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A
RESEARCH PROJECT
ON
A Study of Performance management system and
employee welfare at Liberty
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE
DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION
Under The Supervision: - Submitted By:-
Dr. Shweta Hooda Solanki Ranjeeta Kumari
(CHAIRPERSON School Of Management Studies) MBA 4th
SEM
B.P.S.M.V Khanpur Kalan, Sonipat Roll No.:- 100782
Bhagat Phool Singh Women University
Khanpur Kalan Sonipat (Haryana)
Web site: -www.bpswomenuniversity.ac.in/
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DECLARATION
I, RANJEETA KUMARI hereby declare that the report on all fulfillments of the
requirements for the award of the degree in Masters in Business Administration is a
record of original work done by me during the period of study 2011-2012, under the
guidance and supervision of Dr. Shweta Hooda Solanki (Chairperson of School of
Management Studies).
I further declare that all the facts and figures furnished in this project report are
the outcome of my own intensive research and findings and the same project has not beensubmitted to any other institution for the award of any other degree.
Signature of the Candidate
RANJEETA KUMARI
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CERTIFICATE
This is to certify that the report entitled " A Study of Performance management system
and employee welfare at Liberty being submitted by Ranjeeta Kumari in partial
fulfillment for award of degree of MBA is to the best of my knowledge a record of his
own work carried out by her under my supervision.
In addition the matter embodied in this report has not been submitted for award of any
other degree elsewhere.
I therefore recommend this report for submission.
Dr. Shweta Hooda Solanki(CHAIRPERSON School of Management Studies)
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ACKNOWLEDGEMENT
There is always a sense of gratitude, which is to be expressed to others for the helpful and
needy services they render during all phrases of life. I really wish to express my gratitude
towards all those who have been helpful to my project.
My special thanks to Dr. Shweta Hooda Solanki (MY PROJECT GUIDE) who was
become light for me in this endeavor .I will always be thankful to her for her kind help
and cooperation to me during project.
(RANJEETA KUMARI)
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PREFACE
Managing human resources in today's dynamic environment is becoming more
and more complex as well as important. Recognition of people as a valuable resource in
the organization has led to increases trends in employee maintenance, job security, etc.
My research project deals with "A study of employee welfare at Liberty India
through Performance management system". In this report, I have studied & evaluated
the performance management system and employee welfare services in the company.
The first section of my report deals with a detailed company profile. It includes
the company's history: its activities, organizational structure, etc. this section attempts to
give detailed information about the company and the nature of its functioning.
The second section deals with performance management system. In this section, Ihave given a brief conceptual explanation to performance management system. It contains
the definition, process and significance of performance appraisal
In the third section of my report, I have described the process of performance
management system and employee welfare at Liberty Shoes Ltd. This section also
contains my findings, conclusions, suggestions and feedback.
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INDEX
CHAPTER 1
Introduction to Company
History
Corporate Philosophy
Corporate Saga
Credo
Social Responsibility
Product Range
Innovative Approaches
International Experience
CHAPTER 2
Review of Literature
Process of Performance Management
Appraisal Techniques
Employees Welfare
Scope of Employee Welfare
Objective of Employee Welfare
Benefits Provided to Workers
CHAPTER 3
Present Existing Performance Management System
Process of Performance Appraisal
Employee Welfare at Liberty
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PERFORMANCE
MANAGEMENT SYSTEM
AND
EMPLOYEE WELFARE
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REVIEW OF LITERATURE
Performance appraisal: past and future
The history of performance appraisal is quite brief. Its roots in the early 20th
century can be traced to Taylor's pioneering Time and Motion studies. But this is not very
helpful, for the same may be said about almost everything in the field of modem human
resources management. As a distinct and formal management procedure used in the
evaluation of work performance, appraisal really dates from the time of the Second World
War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is avery ancient art. In the scale of things historical, it might well lay claim to being the
world's second oldest profession.
There is, says Dulewicz (I989), "... a basic human tendency to make judgements
about those one is working with, as well as about oneself. "Appraisal, it seems, is both
inevitable and universal. In the absence of a carefully structured system of appraisal,
people will tend to judge the work performance of others, including subordinates,
naturally, informally and arbitrarily.
The human inclination to judge can create serious motivational,ethical and legal
problems in the workplace. Without a structured appraisal system, there is little chance of
ensuring that the judgments made will be lawful, fair, defensible and accurate.
Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee
was justified. The process was firmly linked to material outcomes. If an employee's
performance was found to be less than ideal, a cut in pay would follow. On the other
hand, if their performance was better than the supervisor expected, a pay rise was in
order.
Little consideration, if any, was given to the developmentalpossibilities of
appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus
for an employee to either improve or continue to perform well.
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Sometimes this basic system succeeded in getting the results that were intended;
but more often than not, it failed. For example, early motivational researchers were aware
that different people with roughly equal work abilities could be paid the same amount of
money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes;
but they were not the only element that had an impact on employee performance. It was
found that other issues, such as morale and self-esteem, could also have a major
influence.
As a result, the traditional emphasis on reward out comes was progressivelyrejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for
motivation and development was gradually recognized. The general model of
performance appraisal, as it is known today, began from that time.
Modern Appraisal
Performance appraisal may be defined as a structured formal interaction between
a subordinate and supervisor, that usually takes the form of a periodic interview (annual
or semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as opportunities
for improvement and skills development. In many organizations - but not all - appraisal
results are used, either directly or indirectly, to help determine reward outcomes. That is,
the appraisal results are used to identify the better performing employees who should get
the majority of available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may
require some form of counseling, or in extreme cases, demotion, dismissal or decreases in
pay. (Organizations need to be aware of laws in their country that might restrict their
capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of
performance appraisal -the assignment and justification of rewards and penalties - is a
very uncertain and contentious matter.
Performance appraisal, also known as employee appraisal, is a method by
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which the job performance of an employee is evaluated (generally in terms of quality,
quantity, cost and time). Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within
organizations.
Generally, the aims of a performance appraisal are to:
Give feedback on performance to employees.
Identify employee training needs.
Document criteria used to allocate organizational rewards.
Form a basis for personnel decisions : salary increases, promotions, disciplinary
actions, etc.
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administrator.
Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
A common approach to assessing performance is to use a numerical or scalar
rating system whereby managers are asked to score an individual against a number of
objectives/attributes. In some companies, employees receive assessments from their
manager, peers, subordinates and customers while also performing a self assessment. This
is known as 3600 appraisal.
The most popular methods that are being used as performance appraisal process
are:
Management by objectives
360 degree appraisal
Behavioral Observation Scale
Behaviorally Anchored Rating Scale
Benefits of Appraisal
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Perhaps the most significant benefit of appraisal is that, in the rush and bustle of
daily working life, it offers a rare chance for a supervisor and subordinate to have "time
out" for a one-on-one discussion of important work issues that might not otherwise be
addressed.
