Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Performance Management System

Preeti Saini
Chandigarh University

Abstract:- Performance management is a integrated pressure and SPM. Second, whether the strategy linking the
process of performance planning, performance link between neutral pressure and SPM. Schleicher et al.
appraisal, performance feedback, performance (2019), gave a study on Evaluating the Effectiveness of
counseling or consolidates goal setting, performance Performance Management: A 30-Year Integrative abstract
appraisal into a single common system. It also enhances Review. This paper is focusing on the critical need of
the career growth and development planning. The aim of performance management. there are some necessary
such a system is to ensure that employee’s performance unanswered questions on the effectiveness of PM that
is supporting the company’s strategic aim. It should be actually affecting both research and practice as well.
linked with the organizations’ goals and objective. Also, Manville et al. (2020) , gave a study on Performance
employees need regular feedback and timely appraisal Management in hybrid organization: A study in social
on their performance and specific improvement area on housing. This paper is focusing on the overarching research
which they con work upon and rectify it. once that question that is what role does performance management
improvement area is identified employees can have clear play in the transition to a competitive hybridised social
picture of the skill set which they need to acquire to housing sector? Flapper et al. (1996), gave a study on
progress in their career. Rewards and recognition are Towards consistent performance management system. This
the ways to boost the morale of the employees. It satisfies paper is aiming on presenting a concrete method for
the fundamental need for praise and reinforce the constructing a consistent set of performance indicators
accurate behaviors, culture, social engagement. forming the idea of a consistent performance management
Therefore, it is beneficial for retention and engagement. system where explicit attention is paid to the relations
It provides the clarity also because sometimes employees between PIs. Lebas (1995), gave a study on Performance
are unsure of what exactly their role entails, what is measurement and performance management. The first
expected of them, and who they are to report to. Their section of the paper address the issue of why and what to
key area is not clearly defined to them. With the help of measure in the pms, therefore defining the term of
performance management company can make all of this performance however second section review how the
very clear. accounting model, the dominant model of economic
performance measurement is evolving from a retrospective
Keywords:- Performance Management, Appraisal, viewpoint of performance management. Bdareen (2020),
Compensation,360-Degree Feedback, Counseling, gave a study on The Impact of the Administrative
Development Planning. Empowerment on the Employees Performance Management
Process. The study aimed to introspect the impact of the
I. INTRODUCTION administrative empowerment on the worker performance.
To achieve the objectives of the study, the researcher
Franco-Santos et al. (2018), gave a study on prepared a questionnaire that was shared with all employees
Reviewing and theorizing the unintended consequences of in three managerial levels (high, middle, and low) total of 56
performance management systems. This paper presents a male and female employees. Bouloiz (2020), gave a study
mixed review of the literature on the unintended on Sustainable performance management using resilience
consequences of performance management systems. It also engineering. The study focusing on the consistent
develops a typology to explain how and why they takes improvement of the organisation performance however
place. This study focused on explaining which performance many other disturbances still occurring in their way because
management systems involving performance coming up of various random failures.Ormilla (2021), gave a study on
with planning, measures, targets, incentives and other means The Implementation of Results-Based Performance
of control. Alpena Agarwal (2020), gave a study on Management System. The study focused on identifying the
Investigating the design targets for having effective implementation of Results-Based PMS(RPMS) in the public
performance management system with the assistance of elementary schools in the Schools Division of Ifugao. The
QFD .This paper ensure worker feedback on all aspects and Stufflebeam named Input and Process model was used to
ensure that the individual act on the information which they determine the implementation of RPMS.
received. Also, it guarantee that accessibility of essential
conditions is to be performed. Soewarno et al. (2020), gave Research gap
a study on Mediating impact on strategy on competitive Is Strategic Performance Management System (SPMS)
pressure, stakeholder pressure and strategic performance is required to align with the Results-Based Performance
management (SPM).This paper ensure First, whether the Management System (RPMS) to run the organization more
strategy is linking the relationship between competitive effectively?

