RESEARCH REPORT

ON

AN ANALYSIS OF PERFORMANCE MANAGEMENT SYSTEM

IN
MOSER BAER INDIA LTD.
With special reference to
MOSER BAER INDIA LTD.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

AWARD OF MASTER OF BUSINESS ADMINISTRATION
MAHAMAYA TECHNICAL UNIVERSITY NOIDA.

UNDER THE GUIDANCE OF

SUBMITTED BY

MRS MEENAL PANDEY

SAUMAKSHISETH
MBA-IV SEM.
ROLL- 1109470092

GALGOTIAS INSTITUTE OF
MANANGEMNENT AND TECHNOLOGY
GREATER NOIDA
1

CONTENTS

PAGE NO.

Acknowledgement
1. Introduction
2. Review of literature
3. Objectives of the study
4. Research Methodology
5. Analysis of the Survey
6. Findings
7. Difficulties
8. Limitations
9. Recommendations
10. Bibliography

11.

4
5
30
75
77
81
94
95
96
97
98

Annexure

99

DECLARATION

I Saumakshi Seth hereby declare that the research report entitled is an original and
authentic work being submitted to MAHAMAYA TECHNICAL UNIVERSITY for the

partial fulfillment of the requirement for the degree of the master of business
Administration is my own endeavors and it has not being submitted earlier any Institute /
University for any degree.

PLACE: Greater Noida

SAUMAKSHI SETH
(MBA 4th SEM)

DATE:

ROLL NO: 1109470092

ACKNOWLEDGEMENT

I am deeply thankful to GIMT for permitting me to do research project report and

encouraging me to complete successfully. I would also like to thank my faculty members
for her keen interest, valuable guidance, inspiration, immense zeal for hard work and
positive outlook towards the subject. Their intellect persuasiveness and insistence on a
good work were a guiding light in the darkness of my ignorance.
I would also like to express my sincere thanks to administrative personnel who have
helped me in carrying out my summer training successfully.
Last but not the least I also acknowledge with thanks to Mrs. Meenal Pandey for her
valuable suggestions and I am also indebted to her for making me worth for this work.

INTRODUCTION

HISORY OF THE MOSERBAER INDIA PVT.LTD.

The company was founded in New Delhi in 1983 with a clear vision to operate in
products with high entry barriers, from the technology as well as capital point of view.
Given the fact that high obsolescence usually goes hand in hand with high technology,
the risk and reward equation had to make sense. It started as a Time Recorder unit in
technical collaboration with Maruzen Corporation, Japan and Moser Baer Sumiswald,
Switzerland.
However, it was in 1986 that Moser Baer found its true calling. This was the time when
the data storage fieldthe marvel of creating a memory second only to the human brain
out of some plastic, specialty chemicals and dyes caught the attention of an engineer
with a masters degree in mechanical engineering from the Imperial College, London. So
what if this meant breaking into what was till then the exclusive preserve of Japanese and
Taiwanese manufacturers, questioning the paradigm that no Indian manufacturer could be
competitive in the global space and fighting the image that India was a country that
borrowed technology and did not create it? Such challenges only further inspired Moser
Baer founder and managing director Deepak Puri to take the company to the forefront of
the optical media industry.
Undertaking its first and only diversification into the data storage industry, Moser Baer
initially manufactured 5.25" Floppy Diskettes, graduating to 3.5" Micro Floppy Diskettes
(MFD) in 1993. Today, Moser Baer is the world's fifth-largest manufacturer of MFDs. Its

unique strength in diskette manufacturing comes from products conforming to stringent

international quality standards with a cost-effectiveness that few can match.
In 1999, Moser Baer spread its wings into Recordable Optical Media, setting up a 150million unit capacity plant to manufacture Recordable Compact Disks (CD-Rs) and
Recordable Digital Versatile Disks (DVD-Rs). The strategy for the optical media project
was identical to what had successfully been implemented in the diskette business
creating a facility that matched global standards in terms of size, technology, quality,
product flexibility and process integration. The company is today the only large Indian
manufacturer of magnetic and optical media data storage products, exporting
approximately 90% of its production.
Since inception, Moser Baer has always endeavored to create its space in the international
market, something that very few Indian manufacturers have been able to achieve. Aiding
the company in its efforts has been a carefully-planned and sustainable modellow
costs, high margins, high profits, reinvestment and capacity growth. Along the way, deep
relationships have been forged with leading OEMs, with the result that today there are
hardly any players in the field that Moser Baer is not associated with.

Moser Baer India Ltd., is one of the largest optical media manufacturers in the world,
supplying to over 82 countries across the globe. IT have a large variety of optical discs
(CD-R, CD-RW, DVD+/-R, DVD+/-RW, DVD+R Double Layer, HD-DVD, BDR, BDRE, 8cm CD-R and 8cm DVD-R), and now upcoming with USB data storage. All of which
can be supplied with a surface finish of your choice, be it printed or printable.

COMPANY PROFILE
MOSER BAER INDIA LTD.
Moser Baer is a world leader in the development and manufacture of removable data
storage media. Incorporated in 1983, it is today one of India's leading technology
companies and ranks among the top three optical storage media manufacturers in the
world. Headquartered in New Delhi, India, it has a broad and robust product range of
floppy disks, compact discs (CDs) and digital versatile discs (DVDs).
A pioneer among globalizing Indian firms, Moser Baer has a presence in over 82
countries, serviced through six marketing offices in India, the US and Europe, with strong
tie-ups with all major global technology brands. Simultaneously, with the launch of the
'Moser Baer' label in India, the company has emerged as the preferred choice in this
burgeoning captive market. The result: strong growth, with revenues growing at a fiveyear CAGR of over 42 per cent. No wonder Moser Baer has attracted and retained bestin-class global strategic investors including the International Finance Corporation (IFC),
War burg Pincus Singapore LLC and Electra Partners.
Our continuous emphasis on efficient and integrated manufacturing, coupled with the
India-specific advantage of high-quality and best- value human resources and lower perunit capital cost, has made Moser Baer one of the most successful manufacturers of
optical storage media in the world. By developing in-house resources and technologies,
we have mastered the art of process-intensive high-quality precision manufacturing.

Today, we conform to standards specified by both the American National Standards

Institution (ANSI) and the European Manufacturers Association (ECMA).
Moser Baer has displayed foresight and sharp business acumen in investing in the right
products at the right time. We fuel innovation through our formidable R&D capabilities,
with the company today employing nearly 100 people in R&D. Our efforts are already
reaping benefits: Moser Baer has been one of the first companies in the world to launch
52x CDR and has also received the acclaimed Philips certification for its multi-read 40x
media. We have also tied up with Hewlett-Packard to manufacture optical storage media
using its 'Light scribe' technology.
Going forward, Moser Baer recognize the need to make the most of its strong research,
development and engineering capabilities to deliver even higher value-added products,
while continuing to focus on increasing production efficiencies and yields to extend our
cost leadership globally.

Vision
Touching every life across the globe through high technology products and services.

Mission
We

will

drive

growth

through

our

excellence

in

mass

manufacturing.

We will move up the value chain through rapid development of technology, products and
services.

10

We will leverage our relationships, distribution, cost leadership and "can do" attitude to
become a global market leader in every business.

Value-System

Teamwork
Thinking and working together across functional silos, hierarchies, businesses and
geographies. Cooperating and supporting each other towards common goals.

Integrity
Consistently behaving and taking decisions in an ethical, trustworthy and fair manner in
all spheres of life.

Passion
Missionary zeal coming out of one's heart to drive to the goal which gives one a feeling
of "do it with pride" and "love to be there". A feeling that encourages one to dream &
realize the dreams. Self-commitment to give more than 100% & create value.

