a) Confidential Report (b) Rating Scale (c) Ranking System (d) Paired
31. Do you come across any problem /s in performance appraisal? (a) Halo Effect (b) Rater’s Effect (c) Supervisor’s dual and conflicting
Role (d) More time gap between two appraisal (e) Partiality (f) Any other
32. Is some one encouraging my development? (a) Very True (b) True (c) Partly True (d) Not True
33. Are you satisfied about your job? (a) Very True (b) True (c) Partly True (d) Not True
34. Give marks for following criteria as per your knowledge and experience:
S. N.
Criteria Maximum Marks
Marks Secured
Parameters to Measure
1 Output Rejection
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• If 2% rejection give 60 marks • If 5% rejection give 30 marks • If 10% rejection give 15 marks • If 15% rejection give 10 marks
2 Absenteeism 10
• If employees absenteeism is more than 10% of the total employees per month then give 2 marks
• If employees absenteeism is about 5% of the total employees per month then give 5 marks
• If employees absenteeism is about 3% of the total employees per month then give 7 marks
• If employees absenteeism is about 1% of the total employees per month then give 10 marks
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3 Industrial Accidents
10
• If 1 accident per month then give 10 marks
• If 2 accidents per month then give 7 marks
• If 3 accidents per month then give 5 marks
• If 4 accidents per month then give 3 marks
• If 5 accidents per month then give 1 mark
4 Job
Satisfaction 10
• If Employees job satisfaction is excellent then give 10 marks
• If Employees job satisfaction is good then give 7 marks
• If Employees job satisfaction is average then give 5 marks
• If Employees job satisfaction is bad then give 3 marks
5 Labour
Turnover 5
• If high labour turnover give 1 mark
• If average labour turnover give 3 marks
• If low labour turnover give 5 marks
6 Qualification 5 • If qualification is more than
required then give 5 marks • If qualification is as per
requirement then give 3 marks • If qualification is below than
requirement then give 1 mark.
7 Total 100 ------
35. Kindly put forth suggestions to improve your performance appraisal
system.
Signature
On the basis of above questionnaire and discussion the researcher
has designed following model for performance appraisal.
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5.8 FIRST SUGGESTIVE MODEL:
Employees Performance Appraisal
(To be filled by immediate supervisor)
1. Name: 2. Date of Birth: - - Age: Years 3. Address: 4. Designation: 5. Department: 6. Area of Specialization: 7. Date of Appointment: First Appointment…………. In This Present Post………. 8. Cast: Open Reserve. 9. Educational Qualification:
S N Qualification Specialization Year Class Obtained 1 S. S. C. 2 H. S. C. 3 Bachelor’s Degree 4 Master’s Degree 5 Other
10. Quality of the Employee’s work: (Please tick mark the square)
Above developed model has been tested and modified according to the suggestions given by the sample manufacturing industry’s authorities and employees. The modified model is given below.
5.9 SECOND SUGGESTIVE MODEL
“Employee Performance Appraisal”
(To be filled by Immediate Supervisor, Colleague, Peer, Subordinate and The Employee Himself i.e 360 Degree Appraisal)
1. Name: 2. Date of Birth: - - Age: Years 3. Address: 4. Designation: 5. Department: 6. Area of Specialization: 7. Date of Appointment: First Appointment………….
In This Present Post………. 8. Category: Open Reserve 9. Educational Qualification:
S N Qualification Specialization Year Class Obtained 1 S. S. C. 2 H. S. C. 3 Bachelor’s Degree 4 Master’s Degree 5 Other
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10. Quality of Employee’s work: (Please tick mark the square)
Low Below Average Average Above Average More 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
33. Employee Performing Prime Responsibility.
Too Less Below Average Average Above Average More 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
34. Your opinion about Employee Performance:-
Signature
Above developed SECOND model has been tested and modified according to the suggestions given by the sample Manufacturing Industry’s authorities and employees.
