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INTRODUCTION
MANAGEMENT:
Management is the art of getting things done through and with the people.
Management is the field of human behavior in which managers plan, Organize, Staff,
direct and control human physical a financial resources in an organized effort in order
to achieve desired individual and group objectives with optimum efficiency
accomplishment of objectives by utilizing physical and financial resources throughthe efforts of human resources. Thus human resources is a crucial subsistent in the
process of management.
MANAGEMENT OF HUMAN RESOURCES CHALLENGING
JOB:
The management of Human Resources is a very important and challenging
job, because it is a job not of managing men but of administering a social system. No two persons are similar in mental abilities, tradition, sentiments and behavior, they
differ widely as groups and are subject many and varied influences. Therefore need a
tactful handling by management personnel .
HUMAN RESOURCE MANAGEMENT:
Human Resource Management is primarily concerned with the peoples
dimension in the organization. It is a crucial subsystem in the process of management.
The success and failure of an organization not only depends on material,machines and equipment but also under personnel who are put in their best efforts for an effort for an efficient performance at the job.
Human Resource Management refers to a set of programs, functions andactivities designed and carried out in order to maximize both employees as well asorganizational effectiveness. Human Resources Management at micro level spells thetotal sum of all the components likes skill and creativity, ability possessed by all theemployees.
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NATURE OF HUMAN RESOURCE:
1. Group interactions : People in any organization manifest themselves not onlythrough individual sections but also through group interactions. It establishesrelationships between employer and employees, and also between employees andemployees. It includes all levels of employees (lower level, top level, and middlelevel) etc.
2. Based on Principles: It is based on different well-defined principles. Managementworkforce is a difficult job, because, each individual worker has his own attitude,
beliefs.
3. Integrated approach : It aims at attaining the goals of organization individual andsociety in an integrated approach .
4. Process: It is a continuous and never ending process .
5. Development of Human Resource s: It is concerned with the development of
human resources, i.e. knowledge, capability, skill, potentialities and attaining andachieving employee goals, including job satisfaction.
6. Management of Human Resources: It involves the application of management
function and principles. The functions and principles applied to acquisitioning,
developing, maintaining, and remunerating employees in organization.
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HUMAN RESOURCE FUNCTIONS:
The functions of Human Resource Management can be broadly classified into
two categories:
1. Managerial Functions and
2. Operative Functions.
1. MANAGERIAL FUNCTIONS:
Managerial Functions of Human Resource Management involve planning,
Organizing, Directing and Controlling.
Planning : It is a predetermined course of action. Planning is determination of personnel programs and changes in advance that will contribute to theorganizational goals. It involves forecasting and determining manpower requirements, changing values, attitudes and behavior of employees and their impact on the organization.
Organizing: An organization is a means to an end. It is essential to carry outthe determined course of action. Once it has been determined that certain
personnel functions contribute towards the firms objective, the personnel
among job, personnel managers must form an organization by designing thestructure of relationships among jobs, personnel and physical factors.Organization establishes relationships among the employees so that they cancollectively to the attainment of company goals.
Directing : Directing is concerned with intimation of organized action andstimulating the people to work. The personnel manager directs the activities of
people of the organization to get its functions performed properly. Directing isgetting people of the organization to go to work willingly and effectively.
Controlling : Controlling is concerned with the regulating activities inaccordance with the personnel plan, which in turn was formulated on the basisof an analysis of fundamental organizational goals, thus, action and operationare adjusted to predetermined plans an standard through.
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2. OPERATIVE FUNCTIONS:
Operating functions of human resource management involve employment,
human resource development, compensation, and human relations.
Employment: It is the first operative function of Human ResourcesManagement. Employment is concerned with securing and employing the
people possessing the required kind and level of Human Resources necessary
to achieve the organizational objectives .
Human Resource Development : It is a process of improving, mounding andchanging the skills, knowledge, creative ability, aptitude, values andcommitment etc, based on present and future job and organizationalrequirements. This is an activity of very great importance and will continue to
grow because of the changes in technology, the realignment of the jobs andincreasing complexity of managerial task.
Compensation: It is one of the most important functions of personnelmanagement. It is the process of providing adequate, equitable and fair remuneration to the employees. This function is defined as the adequate andequitable remuneration of personnel for their contributions to organizationalobjectives.
Human Relations: The maintenance and promotion of harmoniousrelations between employees is a function of personnel of HR department. Itrelates to establishing harmonious relations between individuals, groups,unions and management.
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INTRODUCTION OF PERFORMANCE MANAGEMENT:
Performance management system is to build a culture of performance by
aligning individual and organizational objectives and encouraging open
communication and continuous feedback. Performance management is a method by
which the performance of an employee is measured (generally in terms of quality,
quantity, cost and time). Performance is always measured in terms of results and not
efforts. Performance management is a method of evaluating the behavior of
employees in the work spot normally including both the quantitative and qualitativeaspects of jobs performance. It indicates show well an individual is fulfilling the job
demand. Performance appraisal is a part of career development. Performance
appraisal is a regular review of employee performance with in organizations the focus
of the performance management for executives to appraise then on different
components of managerial responsibilities, consisting of performance, managerial
competencies, values and potential.
Generally, the aims of a scheme are to give feedback on performance to
employees, identify employees training needs, document criteria used to allocate
organizational rewards, form a basis for personnel decisions-salary (merit) increases,
disciplinary actions, etc., provide the opportunity for organizational diagnosis and
development, and facilitate communication between employee and administrator.
Every executive will have a set of key performance area to be identified through
discussion and achieve them during the performance period. The system is to develop
the competencies by involving and executive in setting targets and identifying key
performance areas.
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WHAT IS PERFORMANCE?
Performance means outcomes achieve (or) accomplishment at work.
Performance is going to be measured when the contribution of individual (or) team is
at strategic goals of organization like clear image, economical value of the firm and
partners satisfaction etc., of the firm should satisfied.
Performance is behavior that should be distinguished from outcomes.
-CAMPBLE
Performance is a comprehensive version of both behaviors and results.