Almost universally, where performance appraisal is conducted properly, both
supervisors and subordinates have reported the experience as beneficial and positive.
Appraisal offers a valuable opportunity to focus on work activities and goals, to identify
and correct existing problems, and to encourage better future performance. Thus the
performance of the whole organization is enhanced.
For many employees, an "official" appraisal interview may be the only time they
get to have exclusive, uninterrupted access to their supervisor. Said one employee of a
large organization after his first formal performance appraisal, "In twenty years of work,
that's the first time anyone has ever bothered to sit down and tell me how I'm doing." The
value of this intense and purposeful interaction between a supervisors and subordinate
should not be underestimated.
Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee
motivation and satisfaction for better as well as for worse. Performance appraisal
provides employees with recognition for their work efforts. The power of social
recognition as an incentive has been long noted. In fact, there is evidence, that human
beings will even prefer negative recognition in preference to no recognition at all. If
nothing else, the existence of an appraisal program indicates to an employee that the
organization is genuinely interested in their individual performance and development.
This alone can have a positive influence on the individual's sense of worth, commitment
anti belonging.
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The strength and prevalence of this natural human desire for individual
recognition should not be overlooked. Absenteeism and turnover rates in some
organizations might be greatly reduced if more attention were paid to it. Regular
performance appraisal, at least, is a good start.
Training and Development
Performance appraisal offers an excellent, opportunity - perhaps the best that will
ever occur - for a supervisor and subordinate to recognize and agree upon individual
training and development needs. During the discussion of an employee's work
performance, the presence or absence of work skills can become very obvious even to
those who habitually reject the idea of training for them!
Performance appraisal can make the need for training more pressing and relevant
by linking it clearly to performance outcomes and future career aspirations.
From the point of view of the organization as a whole, consolidated appraisal data
can form a picture of the overall demand for training. This data may be analyzed by
variables such as sex, department, etc. In this respect, performance appraisal can providea regular and efficient training needs audit for the entire organization.
Recruitment and Induction
Appraisal data can be used to monitor the success of the organization's
recruitment and induction practices. For example, how well are the employees performing
who were hired in the past two years?
Appraisal data can also be used to monitor the effectiveness of changes in
recruitment strategies. By following the yearly data related to new hires (and given
sufficient numbers on which to base the analysis) it is possible to assess whether the
general quality of the workforce is improving, staying steady, or declining.
Employee Evaluation
Though often understated or even denied, evaluation is a legitimate and major
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objective of performance appraisal. But the need to evaluate (i.e., to judge) is also an
ongoing source of tension, since evaluative and developmental priorities appear to
frequently clash. Yet at its most basic level, performance appraisal is the process of
examining and evaluating the performance of an individual. Though organizations have a
clear right - some would say a duty - to conduct such evaluations of performance, many
still recoil from the idea. To them, the explicit process of judgment can be dehumanizing
and demoralizing and a source of anxiety and distress to employees. It is been said by
some that appraisal cannot serve the needs of evaluation and development at the same
time; it must be one or the other. But there may be an acceptable middle ground, where
the need to evaluate employees objectively, and the need to encourage and develop them,can be balanced.
What to evaluate?
The first important step in developing a performance management system is to
determine which aspects of performance to evaluate. The most frequently used appraisal
criteria are traits, behaviors, and task outcomes.
Traits
Many employees are assessed according to their traits, such as personality,
aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater
gets to know rates. But traits are not always directly related to job performance. Trait-
based assessment lacks validity and thus frequently raises legal questions.
Behaviors
For many jobs, performance is so broadly defined or so conceptual in nature- such
as ensuring public safety in the police department-that it is hard to come up with reliable
performance measures. In such cases, desirable behaviors can be identified and assessed
in the belief that such behaviors lead to successful performance. Such behavior-focused
assessment encourages employees to adopt desirable behavioral patterns in the
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workplace.
Task outcomes
When information about task outcomes is readily available, it is the most
appropriate factor to use in evaluating performance. When an organization has a clear and
measurable goal as in the case of a sales force, this approach is recommended. However,
it has its own pitfalls. There is a problem if employee behaviors are not directly related to
the task out-come. Too narrow a focus on measuring out-come only sometimes results in
unintended negative consequences. When sales staff narrowly focuses on target sales
figures to increase their performance measure, for example, they are encouraged to help a
few large-volume customers and to ignore many smaller buyers. This may result in poor
customer service on the floor.
Human resource development and performance appraisal
Regular performance appraisal contributes to employee effectiveness,
development and satisfaction on the job. Employees should know their strengths, as well
as areas of needed improvement, in order to attain the optimum level of job performance.
Done both formally and informally, performance appraisal is an excellent aid to
communication, and an effective way of clarifying duties and responsibilities. In addition,
written performance appraisals may provide documentation which substantiates
recommendations for promotion, transfer, termination or other personnel action. Records
of conferences between managers and employees outlining efforts to promote
improvement in job performance, as well as documentation of an employee's strengths,
will be prepared and maintained by the manager. Copies of these records will beforwarded to Human Resource Services for inclusion into the employee's personnel
records. In addition, each employee's performance will be formally appraised annually by
the supervisor through the university-wide performance appraisal program. The written
performance appraisal will be included in the employee's personnel file.
Performance Appraisal Program
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Whenever possible, each employee's performance will be formally appraised on or
near the anniversary of the date of employment. During the month preceding the month in
which the anniversary falls, Human Resource Services will send a notice to the
department head for distribution to the supervisor responsible for appraising the
employee. The manager will complete the form and meet with the employee to discuss
the appraisal. The supervisor will then forward the completed performance appraisal
form, which has been signed by the employee, to the appropriate director or officer (i.e.,
the supervisor's supervisor), who will review and sign the form and forward it to Human
Resource Services. The forms will be returned to Human Resource Services no later than
the end of the month following the month of the anniversary.
There may be circumstances such as leaves of absence which alter the schedule.
The university reserves the right to delay an employee's appraisal where appropriate.
Manuals describing the appraisal process and forms are available in each department, in
the Library, and in Human Resource Services.
Retention of Performance Appraisals
The Performance Appraisal forms will be retained in the employee's personnel file
for not less than a three-year period, as will any other records of an employee's job
performance.
Unsatisfactory Performance
In the event an employee's performance is determined to be unsatisfactory, the
performance appraisal permits the clarification of expectations so that the employee's
performance can be improved. For those few instances that require more intervention, the
procedures described under "Corrective Action" should be followed.
The goals, design and management of the organizational and process levels are
part of the system that affects performance. The Performance System builds on those
levels by providing a more "micro" picture of people and of the immediate environment
that 'surrounds them. The Human Performance System is viewed in the input-output-
feedback perspective. The quality of outputs is a function of the quality of inputs,
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PROCESS OF PERFORMANCE MANAGEMENT
Performance management is the process of assessing progress toward achieving
predetermined goals. It involves building on that process, adding the relevant
communication and action on the progress achieved against these predetermined goal.