The above-mentioned Performance Appraisal Model has been discussed with the authorities of GPI. The Vice President (HR), Human Resource Manager and Assistant Manager (HR) focused this primary model of performance appraisal system in manufacturing industry. They appreciated this 25 scale performance appraisal evaluative model which will help for accurate or perfect evaluation of performance of human resource. The authorities and sample respondents have referred to all questions and suggested that the less important questions should be eliminated and the researcher considered their suggestions and did the necessary elimination. They also suggested modifying and adding some questions which were considered. It was discussed that through this model the industry can measure the level of performance of employees at individual level and at departmental level which will help for improving overall performance of the employees and ultimately the total performance of the industry. It is also discussed and studied how this model would help for skill development of employees. It is noted that in this method of performance appraisal, fixation of workload of the respective employee is very much easy and convenient. As
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per the changing situation and circumstances one has to modify and implement the workload changes in the organization, which is not scientifically undertaken by the industries in the sample area at present.
5.10 DIFFERENT SCALE / WEIGHT FOR DIFFERENT VARIABLES: It is observed by the researcher that there should be different scales or weights for each and every variable. It is found that some variables are more important than others in the same firm and some variables may be more important than others firms. For example, although most of the respondents and researcher have felt that both competencies and objectives are important, it is more important to do a better job at producing results than it is to do a good job in demonstrating the competencies. Obviously, not all variables are of equal importance to the organization. The issue is; should the form / model reflect the fact that some variables are more critical than others? Weighing is the best factor left for the measurement of performance of the employees in the various departments and at various levels. This has been discussed during the research data collection and at the time of testing the models. The researcher has tried to provide predetermined weights for various variables of the performance appraisal system that will be applied to a broad range of jobs that are going to use it. During the research, the manager and subordinate has discussed the relative importance of the items to be accomplished in the performance appraisal system. The situation is changing according to the organization and levels of management and on the basis of that the rater has to measure the performance of employees.
5.11 DETERMINATION OF WEIGHT / MARKS ON THE BASIS OF IMPORTANCE OF VARIOUS EMPLOYEE PERFORMANCE MEASUREMENT FACTORS AT THREE LEVELS OF MANAGEMENT:
(Pro forma)
S.N. Performance Measuring Variables
Manufacturing Weight: 1 To 4
Service Weight: 1 To 4
Trading Weight: 1 To 4
L M T L M T L M T 1
Educational Qualification
2
Quality of Employee’s work
3
Productivity of an employee
4
Job knowledge of an employee
5
Attendance of an Employee
6
Initiative of an employee in various activities
7
Vertical and Horizontal co-
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operation of an employee
8
Dependability of an employee on others
9
Need of Employee supervision
10
The Employee’s leadership and team building approach
11
Negotiation and analytical ability of an employee
12
Achievement orientation and enthusiasm of an employee
13 Participation in Training and development
14
Problem solving skills of employee
15
Decision making skill, Conceptual Knowledge, Interpersonal Relations, Business Development Skill, Communication Skill of employee
16
Constraints and difficulties facing in performing employee’s duties
17
Emotional stability and Ability to manage stress of employee
18
Employee job satisfaction level
19
Employee providing satisfaction and services to the customers
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20
Employee’s nature of behaviour towards Subordinates, Colleagues, Supervisors
21
Employee’s ability to maintain Industrial Relations and handle emergency
22
Employee Quality of Work Life
23
Fixation and Allocation of Work Load to Employee
24
Employee Experience
25
Employee Performing Prime Responsibility
SN = Serial Number.