Speed
Meeting and exceeding customer's expressed or implied expectations by a "do it" attitude
and by doing right, first time, on time and every time

11

At Moser Baer we believe the long-term success of our business is intertwined with the
success of our customers. As leaders in the area of data storage, we take the responsibility
of providing an innovative and secure depository for your vital information very
seriously. Over the past two decades, as we proactively evolved with the storage media
market from Magnetic Media to Optical Compact Discs and now Digital Video Discs, the
shape and format of what we make may have changed but our pledge to provide 'quality
at best value' has never wavered. This approach has helped us build what is today our
most valuable asset - the trust of our customers and stakeholders.
It is this focus on building relationships responsibly that places us at the forefront of
digital media technology.

Quality
(Quality for us is not a feat - it is a habit.)
At Moser Baer we believe that our consistent ability to deliver quality products has been
our key differentiator. We have instituted a continuous quality improvement culture and a
strong systems driven focus to ensure that the quality of our products consistently meet or
exceed international benchmarks. The company's processes are certified under ISO
9001:2000 Quality Management System Standard, ISO 14001:2004 Environment
Management System Standard and OHSAS 18001:1999 for Occupational Health and
Safety Management System Standard.

12

We define quality as 100% conformance to customer requirement. It's like an attitude

with us, a part of every process. This is because we realize that even one in a million
error prone disc can spell disaster for the user. So, nothing but 'zero defect' manufacturing
is what we target for our products.
Strictly dust free working environments in all of our six state-of-the-art climate controlled
plants, the top of line machinery & equipment and benchmarked processes & practices
assist us in giving quality products consistently. A strong use of statistical techniques and
in-house developed process control methods has enabled defects to approach six sigma
levels.
On average, we invest close to 50 man-hours per year in quality training across all
manufacturing disciplines to create a high quality conscious culture. Our quality strategy
is not control oriented, but preventive in nature thereby enabling us to minimize the cost
of quality while simultaneously achieving one of the lowest defect rates within the
industry.

Excellence
Moser Baer since inception has consistently strengthened its competitiveness by
enhancing capacity at lower incremental expenditure, declining conversion cost,
progressive vertical integration and improving material efficiency. As a result we have
emerged as one of the lowest cost manufacturers of optical media in the world.

13

What makes us who we are? A fierce commitment to quality, a dogged determination to

take the 'Made in India' Label to the world, constant efforts to offer the best to our
customers, our efficiency in manufacturing, our agile change management ability or our
love for innovation?
It is all of the above and much more that helps set Moser Baer apart. We believe it is our
endeavor to outpace change on the basis of the unique result-oriented systems we have in
place.

Efficient Manufacturing: The capabilities of our engineering and

design, production lines, processes and manufacturing facilities allow
us to move quickly from the concept stage to the finished product.

Speed to Market: Using our expertise we develop new technologies

rapidly that's to our decentralized yet cohesive organizational structure
that

makes

it

easy

to

take

decisions.

Strong Research and Engineering Base: Whether it is producing

products with the help of proprietary technologies or developing
products that glove-fit our customers' needs, our R&D provides the
needed backbone.

14

Providing High Quality at Optimal Cost: At any point of time, you

will find several QICR - quality implementation and cost reduction programs running simultaneously across our operations.

Customer Focus: As a supplier we aim to be both flexible and

innovative when it comes to our customers. We integrate and
align ourselves with our customers to understand their requirements
and develop programs that exceed expectations.

Supply Chain and Logistics: We were the first Indian company to

have dedicated export trains, the first to push for a round-the-clock
customs clearance facility at ICDs and one of the few to provide total
logistics solutions to our customers. We have even built our own inhouse software for managing inbound and outbound shipments to help
track

documents

and

containers

instantly.

People Skills: The power of our intellectual capital is reflected in

process efficiencies, reengineered equipment, enhanced productivity,
low manufacturing cost and new product launches amongst others.

Marketing Strategy: Our global marketing offices, subsidiaries and

logistical and distribution centers make it possible for us to react

15

quickly to customer requirements. In India, we launched the Moser

Baer brand of storage media and are now enjoying a 25 per cent
domestic market share in high value branded segments.

Financial Strategy: Our prudent mix of equity, debt and internal

accruals to finance our expansion plans has yielded significant returns
and has helped us achieve a conservative risk to cost ratio.

QUALITY AND EXCELLENCE

At Moser Baer, we have been global in our outlook since our very inception. Each time
we enter a market, it is with a long-term strategic approach, vision and plan. As a result,
along with a strong presence in over 82 countries spread across six continents, we have
built an international reputation for quality and long-lasting relationships with all our
customers, services the requirements of all the leading storage media brands in the world.
Our sincerity and obsession with detail and accuracywhether it be product quality,
documentation, logistics or servicehas helped us forge strong tie-ups with all major
global technology brands. We have today created a global footprint of marketing offices,
subsidiaries and logistical and distribution centers to enable us to quickly react to
customer requirements and provide a local flavor to our marketing efforts. We have in
place multi-lingual and multi-cultural sales teams that enable us to better service
individual customer requirements.

16

In February 2003, Moser Baer entered into a strategic long-term sourcing deal with
Imation Corpone of the largest players in the optical media industry worldwide.
Imation is sourcing a substantial part of its optical media requirement from Moser Baer.
In addition to sourcing media, the companies have entered into a strategic joint venture to
carry out R&D for and market optical storage media products in growth markets.
This venture will focus on customer servicing, long-term technology transfer and joint
R&D.
Imation Corp will significantly enhance Moser Baers global reach and presence by
helping grow its market share in the US, which is one of the largest and relatively more
lucrative markets for optical storage media. Additionally, the JV Company will
effectively and efficiently target new
High-growth markets like Africa, the Middle East and South America, as also address
new market segments.

HR in MBIL
HR Vision
To facilitate development & growth of our people to leverage their fullest potential &
create a spirit of customer intimacy & service excellence for driving rapid business
growth.
HR Goals

17

Improve employee engagement across the organization.

Maintaining industrial harmony.
Recruitment policy and system alignment.
HR IN MOSERBAER INDIA LTD.

HR IN MBIL

Human Resource

Industrial Relations

Training and Development

HUMAN RESOURCE

SUPPORTING

HR HELPDESK

MAIN

RECRUITMENT
& SELECTION

MANPOWER
PLANNING
18

JOINING FORMALITIES

INDUSTRIAL RELATIONS

PERFORMANCE
MANAGEMENT
SYSTEM

PREVENTIVE

CORRECTIVE

WELFARE

DISCIPLINARY

OPEN HOUSE
CHARGE SHEET

MISCONDUCT

TRAINING & DEVELOPMENT

19

IN THE BEGINNING

INDUCTION
ON JOB TRAINING

TRAINING

BEHAVIORAL
TRAINING

UST TRAINING

BUDDY IDENTIFICATION

PERSONNEL

TIME OFFICE

ATTENDANCE/LEAVE RECORD

COMPENSATION

HUMAN RESOURCE IN MBIL

20

The Human resource department of Moser Baer has many tentacles. I will give in brief
about each though I would like to make it clear that Moser Baer India limited Human
resource is broadly divided into Four departments they are Industrial Relations, Training,
HR and Personnel Department .Each department has a different set of functions .

I would like to give a birds eye view on Human Resource department first; it has
recruitment section, Joining Formalities Support team, Performance Management System
team, ERP and Management information team.

Training and Industrial relations are autonomous department as far as Moser Baer is
concerned due to the large human capital working in this organization.

