A

Training Report
Titled

A study of Performance Management System

for the training undergone at

Liberty Puram, Kutail

In Karnal District

for the partial fulfillment of the award of degree of MBA-5 year

Submitted to: Submitted by:

Director , IMS Nitika Raghav
5th Semester
Class Roll no. 47
University Reg. No. 08-UD-1133
Batch- 2008-12

Institute of Management Studies

Kurukshetra University, Kurukshetra
 DECLARATION
I hereby declare that I have completed the project entitled “A study of
Performance Management System” assigned to me by “Liberty Shoes ltd.” for the
training report to be submitted in the partial fulfillment of MBA-5yr. Degree from
Kurukshetra University. Further I declare that this is original work done by me and
information provided in the study is authentic to the best of my knowledge belief my
training period was from 01. 07. 2010 to 31. 07.2010.
This study has not been submitted to any other Institution or University for
the award of any other degree or for any purpose.

Dated: - NITIKA RAGHAV

5TH Semester
Class Roll no. 47
University Reg. No. 08-UD-1133

2
 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 “Performance Management System as carried out at Liberty
puram (Kutail). In this report, I have studied &evaluated the performance Management
System process as it is carried out in the company.
In the first section of my report, I have conducted a research study to evaluate the process of
performance Management System as carried out at Liberty puram (Kutail).
The second section of my report deals with a detailed company profile. It includes the
company’s history: its activities and operations, organizational structure, etc. this section
attempts to give detailed information about the company and the nature of it’s functioning.
The third section deals with performance Management System. In this section, I have given a
brief conceptual explanation to performance Management System. It contains the definition,
process and significance of performance Management System. this section also contains my
findings, conclusions, suggestions and feedback.

3
 Acknowledgement
“A drop of ink makes million think”
Any research work is never an individual effort. It is contributory effort of many hearts &
heads. I take this opportunity to express my appreciation & gratitude to all those, with whom
I worked, interacted and whose insides and thoughts help me in furthering my knowledge and
completion of my project report.
A project of this nature is the product of the ideas and experiences of several persons. So, an
undertaking of a work like this is never the outcome of efforts of a single person, rather it
bears the imprints of a number of persons who are behind the curtain.
First of all, I would like to extend my thanks to MR. ADESH GUPTA C.E.O., liberty shoes
Ltd. who exceeded to my request and allowed me to work on this project.
At the earliest, I express my gratitude towards MR.Y. K. SHARMA (Industrial Guide) as a
Asstt. Manager- H.R. of Liberty Shoes Ltd. he always gave valuable guidance through over
the tenure of my work. I also provide thanks to Mr. TEJPAL, JOGINDER and VIKRANT &
other staff member of HR Deptt. of Liberty Shoes Ltd. for their help & cooperation.
I would also thanks to respected director sir and other faculty members of my institute.
Last but not least, I would like highly thanks to my father and all of them who help me
directly and indirectly in accomplishment of my training and give highly cooperation in this
project.

NITIKA RAGHAV

CONTENT

4
CHAPTER TITLE PAGE NO.
NO.
1) INTRODUCTION

2) RESEARCH METHODOLOGY

3) INDUSTRY PROFILE

4) COMPANY PROFILE

5) PROJECT

6) DATA ANALYSIS

7) CONCLUSION

8) SUGGESTIONS

9) BIBLIOGRAPHY

10) ANNEXURE

Chapter 1
5
 INTRODUCTION
Introduction To Company

“THE MAN WHO CANNOT BELIEVE IN HIMSELF CANNOT BELIEVE IN

ANYTHING ELSE.”
……………Roy L. Smith
According to him, the person firstly should try to believe on himself then start to believe on
others and same slogan is proved by these honorable persons late Mr. D P Gupta, late Mr. P
D Gupta and late Mr. R K Bansal. With their efforts they started their business in 25 th Dec,
1954 with five firms :
Liberty Footwear Company
Liberty Enterprises
Liberty Leathers
Liberty Group Marketing Division
Liberty Shoes Limited.
Liberty shoe LTD is one of the oldest companies which completed their life cycle more than
50 years. Company occupies the market share near about 15 to 20 % of the total footwear
market. And get 5th position in the world foot wear market. This position is only possible
with the efforts of the firm and proper utilization of the available funds.
Performance
Employee Performance Management is a process for establishing a shared workforce
understanding about what is to be achieved at an organisation level. It is about aligning the
organisational objectives with the employees’ agreed measures, skills, competency
requirements, development plans and the delivery of results. The emphasis is on
improvement, learning and development in order to achieve the overall business strategy and
to create a high performance workforce.
Performance management includes activities to ensure that goals are consistently being met
in an effective and efficient manner. Performance management can focus on the performance
of an organization, a department, employee, or even the processes to build a product or
service, as well as many other areas.

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OBJECTIVES OF THE STUDY

The main objective of this study was to know performance management system in the
organization.The sub objectives that we wanted to achieve are as follows:-

• To know whether the employees are aware of the appraisal system followed by the
company.
• To ascertain that what the factors are those are considered while appraising the
performance of employees.
• To know that whether there is any biasness in the performance appraisal system of the
organization.
• To find out the satisfaction level of employees regarding companies appraisal system.
• To analyze the various factors that can motivate employees in their work.
To invite suggestions for the welfare of the employees of the company.

