Project Report

On
EMPLOYEE MOTIVATION
In

SIGMA CORPORATION INDIA LTD

Submitted towards the partial fulfillment of requirement

For the award of the degree of Bachelor of Business Administration (BBA)
SESSION: 2020-2021

Submitted To: Submitted By:

Controller of Examinations Name: Mansi Maan
M.D. University Class: BBA 6th Sem
Rohtak Regn. No:
1811350454
Univ. Roll No:
 GOVT. COLLEGE FOR WOMEN FARIDABAD
(Affiliated to M. D. University Rohtak)

DECLARATION

I, Mansi Maan student of Govt. College for Women, Faridabad Hereby

declare that the project entitled “Employee Motivation at Sigma
Corporation India Limited” is an Original work and the same has not been
submitted to any other institution for the award of any other degree. The
feasible suggestions have been duly incorporated in consultation with the
supervisor.

Mansi Maan
 ACKNOWLEDGMENT

The project of this nature is arduous task stretching over a period of time,
completing a project like this one takes the effort and cooperation of many
people.

Although this project report is being brought in my name, it bears an imprint

of guidance and cooperation of many individuals. Several persons with
whom I integrated have contributed significantly to the successful
completion of the project study. In the successful & trouble free completion
of my final term project titled “Employee Motivation”, I am graceful to
Govt. College for Women Faridabad for helping us towards the
completion of the project.

I am also desirous of mentioning my profound indebtedness to Faculty

member of Govt. College for Women Faridabad for the valuable advice,
guidance, precious time and support she offered.

I would also like to thank all the executives who shared their precious time
and experience with me.

Last but not the least, I extend my sincere thanks to all the staff members of
Sigma Corporation India Ltd for their cooperation.
 Mansi Maan

PREFACE

Project is part of our curriculum that gives us knowledge about practical

work. This also helped us to understand the practical aspects of the

conceptual studies learnt by them in the commerce subject. The Project

Report presented here is the part of the syllabus of the BBA degree provided

by M.D. University, Rohtak.

Each student pursuing this course is required to submit a particular report on

the topic assigned to him in his course. The essential purpose of this report is

to given an exposure and detailed outlook to the student on the practical

concept, which they already studied. For the purpose, I was assigned the

report for the “Employee Motivation” in Sigma Corporation India

Limited.

I have been really fortunate regarding my summer training because I got an

opportunity to work with one of the biggest organization of this country.

During the shot span of two months, I have learnt a large number of things

about the business world-the sweet & bitter truth.

 Mansi
Maan

INDEX
 SNO. CONTENTS

1. Company profile

2. Literature Review

3. Research methodology
a) Introduction
b) Objectives
c) Research design
d) Method of data collection
e) Limitations of the study

4. Data Analysis and Interpretation

5. Conclusion

6. Recommendation

7. Appendix
a) Bibliography

b) Questionnaire
 CHAPTER
COMPANY PROFILE
 COMPANY PROFILE

HISTORY

HPL Additives Limited was incepted in 1964 and had started as a manufacturer of
Polymer Additive, it has successfully diversified into Biocides, Polymerization
Catalysts, Photographic Chemicals, and Pharma & Agro intermediates.

HPL Additives Limited has four state-of-the-art manufacturing units in North India –
two at Ballabhgarh, one at Dudhola and one at Dera Bassi. The plants have a high
degree of automation and laboratory facilities to control and monitor the processes to
ensure flawless, unswerving quality and safety. The group has 80% share in the
domestic market and exports to more than 42 countries across the world.

HPL Additives Limited believes in providing solutions rather than products only and
has added many products in the same group and has gone for diversification at
appropriate opportunities. At present, there are around 60 products for different
applications and many more in pipe line.

All this has been made possible by a competent and dedicated workforce of 750
personnel comprising engineers, scientists, technicians and management experts,
commercial and marketing staff amongst others. Working in a congenial
environment, the team members are empowered to make decisions so as to effectively
respond to market dynamics.

The group’s R&D centre is fitted with the requisite testing equipments, bench scale
facilities and a multi-functional pilot plant. Customer satisfaction is of paramount
importance to HPL Additives Limited. Periodic initiatives to map dynamic customer
needs and their satisfaction levels with HPLA products and services are undertaken.
These precious inputs, form the basis of the company’s continuous improvement
plans to deliver value offering. HPLA has its values high levels of Quality, Service
Efficiency, and Safety and Environmental consciousness.

HPL Additives Limited believes in continual improvement to meet the changing

requirements of the customer. This philosophy has helped us to keep ahead of
competition and to emerge as a Leader. Scientists and Engineers are always working
on to improve the products, processes and technologies.

HPL Additives Limited has a well established distribution network including

distributors and own offices in many countries to run its supply chain management. A
logistics partner in Europe ensures smooth supply-line to large customers with depot
inventories. The company also has an office in USA.

HPL Additives Limited was one of country’s first chemical manufacturing units to
establish QMS and got ISO 9001 in 1996. In its quest to meet obligations towards
Environment as a responsible corporate, an EMS system was set up successfully in
2001 with accreditation from DNV for ISO 14001. Not satisfied with status quo, HPL
Additives Limited continued in its journey towards fulfilling its commitment to
safety, health and social responsibility and has got accreditation for OHSAS 18001 in
March, 2006.