-BRUMBACH
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NEED OF THE STUDY
The study on performance appraisal is needed in order to:
1. Provide information about the performance tanks basing on which decision
regarding salary fixation, conformation, promotion transfer, and demotions are
taken.
2. Provide feedback information about the level of achievement and behavior of
sub-ordinate.
3. Determine Training and Developmental needs & evaluation techniques by
identifying the areas of weaknesses
4. Provide information, which helps to council the sub-ordinates.
5. Prevent grievance and in disciplinary action.
6. It is helpful in motivating employees to give a better workforce.
7. To promote effective communication with in organization through the
interchange of Dialogue between supervisor & subordinate.
8. It need for program assessment in organization.
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OBJECTIVE S OF THE STUDY
1. To do a comprehensive study on performance Appraisal System.
2. To study the design of performance Appraisal System existing in the
organization.
3. To measure the satisfaction level of existing Performance Appraisal System
of the organization.
4. To help the superiors to have a proper understanding about the sub-ordinates.
5. To know the growth and development of employees through Training and
Development programs.
6. To help in creating a desirable culture & tradition in the organization.
7. To improve organizational development by identifying people with promotion
potential & pinpointing development needs.
8. To provide inputs to system of rewards (comprising salary, increments,
transfers, promotions, demotions or terminations) and salary administration.
9. To generate adequate feedback & guidance from the immediate superior to an
employee working under him.
10. To help the employee to overcome his weaknesses & improve his strengths so
as to enable him to achieve the desired performance.
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SCOPE OF THE STUDY
The study is confined to performance appraisal function of the activities of the
organization and does not cover any other aspect of Human Resource Management.
Further the study is restricted to the respondents of maha Cements and not any other
organizations. The focus of the study was to understand the existing performance
appraisal system with an eye on the lacunae, which might have crewed in to the
system and also the drawbacks of the system.
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RESEARCH METHODOLOGY
SOURCES OF DATA:
Required data for analysis will be collected through
Primary data
Secondary data
Primary data: -
Information that is collected directly from employees or any person
is known as primary data, it is otherwise called as first information. It is
collected through questionnaires and interviews.
Secondary data: -
Information that is gathered from books, companys previous records,
magazines are known as secondary data.
This study is based mainly of primary data. The main sources of primary data
are employees of Maha cement
The secondary data is gathered from the status reports, records and personnel
manual of MAHA CEMENT, JUPALLY, HYDERBAD.
SAMPLE SIZE:
60 Employees(including executives and non-executives) from various
departments like PERSONNEL & ADMINISTRATIVE, FINANCE, ACCOUNTS,
MATERIALS & MANAGEMENT, TECHNICAL SERVICE, PLANT
OPERATORS etc were chosen randomly for this study.
PERIOD OF THE STUDY:
The data gathered for analysis belongs to the period of 45 days.
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TOOLS FOR DATA COLLECTION:
Tools used for data collection were as follows:
Unstructured discussion Structured discussion
UNSTRUCTURED QUESTIONNAIRE:
Under this method of data collection the respondent personally come in
contact with the respondents from whom the information is to be gathered certain
crucial elements are also be discussed. The person who wants the information raises
the concerned topic and should allow the other persons to freely express his views andopinions of the respondents are more clear and true.
STRUCTURED QUESTIONNAIRE:
It is usually associated with the self-administered tolls with items of the closed
or fixed alternative type. The respondents feel great confidence in the anonymity of
questionnaire then in that of any interview. It place less pressure on the subject of
immediate response. There were the reasons for choosing questionnaire as one of the
tools for data collection. The investigator framed questionnaire including 19
questionnaires other than respondents details.
The questionnaire consists of three types of questions:
1 Multiple Choice
2 Dichotomy Questions
3 Open-ended Questions
The multiple-choice questions offer the respondents with a choice of specific answers.
While a dichotomous questions offers two choices YES OR NO. An
open-ended question is accurate with space provided for the responses. Different areas
that were proposed with questionnaire were namely personal information, promotion
policy, interpersonal lationship, job satisfaction and other related areas.
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CHAPTERSATION OF THE REPORT:
The report was presented in 5 chapters.
Chapter-I : Deals with Introduction about the topic.
Chapter-II: Deals with various aspects of the organization profile adopted.
Chapter-III: Deals with Theoretical Concepts
Chapter-IV: Absolutely deals with profile of the respondents Data Interpretation or
Data collected through questionnaire through performance management
system.
Chapter-V: Clearly gives the suggestions, conclusions and feedback on the entire
report.
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LIMITATIONS OF THE STUDY
The following limitations are considered:
1. The study brings the general opinion of the employees but it will not reflect
the exact opinion of all
2. As the study will be conducted in MAHA CEMENT, in HR division it
indicates the perception of the employees in that division only.
3. The study restricts up to 60 samples. It will not consider all the employees inthe organization.
4. The study focuses on the attitudes and perceptions of employees only; it will
not cover the financial of the employees.
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INDUSTRY PROFILE
In India the manufacture of cement was started in Tamilnadu as in 1904. Since
the India cement Industry process. The output of the major and mini cement plants
has increased form 57.96 million tones in 1993-94. It has been raised to 68 milliontones in 1995-1996.In 1996-97 the output has increased to73.98 million tones.
India is the fifth largest cement producer after china, Russia, Japan and U.S.A.
with turn over of more than 57 companies with 115 plants. The cement industries in
India is poised to state new height Thanks to the liberalization policy of the
Government adoption of state of the art technology and the massive investment of
Rs. 100 billions by the year 200A.D. Capacity of this industry is likely to reach the
impressive level of 100 million tones.
India is presently producing several varieties of cement.
These include the ordinary Portland cement (OPC),Poland pozzolana cement,
oil well cemented white cement. India is also producing high strength cement like
grade 43 and grade 53
When coming to the consumption of cement is only 25 Kgs has against 380
Kgs in Swede. 730 Kgs in Japan and 366 Kgs in Britain. It is however hoped that with
increase in the construction activity in the country, the percapita of cement will
increase in future.
HISTORY OF THE CEMENT INDUSTRY:
The cement industry occupies a position of predominance not only as on of the
basic infrastructure for development but also it is the eighty largest in the world which
directly employees about one million persons.