21

SUPPORTING FUNCTIONS OF HR

JOINING FORMALITIES

After the Candidate is selected in the process of Recruitment, there is joining formalities
which takes place in order to have all the details regarding the candidate /employee so he
is verified as well as with the process aware about whatever things are requisite from this
organization point of view, so he gets a ID Card for punching for his/her attendance,
Medi-claim insurance or ESI card as per the employee salary this thing is made, then
various forms need to be filled for gratuity for shareholdings etc and then a MIS is also
maintained for this which is maintained in Microsoft Excel as well as the ERP software .

HR HELPDESK
If employees have any issues, queries and concerns are properly captured, evaluated and
promptly addressed/resolved and feedback is provided on issues not covered under the
prevalent guidelines/policies, Moser Baer have launched HR&ADMN HELPDESK.
HR& ADMIN.. Shall have a dedicated resource at HELPDESK for addressing such
concerns/issues. Each and every query can be raised through intranet and the process

22

owners shall resolve the raised query and communicate to the concerned employee with
the copy marked to the Helpdesk dedicated resource within the predefined timeframe.
And the help-desk dedicated resource shall present MIS & percentage compliance to
defined service level agreement in the plant monthly HR review meeting.

MAIN FUNCTIONS

RECRUITMENT

Recruitment is dynamic and very much required as far as any organization is concerned
and Moser Baer tries to take the best candidates out of the numerous employees
curriculum vitae .The recruitment process of Moser Baer happens by three modes either
from Naukri.Com Resdex, through Walk-in or Through employee referrals but all have to
go through a strict procedure .The recruitment happens at all levels from the Level of
DET to Engineer, Managers, General managers etc. HR executives looked after the
recruitment process. And the department head takes the main interview, HR executives
need to maintain a MIS for the process as the top management is aware regarding the
same.

23

PERFORMANCE MANAGEMENT SYSTEM

This team takes care of the performance appraisal of the employee it is very important as
this is the team which finds whatever training and Appraisals increments and promotion
has to be given to the particular employee it maintains all the database as well as
complete authorization. The entire process is looked after by them .This is important as
people can never be satisfied with their salary as well as the position. Therefore, with
respect to the performance they are promoted or given increment so that they can work in
the present organization with enthusiasm. Even the employees are given production
incentive by which they feel very motivated as their salary keeps on increasing annually.

INDUSTRIAL RELATIONS
This department is very important as it is concerned with the relationship between the
management and the workers and the role of regulatory mechanism in resolving any
industrial dispute.
It involves the following areas:

Role of Management, Government

Machinery of resolution for industrial disputes.

Individual grievance and disciplinary policy and practice.

24

Labor legislation.

Industrial relations training like Know your Policy programmes.

This department has also welfare programmes like in-house sports activities, various
behavioral programmes as well as Open House, which are conducted by HR and IR
together.
The family Visit inside the plant, and various programmes like Long Service Awards
arrangement and organization is taken care by IR and HR together.

TRAINING
This department looks after different types of training happening in Moser Baer India
Limited.
The different types of training involves:Induction Training
Behavioral Training
Buddy Identification
UST Training etc.
There are different types of training that happens in this organization.

25

Behavioral training includes staying ahead Programmes which is done for employees
motivation.

Values and Vision for Moser Baer know how

TRAINING DEPARTMENT
The training department maintains all the requisites which are required whether
stationary or arrangement of an external Trainer to impart Particular Training to the
selected set of employees.
Training department takes care of Training need identification form by which it comes to
know that what training has to be imparted to the particular employee then it makes
arrangement for the particular training by using its trainers whether the trainers required
are internal or external.

As per the Requirement of a particular department the requisite training module is

developed some are online in nature also. It is also going to introduce web-based training
like Knowledge based data for its users, which is regularly updated by a set of employees
in the Training department for all its employee users including.

26

TIME OFFICE
In brief this team looks after the attendance of all the employees working in the plant.
Secondly, it solves all the issues related to the same and also takes care of all the
grievances regarding the leaves applicable to the employees whether it is sick leave or
casual leave.

27

OBJECTIVES OF PERFORMANCE APPRAISAL

To effect promotions based on competence and performance.
To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
To assess the training and development needs of employees.
To decide upon a pay raise where (as in the organized sector) regular pay scales
have not been fixed.
To let the employees know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
To improve communication. Performance appraisal provides a format for dialogue
between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between
the rater and the ratee.
Finally, Performance appraisal can be used to determine whether HR programmes such,
as selection and training and transfers have been effective or not.

28

MULTIPLE PURPOSE OF PERFORMANCE ASSESSMENT

General Applications
Developmental uses

Specific Purpose
Identification of individual needs.
Performing feedback
Determining transfers and job assignments.
Identification of individual strength and

Administrative Uses

developmental needs
Salary, Promotion, retention or termination,
Recognition of individual performance, lay

Organizational Objectives

offs, identification of poor performance.

HR
Planning,
Determining
of
Organizational training needs, Evaluation
of

Organizational

Information

of

goal
goal

achievement,
identification,

Evaluation of HR Systems, Reinforcement

Documentation

of organizational developmental needs.

Criteria
for
validation
research,
Documentation of HR decisions , helping
to meet legal requirements

29

REVIEW OF LITERATURE

METHODS OF APPRAISAL

30

RANKING METHOD

In this the superior ranks his or her subordinates in the order of their merit starting from
the best to the worst. All that the HR department knows is that A is better than B. The
how and why are not questioned, nor answered. No attempt is made to fractionalize
what is being appraised into component element. This method is subject to the Halo
effect, although ranking by two or more raters can be averaged to help reduce biases. Its
advantages include ease of administration and explanation.

PAIRED COMPARISON METHOD

Under this method, the appraiser compares each employee with other employee, one at a
time. For example there are five employees named A, B, C, D, E. The Performance of A
is first compared with the performance of B and a decision is made about whose
performance is better. Then A is compared with C, D and E in that order. The same
procedure is repeated for other employees. The number of comparisons may be calculated
with the help of a formula which reads thus :-

N (N-1)/2 Where N stands for the number of employees to be compared. If there are 10
Employees, the number of comparisons will be

31

{10(10-1)}/2 =45. After the completion of comparison, the results can be tabulated, and a
rank is created from the number of times each person is considered to be superior.

RATING SCALES

This is the simplest and most popular technique for appraising employee performance.
The typical rating-scale system consists of several numerical scales, each representing a
job related performance criterion such as dependability, initiative, output, attendance,
attitude, cooperation and the like. Each scale ranges from excellent to poor. The rater
checks the appropriate performance level on each criterion, then computes the employees
total numerical score .The number of points scored may be linked to salary increases ,
whereby so many point equal a rise of some percentage .
Rating scales offer the advantages of adaptability, relatively easy use and low cost.
Nearly every type of job can be evaluated with the rating scale, the only requirement
being the job performance criteria should be changed. This way a large number of
employees can be evaluated in a short time, and the rater does not need any training to
use the scale.
The disadvantages of this method are several .The raters biases are likely to influence
evaluation, and the biases are particularly pronounced on subjective criteria such as
cooperation, attitude and initiative. Furthermore numerical scoring gives an illusion of
precision.

FORCED CHOICE METHOD

32

In this method, the rater is given a series of statements about an employee. These
statements are arranged in blocks of two or more, and the rater indicates which statement
is most or least descriptive of the employee.
Typical statements are:1) Learns fast ---------------------------------Works Hard.
2) Work is reliable ----------------Performance is good example for.
3) Absents often--------------------others usually tardy.

This approach is known as the forced choice method because the rater is forced to
select statements which are readymade .The advantage of this method is the absence
of personal bias in rating .The disadvantage is that the statements may not be properly
framed they may not be precisely describe the employees traits.