Helps organizations achieve their strategic goals. Rather than discarding the data
accessibility previous systems fostered, performance management harnesses it to help
ensure that an organization's data works in service to organizational goals to provide
information that is actually useful in achieving them and focus on the Operational
Networking Processes between that performance levels. The main purpose of
performance management is to link individual objectives and organizational objectives
and bring about that individuals obey important worth for enterprise. Additionally,
performance management tries to develop skills of people to achieve their capability to
satisfy their ambitiousness and also increase profit of a firm.
Performance management is closely connected to Performance measurement.
They are sometimes mistaken for each other. In careful usage, Performance Management
is the larger domain and includes Performance Measurement as a component.
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.
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Employee performance management includes:
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 a matter of
course.
Planning
In an effective organization, work is planned out in advance. Planning means
setting performance expectations and goals for groups and individuals to channel theirefforts toward achieving 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, ana
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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 required.
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.
Developing
In an effective organization, employee developmental needs are evaluated and
addressed. Developing in this instance means increasing the capacity to perform through
training, giving assignments that introduce new skills or higher levels of responsibility,
improving work processes, or other methods.
Providing employees with training and developmental opportunities encourages
good performance, strengthens job-related skills and competencies, and helps employees
keep up with changes in the workplace, such as the 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,
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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 summaryrating, 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 recognizingemployees, 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.
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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
nonmonetary items. The regulations also cover a variety of contributions that can be
rewarded, from suggestions to group accomplishments.
Managing Performance Effectively.
In effective organizations, managers and employees have been practicing good
performance management naturally all their lives, executing each key component process
well. Goals are set and work is planned routinely. Progress to ward those goals is
measured and employees get feedback. High standards are set, but care is also taken to
develop the skills needed to reach them. Formal and informal rewards are used to
recognize the behavior and results that accomplish the mission. All five component
processes working together and supporting each other achieve natural, effective
performance management.
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APPRAISAL TECHNIQUES
There are several techniques of performance appraisal, each with some strong points as
well as limitations. Oberg (1972) has summarized some of the commonly used
performance appraisal techniques.
(i) Essay appraisal method
The assessor writes a brief essay providing an assessment of the strengths,
weaknesses and potential of the subject. In order to do so objectively, it is
necessary that the assessor knows the subject well and should have interacted with
them. Since the length and contents of the essay vary between assessors, essay
ratings are difficult to compare.
(ii) Graphic rating scale
A graphic scale 'assesses a person on the quality of his or her work (average;
above average; outstanding; or .unsatisfactory).' Assessment could also be trait
centered and cover observable traits, such as reliability, adaptability,
communication skills, etc. Although graphic scales seem simplistic in
construction, they have application in a wide variety of job responsibilities and are
more consistent and reliable in comparison with essay appraisal. The utility of this
technique can be enhanced by using it in conjunction with the essay appraisal
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technique.
(iii) Field review method
Since individual assessors differ in their standards, they in advertently introduce
bias in their ratings. To overcome this assessor-related bias, essay and graphic
rating techniques can be combined in a systematic review process. In the field
review method, 'a member of the HRM staff meets a small group of assessors
from the supervisory units to discuss each rating, systematically identifying areas
of inter-assessor disagreement.' It-can then be a mechanism to help each assessor
to perceive the standards uniformly and thus match the other assessors. Althoughfield review assessment is Considered valid and reliable, it is very time
consuming.
(iv) Forced-choicerating method
Unlike the field review method, the forced-choice rating method does not involve
discussion with supervisors. Although this technique has several variations, the
most common method is to force the assessor to choose the best and worst fit
statements from a group of statements. These statements are weighted or scored in
advance to assess the employee. The scores or weights assigned to the individual
statements are not revealed to the assessor so that she or he cannot favour any
individual. In this way, the assessor bias is largely eliminated and comparable
standards of performance evolved for an objective. However, this technique is of
little value wherever performance appraisal interviews are conducted.
(v) Critical incident appraisal method
In this method, .a supervisor describes critical incidents, giving details of both
positive and negative behaviour of the employee. These are then discussed with
the employee. The discussion focuses on actual behaviour rather than on traits.
While this technique is well suited for performance review interviews, it has the
drawback that the supervisor has to note down the critical incidents as and when
they occur. That may be impractical, and may delay feedback to employees. It
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makes little sense to wait six months or a year to discuss a misdeed, a mistake or
good display of initiative.
(vi) Management by objectives
The employees are asked to set or help set their own performance goals. This
avoids the feeling among 'employees that they are being judged by unfairly high
standards. This method is currently widely used, but not always in its true spirit.
Even though the employees are consulted, in many cases management ends up by
imposing its standards and objectives. In some cases employees may not like 'self-
direction or authority.' To avoid such problems, the work standard approach isused.
(vii) Works standard approach
In this technique, management establishes the goals openly and sets targets against
realistic output standards. These standards are incorporated into the organizational
performance appraisal system. Thus each employee has a clear understanding of
their duties and knows well what is expected of them. Performance appraisal and
interview comments are related to these duties. This makes the appraisal process
objective and more accurate. However, it is difficult to compare individual ratings
because standards for work may differ from job to job and from employee to
employee. This limitation can be overcome by some form of ranking using pooled
judgment.
(viii) Ranking methods -
Some of the important forms of ranking for performance appraisal are given
below, based on Oberg, 1972; and Monga, 1983:
(a) Alteration ranking method :The individual with the best performance is
chosen as the ideal employee. Other employees are then ranked against
this employee in descending order of comparative performance on a scale
of best to worst performance. The alteration ranking method usually
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involves rating by more than one assessor. The ranks assigned by each
assessor are then averaged and a relative ranking of each member in the
group is determined. While this is a simple method, it is impractical for
large groups. In addition, there may be wide variations in ability between
ranks for different positions.
(b) Paired comparison: The paired comparison method systematizes ranking and
enables better comparison among individuals to be rated. Every individual in the
group is compared with all others in the group. The evaluations received by each
person in the group are counted and turned into percentage scores. The scores
provide a fair idea as to how each individual in the group is judged by the
assessor.
(c) Person-to-person rating:In the person-to-person rating scales, the names of the
actual individuals known to all the assessors are used as a series of standards.
These standards may be defined as lowest, low, middle, high and highest
performers. Individual employees in the group are then compared with the
individuals used as the standards, and rated for a standard where they match the
best. The advantage of this rating scale is that the standards are concrete and are in
terms of real individuals. The disadvantage is that the standards set by different
assessors may not be consistent. Each assessor constructs their own person-to-
person scale which makes comparison of different ratings difficult.
(d) Checklist method: The assessor is furnished with a checklist of pre-scaled
descriptions of behaviour, which are then used to evaluate the personnel being
rated (Monga, 1983). The scale values of the behaviour items are unknown to the
assessor, who has to check as many items as she or he believes describe the
worker being assessed. A final rating is obtained by averaging the scale values of
the items that have been marked.