The first cement factory was established around in the year 1890 in Canada,
Portland and Australia. While it was found in 1884 in New Zealand. However in India
it came to established during the beginning of the twentieth century. Today, Portland
cement is an essential commodity on which our modern standards of living is greatly
dependent Building, water supply projects, dams, bridges, roads, Hydroelectric power
projects, seaports, Airports, irrigation schemes etc., all dement cement.
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Cement is manufactured either by wet process or by dry process or semi-dry
process. Wet process remained popular for many years with the modern development
of the techniques of dry mixing of powered material using compressed air, the dry
process gained momentum. Now a day in the most of the plants cement is being
manufactured by dry process.
The basic raw material for manufacturing cement is limestone, which is
available in plenty in the form pf limestone deposits in nature. Limestone is excavated
from mines by mechanical equipments with the help staker and reclaimed the correct
blending of limestone is ensured. The same is processed through crushers to bring it
opt the required size.
The raw material consisting of limestone, iron ore, and Bauxite or Laterite in
the correct proportions are fed into a grinding mill where they are reduced to a very
fine powder. It further, blends and corrected for the right composition and mixed by
means of compressed air. The powder from the storage sides is fed in to rotary klin
through preheated cyclones in he rotary kiln; the material is subjected to a
temperature of about 1500c chemical reaction takes place between the various
materials resulting in the formation of cement compounds.
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COMPANY PROFILE
My Home Industries Limited (company ) is a public limited company
originally incorporated with the name of Devi Cement Limited under companies
act,1956 under the jurisdiction of registrar of companies,Andhra Pradesh , on 5 th
September,1984 having registration no 01-4951,with the object of manufacturing and
dealing in the cement and cement projects.
In the year 1998, My Home Group of companies having a good image in the
corporate world with Dr. J. Rameswara Rao, as its chief promoter acquired the
company. Consequently to the change in the management, the name of the company
was changed to My Home Cement Industries Limited and since then there was
substantial enhancement in the growth of the company.
Its first cement plant (unit-1 dry process plant) was set up in the year 1997-
1998 with an installed capacity of 1.98 lakh tones per annem at Mellacheruvu Village,
Nalogonda District. In the state of Andhra Pradesh at a cost of Rs.78 crores.the said
capacity was expanded to .95 lakh tones per annum in the year 2000 with further
invested Rs 35 crores.
The companys product is manufactured and marked under the brand MAHACement. It comes in the premium category and the company had established very
good market for its brand i.e., MAHA in the states of Andhra Pradesh, Karnataka,
Tamil Nadu and Orissa. It is recognized that the brand MAHA Cement has been
accepted and gained reputation like other Cement brands in India. Having
successfully established its brand MAHA Cement and considering the increasing
demand for cement, the company enhances its operations by setting up of unit-2
process plant with the capacity to manufacture cement of 6.60 lakhs tones P.A in theyear 2002 with a project cost of Rs 110 crores. As per the state government policies
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existing in 2000 company availed huge benefits of sales tax incentives for setting up
unit-2, Since both the units were capable of producing higher capacity, they registered
capacity of both the units were enhanced to 15.60 lakhs tones p.a. In few years it
achieved optimum capacity utilization.
For the financial year 2004-05, the company had achieved turnover of Rs
277.77 crores on sale of 13.78 tones of cement.
For the financial year 2005-06 the company achieved the sales of 16.13 mt and
also the sales (Rs. In crores) i.e. 351 and the as the year 2010-2011its production has
been reached to 17.19mt (lakhs) and turnover is reached to 502crores of cement.
Due to recession in the cement Industry in the year 1998, the management
considering the highly profitable opportunities, vast experience of the promoter in the
field of constriction and Infrastructure, intended to carry out them and company
started venturing in to the said fields by including those objects clause of the
Memorandum of the association of the company. With a view to diversify the
companys activities into other fields and explore the emerging opportunities in the
fields of ceramics, textiles, power, bulk drugs and pharmaceutical, the companys
main objective were changed and subsequently the name of the company was changed
to My Home Industries Limited.
ORDINARY BUSINESS
1. To receive consider and adopt the audited profit and loss account for the
financial year ended 31thMarch,2007 and the Balance Sheet as on that date
and the reports of the directors and Auditors thereon.
2. To ratify the payment of interim dividend (15%) and to declare final dividend
on equity shares for the year ended 31thMarch 2007.
3. To appoint a director in place of Shri B .Kamalaker Rao who retires by
rotation and being eligible offers himself for re-appointed.
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4. To appoint a director in place of Shri J. Jagapathi Rao, who retires by rotation
and being eligible, offers him for re-appointment.
5. To appoint Auditors and fix their remuneration.
Board of Directors
DR RAMESWAR RAO J CHAIRMAN AND MANAGING DIRECTOR
SHRI S SAMBASIVA RAO DIRECTOR
(FINANCE&COMMERICAL)
SHRI V S NARANG DIRECTOR (TECHNICAL)SHRI K V KESAVA RAO DIRECTOR
SHRI B KAMALAKER RAO, M.L.C. DIRECTOR
SHRI N RAGHUNATH DIRECTOR
SHRI J JAGAPATHI RAO DIRECTOR
SHRI D R JAWAHAR DIRECTOR (IDBI NOMINEE)
SHRI B.MURALIDHARA RAO COMPANY SECRETARY
SALIENT FEATURES:
1. To produce, manufacture, refine, prepare, import, purchase, sell and generally
to deal in all kinds of Portland poozzolona cement, Portland slag cement,
Portland rapid hardening cement, white and colure cement etc.
2. To produce lime stone, carbonate, carbide gypsum kancar and/ or by products
allied chemicals there of and in connection there with to erect,
construct,establish,operate and maintain cement factories, quarries,
workshops and other works.
3. To carry on any business relating to manufacturing, fabrication and sale of
various machineries and there components, spares fur the cement industry.
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4. To construct, execute, undertake, carryout, run, establish, acquire, maintain,
remodel, alter, develop, control, manage, take on lease purchase (or) acquire
under any other terms and conditions.