FORCED DISTRIBUTION METHOD

33

One of the errors in rating is leniency clustering a large number of employees around a
high point on a rating scale .The forced distribution method seeks to overcome the
problem of compelling the rater to distribute the ratees on all points on the rating scale .
This method operates under an assumption that the employees performance level
conforms to a normal statistical distribution. Generally it is assumed that employees
performance levels conforms to a bell shaped curve .For example, the following
distribution might be assumed to exist excellent 10% ,good 20% ,average 40% , below
average 20% , and unsatisfactory 10% .

34

The Figure Below illustrates the distribution: ---

Forced Distribution on a bell curve

The major weakness of the forced distribution method lies in the assumption that
employee performance levels always conform to a normal (or some other) distribution. In
Organizations that have done a good job of selecting and retaining only the good
performers, the use of forced distribution approach would be unrealistic, as well as
destructive to the employee morale.
The error of central tendency may also occur, as the rater resists from placing an
employee in the lowest or in the highest group. Difficulties also arise for the rater to
35

explain to the ratee why he or she has been placed in a particular group .One merit of this
approach is that it seeks to eliminate the error of leniency.
However, the forced choice method is not acceptable to raters and the ratees , especially
in small groups or when group members are all of high ability.

36

FIELD REVIEW METHOD

This is an appraisal by someone outside the assessors own department, usually someone
from the corporate office or the HR department .The outsider reviews employee records
and holds interviews with the ratee and his or her superior .This method is primarily used
for making promotional decision at the managerial level.
Field reviews are also useful when comparable information is needed from employees in
different units or locations. Two disadvantages of this method are:
1. An Outsider is usually not familiar with conditions in an employees work
environment which may affect the employees ability or motivation to perform.
2. An Outsider review does not have the opportunity to observe employee behavior
of performance over a period of time and in a variety of situations, but only in an
artificially structured interview situation which extends over a very short period
of time.

360- DEGREE FEEDBACK

Where multiple raters are involved in evaluating performance, the technique is called
360-degree appraisal. The 360-degree technique is understood as systematic collection of
performance data on an individual or group, derived from a number of stakeholders the
37

stakeholders being the immediate supervisors, team members, customers, peers and self.
In fact anyone who has useful information on how an employee does the job may be
one of the appraisers.

The 360 degree appraisal provides a broader perspective about an employees

performance. In addition, the technique facilitates greater self-development of the
employees. For ones development, multi source feedback is highly useful. It enables an
employee to compare his or her perceptions about self with perceptions of others.
Besides, the 360 degree appraisal provides formalized communications links between
employee and his or her internal or external customers. The technique is particularly
helpful in assessing soft skills possessed by employees. By design the 360 degree
appraisal is effective in identifying and measuring interpersonal skills, customer
satisfaction and team building skills.

However, there are drawbacks associated with the 360 degree feedback. Receiving
feedback on performance from multiple sources can be intimidating. It is essential that
the Organizations create a non- threatening environment by emphasizing the positive
impact of the technique on an employees performance and development. Further, firms
that use the technique take a long time on selecting the rater, designing questionnaires
and analyzing the data. In addition, multiple raters are less adept at providing at providing
a balanced and objective feedback than the supervisors who are sought to be replaced.

38

Raters can have enormous problems separating honest observations from personal
differences and biases.
Pitfalls, notwithstanding, more and number of firms are using the 360 Degree appraisal
technique to assess the performance of their employees.

CHALLENGES OF PERFORMANCE APPRAISAL

With the increased significance of performance Appraisal, Challenges confronting the

system are mounting. One serious challenge facing the performance .One serious
challenge facing the performance appraisal system relates to assessment of self managed
teams. Popularly called empowered teams, these self managed teams create special
challenges for performance appraisal empowered teams perform without supervisors.
Historically, if one recalls, it is the supervisor who assesses the performance of his or her
subordinates. Another challenge is that both individual and team performance need to be
measured.

A suitable device needs to be developed to assess the performance of

empowered teams because more and more firms use such teams to enhance productivity.

39

Identify KRAs
crucial to
business during
the year

Evaluate
Performance of the
team against pre
determined targets

Set Tangible targets for

each KRA. Incorporate
Stretch elements for each
target. Fix the minimum
acceptable target

Communicate the
results to ensure
transparency

Identify individuals who have excelled

Discount subjective factors by including
assessors from outside the team to
identify outstanding individuals

40

Determine
intangible
parameters (like
initiative) which
indicate pockets of
individuals
excellence with the
team.
Measure
the
Performance of the
team (actual versus
targets) every month

OTHER CHALLENGES OF PERFORMANCE APPRAISAL

Create a culture of excellence that inspires every employee to improve and lend
himself or herself to be assessed.
Align organizational objectives to individual aspirations.
Clear growth paths of talented individuals.
Provide new challenges to rejuvenate careers that have reached the plateau stage.
Forge a partnership with people for managing their careers.
Empower employees to make decisions without the fear of failing.
Embed teamwork in all operational processes.
De-bureaucratize the organization structure for ease of flow of information.

41

LEGAL ISSUES ASSOCIATED

WITH
PERFORMANCE APPRAISAL

Performance appraisal data are used to make many important HR decisions (e.g. pay,
promotion, training, transfer and termination). The appraisal system is a common target
of legal disputes by employees involving charges of unfairness and bias. An employee
may seek the legal recourse to obtain relief from a discriminatory performance appraisal.

There are several recommendations to assist employees in conducting fair performance

appraisal and avoiding legal suits. Gleaned from case laws, these recommendations are
intended to be perspective measures that employers should take to develop fair and
legally defensible performance appraisal systems.

1. Legally defensible appraisal procedures.

All personnel decisions should be based on a formal standardized performance

appraisal system.
Any performance appraisal process should be uniform for all employees within a
job group, and decisions based on those performance appraisals should be
monitored for differences according to race, sex, national origin, religion, or age

42

of the employees. While obtained differences as a function of any of these

variables are not necessarily illegal, an organization will have more difficulty
defending an appraisal system with rating related to these variables.
All specific performance standards should be formally communicated to
employees.
All employees should be able to review their appraisal results.
There should be a formal appeal process for the rate to rebut rater judgments.
All raters should be provided with written instructions and training on how to
conduct appraisals properly to facilitate systematic, unbiased appraisals.
All personnel decision-makers should be well informed of anti-discrimination
laws.

They should be made aware of the fine distinctions between legal and illegal activities
regarding decisions based on appraisals.

2. Legally defensible appraisal content

Any performance appraisal content should be based on a job analysis.

Appraisals based on traits should be avoided.
43

Objectively verifiable performance data (e.g. productivity, not ratings)

should be used whenever possible.
Constraints on an employees performance that are beyond the employees
control should be prevented from influencing the appraisal to ensure that
the employee has an equal opportunity to achieve any given performance
level.
Specific job-related performance dimensions should be assigned weights
to reflect their relative importance in calculating the composite
performance score.

3. Legally defensible documentation of appraisal results

A thoroughly written record of evidence leading to termination decision
should be maintained (e.g. performance appraisals and performance
counseling to advise employees of performance deficit, and to assist poor
performers in making needed improvements).
Written documentation (e.g. specific behavioral examples) for extreme
ratings should be required and they must be consistent with the numerical
ratings.
Documentation requirements should be consistent among the raters.

44

4. Legally defensible raters

The raters should be trained in how to use an appraisal system.

The raters must have opportunity to observe the rate first-hand or to
review important rate performance products.
Use of more than one rater is desirable in order to lessen the amount of
influence of any one rater and to reduce the effects of biases. Peers,
subordinates, customers, and clients are possible sources.