(e) Behaviorally Anchored Rating Scales (BARS): This is a relatively new
technique. It consists of sets of behavioral statements describing good or bad
performance with respect to important qualities. These qualities may refer to inter-
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personal relationships, planning and organizing abilities, adaptability and
reliability. These statements are developed from critical incidents collected both
from the assessor and the subject.
(f) Assessment centers: This technique is used to predict future performance of
employees were they to be promoted. The individual whose potential is to be
assessed has to work on individual as well as group assignments similar to those
they would be required to handle were they promoted. The judgment of observers
is pooled and paired comparison or alteration ranking is sometimes used to arrive
at a final assessment. The final assessment helps in making an order-of-merit
ranking for each employee. It also involves subjective judgment by observers.
A performance appraisal system could be designed based on intuition, self-
analysis, personality traits, behaviourial methods and result-based techniques.
Different approaches and techniques could be blended, depending on the goals of
performance appraisal in the organization and the type of review. For example,
management by objectives, goal-setting and work standard methods are effective
for objective coaching, counseling and motivational purposes. Critical incident
appraisal is best suited when supervisor's personal assessment and criticism are
essential. A carefully developed and validated forced-choice rating can provide
valuable analysis of the individual when considering possible promotion to
supervisory positions. Combined graphic and essay form is simple, effective in
"identifying training and development needs, and facilitates other management
decisions.
Components of the appraisal format
Key performance areas, self-appraisal, performance analysis, performance ratings
and counseling are the important components of a performance appraisal system oriented
to development of human resources in an organization. The appraisal format should be
designed in consonance with the objectives of the performance appraisal system, and
generate information on a number of important aspects, including:
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Identification of key performance areasThe first step in an appraisal process is
identifying key performance areas and setting targets for the next appraisal period.
This may be done either through periodic discussions or at the beginning of the
year, as in research institutions.
Self-appraisal by the subject At the end of the appraisal period, employees
appraise their own performance against the key performance areas, targets and
pre-identified behaviour. Information on these issues is provided in an appraisal
format. The employees also write their self-evaluation reports and hand them to
their supervisors.
Analysis The supervisor reflects on the performance of the employee, and
identifies the factors which facilitated or hindered the employee's performance.
The manager then calls the employee for a discussion to better understand his or
her performance and provide counseling on further improvements. During this
discussion, appraisal records (such as notes, observations, comments, etc.) are
exchanged. The manager then gives a final rating and recommendations regarding
the developmental needs of the individual. These are shown to the subject and his
or her comments are recorded on the appraisal form. The appraisal form is then
transmitted to the personnel department for the necessary administrative action.
The personnel or human resource development department uses these forms for
identifying and allocating training, rewards and other activities.
Identification of training needs : The use of a development-oriented
performance appraisal system is based on a good understanding of the concept of
human resources development. The need for developing employee capabilities,
the nature of capabilities to be developed, and the conditions under which these
capabilities can be developed have to be appreciated. During the discussion
between the supervisor and the employee, the development needs of the subject
are identified and goals set for the next period.
Identification of qualities: The supervisor may also identify the qualities
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required for current as well as future tasks, and assess the employees potential
and capabilities to perform jobs at higher responsibility levels in the organization.
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EMPLOYEES WELFARE
"The development of harmonious relations will lead to develop healthy
relationship between the two groups of industry and paves the way for industrial peace. "
The word employee means any productive activity
The industrial progress of a country depends to a great extent on a contended
employee force. An in different, even if not frustrates and bitter, worker is not only a
stigma upon the society, but also a stumbling block to harmonious industrial functioning
resulting in strained industrial relations, excessive rate of employee turnover, absenteeism
& low employee productivity and it hampers the economic growth of the country.
Welfare
Welfare means faring or doing well. It is a comprehensive term & refers to the
physical, mental, moral & emotional well being of a person.
WELFARE
Total Concept Social Concept Relative Concept Positive
Total Concept : It is a desirable state of existence involving physical, mental, moral &
emotional well-being.
Social Concept : Implies the welfare of man, his family & his community each aspect
serving as ends and means.
Relative Concept : Welfare is related to time and space.
Positive Concept : The positive nature calls for the setting up of the minimum disable
standards necessary for certain components of welfare.
EMPLOYEE WELFARE
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"It is a state of well-being, happiness, satisfaction, conservation development of
human resources."
The Oxford Dictionary defines Employee Welfare as betterment of work for
employees relates to taking care of the well being of workers by employer's trade union
govt. and non-government agencies. The concept of employee welfare cannot be
concisely defined because of the relativity of the concept.
The working conditions should be such as to safeguard his health and to protect
against occupational hazards. Despite phenomenal rise in wages there is still lack of
stabilized work force. Employee Welfare is a flexible concept and part of social welfare,conceptually & operationally.
Employee Welfare has tremendous potentialities for fostering good Industrial
Relations in India. Hence, we might use scientific procedure for Employee welfare and
Organization and employee force must be directed in right channels in our fast
developing technological machinery.
Scope of Employee Welfare
Employee welfare has become essential of the very nature of the industrial
system. The approach to this problem or movement differs from country to country
according to the degree of development in a particular country however the need for
employee welfare in some way or the other is realized all over the world of the socio-
economic condition and problems which the industrial society has thrown up. Employee
Welfare work is increasing with changing opportunities and needs to meet varying
situations. It is also increasing with the growing knowledge and experience of techniques.
An able I welfare officer would. Therefore, includes in his welfare programme the
activities that would be conducive to the well being of the worker and his family.
The Scope of Employee Welfare includes: -
Minimum standards of safety hygiene given under employee registration.
Voluntary social insurance scheme.
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Measures for protection of women and young workers.
Limitations of hours of work.
Paid vacations.
Social relationships at work place.
Objectives of Employee Welfare:-
The aim or objectives of welfare activities is three field:
Hurnanitarian- to enable workers to enjoy a future and riches life.
Econornic- to improve the efficiency of the workers. Civic- to develop among the workers a sense of responsibility and dignity and
thus make them worthy citizens of the nation.
In total, we can say that following could be the objectives of the employee welfare
activities:
To create and improve sound industrial relations.
To win over employee's loyalty and increase their morale.
To combat trade unionism and socialists ideas.
To build up stable employee force, to reduce employee turnover and absenteeism.
To motivate the employees by identifying and satisfying their unsatisfied needs.
To develop efficiency and productivity among workers.
To save oneself from heavy taxes on surplus profits.
BENEFITS PROVIDED TO WORKERS:-
Educational Facilities
Sickness & Maternity Benefit .
Provident Fund & Pension
Compensation Facility .
Leave Facility
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Canteen Facility
Drinking Water Facility .
