Preface Managing human resources in todays dynamic environment is becoming more and more complex as well as important.

Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance, job security, etc My research project deals with Performance Management System as carried out at Nouva shoes . In this report, I have studied &evaluated the performance Management System company. In the first section of my report, I have conducted a research study to evaluate the process of performance Management System as carried out at Nouva shoes . The second section of my report deals with a detailed company profile. It includes the companys history: its activities and operations, organizational structure, etc. this section attempts to give detailed information about the company and the nature of its functioning. The third section deals with performance Management System. In this section, I have given a brief conceptual explanation to performance Management System. It contains the definition, process and significance of performance Management System. this section also contains my findings, conclusions, suggestions and feedback process as it is carried out in the

Overview of the footwear industrial sector

Footwear has become out as one of the basic needs and necessities of todays human being. It is as important for a human being as clothes and shelters. The importance of this product has been highly recognized in the western countries. Footwear industry in these countries come in the category of other developed industries, for example Nikes and Reeboks of America,Lapsa2 of U.K., Goose of Italy are some of the highly reputed companies manufacturing hi-tech shoes and having worldwide acceptability. The footwear industry in India is somehow different and regretfully his industry could not develop itself despite the fact that India being second largest populated country in the world, surplus manpower and resources of raw materials, whatever the reason being The footwear sector is a diverse industry which covers a wide variety of materials (textile, plastics, rubber and leather) and products from different types of men's, women's and children's footwear to more specialized products like snowboard boots and protective footwear. This diversity of end products corresponds to a multitude of industrial processes, enterprises and market structures. Footwear industry action aims to promote innovation, competitiveness and competition between companies involved in the sector, combat fraud and counterfeiting, and protect consumers' health and the environment. The Indian footwear industry consists of a large number of small enterprises most of which are located in regions with little industrial diversity. However, there are differences from one member state to the other.

Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market. By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market. The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market. The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market .

INTRODUCTION
There were about 200 footwear exporting firms in Agra exporting to several countries, but besides these firms, there were also about 6,000 small-scale footwear-manufacturing units functioning in the town that were yet to make a breakthrough in the world market.

About Us
Nuova Shoes, is a part of R.C.K.K., established in 1964. It is managed by Mr. Harsimran Singh Alag (Mannu) who has done a special course in "Designing in Footwear" from Italy under the able guidance of his father Mr. Manjit Singh who is in this field since 1964 when R.C.K.K. started.

Situated at Khasra No. 432, Mauza Gailana, Asopa Hospital Road, Agra - 282007 (India), Nuova Shoes is headed and managed by professionally competent and dedicated team of Partners, Executives and workers. It has a well laid out factory with latest Italian and German Shoe making machineries which ensures quality standards to meet international norms.

Nuova Shoes, has a Footwear Design Department and Sample Room which displays hundreds of samples designed by us,
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keeping in view the latest world fashion trends. Research and Development continuously engages itself throughout the year updating its customers with latest world fashion trends. We also engage designers from Italy for continuous flow of fashion. Nuova Shoes has been exporting to various parts of the world including U.S.A, U.K., Italy, Germany etc in famous brand names such as GBX, Giorgio Brutini, J.C. Penney, Kenneth Cole (U.S.A), Stefanel, Geox, Diesel, Tommy Hilfiger (Italy) and Marc, S. Oliver (Germany), Barrats, Pierre Cardin, Pavers (U.K).

Currently our capacity is 1.5 million pairs of which the current utilization is 70%.

Our sourcing is global so as to ensure that we sustain our competitiveness not only in terms of cost but also in terms of new leathers, materials and components.

With a network of shoe professionals around the shoe producing and fashion designing nations - from China to Italy, we are continuously engaged in creating products in keeping with the fashion trends and market requirements.

We believe that Designing & the Product Development is only a part of the total sum. The execution is the other key and we are

proud of our performance. The goal is to achieve Customer Delight for we are aware that "we are as good as our last delivery". Finally, the Client Retention is the other factor which we are proud to mention for we have been able to retain all our Clients who we started with and the objective is to grow with all our Customers in a symbiotic way. We also have an in-house sole unit manufacturing Leather, PVC and TPR soles with a production capacity of 3000 pairs per day.
Year of Establishment Nature of Business 1964 Manufacturer, Exporter, Trader

Contact Us
Company name Telephone Fax No Address : : : : Nuova Shoes +(91)-(562)-4028200 +(91)-(562)-4028298 Khasra Number - 432, Mauza Gailana, Asopa Hospital Road, Agra - 282007, Uttar Pradesh, India

MARKETING TACTICS:
Our product range is exhibited is many prestigious fair like ITALY, GERMANY AND USA.

VISION OF NOUVA SHOES

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To be the best Quality footwear & footwear components producing world class plant with lowest production cost, Ecofriendly,Safe & healthy environment, conformance with social /ethical compliance.