5. To manufacture, designs, polish, cut, process, import, export, purchase, sell
market and deal in all types/sizes of ceramic wall tiles, sanitary wares and
decorative boarder tiles for interiors and exterior, table top products, table
ware, dinner war etc.
6. To construct, establish, operate, maintain, manage, power stations, boiler
houses, steam turbines, diesel generators, switch yards etc.
7. To carry on the manufacture of cotton, silk, woolen and synthetic textiles and
textile goods and to establish spinning mills, power looms, and hand looms.
8. To carry on the business of buyers, sellers, dealers, indenting agents, importers
and exporters whether in wholesale (or) retail of cotton, silk, artifical silk etc.
DIVIDEND:
Directors are recommended a final dividend of 10%for the year 2010-2011 in
addition to the interim dividend of 15% paid during the year. The dividend will
absorb a sum of Rs. 14.68 crores (previous year Rs. 5.81 crocres) including dividend
tax.
Setting Up Of Unit-III
Unit-III has commenced commercial production with effect from 28 th March,
2007. With the commission of Unit-III the installed capacity of the company has
increased from 15, 60,000 MTs to 27, 60,000 MTs.
Captive Power Plant
In the year under review, the 15 MW captive Power Plant (CPP) thatcommenced generation of power on 24.03.2006 has stabilized its operations and
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generated 1000 lakh units. As the cost of generations is only Rs. 2.22 paisa per unit of
power, the company derives very good financial advantage.
Grinding UnitThe company wants to setup one grinding unit near Visakhapatnam with
capacity to manufacture 1.2 Million M.T. of slag cement by utilizing the slag
available at Visakhapatnam Steel Plant. We are in the process of estimating the cost
of project and the necessary financial tie up will be made in the due course of time.
Future Prospects
The Indian cement industry is experiencing a boom driven by soaring housing
sector and increased activity in infrastructure development. The cement industry
witnessed a significant growth of 11.3% during 2006 against 9.4% during 2005.
During the year, most cement companies operated at high capacity utilization levels to
meet increasing demand. While the pricing environment was favorable during the
year, there were significant increases in costs particularly in energy and
transportation.
The government of India has given highest priority for development of infrastructure like housing, real estate, roads, railways, ports and airports. In addition,
the Government of Andhra Pradesh has taken up construction of large and medium
irrigation projects during the next two years. As the irrigation projects require huge
quantities of cement, the demand for cement will go up rapidly. In view of this, it is
expected that the demand for cement will grow @10% p.a to 12% in the coming
years. With rapidly growing housing, infrastructure and special Economic Zones
(SEZs), the cement industry is expected to record excellent growth in the near future.
Capital Expenditure
During the year 2006-07, the company has incurred capital expenditure of Rs.
273.77 crores and capital work-in-progress of Rs. 7.40 crores.
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Shifting of Registered Office
The registered office of the company has been shifted from IV Floor My
Home Jupally, Ameerpet Road, Greenlands, and Hyderabad-500016 to own
premises at 9th
Floor, Block-3, My Home Hub, Madhapur, and Hyderabad-500081with effect from 29.06.2007.
ISO 9001:2000 Certification
During the year 2006-07 your company has obtained ISO 9001:2000
certification on 18 th july 2006 by AQA International, LLC a leading international
certification company.
Sales of Shares held in My Home Power Ltd. (Subsidiary Company)
As your company has established its own captive power plant at
Mellacheruvu, (Village & Mandal), Nalgonda District, Andhra Pradesh, it has sold
54,99,000 equity shares of Rs. 10/- each held in My Home Power Limited (subsidiary
company) @ Rs.11.25/- per share to the promoters and associates of promoters of the
company and the sale amount was utilized for the new Project-Unit-III.
Error: Reference source not found PERFORMANCE MANAGEMENT
Performance appraisal is an evaluation of employees of current and past
performance relative to his / her performance standards. Managers have recognized
the importance of performance appraisal in the organizations after selecting. Training
& Developing the employees it is also necessary to appraise & reward them it is more
serious issue in today organizations and they felt it as a continuous process which in
term called as performance management.
Performance Management is a continuous process that consolidates goal
setting, performance appraisal & development into a single common system, the aim
of which is to ensure that the employees performance is supportive the companies
strategic aims.
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Why performance Management:-
1. It reflects on TQM concepts.
2. It reflects on the vast use of Traditional PAs that are productive.3. Every employees efforts focus on companies strategic goals.
4. It improves the employees efforts with the approach of continuous guiding,
developing and appraising employees performance.
5. Continuous improvement is achieved through or by avoiding the following.
5.1 Wastes of over production
5.2 Defective products
5.3 Unnecessary down times
5.4 Unnecessary Transportation
5.5 Processing cost
5.6 Unnecessary inventory
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IDENTIFICATION OF KEY PERFORMANCE AREAS:
Every job has a set of functions to be performed by its holders. In manual jobs
generally these are clear and specific. As one goes up in the organizational hierarchy,for supervisory and managerial jobs, the activities and functions become complex and
many keep on changing priority from time to time. For example, a marketing
manager may need to focus more on market surveys during a certain period, on
training his salesmen in another period and may have to spend his time mostly on
promotional activities during another time. In view of these changing priorities and
complexity it is necessary to identify, review, recapitulate and reflect upon the keep
functions periodically. Researchers across the world in the past have demonstrated theexistence of role ambiguity in several jobs leading to poor performance. Hence
periodic joint discussions may enable employee to become clearer about his important
functions. This helps also in subsequent appraisal of performance on these functions.
In the confidential form of appraisal the employee never gets to know if he is being
rated low on some functions for which he is giving less importance.
In addition the identification of KPAs, it is useful to set targets for the period
of appraisal. These targets should deal with the tasks expected to be accomplished by
the executive under each KPA during the period that will be reviewed later. Such
target setting helps the appraise to be clear of the expectations and also provides an
opportunity for his to ask for the assistance required from his boss in order to
accomplish whatever was set for him. The target setting should be done through a
process of mutual consultations and discussions. This it self may become an educative
process in terms of understanding each other. A trusting climate should be
established. It is not fair to assess the performance of any employee on tasks and
targets that have not been made clear him and that do not take into consideration his
own difficulties and capabilities.
