CHAPTER -1

INTRODUCTION

1
1.1 Introduction:

A performance management system is a comprehensive approach that organizations use

to align employee performance with the company's strategic objectives. It involves a
systematic process of planning, monitoring, evaluating, and recognizing employee
performance to optimize workforce productivity and foster a culture of continuous
improvement.

The performance management process aims to create an environment where individuals

can thrive and contribute to the collective success of the company. It encourages
collaboration between managers and employees in setting objectives and understanding
the broader context of their roles. A well-structured performance management program
bridges the gap between employees and the organization's mission, enabling a mutual
understanding of expectations and goals. It facilitates the allocation of resources in
accordance with the company's performance budget.

Effective performance management empowers managers to act as coaches, fostering a

more encouraging and engaging work environment. Regular feedback and open
communication reduce the likelihood of negative surprises during performance appraisals.
By implementing a performance management system, organizations can benefit from
increased workforce productivity, higher employee engagement, lower turnover, and
maximized revenue per employee

A performance management system is a comprehensive and continuous process designed

to enhance the performance of individuals and teams within an organization, ensuring
alignment with the organization's strategic goals. At its core, the system begins with goal
setting, where clear, measurable, and achievable objectives are established for employees.
These goals are directly linked to the overarching aims of the organization, ensuring that
every individual's efforts contribute to the larger mission.

2
 Performance Performance
Standards Measurement

Performance
Management
System

Reporting Quality Improvement

of Progress Process

Definition of performance management system:

According to Armstrong and Baron (1998), Performance Management is both a strategic

and an integrated approach to delivering successful results in organizations by improving
the performance and developing the capabilities of teams and individuals.

PMS (Performance Management System) refer to a go-together of planning, feedback and

evaluation activities that “gives employees the means, motivation, and opportunity to
improve firm-level performance” (Schleicher et al., 2018, p. 2211). Despite their
importance, PMS have so far mainly been studied in relation to task-related behaviors
(Berdicchia et al., 2022). For long time, the idea that PMS can also stimulate proactive
behaviors, which by definition are self-initiated behaviors, has been dismissed over
criticisms that PMS are often reduced to administrative chores, disconnected from day-to-
day activities and with little motivational value (Mertens et al., 2021; Murphy,
2020). While recent insights suggest that some PMS activities do have proactive potential,
few studies have made the case for when and how PMS foster proactive behaviors, like
IWB (Berdicchia et al., 2022; Van Veldhoven et al., 2017). Addressing this gap is
important given that PMS are gradually evolving from a results-oriented focus towards a
development-oriented focus concerned with a more diverse range of positive employee
outcomes (Aguinis et al., 2012; Bizri et al., 2021; Kubiak, 2022; Van Veldhoven et al.,
2017).

3
1.2 Significance of performance management system:

A Performance Management System (PMS) is a critical organizational tool designed to

ensure employees' activities and outputs align with the company's strategic objectives. Its
significance lies in several key areas. Firstly, it provides a structured approach to setting
expectations, monitoring progress, and evaluating outcomes, which fosters clarity and
accountability within the workforce. Secondly, PMS facilitates continuous
communication between employees and managers through regular feedback and
performance reviews, enhancing employee engagement and development. This system
also identifies training and development needs, ensuring employees have the necessary
skills and knowledge to perform effectively. Moreover, a well-implemented PMS aids in
recognizing and rewarding high performers, thus motivating employees and promoting a
culture of excellence. Additionally, it supports data-driven decision-making by providing
insights into employee performance trends, which can inform strategic planning and
resource allocation. Ultimately, a robust Performance Management System contributes to
improved organizational performance, higher employee satisfaction, and the achievement
of business goals. One of the key benefits of a PMS is the enhancement of communication
and feedback mechanisms within the organization. Regular performance reviews and
continuous feedback help create an open dialogue between employees and managers,
allowing for timely identification of performance issues and opportunities for
improvement. This ongoing communication is essential for maintaining high levels of
employee engagement and satisfaction. Moreover, a PMS is instrumental in identifying
training and development needs, ensuring that employees have the necessary skills and
knowledge to perform their tasks effectively. By highlighting areas for improvement and
providing targeted development programs, organizations can enhance their overall
competency levels. Additionally, recognizing and rewarding high performers through a
structured PMS motivates employees and promotes a culture of excellence. It helps in
boosting morale and job satisfaction, which are crucial for retaining top talent. Data-driven
decision-making is another significant advantage of implementing a PMS. The system
provides valuable insights into employee performance trends, enabling informed decisions
regarding promotions, compensation, and workforce planning. This data also supports
strategic planning and resource allocation, ensuring that the organization focuses on areas
that drive business growth. A well-implemented PMS also promotes accountability and
transparency by setting clear performance expectations and providing a fair evaluation

4
process. This approach helps in maintaining ethical standards and protecting the
organization from potential legal issues related to employment practices.

Furthermore, a robust PMS contributes to performance improvement by continuously

monitoring and evaluating employee performance. This proactive approach allows for the
implementation of improvement plans, ensuring that employees receive the necessary
support to enhance their performance. By fostering a supportive and transparent
performance culture, a PMS can also improve employee retention, as individuals are more
likely to stay with an organization that invests in their development and recognizes their
contributions. A Performance Management System is not just about evaluating employee
performance; it is a comprehensive approach that supports continuous improvement,
strategic alignment, and organizational success. By effectively managing performance,
organizations can build a high-performing culture, drive business growth, and achieve
long-term sustainability. A Performance Management System is essential for driving
organizational success. It supports continuous improvement, strategic alignment, and
employee development, contributing to a high-performing culture. By effectively
managing performance, organizations can achieve their business goals, enhance employee
satisfaction, and ensure long-term sustainability.

Efficiency

Scope Monitored

Performance
Goal Priorities
Management

Improvement Balanced
scorecard
Time

5
1.3 Literature Review:
 Othman et. al. (2017) revealed that the role of academic staff in education services is
undeniable. Their good performance will lead to higher education institutions’
performance as well as a country as a whole. Their performance will be affected by
many factors such as motivational factors, government and organization’s policies,
organizational factors and work-life balance.
 Ramila Ram Sign & S. Vadivelu (2016) mentioned in their paper about performance
appraisal in India. Employee retention in an organization is a difficult task for the
management. Motivation plays a key role in this aspect. Performance appraisal is
useful for salary increments, promotion, staff retention and to reinforce staff behavior.
 Kona Yasoda (2016) described globally trending models like Team Performance
Appraisal, 360 Degree Appraisal, Rank and Yank strategy, the new model and real-
time feedback performance management.
 K. Chandhana and Dr. David T Easow (2015) in their article titled ‘Performance
Appraisal Method Used in Top 10 IT Companies – 360 Degree Feedback & Balanced
Score Card: A Review’ has found that the 360degree feedback and balanced score
card has its own loopholes, through these methods are being used by top IT companies.
The satisfaction levels of employees towards these appraisal methods are very low
and there is a need for a new appraisal method which prevents these errors and has
the advantages of these methods.
 Rajput, et al, (2015) in their article titled ‘Performance Appraisal System’ explain that
performance appraisal is conducted on an annual basis for existing employees whereas
for trainee and new recruits it is done on quarterly basis in many organizations. Here,
the author studies about the multidimensional nature of a job where the nurse manager
gives ratings to different jobs of nursing process. Thus, employees who have relatively
less competition or lenient appraisers have higher appraisals than equally competent
employees.
 Rinku Sanjeev and Sanjeev Kumar Singh (2014) in their article titled ‘Employee
Perception towards Performance Appraisal Program in Packaging Industry’ suggest
that employees have both positive and negative perceptions towards the Performance
Appraisal Programme in the packaging industry. The employees also believe that it is
not helpful in reducing grievances among the people. Employees’ perceptions also
vary according to their demographic differences. The Performance Appraisal