Right from the top, HPL Additives Limited is a technocrat corporation. There is a lot
of focus on new product range, technologies, environment friendly and safe
processes, product application and technical support. The management of the group
has created a self-sufficient technology infrastructure.
 MILESTONES

1964 Established by Mr. Harcharan Singh with a meager capital of RS 10000/- at

Model Town, New Delhi.
1966 Shifted to Tigaon Road, Ballabhgarh.. DNPT was the first product
1970 Shifted to Plot No. 8, Sector – 25, Ballabhgarh. Later on acquired Plot No. 6 & 7,
now the spread over is 6 acres of land. The major product of this unit is chemical
blowing agent especially Azodicarbonamide (ADC)
1976 HPL started its sister concern Mona Agro Chemicals at 3 acres of land Plot No.
72, Sector – 25, Ballabhgarh with Guar Gum as the First product.
Later on its name had been changed as HPL Industries Pvt. Ltd and DNPT is its
major product.
1995 The Third unit of HPL, known as HPL Chemicals Ltd., started at Derabassi, Dist
– Mohali to manufacture Hydrazine Hydrate as major product. The spread over of
this unit is 20 acres of land.
1997 HPL Additives Limited was one of country’s first chemical manufacturing units
to establish QMS and got ISO 9001 for Quality.
1999 HPL started its Fourth Unit, spread over is 23 acres of land, at Village Dudhola,
Tehsil Palwal, Distt. Faridabad to manufacture anti-oxidants and U-V Absorbers.
2000-06 Got ISO 14001 certificate for Environment.
2008 HPL got DSIR National Award for R&D efforts in Chemical and Allied
Industries Sector for the year 2003 from the Government of India
2009 Certified OHSAS 18001 for Industrial Health & Safety.
HPL R & D section got the prestigious Dr. P. C. Ray Award for development of
Indigenous Technology for the year 2005-06 by Indian Chemical Council.
The renowned business magazine (Business Sphere” has awarded HPL Golden
Trophy for the year 2006.
2010 The name of the company has been changed from High Polymers Labs Ltd. to
HPL Additives Ltd.
Got First Grade Award for its Export performance during year 2009-10 conferred
by Basic Chemicals & Cosmetics Export promotion Council (CHEMEXCIL),
Mumbai, Ministry of Commerce & Industry, Govt. of India
2011 These 2 sister concerns, HPL Chemical Ltd, HPL Industries Pvt. Ltd, merged with
the parent company HPL Additives Ltd.
Got the Best Research Award (Polymer Science, Technology & Engineering) for
commercializing Anti-oxidants product by Plastindia Foundation.

AWARDS AND ACHIEVEMENTS

 HPL Additives Limited is the proud recipient of DSIR National Award for R&D
efforts in Chemical and Allied Industries sector for the year 2003 from the
Government of India.

 The company also bagged ICC Acharya PC Ray Award for development of
Indigenous Technology for the year 2005-06 by Indian Chemical Council.

 The company has also received First Grade Award for its Export performance
during year 2007-08 conferred by Basic Chemicals & Cosmetics Export
promotion Council (CHEMEXCIL), Mumbai, Ministry of Commerce & Industry,
Govt. of India

 The renowned business magazine (Business Sphere” has awarded HPL Golden
Trophy for the year 2009.

 Plasticon Award for the best research in 2010.

MISSION
 To build a successful business enterprise on the key fundamentals of quality, delivery
and service.

OBJECTIVES
     
To ensure customer satisfaction through consistent quality, timely delivery and a high
level of service.

To continuously invest in modernization, product development and research to improve

productivity and efficiency.

To maintain and build high employee morale through human resource development
programmers.

To develop a reliable supply base to ensure quality and timely delivery of material.

To be a financially successful and profitable business enterprise.

PHILOSOPHY

Customer Care
HPL believes that all its achievements are through interactive relationship with
customers. Be it external customer or internal customers. HPL is even thankful to its
competitors who have a significant contribution to its success. We owe our success to our
customers and shall strive to deliver the best to them - Always.

Vendor Development
  
We at HPL, feel that vendor is a partner to our strength and occupies a seat only next to
our customer. A closer interaction with vendors has given us a competitive edge in
sourcin1g our needs. Honestly, we could not be fair to our customers without the support
of our vendors.
 
Employee Care
  
HPL is a professional corporation. It believes that it is the people who make an
organization successful. It enjoys very cordial Industrial Relations. Motivation, Rewards
and Welfare Schemes for employees and their families have further strengthened the
relationship and professional commitment.

Socially Responsible Business

 
It is our constant effort to make our products, processes, installations safer and
environment friendly. New environment friendly technologies, processes are being
researched constantly.
 CHAPTER

LITERATURE REVIEW
 LITERATURE REVIEW

AN INTRODUCTION OF PERFORMANCE APPRAISAL

WHAT IS PERFORMANCE MANAGEMENT?

Performance management is the activity of tracking performance against targets and

identifying opportunities for improvement - but not just looking back at past
performance. The focus of performance management is the future - what do you need to
be able to do and how can you do things better? Managing performance is about
managing for results. Performance-based management at any level in the organization
should demonstrate that

 You know what you are aiming for

 You know what you have to do to meet your objectives
 You know how to measure progress towards your objectives
 You can detect performance problems and remedy them

WHY IT IS IMPORTANT?

The Modernizing Government agenda sets challenging new performance objectives for
organizations, from the delivery of high quality services that meet the needs of their
customers and stakeholders, to doing more within the constraints of available resources,
through to continuous improvement in how the organization itself operates. Performance
management underpins the operations and processes within a strategic change program
framework. Sound practices and targets, which are both flexible and reactive to change,
are needed to achieve performance improvement.
The effective performance of your organization depends on the contributions of activities
at all levels - from top management policy development through to efficiently run
operations.

In response to the pressures and opportunities for improving organizational performance,

you need to understand how to define and measure performance as part of a concerted
strategy for relevant, successful and cost-effective operations.

CRITICAL FACTORS FOR SUCCESS

 Focusing on outcomes that meet business objectives, rather than outputs
 Managing performance by cascading down from the top and building bottom-up
 Defining and using measures that evolve over time
 Using a mix of short and long term measures, and selecting measures that link
cause and effect
 Measuring effectiveness (doing the right things) and efficiency (doing things
right) in parallel
 Relating individuals' reward and remuneration with achievement of outcomes.

WHO IS INVOLVED?
Business managers are responsible for setting targets and managing performance against
those targets; contract managers monitor service performance from the customer
viewpoint; service providers supply performance information.

PRINCIPLES
Performance management should be an integrated part of a business lifecycle helping an
organization to mature through evolving and changing performance measures, from their
definition through to monitoring and review in addition, by including the IS/IT
component throughout this lifecycle, rather than just considering it as a 'downstream' cost
of provision, there should be enhanced benefits from an increased and more effective
contribution from any investment made in IS/IT.
You will need to ensure that you have adopted sound practices in commissioning and
acquiring IS/IT services to achieve performance improvement. Performance management
identifies opportunities for maximizing improvements in managing service delivery in the
future. Performance management helps you to make decisions about investment routes,
affordability and setting investment priorities in the face of competing demands for
resources.