Various Allowances
These benefits if provided to worker reduces the rate of:
Absenteeism
Strengthening of cordial relationship
Increases mental efficiency & economic productivity .
Developing sense of belongingness
Minimizing industrial strike .
Better management & workers relationship
Thus, we can say that the overall objective of employee welfare activities is to win
over the employee's loyalty, to increase productivity, reduce absenteeism and turnover.
Promote better relationships with the employees and to enhance the image or create
goodwill between employee and mgt. and mgt. and public.
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INTRODUCTION TO COMPANY
Liberty Shoes Ltd. is the only Indian company that is among the top 5
manufacturers of leather footwear in the world with a turnover exceeding U.S. $100
million. We produce more than 50,000 pairs of footwear a day covering virtually every
age group and income category. Products are marketed across the globe through 150
distributors, 350 exclusive showrooms and over 6000 multi-brand outlets, and sold in
thousands every day in more than 25 countries including fashion-driven, quality-obsessed
nations like France, Italy, and Germany with 50 years of excellence, today Liberty
produces footwear for the entire family and is a trusted name across the world. In the
domestic market it is one of the most admired footwear brands and holds the largest
market share for leather footwear
History:-
It was the 25th December of 1954 when India was nurturing its growth as a free
country, three dreamers in a small town in erstwhile Punjab thought of producing an
Indian brand of footwear to make a basic necessity available to their countrymen. Mr. D P
Gupta, Mr. P D Gupta and Mr. R K Bansal allowed their vision to cross every barrier and
brought cutting-edge technologies to their own country. Within a short span of time, the
name, Liberty became a synonym to quality footwear in the domestic market and this
encouraged the company to invest further for enhancing production capacities and to cater
to the demands of international markets.
With 50 years of excellence, today Liberty produces footwear for the entire family
and is a trusted name across the world. In the domestic market it is one of the most
admired footwear brands and holds the largest market share for leather footwear.
Corporate Philosophy:
Steeped in a philosophy that has at its core innovation, technology and
advancement, we at Liberty, pride ourselves over and above everything else on our
healthy and heart-felt respect for the human ethos, which projects itself in the expectancy
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and excitement with which one greets the arrival of the new combined with a sincere and
deep regard for the old, which is appreciative of and adopts at every stage the unique
balance between modernization and tradition.
Liberty as a brand is constantly evolving to keep pace with the changing trends,
styles, beliefs, and aspirations of people while maintaining the sanctity of certain
traditions like workmanship and good value.
Corporate Saga:-
With people as its leitmotif, Liberty has for over 50 years, always stayed in touch
with the aspirations of every successive generation even as it developed the largest range
in the industry catering to every income bracket and age segment. Using the patented
'Human-tech' approach that combines the best of talent with the latest in technology.
From the price-conscious, value for money seeking buyer to the trendy, global, price-
indifferent customer from the with it all attitude teenager to the conservative seen it all
adult, just about everybody today finds a good reason for being in Liberty.
Liberty is today consolidating and expanding its following from the fashion alloysto the sidewalks with styles that compliment the newest most happening trends. And also
by turning footwear selling into a byword for personalized service in an ambience of five
star comfort. This can be experienced in the hundreds of Liberty five star showrooms and
shoe stations in India and abroad. But beyond that lies another but equally significant
involvement. It's all about making a difference in the lives of thousands of people all over
India by ensuring direct and indirect employment. Creating wealth, sharing prosperity,
and generating progress. For Liberty, there can be no greater honour than that and no
bigger reason for walking tall.
Credo
To ensure that the method we use is the latest technology the world over. To
follow the highest standards of honest workmanship in whatever we make. To walk the
extra mile to ensure customer satisfaction worldwide. To remain a true cosmopolitanto
the spirit. To remain a great corporation to associate with, to work for. To know that
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"We are about people".
Social Responsibility:-
Liberty conducts its business with honesty, integrity and respect for all those who
come in contact with it in course of business. Fully appreciative of the fact that its
reputation stems from not just quality products and technological innovations but also
from the manner of its dealings with customers, suppliers, government officials and all
those who are outside the Liberty Group. Utmost importance is also given to ensuring a
safe, healthy and non-discriminatory work environment for all Liberty employees where
they are free from harassment of any form by supervisors, seniors, co-workers, customers
and suppliers. Ethical standards and practices are rigorously adhered to which is why
Liberty finds place in the most favored list of respectable brands like Wal-Mart, Reebok,
Nike, etc who recognize it as an Equal Opportunity Employer.
Research and Development:
Liberty 2 way Channel partners dig their feedback deep and constantly.
Hammering the string of creative workmen at the manufacturing centers to produce not
just faceless shoes dancing down conveyer belts but shoes with character. So the centers
have poured 53 years of research and continuous flow of emotions to redefine the R&D
center at Liberty puram. Fusing Technology with the sweat of sagacity. Some call it
Research and Development wing, some put a price to the investments in the "Emotional
technology" that it comes out as. They call the process HUMANTECH and it is priceless.
Liberty is also very active in the area of Research and Development and has a
number of "firsts" to its credit like:
Liberty pioneered the PU (Polyurethane) Technology in India in Footwear
Industry in 1982 and today is the largest producer of footwear with this
technology in Asia.
Liberty has developed, new material TPE (Thermo Plastic Elastomer) for High
Quality formal footwear
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Liberty was the first company commissioning the Latest CAD/CAM System in its
Design Centre.
Liberty Enterprises is the only Factory in India having Water Proofing
Technology approved by SYMPATEX, a name known for Water Proofing
technology world wide.
Liberty Enterprise Management structure is very thin in size comparing with a
huge workforce in front line operations.
Design &Development:
Liberty has well established state of the art design centers, which are constantly
engaged in designing and developing latest trend setting footwear for the young fashion
conscious Indian consumers. On an average 4000 new styles are developed every year out
of which roughly 1200 styles are selected and introduced in the market in two seasons
i.e., spring/ summer and fall / winter.
Distribution Network:
They have a Distribution Network that rivals the human arterial system. A
reticulate network of retailers, showrooms, and exclusive outlets with a reach like a blue-
green marine octopus. A structured 2-Way Feeder-Feedback system that both gives and
receives. An organization of our size would have gone Out-of-orbit without a firm after
sales Support System. Thanks to the vision and drive of our Corporate Think tank, we
now have a sales Network that brings the breath taking world of Super footwear right at
your feet, within seconds. A virtual Room Service at zero cost, if you will. A MarketingSystem that they've conceived and created, it is understandably, the envy of competition.
Strength:
Liberty upgrade and reengineers their designs every six months so that they have
something new, with it and futuristic every time one visit them. Their shoes are much
more than just bewitching leatherwork .They understand that a shoe for person is an
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extension of his personality. And for one who keeps moving onto to stables of desire
loaded with the exciting world fashion trends they craft the dreams with the help of
Fashion Technologists shut away not in dream bars but with their heart and minds on the
pulse of future fashion.