Women Sandals

Women Sandals (01)

Product Code:

ART-NO-P5160001

Women Sandals

Women Sandals (02)

Product Code:

ART-NO-P5160002

Women Sandals

Mens Shoes

Mens Shoes (01)

Product Code:

ART-NO-P1090091

Mens Shoes

Mens shoes (02)

Product Code:

ART-NO-P1090092

Mens Shoes

Mens Shoes (03)

Product Code:

ART-NO-P1090098

Mens Shoes

Mens shoes (04)

Product Code:

ART-NO-P1090099

10

Mens Shoes

Mens Shoes (05)

Product Code:

ART-NO-P1090100

Mens Shoes

Mens Shoes (06)

Product Code:

ART-NO-P1090101

Other products & services we offer

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Mens Shoes

Mens Boots

Mens Boots (01)

Product Code:

ART-NO-P1040036

Mens Boots

12

Mens Boots (02)

Product Code:

ART-NO-P1040037

Mens Boots

Mens Boots (03)

Product Code:

ART-NO-P1040038

Mens Boots

Mens Boots (04)

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Product Code:

ART-NO-P1040039

Mens Boots

Mens Boots (05)

Product Code:

ART-NO-P1040040

Mens Boots

Mens Boots (06)

Product Code:

ART-NO-P1040041

Women Boots
14

Women Boots

Women Boots (01)

Product Code:

ART-NO-P5160003

Women Boots

Women Boots (02)

Product Code:

ART-NO-P5160004

15

Women Boots

Women Boots (03)

Product Code:

ART-NO-P5160005

Women Boots

Women Boots (04)

Product Code:

ART-NO-P5160006

16

Women Boots

Women Boots (05)

Product Code:

ART-NO-P5160007

Women Boots

Women Boots (06)

Product Code:

ART-NO-P5160008

17

Kids Boots

Kids Boots (02)

Product Code:

ART-NO-P3050016

Kids Boots

Kids Boots (03)

Product Code:

ART-NO-P3050017

18

Kids Boots

Kids Boots (04)

Product Code:

ART-NO-P3050018

Kids Boots

Kids Boots (05)

Product Code:

ART-NO-P3050019

19

Kids Boots

Kids Boots (06)

Product Code:

ART-NO-P3050020

Kids Boots

Kids Boots (07)

Product Code:

ART-NO-P3050021

20

Kids Boots

Kids Boots (08)

Product Code:

ART-NO-P3050022

Kids Boots

Kids Boots (09)

Product Code:

ART-NO-P3050023

21

Kids Boots

Kids Boots (10)

Product Code:

ART-NO-P3050024

OUR PEOPLE

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NOUVA SHOES is indebted to its people for their unflinching support and dedication. They have stood by us in our good, bad and ugly times. They have crafted some of the finest shoes for most of the top names in international footwear and fashion industry. They have made us a force to reckon with in the fiercely competitive global footwear industry. We, at one end, have not failed them either. To begin with, we have provided them with a world class working environment envied by many in the industry. Its a hazard free, airy, well lit and well built working facility we are talking about with clean toilets and adequate drinking water. Its a facility that encourages performance by its ambience. Hot Indian summer is hardly a distraction. Their health is a matter of concern to us. Medical check-ups by qualified doctors are organised at regular intervals to

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monitor their health and welfare. Then, there is a cafetaria for people where they get subsidised food items. There is a volleyball court in the front amidst sprawling greens. It has witnessed many a competitive in-house tourneys. It is important for our people to know the joy of winning and the agony of losing to each other. But together they make a formidable team of 800 strong and highly skilled people we are proud o

WORK STRENGTH

For a company to stay ahead in terms of quality and competitiveness, it has to rely on the strength of its own infrastructure and resources. We, at NOUVA SHOES , realised it very early. Today, we not only have a most modern manufacturing complex but also an array of sophisticated machines

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to produce a diverse range of world class footwear.

Besides a number of Italian Lasting Machines and German Closing Machines, there are other machines at various stages of production. The assembly line manufacturing enhances production and ensure quality. Online Quality Control Checks by seasoned professionals enable us to monitor consistency in production of a particular order. From shoe upper to complete shoes, everything is produced in-house there by reducing production lead time and enhancing cost effectiveness. Over the years, the group has kept a sturdy pace with technological advances in footwear production. It has continuously upgraded its infrastructure to produce quality footwear.

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Installed Capacity 2000 pairs/day 4000 pairs/day 1200 pairs/day Ladies Shoes Men's Shoes Children shoes

For a company to stay ahead in term of quality and competitiveness. It has a relay on the strength of its own infrastructure and resource. We at NOUVA SHOES releasing it very early. Today we not only have a most modern manufacturing complies but also an array so sophisticated manufacturing complies but also array of sophisticated machine to produce a diverse range of world class footwear. Besides a no of Italian hasting machines and German closing machines, there are other machines of various stages of production online quality checks enable us to monitor consistency in production of particular order from shoes upper to complete shoes; everything is produced in house there by reducing production had time enhancing cost effectiveness. Over the year the group kept a study pace with technologically advances in footwear production. It has continuously upgraded in to infrastructure to produce quality footwear.