MANAGING FOR RESULTS

Managing for results requires the organization to focus on the outputs of the processes
and activities undertaken by the organization at varying levels. Together these outputs
will contribute to the achievement of the outcomes desired by the organization and those
of the government as a whole.

LEVELS OF PERFORMANCE MANAGEMENT

1. The effective performance of your organization depends on the contribution of

activities at all levels - from top management policy development through to
efficiently run operations. There are three or four levels of performance management
in the model framework below, some organizations may combine the strategic level
with the organization’s priorities level.

2. Organization’s priorities: at the highest level performance management is rooted in

the organization’s long term business strategy. Measures at this level are of impact,
resource utilization and public service improvement.

3. Strategic level performance management: at this level the management concern is

from an "outside in" as well as an internal perspective. Measures are of outcome, such
as volume and value of service take-up, upward trends for inclusion, staff and users'
satisfaction.
4. Program level performance management: performance management at this level
focused on the desired results of programs of change, to demonstrate what has been
accomplished. The measures used would include those stated in individual business
cases. Benefits management would help to determine if these are achieved.

5. Tactical or operational service level performance management: here the management

focus is concerned with service delivery and outputs, using conventional service level
agreement approaches and related measures of aspects such as volumes and quality.

Although performance measures and indicators may be different at each level, they will
need to be.

 Directional - to confirm that you are on track to reach the goals.

 Quantitative - to show what has been achieved and how much more is to be done.
 Worthwhile - adding more value to the business than they cost to collect and use.

VALUE FOR MONEY

You must be able to demonstrate that you have achieved value for money in your
operations. Value for money is taken to cover three measures of performance:

 Economy - Minimizing the cost of resources used for an activity, having regard to
appropriate quality
 Efficiency - the relationship between outputs, in terms of goods, services or other
results and the resources used to produce them
 Effectiveness - the extent to which objectives have been achieved, and the
relationship between the intended impacts and actual impacts of an activity.
MEASURES AND METRICS

You should use these evaluation criteria for measures and metrics:

 Are you measuring the right thing?

 Do you have the right measures?
 Are the measures used in the right ways?
 Do you determine the quality of a particular performance metric using the SMART
test (Specific, Measurable, Attainable, Relevant, Timely)?

The procedures and measures used in performance management will depend, among
other factors, on the type of business process which is being measured. A business
process is assumed to be made up of a number of activities which transform inputs into
outputs and contribute to the realization of outcomes. The customers for a process may be
external (for example, members of the public) or internal, within the same organization or
elsewhere in the public sector.

BUSINESS PROCESSES CAN BE DISTINGUISH BY:

 The extent to which the activities involved are people-oriented as opposed to
automated
 Whether the activities are primarily 'front-office' or 'back-office' - that is, the amount
of direct contact which the staff have with the customers or recipients of the process
 Whether the process itself is the important feature of the activity - for example, in
delivering consultancy - or whether the activities are concerned primarily with the
generation of defined outputs
 The extent to which the activity is customized or tailored to the needs of each
customer, as opposed to being routine and procedural
 The amount of discretion which needs to be exercised in the activities
 The duration of the contact with the customer.

PROCESSES

You will need to review the effectiveness of your procedures for:

 Setting performance targets
 Designing measures of performance relevant to the targets
 Systematically and accurately measuring outcomes
 Assessing the performance of external service providers
 Using results for informed decision-making
 Improving performance.

Research shows that most organizations have the components of performance

management in place, but they are not always used to overall advantage. A possible five-
step approach that could help organizations in improving the performance management
of the IS/IT contribution is outlined below, with suggested techniques.

STEP 1: IDENTIFY YOUR LEVEL OF MATURITY IN PERFORMANCEE

MANAGEMENT

 Look at how the organization is performing in all its aspects of performance

management - from direction setting through to review and measurable improvement.
 Do an assessment; this will help to identify your organization’s maturity and the
strengths and weaknesses.
 Establish where you are now as a series of baselines, looking at performance
management at strategic program, tactical and operational levels.
 Bottom-up measures of economy and efficiency are likely to be reasonably strong and
have good management. This may not be so well developed for effectiveness
measures
 Innovation, process improvement, customer satisfaction, and contribution to policy
objectives. Most organizations have a good understanding of financial measure; this
level of understanding needs to be developed for other measures.
 Techniques: Assessment; baseline

STEP2: IDENTIFY WHERE PERFORMANCE MANAGEMENT IS

IMPORTANT TO YOUR ORGANISATION

 Is it in setting direction or ensuring the delivery of required benefits or improving the

alignment, performance and contribution of the internal and external resources used
by the organization?
 Identify the values for your organization.
 Key values for safety critical operational services are speed and integrity of
information. A different organization might place high value on information flows or
on single points of access to information at a contact/call centre.
 Techniques: Value chain analysis; benchmarking with other organizations (which
may identify things you had not thought of)

STEP 3: RESOLVE ANY MISMATCH BETWEEN STEP 1 AND 2

 Review performance management at each of the four levels - (organization, strategic,

program and tactical). Are there weaknesses in areas that are important to your
organization?
 Techniques: to become more outward looking and customer-focused, use the well
established balanced scorecard and EFQM® techniques.
 To answer questions about where IT makes a contribution, use Goals, Questions and
Metrics (GQM) to identify and define measures.
STEP 4: ESTABLISH WHERE YOU WANT TO BE AND BEGIN TO BUILD
PERFORMANCE MANAGEMENT INTO BUSINESS PROCESSES AND INTO
THE CULTURE

 The aim is to have target, measurement and review processes for those things that the
business considers important such as product, process, service and staff.
 You will have lots of measures which need to be prioritized against your particular
perspective on effectiveness, efficiency and economy and against your values.
 establish benefits management as a norm
 Use databases to collect Techniques performance information and analyze trends
 Include performance management in the business, programme and project lifecycle

STEP 5: FEED INFORMATION BACK INTO PERFORMANCE

IMPROVEMENT

Monitor and take action on:

 We achieve what we set out to do?