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Does Performance Management system of the organization H5: Continuous performance management is improving the
is to be aligned with human resource management and productivity of the organization.
reward system of the organization?
organisation adopting some new ways to improve the II. RESEARCH METHODOLOGY
performance management in the organisation?
A quantitative research design was used in this study.
Research objective Primary data collection method was used for collecting data
Therefore the purpose of this study is to make the pms It is a type of data which is collected directly from main
more effective in organisation by adopting new technologies sources through surveys, experiments and interviews etc. In
and thinking about more strategies .Aligning the PMS with this study, questionnaire method was used. Group of
the HRM and reward strategy is the way to engaged the questions were being asked and sent to respondents. Online
employees. Some new ways are to be find to improve the survey carried out here using internet and the questionnaire
performance management by analyzing the annual appraisal was created by google form. As it is the cheaper method
system in the organization/also link them with the also free from bias. Respondents have adequate time to give
organisations’ objectives. PMS helps individuals through responses.
consistent improvement of individual performance as well
as the organization .Also helps employee to advancing the This survey questions covering all the aspects of the
career growth to grow up in the organisation .By using tools study which is required in this research. The questionnaire
like kpis in different kra we can evaluate the candidate consisted of following: which type of performance
performance ultimately it will help employees to see where appraisal method is used in your organization, linking
they are lacking. Thus PMS is needed to be improved more PMS to compensation and reward strategy is a good way to
by adopting new trends to attain the productivity. motivate the employee, why your organization conduct
PMS etc.
Hypothesis of the Research
H0: Performance Management System does not have any The sample size of this survey is 15. The data
impact on reward and compensation system. gathered from the different industries’ employees and HR.
H1: Performance Management System have high impact on Target population was the people working in any industry
reward and compensation system. for instance automobile, education, ecommerce, fmcg, IT,
H2: Performance assessment does not helps in advancing etc. but should be 18 year above. Respondents were
the career of the employee and in improving the employee priority informed on the nature and goal of the study and
engagement. assuring that their identity will be kept confidential.
H3: Performance assessment helps in advancing the career Confidentiality of the data was kept. Those results will be
of the employee and in improving the employee engagement used for academic purpose only. During the conduct of
H4: Continuous performance management is not improving study no respondents were harmed or abused, physically or
the productivity of the organization. psychologically.

III. DATA ANALYSIS & INTERPRETATION

Descriptive statistics
var X var Y var Z

Mean 4.333333 Mean 8 Mean 23.33333

Standard Error 0.210819 Standard Error 0.654654 Standard Error 1.593638
Median 5 Median 10 Median 20
Mode 5 Mode 10 Mode 20
Standard Deviation 0.816497 Standard Deviation 2.535463 Standard Deviation 6.172134
Sample Variance 0.666667 Sample Variance 6.428571 Sample Variance 38.09524
Kurtosis -1.02198 Kurtosis -2.09402 Kurtosis -0.40385
Skewness -0.74023 Skewness -0.45508 Skewness -0.31157
Range 2 Range 5 Range 20
Minimum 3 Minimum 5 Minimum 10
Maximum 5 Maximum 10 Maximum 30
Sum 65 Sum 120 Sum 350
Count 15 Count 15 Count 15
Table 1:- Descriptive Statistics

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
This table 1 is respresnting the descriptive statistics in numeric form so I have scaled it as 10,20,30 , Highly
summary of the data which has been derived by using data beneficial is denoted as 30,at some extant it is beneficial is
analysis tool in excel. here in this table I picked up the denoted as20,not beneficial at all denoted as 10.Var Z
responses of three questions and scaled them in order to find representing the question- linking PMS to rewards and
out the descriptive summary. Var X resprenting the question compensation is good way to motivate the employees, in
How valuable are PMS at your organization ,in this this I modified the responses in numeric form like strongly
respondents have given responses between 1 to 5. Var Y agree as 10, agree 5 .Mean is 4.333 ,Mode 5,Median 5 for
respresnting the question- what are your thoughts on Var X and 8,10,10 for Var Y respectively and
employee self appraisal, here respondents answers were not 23.3333,20,20 for Var Z respectively. Descriptive statistics

correlation
var X var Y var Z
var X 1
var Y 0.345033 1
var Z 0.047246 0.228217732 1
Table 2: -Correlation Analysis

This table 2 is representing the correlation analysis of the 3 variable x,y and z .correlation among var x and y is 0.345033,
among var y and z is 0.228217732,among var z and x is 0.47246.This analysis helps us to to determine whether it is possible here
for the value of one to predict the potential value for the other one.

