HRM Project Proposal

By Group 3, Section A

Topic: Comparative Analysis of Performance Management systems in Public and Private sector
companies.

Introduction: Performance Management System is central to any organization, be it a Private sector

organization or a Public sector company, or For-Profit or Non-Profit Organizations. It refers to a
system, which often aided by technology, assesses the effectiveness and efficiency of an employee in
attaining the Organizational goals (and often Personal goals aligned with those of the organization).
The report focuses on a comparative study between the current Performance Management Systems
in both Public Sector and Private Sector companies. Public sector companies and private sector
companies have their own goals and strategies, which are different from each other. In downturns,
public sector faces increasing demand of their services, and public scrutiny on how taxpayers’ money
is spent. Public sector stakeholders – tax-payers (citizens), media, NGOs, often armed with
legislations (eg. RTI Act, 2005) are increasingly vocal in their expectation to see performance
improved, and service levels brought in line with those of the private sector companies. The public
sector is more complex than the private sector which has the luxury of a single dominant objective,
that of profit maximization. The public sector’s performance objectives are sometimes complicated by
shared or sometimes conflicting organizational goals, the demands of stakeholders and the influence
of politicians. Similarly, private sector has its highly competitive external environment to deal with,
while managing high employee performance, employee retention and talent management at the same
time. This report focuses on understanding the practices in Performance Management systems in
Private sector companies and Public sector companies with regards to their organizational goals and
also aims at finding the performance management practices that work best in private and public
sector respectively.

Objectives: The primary Objectives of the project are as follows:

1. Study and Review of performance management system of public and private sector
companies.
2. Comparative Analysis of PMS in private and public sectors.
3. Studying the correlation between PMS and Employee Attrition.
4. Finding out sentiments and perceptions of employees about PMS in the sectors under study.
5. Study of role of performance management systems in different economic scenarios
(recession etc.)

Methodology: The project will be executed in four stages:

1. Initial Study and Literature Review:
2. Data Collection:
Data collection would be done through primary and secondary research techniques. Personal
Interviews would be used as a tool for primary research while secondary data from journals,
databases and research articles would be used to support primary data.

3. Data Analysis would be done on the data collected on Step 2

4. Conclusion and Recommendations