45

PERFORMANCE MANAGEMENT SYSTEM

In the present scenario, the organizations have shifted their focus from performance
appraisals to performance management as a result of internationalization of human
resources and globalization of business. The functions of HRM have become far more
complicated as today the major focus of strategic HRM practices is on the management
of talent by implementing such development programmes which enhance the
competencies of the employees. The performance management approach focuses more on
observed behaviors and concrete results based on the previously established smart
objectives. By adopting techniques like Management by Objectives (MBO), smart
objectives are established in terms of either facts and figures and in the entire process the
superior plays the role of a coach or a facilitator. The objectives are mutually decided at
the beginning of the performance season and serve as a standard of performance for
evaluation. In this method, the employees can offer a feedback on their contributions by
filling up a self appraisal form. Performance management is a much broader term in
comparison with performance appraisal as it deals with a gamut of activities which
performance appraisals never deal with. This system is a strategic and an integrated
approach which aims at building successful organizations by developing high
performance teams and individuals and improving the performance of people. This
process starts when a job is defined. Performance management emphasizes on front end
planning instead of looking backward unlike performance appraisals and the focus is on
ongoing dialogue instead of appraisal documents and ratings. Thus, performance
management may be regarded as a continuous process.

46

A table depicted below shows a comparison between performance appraisal and

performance management:

Performance Appraisal

Performance Management

Focus is on top down

Stresses on mutual objective setting through a process of

assessment

joint dialogue

Performed annually

Continuous reviews are performed

Usage of ratings is very

Usage of ratings is less common

common
Focus is on traits

Focus is on quantifiable objectives, values and behaviors

Monolithic system

Flexible system

Are very much linked with

Is not directly linked with pay

pay

IMPORTANCE OF PERFORMANCE
MANAGEMENT SYSTEM

47

Performance Management System offers a valuable opportunity to focus on work

activities and goals, to identify and correct existing problems, and to encourage
better future performance.

It offers a rare chance for a supervisor and subordinate to have time out for a
one-on-one discussion of important work issues that might not otherwise be
addressed.

PMS provides employees with recognition for their work efforts.

The existence of an appraisal program indicates to an employee that the

organization is genuinely in his/her individual performance and development.

PERFORMANCE MANAGEMENT SYSTEM

-KEY SUCCESS FACTORS

Must reflect companys performance values-

48

Defines the companys position on competing priorities such as recognizing team

vs. individuals, achieving results vs. demonstrate valued behaviors, management
accountability vs. employee self management.

The performance management system reinforces the messages that the

organization wants to send out about its busin4ess, talent, performance, rewards,
and careers.

Get commitment and active participation of employees : One of the enablers

of a successful performance management process is active engagement at all levels, the
more successful the system will be.

Focus on the right performance measures : A good performance plan should

clearly define the performance measures in terms of results and behaviors that are critical
to the business. An effort should be made to keep the measures simple enough for
employees to use. The measures used should be supports by actual work deliverable.

Make

supervisors

accountable

for

performance

feedback

and

differentiation: for an appraisal system to be successful, the supervisors should be

made accountable to seek, give and obtain honest feedback. Supervisors should also be
able to differentiate between high and low performance.

49

Integrate Performance Management System with business and Human

Resource Processes: For the system to be a success, there should be proper
integration with the business planning/goals and with the HR processes of talent
acquisition, talent development, and reward systems.

Provide necessary training and communication: It is critical that requisite

training be imparted in the areas of goal setting, feedback skills, evaluation and
development etc. Since many employees resist accepting the full range of their
performance management responsibilities, they must be made to realize the importance of
good performance management. This requires strong communication from the top
management.

Measure and track success: There should be systems to support the measurement
to how successful the performance management system is. One should be able to track
whether it is being followed, whether stakeholders are satisfied with the system, whether
reviews are being done I the right manner whether the system will be able to assess the
impact of the business performance and so on.

50

Engage in continuous improvement : The performance management should be an

on-going process that reflects the companys current and emerging business challenges. It
should accommodate the changing business environment and should be congruent with
the companys values and priorities.

PMS in MBIL
WHY PMS

51

PERFORMANCE
PLANNING

REWARDS

HIGH PERFORMING
CULTURE

COACHING
&
FEEDBACK

PERFORMANCE
REVIEW

CHARACTERISTICS OF PMS

52

1. Performance cycle is annual, spanning April-March. The cycle for 2012-13 starts in
April12 & would end in the month of March13.
2. It has 3 distinct phases:

Performance planning

Midyear review

Year end appraisal

3. Individual performance planning follows corporate & functional goal. Setting

process to ensure alignment of individual effort to organizational strategy.
4. Midyear review is stock taking time is thus restricted to mid course correction
(revisiting the action planning) & qualitative feedback.
5. Feedback and coaching is ongoing to facilitate real time course correction.
6. The yearend appraisal mainly has 3 components:

Self appraisal

Appraisal & final rating by the immediate manager.

Review and final recommendations by the reviewer.

53

Purpose

Performance Review and deciding the increment for the current cycle.

Giving feedback to the employees regarding his/her areas of improvements and

planning the training needs.

Evaluating the potential for development, growth and role-change possibilities.

54

Objectives of PMS

Moser Baer is committed to a performance driven culture, which is transparent & fair.

To align everyones objectives and hence their effort into achieving the corporate
goals & objectives are defined in annual basis plan. This is done by framing the
corporate balance scorecard & cascading these objectives in the functional
scorecard of different functions & KRAs individuals.

To provide clarity to each individual about his/her role profile. In the process of
scorecard cascade, the areas where each function, & thereafter each individual
needs to support other functions is spelled out & clarified apart from ones own
focus areas within the function. This lends completeness to the focus areas of each
individual & provides a clear-cut direction to each employee. Also the mutual
clarification of the expectations between the employee & manager with regard to
the work & performance would build in transparency & fairness on the systems
this would also build in accountability & responsibility for ones work.

Through this system the process of development & growth of employees is also
addressed through the linkage to the development planning process.

55

Comprehensive performance dialogue between the employee and the a manager at

the goal setting stage; the mid year review stage; as well as the end of the period
performance review stage; & ongoing feedback and coaching by the manager
would help the development process of the employee. The development planning
process will be linked to the PMS formally to ensure consistency.

Self-Appraisal by the Appraisee (For DET & above).

Appraisal by Departmental Head/In charge.

Review by Functional Head.

Joint discussion between appraiser and appraisee.

Final evaluations/recommendations.

To enable the employees towards achievement of superior standards of work

performance.

To help the employees in identifying the knowledge and skills required for
performing the job efficiently as this would drive their focus towards
performing the right task in the right way.

Boosting the performance of the employees by encouraging employee

empowerment, motivation and implementation of an effective reward
mechanism.

56

Promoting a two way system of communication between the supervisors and

the employees for clarifying expectations about the roles and accountabilities,
communicating the functional and organizational goals, providing a regular and
a transparent feedback for improving employee performance and continuous
coaching.

Identifying the barriers to effective performance and resolving those barriers

through constant monitoring, coaching and development interventions.

Creating a basis for several administrative decisions strategic planning,

succession planning, promotions and performance based payment.

Promoting personal growth and advancement in the career of the employees by

helping them in acquiring the desired knowledge and skills.

Basis of rating/Scoring

Appraiser Section

-60%

(On-the-job Performance)

Reviewer Section

-40%

(Potential/Capability Appraisal)

57

Basis of rating/Scoring

The score for Appraiser section will be arrived at by calculating the

average of the individual scores under different characteristics and the
total weightage of this section will be 60% of the average score.