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QUALITY POLICY
At NOUVA SHOES , we look at quality from a different perspective. Concern for quality is ingrained in our system. It is an integral part of our thought process. And that is how it has become a tangible aspect of our products. You can see and feel it. Quality is not talking about it; it is doing it. It should be inherent in your belief system

Over the years, we at NOUVA SHOES , have evolved our own quality policy turned to the capabilities of our people. They produce quality because we provide them quality environment and facilities. We lead the crusade for quality from the front. At NOUVA SHOES , quality is people driven. Workers produce it, professionals inspect it and together they deliver it. From time to time our people undergo orientation programmes conducted with the assistance of technocrats to understand qualitative aspects of products we make. To top it all, the management of NOUVA SHOES

27

monitors the production process to ensure that each footwear bears NOUVA SHOES 's seal of 'Quality Always'.

At NOUVA SHOES , we look at quality from a different prospective concern for quality is ingrained in our system. it is an integral part of our through process. And that is how it has become a tangibles aspect of our product you can see and feel it. Quality is not taking about it. Its should be inherent in our belief system. We at NOUVA SHOES have involved our own quality policy turned in to capabilities of our peoples. They produce quality because we provide them quality environment and facilities. We lead the crusade for quality from the front. At professional inspect it a together they deliver it.

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From time to time people undergo orientation programmers conducted with the assistance of technocrats to understand qualitative aspect of products we make. To top it all, the management of NOUVA SHOES monitors the production process to ensure the each foot bears NOUVA SHOES s seal of quality always

ENVIRONMENT FRIENDLY COMPANY

Inherent in the work culture of "NOUVA SHOES " is a deep concern for conservation & Preservation of the environment. The sprawling greens in front of its Corporate Headquarters and Manufacturing facility is one such example.A modern waste treatment plant has been installed to ensure its surroundings are not polluted. The facility has been designed meticulously to match international standards in terms of temperature control, noise levels etc. It has "top-of-the-line fire fighting" arrangements. The walls in the working areas are fitted with fire fighting equipments and fire exits routes are painted all over the work area. The electricity cables have been laid under the watchful eyes of professionals as per the prescribed standards. To educate our workers regarding the use of chemicals, regular orientation programmes are conducted. Our concern for our environment and the measures we have taken to preserve it have got us an "ISO 14001" Certification.

RESEARCH & DEVELOPMENT

NOUVA SHOES is constantly innovating new designs. In sync with latest trends in the European standards, development of new designs goes on round the year at our Research and Development department.

29

At NOUVA SHOES , commitment to provide high class and quality service continues, right from the designer's sketchbook through to the performance of our shoes on a customer's foot. NOUVA SHOES has adopted latest footwear technology to give new dimension to the creative designers.

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Success is never a matter of desire, it is the product of hard work and vision. The phenomenal success of NOUVA SHOES proves it. With effective presence in more than "40" countries and a turnover exceeding, the group has been growing steadily. It's success is simply a by product of the implicit faith and confidence its buyers have in its capabilities. It has never let them down. And that is because their every requirement is met as per their exact specifications. Today, the Group exports its footwear to some of the top names in fashion and footwear business. "United Colours Of Benetton, Lumberjack" etc. are some of the brands it makes footwear for. Our product range is exhibited in many prestigious fairs like "Riva Del Garda (Italy), GDS (Germany) and WSA (USA)". For us at NOUVA SHOES every customer, no matter big or small, counts. Whenever visiting our "Corporate headquarters" in India, each customer is looked after well. We have even made independent work stations for them to work with freedom. All the work stations are equipped with modern telecommunication facilities. We cherish the mutually rewarding relationship we share with our customers worldwide.

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OUR MAIN MARKET

(1)UK & Europe (2) Scandinavia (3) Australia & North America
The brand "NOUVA SHOES " has been able to maintain its aura of exclusivity and distinction in the global market. Our brand "NOUVA SHOES " cherish the dreams of people from across the world by providing footwear of their choice. With the growing popularity, proliferation comes along. The company has elaborated the brand concept by launching a variety of sub-brands and shoes to suit different occasions. The new brand were coined with attractive catchword, thus helping the customers finding the right shoes. Our range of brand caters to every need in footwear world.