6
 Programs need transparency and well explained parameters for the acceptance and
satisfaction of employees as these impact the overall organizational performance.
 Jawad et al., (2014) ‘Impact of Technology on Performance of Employees (A Case
Study on Allied Bank Ltd, Pakistan)’found that the investment of organizations in
new technology has a good impact on the performance of employees; it increases their
efficiency and productivity. It also makes the organizations more competitive
regarding customer services, like, in the case of Allied Bank, it has become more
customer focused and services oriented.
 Agyemang & Ryan (2013) examines organizational change processes that occur when
accountability is demanded from powerful external stakeholder’ change. It
investigates, firstly, whether these external accountability demands impact on the
performance management systems of two different types of organizations.Secondly,
it considers whether the goals for improved performance contained within the external
accountability demands are realized. In the public sector case study, the organizations
tended to reorient their performance management systems towards the external
accountability demands; whilst in the private sector organization, pressures from
falling share prices forced managers to focus their decision making on the preferred
performance measures contained in shareholders’ accountability demands.
 Sunil Kumar Pradhan and Dr. Suman Kalyan Chaudhury (2012), This study found
that the main objective of a performance management system is to align the individual
and organizational goals in such a way that to give the best possible platform to the
employees to perform with 100% efficiency, which will lead to organizational
development, employee satisfaction and increased employee retention.
 Bhattacharjee and Sengupta (2011) emphasized in their study that employees are the
most crucial and valuable assets of an organization. If an organization wants to gain
competitive advantages, it is very important to bridge the gap between the actual
competence of human resources working in the organization and the desired
competence expected from them. It is with the help of a well-established performance
management system that the organization can bridge this gap between actual
performance and expected performance.
 Ashok Khurana&Kanika Goyal (2010) ‘Performance appraisal: A key to HR
assessment and Development’ explores the performance appraisal practices of
selected Indian industries. It provides an insight into the concept of performance
appraisal, the method and approaches of performance appraisal, the appraisal process

7
 etc. The study observed that at L&T the performance of human resources is appraised
at three levels. That is self-appraisal by an employee reviewing his past performance,
critical attributes appraisal by an immediate supervisor and performance and
development planning for future period by the superior along with the employee. The
study observed that performance appraisal is indispensable to be aware of each
employee’s abilities, competencies and relative merit and worth for the organization.
 Sanwong (2008) ‘The Development of a 360-Degree Performance Appraisal System:
A University Case Study’ examines the functioning of an innovative 360-degree
performance appraisal system among a sample of 75 employees at a Thai university.
The data for the system came from supervisors, colleagues, clients and junior staff as
well as from the employees themselves. The validity of the system was examined on
two occasions. While all employees were satisfied with the system, support and
clerical staff at the university were more satisfied than academic staff. A number of
suggestions were made for improving the 'working' of such a system in a university
environment.
 Performance Management includes the activities that objectives are achieved
consistently effectively and efficiently. Various studies have been done by researchers
on Performance Management. Memon (2007), determined that teacher quality is a key
to the success of the institution and to improve the quality of the teachers, there should
be some well-defined criteria of performance.
 Helm et al. (2007) says that PMS is an important tool to improving an organization’s
performance; it facilitates the organization to achieve its goals and objectives. It can
develop a performance oriented culture within the organization. It helps the individual
employee to have clarity about what exactly is expected from him, as there will be
proper performance planning of each employee. PMS can also identify talented
individuals for promotion and it also establishes linkage between pay and performance.
It means various important HR decisions can be accurately taken with the help of PMS.

8
 CHAPTER- 2
INDUSTRY AND COMPANY PROFILE

9
2.1 Industry Profile:
The jewellery industry is a diverse and dynamic sector that encompasses the design,
manufacture, marketing, and sale of various types of jewellery. It is broadly segmented
into fine jewellery and fashion jewellery. Fine jewellery is crafted from precious metals
like gold, silver, platinum, and often features gemstones such as diamonds, sapphires, and
rubies. In contrast, fashion jewellery is made from less expensive materials like base
metals, glass, and plastic, making it more affordable and accessible to a wider audience.
Geographically, the industry is dominated by major markets including the United States,
China, India, and Europe, with significant growth observed in emerging markets such as
Southeast Asia and the Middle East. Distribution channels for jewelry range from
traditional brick-and-mortar retail stores, including specialized jewelry stores and
department stores, to online sales through e-commerce platforms and brand-specific
websites. Direct sales through home parties and representatives also contribute to the
industry’s reach. The industry is enriched by numerous independent designers who bring
unique, often niche, offerings to the market. The jewelry industry is characterized by its
blend of tradition and innovation, catering to a wide range of consumer preferences and
market dynamics.

 Seasonal purchases
 Non-seasonal purchases
 Purchase for export sales

Major Players in Jewllery Industy

1. Tanishq Jewelers
2. GRT jewelers
3. Joy Alukkas
4. Malabar gold
5. Kalyan Jewelers
6. Jos Alukkas

10
1. Tansishq jewellers
Tanishq is one of India's leading jewelry brands, known for its high-quality products,
innovative designs, and strong brand presence. It is a division of Titan Company Limited,
which is a joint venture between the TATA Group and the Tamil Nadu Industrial
Development Corporation (TIDCO). Founded in 1994, Tanishq has grown to become one
of India's most trusted jewelry brands. The name Tanishq is derived from a combination
of "Tan" meaning body and "Nishk" meaning a gold ornament. Tanishq is a market leader
in India, renowned for its purity, quality, and trust. It operates over 300 stores across the
country, making it one of the largest jewelry retailers in India. The brand has successfully
created a loyal customer base through its focus on quality and transparency.

2. GRT Jeweller
GRT Jewellers, founded in 1964 by G. Rajendran, is a renowned and trusted name in the
Indian jewelry industry. Headquartered in Chennai, Tamil Nadu, GRT has established
itself as one of the leading jewelry retailers in South India, known for its wide range of
exquisite jewelry designs and exceptional customer service. The brand offers a diverse
selection of gold, diamond, platinum, and silver jewelry, catering to various tastes and
occasions, from traditional bridal collections to contemporary everyday wear. With a
strong emphasis on quality and craftsmanship, GRT Jewellers has built a loyal customer
base over the decades. The company operates multiple showrooms across India and has
expanded its reach internationally, providing an extensive array of certified jewelry. GRT
is also recognized for its innovative marketing strategies and customer-friendly schemes,
such as gold savings plans, which have further cemented its reputation as a trusted and
preferred jeweler.

11
3. Joy Alukkas:
Joyalukkas Jewellers, founded by Joy Alukkas in 1987, is a globally recognized jewelry
brand originating from Kerala, India. With a commitment to quality, craftsmanship, and
innovative designs, Joyalukkas has grown into one of the most prominent jewelry retailers
in the world, boasting over 160 showrooms across 11 countries, including India, the UAE,
the USA, and the UK. The brand offers a vast range of jewelry, from traditional gold and
diamond pieces to contemporary platinum and pearl collections, catering to diverse
customer preferences and occasions. Known for its stringent quality standards and
certified products, Joyalukkas has garnered a loyal customer base and numerous accolades,
including the Superbrand status. The company also emphasizes customer- centric services,
such as easy gold exchange programs and loyalty rewards.

4. Malabar Gold
Malabar Gold & Diamonds, established in 1993 in Kerala, India, is one of the largest
jewelry retail chains in the world. Part of the Malabar Group, the brand has rapidly
expanded its presence with over 280 showrooms across 10 countries, including India, the
UAE, the USA, and the UK. Renowned for its exquisite craftsmanship and a vast selection
of gold, diamond, platinum, and gemstone jewelry, Malabar Gold & Diamonds caters to a

12
wide range of customer tastes and preferences. The brand's collections encompass
traditional bridal jewelry, contemporary designs, and everyday wear, ensuring something
for every occasion. Malabar Gold & Diamonds is committed to quality and transparency,
offering certified jewelry and implementing stringent quality control measures. Their
innovative marketing strategies and customer-centric services, such as gold saving
schemes and lifetime maintenance programs, have helped build a strong, loyal customer
base.