Chapter 2

7
 RESEARCH
METHODOLOGY
RESEARCH METHODOLGY

Research is an important pre-requisite for a dynamic organization to be précised. Research is

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

STEPS OF METHODOLOGY

COLLECTION OF DATA
ORGANIZATION OF DATA

PRESENTATION OF DATA

ANALYSIS OF DATA

INTERPRETATION OF DATA

RESEARCH
Research comprises defining and redefining problems, formulating hypothesis or suggested
solutions, collecting, organizing and evaluating data, making deductions and reaching

8
conclusions and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.

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

RESEARCH DESIGN
Research design is a framework or the blue print for conducting the research project.
Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. It
includes an outline of what the researcher will do from writing the hypothesis and its
operational implications to the final analysis of data.
“An overall plan of action to be followed during an experiment to be sure that the
objective are met. Often the specific procedures to solve problems are included in the
research design”
The main objective of over study is to analysis the performance management of the firm
through 360 degree performance appraisal method. This technique are helpful in solving the
problems which we faced during the research. Research Design refers to "framework or plan
for a study that guides the collection and analysis of data". A typical research design of a
company basically tries to resolve the following issues:
Determining Data Collection Design
Determining Data Methods
Determining Data Sources
Determining Primary Data Collection Methods
Developing Questionnaires
Determining Sampling Plan

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TYPES OF RESEARCH DESIGN
Exploratory research design
Descriptive research design

EXPLORATORY RESEARCH DESIGN

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

DESCRIPTIVE RESEARCH DESIGN

This research is the most commonly used and the basic reason for carrying out descriptive
research is to identify the cause of something that is happening.
The research design is the master plan specifying the methods and procedures for collecting
& analyzing needed information. The research design in this project is DISCRIPTIVE.
Descriptive research includes surveys & facts findings.

SOURCES OF DATA
It is of two types:-
Primary Data
Secondary Data

PRIMARY DATA
Primary data are those data, which is originally collected. It is of following type’s
questionnaire, interview, observation etc.

SECONDARY DATA
Secondary data are those data which are collected and which has been passed through
statistical research.In this project, secondary data has been collected from following sources:-
Annual Reports
Books
Internet
Other material and report published by company

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SAMPLE DESIGN
Sample design is a technique or the procedure which the researcher would adopt in selecting
items for the sample. It is not possible for any researcher to include each and every member
of the universe in his research process. So, he selects small portion of the universe, which is
its true representative. This group known is sample and this process is called Sampling.

Sample designs are basically of two types:

Non – Probability Sampling
Probability Sampling

NON- PROBABILITY SAMPLING

In this items for the sample are selected deliberately by the researcher, by using his own
judgment. In this every item of universe does not have equal chances of inclusion in the
sample.
It can be of following type:
Convenience Sampling
Judgment Sampling
Quota Sampling

PROBABILITY SAMPLING
It is also known as Random Sampling or Chance Sampling. In this, each population element
has equal chance of selection.
It can be of following type:
Random Sampling
Stratified Sampling
Cluster Sampling
Multi stage Sampling

In this project, non - probability sampling has been used because sample is selected by own
view and every item of universe has not equal chances of being selected. Under non-
probability sampling, convenient sampling has been used because sample has been selected
according to own convenience.
Sampling size: This refers to the number of person institution to be surveyed. Total sampling
size of this study is 50

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Sampling procedure: This refers to the procedure by which respondents should be chosen.
This study is conducted on the basis of convenience sampling and judgment sampling.

DATA COLLECTION METHODS:

1. Primary data is gathered through a survey conducted on employees.
2. Secondary data is collected from internet, files, record books, company manuals and books
Research instrument used in this project report for collecting primary data is
Questionnaire
INSTRUMENT USED: Questionnaire
SAMPLING TECHNIQUE: Random sampling

DATA ANALYSIS:
The data collected through survey was analyzed with the help of simple percentages, tabular
and graphic methods which included pie charts, bar graphs are used to analyze the data.

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

Chapter 3
INDUSTRY PROFILE
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 Overview of the footwear industrial sector

Footwear has become out as one of the basic needs and necessities of today’s human being. It
is as important for a human being as clothes and shelters. The importance of this product has
been highly recognized in the western countries. Footwear industry in these countries come in
the category of other developed industries, for example Nike’s and Reebok’s of
America,Lapsa2 of U.K., Goose of Italy are some of the highly reputed companies
manufacturing hi-tech shoes and having worldwide acceptability. The footwear industry in
India is somehow different and regretfully his industry could not develop itself despite the
fact that India being second largest populated country in the world, surplus manpower and
resources of raw materials, whatever the reason being
The footwear sector is a diverse industry which covers a wide variety of materials (textile,
plastics, rubber and leather) and products from different types of men's, women's and
children's footwear to more specialized products like snowboard boots and protective
footwear. This diversity of end products corresponds to a multitude of industrial processes,
enterprises and market structures.
Footwear industry action aims to promote innovation, competitiveness and competition
between companies involved in the sector, combat fraud and counterfeiting, and protect
consumers' health and the environment.
The Indian footwear industry consists of a large number of small enterprises most of which
are located in regions with little industrial diversity. However, there are differences from one
member state to the other.
Footwear is expected to comprise about 60% of the total leather exports by 2011 from over
38% in 2006-07.
Presently, the Indian footwear market is dominated by Men's footwear market that accounts
for nearly 58% of the total Indian footwear retail market.
By products, the Indian footwear market is dominated by casual footwear market that makes
up for nearly two-third of the total footwear retail market.
The Indian footwear market scores over other footwear markets as it gives benefits like low
cost of production, abundant raw material, and has huge consumption market.
The footwear component industry also has enormous opportunity for growth to cater to
increasing production of footwear of various types, both for export and domestic market.