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PERFORMANCE MANAGEMENT SYSTEM (PMS):
To build a culture of performance by aligning individual and organizationalobjectives and encouraging open communication and continuous feedback.
APPLICABILITY:
1 PMS is applicable to all executives of MAHA CEMENT (E1-E9)
2 Executives who join MAHA CEMENT on deputation or those retaining lien
while in service of MAHA CEMENT are also covered by this scheme.3 Executives who join in the middle of the PMS cycle (see next section), but
have served for a minimum period of three months.
4 MAHA CEMENT executives who are on second ment or are lent on service to
subsidiaries and joint ventures with MAHA CEMENT management.
5 Parameters for performance measurement are pre-defined.
6 Objectives are prioritized.
7 Individual performance is enhanced by clear definition of deliverables.8 Role of individuals is clarified within overall organizational context.
SET KPAs: KEY PERFORMANCE AREA
1 KPA setting for all executives in consultation with the reporting officer.
2 KPAs to be set by referring to the KPA Directory and taking inputs from the
MOU targets, functional plans, individual responsibilities and cascading of KPAs from the top.
3 The KPAs, once finalized, to be signed off by the reporting officer and the
executive.
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IDENTIFY COMPETENCIES:
1 Functional competencies for the executive to be identified and written in the
PMS form by referring to the Competency Directory.2 Managerial competencies to be identified from the prescribed set on the PMS
form.
3 Competencies to be signed off by the reporting officer and the executive.
MID-YEAR REVIEW:
1 Performance management is not an event but an ongoing process.2 Helps in objective annual evaluation.
3 Provides early warnings of non-performance, avoids year end surprises.
4 Opportunity to revisit KPAs, change weightages or measures.
5 Reinforces good performance in time.
6 Provides an opportunity for executive to express his thoughts on progress
made and roadblocks encountered.
PROCESS STEPS:
1 Self appraisal to be completed
2 Discussion on KPAs Competencies, Potential and Values to be conducted
3 Reporting officer to document discussion
4 Reporting officer and executives to discuss changes in KPAs, if necessary
5 All KPAs to be re-filled in the form if any changes made in either KPAs,
weightages or targets
6 Justification for change to be documented
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A GUIDELINE FOR CHANGING KPAS IN THE MID
YEAR:
1 Change in roles and responsibilities of executive
2 Changes in organizational goals
3 Unanticipated projects
4 Abandonment of project as per corporate directive
5 Situations beyond control of the executive such as accident or emergency
situations.
ANNUAL ASSESSMENT:
1 Formal process to ensure performance is assessed annually.
2 Opportunity for reviewing officer to offset rating biases.
3 Provides inputs for other HR systems:
Rewards and Incentives
Career Development
Training and Development
PROCESS STEPS FOR REPORTING OFFICER AND
EXECUTIVES:
1 Evaluate performance against KPAs by comparing actual performance to
targets set
2 Evaluate.
3 Functional / technical competencies (chosen at the beginning of the year).
4 Managerial competencies (3 mandatory and 3 optional).
5 Values.
6 Potential
7 Complete section on Special Achievements.
8 Transfer scores from all sections to the section on Total Marks for
consolidation.
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9 Complete Individual Training and Development Plan.
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PROCESS STEPS FOR REVIEWING OFFICER:
1 Review the marks given for each section by the reporting officer check for
overrating or underrating.2 Hold discussion with reporting officer in case changes in scores are required.
3 Rationale for changes in scores must be documented on PMS form.
4 Reviewing officer and reporting officer sign-off on the PMS form.
PMS Linkage with Other HR systems:
Performance Management has much wider implications than purely improving
individual performance in the given year. PMS provides the basis for achieving anumber of fundamental aims of HR strategy for the organization as mentioned below.
Linkage with Training and Development system:
1 PMS lays strong emphasis on continuous learning and development. The two-
way communication between reporting officer and executive creates an
environment of trust and self-learning.
2 PMS is the basis for the organization to maintain data on an individuals skill
gaps, take necessary action to meet the training needs, use it for foreign
training / assignments and company sponsorship of long-term educational
programs etc.
3 PMS would also provide the means to determine the collective level of
competencies and strengths available within the organization as well as gapsfor planning for organizational development initiatives.
4 Learning and development initiatives fundamentally rest with the individual
with the organization facilitating the same through creating a learning
environment and providing suitable opportunities etc. The executive would be
responsible for making use of the same to the maximum extent possible.
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Linkage with Rewards System:
PMS is a tool for rewarding successes / achievements and contribution of
individuals to motivate them to continuously strive for excellence in their respectiveresponsibilities.
1 It would provide inputs to the organizations Rewards programmes.
2 PMS results will be used to identify high performers for the purpose of
rewards and recognition.
3 Additionally, it would be used to aid counseling for improving performance
and dealing with consistent non-performance.
4. The detailed processes and systems are outlined in the Rewards Policy.
Linkage with Career Development System:
1 PMS results of the executives would be used as one of the inputs in the Career
Development System. It would provide inputs for assessing an individuals
readiness for higher responsibility and career advancement.
2 PMS input would also help in decisions relating to job rotation and placement
in special assignments commensurate with demonstrated potential. The
detailed processes and systems relating to this are outlined in the Career
Development.
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ROLES AND RESPONSIBILITIES:
Role of Executives:
1 The executive shall fill out appropriate portions of the form, attend the PMS
meetings at all stages (performance planning, mid-year review and annual
assessment) and be prepared to have an open and frank discussion about his /
her performance.
2 The PMS aims at creating amity and convergence of individual and
organizational goals and it should be taken in that spirit.
3 The executive is required to show the necessary flexibility and adaptability to
the organizational needs and display system discipline through adherence to
all PMS requirements.
Role of Reporting Officer:
1 The reporting officer shall cascade the KPAs based on MOU targets to the
executives reporting to him in a fair and achievable manner with necessary
stretch for individual excellence.