Product Range
The new range from Liberty is all about style, design, and comfort. The range
imbibes the spirit of fun and is trendy to the core. There is a product for every season and
occasion.
BRANDS
Coolers are a brand of unisex sandals and slip-ons. Catering to a wide segment
across the country Coolers are much sought after not just in the summer season but also
during the monsoons and in the coastal regions for their water-resistant property.
Professionals, undertaking high impact, electrical, thermal, chemical or even
slippage risks, walking over surfaces or operating in environments that expose them to
dangers related to these, use a pair of Boots that they completely rely on. Whether you are
a power plant technician, alkali unit worker, or even an X-treme sports practitioner, you
will appreciate the safety of FREEDOM Protective Professional Boots. Made from super-
resilient rubber, blended with PVC, these boots afford the protection that no ordinary
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footwear can provide, no matter how well they are constructed. They are resistant to,
electrical shock, mechanical crush, chemical eorrosion and extreme heat and cold. These
boots are also anti-static, anti-slippage, non-tearable. FREEDOM offers safety and
durability that you may have near experienced before.
One looks at following features
Precision moulded from new generation high resilience, high insulation rubber.
Single-piece moulded sole and upper: complete freedom from seepage /
permeation or structural separation.
Exclusive super tough protective sole with stainless steel midsole. Perforation
resistance equivalent to 110daN.
Steel toe-cap for enhanced safety. Capable of 1500 daN level crush resistance.
Re-infroced heel and instep. Built-in ankle protectors.
Thick flexible sole with specially designed foot support for complete walking
balance and comfort, even when worn for long periods.
Super absorbent, rot-proof inner polyester lining for added comfort.
The heel can absorb shocks of up to 20 joules. The specially designed sole has
non-slip grooves along with raised front and-back ends for excellent grip on all
surfaces including planes, ladders, slush etc.
Designed for maximum safety
FREEDOM protective boots are single-piece moulded from high grade PYC with
special blend of rubber. They provide excellent mechanical, chemical and thermal
resistance thus ensuring complete safety. They are 100% waterproof and are designed to
offer supreme foot comfort and supports as well
For a better grip on slopes/inclines, the sole's front and rear ends are slightly
raised
Optimum clear spacing to avoid build-up of mud and sludge
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Ladder work will be much easier with its Arched non-slip grooves
U-shaped heel with shock absorbent.
Non-woven, absorbent & rot-proof polyester lining for greater comfort
Re-inforced heel & instep
Ankle protectors.
Flexible, perforation resistant sole
Steel Toe-Cap, 1500 daN crushing resistance, 200 Joules shocks resistance.
Reflective media providing visibility in fog, smoke and darkness.
Sporty and vibrant the Force 10 range has been rewriting the industry norms.Constant technology upgradation shave made it one of the more desired brands in the
category.
The brand exhibits the vivacity of children in every way. Colorful and
comfortable, the range has smart sandals, elegant sports shoes and bright colored lace up
to ensure a formal look for the children.
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A pure male fashion brand, Fortune has the latest styles in formal footwear for
men. Its flamboyance gives the brand strong following.
Gliders is a complete range of footwear in itself. Using the trendy EVA
technology it comprises of beach wear to casual as well as formal footwear both in leather
and other innovative material meant. And is perfect for not just grownup boys and girls
but young kids too.
The brand offers women comfortable and fashionable slip-ons, sandals and bellies
with neat styling thrown in, not bordering on the bizarre but acceptable across a wide
spectrum.
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Liberty's Warrior range has over a short period of time developed a reputation
that's an envy of many a competition. The product quality and the range that we produce
have gained acceptability across a varied segment of industrial users. Some of the biggest
corporate houses of the country are sourcing the footwear for their workforce from us.
The product range caters to the building and construction industry, the Oil industry the
health care segment. The range has not just safety shoes but foot wear for the executives
in the company and special footwear for the nurses and the healthcare segment.
A Windsor shoe embodies comfort and style. With its classic looks that's popularamongst the young executives the Windsor brand of shoes are one of the largest set of
Men's shoes sold by Liberty.
Presenting low budget Safety Shoes from the house of Liberty. Workman Safety
Shoe is specially designed & developed for Industries like Construction, Engineering,
Service sector where contractual workers with limited budget are employed.
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A choicest range of school shoes for both boys and gals in buckled and lace type
that makes school going an interesting affair. Available in shining black and pure white,
its wide variety makes way for the wonder years of school life.
SENORITA is a brand for the fashion and style conscious young woman. She's
comfortable expressing herself and makes life beautiful and invigorating whether at work
or home.
INNOVATIVE APPROACHES:
Entire production units of liberty are interlinked by SAP, a unique ERP Solution
implemented for the first time in India in a Footwear Industry with all modules related
with Finance, Logistics & supply chain. It is rare to see such clean, state of the art
production facility in India with following management systems and tools.
KAIZEN is implemented since 2000 and in practice throughout the organization.
5 S Concept is introduced and in practice since 2001 and presently in matured
stage. The impact of 5 S implementation is visible in all dept. and shop floors of
the organization. They may even consider these units are the model units for any
Footwear Industry
LEAN awareness is existing in all production floors of the organization. Value
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streams are standardized for most of the regularly produced articles. Now the
Group is in the process of integrating Lean concept with PP Module of SAP for
controlling the flow.
ISO 9001:2000 CERTIFICATION is awarded to QMS of one of its units and
Group is in the process of getting for other units. Group is having an appointed
MR exclusively for monitoring the Quality System. DNV is the Certifying agency
and auditors of the QMS.
WASTE MANAGEMENT SYSTEM is established in one of their unit and it is a
pilot project. Wastage Identification, handling and disposal are documented and
monitored by frequent internal audits.
WATER MANAGEMENT SYSTEM is existing in the group. Water wastage is
almost nil. Land water is re-cycled in most of their operations.
ISES-2000 norms are followed to ensure the best Social, Health and
Environmental Standards. This standard is monitored by Indo. German Export
Promotion Council of India.
Liberty is the Committee member for setting the standard for Safety Shoes. The
recently released IS: 15298:2000for Safety shoes is followed by Liberty and it is
the first in Shoe Industry have applied for Certification to use ISI Mark.
ENGERGY MANAGEMENT SYSTEM of Liberty is unique in Footwear
Industry. Liberty Units have got lot of incentives / discounts from Haryana State
Electricity Board for maintaining maximum Power Factor.
International Experience:
Liberty has more tl1an25 years of experience in Export Business and enjoying
Status Holder status as "Recognized Export House" of India. In 80's when Soviet
Market was invaded by Indian Exporters, Liberty was the Market Leader in
USSR.
Liberty is having its own office in Russia and Hungary for more than 2 decades.
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Liberty's major operations are mainly with Europe, Middle East, East African,
South African countries and USA.