13
 Chapter 4
Company profile
The Company

14
 (LIBERTY SHOES LIMITED, LIBERTY PURAM)

INTRODUCTION

Liberty Group, come a long way since it began its operations a little over 50 years ago in the
city of Karnal, Haryana. The emphasis since the very beginning has been to offer “great
products at value for money or affordable prices”. This led to the development of Liberty
Patented “HUMANTECH” approach which synergize traditional workmanship with state of
the art technology to provide the best quality at the most competitive price.Liberty Group
companies, set various benchmarks in Footwear Manufacturing within the Group’s
Production facilities and also to Industry.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.
The importance of footwear is highly recognized in western and other advanced countries, so
the footwear industry grew in full swing that originated big companies like Nike, Reebok,

15
Gucci, and Addidas etc. But the scenario in India is somewhat different and regretfully as the
industry could not develop itself despite the fact that India being second largest populated
country in the world, surplus manpower and resource of raw material, whatever the reason
being.
Till the mid of 20th century, the bulk of shoe industry was in cottage sector. Professional
cobblers were responsible for production of every type of shoes. But in the past one decade
the situation has completely changed because new generation of professionals did not adopt
this line as shoemaker and preferred to join white-collar jobs.

HISTORY

Liberty Group started operation in 1954 and comprises of five firms, namely:
 Liberty Footwear Company
 Liberty Enterprises
 Liberty Leathers
 Liberty Group Marketing Division
 Liberty Shoes Limited.
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 thought 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.
The company was incorporated on the 3rd September 1986 as a Public Limited Company and
obtained the Certificate of Commencement of Business on 11th March 1988. The company
has been set up to manufacture and sell leather and non-leather shoes, leather shoe uppers and
leather garments. Presently the company is engaged in the manufacturing of leather and non-
leather shoes.

16
It had also set up a joint venture in Russia to manufacture shoes in 1991 under the name of
M/S Gorky Production 7 shoes Unit, gorky. The Company is marketing its product nationally
and internationally under the brand name LIBERTY and is well established in the national
and international market. The company had entered into an agreement with one of the group
firms M/S Liberty Enterprises for using the established brand name Liberty.
The company commenced its commercial production for non-leather shoes on 25th December
1993. Initially one direct injection-soiling machine was installed with a capacity of 24000
pairs per annum on single shift basis. The second direct injection soiling machine was
installed in March 94. From the commencement of commercial production till 31st March
1994, the company has been operating on full capacity.
In 2000 the company entered into an agreement for sale/purchase of goods and/or taking on
franchise basis the production of franchise basis the production facilities and/or acquire
movable and immovable property including plant and machinery, building etc. with Liberty
Group Marketing Division and/or Liberty Enterprises, partnership firms.
In 2003 Liberty Footwear introduced its innovative Liberty Footstylers collection. It is also
unveiling a slew of shoes whose price ranged between Rs 1,500 and Rs. 2,500, higher than its
other products such as Gliders, Windsor and Senorita.
 Pearl Academy inked pact with Liberty Shoes.
 In 2004 Liberty Shoes Board approves setting up of subsidiary Company.
 Mr. Adesh Gupta presently working as Executive Director of the Company since July
16, 2001, was elevated as ‘Chief Executive officer’ (CEO) of the Company.
 Liberty Shoes Limited launched its retail format, Revolutions.
 Liberty Footwear Company Ltd’s claimed to use brand name “Revolution” for its new
footwear retail chain has been challenged by a Delhi-based women’s wear chain
Revolution Clothings, which too, has claimed ownership of the same brand name.
 In 2005 Liberty unveiled new range of footwears.

MISSION

 To ensure that the method we use is the latest technology world-over.

17
  To walk that extra miles to ensure customer satisfaction worldwide, to remain a true
cosmopolitan to the spirit.
 To remain a great corporation to associate with, to work for, to know that:
“We Are About People”.

SOCIAL CONTRIBUTION

 Liberty Footwear Training Institute formed by Directors is developing the local public
as technicians of Footwear Industry.
 Management of Liberty Sponsors the children of Liberty Employees for higher
studies gives training and employment after graduation in FDDI.
 Social and Environmental Standard ISES-2000 is in practice with Liberty. This
standard is being monitored by Indo German Export Promotion Project in India.
 The products being used by Liberty are Eco-friendly and providing latest technology
to Industry when Indian Markets related with Environment & Safety are not even aware about
the new standards and technology.