Likewise the score for the Reviewer section will be arrived at and the total
weightage of this section will be 40% of the average score.

The Composite score will be arrived at by adding both the appraiser score
and reviewer score.

Rating scale is 1 to 10

9 & 10

- Excellent

- Very Good

6&7

- Good

4&5

- Average

1, 2 & 3

- Marginal

58

BELL CURVE
-Excellent

- 20%

-Very Good - 30%

-Good

- 35%

-Average

- 13%

-Marginal

- 0-2%

Bell Curve Distribution to be maintained by each department.

BELL CURVE After the Data is received it is fit into the bell curve as given the details
earlier.
Each and every department maintains this bell curve.

59

GUIDELINES FOR APPRAISER

1. Bell Curve Distribution to be maintained by each department.

2. The Appraiser would be the immediate superior & the reviewer

superiors superior.

3. Rating scale should be kept in mind during appraisal process.

4. Date schedule be adhered.

5. Everyone has to sign & own the process while assessing the employee.

60

Evaluation of On-the-job performance

1. To be done against pre-determined measurable targets.

2. Performance or output records of all operatives to be attached as an annexure, by

the concerned HOD, as an evidence for Measured Performance Rating.

3. For Indirect support functions this can be done by evaluating:

Quality of work done/Resultant Output.

Achieving the targets on time.

Operating within resource budgets.

Conformance to company policy and rules.

61

Dos & Donts for filling up the Appraisal form

Dos

Compare actual performance with previously agreed standards.

List major differences.

List of significant achievements and contributions to be submitted for NonOperatives category.

Analyze differences for possible causes.

Your appraisal must reflect overall assessment of the appraisee over the entire
period including areas of improvement and the feedback given periodically so that
there are no surprises.

62

Donts

1. Dont approach with preconceived ideas-keep an open mind.

2. Dont fail to appreciate that team performances are interdependent and complex; a
bad or good performance may not lie entirely within the control of any single
team member. Appreciate his singular contribution or lack of it.

3. Dont allow past performance appraisal rating to unjustly influence current

ratings. People can improve.

4. Dont adopt different standards of appraisal for different employees. Be

consistent.

5. Dont rate appraisee on impressions, or feedback from others.

63

6. Investigate success and failures and weigh employee contribution.

7. Dont make commitments, which cannot be fulfilled, It reduces your credibility.

8. Dont play favorites and base assessment on other than on-the-job behavior and
achievements.

9. Dont share your appraisal rating with the Appraisee. It may get moderated and
then you may have difficulty justifying the change.

64

PERFORMANCE FEEDBACK GUIDELINES

Agree on firm time and date for the Review Discussion.

Arrange for privacy with no interruptions.

Prepare notes for use during discussion.

Seating should be different than normal.

First few minutes are very important for setting the tone of the meeting.

Let the appraisee do most of the talking.

Use open questions to draw out the appraisee.

Praise ad criticize as and when needed immediately. Do not postpone it. Your
hesitation to critical evaluation may make an employee a dead wood tomorrow.

Consider possible solutions/action plans.

Act mature and balanced.

Understand that extra generousness causes problems.

65

Must ensure that ratings are not shared with the associate before finalization, as
there may be some moderation required during the process and revealing rating
before finalization may have a negative impact.

DATE SCHEDULE
For all senior officers/engineers & below, the appraisal system is applicable which has 2
cycles, the April-march cycle and the October-September cycle
For Assistant manager & above, the PMS, reflection is applicable which is carried out in
the April-march cycle. Under which employee has to fill the following information:
Employee details- Name, Designation, department, age, qualification, total experience
grade, joining date, etc.
-Managers and reviewers details
-Target dates &
-Appraisal period.

66

Performance Cycle
April:
Setting Corporate Goals for
the year
April/ May
Pay Action

April:
Setting Departmental
Goals for the year

May:
Individual
Performance planning
End April:
Performance Ratings
after Normalization
and Development
Needs

Ongoing coaching and feedback

on Performance
March:
Final Review

67

October:
Mid-Year Review

TERMSYOUSHOULDKNOW

KEY RESULT AREAS

KRAs or Key Result areas are the key performance parameters for a role. These are
defined as critical outcomes toward which effort is directed to support achievement of
desired business results.
1. KRA Setting is a top-down process.
2. It should be jointly between the manger & incumbent.
3. KRAS have to be in line with the functional scorecard.
4. Maximum no.s of KRAs should be 5-6 in no.s.

3-4 KRAs should be functional in nature.

1-2 KRAs systemization, processes/cross functional.

1-2 should be on the organization related initiatives (PMS, Driving Values,

& Employee Engagement).

5. The weightage for the KRAs should be based on the importance/ significance of
the activity from an organizations context.
6. For each KRA; targets should be defined along with the measure of success.
7. Rating 1-4, should also be defined along with the manager & it should be
documented in the reflection form. This is to ensure objectivity in the system.
8. For each KRA on action plan should be defined.

This ensures the vision of success

68

Defines milestones for te given activity

Identifies resources for the task to be achieved.

KRAs Should be SMART

S SPECIFIC

M MEASURABLE

A ACTIONABLE/ACHIEVABLE

R RELEVANT

T TIME BOUND

BASELINE RESPONSIBILITIES These are ongoing job responsibilities which are

integral to ones particular job. They are responsibilities which one fulfills on a daily
basis as part of the job.

69

COMPETENCIES

Combination of Knowledge (what to do?), Skill (how to do?) & Attitude (why
to do?)

Demonstrated behaviour at work that ensures sustained effective performance as

per business requirements (current and future)

VALUES

RATING SCALE: 1-4

4: Targets exceeded
3: Targets fully achieved
2: Targets partially achieved
1: Targets not achieved

70

APPRAISEE: Any person who would be rolls of the company.

MANAGER: Your immediate boss.

REVIEWER: This is your bosss boss.

BALANCED SCORECARD: Balanced scorecard is a comprehensive framework that

translates a companys vision and strategy into coherent set of performance measures.
The balanced scorecard can be used as a strategic management system to manage
companys strategy over its long run.
The scorecard provides balance between external measures (e.g. meeting customers
needs) and internal measures (e.g., improving organizational effectiveness) and between
lagging measures (e.g., return on net assets) and leading indicators (e.g., staff
development versus plan). The balanced scorecard serves as the focal point to define and
communicate business imperatives to the organization, employees, and customers.

71

The primary benefits of using the balanced scorecard include:

Links performance with business performance; shows contributions to the

business.

Tailored to meet business needs of each business, division, and /or location.

Measures include forward- looking indicators of success.

Process guards against sub-optimization of measures; allows the organization to

consider all important measures in an integrated manner.

Measures focus on effectiveness of outcomes, not just efficiencies of processes.

Performance can be tracked, monitored, and reported regularly to stakeholders.

Process provides common language for communicating performance to the

organization, employees, and customers.

72

PERFORMANCE MANAGEMENT SYSTEM Pitfalls

No matter how good a system, it will fail to deliver if the following are not watched
out for: ----

Lack of support from Top Management This may happen because the top
management fails to see any link between the performance management system
and the business goals of the Organization.
Fear of failure There is a suspicion among many appraisers that a poor
appraisal result tends to reflect badly upon them also, since they are usually the
employees supervisor. Many appraisers have a vested interest in making their
subordinates look good on paper.
Judgment aversion- Many people has a natural reluctance to play judge and
create a permanent record, which may affect an employees future career. This is
the case especially where there may be a need to make negative appraisal
remarks. Training in the techniques of constructive evaluation (such as self
auditing) may help. Appraisers need to recognize that problems left unchecked
could ultimately cause more harm to an employees career than early detection
and correction.