Above graph is representing the correlation of all the three variables on line chart.

Regression Statistics
Multiple R 0.34503278
R Square 0.119047619
Adjusted R Square 0.051282051
Standard Error 0.795285252
Observations 15
Table 3: Representation of Regression Analysis

This table 3 of regression statistics is predicting the output for the regression analysis of the two variable i.e. var x and y.
Here in this table the value named as R –Square is the actual coefficient of determination. Here R-Square is 0.119047619 means
11.9%. higher the coefficient of determination better is the model. Our is considered as good because it is above 0.8.

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

ANOVA
df SS MS F Significance F
Regression 1 1.111111111 1.111111111 1.756756757 0.207851771
Residual 13 8.222222222 0.632478632
Total 14 9.333333333
Coefficient Standard Upper Lower Upper
s Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercep 3.4444444 4.91098367 0.0002844 1.9292144 4.9596744
t 4 0.701375666 1 8 4 5 1.92921444 4.95967445
0.1111111 1.32542700 0.2078517 0.2922157 0.29221573
var Y 1 0.083830426 9 7 -0.0699935 4 -0.0699935 6
Table 4: - Anova

In table 4 ANOVA ,3.44444 ratio showing how the value of x, if all the variables of the model would be equal to 0.the value
of the analyzed parameter is influenced by the other factors which are not has been written in the model.0.111111 ratio predicting
the weight of variable y to x .the –ve sign indicates the negative effect.

RESIDUAL OUTPUT
Observation Predicted var X Residuals
1 4.555555556 -1.555555556
2 4 -1
3 4.555555556 -0.555555556
4 4 -1
5 4.555555556 0.444444444
6 4 1
7 4.555555556 0.444444444
8 4 1
9 4.555555556 0.444444444
10 4.555555556 0.444444444
11 4.555555556 -0.555555556
12 4.555555556 0.444444444
13 4 0
14 4 0
15 4.555555556 0.444444444
Table 5: -Residual Output

Residual are the differences between the one step predicted output from model and measured output from the validated data
set. It represents the part of validated data. Note that which is explained via model.

Figure 1: - Horizontal Histogram representing the different different appraisal method

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
In figure 1, horizontal bar graph is indicating that maximum of the organization is following checklist scale method and
graphical rating scale method for appraising their employees. 53.3% of the organization use checklist scale method and 46.7% use
graphing rate scale. Some use two to three methods, it is not compulsory to use only one method. Appraisal plays a vital role in
the performance management system of the organization. It is something which actually helps the employee to understand their
performance.

Fig 2: - Responses showing who all use 360-degree feedback method or not

In figure 2, as we all know about 260-degree feedback,360-degree feedback is the appraisal method which some
organization use for appraisal. It is method in which employees does not get feedback only from the manager rather get from their
peers, subordinates, manager, supervisor, top management and itself does. It is very useful method; employee gets an insight what
exactly his performance in hierarchy. As per my survey 53.3% organization use this method and other two which has 6.7%, they
don’t use it at all. It is helpful in IT sector mostly.

Fig 3 : - Pie chart showing responses of respondents who all are agree or disagree with the statement

Here figure 3 is depicting , survey 46.7% people strongly agree with this statement.40% thinks that yes it is useful
somehow.only 13.3% people strongly disagree with this Organisation now finding very important to link their pms strategy with
the compensation and reward.It includes monetory benefits like incentives ,bonuses and performance based bonus.rewards are
given to employees when they attain some targets.Also,It includes non monetory benefits also like vouchers,vacation off,one day
off etc.It actualy motivates the employees .

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

Fig 4:- Pie chart showing in how many organization T & D link to PMS

As figure 4 depicting the result for T&D, Training & development plays a vital role in enhancing the performance and
prepare them for their future growth. As per survey 60% people finds that yes linking pms with T&D actually the great strategy
which organization are nowadays adopting.40% people still confuse it should be linked or not.