5. Kalyan Jeweller
Kalyan Jewellers, founded in 1993 by T.S. Kalyanaraman in Thrissur, Kerala, is one of
India's largest and most prestigious jewelry retail chains. With a strong emphasis on trust
and transparency, Kalyan Jewellers has expanded to over 150 showrooms across India and
the Middle East, making it a prominent player in the global jewelry market. The brand
offers an extensive range of jewelry, including traditional gold and diamond pieces,
contemporary designs, and specialized bridal collections, catering to diverse customer
preferences and cultural nuances. Kalyan Jewellers is known for its rigorous quality
standards, certified products, and fair pricing policies, which have helped establish a loyal
customer base. The company employs innovative marketing strategies and high-profile
brand ambassadors to enhance its market presence.

13
6. Jos alukkas
Joyalukkas is a prominent jewellery retail chain that has rapidly expanded its presence
across India over the past few years. Today, the chain is well-established in the states of
Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh, and has also made its mark in the
cities of Mumbai, Puducherry, and Gurgaon (Haryana).

2.2 Company Profile:

Joyalukkas is a prominent jewellery retail chain that has rapidly expanded its presence
across India over the past few years. Today, the chain is well-established in the states of
Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh, and has also made its mark in the
cities of Mumbai, Puducherry, and Gurgaon (Haryana). With a dedicated and highly
trained workforce of over 2300 employees across its various locations in India, the
company's success is driven by its growing customer base. Joyalukkas has garnered
numerous awards for its exceptional business practices and skilled jewellery retailing.
Notably, it won the Retail Chain of the Year and Best Single Store (for the Joyalukkas
Chennai Showroom) at the National Jewellery Award 2011, organized by the All-India
Gems and Jewellery Trade Federation (GJF). Additionally, it has been recognized for
being the highest VAT-paying jewellery group at the Kerala Gem and Jewellery Show,
organized by the Department of Industries and Commerce, Government of Kerala.

Renowned among jewellery enthusiasts for its variety, quality, and value, Joyalukkas is a
consistently growing retail chain with plans to further expand its presence throughout India.
Currently operating 24 jewellery showrooms across the country, the company plans to
open an additional 13 new showrooms by September 2013, aiming to reach a total of 37
showrooms. Joyalukkas showrooms offer an extensive range of jewellery in gold,

14
diamonds, pearls, platinum, and other precious stones. Furthermore, the showrooms
feature in-house designs as well as those from international designers.
The company's dedication to excellence is reflected in the numerous awards it has received
for its outstanding business practices and expertise in jewellery retailing.
Known for its extensive selection, superior quality, and exceptional value, Joyalukkas is a
favorite among jewellery lovers. The company is one of the fastest-growing jewellery
retail chains in India, with strategic plans to continue expanding its presence nationwide.
In addition to its physical retail presence, Joyalukkas has also embraced e-commerce,
allowing customers to browse and purchase jewellery online, further enhancing the
shopping experience. The company’s robust online platform complements its brick-and-
mortar stores, providing convenience and accessibility to a wider audience. Joyalukkas
continues to innovate and adapt to market trends, ensuring it remains at the forefront of
the jewellery retail industry in India.

The Joyalukkas chain also includes 'Wedding Centers,' which offer a wide variety of
clothing and fashion accessories for weddings and everyday use for ladies, gents, and kids.
These 'Wedding Centers' aim to provide an integrated shopping experience, allowing
customers to purchase jewellery, clothing, and accessories for weddings and other
occasions, all from a single store. The Joyalukkas Wedding Centers are particularly
popular in Kerala, where they are prominently located. Furthermore, the Joyalukkas Group
firmly believes in the importance of community and societal contribution as core elements
of its success. This belief is reflected in the group's active involvement in corporate social
responsibility (CSR) activities across various those in need and supporting initiatives that
benefit society. These efforts range from building homes to providing financial aid to flood
victims, embodying the group's commitment to being present and helpful when
required the most.

15
Joyalukkas’s vision and mission reflect its commitment to excellence, customer
satisfaction, and continuous growth within the jewellery retail industry.
Vision:
The vision of Joyalukkas is to be a globally renowned jewellery brand, recognized for its
quality, innovation, and exceptional customer service. The company aspires to set
benchmarks in the jewellery industry, expanding its presence worldwide while
maintaining the trust and loyalty of its customers.
Mission:
The mission of Joyalukkas is to offer a diverse range of high-quality jewellery that meets
the evolving tastes and preferences of customers. The company is dedicated to ensuring
customer satisfaction through superior service, authenticity, and value. Additionally,
Joyalukkas aims to foster a culture of innovation and continuous improvement, leveraging
technology and industry best practices to enhance the shopping experience both online and
offline. The company also emphasizes its role in social responsibility, contributing to the
well-being of the communities in which it operates.
Values:
 QUALITY: Commitment to offering superior, certified jewelry that meets the highest
standards of craftsmanship and purity.
 INTEGRITY: Ensuring transparent pricing, ethical sourcing, and honest business
practices in all operations.
 CUSTOMER SATISFACTION: Prioritizing customer needs and providing
personalized, attentive service to create a rewarding shopping experience.
 INNOVATION: Continuously updating designs and incorporating contemporary
trends while respecting traditional aesthetics.
 SOCIAL RESPONSIBILITY: Engaging in community initiatives, supporting
sustainable practices, and contributing to societal well-being.
 TRUST: Building and maintaining trust with customers through consistent quality,
transparency, and ethical practices.

16
2.3 Materials and Procurement

Gold Jewellery Raw Materials

Gol

Standard Old Gold Copper Loose

Gold Stones

Oursourced for
Purification

Standard Gold

Finished Jewellery Through

Job work Arrangements

17
2.4 CONCEPTUAL FRAMEWORK

2.4.1 Difference between Performance management System

and Performance Appraisal:

Aspect Performance Management Performance Appraisal

System (PMS)

An ongoing process to manage

A periodic evaluation of an
Definition and improve employee
employee's job performance.
performance.

Broad, encompassing goal

Narrow, focusing primarily on
Scope setting, continuous feedback,
evaluating past performance.
development, and evaluation.

Continuous process with regular Typically conducted annually

Frequency
check-ins and feedback. or semi-annually.

Future-oriented, focusing on
Past-oriented, evaluating
growth, development, and
Focus achievements and performance
alignment with organizational
over a specific period.
goals.

Goal setting, continuous Performance rating, evaluation

Components feedback, performance reviews, against specific criteria,
development planning, rewards. feedback.

Integral part, with SMART May or may not include goal

Goal Setting goals linked to organizational setting; primarily focuses on
objectives. past goals.

18
 Ongoing, with frequent informal Periodic, typically during the
Feedback
and formal feedback sessions. appraisal meeting.

Emphasizes identifying and

May suggest development areas
Development addressing development needs
but not a primary focus.
and opportunities.

Continuous documentation of
Documentation primarily
Documentation performance, feedback, and
during the appraisal period.
development activities.

High, with active participation Moderate, primarily involved in

Employee
in setting goals, self-assessment, receiving feedback and
Involvement
and development planning. discussing performance.

Evaluator, assessing
Coach and mentor, providing
Manager's Role performance and providing
ongoing support and guidance.
feedback.

Improved performance, Performance rating or ranking,

Outcome employee development, and basis for rewards or corrective
alignment with strategic goals. actions.

Strong alignment with Limited alignment, more

Strategic
organizational strategy and focused on individual
Alignment
goals. performance.

Can motivate through

Aims to motivate and engage
Motivation and recognition but may also
employees through continuous
Engagement demotivate if perceived as
support and recognition.
unfair.