 Where are the opportunities to improve?
 What can we do to improve? You are seeking answers to:
 What is achievable?
 What is important for our organization?
 What was achieved?

Techniques: Process assessment; your own targets, looking at benchmarks from the
outside world.
 

The process of performance management

OBJECTIVES OF A PERFORMANCE MANAGEMENT SYSTEM

Performance management is an integral part of a comprehensive human resource

management strategy. Its objective is to maximize individuals' performance and potential
with a view to attaining organizational goals and enhancing overall effectiveness and
productivity.

A staff performance management system aims at: -

To help achieve departmental objectives through staff

Departments formulate strategies and objectives to support their vision, mission and
values. To achieve these broad objectives, departments have to turn them into specific
objectives and targets for the divisions, sections, units and subsequently individual job
objectives and targets for implementation. As individual job objectives are linked to those
of departments', the performance of individual officers contributes to the delivery of
departmental objectives.

To evaluate performance and improve communication between

managers and staff on managing performance
The staff performance management system provides a mechanism to monitor and
evaluate staff performance. Performance objectives are set at the beginning of the
performance management cycle through open discussion between the supervisors and the
appraisees. Progress is monitored regularly and feedback from staff and supervisors is
collated to help clarify objectives and output expectation; and to enhance performance.

To provide opportunities for development

The staff performance management system serves as a multi-purpose management tool. It
provides valuable information to help identify individual training needs so as to enhance
performance and to develop the potential of the staff for further advancement.
The following figure provides an illustration of how performance management links with
other human resource functions.

OVERALL GOAL AND FOCUS OF PERFORMANCE

MANAGEMENT

The overall goal of performance management is to ensure that the organization and all
of its subsystems (processes, departments, teams, employees, etc.) are working together
in an optimum fashion to achieve the results desired by the organization.

PERFORMANCE IMPROVEMENT OF THE ORGANISATION OR

A SUBSYSTEM IS AN INTEGRATED PROCESS

Note that because performance management strives to optimize results and alignment of
all subsystems to achieve the overall results of the organization, any focus of
performance management within the organization (whether on department, process,
employees, etc.) should ultimately affect overall organizational performance management
as well.

ONGOING ACTIVITIES OF PERFORMANCE MANAGEMENT

Achieving the overall goal requires several ongoing activities, including identification
and prioritization of desired results, establishing means to measure progress toward those
results, setting standards for assessing how well results were achieved, tracking and
measuring progress toward results, exchanging ongoing feedback among those
participants working to achieve results, periodically reviewing progress, reinforcing
activities that achieve results and intervening to improve progress where needed. Note
that results themselves are also measures.

Note: these general activities are somewhat similar to several other major approaches in
organizations, e.g., strategic planning, management by objectives, Total Quality
Management, etc. Performance management brings focus on overall results, measuring
results, focused and ongoing feedback about results, and development plans to improve
results. The results measurements themselves are not the ultimate priority as much as
ongoing feedback and adjustments to meet results.

The steps in performance management are also similar to those in a well-designed

training process, when the process can be integrated with the overall goals of the organi
zation. Trainers are focusing much more on results for performance. Many trainers with
this priority now call themselves performance consultants.

BASIC STEPS
Various authors propose various steps for performance management. The typical
performance management process includes some or all of the following steps, whether in
performance management of organizations, subsystems, processes, etc. Note that how the
steps are carried out can vary widely, depending on the focus of the performance efforts
and who is in charge of carrying it out. For example, an economist might identify
financial results, such as return on investment, profit rate, etc. An industrial psychologist
might identify more human-based results, such as employee productivity.
 CHAPTER
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

Introduction

In general terms research methodology is the process of carrying out research in a

formalized and scientific way. It is one manner in which one proceeds with his research
design adopted. The research done is exploratory and analytical in nature. The major
emphasis in studies was on discovery of new ideas and insights. Research is done as-

 Firstly to understand the concept of performance management.

 What is the area of performance management?

 How it is being implemented in HPL ADDITIVES LTD?

 What is the assessment process of performance management?

 Did questionnaire survey with the sample size of 30.It was conducted for three main
departments-Sales, Support and Service?

 Did analysis and prepared Column charts according to the questionnaire survey
response?
The assessment is then done to bring out what is the process being followed in HPL
Additives Ltd regarding performance management.

Performance management mainly include following things:

Performance management is the systematic process by which an agency involves its

employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and goals.

 Planning work and setting expectations,

 Continually monitoring performance,
 Developing the capacity to perform,
 Periodically rating performance in a summary fashion, and
 Rewarding good performance.
The revisions made in 1995 to the Government wide performance appraisal and awards
regulations support sound management principles. Great care was taken to ensure that the
requirements those regulations establish would complement and not conflict with the
kinds of activities and actions practiced in effective organizations as m after of course.
Additional background information on performance management can be found in the
following

Planning

In an effective organization, work is planned out in advance. Planning means setting

performance expectations and goals for groups and individuals to channel their efforts
towards achieving the organizational objectives. Getting employees involved in the
planning process will help them understand the goals of the organization, what needs to
be done, why it needs to be done, and how well it should be done.

The regulatory requirements for planning employees' performance include establishing

the elements and standards of their performance appraisal plans. Performance elements
and standards should be measurable, understandable, verifiable, equitable, and
achievable. Through critical elements, employees are held accountable as individuals for
work assignments or responsibilities. Employee performance plans should be flexible so
that they can be adjusted for changing program objectives and work requirements. When
used effectively, these plans can be beneficial working documents that are discussed
often, and not merely paperwork that is filed in a drawer and seen only when ratings of
record are requirement

Monitoring
In an effective organization, assignments and projects are monitored continually.
Monitoring well means consistently measuring performance and providing ongoing
feedback to employees and work groups on their progress toward reaching their goals.
Regulatory requirements for monitoring performance include conducting progress
reviews with employees where their performance is compared against their elements and
standards. Ongoing monitoring provides the opportunity to check how well employees
are meeting predetermined standards and to make changes to unrealistic or problematic
standards. And by monitoring continually, unacceptable performance can be identified at
any time during the appraisal period and assistance provided to address such performance
rather than wait until the end of the period when summary rating levels are assigned.
introduction of new technology. Carrying out the processes of performance management
provides an excellent opportunity to identify developmental needs. During planning and
monitoring of work, deficiencies in performance become evident and can be addressed.
Areas for improving good performance also stand out, and action can be taken to help
successful employees improve even further.