Fig 5: - Representaion of thoughts of employeees

As per this figure 5, we can interpret that 53.3 % people find it at some extant beneficial.Self Assesment is necessary to
understand the inner stregth and core values ,also helps to find where we actually lacking.40% are those who really finds it highly
beneficial .Actually make them know what is the area of improvement ,accordingly they can work on that.

Fig 6: - Vertical bar graph depecting how valuable the PMS in different organization

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
In figure 6,it is found that 53.3% people really finds pms valuable at the workplace.26.7% finds that yes it is useful but not at
that extant,20% thinks it is so so at their workplace.It really needs to be more valuable. Pms is the system which actuaaly
evaluates the employee journey from the day of his joining to ending.It encourage them to involve more ,provides them the
autonomy to set their targets and attain them.

Fig 7: - Responses showing how frequently appraisal is given to employees

As Per this figure 7, we can easily interpret that only 20% people gets annual appraisal and 13.3% gets in 6 months. Others
thinks it should be once in a year or after 3 months or it can be weekly. So, it varies organization to organization. People having
different perception .

Fig 8: - How many organization conduct PIP

In this figure 8,data is about PIP, it is known as performance improvement plan. Rare are the organization who does not
conduct this otherwise most of the organization conduct it for those who needs improvement, who are low performer. Then they
put them under pip which usually comprises of 90 days.80% conduct this,13.3% does not conduct. It varies industry to industry.

Fig 9: - No.of organization want to make changes in their PMS

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
From figure 9,we can easily interpret that 46.7% organisation really thinking that it should be changed in next 8-12
months.with the changes in technology and market structure pms should be changed,so it should be flexible in nature.26.7%
thinks they don’t need to change their strategy.26.7% are still confuse whether they should change or not.

Fig 10: -Representing in which situation employees find themselves uncomfortable while apprasing

According to the figure 10,When mangager conducts the appraisal 33.3% find difficulty in conducting the appraisal for those
who are distant subordinates.40% thinks it is difficult for those who are the superior subordinates,other 40% thinks same for older
people but highly experienced.only 20% thnks difficult for highly compensated ones.

Fig 11: - Responses showing for what reason they conduct PMS

This figure 11, horizontal bar graph is interpreting that IV. CONCLUSION
66.7% people conduct pms to motivate the employees.60%
conducts to find the barriers slowing the performance of the As the pms is crucial part of the organization.
employees, so that they can eliminate it.53.3% conducts to According to the data analysis and interpretation I can say
retain them and other 53.3% to facilitates performance and that organization finding linking compensation to pms quite
terminate them, only 46.7% use this to foster the impactful .It is the thing which really motivates the
productivity. Organization use them for multi purposes as employees and make them engaged.so I am accepting
per their needs. hypothesis H1 pms have high impact on reward and
compensation .As per the respondents answers I found that
yes pms is helps in advancing the career i.e. promotions &
make them engaged .Hypothesis H3 is accepted based on
these responses .Hypothesis H5 is rejected because