The Researcher has designed 34 parameters in second suggestive model for measuring the performance of employees in manufacturing industry. These all parameters have been designed with the help of the HR authorities in the sample industries, employees and other HR authorities who are working in other outside renowned industries. The researcher has taken rigorous efforts when he designed the research parameters for measuring the employee performance. In these parameters almost all criteria are considered for employee performance measurement. No doubt a few more questions can be added but the more number of questions can be inconvenient to the respondents and authorities too. Considering all aspects of the study, the researcher has designed initially 35 performance measurement parameters, then, after discussion with the HR authorities in the sample and outside organizations, the researcher has re-structured 34 performance measurement parameters with changes. Out of 34 parameters, 9 (nine) parameters are basic and open-ended nature parameters, which are not directly considered for employee performance measurement. These parameters include name of employee, birth date, address, designation, department, area of specialization, date of appointment, category of employee. These all are the open ended in nature, so, this information is used as basic information for employee performance measurement. It means that out of 34 parameters, 9 parameters are excluded and 25 parameters considered for measuring the performance of an employees. For
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measuring the performance of an employee, the researcher has considered employees at Top, Middle and Lower levels. To maintain the uniformity in the performance testing the researcher has set same parameters for all three levels of management people. But top, middle and lower level employees’ respective parameter weight or importance or value or mark is not same, so, the researcher has designed three different weights or values for each level of management. It means that top level management employees having different weight, middle level management having different weight and lower level management having different weight for measuring their performance. At the same time different weight has used for different nature organizations like manufacturing, service and trading organizations. The researcher has considered these different weights because of proper, accurate and appropriate measurement of employee performance at three levels of management and at three different types of organizations. 5.12 DETERMINATION OF WEIGHT / MARKS ON THE BASIS OF IMPORTANCE OF VARIOUS EMPLOYEE PERFORMANCE MEASUREMENT FACTORS AT THREE LEVELS OF MANAGEMENT:
SN Performance Measuring Variables
Manufacturing Weight: 1 To 4
Service Weight: 1 To 4
Trading Weight: 1 To 4
L M T L M T L M T 1
Educational Qualification
S – 1 H – 2 G – 4
H – 1 G – 2 PG – 4
G – 1 PG – 2 O – 4
S – 1 H – 2 G – 4
H – 1 G – 2 PG – 4
G – 1 PG – 2 O – 4
S – 1 H – 2 G – 4
H – 1 G – 2 PG – 4
G – 1 PG – 2 O – 4
2 Quality of Employee’s work
4
4
4
4
4
4
4
4
4
3
Productivity of an employee 4 4 4 4 4 4 4 4 4
4
Job knowledge of an employee 4 4 4 4 4 4 4 4 4
5 Attendance of an Employee 2 2 2 2 2 2 2 2 2
6 Initiative of an employee in various activities
1
1
1
2
2
2
2
2
2
7
Vertical and Horizontal co-operation of an employee
2 2 2 2 2 2 2 2
2
8 Dependability of an employee on others
- 2 - 2 - 2 - 2 - 2 - 2 - 2 - 2 - 2
9 Need of Employee supervision
- 1
- 1
- 1
- 2
- 2
- 2
- 2
- 2
- 2
10
The Employee’s leadership and
1
1
1
1
1
1
1
1
1
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team building approach
11 Negotiation and analytical ability of an employee
2
2
2
2
2
2
2
2
2
12 Achievement orientation and enthusiasm of an employee
4
4
4
4
4
4
4
4
4
13 Participation in Training and development
2
2
2
2
2
2
2
2
2
14 Problem solving skills of an employee
2
2
2
2
2
2
2
2
2
15 Decision making skill, Conceptual Knowledge, Interpersonal Relations, Business Development Skill, Communication Skill of an employee
4
4
4
4
4
4
4
4
4
16 Constraints and difficulties facing in performing employee’s duties
2
2
2
2
2
2
2
2
2
17 Emotional stability and Ability to manage stress of an employee
1
1
1
4
4
4
4
4
4
18 Employee job satisfaction level
4 4 4 4 4 4 4 4 4
19 Employee providing satisfaction and services to the customers
1
1
1
4
4
4
4
4
4
20 Employee’s nature of behaviour towards Subordinates, Colleagues, Supervisors
2
2
2
2
2
2
2
2
2
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21 Employee’s ability to maintain Industrial Relations and handle emergency
2
2
2
2
2
2
2
2
2
22 Employee Quality of Work Life
4 4 4 4 4 4 4 4 4
23 Fixation and Allocation of Work Load to Employee
2
2
2
2
2
2
2
2
2
24 Employee Experience 2 2 2 2 2 2 2 2 2
25 Employee Performing Prime Responsibility
4
4
4
4
4
4
4
4
4
Note:
• S= SSC • H = HSC • G = Graduate • PG = Post Graduate • O = Other qualifications