Rating

From time to time, organizations find it useful to summarize employee performance. This
can be helpful for looking at and comparing performance over time or among various
employees. Organizations need to know who their best performers are.

Within the context of formal performance appraisal requirements, rating means

evaluating employee or group performance against the elements and standards in an
employee's performance plan and assigning a summary rating of record. The rating of
record is assigned according to procedures included in the organization's appraisal
program. It is based on work performed during an entire appraisal period. The rating of
record has a bearing on various other personnel actions; such as granting within-grade
pay increases and determining additional retention service credit in a reduction in force.
Note: Although group performance may have an impact on an employee's summary
rating, a rating of record is assigned only to an individual, not to a group.
 Rewarding

In an effective organization, rewards are used well. Rewarding means recognizing

employees, individually and as members of groups, for their performance and
acknowledging their contributions to the agency's mission. A basic principle of effective
management is that all behavior is controlled by its consequences. Those consequences
can and should be both formal and informal and both positive and negative.
Good performance is recognized without waiting for nominations for formal awards to be
solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the
actions that reward good performance — like saying "Thank you" — don't require a
specific regulatory authority. Nonetheless, awards regulations provide a broad range of
forms that more formal rewards can take, such as cash, time off, and many no monetary
items. The regulations also cover a variety of contributions that can be rewarded, from
suggestions to group accomplishments.

Objective of the Study

The following are the objectives of the study – 

1. To develop my understanding of the subject. Performance Appraisal System
implemented in various Organizations varies according to the need and suitability.
Through my research, I have tried to study the kind of Appraisal used in the
Organization and the various pros and cons of this type of system.

2. To conduct a study on social behavior. Social behavior is a very unpredictable aspect of

human life but social research is an attempt to acquire knowledge and to use the
same for social development.

3. To enhance the welfare of employees.

 The Appraisal system is conceived by the Management but mostly doesn’t take
into consideration the opinion of the employees. This can lead to adverse
problems in the Organization. Therefore by this study I have attempted to put
forth the opinion of the employee with respect to the acceptability of the
Performance Appraisal System.

4. To exercise social control and predict changes in behavior.

The ultimate object of my research is to make it possible to predict the behavior
of individuals by studying the factors that govern and guide them.

RESEARCH DESIGN:

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:

a) Determining Data Collection Design

                 b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) Explorative Research Design:

Explorative studies are undertaken with a view to know more about the problem. These
studies help in a proper definition of the problem, and development of specific hypothesis
is to be tested later by more conclusive research designs. Its basic purpose is to identify
factors underlying a problem and to determine which one of them need to be further
researched by using rigorous conclusive research designs.

(2) Conclusive Research Design:

Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions.

These studies can be either:

a) Descriptive or

b) Experimental   

Thus, it was mix of both the tools of Research Design that is, Explorative as well as
Conclusive.

METHODS OF DATA COLLECTION

Data Collection Method

a. Secondary Data - It refers to the data that has already been collected, the
secondary data, which has been used to carry out this study, are as follows:

* Performance assessment and development plan manual.

* Company’s Internet site (www.HPL Additives Ltd.in)
* Other relevant study materials and websites.
Evidence, in the form of a hypothesis test, indicates otherwise — that is, when researcher
has a certain degree of confidence, usually 95% to 99%, that the data does not support the
null hypothesis. It is possible for an experiment to fail to reject the null hypothesis.

H0 = the null hypothesis

LIMITATIONS OF THE STUDY

 The result depends upon the status of the employee regarding the output of the
work, designation.
 The result depends upon the information given by the employees. Hence the
information provided by subjected to satisfaction about the training.
 Due to constraint of time only a specific sample size from the entire population of
employees have been calculated for the study.
 The sample of the study is very small to know the actual result of the study.
 FEATURES OF A GOOD PERFORMANCE MANAGEMENT
SYSTEM

A good staff performance management system normally consists of the following

features:

 Fair and open Objective -The system designed should aim to facilitate objective and
fair assessment by the management and encourage frank and constructive feedback of
appraises. These can be achieved through:
 Setting clear targets and standards;
 Providing opportunities for supervisors to inform appraises of their performance
regularly, to be accompanied by timely coaching and counseling;
 Permitting the appraise to have access to the entire report and to review the appraisal
before the appraisal interview; and
 Where necessary an assessment panel should be formed to ensure fairness in
performance rating.

Adopting such an open system for staff performance also supports the spirit of the
Personal Data (Privacy) Ordinance.

COMPETENCY-BASED

Competency refers to the knowledge, attributes, attitude and skills required to perform a
job effectively. There are two broad categories of competencies: core competencies and
functional competencies. Core competencies are the generic competencies associated
with effective performance required by a group of job holders in a department across
different divisions/sections. An example is managerial competencies required for staff in
managerial positions. Functional competencies are the competencies specific to certain
job functions, such as computer programming skills for programmers in the Computer
Section and classroom skills for trainers in the Training Division of a department.
Competencies are reflected in a set of desirable behavior patterns which are observable,
measurable and can be tracked and monitored.

Developing and using a competency-based approach enables departments to use a

common language and structured way to define and describe appropriate job behaviors at
different ranks as officer’s progress through the grade. The approach help to assess staff's
potential and promo ability to the next higher rank and identify development needs of the
staff. It also enhances the objectivity and transparency of performance assessment.

When core competency-based approach is adopted, departments need to ensure that the
competencies are developed properly by :

 Aligning individual performance objectives with departmental ones,

 Securing senior management's commitment, and
 Involving staff in the process.

Furthermore there should be a clear differentiation in competency descriptions among

different ranks in the same grade. An unduly long list of competencies may adversely
affect the effectiveness of the system.

For competencies to effectively serve the needs of a department, they should be

department-specific and reflect the missions, values and culture of the department. Any
list of competencies cannot be exhaustive. It only provides the common language and
understanding of the key dimensions and descriptions that warrant attention.