DIRECTORS AND OFFICERS

BOARD OF DIRECTORS
• Adarsh Gupta
• Shammi Banal
• Adesh Gupta
• Harish Kumar Gupta
• Sunil Banal
• Salish Kumar Gupta
• S.K,Goel
• Sandeep Raja Goyal

AUDIT COMMITTEE

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• Sunil Bansal
• S.K. Goel
• Sandeep Raja Goyal
• Rajeev Goel

SHARE TRANSFER COMMITTEE

• Adarsh Gupta
• Sunil Bansal
• Sundeep Raja Goyal

MEMBERSHIP AND CERTIFICATE

• Federation of India chambers of commerce & Industry (FICCI)

• Confederation of India Industry (CII)
• PHD Chamber of commerce and Industry (PHDCCI)
• The associated chambers of commerce and Industry of India (ASSOCHAM)
• Federation of India Export Organization (FIEO)
• Council for Leather Export (CLE)
• ISO 9001: 2000

Liberty has production facilities at the following locations:

• Gharaunda, Haryana, (Approx.95 K.M. from Delhi)

• Libertypuram, Haryana (Approx.102 K.M. from Delhi)
• Karnal, Haryana, (Approx.124 from Delhi)
• Satiwala, Poanta Sahib, Himachal Pradesh (Approx 225 K.M. from Delhi)
• Batamandi, Poanta Sahib, Himachal Pradesh (Approx 229 K.M. from Delhi)
• Dehradun, Uttranchal (Approx. 300 K.M. from Delhi)
• Roorkee, Uttranchal (Approx. 150 K.M. from Delhi)

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 LIBERTY PLANS TO EXPANDS GLOBAL PRESENCE
Liberty group has also established manufacturing plant in Uttrakhand state and opening 25
exclusive outlets across the country as well as in 7 overseas centers. Each outlet is estimated
to see an investment of Rs.7.5 million.
With a turnover of Rs.500 crores the company is emerging as multinational brands with about
350 Exclusive distributors all over the world. “As opposed to the earlier model of expending
retail outlets we plan to bring down the number of retailer from 5000 to 4000”. We do not
want retail presence for name shake; the ideas to have real brand presence, Liberty plans to
open super premium at Singapore, Kualampur, Dhaka, Colombo and Dubai by 2008. They
currently exports about 25% of footwear production to Germany, Italy, France, United States
and the Middle East.

COMPANY PROFILE AT A GLANCE

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Year of Establishment : 1954
Employment : Above 5000 employees

Business Investment : US$ 100 Million

Status of Business : Flagship company of the group, Liberty Shoes
COMPANY PHILOSOPHY
Ltd., a public limited company listed in all
major stock exchanges of India
Present Activities : Second largest footwear manufacturer in the
country having fully integrated plants to
manufacture various kind of footwear with
Annual Production of aver 10million pairs.
Annual Turnover : Over US $ 125 Million
Brand Equity : Mother Brand LIBERTY is ranked among Top
100 brands in the country .Other Successful
National brands, known for its respective
segment of footwear.
Infrastructure : Various plants spread over 200 acres of land in
and around Karnal & Gharaunda, Haryana and
Dehradun ,Uttaranchal supported by storing
Marketing Network having :
• 14 Branch offices
• 02 Overseas offices
• 300 Liberty Exclusive Distributors
• 350 Liberty Exclusive Retail Store
Export : All over the world, mainly with Europe in
• Germany
• United Kingdom
• France
• Spain
• Hungary

Technology : Liberty patented technology “Humantech” is a

combination of human craftsmanship and
technological excellence with following
technologies available in the world for Footwear
Industry.
• Cemented construction
• Direct PVC Injection
• Direct PU Injection
• Direct EVA Injection
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• Direct TPU Injection
• SYMPATEX water proofing
“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 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?”

COMPANY CREDO

• To ensure that the method we use, is the latest technology world over.
• To follow the highest standards of honest workmanship in whatever we make.
• To walk that extra mile to ensure customer satisfaction worldwide.
• To remain a great corporation to associate with, to work for, to know that-
“We are about people”

THE MOTTO

The Motto of Liberty ensures that its employees work towards achieving greater heights. Its
motto is
“ONE STEP AHEAD, ALWAYS
MISSION AND VISION”

Mission:

22
Enrichment of the lives of the customers globally by our commitment to the industry and in
making available product and services that truly matches their desires in terms of style,
comfort and value.

Vision:
To keep us the fantastic growth that liberty has shown ever since its inception.

Objectives:
• Implementing quality management system and continually improving its
effectiveness.
• Acquiring global recognition and progressive increase in customers satisfaction
• Progressive improvement in product quality and productivity
• Progressive decrease in number of internal rejections.
• Improving performance of employees through training and encouraging team work
for finding solution

NATIONAL AND INERNATIONAL AWARDS

The Liberty group has also won several prestigious national and international awards are as
under:
1. Leather exports promotion council merit award (1975) till 1982
2. Haryana govt. export award (1978-1979)
3. International Asian award, Jakarta (1982)
4. European award, Paris (1987)
5. National award for best export garment (1987-1988)
6. International award for good quality, Brussels Belgium (1988)

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PRODUCT PROFILE
POWERFUL BRANDS
FOR MEN:
Coolers, Force 10, Fortune, Gliders, Windsor
FOR WOMEN:
Force 10, Gliders, Senorita, Tiptop
FOR KIDS:
Fortune, Force 10, Gliders, Perfect
SAFETY SHOES:
Freedom, Warrior, Workman

BRANDS
This family brand is style personified with something for every need. Be it formal or casual,
at office or at the beach, a conference or a soiree Liberty fits in effortlessly.

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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.

A pure male fashion brand, Fortune has the latest styles in formal footwear for men. Its
flamboyance gives the brand strong following.