Major brands of Europe, SALAMANDER, JELA, DEICHMANN, ROMlKA and
USA brands like TODDWELSH are selling only Liberty Shoes under their brand
umbrella.
CONTRIBUTION TO INDUSTRY:
Liberty has pioneered in bringing PU Technology to India. Liberty has given a
presentation on Footwear foot prints for the future in Asia Pacific Customer
Conference 2000 organized by Huntsman Polyurethanes at Singapore on this
technology.
SYMPATEX is a patented technology on Water Proofing recognized world wide.
Liberty is the only company in India having recognition/approval of SYMPATEX
on Waterproofing.
Safety Shoes are brought to Indian Market for the first time and an exclusive
brand WARRIOR was launched by Liberty in Industrial Segment shoes. Our
safety shoes are meeting all DIN/ EN standards in respective segments.
PU technology was introduced to Government Sector, Liberty has set the standard
as member of the BIS Committee. BIS Standard IS: 15298: 2000, applicable for
Safety shoes is the Standard on which Liberty is producing Safety shoes for more
than a decade.
Liberty Enterprises is the model unit for above Standard and complete testing
facility is available only with Liberty in India after FDDI.
Liberty is the First Footwear Manufacturing facility in India awarded with the
latest ISO 9001:2000 Certification.
The first and only footwear Industry in India, having SAP ERP with all modules
related to Inward/ Outward supply chain, Materials, Finance and Costing
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Gharaunda is the first plant of its kind in this part of Asia that is equipped with
Desma machines for PU Direct Injection Moulding. Using PUF technology and Computer
Aided Systems this vertically integrated plant produces Industrial Safety Shoes that are
made to European standards. Sympatex TEX booties as well as ordinary booties are also
made here. Beside these Gharaunda has a design center where an ambitious team of
young designers working in tandem with experienced technologists.
Libertypuram
About 14 km from Kamal this Human tech center, spread across 50 acres of
landscaped greens, has 16 lines for Cement Last Construction footwear, 15 lines for
Direct Injection Moulded footwear and 3 lines for EVA Direct Injection footwear. It is a
manufacturing base for slippers and sandals that put the Chinese sheet slippers to shade,
teenager's shoes with very light PVC soles as well as leather soles, shoes for both sexes as
well as booties for ladies.
Karnal
Liberty's first manufacturing center caters essentially to the domestic market and
produces Cement Last Construction as well as leather sole footwear for both men and
women.
Dehradun
This new Human tech center makes Cement Last Construction footwear as well as
the comfort range of sandals for ladies. It will soon also produce sports shoes for the likes
of Reebok and Nike as well as for the domestic market.
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PERFORMANCE MANAGEMENT
SYSTEM AND EMPLOYEE
WELFARE AT
LIBERTY SHOES LIMITED
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PRESENT EXISTING SYSTEM
LIBERTY considers its employees as the most important asset. The company
ensures the complete satisfaction of the employees so that productivity is maximized.
This is made possible by management by providing healthy climate for individual growth
and development in the company. There is good relationship between employer and
employee.
OBJECTIVES OF PERFORMANCE APPRAISAL:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior
subordinates and management- employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.
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1) ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance of the
employees. This step requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their contribution to the
organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms. In case the performance of the employee cannot
be measured, great care should be taken to describe the standards. KPAs are set for each
employee and they are prioritized. 70% weight age is given to technical skills and 30%
weight age is given to behavioral skills. Behavioral skills expected from employees are
same for all employees. Assessment is done by the head of department.
2) COMMUNICATING THE STANDARDS
Once set, it's the responsibility of the management to communicate the standards
to all the employees of the organization. The employees are informed and the standards
are clearly explained to them. This will help them to understand their roles and to know
what exactly is expected from them. The standards are also communicated to the
appraisers or the evaluators and if required. the standards can also be modified at this
stage itself according to the relevant feedback from the employees or the evaluators
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FORMAT OF PERFORMANCE APPRAISAL FORM
1. Technical KPAs
M.R
E.C.
S.NO. Key Performance
areas & objectives
(K.P.A.s)
Measure
(KPI)
Target Set Target
Achieved
Weightage Week
1
Week
2
Week 3 Week 4 Week
5
%age
Ach.
Amt.
Permissible
Amt.
Qualified
1
2
Total 70
Weightage Excellent
10
Very
Good
8
Good
6
Average
4
Below
Avg.
2
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ii. BEHAVIOURAL KPAs
M.R. Total
Week
Monthly
Inc. Val.
Incentive
4 1100 0.00
S.No. Behavioral Dimensions Weight
age
Week
1
Week
2
Week 3 Week
4
Week 5 Month
Ending %
Amt.
Permissible
Amt.
Qualified1 Initiative taken in solving difficulties
in achieving the objectives.
3.75
2 Creativity had shown in solving
some problems.
3.75
3 Contributions to the building of team
spirit (Through working with others)
3.75
4 Contributions made to the
development of own employees.
3.75
5 Assertive (doesnt yield to deviate
unless supported by genuine reaons)
3.75
6 Sense of responsibility 3.757 Ability to develop system 3.75
8 Problem solving approach 3.759 Any other outstanding (Leave/
Absent)
0.00
Total 30
Weight age Excellent
10
Very
Good
Good
6
Average
4
Below
Avg.
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8 2
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3) MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the
actual performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an employees
work.
Supervisors/Head of Departments appraise the employees. Given below is the list
of departments in Liberty Shoes Limited and their respective head
S. No. Department Supervisor
1 Excise Mr. Ashok Chawla
2 D & D Mr. Chandresh Sharma
3 H.R. Mr. G. S. Saini
4 P.P.C ( Manual) Mr. Sandeep Kaila
5 Finance Mr. Krishan lal
6 I.S.O (9001:2000) Mr. N. K. Joshi
7 Marketing (Export) Mr. Naresh Sharma
8 Marketing (Dom.) Mr. Amrit Arora
9 EVA Compounding Mr. Pardeep (Vicky)
10 Stores (Upper & Sole) Mr. Pritam Sharma
11 P.P.C (SAP) Mr. Sandeep Kaila
12 EVA Inj. FW Mr. Suresh Kamboj
13 Maintenance Mr. Virender Narwal
14 Material Management Mr. Anil Agarwal
15 PVC Inj. F/W Mr. Suresh Kamboj
17 Cutting Mr. S.S. Yadav
17 Closing Mr. A.J. Chisty
18 Fabrication Mr. Pritam Sharma
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19 Quality Shri N.K. Joshi
20 Stuck-on Mr.. K. Pandey
4) COMPARING THE ACTUAL WITH DESIRED
PERFORMANCE
The actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the
standards set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance depicting
a negative deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees' performance.
5) DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching consensus. The feedback should be given with a positive attitude as
this can have an effect on the employees' future performance. The purpose of the meeting
should be to solve the problems faced and motivate the employees to perform better.
