LITERATURE REVIEW

Performance results from the interaction of physical financial & human resources.
The first two are inanimate they are translated into “productivity “only when the
human element is introduced. However, the human element interjects a variable
over which a management has a limited control. When dealing with the inanimate
factors of production, a management can accurately predict the input-output
relationship and can even vary the factor it chooses in order to achieve a desire
rate of production. In dealing with employees, however, an intangible factor of
will, volition or freedom of choice is introduced, and workers can increase or
decrease their productivity as they choose. This human quality gives rise to the
need for positive motivation.

Peter Drucker (1990) professional employees the most rapidly growing group,
new promotional opportunities should carry the same prestige, weight & position
as the traditional opportunities for promotion to managerial positions

Richard I. Levin & David S. Rubin (1990-1998) Understanding sampling

distribution allows statisticians to take samples that are both meaningful and cost
effective. Because large samples are very expensive to gather, decision makers
should always aim for smallest sample that give reliable result.

Fred Luthans (1995) Learning is a major psychological process, but it has not
been as popular in the study of organizational behavior as constructs such as
attitudes or motivation. Behavioral management systematically applied through
steps such as Organizational Behavior Model can help meet the performance
improvement challenges facing today‟s organizations in the highly competitive
global economy.
Aswathappa K (1997-2005) An organization‟s goals can be achieved only when
people put their best efforts. Performance Appraisal is the best way, to ascertain
whether an employee has given his or her best performance.

Performance Appraisal is an objective assessment of an individual‟s performance

against well-defined benchmarks.

Anne Bruce & James S. Pepitone (1999) It is no longer sufficient to give people
simplistic, behavioral motivators. Employees today are better informed than ever
before. They are too sophiscated for the Quasi-manipulative tactics that have
worked for many managers in the past?

Beverly Kaye & Sharon Jordan (1999) Reward recognition, which matters
more. Praise or pay. pg 143-151

David R. Hampton (1998) Performance appraisal or evaluation can serve at least

two broad purposes judgment and development. Judgment refers to making
decisions about allocating pay increases and promotions for subordinates.
Development refers to helping subordinates improve performance and acquire
new competencies.

Sue Shellenbarger (1998) As the next century nears; employers are trying with
growing intensity to engage workers from neck up. They are using tender words
like commitment and loyalty to describe the bond they want. Some are hiring
psychologists to study workers; others are routinely taking employee‟s psychic
pulse in painstaking attitude surveys.

C.B. Mamoria, Arun Kumar & Rachana Sharma (2000) Worker‟s

participation in management & profit sharing – Worker‟s participation in
management has been interpreted as the joint consultation prior to decision
making by the management. It has been laid down in India‟s Third Five Year plan
that the success or failure of an undertaking is not the concern of management
alone. For the peaceful evolution of the economics system or a democratic basis,
it is essential that worker‟s participation in management should be accepted as a
fundamental principal & on urgent need.

Tom Coens & Mary Jenkins (2000) The dynamic of people, money &
motivation are too complex to fully understand. However, if your organization
takes time to clarify what it is trying to achieve & builds from healthy underlying
assumptions, it can create more effective compensation practices & a positive
work environment.

Heinz Weihrich & Harold Koontz (2001) Managerial appraisal has sometimes
been referred to as the Achilles‟ heel of managerial staffing, but it is probably a
major key to managing itself. It is the basis for determining who is promotable to
a higher position. One way to integrate organizational demands and individual
needs is through career management.

Porter and Lawler (2000-2006) came out with a comprehensive theory of

motivation. They posit that motivation, performance, and satisfaction are all
separate variables and relate in ways different from what was tradionally
assumed. The figure below shoes the multivariable model of Porter and Lawler.
They point out that an effort (force or motivation) does not directly lead to
performance. It is mediated by ablilities.traits, and role perceptions. More
important – in the Porter and Lawler model – is what happens after the
performance. The rewards that follow and how they are perceived will determine
the satisfaction.

Steven H. Appelbaum & Brenda M. Fewster (2001-2002) In an intensive

competitive marketplace where service innovations are so easily replicated, a key
strategic variable that nobody can copy is an airline‟s culture.

Burack and Smith (2002) - REWARDS AND INCENTIVES - An incentive or

reward can be anything that attracts an employee‟s attention and stimulates him to
work. In other words of Burack and Smith, “An incentive programme is most
frequently built on monetary rewards (incentive pay), but also include a variety of
non – monetary rewards or prizes.”

Incentives, in general are important motivators. Their effectiveness depends upon

three factors: drives, preference value, and satisfying value of the goal objects.