25
A Windsor shoe embodies comfort and style. With its classic looks that's popular amongst the
young executives the Windsor brand of shoes are one of the largest set of Men's shoes sold by
Liberty.

Gliders is a complete range of footwear in itself. Using the trendy EVA technology it
comprises of beachwear to casual as well as formal footwear both in leather and other
innovative material meant. And is perfect for not just grown up 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.

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

26
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 healthcare segment
.The range has not just safety shoes but footwear for the executives in the company and
special footwear for the nurses and the healthcare segment.

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.

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 footwear can provide, no matter how well they are constructed. They are resistant
to, electrical shock, mechanical crush, chemical corrosion 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.

27
Sporty and vibrant the Force 10 range has been rewriting the industry norms. Constant
technology upgradations have made it one of the more desired brands in the category.

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.

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

28
monsoons and in the coastal regions for their water-resistant property.

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.

MARKETING Strategy
Liberty has a distribution Network that rivals the human arterial system reticulate network of
retailers, showrooms and exclusive outlets with a reach like a blue green marine octopus.
Thanks to the vision and drive of our corporate, we now have a sales Network that brings the
breathtaking world of super footwear right at your feet, within seconds. A marketing system
that we have conceived and created is understandably, the envy of the competition.
Marketing National International
Network
Offices 13 2
Distributors 150 10
Exclusive 350 10
showrooms
Shoe stations 7000 500

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

PROCESS FLOW CHART

DESIGN & DEVELOPMENT MARKETING

PRODUCTION MATERIALS
FABRICATION
PLANNING &CONTROL MANAGEMENT

PRODUCTIONS PURCHASINGJOB
W ORK
CUTTING &STORAGE

CLOSING UPPER STORES

EVA INJECTED PVC INJECTED

EVA COMPOUNDING STUCK - ON
FOOTWEAR FOOTWEAR

30
STORAGE &DESPATCHFINISHED
GOODS
SCALING IN ALL DIRECTIONS

31
COMPETITORS

32
ACTION
BATA
SHOES
SHOES

The Journey OF NIKE

33
1960s-Phillip Knight(CEO) & William Bowerman partnered to sell running shoes to
athletes. Headquarters- Washington. 1978 officially renamed itself to Nike.2008- revenue in
excess of $18.6 billion USD.

Marketing Strategy
1) Nike's marketing strategy is an important component of the company's success.
2) Nike is positioned as a premium-brand, selling well-designed and expensive products.
3) Nike lures customers with a marketing strategy centering around a brand image which
is attained by distinctive ‘swoosh’ logo and the advertising slogan: "Just do it".
4) Nike promotes its products by sponsorship agreements with celebrity athletes,
professional teams and college athletic teams.

BATA SHOE ORGANIZATION

34
Bata Industrials Worldwide
1) Today, Bata Industrials is one of world’s largest manufacturers.
2) Bata Industrials has operations and production facilities in most of the Countries
worldwide.
3) Bata Industrials Footwear incorporates more than 100 years of experience.

Bata India Limited:-

1) Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up
initially as a small operation in Konnagar (near Calcutta) in 1932.
2) Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs
and the second largest in terms of revenues.
3) Bata India Limited is the largest footwear retailer in India.
4) Bata India has more than 1250 stores across the Country.

Marketing Strategy
1) Bata is reinventing itself and tries to gain the faith by providing goods according to taste
and preferences of the customers.
2) Target new market- focusing on kids and ladies footwear
3) Improving shoe line - Launching international brands, focus on style will attract new
young customer class
4) Low to medium priced footwear for the common person across the globe.

ACTION SHOES

35
  since 1977 action shoes company came in to the existence
 Action is headquartered in Delhi.
 Quality shoes for the whole family-ranging from casuals to formals.
 Most Action offerings are in the mid - range price segments.
 Complete family footwear
 A backward integration strategy
 A forward integration strategy

Marketing strategy.
 Wide consumer base.
 Wide price products.
 Social responsibility

RELAXO

36
 Relaxo stepped into the footwear industry in 1976 .
 It started off with the manufacture of Hawaii slippers and subsequentl
diversified into manufacturing casuals and school leather shoes.
 From a modest sale of around Rs. 1 million in the year 77-78, it has today crossed the
Rs. 2000 million+ figure.
 Relaxo has the capacity to manufacture over 100 million pairs, per annum.
 customer base of around 100 million people.

Marketing strategy
 Economies of scale.
 Hitting customer base in lower and middle class. Slippers & School shoes
Low price products with good quality

Chapter 5
37
 PROJECT
PERFORMANCE MANAGEMENT

Employee Performance Management is a process for establishing a shared workforce

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

FEATURES:-

1) the fastest known method for career promotion;

2) the quickest way for career advancement;
3) the surest way for career progress;
4) the best ingredient in career path planning;
5) the only true and lasting virtue for career success;
6) the most neglected part in teachings about management and leadership principles;
7) the most complete and sophisticated application of performance management;

38
 8) the best integration of human behavior research findings, with the latest management,
leadership and organizational development principles;
9) the best automated method for organizational change, development, growth,
performance and profit;

OBJECTIVES OF PERFORMANCE APPRAISAL

 To review the performance of the employees over a given period of time.