Upon implementation, there should be proper and adequate training for the staff on the
implementation of the performance management system

Performance planning starts with a session between the appraising officer and the
appraisee to agree on the list of objectives/responsibilities for the coming appraisal
period. The agreed list will include the objectives of the section/unit and the broad areas
of responsibilities of the appraisees, that is key result areas (KRAs).

A Continuous Process

Staff performance management cycle is a continuous process which involves :

 Performance planning
 Continuous coaching and development
 Interim review
 Performance appraisal

Performance planning
Performance planning starts with a session between the appraising officer and the
appraise to agree on the list of objectives/responsibilities for the coming appraisal period.
The agreed list will include the objectives of the section/unit and the broad areas of
responsibilities of the appraises, that is key result areas (KRAs).

Examples of KRAs are:

 Timely completion of caseloads
 Customer satisfaction and relations
 Staff development
 Resource management
 Project management

Specific, measurable, achievable and time bound targets will then be set on the basis of
the KRAs. The appraising officer should ensure that these targets are in alignment with
the overall departmental objectives and that they are clearly understood by the appraise.

Depending on the nature of the job, appraising officers may alternatively agree with
appraises a list of key responsibilities with specific performance results. This list provides
the appraises and the appraising officers with the yardstick to objectively discuss,
monitor and assess performance. The list should be kept under frequent review and be
revised whenever there are changes in the job.

Continuous coaching and development

The performance management system is a on-going process. After work targets and
standards have been decided and performance objectives agreed upon, the appraising
officer should start the coaching and development process which threads through
performance planning, regular feedback and guidance, interim reviews and performance
appraisal. Coaching is about providing regular feedback to staff on their performance. It
aims at:
 Giving recognition to encourage and reinforce good performance; and
 Providing advice and counseling to help improve performance, and where
appropriate, take corrective action.

Through the coaching sessions, training needs should also be identified and followed.

Interim review

An interim review is a scheduled, formal discussion between the appraising officer and
the appraise to review the latter's progress in meeting the agreed
objectives/responsibilities. This usually takes place in the middle of the appraisal period.
An interim review should take the form of a structured session to provide an opportunity
for additional coaching, for problem solving, and for updating objectives/responsibilities.

An interim review aims to:

 Identify performance results that are below, on or above target and determine
appropriate responses on corrective measures. Supervisors should use this occasion to
recognize and encourage good performance. On the other hand, performance below
targets is to be pointed out and guidance for improvement to be given;
 Assess and follow up development or training need of staff to assist them in achieving
their objectives/responsibilities;
 Ascertain whether there are potential problems that may affect the appraiser’s
performance in the latter half of the reporting cycle and put in place preventive
measures; and
 Review whether adjustments to the agreed objectives/responsibilities are required.

Performance appraisal

Performance appraisal is the formal assessment on the appraiser’s performance for the
appraisal period. It covers the following aspects:
 How effectively the agreed objectives/responsibilities have been carried out and
targets met;
 Whether the effectiveness has been adversely affected by any constraints or obstacles;
 The strengths and weaknesses of the appraise which affected or will affect the
officer's further development;
 And what sort of personal/career development and training actions should be taken.

To maintain an open system

 The appraise should be shown the assessment by the appraising and countersigning
officers before the appraisal interview.
 Countersigning officers are encouraged to complete the appraisal form before the
appraisal interview is conducted; and
 An interview record has to be prepared and signed by both parties.

For training and career development proposals put forward in the appraisal, the grade
management must take the initiative to ensure any necessary follow up actions are taken
in a timely and appropriate manner. These proposals will also provide useful reference
for the supervisors to develop the staff's competencies. Common themes on training and
development identified should be consolidated for incorporation into the training and
development plans of the department and the grade.

To ensure consistency in assessment standards and fairness in performance rating in staff

appraisals, heads of departments/grades may consider if an assessment panel should be
set up. An assessment panel is a management tool to help departments cross moderate
appraisal ratings.

An assessment panel is usually chaired by the head of branch/division or head of grade

with members drawn from section/unit heads. At the start of a reporting cycle, the
assessment panel will meet to discuss the marking criteria and standard. Staff will be
informed of these criteria and standard and clear guidelines will be issued to appraising
officers.

The assessment panel will review the completed reports on the basis of panel members'
knowledge about the performance of the appraises. If the assessment panel disagrees with
the assessment of a report, the reviewing officer and the appraising/countersigning
officer, where necessary, may be requested to explain before the panel. Amendments may
be made to the appraisal reports to ensure parity of assessment, if necessary.
Objective of the Project – Introduction of the Problem

Primary Objective
To understand the basic features of performance management plan or performance
assessment in HPL ADDITIVES LTD and their contribution in the success of HPL
Additives Ltd within a short span of previous years.

Secondary objective
To identify which of the functional aspects/ Parameters are low and which dysfunctional
aspects/ Parameters are high in order to put some suggestion for increasing the former -
and reducing the latter in other words to move from dysfunctional to functional
performance assessment.

Significance of the Project

The six weeks of summer training at HPL Additives Ltd gave me a complete exposure to
the organizational work life. It was unique opportunity to explore the realities of India’s
leading companies as a researcher and gather knowledge from its vast repertoire of
experience.

It was great learning experience to know the duties performer, responsibilities taken and
the skill regained by the executives of the organization to reform their jobs effectively
and efficiently. The project not only helps me to enhance my practical knowledge but it
also help me to understand how performance management work into the organization and
how executives assess their own employee into the organization.

The summer project, also made me realize the worth of an HR manager. I got to know the
importance of employee assessment and communication and interpersonal skill in getting
things done from other. In a net shell, it was a very fulfilling and fruitful period of my life
as a management student.
Definition - A Theoretical Perspective

Performance Management is the process of creating a work area setting in which people
are enabled to perform to the best of their abilities. Performance Management is a whole
work system that begins when a job is defined as needed. System includes the flowing
actions-

1. Development job description

2. Select appropriate people with an apply selection process.

3. Negotiate requirement and accomplishment based performance standards

4. Outcomes measures.

5. Provide effective orientation training.

6. Provide ongoing coaching and feedback.

7. Conduct quarterly performance development discussions.

8. Design effective compensation and recognition systems that reward people for their
contribution.

9. Provide promotional/crier contributions.

Preparation and Planning for performance management

Much work is invested, on the front end, to improve a traditional employee appreciate
process, Infect managers can feel as if the new process is too time consuming ones the
function of developmental goal is in place however time to an administrator the system
decreases. Each of these steps to taken with the participation and cooperation of the
employee for best results.