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2.4.2 Methods of Performance Appraisal:

A. Spontaneous and unrestricted appraisal method

B. Traditional Methods:

 Ranking method
 Human to human correlation Method
 Grading Method

 Enforced- dispersion Method

C. Modern Methods:

 Management by Objectives Method

 Multi-Source Assessment Method
 Corporal Appraisal

Spontaneous
and
unrestricted
appraisal
method
PERFORMANCE
APPRAISAL
TYPES

Traditional
Methods

Modern
Methods

20
A. Spontaneous and unrestricted appraisal method

The spontaneous and unrestricted appraisal method in a performance management system

is an approach where feedback and evaluations are provided informally and continuously,
rather than through structured and scheduled reviews. This method allows for immediate
recognition and correction of employee behaviors and performance, fostering a more agile
and responsive work environment. In this system, feedback is given as situations arise,
without waiting for predetermined review periods. Both managers and peers can provide
input, creating a more holistic view of an employee's performance. This approach
encourages open communication and can help to quickly address any issues or reinforce
positive behaviors. By being less formal and more flexible, the spontaneous and
unrestricted appraisal method can lead to higher employee engagement and development,
as it allows for real-time adjustments and personalized feedback. However, it requires a
culture of trust and openness to be effective, and there may be challenges in ensuring
consistency and fairness in evaluations.

B. Traditional Methods:
In the context of a performance management system, the traditional method refers to the
conventional approach of evaluating and managing employee performance. This typically
involves annual performance reviews where a manager assesses an employee's work over
the past year, often using a standardized evaluation form. The focus is usually on rating
employees against specific criteria, documenting strengths and weaknesses, and setting
goals for the upcoming year. Feedback is generally top-down, meaning it flows from
managers to employees, with limited opportunities for two-way dialogue. The traditional
method emphasizes formal, periodic assessments rather than continuous feedback and
development. It often relies on quantitative metrics and rankings, comparing employees
against each other. While this approach can provide structure and clear benchmarks, it may
also lead to a lack of engagement and motivation among employees, as it can be seen as
rigid and not responsive to individual needs or real-time changes in performance. In
contrast, modern performance management systems tend to focus on ongoing feedback,
coaching, and development, aiming to foster a more dynamic and supportive work
environment.

21
Ranking method:
A ranking method is a technique used to arrange items, individuals, or entities in a
particular order based on specific criteria or metrics. This method involves assigning a
position or rank to each item relative to others in the group. The purpose is to identify and
highlight the relative standing or performance of each item based on the chosen criteria.
For example, in a list of students' test scores, a ranking method could be used to determine
who scored the highest and who scored the lowest, effectively organizing the students
from best to worst performance. Ranking methods are commonly used in various fields
such as education, sports, business, and research to make comparisons and inform
decisions.

Paired analogy method:

The paired comparison method in a performance management system is a technique used
to evaluate and rank employees by directly comparing them against each other in pairs. In
this method, each employee is compared with every other employee, one pair at a time,
based on specific performance criteria. For each pair, the evaluator determines which of
the two employees is superior in terms of the criteria being assessed. This method involves
creating a matrix where employees' names are listed on both the vertical and horizontal
axes. Evaluators then go through each pair, marking which employee performs better. The
results are tallied to see how many times each employee was preferred over others, leading
to a ranked list of employees from most to least effective. The paired comparison method
helps in making more objective decisions by directly comparing employees' performance
attributes rather than assessing them in isolation. It can be particularly useful in situations
where differentiating between employees' performances is challenging. However, it can
be time-consuming and complex, especially in larger organizations with many employees.
Despite these challenges, it provides a clear and straightforward ranking system that can
inform decisions on promotions, rewards, and development needs.

22
Human to human correlation Method:

The human-to-human correlation method in a performance management system involves

evaluating employees by analyzing the relationships and interactions between them. This
method focuses on how well employees work together, their communication skills,
teamwork, and the overall impact of their interpersonal dynamics on productivity and
workplace harmony. In this approach, managers and evaluators assess not just individual
performance, but also how effectively employees collaborate with their colleagues. This
includes observing behaviors such as mutual support, conflict resolution, sharing of
knowledge and resources, and the ability to build strong professional relationships.
Feedback may be gathered from various sources, including peers, subordinates, and
supervisors, to provide a comprehensive view of an employee's interpersonal skills. The
human-to-human correlation method aims to foster a cooperative and cohesive work
environment by emphasizing the importance of positive interactions and teamwork. It
helps identify employees who contribute to a healthy workplace culture and those who
may need development in their interpersonal skills. This method is particularly valuable
in roles where collaboration and communication are critical to success. However, it
requires careful implementation to ensure that evaluations are fair and that personal biases
do not influence the assessment of interpersonal dynamics.

Grading Method:
In this approach, specific performance criteria are defined, and employees are assessed
against these criteria. Each grade represents a range of performance, with clear
descriptions for what constitutes each level. For example, an "A" grade might be awarded
to employees who consistently exceed expectations, demonstrate exceptional skills, and
contribute significantly to the organization, while a "C" grade might indicate satisfactory
performance that meets basic job requirements but lacks distinction. The grading method
provides a structured and straightforward way to categorize employee performance,
making it easier to identify top performers and those who may need additional support or
development. It helps standardize evaluations, making them more consistent and objective
across the organization. However, the method can sometimes oversimplify complex
performance issues and may not capture all aspects of an employee's contributions,
especially qualitative factors like creativity or teamwork.

23
It is essential to ensure that the criteria for each grade are well-defined and communicated
to avoid misunderstandings and to maintain fairness in the evaluation process.

Enforced- dispersion Method:

The enforced-dispersion method in a performance management system, also known as
forced ranking or stack ranking, is an approach where employees are distributed across a
fixed performance distribution. This method mandates that a certain percentage of
employees be placed into predefined performance categories, such as top, middle, and
bottom performers.

For example, a company might require managers to rank employees so that 20% are
categorized as high performers, 70% as average performers, and 10% as low performers.
This distribution is enforced regardless of the overall competency level of the team,
ensuring that not all employees can be rated as high performers or low performers.

The enforced-dispersion method aims to identify the highest and lowest performers within
an organization, facilitating decisions regarding promotions, rewards, and terminations. It
can encourage a competitive environment, motivate high performers, and drive out under-
performance. However, this method can also have drawbacks, such as fostering unhealthy
competition, reducing collaboration, and potentially demoralizing employees who are
placed in lower categories despite satisfactory performance. It is crucial for organizations
using this method to clearly communicate the criteria and processes involved to maintain
transparency and fairness.

C. Modern Methods:
Management by Objectives Method:

The Management by Objectives (MBO) method in a performance management system is

a strategic approach where managers and employees collaboratively set specific,
measurable goals that align with the organization's objectives. This method focuses on
defining clear, achievable targets for employees and periodically reviewing their progress
toward these goals. The MBO process typically involves several steps:

24
 Goal Setting
 Action Plans
 Monitoring and Feedback
 Evaluation
 Rewards and Development

The MBO method fosters a sense of ownership and accountability, as employees are
actively involved in setting their own goals. It aligns individual performance with the
organization's strategic aims, enhancing overall productivity and effectiveness. However,
it requires effective communication, regular follow-up, and a commitment to continuous
improvement to be successful.

Multi-Source Assessment Method:

The Multi-Source Assessment method, also known as 360-degree feedback, in a
performance management system is an approach where an employee's performance is
evaluated using feedback from multiple sources. These sources can include supervisors,
peers, subordinates, and sometimes even customers. This comprehensive feedback aims
to provide a well-rounded view of an employee's performance, strengths, and areas for
improvement. Here’s how the Multi-Source Assessment method typically works:

 Feedback Collection
 Evaluation Criteria
 Anonymity and Confidentiality
 Feedback Aggregation
 Review and Action Plan

The Multi-Source Assessment method provides a holistic view of an employee's

performance, highlighting different perspectives and reducing potential biases from a
single evaluator. It promotes personal and professional growth by offering diverse insights
and fostering self-awareness. However, the process can be time-consuming and requires a
culture of trust and openness to be effective. It is also essential to manage the feedback
constructively to ensure it is used for development rather than as a tool for criticism.