5.13 ALLOCATION OF MEASUREMENT VARIABLES ON THE BASIS OF DETERMINED WEIGHT FOR THREE DIFFERENT
SAMPLE ORGANIZATIONS: Bold portion is for manufacturing
industry…
(Figures in the squares are showing the Question Number)
Important Variables Average Important Variables
Regular Nature Variables
4 – Weight 2 – Weight 1 – Weight
M S T M S T M S T
1* 1* 1* 1* 1* 1* 1* 1* 1*
2 2 2 - - - - - -
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3 3 3 - - - - - -
4 4 4 - - - - - -
- - - 5 5 5 - - -
- - - - 6 6 6 - -
- - - 7 7 7 - - -
- - - 8 (-) 8 (-) 8 (-) - - -
- - - - 9 (-) 9 (-) 9 (-) - -
- - - - - - 10 10 10
- - - 11 11 11 - - -
12 12 12 - - - - - -
- - - 13 13 13 - - -
- - - 14 14 14 - - -
15 15 15 - - - - -
- - - 16 16 16 - - -
- 17 17 - - - 17 - -
18 18 18 - - - - - -
- 19 19 - - - 19 - -
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- - - 20 20 20 - - -
- - - 21 21 21 - - -
22 22 22 - - - - - -
- - - 23 23 23 - - -
- - - 24 24 24 - - -
25 25 25 - - - - - -
Total - 9 Total- 11 Total - 11 Total - 12 Total – 14 Total-14 Total - 6 Total- 2 Total-2
Note: 1
M = Manufacturing Industry
S = Service Rendering Industry
T = Trading Organization
Note: 2
Educational
Qualification
S – 1 H – 2 G – 4
H – 1
G – 2
PG – 4
G – 1
PG – 2
O – 4
S – 1 H – 2 G – 4
H – 1
G – 2
PG – 4
G – 1
PG – 2
O – 4
S – 1 H – 2 G – 4
H – 1
G – 2
PG – 4
G – 1
PG – 2
O – 4
Educational Qualification has allocated different weight within industry at Top, Middle and Lower level Management.
Note: 3
The sum of all Measurement Variables (Question Numbers) should be 75 (3 X 25 Variables), but the total is 81 ( 9 + 11 + 11 + 12 + 14 + 14 + 6 + 2 + 2) due to the Educational Qualification has consider in each category, The Qualification has considered that Less than Required, Required and More than Required, so, 81 total.
Note: 4
The sign in the bracket (-) indicates the minus indication of the concern figures.
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To measure the performance of an employee the researcher has used different variables in manufacturing industry. The researcher has designed 25 variables for his research with deep study and discussion with concern authorities who are working in the industry. After detail study the researcher has classified these 25 performance measurement variables into three categories viz (a) Important variables (b) Average Variables and (c) Regular Nature Variables. These three categories of variables valued with ‘4’ marks, ‘2’ marks and ‘1’ mark respectively. It means that important variables have weighted / valued with ‘4’ marks, Average variables are weighted / valued ‘2’ marks and Regular nature variables have weighted / valued with ‘1’ mark. It is designed or determined purposefully that the variables value is not the same i.e. all performance measurement parameters are not same importance and there is a bias effect in the measurement of performance of an employees, considering this limitation the researcher has set the different values for different parameters for measuring the performance of an employees. Here one more factor has been considered by the researcher that the respondents do not know directly the value of the respective variables which will able to minimize the bias effect. Another important intention behind giving weight is that to measure exactly the performance of the employees. In the classification and giving appropriate weight to the respective variable, it is also considered that whether the responding employee is working in manufacturing industry or service providing industry or trading organization. Because the importance of these measurement variables in not same or uniform at different industries and at different levels. It is specially observed and noted that measurement of variables weight is changing according to nature of industries but the weight is some-what constant and uniform at three levels of management in the same nature industry. It means that the researcher has considered uniform weight at three levels of management in the same organization. In simple worlds, in the same nature industry, uniform weight is given to top, middle and lower levels of management for variables measurement. The researcher has selected six authorities from each sample unit on the basis of experience, involvement, educational qualification, knowledge of human resource management and specially employee performance appraisal system. The intention behind using rigorous criteria for selection of these six authorities each from three different sample units is to allocate or give proper weight to the designed 25 variables. Because these 25 variables are not same or has uniform value at its own. At the same time researcher has also discussed with 15 outside experts in HR area for determination and confirmation of weight, verification and cross checking of weight in the given weight to the set variables.