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

HISTORY OF PERFORMANCE MANAGEMENT

Performance Management began around 60 years ago as a source of income justification and
was used to determine an employees wage based on performance. Organisations used
Performance Management to drive behaviours from the employees to get specific outcomes.
In practice this worked well for certain employees who were solely driven by financial
rewards. However, where employees were driven by learning and development of their skills,
it failed miserably. The gap between justification of pay and the development of skills and
knowledge became a huge problem in the use of Performance Management. This became

39
evident in the late 1980s; the realisation that a more comprehensive approach to manage and
reward performance was needed. This approach of managing performance was developed in
the United Kingdom and the United States much earlier than it was developed in Australia.
In recent decades, however, the process of managing people has become more formalised and
specialised. Many of the old performance appraisal methods have been absorbed into the
concept of Performance Management, which aims to be a more extensive and comprehensive
process of management. Some of the developments that have shaped Performance
Management in recent years are the differentiation of employees or talent management,
management by objectives and constant monitoring and review. Its development was
accelerated by the following factors:
1) The introduction of human resource management as a strategic driver and integrated
approach to the management and development of employees.
2) The understanding that the process of Performance Management is something that’s
completed by line managers throughout the year – it is not a once off annual event
coordinated by the personnel department.

PROCESS OF PERFORMANCE MANAGEMENT IN ORGANISATION

40
 ESTABLISH
PERFORMANCE
STANDARDS

COMMUNICATING
THE STANDARDS

MEASURING THE
ACTUAL
PERFORMANCE

COMPARING THE
ACTUAL WITH
DESIRED

DISCUSS RESULTS

DECISION
MAKING

1.) ESTABLISH PERFORMANCE STANDARDS

41
The first step in the process is the setting up of the standards which will be used to as the base
to compare the actual performance of the employees. This step requires setting the criteria to
judge the performance of the employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The standards set should be clear,
easily understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards. KPAs are set for
each employee and they are prioritized. 70% weightage is given to technical skills and 30%
weightage is given to behavioural skills. Behavioural skills expected from employees are
same for all employees. Assessment is done by the head of the department.

2.) COMMUNICATING THE STANDARDS

Once set, 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 evaluator

42
43
3.) MEASURE THE ACTUAL PERFORMANCE
The most difficult of the performance appraisal process is measuring the actual performance
of the employees that is work done by the employees during the specified period of time. Is is
a continuous process which involves monitoring the performance throughout the year. This
stage requires the careful selection of the appropriate techniques of measurement, taking care
that personal bias does not affect the outcome of the process and providing assistance rather
than interfering in an employees work.

4.) COMPARING THE ACTUAL WITH DESIRED

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

44
Methods of Performance appraisal
The foregoing list of major program pitfalls represents a formidable challenge, even
considering the available battery of appraisal techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like trying to solve the problems of life
by committing suicide. The more logical task is to identify those appraisal practices that are
(a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles
already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at the
outset of the article, I shall briefly review each, taking them more or less in an order of
increasing complexity.
The best-known techniques will be treated most briefly.

Broadly, all the methods of performance appraisal can be classified into following two
categories:
 Traditional Methods
 Modern Methods

Method of performance appraisal

Traditional Methods Modern Methods

 Essay Method  Management by Objectives

 Graphic Rating Scale  Assessment Centre Method
 Field Review Method  360 Degree Appraisal
 Forced Choice Method
 Ranking Method
 Checklist Method

45
TRADITIONAL METHODS

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

Graphic rating scale

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

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

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

Ranking methods
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective

46
judgment to which a host of additional facts and impressions must somehow be added. There
is no single form or way to do this.
The best approach appears to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking.
1. “Alternation ranking”:Ranking of employees from best to worst on a trait or traits is
another method for evaluating employees. Since it is usually easier to distinguish between the
worst and the best employees than to rank them, an alternation ranking method is most
popular. Here subordinates to be rated are listed and the names of those not well enough to
rank are crossed. Then on a form as shown below, the employee who is highest on the
characteristic being measured and the one who is the lowest are indicated. Then chose the
next highest and the next lowest, alternating between highest and lowest until all the
employees to be rated have been ranked.
2. “Paired-comparison ranking”:
This technique is probably just as accurate as alternation ranking and might be more so. But
with large numbers of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two
or more people are asked to make independent rankings of the same work group and their
lists are averaged), are among the best available for generating valid order-of-merit rankings
for salary administration purposes.

MODERN METHODS

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

Assessment centers
So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion

47
decisions, some prediction of future performance is necessary. How can this kind of
prediction be made most validly and most fairly?

360 Degree Feedback

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

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

48
Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the
employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable
level of job performance. Employees are judged according to real outcomes, and not on their
potential for success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and
varied elements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts, but to put all the parts together and the performance may be directly
observed and measured.

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

BENEFITS OF PERFORMANCE APPRAISALS

• Measures an employee’s performance.
• Helps in clarifying, defining, redefining priorities and objectives.
• Motivates the employee through achievement and feedback.
• Facilitates assessment and agreement of training needs.
• Helps in identification of personal strengths and weaknesses.
• Plays an important role in Personal career and succession planning.
• Clarifies team roles and facilitates team building.
• Plays major role in organizational training needs assessment and analysis.
• Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.

49
 • Plays an important tool for communicating the organization’s philosophies, values,
aims, strategies, priorities, etc among its employees.
• Helps in counseling and feedback.