25
Corporal Appraisal:

The Corporal Appraisal method in a performance management system is a less common

and somewhat traditional approach where employee evaluations are conducted through
direct, face-to-face interactions between the employee and their manager. This method
emphasizes personal, one-on-one meetings where performance, goals, and development
opportunities are discussed in depth. Here’s how the Corporal Appraisal method typically
works:

 Direct Interaction
 Performance Review
 Goal Setting
 Development Planning
 Documentation

The Corporal Appraisal method allows for detailed, personalized feedback and facilitates
open communication between employees and managers. It helps build a stronger manager-
employee relationship and ensures that performance issues are addressed promptly. It can
be time-consuming, especially in larger organizations, and may require managers to
develop strong interpersonal and evaluative skills to be effective. This method also relies
heavily on the quality of the manager's observations and judgments, which can introduce
subjectivity.

26
2.4.3 Process of Performance Management System:
The concept of the performance management cycle first originates in Peter Drucker’s 1954
book called ‘Management by Objects.’ His book explained how management must break
organizational goals into smaller individual and team goals that are also definite. The most
commonly cited performance management cycle is by Michael Armstrong in his book
‘Handbook of Performance Management.’ In it, he described the four stages of a
performance appraisal cycle. They are plan, act, track, and review. Over the years, it has
been refined to tailor to the demand for the present needs of the organization.
The performance management cycle definition encompasses the following four stages:

 Planning
 Monitoring
 Developing and Reviewing
 Rating and Rewards

The specifics of these stages are covered in the section below:

27
1. Planning & Goal setting

Planning refers to the initial phase where goals, expectations, and strategies for employee
performance are established. This foundational step is crucial for setting a clear direction
and providing employees with a road map for their roles and responsibilities. During the
planning phase, managers and employees collaboratively set specific, measurable,
achievable, relevant, and time-bound (SMART) objectives that align with the
organization's overall goals. This involves defining key performance indicators (KPIs) and
milestones that will be used to measure progress and success. Planning also includes
identifying the resources, support, and training that employees will need to achieve their
objectives. The planning process ensures that both employees and managers are prepared
to navigate the performance journey effectively. The planning process fosters clear
communication and mutual understanding between employees and managers regarding
expectations, priorities, and responsibilities. It sets the stage for ongoing monitoring,
reviewing, and adjusting performance strategies as needed. Effective planning ensures that
employees are aligned with the organization's vision and are motivated to contribute to its
success, providing a structured framework within which they can operate efficiently and
confidently. Planning in a performance management system is a critical step that lays the
groundwork for continuous performance improvement and organizational growth.

While planning employees’ goals, managers can apply the SMART framework for
efficient goal-setting.

 Align Individual and Team Goals: Engagingly fosters goal alignment by cascading
organizational objectives down to individual levels. Employees understand how their
contributions directly impact the bigger picture, boosting motivation and engagement.
 Set SMART Goals: The platform guides employees in setting Specific, Measurable,
Achievable, Relevant, and Time-bound (SMART) goals, ensuring clarity, focus, and
a road-map for success.
 Continuous Goal Tracking: Progress bars and real-time updates keep employees
informed about their performance against set goals, allowing for course correction and
adjustments as needed.

28
2. Monitoring & Feedback

Monitoring refers to the continuous observation and tracking of an employee's

performance, progress, and behaviors in real-time. This process is essential for ensuring
that employees stay on track with their performance goals and meet the organization's
standards and expectations. Monitoring involves regularly checking in on employees'
work to identify any deviations from set objectives and providing timely feedback and
support to address issues as they arise. This can be done through various methods,
including direct supervision, performance metrics, and regular one-on-one meetings.
Monitoring helps to promptly identify and address performance issues before they become
significant problems, ensuring that employees receive the necessary guidance and
resources to improve. Monitoring facilitates open communication between employees and
managers, creating an environment where employees feel supported and engaged. This
ongoing process is crucial for maintaining accountability, transparency, and alignment
within the organization. Overall, monitoring in a performance management system is a
proactive and dynamic process that ensures employees are continuously moving towards
their goals and contributing effectively to the organization's success.

 360-Degree Feedback: Engaged feedback tools go beyond traditional manager-to-

employee evaluations. Peers, clients, and even self-assessments provide a holistic
view of strengths and areas for improvement.
 Continuous Performance Conversations: The platform encourages ongoing dialogue
between managers and employees, fostering a culture of open communication and
regular feedback that drives development.
 Pulse Surveys: Quick, targeted surveys gauge employee sentiment and identify
potential roadblocks or areas for improvement in real-time, enabling proactive
intervention.

3. Reviewing

Reviewing refers to the ongoing process of assessing and discussing an employee's

performance, progress, and development within an organization. This process is crucial
for ensuring that employees' activities and outcomes align with the organization's goals
and standards. Reviewing typically involves several key components, including
performance appraisals, which are formal assessments conducted periodically to evaluate

29
an employee's job performance against predefined criteria. Reviewing in performance
management is essential for several reasons. It ensures that employees' work aligns with
the organization's strategic objectives and goals, holds employees accountable for their
performance and contributions, and motivates them by recognizing their achievements and
providing a clear path for growth and development. It also facilitates open communication
between employees and managers, fostering a transparent and supportive work
environment, and informs decisions related to promotions, compensation, training, and
other HR-related activities. reviewing in a performance management system is a dynamic
and continuous process that plays a critical role in achieving organizational success and
employee satisfaction.

 Performance Appraisals: Conduct formal performance reviews at regular intervals

(typically annually or semi-annually). Use a standardized appraisal form to ensure
consistency and fairness.
 360-Degree Feedback: Incorporate feedback from multiple sources, including peers,
subordinates, and customers, to provide a comprehensive view of performance.
 Personalized Learning Paths: Based on individual goals and skill gaps, Engagedly
recommends relevant learning resources, training programs, and coaching
opportunities, empowering employees to take ownership of their development.
 Mentorship Programs: Connect experienced employees with mentors to facilitate
knowledge sharing, guidance, and support, accelerating growth and fostering a culture
of collaboration.
 Performance Support Tools: Engagedly provides access to job aids, knowledge bases,
and other resources that equip employees with the tools and information they need to
perform their best.

4. Rating and Rewards

Rating refers to the process of evaluating and assigning a quantitative or qualitative score
to an employee's performance based on predefined criteria. This step typically follows the
monitoring and reviewing phases and serves to formally assess how well an employee has
met their performance goals and expectations. Ratings are often determined through
performance appraisals, which may involve self-assessments, peer reviews, and
evaluations by managers. The criteria for rating can include various aspects of job

30
performance, such as the quality and quantity of work, adherence to deadlines, teamwork,
problem-solving abilities, and overall contribution to the organization. The rating process
is crucial for several reasons. It provides a standardized method to objectively measure
and compare employee performance, ensuring fairness and consistency across the
organization. Ratings help identify high performers who may be eligible for rewards,
promotions, or additional responsibilities, as well as those who may need further
development or support. This process also facilitates transparent communication between
employees and managers, offering clear feedback on strengths and areas for improvement.
Rating in a performance management system is a vital component that encapsulates an
employee's performance into a measurable format, enabling data-driven decisions and
fostering a motivated and productive workforce.

 Fair and Transparent Performance Reviews: Performance data gathered throughout

the cycle informs objective and transparent reviews, eliminating biases and fostering
trust.
 Rewards & Recognition: Enragedly offers a variety of recognition tools, from badges
and shout-outs to modified incentives, to celebrate achievements and reinforce desired
behaviors.
 Compensation Alignment: Performance data can be seamlessly integrated with
compensation decisions, ensuring fair and motivating reward systems.