a. Manufacturing Industry: In the manufacturing industry out of 25 variables; ‘9’ variables are important variables (Educational Qualification, Quality of Employees Work, Productivities of an employee, Job knowledge of an Employee, Achievement Orientation and Enthusiasm of an employee, Decision making skill; Conceptual Knowledge; Interpersonal Relations; Business Development Skill; Communication Skill of an employee, Employees Quality of Work Life, Employee Performing Prime Responsibility) has allocated ‘4’ weight. ‘12’
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variables are average important variables (Attendance of an Employee, Vertical and Horizontal cooperation of an employee, Dependability of an employee, Negotiation and Analytical Ability of an Employee, Participation in Training and Development, Problem Solving Skills of an employee, Constraints and Difficulties faced in performing Employee’s Duty, Employees Job Satisfaction Level, Employee’s nature of behaviour towards Subordinates; Colleagues; Supervisors, Employee’s ability to maintain Industrial Relations and Handling Emergency, Fixation and Allocation of Work Load to Employees, Employee Experience) has allocated ‘2’ weight. ‘6’ variables are regular nature variables (Initiative of an Employee in Various Activities, Need of Employees Supervision, The Employee’s leadership and team building approach, Emotional stability and Ability to manage stress of an employee, Employee providing satisfaction and services to the customers) has allocated ‘1’ weight. This classification has done with rigorous exercise and study. For weight consideration, the researcher has discussed with three different levels of authority in sample manufacturing unit. The researcher and the authorities have unanimously finalized the set weight. For more accuracy the researcher has also discussed with another two industries (Service ands Trading) authorities and employees regarding the weight to be given for measuring performance of an employees in manufacturing industry. It is a sort of cross verification for giving weight to concerned variables.
b. Service Rendering Organization: It is discussed in the respective chapter.
c. Trading Organization: It is discussed in the respective chapter.
The researcher also discussed 15 outside experts along with 18 experts (6 from Manufacturing unit + 6 from Service Unit + 6 from Trading Unit) from the selected sample units. These selected 15 outside experts are from various industries and with rich experience in different fields. The researcher has selected these authorities from HR departments of the Banking, Insurance, Sugar, Hotel, Foundry, Educational, and Consultancy services. These experts are qualified and experienced including CA’s, CWA’s, M. Com., M. B. A., Ph. D’s and L. L. B’s. The intention behind discussion with these outside people is that to give appropriate weight to each and every variable through which the researcher is going to measure the performance of an employee. It means that the researcher has undergone the rigorous process for allocation of weight to the set variables. The researcher has discussed with 18 internal authorities and 15 outside authorities for determination of weight of the set variables for measuring employees’ performance. The researcher has organized brain storming sessions for determination of weight for set variables. The researcher has used the “Delphi” technique for unanimous decision for weight determination for set variables. The expert has been selected on the basis of following criterions.
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5.14 SAMPLE RESPONDENTS FOR PROVIDING WEIGHT FOR SET VARIABLES:
SN Particulars
Manufacturing Industry
Experts No. Service Industry
Experts No.
Trading Organization Experts No.
Outside Experts No.
Total No.
1 Top Level 2 2 2 5 11
2 Middle Level 2 2 2 5 11
3 Lower Level 2 2 2 5 11
4 Total 6 6 6 15 33
5.15 CONCLUSION: This chapter covers PAS model for sample unit GHATGE PATIL INDUSTRIES LIMITED, KOLHAPUR having turnover of Rs. 190 crores. The researcher has designed the questionnaire for data collection and on the basis of responses he designed the model for performance appraisal of employees. To measure the performance of employee the researcher has used different variables in the manufacturing industry. The researcher has designed 25 variables with three categories viz (a) Important variables (b) Average Variables and (c) Regular Nature Variables. These three categories of variables are valued with ‘4’ marks, ‘2’ marks and ‘1’ mark respectively. It is specially observed and noted that measurement of variables weight is changing according to nature of industries. In simple worlds, in the same nature industry, uniform weight is given to top, middle and lower levels of management for variables measurement. The researcher has selected six inside authorities from each sample unit and 15 outside experts on the basis of experience, involvement, educational qualification, knowledge of human resource management and specially employee performance appraisal system. In manufacturing industry out of 25 variables; ‘9’ variables are important variables has allocated ‘4’ weight, ‘12’ variables are average important variables has allocated ‘2’ weight and ‘6’ variables are regular nature variables has allocated ‘1’ weight. The researcher also discussed 15 outside experts along with 18 internal experts (6 from Manufacturing unit + 6 from Service Unit + 6 from Trading Unit) from the selected sample units. It means that the researcher has undergone the rigorous process for allocation of weight to the set variables. The researcher has used the “Delphi” technique for unanimous decision of weight determination for set variables.