Performance Management and Development

 Define the purpose of the job, job duties.

 Define the performance goals with measurable outcomes.

 Define the each job responsibilities a goal.

 Define the performance standards for key components of the job,

 Hold interim discussions and provide feedback abuts employee performance.

 Maintain a record of performance through critical incident reports.

 Provide opportunity for broaden feedback. Use 360` performance feedback system.
 Develop administer a coaching and implement plan if the employee is not meeting
expectation
 Performance Assessment and Development Plan in HPL ADDITIVES
LTD

Prior to filling the form please read carefully Instructions to the

Appraiser

 Appraise the employee in related to the positions held during the period under
appraisal.
 Be objective, avoid any personal prejudice.
 Do not evaluate on the basis of isolated incidents, but base your judgment on the
entire period under review.
 Consider each independently, uninfluenced by the rating given for other factors.
 This from will not be treated as complete and processed further until all selections are
filled up.

Performance appraisal guidelines

Appraisal procedure
Performance appraisal encompasses the on-going work-related discussions, which take
place between appraisals and appraises throughout the year. The formal performance
appraisal meeting is normally attended by the employee and manager only; but when
relevant, another manager will also participate (e.g. functional head / HR person).

The Form And Its Contents

The guide for the performance / achievement rating is as follows.
Outstanding – Consistently exceeds the requirement of job.

Exemplary performance - Far exceeds the requirement of job. Growth potential

unlimited.

Very good: - Handle assignments with thoroughness and perfection, effective discharge
of responsibilities to the satisfaction of superiors completes assignment in time. With a
little more initiative could have performed better.

Good: - Just meets the normal requirements of the job, needs substantial improvement in
all areas of work to meet requirement of complete employee.

Not Up to the Expectation - Not likely to meet the requirements of complete employee.

Section 1: Quarterly Self appraisal forms:

a) General notes on goals /target setting

Key responsibility areas relate to the key result area on going and inherent in the
achievements and performance again each one. Targets and achievements are also to be
filled after discussing with the manager. Target related to the priority activates normally
are within the key responsibility areas. Target must be agreed between the manager and
the subordinate. Each target should be specified in such a way that it will be clear when it
is met and must include the time frame in which it elements to ensure consistence as
summarized in the acronym SMART (S-specific, M-measurable, A-achievable, R-
relevant, T-timer related). Although it is anticipated the performance against the target
will be assessed quarterly, it is responsibilities are reviewed at appropriate in travels
every quarterly. The manager should ensure that at all times the subordinate has a clearly
defined set of agreed Target.

Target for the period under review: -

In section 1 KRA/ assignment for the period under review should be stated. In some cases
it will be necessary for the objective to be amplified on a separate sheet and this
documents should be referenced on the form..

b) Achievement against Target

Were the target / expectations for the period under review achieved? Comments and
reasons for the success or failure should be given at the end of the review quarter period.

c) Target for the next quarter

At the beginnings of the quarter the target should be decided in Section –1. The aim is to
achieve sustainable improvement in the subordinate’s performance. Enter the date by
which the target should be achieved.

d) Overall View Of Performance

This is the Appraisee/manager’s view of the overall performance. Assessment must be
made on the overall rating listed above and in terms of the trend in performance.

Section – 2 : Annual Appraisal Form

To the filled up by the appraisee at the end of the annual review year.

Section – 3 : Potential And Qualitative Assessment

The objective is to provide an opportunity to the employee and the manager to discuss the
strengths that the individual brings to the job and examine the limitations, which may
require attention. The aim is to improve performance and development of the individual.

Section – 4 : Overall Performance / Potential Assessment

Space for other comments by the manager (if required for any issues with regard to
constraints to effective performance and / or supporting actions to achieve target).

a) Ratings / Final Recommendation

Rating has to be given by the Regional Manager / General Manager / Functional Head
after a through appraisal of the performance of the employee and in accordance with the
parameters given. Mention if any promotion / salary discrepancy / rewards / movement is
recommended.

b) Signature
The managers and employees should sign the form at the end of the discussion
acknowledging that the objectives of the appraisal have been achieved and emphasizing a
joint commitment to implement and actions agreed upon. Signatures are to confirm that
the form has been read and the key points have been noted.

Section- 5 : Assessment For Development And Growth

Training for improvement and career development the training plan for the employee for
the coming year should be discussed.

The training identification form has to be filled and returned to the HR department. In the
month of the April for the preparation of the training calendar for the forth coming year.

The manager should return the complete field form within ten days hence from the
completion of the Annual Review period to the HRD Dept. in order to attain consistency
of the appraisal standards and relevant follow – up action.
 CHAPTER

DATA ANALYSIS

AND

INTERPRETATION
DATA ANALYSIS

Representation of replies by graph

 Does your company go for performance appraisal program?



10%

30%
60%

1 2

1- Replied Yes 2- Replied Unaware 3- Replied No.

 Which Method of performance appraisal does your company
adopts?

80%
70%
70%

60%

50%

40%

30%
20%
20%
Series1
10% 6% 4%
Series2
0%
Series3
1
Series4

1- Confidential Report 2- Fair Comparison 3- Ranking System 4- Rating

Scales
 Are you satisfied with the method used?

20%

50%

30%
1 2

1- Replied Yes 2- Replied Partly 3- Replied No

 Why your company is using this method?

35%
30%
30%
25%
25%
20%
20%
15%
15%

10%
Series1
5%
5% Series2
Series3
0%
Series4
1
Series5

1- To give incentive 2- To rate the overall performance 3- To increase

overall output 4- To develop skills to compete 5- No reply
 Who are performance raters?