2 The reporting officer should set up performance planning, mid-year review
and annual assessment meetings with all the executives reporting to him
within the specified periods as per the PMS calendar.
3 The reporting officer shall maintain a brief log of all critical incidents
occurring within his scope of work as an aid to memory while completing the
mid year review, annual assessment and giving feedback to the executive.
4 The reporting officer shall carry out the PMS scoring of all executives
reporting to him in an objective manner and such that the scores are
distributed in a manner requiring minimum adjustment and / or normalization
by either the reviewing officer or the Performance Management Committee.
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Role of Reviewing Officer:
1 The reviewing officer shall go through PMS forms for all executives under his
preview and ensure that the reporting officer has been objective and unbiasedin his scoring of various executives, particularly with respect to the sections
relating to Competencies, Values and Potential.
2 Where required, the reviewing officer may recommend some changes to the
scores after carrying out a detailed discussion with the respective reporting
officer.
3 The reviewing officer shall also carry out an integrity check to ensure that the
scores awarded to all the executives under his / her purview are distributed in a
manner requiring minimum normalization by the Performance Management
Committee.
4 Where an executive has a grievance against the reporting officer regarding the
PMS process, the reviewing officer shall intervene and settle the grievance in
a fair and objective manner.
5 The reviewing officer shall also be responsible for ensuring stretch targets
for executives under his charge.
6 The Reviewing Officer shall cascade the KPAs in an open and transparent
manner with each reporting officer by sharing his KPAs and targets.
Role of PMS Officer:
1 A PMS Officer would be designated for each location (plant / project / region /
corporate).
2 The PMS Officer would be responsible for implementing PMS as well as for
periodic administration, follow-up, tracking and analysis of PMS activities as
per schedule in his / her respective location.
3 To ensure collection, collation and forwarding the Individual Development
Needs forms to the concerned EDC / Regional HRD / PMI.
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PMS CYCLE:
Performance assessment years have been set up as follows:
For E6 and above: The performance assessment year commences from 1 st
April of each year and continues until 31 st March of the following year.
For E1-E5: The performance assessment year commences from 1 st January of
each year and continues until 31 st December of the same year.
Communication and Feedback of Scores :
After the process of normalization of the scores is completed, the Performance
Management Committee hands over all the PMS forms to the respective HR
department.
1. HR then consolidates final scores, relative rankings and the feedback from the
Performance Management Committee for all executives.
2. HR prepares a summary sheet of scores, relative ranking and feedback from
Performance Management Committee for the executives under each reporting
officer along with the individual Feedback forms, duly filled (see Annexure
for format) and sends the same to the reporting officers.
3. The concerned reporting officer signs off the individual feedback forms as per the summary sheet provided by HR and hands over the same to the executives
in order to communicate the final score, relative ranking and the feedback.
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Administration of PMS:
1. Executive Directors and General Managers will facilitate implementation of
PMS by monitoring progress, removing any difficulties or roadblocks and
ensuring completion of assessments and submission to HR as per the dates provided in the PMS calendar for their respective Units / Departments /
Regions.
2. The concerned business unit head / functional head should cascade his KPAs
to the executives reporting to him based on MOU targets for that year with
suitable stretch targets to ensure organizational excellence. This process may
be finalized in an SMC meeting / departmental or group heads meetings as the
case may be, which is to be held in the second half of March of each
assessment year.
3. The primary responsibility for filling up the PMS form and setting the process
in motion rests jointly with the reporting officer and the executive as per the
time frame provided.
4. Any difficulty or difference that may rise between the reporting officer and the
executive in the process of implementation of the system would be sorted out
through the intervention of the Reviewing Officer. If the executive is still not
satisfied with the decision of the reviewing officer, especially in the case of
annual assessment and / or the final score awarded by the PMC, then the
concerned executive may place his case before the next higher authority above
the PMC. In the case of E1-E5 level executives, since the PMC includes the
GM of the plant, the final authority to settle the issue will rest with the ED,
Region. Similarly for executives where normalization is being done at the
level of ED, Region, the executive may approach the concerned functional
Director and where the PMC consists of functional Directors, the final
authority to settle the grievance will rest with the CMD.
5. If any executive does not participate in the PMS process (setting up KPAs
attending mid-year review or annual assessment meetings, filling relevant
sections of the form etc. on time) despite being given ample opportunity to do
so, the reporting officer has the authority to complete the form in the absence
of the executive and forward the same to the Reviewing Officer indicating the
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non-participation of the executive. The Reviewing Officer may offer an
opportunity to the executive to be heard. Having verified that indeed the
executive has voluntarily decided not to participate in the process despite
being given sufficient opportunity, the Reviewing Officer forwards the form to
HR, duly completed and with his approval of the process followed under the
circumstances.
6. In the event of the creation of a new role or department, the concerned HR
department will develop KPAs and Functional Competencies for that
particular role / department in consultation with the respective head of
department. Also, if for an existing role, new competencies / KPAs are
required to be added, the concerned HR department would compile the same
in consultation with the respective head of department. Such new roles or
competencies defined should be validated with Corporate HRD.
7. The key for the HR department in the PMS administration is to:
Issue PMS forms as per the PMS calendar
Collect forms as per schedule
Monitor adherence to dates
Highlight non-compliance / exceptions to top management
Send copy of Individual Training and Development Plan to concerned HRD /
EDC / PMI
Convene Performance Management Committee meetings
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1. The appraisal system in the organization -
S. No. Options No. of Respondents % of respondents1 Very good 8 13.332 Good 29 48.333 Satisfactory 13 21.674 Average 10 16.67
Total 60 100
Interpretation:
The above graphs shows that out of 60 employees 48.33.% respondents are
saying that the appraisal system in the organization is good and 21.67% respondents
saying satisfactory, 16.67% members saying average and 13.33% respondents saying
the appraisal system is very good.
2. Rewards, remunerations and others systems for employee
motivation -
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S.No. Options No. of Respondents % of respondents1 Very good 12 202 Good 24 403 Satisfactory 11 18.334 Average 13 21.67
Total 60 100
Interpretation:
From the above diagram we can interpret that out of 60 employees 40% of
respondents saying that rewards, remunerations and systems are good to motivate
employees.