U.K. & Europe Scandinavia

32

 North America South America Australi

COMPANY POLICY OF NOUVA SHOES

We at NOUVA SHOES FOOTWEAR IND. a leading manufacturer and exporter of footwear and footwear components, are committed to carry out our activities with highest concern for Customer delight, Environmental protection, Occupational Health & Safety, Ethical governance and in compliance with all applicable statutory, legislative and national and international standards requirements. To this goal, we shall:

Supply high quality of footwear and footwear components and meet requirements of our customers.

33

 Continually improve Quality, Productivity, Social Performance, cost of poor quality, impact of our activities on air, water & land and also in prevention / control of Occupational Health and Safety risks; Monitor, control and upgrade our technology / processes and operational practices so as to optimize resource consumption and ensure safe work environment / well being at work place; Recognize and care for the concerns of our employees and affected interested parties regarding the impact of our operations on the environment and Occupational Health & Safety hazards at work place; Participate in overall social development of the neighborhood; Strengthen awareness, skill and competence of our employees so as to enable them to contribute effectively in ensuring sound quality, environmental, social, occupational health and safety management.

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GROWTH AND DEVELOPMENT OF ORGANIZATION

MONTHLY SALES PERFORMANCE

1000 938 849 761 841

V A L U E I N L A C S

900 800 700

617 600 500 400 300 215 200 100 0 APRIL '06 APRIL MAY '06 MAY '07 JUNE '06 JUNE '07 JULY '06 JULY '07 AUG '06 AUG '07 '07 211 368 458 364

MONTH
Cumulative Total (In Lacs) 826 1587 2525 3366

This Index show how NOUVA SHOES increase his performance Month by month and also year by year

PRESENT STATUS OF ORGANIZATION

Ranks of the Footwear company in Agra :1. NOUVA SHOES GROUP

35

2. TEZ SHOES 3. ROGER EXPORT 4. VIROLA INDUSTRY 5. PARK EXPORT 6. METRO & METRO 7. SUPER HOUSE 8. VASHANA EXPORT 10. NOVA SHOES NOUVA SHOES [excellence in footwear] ranked no. 1 in export of Leather Shoes

OBJECTIVES OF NOUVA SHOES

To reduce spillage & leakage To reduce oil, grease & leather contents in discharged water to zero

36

 To reduce electrical energy consumption by 5% To provide Awareness Training to all employees of company & subcontractors To ensure improved emergency preparedness To ensure safe Workplace for employees To ensure improved safe work practices To review & update personal Manual To upgrade sanitation facilities in the plant To maintain zero overtime To reduce diesel energy consumption by 3%

MANUFACTURING PROCESS OF NOUVA SHOES

Raw Material

37

Cutting

Closing

Lasting

MARKETING STRATEGY
NOUVA SHOES has a distribution Network that rivals the human arterial system reticulate network of retailers, showrooms and exclusive outlets with a reach like a blue green marine octopus. Thanks to the vision and drive of our corporate, we now have a sales Network that brings the breathtaking world of super footwear right at your
38

feet, within seconds. A marketing system that we have conceived and created is understandably, the envy of the competition. Marketing Network Offices Distributors Exclusive showrooms Shoe stations National 13 150 350 7000 International 2 10 10 500

EXPORT MARKET The various export markets of the NOUVA SHOES Shoes Ltd.are: Germany Italy Spain East Europe Indian sub continents

RESEARCH METHODOLOGY
Research is an important pre-requisite for a dynamic organization to be prcised. Research is more systematic activity directed towards the

39

discovery and development of organized body of knowledge. Some of the characteristics of research methodology are as follows: Research is directed towards a solution of problem. It may attempt to answer a question or determine the relation between two or more variables. Research involves gathering new data for primary of first hand sources or using existing data for new purposes. Research is based on observable experience or empirical evidence. Research strives to be objective and logical applying every possible test to validate the proceed are employed the data collection and conclusion research.

STEPS OF METHODOLOGY
COLLECTION OF DATA ORGANIZATION OF DATA PRESENTATION OF DATA ANALYSIS OF DATA INTERPRETATION OF DATA RESEARCH Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

40

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problems. It is a way of studying how research is done scientifically. It consists of various steps that are generally adopted by the researcher in studying his research problems along with the logic behind them. For solving the problem related to performance management of the NOUVA SHOES company research is done by using the 360 degree performance appraisal method which is helpful in analysis of , performance management simplification of accounting data, helpful in comparative study, helpful in locating the weak spots of the business, helpful in forecasting, estimating the trends of the business, effective control etc.

RESEARCH DESIGN
Research design is a framework or the blue print for conducting the research project. Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. It includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data.

41

An overall plan of action to be followed during an experiment to be sure that the objective are met. Often the specific procedures to solve problems are included in the research design The main objective of over study is to analysis the performance management of the firm through 360 degree performance appraisal method. This technique are helpful in solving the problems which we faced during the research. Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: Determining Data Collection Design Determining Data Methods Determining Data Sources Determining Primary Data Collection Methods Developing Questionnaires Determining Sampling Plan

TYPES OF RESEARCH DESIGN

Exploratory research design Descriptive research design

EXPLORATORY RESEARCH DESIGN

It is also termed as Formulative research design. The main purpose of the study is to formulate a problem for more precise investigation. In it we understand the performance management through 360 degree performance appraisal method.