73

Ritual One of the most common mistakes in the practice of performance

appraisal is to perceive appraisal as an isolated event rather than an ongoing
process. Frequent mini appraisals and feedback sessions will help ensure that
employees receive the ongoing guidance support and encouragement they need.
Lack of Ownership- Often, line managers tend to believe that performance
appraisal is not their responsibility but the responsibility of HR. All supervisors
need to recognize that they are responsible for the performance and development
of their subordinate.
Lack of skills Many times employees does not know how to do objective
setting, how to assess people and give and receive feedback these skills are very
important for any performance management system to succeed.
Delay in Completion- Feedback is effective when it is timely, if the performance
assessment or the feedback exercise is delayed, and then it has little meaning for
the employee and the organization.

74

OBJECTIVES OF THE STUDY

An analysis of Performance Management System in

Moser Baer India Limited

The strategic intent of the project was to do an overall analysis of Performance

Management System of Engineers and Senior Engineers in Moser Baer India Limited,
where the purpose was to focus on the reasons for checking the grievances and gaps of
the Performance Appraisal Process and giving suitable recommendations for the increase
in efficiency of the system.

The main objectives identified were: -

To Understand the Present Performance Management System and its strategic

framework and policies.

To interview and discuss the area of focus with engineers and senior engineers
and other employees regarding the Appraisal Process.

To find the various reasons for its pitfalls.

To effect promotions based on competence and performance.

To assess the training and development needs of employees.

75

When mapped into a pictorial representation, the objectives translated into the following
framework.

Study the
Prevailing
Performance
Appraisal
process

Interview and
discussion
Within area of
focus and find
gaps and
loopholes

Take effective
measures and
recommendation
for increase in
effectiveness

Scope of the Study

The Scope of the Project is to find out the loopholes in the Current Performance
Management System and recommend ways to make the system efficient and effective.

76

RESEARCH METHODOLOGY

The ConceptThe term Research Methodology indicates an exhaustive and searching investigating
into some accepted principles and conclusions, so as to bring into light some new and
novel facts .The first step towards any research is to identify the problem and look at it
objectively. One problem to be studied is decided, the steps to be finalized as follows:-

The Sample is to be surveyed as to get the reliable result.

Methods to be used for collecting required information.

Interpretation of data to get the required result through an analysis.

Provide the necessary recommendations and suggestions.

The methodology is based on the extensive experience in qualitative and quantitative

interview methods with both workers and factory managers .The Study solicits and
examines Performance Appraisal System and offers insight into the ethical and business
perspective of the issue through a survey for its analysis .The study relied on trained
interviews using a structured interview to gather a broad range of information regarding
the Appraisal system prevailing in the organization .The Study emphasizes on both
engineers and senior engineers interview s conducted at Moser Baer India Limited At
Greater Noida Plant employees .

77

Research design

A. Problem defining

To study the present Performance Management System of Moser Bear Pvt. Ltd.

B. Literature survey

The literature used in this project is taken from websites and books.

C. Type of research

The research is both exploratory & descriptive in nature as the researcher has
explored the PMS of the company and its shortcomings. It is descriptive in nature
as the researcher has used pie charts to describe the analysis of the project.

D. Data collection design

1. Source of data.

Primary data through questionnaire and interview.

78

2. Sampling size

The sample size of the study is 40.

3. Sampling Technique

Convenience Sampling

4.

Sampling units

The researcher has done the survey in 9 departments with 40 Engineers/Senior

Engineers filled up the questionnaire and was interviewed.

Interviews were conducted and the Questionnaires were filled from 25th March 2013 to
5th April 2013. All the Engineers were interviewed with convenience from the available
list from the different departments. Onsite interviews were also conducted at random for
further clear picture prevailing in the organization. The aggregate result of the interviews
presents a Clear picture of the Performance Appraisal System in the Organization.

79

Tools of Data Collection

Methods refer to the designing of evaluation instrument .Evaluation instrument is a data

collection device administered at the appropriate stage of any analysis. Data Collection is
a major ingredient of any research project.
To get the data quite a few methods can be used like

Questionnaires

Personal Interviews and Discussions

Records of the Organization

I have used all the four above tools to get along with research project, but the main
emphasis is given to the responses collected through questionnaires, personal interviews
and discussions. The numerous official records of the past and the present, intranet sight
are also referred for the collection of exact information and statistical data.

80

81

NO. OF EMPLOYEES USED IN THIS SURVEY

82

83

Question 1

DO YOU HAVE CLEAR UNDERSTANDING OF

THE KRAs(Key Result Areas) ?

5%

17%
Yes
No
Can't Say

78%

ANALYSIS- The above pie chart shows the percentage of respondents who has clear
understanding of the KRAs. This chart depicts that only 5% of the employees understand
the KRAs of the organization. 78% of respondents dont have understanding of the
KRAs.
INTERPREATATION- From the responses the pie chart illustrates that most of the
employees are not aware regarding the Key result Areas, then why it is given in the Self
Appraisal form and TNI form to write the KRA of the Particular individual and Check
himself/herself whether it is being fulfilled or not. So it is just for name sake or really the
Employees are not aware regarding the same.

84

Question 2

IS THE PRESENT PERFORMANCE PLANNING

WELL?

Yes
17%

18%
No
Can't Say
65%

ANALYSIS- This chart depicts that 18% of the respondents are satisfied with the present
performance planning of MBIL. 65% of the respondents are not satisfied with the present
performance planning of the organization. 17% of the respondents have no clear idea
about the performance planning of the MBIL.
INTERPRETATION-You can find from the Pie chart that the response to the Particular
Question is not encouraging as it clearly shows that the Present Performance planning is
not up to the mark so there is a need to check the same and then identify whether there is
present target prevailing for the Employees and if it is exists why it is not up to the mark.

85

Question 3

IS YOUR KPA RELATED TO YOUR COMPANY'S

GOALS AND OBJECTIVES

5%
32%

63%

Yes
No
Can't Say

ANALYSIS- The above charts depicts that 5% of the respondents think that the KPAs are
related to the companys goals and objectives. Most of the respondents i.e. 63% dont
have clear idea about the link between the KPAs and the objectives of the company and
rest 32% say that their KPAs are different from the companys goals and objectives.

INTERPRETATION- As far as the response to this Question is Concerned most of the

employees are unaware whether their KPA is related to the Company Goal. The Second
Question ask what are the Specific contributions in last Six Months and there are two
parts 1) Quantity output against target set 2) Quality of output -ratings as you, dont you

86

think they are contradictory in nature. So in order to know your policy programmes this
thing should be made mandatory so the employees are aware of the same , if this rule is
not followed then also they should be known their tasks well then only they will be able
to fill their forms properly otherwise the opinion of the appraiser or the reviewer of that
particular employee will not come up to the mark.

Question 4

DOES YOUR MANAGER DISCUSS ANY MID TERM

CHANGES IN YOUR TASKS?

17%

20%
Yes
No
Can't Say
63%

ANALYSIS- 20% of the respondents agree that midterm changes are being discussed to
them by the HR manager. 63% of the respondents dont agree that mid term changes are
being discussed to them.

87

INTERPREATATION-As per the responses you can see that most of the employees
have said that the manager does not discuss any mid term changes that means that if the
employee has done anything wrong at a particular time he/she has not given any
feedback. It is the Duty of the manager so the employee will also see that my manager
takes me seriously and the employee will also motivated at the particular context
whichever department he/she belongs.

Question 5

WHICH APPRAISAL METHOD IS PREFERED BY YOU?