31
 CHAPTER-3
RESEARCH METHODOLOGY

32
3.1 Research Methodology:

The procedure using, which researchers go about their work of describing, explanation
and predicting phenomenon, is called Methodology. The methodology used in the study
on the impact of performance management systems on employee performance involved a
quantitative approach. The research utilized primary data through a case-study research
approach, focusing on the Josalukkas. A survey strategy was employed to collect data from
respondents using questionnaires. The research methodology included a well-structured
and self-administered questionnaire to gather data from a sample population of 107
employees working in the JOS ALUKKAS. The study aimed to provide insights into how
performance management systems affect employee performance and identify challenges
faced by employees.

3.2 Sampling Method:

SAMPLE DESIGN
Sample elements: Josalukkas employees
Sample size : 107
Sample media or tool: Questionnaire

SOURCE OF DATA
To accomplish the objectives of study, both primary and secondary data.
Primary Data
This is one type of data collected by the researchers directly from the respondents based
upon the study. The dependent information of a respondents can be gathered together to
attain a conclusion and also helpful for the future references. It also sends the first hand
data collected by the researcher for the immediate purpose of the study.
It is collected by interactions with employees, surveys, meeting in person because it
ensures accuracy and encourages openness when answering questions.
Secondary Data
This type of data already exists in records. They cannot be gathered to use for immediate
purpose. It is collected from company websites, research articles. As this data is not so
reliable for the research, so more focus is done on primary data.

33
3.3 Problem Statement
Performance management systems (PMS) are essential tools for organizations to align
employee performance with strategic objectives, foster employee development, and
improve overall business outcomes. Josalukkas, a prominent jewelry retailer, operates in
a highly competitive and customer - centric industry where employee performance directly
impacts customer satisfaction and business success. Despite the recognized importance of
an effective performance management system, Josalukkas faces challenges in
implementing a PMS that consistently enhances employee performance, drives
engagement, and aligns with organizational goals. This study seeks to address the
effectiveness of the current performance management system at Josalukkas. Specifically,
the study aims to provide a comprehensive analysis of the performance management
system at Jos Alukkas. The insights and recommendations derived from this study will
help Josalukkas enhance its PMS, leading to improved employee performance, higher
engagement levels, and better alignment with the company's strategic objectives.

3.4 Scope

It includes an evaluation of the existing PMS structure, tools, and technologies used, and
how well the system aligns with the strategic objectives of Jos Alukkas.The study aims to
develop actionable recommendations for enhancing the PMS, aligning it better with
company goals, and improving employee performance and satisfaction. An
implementation plan for the recommended improvements and a framework for assessing
their impact on organizational success will also be proposed.

3.5 Objectives:

 To understand the Indian retailing industry.

 To study the Performance Management System at Josalukkas Madanapalle.
 To understand the opinions of respondents about the Performance Management
Systems implemented in the company.
 To offer suggestions for better implementation of the Performance Management
System in the company.

34
3.6 Limitations:
 A study conducted over a short period may not capture long-term trends and
effects.The time required to effectively implement and assess the PMS may exceed
the study period.
 Challenges in integrating the PMS with other organizational systems can affect
performance data accuracy. If the system is not user-friendly, it can lead to poor
adoption and inaccurate data entry.
 Different employees may perceive and react to the PMS in various ways, affecting its
overall effectiveness.The system's impact on motivation may vary, with some
employees feeling more motivated and others less so.
 Changes in the economic environment can influence performance independently of
the PMS.Missing or incomplete data can lead to inaccurate conclusions.
 Results may be specific to the organizational culture, industry, or region, making it
difficult to generalize to other settings.
 Evaluations can be subjective, influenced by the personal biases of managers or
supervisors.
 Use mixed-methods approaches to balance quantitative and qualitative data.
 Ensure a representative sample through random sampling and adequate sample size.
 Take into account the specific context of the organization being studied.
 Implement strategies to reduce bias, such as anonymous surveys and standardized
evaluation criteria.

35
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

36
4.1 GENDER:

Particulars No. of respondents Percentage of respondents

Male 58 54.2
Female 49 45.8
Total 107 100

Table 4.1

Gender

46% 54%

Male

Female

Chart 4.1

Interpretation:

From the above table it is observed that 54.2% of the respondents are male and 45.8%
of the respondents are female.

37
4.2 AGE

Particulars No. of respondents Percentage of respondents

18-24 20 18.7

25-35 52 48.6

36-45 28 26.2

46-55 6 5.6

55 or older 1 0.9

Total 107 100.0

Table: 4.2

Age 1% 19%
6%

26%

48%

18-24 25-35 36-45 46-55 55 or older

Chart : 4.2

Interpretation:
From the above table it is observed that the age between 25-35 has responded in large
number i.e.48.6%. The age between 36-45 has responded with 26.2%. The age between
18-24 has responded with 18.7%. The age between 46-55 has responded with 5.6%.

38
4.3 HOW LONG HAVE YOU BEEN WITH CURRENT EMPLOYER

Particulars No. of respondents Percentage of respondents

6 months-1 year 22 20.6

1-2 yrs 28 26.2

2-5 yrs 34 31.8

5-10 yrs 18 16.8

More than 10 years 5 4.7

Total 107 100.0

Table 4.3

How long have you been with current employer

5, 5%
22, 20%

18, 17%

34, 32% 28, 26%

6 months-1year 1-2 yrs 2-5 yrs 5-10 yrs More than 10 yrs

Chart : 4.3
Interpretation:
From the above table it is observed that many of the employees currently working with
the company for 2-5 years 31.8%. 20.6% of employees are currently working from 6
months- 1 year. 26.2% of employees are currently working for 1-2 years. 16.8% of
employees work for 5-10 years. Only 4.7% of employees work for more than 10 years.

39
4.4 WHAT IS YOUR CURRENT EMPLOYMENT STATUS

particulars No. Of respondents Percentage of respondents

full time employed 84 78.5

part time employed 15 14.0

Student 7 6.5

Retired 1 .9

Total 107 100.0

Table: 4.4

What is your current employment status

7, 7%
1, 1%
15, 14%

84, 78%

full time employed part time employed Student Retired

Chart : 4.4

Interpretation:
From the above table it is observed that 78.5% are full time employees. 14% are part-time
employees. 6.5% are students. And 1 is retired regarding the employee status in the
organization.

40
4.5 HOW EFFECTIVE DOES THE PERFORMANCE MANAGEMENT SYSTEM PROVIDE
CLEAR AND MEASURABLE PERFORMANCE EXPECTATIONS TO EMPLOYEES?

Particulars No. Of respondents Percentage of respondents

Highly effective 15 14.0

Moderately effective 39 36.4

Somewhat ineffective 33 30.8

Highly ineffective 20 18.7

Total 107 100.0

Table: 4.5

How effective does the performance management

system provide clear and measurable performance
expectations to employees? 15, 14%
20, 19%

39, 36%
33, 31%

Highly effective Moderately effective Somewhat ineffective Highly ineffective

Chart :4.5
Interpretation:
From the above table, it has been observed that most of the employees regarding the
effectiveness of performance management system provide clear and measurable
performance, 36.4% of respondents have mentioned that there is a moderately effective.
14% of employees have responded with high effectiveness. 30.8% of respondents have
responded with somewhat ineffectiveness.

41
4.6 HOW SATISFIED ARE YOU WITH THE FAIRNESS AND OBJECTIVITY OF THE
PERFORMANCE EVALUATION PROCESS WITHIN THE PERFORMANCE
MANAGEMENT SYSTEM?

Particulars No. Of respondents Percentage of respondents

Highly satisfied 24 22.4

Satisfied 37 34.6

Neutral 26 24.3

Dissatisfied 19 17.8

Highly dissatisfied 1 .9

Total 107 100.0

Table: 4.6

How satisfied are you with the fairness and objectivity of

the performance evaluation process within the
performance
1, 1% management system?
19, 18% 24, 22%

26, 24%

37, 35%

Highly satisfied) Satisfied) Neutral) Dissatisfied) Highly dissatisfied)

Chart: 4.6
Interpretation:
From the above table it is observed that 34.6% of employees are satisfied with the fairness
& objectives of the performance evaluation process within the performance management
system. 22.4% of employees are highly satisfied. 24.3% of employees are responded with
neutral. 17.8% of respondents are dissatisfied with the fairness of performance
management system.