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DESCRIPTIVE RESEARCH DESIGN

This research is the most commonly used and the basic reason for carrying out descriptive research is to identify the cause of something that is happening. The research design is the master plan specifying the methods and procedures for collecting & analyzing needed information. The research design in this project is DISCRIPTIVE. Descriptive research includes surveys & facts findings. SOURCES OF DATA It is of two types:Primary Data Secondary Data PRIMARY DATA Primary data are those data, which is originally collected. It is of following types questionnaire, interview, observation etc. SECONDARY DATA Secondary data are those data which are collected and which has been passed through statistical research.In this project, secondary data has been collected from following sources:Annual Reports Books Internet Other material and report published by company SAMPLE DESIGN

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Sample design is a technique or the procedure which the researcher would adopt in selecting items for the sample. It is not possible for any researcher to include each and every member of the universe in his research process. So, he selects small portion of the universe, which is its true representative. This group known is sample and this process is called Sampling. Sample designs are basically of two types: Non Probability Sampling Probability Sampling NON- PROBABILITY SAMPLING In this items for the sample are selected deliberately by the researcher, by using his own judgment. In this every item of universe does not have equal chances of inclusion in the sample. It can be of following type: Convenience Sampling Judgment Sampling Quota Sampling PROBABILITY SAMPLING It is also known as Random Sampling or Chance Sampling. In this, each population element has equal chance of selection. It can be of following type: Random Sampling Stratified Sampling Cluster Sampling Multi stage Sampling
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In this project, non - probability sampling has been used because sample is selected by own view and every item of universe has not equal chances of being selected. Under non- probability sampling, convenient sampling has been used because sample has been selected according to own convenience. Sampling size: This refers to the number of person institution to be surveyed. Total sampling size of this study is 50 Sampling procedure: This refers to the procedure by which respondents should be chosen. This study is conducted on the basis of convenience sampling and judgment sampling.

DATA COLLECTION METHODS:

1. Primary data is gathered through a survey conducted on employees. 2. Secondary data is collected from internet, files, record books, company manuals and books Research instrument used in this project report for collecting primary data is Questionnaire INSTRUMENT USED: Questionnaire SAMPLING TECHNIQUE: Random sampling DATA ANALYSIS: The data collected through survey was analyzed with the help of simple percentages, tabular and graphic methods which included pie charts, bar graphs are used to analyze the data.

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LIMITATIONS
1) Analysis was based on sample results 2) Some employees were not very open, forthcoming in writing their responses 3) It was difficult to get questionnaire filled by employees due to their busy schedule 4) Some employees had biased response style in dealing with sensitive issues

Performance
Employee Performance Management workforce

is a process for establishing a shared with the employees

understanding about what is to be achieved at an organisation

objectives

level. It is about aligning the organisational

agreed measures, skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business high performance workforce. Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas.
strategy

and to create a

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OBJECTIVES OF THE STUDY

The main objective of this study was to know performance management system in the organization.The sub objectives that we wanted to achieve are as follows: To know whether the employees are aware of the appraisal system followed by the company. To ascertain that what the factors are those are considered while appraising the performance of employees. To know that whether there is any biasness in the performance appraisal system of the organization. To find out the satisfaction level of employees regarding companies appraisal system. To analyze the various factors that can motivate employees in their work. To invite suggestions for the welfare of the employees of the company.

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PERFORMANCE MANAGEMENT
Employee Performance Management is a process for establishing a shared workforce understanding about what is to be achieved at an organization level. It is about aligning the organizational objectives with the employees agreed measures, skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance workforce. Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. The PM approach is used most often in the workplace but applies wherever people interactschools, churches, community meetings, sports teams, health setting, governmental agencies, and even political settings. PM principles are needed wherever in the world people interact with their environments to produce desired effects. Cultures are different but the laws of behavior are the same worldwide. Armstrong and baron (1998) defined it as A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors FEATURES:48

1) the fastest known method for career promotion; 2) the quickest way for career advancement; 3) the surest way for career progress; 4) the best ingredient in career path planning; 5) the only true and lasting virtue for career success; 6) the most neglected part in teachings about management and leadership principles; 7) the most complete and sophisticated application of performance management; 8) the best integration of human behavior research findings, with the latest management, leadership and organizational development principles; 9) the best automated method for organizational change, development, growth, performance and profit;

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OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior-subordinates and management-employees. To diagnose the strengths and weakness of individuals so as to identify the training and development of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

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HISTORY OF PERFORMANCE MANAGEMENT