Andrew von Nordenflycht & Jody Hoffer Gittell (2004) Both the qualitative
and quantitative results suggest that relational factors-conflict and workplace
culture-are more important determinants of performance than the structural
factors of unionzation, shared governance, and wages.

Peter Ducker (2004-2007) the foremost management guru has observed that
productivity is the first step of management competence. And, according to
Deming, 85% of all productivity problems relate to management and only 15%
relate to workers performance. Effective managers must demonstrate high
productivity.

We know that productivity is not a measure of production or output. It is an index

of measurement calculated as a ratio of total input. In other words, productivity is
a measure of how well resources are combined and utilized to accomplish desired
results or outcomes.”

J.S.Chandan (2005) It has now become an accepted fact an organization has no

life but for the people working in it. There is thus a shift in the managerial
approach from task oriented. This has resulted in the increased emphasis on the
need for understanding people. Organizational Behavior is the study of individual
& group behavior in a work setting.

Conference paper (2006) Motivation is critical dimension of capacity, defined as

the ability of people, institutions & societies to perform functions, solve problems
& set & achieve objectives There is a distinction between formal incentive &
informal ones. It is thought that intrinsic & extrinsic motivation were additive &
could easily be combined to produce optimal performance.
Vineetha Ravipati and Sujatha Subramaniane (2007) Employee productivity
an effective way to control costs is by increasing the employee productivity, that
is, available seat miles per employee.

Southwest Airlines employee development and retention (2008) Companies

can learn form best practices followed at Southwest Airlines to provide
assessment and coaching to enhance employees‟personsal and professional
growth. An online component to help assign and align people‟s personal
development needs as well as enhancing their strengths in order for them to grow
more effectively and a skills assessment and skills management system to help
judge each employee‟s degree of fit with a particular job role and the company.

R J Devi and B V S Prasad (2008) - Effective Performance Management –

Approaches and Experience - Today‟s competitive environment forces every
organization to identify under performers because they are harmful to the
organization, in spite of their good behavior. If organizations do not pay attention
to under performers, it may affect the performers too. It is a natural tendency
among employees to feel that the organization should recognize their performance
and reward them appropriately.

Gary Dessler & Biju Varkkey (2008) Tying worker‟s pay to their performance
is widely popular. Indeed with the emphasis on competitiveness, productivity and
delivering measurable bottom line results the trends for virtually all employers is
to tie at least some portion of their worker‟s pay to the worker‟s and / or the
company‟s performance. In India, pay performance is gaining wide acceptance
and having a Performance linked pay (PRP) plan is considered as a good HR
practice.

Stephen P. Robbins (2008) Organizational behavior is an applied behavioral

science that is built upon contributions from a number of behavioral disciplines.
The predominant areas are psychology, sociology, social psychology,
anthropology, and political science. The decision to perform that is to work hard
in pursuit of high levels of task performance (satisfaction causes performance/
performance causes satisfaction/ rewards cause both performance and satisfaction

The Porter and Lawler model has definitely made a significant contribution to the
better understanding of work motivation and the relationship between
performance and satisfaction. But to date, it has not made impact on the actual
practice of HRM.

There are various factors that contribute to productivity. Basically productivity is

the result of efficiency of the workforce besides other resources. It is the people
who take care of the finances, it is the people who order and maintain supplies, it
is the people who man the machines, and it is the people who maintain the
processes. Therefore, the efficient utilization of the resources is in the hands of
the human resource. With the rate of change today, though the same resources are
being used, but there is a constant need to update and upgrade the competencies
of the workforce. Hence the HR developer‟s role has become even more
important. However, the other needs of the human resource, besides skills
development and education, have also increased in demand.

“Human Resource (HR) Managers must with the times and keep abreast with
developments. They must be pro-active, innovative and move into new frontiers
and paradigms to achieve standards of excellence.”

According to Schuster the success of any organization is the relentless pursuit of

continuous performance improvement.

Human Performance Technology: With reference to the need for continuous

performance improvement, the concept of Human Performance Technology
(HPT), is gaining interest among organization today. Human Performance
Technology has evolved since the 1960‟s.The International Society for
Performance Improvement (formerly known as the National Society for
Performance and Instruction) has contributed largely to the propagation of the
technology as an approach to improving human performance in the workplace.
Sometimes it is called just Performance Technology but the human aspect must
not be forgotten as the focus is on the people in the organization system.
Performance indicates some output, a result, an achievement or something carried
out to a desired accomplishment level. The word technology generally brings
images of mechanism but in this sense it refers to some systematic, researched
procedure to deal with problems and issues in the workplace.

R J Devi and B V S Prasad (2008) - Effective Performance Management –

Approaches and Experience - Today‟s competitive environment forces every
organization to identify under performers because they are harmful to the
organization, in spite of their good behavior. If organizations do not pay attention
to under performers, it may affect the performers too. It is a natural tendency
among employees to feel that the organization should recognize their performance
and reward them appropriately.