60%
55%

50%

40%

30%

20%
20%
15%
10%
10% Series1

Series2
0%
Series3
1
Series4

1- Said Supervisors 2- Group Leaders 3- Managers 4- Peers

 What are the main criteria’s while doing performance
appraisal?

45%
40%
40%

35%

30%
25%
25%
20%
20%
15%
15%

10%
Series1
5%
Series2
0%
Series3
1
Series4

1- Employee work in that period 2- Employees past work 3- Output given by

them 4- Can’t disclose
 Do you get any kind of benefit?

30%

70%

1
2

1- Replied Yes 2- Replied No

  What are your views for companies present performance
appraisal program?

45%
40%
40%
35%
35%

30%

25%

20%
15%
15%
10%
10%
Series1
5%
Series2
0%
Series3
1
Series4

1- Satisfied 2- For training 3- For Motivating 4- Didn’t Replied

 Can you suggest any new method, which can be used for

performance appraisal?

80%
70%
70%

60%

50%

40%

30%
20%
20%
10%
10%
Series1
0% Series2
1
Series3

1-360- degree performance appraisal 2- Critical Incident Method 3-

Rating Scales
  Do you think new method will be beneficial for the company?

20%

80%

1
2

1- Replied Yes 2- No Comments

 Is your basic goal fulfilled?

10%

90%

1
2

1- Goal fulfilled 2- Said No

 What are benchmarks for measuring the performance?

45%
40% 40%
40%

35%

30%

25%
20%
20%

15%

10%

5%
Series1
0%
1 Series2

Series3

1- Employees work 2- Time spent in factory 3- Companies policy and

returns
 INTERPRETATION

Analysis of result obtained after questioning

After going through the answers given by the various personnel’s working in the
company one thing is very clear that the people working in it are satisfied with the
company. There are only 15% to 20% of the people who are not satisfied with the
company and this is very negligible amount.

 The method, which is been used mostly by the company, is “confidential

report”. This method is very confidential and is very useful, it is been the
matter between the top management and the raters only. This is mostly
unbiased but at times some sort of biasness arises in between, due to which it
lacks behind.

 Employees want the method to be replaced by 360-degree performance

appraisal as it is very new method and most of the people are unaware of it.
But it really works to make the system to be successful.

 Under this method the peers, managers etc have to rate the employees
performance. There is least chance for the biasness to occur.

 whose rating is to be done is in center and all other rates are around him who
rates him based upon various predefined criteria’s.

 Performance appraisal is done by the company in order to provide them with

the incentives seek to the need for training among the employees, to motivate
the employees and to develop their skills to work better.
 50% of the raters are the supervisors of the company and 20% are the group
leaders. People are partly satisfied with their raters.

 The basic criteria kept in mind while doing the performance appraisal is the
output, which is been given by the employee and the overall work done by
him during the period.

 After the performance is been rated the various kind of benefits are given to
the employees as 70% said yes.

 People are not satisfied by the present performance appraisal method used
they want to go for a change and 80% said that the new method will definitely
be beneficial for the company.

 90% of the company’s basic goal is been fulfilled by the performance

appraisal of the employees.

Above is the overall analysis of the questionnaire as answered by the

personnel’s of the company.
 CHAPTER
CONCLUSION
CONCLUSION

HPL Additives Ltd though seems to be an open organization but has a conservative
approach towards its performance management policies. There are many worker policies
provided for them. Besides this, their policies are quiet rigid.

There is no proper formation of grievance cell. Only basic amenities are being provided
to workers. Thus the strengths and weaknesses of the organization can be listed below.

Strengths

 High concern for excellence in performance.

 Continuous development of workforce.
 No place for displacing personnel power.
 A strong desire for making an impact on others for the well being of the
organization.
 A good teamwork.
 A desire to change adverse situations.

Weaknesses

 Under utilization of decision-making power.

 Rigid hierarchy level.
 CHAPTER
RECOMMENDATIONS
RECOMMENDATIONS

1. Though the employees are free in all respects, there should be more Employee
Empowerment.

2. Employees should be encouraged to do work creatively and innovate to improve the

growth rate of organizations.

3. While posting employee in different departments their personal choices should also
be taken into consideration.

4. Executives must be given jobs where they are creative rather than following orders of
the boss and obeying them willingly.

5. The career growth of employees should be planned on the long-term basis.

6. The (candidates) not considered for promotion, should be informed about their
weaknesses so that they can work on it.

7. Separate session on planning the KRA should be taken up and must be discussed and
signed jointly between the appraiser and the appraise.

8. HPL ADDITIVES LTD should introduce midyear review into the system and must
rate the employee and provide them with necessary training and development.
CHAPTER
APPENDIX
 BIBLIOGRAPHY

Books
 Organizational behavior - Robbins, Stephen P
 Personnel Management and Human Relations - Venkata Ratnam, C S and
Srivastava,
 Human Resource Management - Ashwathappa, K
 Human Resource Management - Rao, V S P

Web sites

 www.google.com
 www.hrmguide.net
 www.managementscience.org
 www.londonexternal.ac.uk
 www.hr.com
 www.wikipedia.com
 QUESTIONNAIRE

1. Name:

2. Age:

3. Nature of work:

4. Job Title:

5. Department Name:

1. Do you know about performance appraisal?

Yes

No

2. Does your company go for performance appraisal program?

Yes

No

Unaware

3. Which Method of performance appraisal dos your company adopts?

Confidential Report

Rating Scales

Ranking System

Fair Comparison Method

Forced Choice Method

 Critical Incident Method

360-Degree Performance Method

Checklist Method

Graphic Rating Scale

Paired Comparison

4. Are you fully aware of the method used to measure the performance?

Yes

No

5. Are you satisfied with the method used?

Yes

No

Partly

6. Who are performance raters?

Manager

Group Leader

Coordinator

Supervisor

Peers

7. Are you satisfied with them?

Yes

No
 8. Do you want it to be held regularly by your company?

Yes

No

9. Is there any increase in salary after the performance appraisal is held?

Yes

No

Do you get any other kind of benefit after performance appraisal is held? (Mention)

Your view for the companies present performance appraisal program?

Any other suggestions you would like to give seniors in respect of performance
appraisal program?