3. The management performance and feedback system in the
organization -
S.No. Options No. of Respondents % of respondents
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1 Very good 7 11.672 Good 18 303 Satisfactory 22 36.664 Average 13 21.67
Total 60 100
Interpretation:The above diagram shows that out of 60 employees 36.66% of the respondents
are saying that management performance and feedback system in the organization is
satisfactory and 30% respondents are saying that it is good.
4. Is the performance management system helpful in achieving
objectives or goals of organization?
S.No. Options No. of Respondents % of respondents1 Strongly agree 6 102 Agree 37 61.66
3 Neither agree nor disagree 9 154 Disagree 8 13.34
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Total 60 100
Interpretation:
The above diagram shows that out of 60 employees 61.66% of the respondents
are agreeing that the performance management system is helpful in achieving
objectives (or) goals of the organization.
5. Is the performance management system an important activity of
the staffing?
S.No. Options No. of Respondents % of respondents1 Strongly agree 7 112 Agree 30 50
3 Neither agree nor disagree 10 234 Disagree 10 16
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Total 57 100
Interpretation:
The above diagram shows that out of 60 employees 50% of the respondents
are agreeing that performance management system is an important activity of thestaffing.
6.Are you satisfied with the role given to you as manager?
S.No. Options No. of Respondents % of respondents1 Strongly agree 6 102 Agree 34 563 Neither agree nor disagree 7 114 Disagree 8 23
Total 55 100
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Interpretation:
The above diagram shows that out of 60 employees 56% of the respondents are
saying that role given to them is satisfied as manage and manager.
7. Is the performance management system giving the confident /
accurate information about the rating?
S.No. Options No. of
Respondents
% of
respondents1 Strongly agree 11 18.972 Agree 25 43.103 Neither agree nor disagree 13 22.414 Disagree 9 15.52
Total 58 100
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Interpretation:
The above diagram shows that out of 60 employees 43% of the respondents
are agreeing that performance management system is giving the confident (or)
accurate information about the rating.
8. Is the performance management system creating a competitive
environment at work place?
S.No. Options No. of Respondents
% of respondents
1 Strongly agree 10 16.662 Agree 31 51.673 Neither agree nor disagree 7 11.674 Disagree 12 20
Total 60 100
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Interpretation:
The above diagram shows that out of 60 employees 51% of the respondents
are agreeing the performance management system creating a competitive environment
at work place.
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9. How is the spirit of co-operation among all the levels of the
organization?
S.No. Options No. of Respondents % of respondents
1 Satisfactory 25 41.66
2 Neutral 23 38.343 Not satisfactory 12 20
Total 60 100
Interpretation:
The above diagram shows that out of 60 employees 41.66% of therespondents are satisfactory about their spirit of cooperation among all the levels of
the organization.
10.Which principle do you prefer for promotion, increment or
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incentives?
S.No. Options No. of Respondents % of
respondents1 Merit 13 21.662 Seniority 11 18.343 Merit cum seniority 36 60
Total 60 100
Interpretation:
The above diagram shows that out of 60 employees 60% of the respondents
are saying that merit-cum-seniority is best principle to prefer for promotions
increments and incentives.
11. Does the management give you opportunity to give innovative
ideas on performance?
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S.No. Options No. of Respondents % of
respondents1 Often 12 202 Frequently 30 50
3 Never 18 30Total 60 100
Interpretation:
The above diagram shows that out of 60 employees 50% of the respondents
are saying that management frequently give opportunity to give innovative ideas on
performance.
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12.Are you satisfied with the existing performance management
system?
S.No. Options No. of Respondents % of
respondents1 Satisfactory 18 302 Neutral 22 36.663 Not satisfactory 20 33.34
Total 60 100
Interpretation:
The above diagram shows that out of 60 employees 36.66% of the respondentsare neutrally satisfied with the existing performance management system.
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13.Which of the following performance management system is
suitable for your organization?
S.No. Options No. of
Respondents
% of
respondents1 Performance appraisal 15 252 Potential appraisal 4 6.663 Performance cum Potential
appraisal
25 41.64
4 Team appraisal 8 13.335 None 8 13.33
Total 60 100
Interpretation:
The above diagram shows that out of 60 employees 41.64% of the respondents
are saying that performance-cum-potential appraisal is suitable for the organization.
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14. Whether controlling officer or management discuss with you
before rating?
S.No. Options No. of Respondents % of
respondents1 Yes 27 452 No 33 55
Total 60 100
Interpretation:
From the above diagram controlling officer or management discuss with you before rating
60% respondents are saying yes for performance management system used in
identifying.
15. Is the performance management system used in identifying orimproving standards of employee?
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S.No. Options No. of Respondents % of respondents1 Yes 41 68.342 No 19 31.66
Total 60 100
Interpretation:
From the above diagram we can interpret that out of 60 employees 68.34% of
the respondents are saying yes for performance management system used in
identifying (or) improving standards of employee.
16. Are you satisfied with the feedback and review discussion
methods?
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S.No. Options No. of Respondents % of respondents1 Yes 29 48.342 No 31 51.66
Total 60 100
Interpretation:From the above diagram we can interpret that out of 60 employees 51.66% of the
respondents are saying no for the feedback and review discussion methods.
17.Even under extreme conditions, the superior works safely and
thoughtfully?
S.No. Options No. of Respondents % of respondents
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1 Yes 42 702 No 18 30
Total 60 100
Interpretation:
From the above diagram we can interpret that out of 60 employees 70% of the
respondents are saying yes that even under extreme conditions the superior works
safely and thoughtfully.
18. Does the superior understand the need to activate his employees
not by hectic behavior but by well directed activity?
S.No. Options No. of Respondents % of respondents1 Yes 42 70
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2 No 18 30Total 60 100
Interpretation:
From the above diagram we can interpret that out of 60 employees 70% of therespondents are saying yes for the superior understands the need to activate his
employees not by hectic behavior but by well directed activity.