RATING ERRORS IN PERFORMANCE APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as
'rating errors'. These errors can seriously affect assessment results. Some of the most common
rating errors are: -
Leniency or severity:
Leniency or severity on the part of the rater makes the assessment subjective. Subjective
assessment defeats the very purpose of performance appraisal. Ratings are lenient for the
following reasons:
1. The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will
reflect poorly on his or her own worthiness.
2. He/She may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the ratee.
3. He/She may rate leniently in order to win promotions for the subordinates and therefore,
indirectly increase his/her hold over him.
Central tendency: -
This occurs when employees are incorrectly rated near the average or middle of the scale.
The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts
and anxieties, which the raters have been assessing the rates.
Halo error:-
A halo error takes place when one aspect of an individual's performance influences the
evaluation of the entire performance of the individual. The halo error occurs when an
employee who works late constantly might be rated high on productivity and quality of
output as well ax on motivation. Similarly, an attractive or popular personality might be given
a high overall rating. Rating employees separately on each of the performance measures and
encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.
Rater effect:

50
This includes favoritism, stereotyping, and hostility. Extensively high or low score are given
only to certain individuals or groups based on the rater's attitude towards them and not on
actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type
of error.
Primacy and Regency effects: -
The rater's rating is heavily influenced either by behavior exhibited by the ratee during his
early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the
ratee near the end of the review period (regency). For example, if a salesperson captures an
important contract/sale just before the completion of the appraisal, the timing of the incident
may inflate his or her standing, even though the overall performance of the sales person may
not have been encouraging. One way of guarding against such an error is to ask the rater to
consider the composite performance of the rate and not to be influenced by one incident or an
achievement.
Performance dimension order: -
Two or more dimensions on a performance instrument follow each other and both describe
or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the
second dimension to the first because of the proximity. If the dimensions had been arranged
in a significantly different order, the ratings might have been different.
Spillover effect: -
This refers lo allowing past performance appraisal rating lo unjustifiably influence current
ratings. Past ratings, good or bad, result in similar rating for current period although the
demonstrated behavior docs not deserve the rating, good or bad.

51
 Chapter 6
DATA ANALYSIS
DATA ANALYSIS & INTERPRETATION
Q-1) Do you know the present Performance management system used in
your organization?

Response yes No

Respondents 50 0
0%

yes
no

100%

Interpretation

We can say that 95% employees know the performance management system
used in the organization 5% are unaware of that.

52
Q-2) Are you satisfied with the present PMS used in your organization?

Response yes No Some how Can’t say

Respondents 40 0 10 0

10% 0%
10%
yes
no
somehow
can't say
80%

Interpretation

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

Q-3) The current process is too time consuming.

Response Strongly agree neutral disagree Strongly

agree disagree
Respondents 0 28 11 11 0

53
 0%
22% 0%
s.agree
agree
neutral
56% disagree
22% s.disagree

Interpretation

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

Q-4) Do you think the assessment given by your HOD is on unbiased basis.

Response Strongly agree neutral disagree Strongly

agree disagree
Respondents 10 30 5 3 2

54
 6% 4% 20%
10% s.agree
agree
neutral
disagree
s.disagree
60%

Interpretation

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

Q-5) Team objectives don’t exist.

Response Strongly Agree neutral disagree Strongly

agree disagree
Respondents 10 10 5 15 10

55
 20% 20%
s.agree
agree
neutral
disagree
20%
30% s.disagree
10%

Interpretation

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

Q-6) The focus of performance management is developmental.

Response Strongly Agree neutral disagree Strongly

agree disagree
Respondents 10 25 8 5 2

56
 10% 4% 20%
s.agree
16% agree
neutral
disagree
s.disagree
50%

Interpretation

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

Q-7) Regular feedback of the work is given.

Response Strongly Agree neutral disagree Strongly

agree disagree
Respondents 15 27 3 3 2

57
 6% 4%
6%
30% s.agree
agree
neutral
disagree
s.disagree
54%

Interpretation

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

Q-8) PMS of your company motivates you for work.

Response Strongly Agree Neutral Disagree Strongly

agree disagree
Respondents 9 31 8 2 0

58
 4% 0%

16% 18%
s.agree
agree
neutral
disagree
s.disagree
62%

Interpretation

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

Q-9) PMS is effective in your organization.

Response Strongly Agree Neutral Disagree Strongly

agree disagree
Respondents 13 27 6 2 2

59
 4% 4%
12% 26%
s.agree
agree
neutral
disagree
s.disagree
54%

Interpretation

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

Q-10) Participation in the performance management process is up to the

required level.

Response Strongly Agree Neutral Disagree Strongly

agree disagree
Respondents 8 25 10 5 2

60
 10% 4% 16%
s.agree
20% agree
neutral
disagree
s.disagree
50%

Interpretation

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

Q-11) Personal development plans exist.

Response Strongly Agree Neutral disagree Strongly

agree disagree
Respondents 6 30 5 5 4

61
 8% 12%
10%
s.agree
10% agree
neutral
disagree
s.disagree
60%

Interpretation

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

Q-12) Feedback on good or poor progress is saved up to the end of the year.

Response Strongly Agree Neutral disagree Strongly

agree disagree
Respondents 9 37 2 2 0

62
 4% 0%
4% 18%
s.agree
agree
neutral
disagree
s.disagree
74%

Interpretation

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

Q-13) Is unsatisfactory PMS directly relates to the employee turnover.