42
4.7 TO WHAT EXTENT DOES THE PERFORMANCE MANAGEMENT SYSTEM
FACILITATE REGULAR FEEDBACK AND COACHING SESSIONS TO HELP
EMPLOYEES IMPROVE THEIR PERFORMANCE?

Particulars No. Of respondents Percentage of respondents

Fully facilitates 20 18.7

Partially facilitates 36 33.6
Neutral 33 30.8
Minimal facilitates 16 15.0
Does not facilitate 2 1.9
Total 107 100.0
Table: 4.7

To what extent does the performance management system

facilitate regular feedback and coaching sessions to help
employees improve their performance?
2, 2% 20, 19%
16, 15%

33, 31%

36, 33%

Fully facilitates Partially facilitates Neutral Minimal facilitates Does not facilitate

Chart : 4.7

Interpretation:

From the above table it is observed that 33.6% of employees have responded by partially
facilitating the performance management system by giving regular feedback and coaching
sessions to help employees to improve their performance. 18.7% of employees are
responded with fully facilitates. 30.8% of employees responded with neutral. 15% of
employees are responding with minimal facilities.

43
4.8 WHO WILL EVALUATE THE PERFORMANCE OF EMPLOYEES IN THE
ORGANIZATION?

Particulars No. Of respondents Percentage of respondents

Head of management 4 3.7

Top level management 4 3.7

Supervisor 5 4.7
HR manager 92 86.0
None of these 2 1.9
Total 107 100.0

Table : 4.8

Who will evaluate the performance of employees in

the organization?
4, 4%
4, 4%
2, 2%

5, 4%

92, 86%

Head of management Top level management Supervisor HR manager None of these

Chart : 4.8

Interpretation:

From the above table, it is observed that 86% of employees have responded that the
evaluation of an employee’s performance in organization is done by HR manager. 4.7%
of employees have responded with their supervisor. 3.7% of employees have responded to
head of management and top-level management.

44
4.9 PERFORMANCE EVALUATION IS DONE FOR EVERY……………….

Particulars No. Of respondents Percentage of respondents

1 month 3 2.8
3 months 6 5.6
6 months 7 6.5
12 months 89 83.2
rarely 2 1.9
Total 107 100.0

Table :4.9

performance evaluation is done for every……

3, 3%
6, 6%
2, 2%

7, 6%

89, 83%

1 month 3 months 6 months 12 months rarely

Chart : 4.9

Interpretation:

From the above table, it is observed that 83.2% of employees have responded that the
performance evaluation is done every 12 months in the organization. 6.5% of employees
responded that the performance evaluation is done every 6 months in the organization. 5.6%
of employees responded within 3 months. 2.8% of employees responded with 1 month and
1.9% of respondents have mentioned rarely.

45
4.10 THE IMMEDIATE COURSE OF ACTION IN CASE THE PERFORMANCE
APPRAISAL OF AN EMPLOYEE IS NOT UP –TO- THE –MARK

Particulars No. Of respondents Percentage of respondents

Give training 16 15.0

Counselling 57 53.3
Motivating 22 20.6
Decrease in salary 10 9.3
None of these 2 1.9
Total 107 100.0

Table: 4.10
The immediate course of action in case the performance
appraisal of an employee is not up –to- the –mark
10, 9% 2, 2%
16, 15%

22, 21%

57, 53%

Give training) Counselling) Motivating) Decrease in salary) None of these)

Chart : 4.10

Interpretation:

From the above table it is observed that 53.3% of employees have responded with
counselling for an immediate course of action in case the performance appraisal of an
employee is not up to the mark, 20.6% of employees have responded with motivating, 15%
of employees have responded by giving training.

46
4.11 HOW WELL DOES THE PERFORMANCE MANAGEMENT SYSTEM RECOGNIZE
AND REWARD HIGH-PERFORMING EMPLOYEES FOR THEIR CONTRIBUTIONS?

Particulars No. Of respondents Percentage of respondents

Highly effective 19 17.8

Moderately effective 38 35.5

Neutral 28 26.2
Somewhat ineffective 14 13.1
Highly ineffective 8 7.5
Total 107 100.0

Table: 4.11
How well does the performance management system
recognize and reward high-performing employees for
8, 7% their contributions?
19, 18%
14, 13%

28, 26% 38, 36%

Highly effective Moderately effective Neutral Somewhat ineffective Highly ineffective

Chart : 4.11

Interpretation:

From the above table it is observed that 35.5% of employees have responded with
moderately effective in the performance management system in recognition and reward
high performing employees for their contribution. 17.8% of employees responded with
highly effective, 26.2% of employees responded with neutral, 13.1% of employees have
responded with somewhat ineffective in their contribution.

47
4.12 HOW WOULD YOU RATE THE IMPACT OF THE PERFORMANCE
MANAGEMENT SYSTEM ON YOUR PERFORMANCE AND PRODUCTIVITY?

Particulars No. Of respondents Percentage of respondents

2 16 15.0

3 38 35.5

4 43 40.2

5 10 9.3

Total 107 100.0

Table: 4.12

How would you rate the impact of the performance

management system on your performance and
productivity?
10, 9% 16, 15%

43, 40%

38, 36%

2 3 4 5

Chart: 4.12

Interpretation:

From the above table it is observed that the rate of many employees is 4 i.e. 40.2%, 36%
of respondents have mentioned the rate of 3, 9% of respondents have mentioned the rate
of 5, 15% of respondents mentioned the rate of 2 regarding the performance management
system in performance and productivity.

48
4.13 HOW SATISFIED ARE YOU WITH THE LEVEL OF TRANSPARENCY AND
COMMUNICATION REGARDING PERFORMANCE CRITERIA AND EVALUATION
METHODS WITHIN THE PERFORMANCE MANAGEMENT SYSTEM?

Particulars No. of respondents Percentage of respondents

Very satisfied 14 13.1

Satisfied 30 28.0

Neutral 36 33.6

Dissatisfied 25 23.4

Very dissatisfied 2 1.9

Total 107 100.0

Table: 4.13

How satisfied are you with the level of transparency and

communication regarding performance criteria and
evaluation methods within the performance
management
2, 2% system?
14, 13%
25, 23%

30, 28%

36, 34%

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Chart: 4.13
Interpretation:

From the above table, it is observed that 28% of employees are satisfied with the level of
transparency and communication regarding performance criteria and evaluation methods.
13.1% of respondents were highly satisfied. 33.6% of employees are responded with
neutral. 23.4% of employees responded with dissatisfaction regarding transparency and
communication.

49
4.14 PERFORMANCE MANAGEMENT REPORTS/FEEDBACK WILL BE
COMMUNICATED THROUGH

Particulars No. Of respondents Percentage of respondents

Email 23 21.5
Face to face 50 46.7
Meeting 30 28.0
Circular 3 2.8
None of these 1 .9
Total 107 100.0
Table :4.14

Performance Management reports/feedback will be

3, communicated
3% through
1, 1%

23, 21%
30, 28%

50, 47%

Email) Face to face) Meeting) Circular) None of these)

Chart : 4.14
Interpretation:

From the above table it is observed that 46.7% of employees have responded that the
performance management feedback will be communicated face to face. 28% of employees
responded with a meeting, 21.5% of employees have responded with an email. 3% of
respondents mentioned meeting. 1% of respondents mentioned none of these regarding the
performance management feedback is communicated in the organization.

50
4.15 HOW EFFECTIVE DOES THE PERFORMANCE MANAGEMENT SYSTEM
IDENTIFY AND ADDRESS BARRIERS OR CHALLENGES THAT HINDER EMPLOYEE
PERFORMANCE?