6) DECISION MAKING
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or the
related HR decisions like rewards, promotions, demotions, transfers etc. If the employee's
performance is below desired level then proper training is provided to him.
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KPA BASED COMPENSATION
Average marks obtained in KPA (in %) % of incentive amount achieved
100 To 95 150
94 To 90 125
89 To 85 110
84 To 80 100
79 To 60 80
59 To 50 65
49 Or less 50
The motive of defining such compensation system is that if the individuals areperforming well and maintain as it is then they should get 100 ~ for the same. They
should know their areas of target so that they will improvements/new targets so that they
will reach up to the 150%in coming year. Incentives are quarterly calculated.
EMPLOYEE WELFARE
Welfare includes anything that is done for the comfort and improvement of
employees and is provided over and above the wages. Welfare helps in keeping the
morale and motivation of the employees high so as to retain the employees for longer
duration. The welfare measures need not be in monetary terms only but in any
kind/forms. Employee welfare includes monitoring of working conditions, creation of
industrial harmony through infrastructure for health, industrial relations and insurance
against disease, accident and unemployment for the workers and their families. Labor
welfare entails all those activities of employer which are directed towards providing the
employees with certain facilities and services in addition to wages or salaries. Liberty
provides various welfare services to its employees.
SAFETY HEALTH AND ENVIRONMENT COMMITTEE
Environmental Matters
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(a) To review and monitor the environmental policies and activities of the
Corporation on behalf of the Board so that the Corporation is in compliance with
environmental laws and legislation;
(b) To recommend actions for developing policies, programs and procedures so that
the principles set out in the Corporation's Environmental Policy Statement are
being adhered to and achieved.
(c) To review and report to the Board on the sufficiency of resources available for
carrying out the actions and activities recommended;
(d) To report regularly and on a timely basis to the Board on matters coming before
the Committee relating to environmental policies and activities of the Corporation
for consideration and the manner of disposition; and
(e) To develop a calendar of activities to be undertaken by the Committee for each
ensuing year related to environmental matters and to submit the calendar in the
appropriate format to the Board within a reasonable period of time following each
annual general meeting of shareholders.
Employees' Health and Safety
(a) To review and monitor the health and safety policies and activities of the
Corporation on behalf of the Board so the Corporation is in compliance with
applicable laws, legislation and policies as they relate to the health and safety of
the Corporation's employees in the workplace.
(b) To recommend actions for developing policies, programs and procedures to
ensure that the principles set out in the Corporation's policies related to the health
and safety of its employees in the workplace are being adhered to and achieved.
(c) To review and report to the Board on the sufficiency of resources available for
carrying out the actions and activities recommended;
(d) To report on a timely basis and at least annually to the Board on health and safety
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issues and on the state of compliance with applicable laws and legislation and
adherence to the policies of the Corporation; and
(e) To develop a calendar of activities to be undertaken by the Committee for each
ensuing year related to employees' health and safety and to submit the calendar in
the appropriate format to the Board within a reasonable period of time following
each annual general meeting of shareholders.
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ANTI-SEXUAL HARRASMENT COMMITTEE
Anti-sexual harassment committee is responsible for looking in to any complaints
filed by employees about sexual harassment at the work place. An employee filing a
bonafide harassment complaint shall be protected from reprisals or retaliation as a result
of filing the complaint. Investigators will make every effort to strike a balance between
the parties' desires for privacy and the need to conduct a fair and effective investigation.
Harassment shall subject an employee to disciplinary action up to and including
termination. However, if in fact it is determined through the course of the investigation,
that the incident and thus the accusation were fabricated, the complainant will face severe
disciplinary action up to and including termination.
Complaint and Redressal Mechanism:
Any employee who wants to file a sexual harassment complaint can do by either
sending an email to Anil Sexual Harassment Cell or file written complaint with any
member of the Cell. The complaint should include the specific nature of the incident, date
and place of the incident, names of all parties involved as well as a detailed report of all
pertinent facts. Complaints of harassment will be promptly and carefully investigated.
Investigation will include interview with all relevant persons, including the accused and
other potential witnesses.
TRANSPORT FACILITY
To make employees travel comfortable to and &0 &om work, Liberty provides
transportation to its employees. Liberty has its bus service to different parts of the city.
The company has formulated an optimized vehicle route for the "Pick Up and Drop" of
all employees in the organization
The route facilitate the pickup of maximum number of employees
Separate bus for female employees
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Separate bus for labour and staff.
Records are maintained for in time and out time of vehicles.
The distance to the pick up point for every employee is as less as possible
Vehicles reach each pick up point at specified time.
The distance traveled by every vehicle is optimized
All the employees are required to carry their Id cards while travelling in company
provided vehicles for safety and security reasons.
CANTEEN FACILITY
To provide healthy and hygienic food to employees the company has open a
canteen in its premises from where the employees can get food in subsided cost. The
canteen serves tea/snacks/lunch to the employees as per their needs. The idea is to take
care of their snacks/food requirements within the premises, facilitating their work.
The major conclusion emerging from the study may be summarized as follows:
The organization is very conscious about the welfare of the employees working at
various levels & takes every step to provide more & more facilities to the workers.
There is a statutory liability on the part of employer to provide canteen facilities to
workers. Various eatables are provided to workers on cheap rates. Canteen is
working on no profit no loss.
It is very common that a person cannot work continuously for long period of time,
after a certain period of time he feels need for rest. And it has been found better
results can be obtained as it not only removes the fatigue but also eliminate the
element of monotony and burden.
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Drinking water facility is a pre-requisite of a organization and most of the workers
were satisfied and only little percentage was found to be un-satisfied.
In the organization, first-aid & medical facilities provided to the workers are
excellent. There are well-equipped dispensaries where proper treatment is
provided to workers and their family members.
As for recreational facilities are concerned, there are various types of recreational
facilities which are provided to the workers in the organization like worker's club,
rest house, sports ground etc.
The workers are satisfied with the sanitary conditions facilities provided by the
company.
There are proper provisions for the proper disposal of wastes and effluents and
arrangement of adequate temperature and ventilation in the factory premises.
Regarding relationship between worker and employer, there is an atmosphere of
good harmonious relations which was shared by most of the workers and some
were not sharing good vibes with their superiors.
Thus, we can say that only a contended labor force can prove a right hand to the
employee in achieving organizational activities. And this contended labor force can be
built only when steps are taken for their welfare in every sphere of life. Now company is
aware of this fact and i.e. why it is taking every necessary step which is essential for the
welfare of its employees.
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BIBLIOGRAPHY
Internet sites
www.libertvshoes.com
www.performancemanaqementquide.com
www.humanresources.about.com
www.allbusiness.com
Books
Rao, TV. "Performance Management and Appraisal System",page no.46 to 50, Response
books (2008)
Sahus R K., "Performance Management System",page no. 1 to 28, Excel books (2007)
Recommended