Response Strongly Agree Neutral disagree Strongly

agree disagree
Respondents 9 35 3 2 1

63
 6% 4% 2% 18%
s.agree
agree
neutral
disagree
s.disagree
70%

Interpretation

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

Q-14) Self rating is very useful for PMS.

Response Strongly Agree Neutral disagree Strongly

agree disagree
Respondents 8 32 6 4 0

64
 8% 0% 16%
12%
s.agree
agree
neutral
disagree
s.disagree
64%

Interpretation

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

Q-15) what factors from the following are considered in your organization
while appraising the performance.

Response Technicality Team Productivity Waste other

& behavior work management
Respondents 36 4 8 2 0

65
 4%
16% 0% tech.&behavior
8% team work
productivity
waste mgmt
72% other

Interpretation

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

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

Response Once Continuously Never Can’t say

during
the
service
period
Respondents 9 41 0 0

66
 0%
0%
18%
once
continuously
never
can't say
82%

Interpretation

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

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

Response Yes no Can’t say

Respondents 30 20 0

67
 0%

40%
yes
no
can't say
60%

Interpretation

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

Q-18) Based on your qualification, current role, responsibility &

achievement, how do you rank your own performance?

Response Excellent Very good Average Good

Respondents 4 8 18 20

68
 8%
16%
40% excellent
very good
average
good

36%

Interpretation

We can say that 8% employees rank their performance as excellent, 16% as

very good, 36% as average and 40% as good.

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

Response Increase Negative Freedom Positive Any

benefits reinforcement for work reinforcement other
Respondents 12 0 6 32 0

69
 0%
24% inc.benefits
0% negative rein.
freedom for work
posiive rein.
64% 12%
other

Interpretation

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

70
 RESULTS & FINDINGS

• 100% employees know the performance management system used in the

organization.
• More than 50% employees agreed that the present system is time
consuming.
• 60% of the employees agreed that assessment given by their HOD is on
unbiassed basis.
• 30% of the employees are agreed that team objectives do exist.
• 50% of the employees agreed that the focus of PMS is developmental.
• More than 50% of the employees are agreed that PMS in their
organization is effective.
• Half of the employees agreed that participation in the PMS is upto the
required level.
• 60% of the employees are agreed that personal development plans exist.
• 70% of the employees are agreed that unsatisfactory PMS directly relates
to the employee turnover.
• 64% of the employees are agreed that self rating is useful in PMS.

71
 Chapter 7
CONCLUSION
Employee satisfaction is vital factor for the performance of organization
because it provides the basis for the foundation of the organization. On the basis
of study which I gone through, I came to know that employee satisfaction level
is high but there are chances of improvisation.

To increase the level of satisfaction, some more steps can be taken by Liberty
Puram such as self rating by the employees and positive reinforcement system
for increasing the performance of the employees. The primary objective was to
study satisfaction with regard to performance management system of the
organization and from study, I came to know that majority of the employees are
satisfied with policies of the organization. To increase the percentage of
satisfied employees, organization should work for them.

72
 Chapter 8
SUGGESTIONS
RECOMMENDATIONS & SUGGESTIONS

• Appraisal of the performance should be done continuously.

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

73
 Chapter 9
BIBLIOGRAPHY
WEBSITES

 http://www.libertyshoes.com accessed on 15th July 2010

 http://www.performancemanagementguide.com accessed on 17th July 2010

 http://www.humanresources.about.com accessed on 16th July 2010

 http://www.allbusiness.com accessed on 20th July 2010

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 Chapter 10
ANNEXURE
QUESTIONNAIRE

EMPLOYEE INFORMATION
NAME: DESIGNATION:
GENDER: DEPARTMENT:
AGE: SERVICE PERIOD:

PLEASE TICK MARK THE PROPER ANSWER

Q-1) Do you know the present Performance management system used in your
organization?
[1] Yes [2] No

Q-2) Are you satisfied with the present PMS used in your organization?
[1] yes [2] no [3] some how [4] can’t say

Q-3) the current process is too time consuming.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-4) Do you think the assessment given by your HOD is on unbiased basis.

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 [1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-5) Team objectives don’t exist.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-6) The focus of performance management is developmental.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-7) Regular feedback of the work is given.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-8) PMS of your company motivates you for work.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-9) PMS is effective in your organization.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-10) Participation in the performance management process is up to the

required level.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-11) Personal development plans exist.

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-12) Feedback on good or poor progress is saved up to the end of the year.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-13) Is unsatisfactory PMS directly relates to the employee turnover

[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

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Q-14) Self rating is very useful for PMS.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree

Q-15) What factors from the following are considered in your organization
while appraising the performance.
[1] Technicality & behavior
[2] team work
[3] productivity
[4] waste management
[5] other

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

[1]once during the service period [2] continuously
[3] never [4] can’t say

Q-17) If given a chance or opportunity, would you like that the current
procedure should be reviewed?
[1] yes [2] no [3] can’t say

Q-18) Based on your qualification, current role, responsibility & achievement,

how do you rank your own performance?
[1] excellent [2] very good [3] average [4] good

Q-19) What according to you is the best strategy for increasing the employee
performance?
[1] Increase benefits [2] negative reinforcement [3] freedom for work
[4] positive reinforcement [5] any other

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SUGGESTIONS AND
VIEWS…………………………………………………….............

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