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
respondents does not feel that pms improve the productivity [6]. Manville, G., & Greatbanks, R. (2020). Performance
of the organization. management in hybrid organisations: A study in social
housing. European Management Journal, 38(3), 533-
LIMITATIONS 545.https://doi.org/10.1016/j.emj.2020.04.006
[7]. Flapper, S. D. P., Fortuin, L., & Stoop, P. P. (1996).
The empirical results reported herein should be Towards consistent performance management
considered in the light of some limitations. Due to the systems. International Journal of Operations &
pandemic situation I could not conduct other secondary Production Management.
method of data collection. I have used a online survey [8]. Lebas, M. J. (1995). Performance measurement and
method for data collection. Due to the limited access I faced performance management. International journal of
a problem to collect responses from a large sample. This led production economics, 41(1-3), 23-35.
difficulty in identifying the significant relationships from the [9]. Al-bdareen, R. (2020). The Impact of the
data. In order to conclude a valid result, it is important to Administrative Empowerment on the Employees
have sufficient sample size but it was little hard for me at Performance Management Process. International
this point of pandemic to collect responses from a large Journal of Asian Social Science, 10(4), 193-206
sample size. Normally statistical tests need a larger sample [10]. Bouloiz, H. (2020). Sustainable performance
size but I had small sample size because of this I could not management using resilience
perform all statistical operations and testing. engineering. International Journal of Engineering
Business Management, 12, 1847979020976205.
FUTURE SCOPE [11]. Ormilla, R. C. G. (2021). The Implementation of
Results-Based Performance Management System in
As this research was totally about the pms. Public Elementary Schools. Management Research
Organizations can use this study to evaluate and rectify their Journal, 10(1), 13-23.
performance system. Questions given in surveys those can
be included in the performance system of organizations to
make it more impactful and useful for the employees.
Organizations find pms very useful in all aspects. There is
no doubt in it that they are changing and growing from
traditional ways to modern ways. Innovative strategies and
ways adopted by the organization to make it more impactful.
Also, it is very difficult to keep an eye over the performance
of each and every employee. By using software’s, tools and
kpis organizations can easily evaluate the performance and
make a record of it.so by keep adopting new trends and by
using new technology pms can be more stronger and
beneficial for the organization. I have contributed to the
state-of-art of literature of performance management system
that can be used by other researchers

REFERENCES

[1]. Franco‐Santos, M., & Otley, D. (2018). Reviewing and

theorizing the unintended
[2]. consequences of performance management
systems. International Journal of Management
Reviews, 20(3), 696-
730.https://doi.org/10.1111/ijmr.12183
[3]. Agarwal, A. (2020). Investigating design targets for
effective performance management system: an
application of balance scorecard using QFD. Journal
of Advances in Management Research.
[4]. Soewarno, N., & Tjahjadi, B. (2020). Mediating effect
of strategy on competitive pressure, stakeholder
pressure and strategic performance management
(SPM): evidence from HEIs in
Indonesia. Benchmarking: An International Journal.
[5]. Schleicher, D. J., Baumann, H. M., Sullivan, D. W., &
Yim, J. (2019). Evaluating the effectiveness of
performance management: A 30-year integrative
conceptual review. Journal of Applied
Psychology, 104(7), 851

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
APPENDIX

Survey on Performance Management System

I am Preeti pursuing MBA Strategic HR from Chandigarh University. I am writing research paper
on Performance Management System. I am collecting data through these questionnaires so that I can
easily analyses it and use it in my further study.

* Required

1. Name *

2. Email id *

3. organization Name *

4. industry type *

5. why your organization conducting performance management system? *

Check all that apply.

retaining the employees

facilitating promotion and transfers and terminate the employeesto foster the
productivity
to motivate them
to find barriers slowing the performance of an individual

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
6. Which type of performance appraisal method is used in your organization? *
Check all that apply.
critical incident graphing
rating scalechecklist scale
essay rating
MBO
ranking

7. does your organisation use 360 degree feedback appraisal method if no then why so? *

8. linking PMS to rewards and compensation is good way to motivate the employees? *

Mark only one oval.

Strongly disagreeDisagree

NeutralAgree

Strongly agree

9. does your organization linking the PMS to training & development? *

Mark only one oval.

Yes,

No Maybe

10. How valuable are PMS at your organization? *

Mark only one oval.

1 2 3 4 5

11. how frequently you give appraisal to your employees? *

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Volume 6, Issue 6, June – 2021 International Journal of Innovative Science and Research Technology
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12. do you conduct Performance Improvement Plan for low performer? *

Mark only one oval.

yes

no

Other:

13. are you planning to make some changes in your performance management system in next
8-12 months? *

Mark only one oval.

yes

no

I don’t know

14. 14. what are your thoughts on employee self-appraisal? *

Mark only one oval.

Highly beneficial
not beneficial at all

at some extant it is beneficial

15. In which situation you find yourself uncomfortable when appraising *

Check all that apply.

Distant subordinate
superior subordinate
older but highly experienced subordinate
highly compensated employee
Other:

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