Performance Management began around 60 years ago as a source of income justification and was used to determine an employees wage based on performance. Organisations used Performance Management to drive behaviours from the employees to get specific outcomes. In practice this worked well for certain employees who were solely driven by financial rewards. However, where employees were driven by learning and development of their skills, it failed miserably. The gap between justification of pay and the development of skills and knowledge became a huge problem in the use of Performance Management. This became evident in the late 1980s; the realisation that a more comprehensive approach to manage and reward performance was needed. This approach of managing performance was developed in the United Kingdom and the United States much earlier than it was developed in Australia. In recent decades, however, the process of managing people has become more formalised and specialised. Many of the old performance appraisal methods have been absorbed into the concept of Performance Management, which aims to be a more extensive and comprehensive process of management. Some of the developments that have shaped Performance Management in recent years are the differentiation of employees or talent management, management by objectives and constant monitoring and review. Its development was accelerated by the following factors:

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1) The introduction of human resource management as a strategic driver and integrated approach to the management and development of employees. 2) The understanding that the process of Performance Management is something thats completed by line managers throughout the year it is not a once off annual event coordinated by the personnel department.

PROCESS OF PERFORMANCE MANAGEMENT IN ORGANISATION

ESTABLISH PERFORMANCE STANDARDS

COMMUNICATING THE STANDARDS

MEASURING THE ACTUAL PERFORMANCE COMPARING THE ACTUAL WITH DESIRED

DISCUSS RESULTS

DECISION MAKING

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1.) ESTABLISH PERFORMANCE STANDARDS

The first step in the process is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. KPAs are set for each employee and they are prioritized. 70% weightage is given to technical skills and 30% weightage is given to behavioural skills. Behavioural skills expected from employees are same for all employees. Assessment is done by the head of the department.

2.) COMMUNICATING THE STANDARDS

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

53

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3.) MEASURE THE ACTUAL PERFORMANCE

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

4.) COMPARING THE ACTUAL WITH DESIRED

PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluation and analysis of data related to the employees performance.

5.) DISCUSSING RESULTS

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

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purpose of the meeting should be to solve the problems faced and motivate the employees to perform better

6.) DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. If the employees performance is below desired level then proper training is provided to them.

Methods of Performance appraisal

The foregoing list of major program pitfalls represents a formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, I shall briefly review each, taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly. Broadly, all the methods of performance appraisal can be classified into following two categories: Traditional Methods

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 Modern Methods

Method of performance appraisal

Method of performance appraisal

TRADITIONAL METHODS Essay appraisal In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight.

Graphic rating scale

Traditional Methods Essay Method Graphic Rating Scale Field Review Method Forced Choice Method Ranking Method Checklist Method Modern Methods Management by Objectives Assessment Centre Method 360 Degree Appraisal

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This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.

Field review
The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. .

Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party.

Ranking methods
For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this.

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The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking. 1. Alternation ranking:Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it is usually easier to distinguish between the worst and the best employees than to rank them, an alternation ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked.

2.

Paired-comparison ranking:

This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome. Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes.

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MODERN METHODS
Management by objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set - their own performance goals. Within the past five or six years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.

Assessment centers
So far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions, some prediction of future performance is necessary. How can this kind of prediction be made most validly and most fairly?

360 Degree Feedback

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, rather than for pay increases.

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Most 360 Degree Feedback system contains several common features. Appropriate parties peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God."

Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are

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judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured.

Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.

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BENEFITS OF PERFORMANCE APPRAISALS

Measures an employees performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees.

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 Helps in counseling and feedback.

RATING ERRORS IN PERFORMANCE APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: -

Leniency or severity:
Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: 1. The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. 2. He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. 3. He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.

Central tendency: This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing
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attitude stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error:A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Rater effect:
This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error.

Primacy and Regency effects: The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite

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performance of the rate and not to be influenced by one incident or an achievement.

Performance dimension order: Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.

Spillover effect: This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.

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DATA ANALYSIS
Q-1) Do you know the present Performance management system used in your organization?

Response

yes No 0

Respondents 50

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0% yes no 100%

Interpretation We can say that 95% employees know the performance management

system used in the organization 5% are unaware of that.

Q-2) Are you satisfied with the present PMS used in your organization? Response yes Respondents 40 No 0 Some how 10 Cant say 0

10%

10%

0% yes no somehow can't say 80%

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Interpretation We can say that 80% employees are satisfied with the performance management system used in the organization and no one is unsatisfied. 10% employees are some how satisfied and 10% are not able to say anything.

Q-3) The current process is too time consuming. Response Strongly agree 28 neutral 11 disagree 11 Strongly disagree 0 agree Respondents 0

0% 22% 0% s.agree agree neutral 22% 56% disagree s.disagree

Interpretation

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We can say that 56% employees are agree, 22% are neutral and 22% are disagree with the above statement.