5%
32%

Appraisal by reviewer
Appraisal by Manager
Self Appraisal

63%

ANALYSIS- 63% of respondents prefer self appraisal method. 32% of the respondents
prefer to the appraisal to manager and only few are comfortable by reviewer. 5% of them
didnt want to answer.

88

INTERPRETATION- Most of the employees are comfortable with self appraisal

method and rest of them is preferring appraisal by manager and reviewer. This depicts
that employees are not comfortable with interference from the management and want to
evaluate their performance themselves.
Question 6

ANALYSIS- This chart shows that only 12% of respondents think that regular feedback
on performance is being given to them by management. 78% of the respondents are not
happy with the feedback given to them. 10% of them are indifferent or dont want to
answer to the particular question.

INTERPRETATION - The graph clearly shows that almost 8 out of 10 employees are
not given any feedback which is a very bad thing as far as any organization is concerned

89

at least if he / she is given feedback they will improve or whatever their grievances and
problems are there can be sorted out and their frequency of work would be increased.

Question 7

DOES THE PERFORMANCE MANAGEMENT

SYSTEM IDENTIFY AND ADDRESS YOUR TRAINING &
DEVELOPMENT NEEDS?

8%

27%
Yes
No
Can't Say

65%

ANALYSIS- Most of the respondents that is 65% are not happy with the training need
assessment by the management. 27% are comfortable with the training and development
needs assessed by the management. 8% of the respondents are indifferent with the
question asked.

INTERPRETATION- The Graph shows that the current performance management

system is unable to identify and address the Development needs of the Employee which
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can cause high attrition. If this is true then may be company is having a good name but if
it is so then the employees will run away and they will not work for many years, So there
is a need to identify this and it is possible only when we go through the Current PMS and
identify its shortcomings and try to work upon it.

Question 8

ANALYSIS- 55% of the respondents are happy with the PMS with respect to career
advancement. 32% are not satisfied with the career advancement of the organization
while 13% of respondents are indifferent.

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INTERPRETATION- The responses shows that they are happy with the Performance
Management System as it is giving them their career advancement, but the responses
earlier were not up to the mark as per me I think that they see that Moser Baer has a good
name in the market so they are working for some time they are getting appraised and
jumping to another company for their advancement but I am only saying as per the data
collected from the engineers in the response. Because this organization is a very good
learning organization and everyone thinks that lets take some experience and learn & than
after 1-2 yrs go for some other organization.

Question 9

ORG PROVIDE ADEQUATE REWARDS?

10%
44%

46%

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Yes
No
Cant say

ANALYSIS- 46% of the respondents are not satisfied with the reward system of the
organization. 44% of the respondents are not satisfied with the reward system of the
organization. 10% are not clear with the present reward system.

INTERPRETATION- The employees survey of engineers and senior engineer shows

that it is satisfactory the current reward system we should try to increase it more by
training programs and other activities like appreciation, motivational and behavioral
programs for these employees which will give them value addition to their job and it
should happen just after the appraisal process then the employees will take it in the
positive sense.
Question 10

WHAT IS THE SATISFACTION LEVEL FROM THE

PRESENT PMS?

7%

2%

10%

32%

49%

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Highly satisfied
Satisfied
Neutral
Less Satisfied
Not Satisfied

ANALYSIS- 49% of the respondents are not satisfied with the present PMS of the
organization. Only 2% of the respondents are highly satisfied with the present PMS of the
organization. 32% are neutral with the present PMS. 10% are satisfied with the present
PMS. 7% highly unsatisfied with the PMS.

INTERPRATATION-As per the Graph Most of the People are not satisfied and 7%
people are there out of the survey of 40 Engineers who are not at all satisfied so it is an
area of deep concern and should be taken it carefully.

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FINDINGS
The Performance Appraisal process working for a large organization like Moser Baer is
fine but it does have some shortcomings which if not taken into account could lead to
serious imbalances in the organization so it is better to find ways to work upon it. To
reduce or eliminate these shortcomings and it be the perfect system to rely upon and
maximum efficiency and output is there in it. Certain gaps you would have come to know
through the pie charts but there are more, which I am listing down.

1. Documented PMS Policy

a. Assessment on characteristics instead of KPAS
b. Characteristics redefined as competencies

2. Assessment for values

3. Potential Assessment
4. Job Rotation
5. Additional Qualification
6. Stretch Target
7. Training need identification
8. Past data creates bias

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DIFFICULTIES

These are the difficulties in the present PMS system:

1. Strict adherence to Bell curve (normal distribution curve)

2. Lack of career advancement and hence low satisfaction level.
3. Unauthorized absence
4. Transfers without intimating HR
5. Key resources
6. Training need identification
7. Rationalization recommendations

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LIMITATIONS

Sample size is too small to reflect the opinion of the whole organization

Any organization do not reveal all the details of the company.

There is a time limitation, as no one can study exhaustively in a very less time
period of 2 weeks.

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RECOMMENDATION

After doing the research on Performance Management System and done its analysis it is
very clear what are the Gaps and what should be done though the researcher would like
to suggest something that the Performance management System should be fair enough so
that the employee doesnt say a word or discuss regarding the same.
The performance Management System should be made robust in order to avoid the
loopholes as it looks good on paper it should be done practically also. People should be
made aware regarding their targets and goals so they try to achieve the same.
Past data should not be there in the appraisal form otherwise it makes biased opinion
regarding the employee at that point of time. Employees should be given performance
benefit by being promoted to upper level if they do get a higher qualification.
There should be potential assessment and employee should be moved from one job to
another on the basis of the caliber and moreover should be given a chance so it will not
create monotonous environment in the eye of the employee.

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BIBLIOGRAPHY

BOOKS

HUMAN RESOURCE MGMT

HUMAN RESOURCE MANAGEMENT -K ASWATHAPA

HUMAN RESOURCE MANAGEMENT -LM PRASAD

RESEARCH METHODOLY

WEBSITES

WWW.CITE HR.COM

WWW.HRDNETWORK.COM

WWW.AIMA-IND.ORG

WWW.STANFORD.EDU

WWW.IGNOU.AC.IN

WWW.HRCOMMUNITY.COM

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-VSP RAO

-CR KOTHARI

ANNEXURE
Questionnaire
SURVEY ON PERFORMANCE APPRAISAL PROCESS AND ITS ANALYSIS
IDENTIFICATION/ID NO (OPTIONAL)DEPARTMENT AGE

SEX

MALE

/ FEMALE

QUALIFICATIONPlease answer the following questions; your responses will be kept confidential
1) Do you have clear understanding of the Key performance Areas/Key Result
Areas?
1) Yes

2) No

3) Cant Say

100

2) Is the present performance planning mechanism well?

1) Yes

2) No

3) Cant Say

3) Is your KPA (key Performance Area) related to your company goals and
objectives?
1) Yes

2) No

3) Cant Say

4) Does your manager discuss any mid term changes in your tasks?
1) Yes

2) No

3) Cant Say

5) Which yearend appraisal do you prefer?

1) Self Appraisal
2) Appraisal by immediate manager
3) Appraisal by reviewer
6) Are you given regular feedback on your performance?
1) Yes

2) No

3) Cant Say

7) Does the Performance Management System identify and address your training
and development needs?

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1) Yes

2) No

3) Cant Say

8) Does the Present Performance Management System meet your career

advancement /expectations?
1) Yes

2) No

3) Cant Say

9) Does the organization provide adequate reward after the appraisal?

1) Yes

2) No

3) Cant Say

10) What is your satisfaction level from the present Performance Management
System?
Tick () the Appropriate Box

Highly

Satisfied

Neutral

Satisfied

Unsatisfied

Highly
unsatisfied

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