Schachaceter (2008) Two-factor theory it is also known as

Herzberg‟smotivation-hygiene theory and Dual-Factor Theory states that there are
certain factors in the workplace that cause job satisfaction, while a separate set of
factors cause dissatisfaction.

Smita Gupta (2009) in her book Effective Performance Management explains

that performance management aims at improving the performance of the
employees with the help of a broad set of activities It aims at as well as helps in
motivating and improving the performance of individuals and that of the
organization.

Johanna Mac Neil (2009) The ideas, complimented with some selective but very
interesting data on trends in profit, industrial action, costs, aircraft and labour
productivity, service quality and employee morale, provide the foundation for a
clear and engaging overview of what has happened in the airline industry in the
last 30 years.
R. N. Misra (2009) Human Resource Management After Globalization says:
“Beyond subsistence level, becoming needs 9 self- actualization needs) posses
greater preference value and satisfying than deficiency needs (which are
necessary for survival). Below the subsistence level, however the reverse holds
true.” He makes the following generalization:
Incentives, whether they are monetary or non monetary, tend to increase
the level of motivation in a person.
Financial incentives relate more effectively with basic motivation or
deficiency needs.
Non – financial incentives are linked more closely with higher motivation,
or becoming needs (not possessed by many individual in the organization).

The higher the position of a person in an organization‟s hierarchy, the greater is

his vulnerability to non-financial incentives.

Brenda Scott-Ladd, Antonio Travalglione, Chris Perryer & David Pick

(2010), Managers at all levels have to deal with changing organizational
structures, work patterns and diversity management strategies if they are to retain
„top talent‟ and become employers of choice.

HPT is relevant to organization s because it adopts a systematic view of

organizations weaving all aspects of organizational behavior into the performance
fabric. Another important aspect of HPT, according to Rosenberg (1982 -is that
“…It is evolved from the realization that instructional or training systems were
ineffective or inappropriate if other factors were not attended to.”

Gilbert calls a performance audit based i.e. opportunities based on the following
steps:
Identify current accomplishments
Identify desired accomplishments
Identify exemplary (realistic potential) performance
Measure exemplary performance
 Measure typical performance
Computing the potential for improvement
Translating the potential into economic stakes

The HPT Model is very much akin to the Instructional technology. The difference
is in that the parameters are wider and the Performance Technologist has to be a
generalist with knowledge of various interventions but with expertise in some of
them. In this context it has to be a collaborative effort in dealing with problems
rather than leaving the onus on the trainers or individual consultants. It caters for
Wider responsibility from within the organization
Higher accountability
Greater commitment
More cooperation
Alignment to organization objectives
Staff attuned to problem solving culture
Focused to measurement and result

CAPA Center for Aviation (22 June 2010) Human resource issues remain
Following Air India – Indian airlines Merger. Promotion and career progression:
Establishment of departmental promotion committees to recommend and review
promotions formed of equal numbers of workers from Air India & Indian
Airlines.

Times of India PTI (Oct 31st 2011), Air India Pilots allege discrimination,
threaten to quit. The decision and action of management provide a windfall gain
to the pilots of Indian Airline at the expense of the career progression prospects of
the pilots of erstwhile Air India.

The Economic Times (4th May 2012) Government links AI‟s equity infusion to
performance says airline to get funding only if it achieves targets.
Times of India PTI (May 15th 2012) Pilots‟ strike Air India stops international
booking.

The Economic Times (10th August 2012) James Thomas Productivity measures
are stringent for workforce but engagement initiatives for them are relatively low.
The initiatives to engage are usually restricted to the senior employees.

The Economic Times (28th August 2012) Yasmine Taj A talent strategy that
emphasis the frequent use of the right financial ad non financial motivators would
benefit most companies in bleak times and fair.

Thomas F. Gilbert (2012) Review - Beginnings of Engineering Staff

performance, Peter J Dean 2008 analysis, Thomas F. Gilbert, frequently referred
to as the Father of HPT, explains that “The purpose of performance ….is to
increase human capital which can be defined as the product of time and
opportunity…. technology is an orderly and sensible set of procedure for
converting potential into capital.”

V. R. Krishna Iyer (2012) In service jurisprudence, integration is a complicated

administrative problem where, in doing broad justice to many, some bruises to a
few cannot be ruled out. Some play in the joints, even some wobbling, must be
left to government without fuss forensic monitoring….‟All life including
administrative life, involves experiments, trail and error, but within the leading
strings of fundamental rights and absent unconstitutional excesses.‟