Q-4) Do you think the assessment given by your HOD is on unbiased basis. Response Strongly agree 30 neutral 5 disagree 3 Strongly disagree 2

agree Respondents 10

6% 10%

4%

20% s.agree agree neutral disagree s.disagree

60%

Interpretation
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We can say that 20% employees are strongly agree, 60% are agree, 10% are neutral, 6% are disagree and 4% are strongly disagree with the statement.

Q-5) Team objectives dont exist. Response Strongly Agree 10 neutral 5 disagree 15 Strongly disagree 10

agree Respondents 10

20%

20% s.agree agree neutral disagree s.disagree

30% 10%

20%

Interpretation

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We can say that 20% employees are strongly agree, 20% are agree, 10% are neutral, 30% are disagree and 20% are strongly disagree with the statement.

Q-6) The focus of performance management is developmental. Response Strongly Agree 25 neutral 8 disagree 5 Strongly disagree 2

agree Respondents 10

10% 16%

4%

20% s.agree agree neutral disagree s.disagree 50%

Interpretation

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We can say that 20% employees are strongly agree, 50% are agree, 16% are neutral, 10%are disagree and 4% are strongly disagree with the statement.

Q-7) Regular feedback of the work is given. Response Strongly Agree 27 neutral 3 disagree 3 Strongly disagree 2

agree Respondents 15

6%

6%

4% 30% s.agree agree neutral disagree s.disagree

54%

Interpretation We can say that 30% employees are strongly agree, 54% are agree, 6% are neutral, 6%are disagree and 4% are strongly disagree with the statement.

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Q-8) PMS of your company motivates you for work. Response Strongly Agree 31 Neutral 8 Disagree 2 Strongly disagree 0

agree Respondents 9

4% 16%

0% 18% s.agree agree neutral disagree s.disagree 62%

Interpretation We can say that 18% employees are strongly agree, 62% are agree, 16% are neutral, 4%are disagree and 0% are strongly disagree with the statement.

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Q-9) PMS is effective in your organization. Response Strongly Agree 27 Neutral 6 Disagree 2 Strongly disagree 2

agree Respondents 13

12%

4%

4%

26%

s.agree agree neutral disagree s.disagree

54%

Interpretation We can say that 26% employees are strongly agree, 54% are agree, 12% are neutral, 4%are disagree and 4% are strongly disagree with the

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Q-10) Participation in the performance management process is up to the required level. Response Strongly Agree 25 Neutral 10 Disagree 5 Strongly disagree 2

agree Respondents 8

10% 20%

4%

16% s.agree agree neutral disagree s.disagree 50%

Interpretation We can say that 16% employees are strongly agree, 50% are agree, 20% are neutral, 10%are disagree and 4% are strongly disagree with the statement.

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Q-11) Personal development plans exist. Response Strongly Agree 30 Neutral 5 disagree 5 Strongly disagree 4

agree Respondents 6

10% 10%

8%

12% s.agree agree neutral disagree s.disagree 60%

Interpretation We can say that 12% employees are strongly agree, 60% are agree, 10% are neutral, 10%are disagree and 8% are strongly disagree with the statement.

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Q-12) Feedback on good or poor progress is saved up to the end of the year. Response Strongly Agree 37 Neutral 2 disagree 2 Strongly disagree 0

agree Respondents 9

4% 4%

0% 18% s.agree agree neutral disagree s.disagree

74%

Interpretation We can say that 18% employees are strongly agree, 74% are agree, 4% are neutral, 4%are disagree and 0% are strongly disagree with the statement.

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Q-13) Is unsatisfactory PMS directly relates to the employee turnover. Response Strongly Agree 35 Neutral 3 disagree 2 Strongly disagree 1

agree Respondents 9

6%

4%

2%

18% s.agree agree neutral disagree s.disagree

70%

Interpretation We can say that 18% employees are strongly agree, 70% are agree, 6% are neutral, 4%are disagree and 2% are strongly disagree with the statement.

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Q-14) Self rating is very useful for PMS. Response Strongly Agree 32 Neutral 6 disagree 4 Strongly disagree 0

agree Respondents 8

12%

8%

0%

16% s.agree agree neutral disagree s.disagree 64%

Interpretation We can say that 16% employees are strongly agree, 64% are agree, 12% are neutral, 8%are disagree and 0% are strongly disagree with the statement.

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Q-15) what factors from the following are considered in your organization while appraising the performance. Response Technicality Team work 4 Productivity Waste 8 other

& behavior Respondents 36

management 2 0

4% 16% 8% 0% tech.&behavior team work productivity waste mgmt 72% other

Interpretation We can say that 72% employees says that technicality & behavior are considered while appraising the performance, 8% think team work, 16% says productivity, 4% says waste management and 0% says other.

Q-16) How often the appraisal should be done?