19. Do the employees feel that they and their work are fairly judged?
S.No. Options No. of Respondents % of respondents1 Yes 29 48.332 No 31 51.67
Total 60 100
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Interpretation:
From the diagram we can interpret that out of 60 employees 51.67% of the
respondents are saying no that their work is fairly judged.
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20. When the top management points outs mistakes and short
comings, does the superior help by suggesting corrections?
S.No. Options No. of Respondents % of respondents1 Yes 32 53.332 No 28 46.67
Total 60 100
Interpretation:
From the above diagram we can interpret that out of 60 employees 53% of the
respondents are saying yes, when the top management points outs mistakes and short
comings the superior helps by suggesting corrections.
CONCLUSIONS
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1. All the executives are aware of modification of Performance Management
system known as performance and competency for excellence.
2. Most of the respondents are clear about the objectives of performance and
competency for excellence.
3. More than half of the executives feel that proper communication is there
between executives and appraisers.
4. 30% of the executives feel that sufficient time is not provided for interaction.
5. Annual assessment is not conducting in a fair manner and ratings are not given
based on actual performance.
6. Timely feedback is not giving to the executives.
7. Still there is an ambiguity in executives about PMS can create an environment
to attain higher level at performance.
8. Performance and competency for excellence ratings are utilized as input to HR
reward system.
9. Reviewing officer is unable to satisfy executives for the marks given to them.
10. It is not at all suitable for MAHA CEMENT, unless the culture of buttering to
bosses is changed.
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FINDINGS
1. Annual assessment are not done through mutual discussions between appraise
and appraisers.
2. Annual assessment is conducted to some extent in fair manner.
3. Implementation of pace sys meets the satisfaction of executives to some
extent.
4. Priorities is uses for promotions, PMS has not role in promotion practically.
5. There are no discussions, interactions between executives and reporting
officer.
6. No proper information is provided regarding any change in Key Performance
Area (KPA) setting.
7. All executives should have same assessment period of a better setting of
KPAs.
8. There is no feedback regularly.
9. Management should be serious in implementing irrespective of any system.
10. Goals are not being set for individuals.
11. Exact measurement are not being followed and required parameters suitably
incorporated in PACE.
12. Self appraisal which was there in previous years having a scope to write
individuals achievement. But in the PACE there is not such facility.
13. Job rotation is not done regularly.
14. No communication is received while the final assessment is done.
15. No counseling is provided to the executives, if the executive does not reach
the target.
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SUGGESTIONS
1. 360 degree appraisal system is recommending by the most of the executives.
2. Implement the performance and competency excellence.
3. Performance management system is implementation schedule is followed to
Some extent.
4. Provide the weight age for the expertise in the performance and competency
excellence program.
5. Responsibility along with required authority only can make the key
performance area setting in proper way.
6. 360 degree feedback will give better way of achieving the objectives.
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QUESTIONNAIRE ON PERFORMANCE APPRAISAL SYSTEM
FOR THE EMPLOYEES OF MAHA CEMENTS
NAME: _____________________________________
DESIGNA TION: _____________________________
DEPARTMENT: _____________________________
AGE:_______________________________________
1. The appraisal system in the organization -
Very good [ ] Good [ ] satisfactory [ ] Average [ ]
2. Rewards, Remunerations and others systems for employee motivation -
Very good [ ] Good [ ] satisfactory [ ] Average [ ]
3. The management performance and feedback system in the organization -
Very good [ ] Good [ ] satisfactory [ ] Average [ ]
4. Is the performance management system helpful in achieving objectives or
goals of Organization?
Strongly Agree [ ] Agree [ ]
Neither agree nor Disagree [ ] Disagree [ ]
5. Is the performance management system is an important activity of the
staffing?
Strongly Agree [ ] Agree [ ] neither agree nor Disagree [ ] Disagree [ ]
6. Are you satisfied with the role given to you as a manager?
Strongly Agree [ ] Agree [ ]
Neither agree nor Disagree [ ] Disagree [ ]
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7. Is the performance management system giving the confident/ accurate
information about the rating?
Strongly Agree [ ] Agree [ ] neither agree nor Disagree [ ] Disagree [ ]
8. Is the performance management system creating a competitive environment
at work place?
Strongly Agree [ ] Agree [ ]
neither Agree nor Disagree [ ] Disagree [ ]
9. How is the spirit of co-operation among all the levels of the organization?
Satisfactory [ ] neutral [ ] Not satisfactory [ ]
10. Which principle do you prefer for promotion, increment or incentives?
Merit [ ] seniority [ ] merit cum seniority [ ]
11. Does the management give you opportunity to give innovative ideas on
performance?
Often [ ] Frequently [ ] Never [ ]
12. Are you satisfied with the existing performance management system?
Satisfactory [ ] Neutral [ ] Not satisfactory [ ]
13. Which of the following performance management system is suitable for
your organization?
Performance appraisal [ ] potential appraisal [ ] Performance cum
potential appraisal [ ] Team appraisal [ ] none [ ]
14. Whether controlling officer or management discuss with you before rating?
Yes [ ] No [ ]
15. Is the performance management system used in identifying or improving
standards of employee?
Yes [ ] No [ ]
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16. Are you satisfied with the feedback and review discussion methods?
Yes [ ] No [ ]
17. Even under extreme conditions, the superior works safely and thoughtfully?
Yes [ ] No [ ]
18. Does the superior understand the need to activate his employees not by
hectic behavior but by well directed activity?
Yes [ ] No [ ]
19. Do the employees feel that they and their work are fairly judged?
Yes [ ] No [ ]
20. When the top management points outs mistakes and short comings, does
the superior help by suggesting corrections?
Yes [ ] No [ ]
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BIBLIOGRAPHY
BOOKS:
1. K. Aswathappa Human Resource & Personnel Management
2. P. Subba rao Essentials of Human Resource Management
And Industrial Relation
3. Chadda Performance Management System
4. T.V Rao Performance management & Appraisal system
5. Micheal Armstrong Performance management
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http://www.myhomegroup.in/cement.html
http://www.myhomeconstructions.com/aboutus.html
http://www.wikipedia.org/
http://www.google.co.in/
Email ID: [email protected]
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