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Response Respondents

Once during the Continuously service period 9 41

Never 0

Cant say 0

0% 0% 18% once continuously never can't say 82%

Interpretation We can say that 18% employees think that appraisal should be done only once, 82% think that it should be done continuously.

Q-17) If given a chance or opportunity, would you like that the current procedure should be reviewed?

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Response Yes Respondents 30

no 20

Cant say 0

0% 40% yes no 60% can't say

Interpretation 60% employees want that the current procedure should be reviewed and 40% says that it should not be reviewed.

Q-18) Based on your qualification, current role, responsibility & achievement, how do you rank your own performance?

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Response Excellent Respondents 4

Very good 8

Average 18

Good 20

8% 40% 16% excellent very good average good 36%

Interpretation We can say that 8% employees rank their performance as excellent, 16% as very good, 36% as average and 40% as good.

Q-19) What according to you is the best strategy for increasing the employee performance?

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Response

Increase

Negative

Freedom

Positive

Any

benefits Respondents 12

reinforcement for work 0 6

reinforcement other 32 0

0%

24% 0%

inc.benefits negative rein. freedom for work posiive rein. other

64%

12%

Interpretation We can say that 24 % employees think that increase in benefits can increase the employees performance, 0% says negative reinforcement, 12% says freedom for work, 64% say positive reinforcement.

RESULT AND FINDINGS

100% employees know the performance management system used in the organization.
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 More than 50% employees agreed that the present system is time consuming. 60% of the employees agreed that assessment given by their HOD is on unbiassed basis. 30% of the employees are agreed that team objectives do exist.

50% of the employees agreed that the focus of PMS is developmental. More than 50% of the employees are agreed that PMS in their organization is effective. Half of the employees agreed that participation in the PMS is upto the required level. 60% of the employees are agreed that personal development plans exist. 70% of the employees are agreed that unsatisfactory PMS directly relates to the employee turnover. 64% of the employees are agreed that self rating is useful in PMS.

CONCLUSION

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Employee satisfaction is vital factor for the performance of organization because it provides the basis for the foundation of the organization. On the basis of study which I gone through, I came to know that employee satisfaction level is high but there are chances of improvisation. To increase the level of satisfaction, some more steps can be taken by NOUVA SHOES Puram such as self rating by the employees and positive reinforcement system for increasing the performance of the employees. The primary objective was to study satisfaction with regard to performance management system of the organization and from study, I came to know that majority of the employees are satisfied with policies of the organization. To increase the percentage of satisfied employees, organization should work for them.

RECOMMENDATIONS & SUGGESTIONS

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 Appraisal of the performance should be done continuously. Positive reinforcement should be used for increasing the employee performance. Organization need to ensure role clarity among the employees. Appraiser should have proper knowledge regarding the different rating scales in the appraisal report. It is suggested that involvement of appraisal in performance management activities should be increased. Employees should be given chance to give suggestions regarding performance management system.

BIBLGRAPHY
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WEBSITES http://www.NOUVA SHOES shoes.com accessed on 15th July 2010 http://www.performancemanagementguide.com accessed on 17th July 2010 http://www.humanresources.about.com accessed on 16th July 2010 http://www.allbusiness.com accessed on 20th July 2010

QUESTIONNAIRE EMPLOYEE INFORMATION

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NAME: GENDER: AGE: PERIOD: PLEASE TICK MARK THE PROPER ANSWER

DESIGNATION: DEPARTMENT: SERVICE

Q-1) Do you know the present Performance management system used in your organization? [1] Yes [1] yes [2] no [2] No [3] some how [4] cant say Q-2) Are you satisfied with the present PMS used in your organization? Q-3) the current process is too time consuming. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-4) Do you think the assessment given by your HOD is on unbiased basis. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-5) Team objectives dont exist. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-6) The focus of performance management is developmental. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-7) Regular feedback of the work is given. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
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Q-8) PMS of your company motivates you for work. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-9) PMS is effective in your organization. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-10) Participation in the performance management process is up to the required level. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-11) Personal development plans exist. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-12) Feedback on good or poor progress is saved up to the end of the year. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-13) Is unsatisfactory PMS directly relates to the employee turnover [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-14) Self rating is very useful for PMS. [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree Q-15) What factors from the following are considered in your organization while appraising the performance. [1] Technicality & behavior [2] team work [3] productivity
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[4] waste management [5] other Q-16) How often the appraisal should be done? [1]once during the service period [3] never procedure should be reviewed? [1] yes [2] no [3] cant say Q-18) Based on your qualification, current role, responsibility & achievement, how do you rank your own performance? [1] excellent performance? [1] Increase benefits [2] negative reinforcement [3] freedom for work [4] positive reinforcement [5] any other [2] very good [3] average [4] good Q-19) What according to you is the best strategy for increasing the employee [2] continuously [4] cant say

Q-17) If given a chance or opportunity, would you like that the current

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