Particulars No. Of respondents Percentage of respondents

Highly effective 16 15.0

Moderately effective 42 39.3

Neutral 25 23.4
Somewhat ineffective 22 20.6
Highly ineffective 2 1.9
Total 107 100.0
Table: 4.15

How effective does the performance management

system identify and address barriers or challenges that
hinder employee performance?
2, 2%
22, 21% 16, 15%

25, 23%

42, 39%

Highly effective Moderately effective Neutral Somewhat ineffective Highly ineffective

Chart: 4.15
Interpretation:

From the above table it is observed that 39.3% of employees have responded moderately
effective in identifying and addressing the barriers or challenges that hinder employee
performance. 15% of employees have responded with highly effective, 23.4% of
employees responded with neutral, and 20.6% of employees have responded with
somewhat ineffective in identifying barriers that hinder employee performance.

51
4.16 HOW SATISFIED ARE YOU WITH THE LEVEL OF SUPPORT AND RESOURCES
PROVIDED BY THE ORGANIZATION TO HELP EMPLOYEES MEET THEIR
PERFORMANCE GOALS AND OBJECTIVES?

Particulars No. Of respondents Percentage of respondents

Very satisfied 14 13.1

Satisfied 37 34.6
Neutral 27 25.2
Dissatisfied 25 23.4
Very dissatisfied 4 3.7
Total 107 100.0
Table: 4.16

How satisfied are you with the level of support and

resources provided by the organization to help
employees meet4,their
4%
performance goals and objectives?
14, 13%
25, 23%

37, 35%
27, 25%

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Chart: 4.16

Interpretation:

From the above table it is observed that 37(34.6%) of employees are satisfied with the
level of support and resources provided by the organization to help employees meet their
performance goals and objectives. 14(13.1%) of employees responded with very satisfied,
27(25.1%) of employees have responded with neutral, and 25(23.4%) of employees have
responded with dissatisfaction with the level of support provided by the organization.

52
4.17 OVERALL, HOW WOULD YOU RATE THE PERCEIVED IMPACT OF THE
PERFORMANCE MANAGEMENT SYSTEM ON FOSTERING A POSITIVE WORK
ENVIRONMENT AND EMPLOYEE SATISFACTION?

particulars No. Of respondents Percentage of respondents

1 1 .9

2 12 11.2

3 42 39.3

4 43 40.2

5 9 8.4

Total 107 100.0

Table 3.17

Overall, how would you rate the perceived impact of the

performance management system on fostering a positive
work environment and employee
1, 1% satisfaction?
12, 11%
9, 9%

43, 40%

42, 39%

1 2 3 4 5

Chart: 4.17
Interpretation:

From the above table it is observed that 40.2% of employees have responded with a rating
level of 4 in the impact of the performance system on fostering a positive working
environment and employee satisfaction. 8.4% of employees responded with the level of 5,
39.3% of employees responded with the level of 3, and 11.2% of employees have
responded with the level of 2 in employee satisfaction.

53
4.18 ACCORDING TO THE OPINION OF THE EMPLOYEEMANAGEMENT IN JOS
ALUKKAS IS?S THE PERFORMANCE

Particular No. Of respondents Percentage of respondents

Excellent 33 30.8

Very good 35 32.7

Good 30 28.0

Average 8 7.5

Poor 1 .9

Total 107 100.0

Table: 4.18

According to the opinion of the employees the

Performance Management in Jos Alukkas is?
1, 1%
8, 7%
33, 31%

30, 28%

35, 33%
Excellent Very good Good Average Poor

Chart: 4.18

Interpretation:

From the above table, it is observed that the opinion of employee’s performance
management in Josalukkas is very good for 32.7% respondents, excellent for 30.8%
respondents, good for 28% of respondents, average of 7.5% of respondents, and poor for
0.9% of respondents in the opinions of employees.

54
4.19 HOW EFFECTIVELY DOES THE PERFORMANCE MANAGEMENT SYSTEM
IDENTIFY EMPLOYEES’ DEVELOPMENT NEEDS AND PROVIDE OPPORTUNITIES
FOR GROWTH?

Particulars No. Of respondents Percentage of respondents

Highly effective 14 13.1

Moderately effective 40 37.4

Neutral 29 27.1

Somewhat ineffective 18 16.8

Highly ineffective 6 5.6

Total 107 100.0

Table : 4.19
How effectively does the performance management
system identify employees’ development needs and
provide opportunities for growth?
14, 13%
18, 17%
6, 6%

29, 27%

40, 37%

- Highly effective - Highly ineffective - Moderately effective

- Neutral - Somewhat ineffective

chart : 4.19
Interpretation:

From the above table, it is observed that the organization of performance management
system identifies the employees' development needs and provides opportunities for growth
in an effective way where many of the respondents mentioned moderately effective
i.e.37.4%. 13.1% of employees responded with a highly effective, 27.1% of employees
responded with neutral, 16.8% of employees have responded with somewhat ineffective,
5.6% of employees have responded with highly ineffective in identifying the employees'
development needs and providing opportunities for growth.

55
4.20 HOW SATISFIED ARE YOU WITH THE FREQUENCY AND QUALITY OF
COMMUNICATION BETWEEN MANAGERS AND EMPLOYEES REGARDING
PERFORMANCE MANAGEMENT?

Particulars No. Of respondents Percentage of

respondents

Very satisfied 19 17.8

Satisfied 34 31.8

Neutral 27 25.2

Dissatisfied 23 21.5

Very dissatisfied 4 3.7

Total 107 100.0

Table : 4.20

How satisfied are you with the frequency and quality of

communication between managers and employees
regarding performance management?
4, 4% 19, 18%
23, 21%

27, 25%
34, 32%

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Chart:4.20
Interpretation

From the above table, it is observed that the frequency and quality of communication
between managers and employees regarding performance management is very nice as
many of the employees i.e. 31.8% are satisfied. 17.8% of employees have responded with
highly satisfied, 25.2% of employees responded with neutral, 21.5% of employees has
responded with dissatisfaction, 3.7% of employees have responded with dissatisfaction
regarding the quality of communication between managers and employees.

56
4.21 THE PERFORMANCE MANAGEMENT SYSTEM MOTIVATES EMPLOYEES TO
PERFORM AT THEIR BEST AND STRIVE FOR EXCELLENCE

Particulars No. Of respondents Percentage of respondents

Highly motivating 20 18.7
Moderately motivating 30 28.0
Slightly motivating 36 33.6
Not motivating 18 16.8
Not at all 3 2.8
Total 107 100.0

Table: 4.21

How well does the performance management system

motivate employees to perform at their best and strive
for excellence?
3, 3%
18, 17% 20, 19%

36, 33%
30, 28%

- Highly motivating - Moderately motivating - Slightly motivating - Not motivating Not at all

Chart: 4.21

Interpretation:

From the above table, it is observed that the performance management system motivates
employees to perform at their best and strive for excellence is motivating to many of the
respondents i .e. 28%, 18.7% have mentioned that they are moderately motivating and
highly motivating respectively. 33.6% of employees have responded with sightly
motivating, 16.8% of employees have responded with no motivation regarding the
performance management system.

57
4.22 TRANSPARENT PERFORMANCE MANAGEMENT SYSTEM FOSTERS A SENSE OF
FAIRNESS AMONG EMPLOYEES?

Particulars No. Of respondents Percentage of respondents

Strongly Agree 19 17.8

Agree 28 26.2
Neutral 32 29.9
Disagree 26 24.3
Strongly disagree 2 1.8
Total 107 100.0
Table: 4.22

Transparent performance management system fosters

a sense of fairness among employees?
2, 2%
19, 18%
26, 24%

28, 26%
32, 30%

Strongly Agree Agree Neutral Disagree Strongly disagree

Chart : 4.22

Interpretation:

From the above table, it is observed that the transparency in performance management
system fosters a sense of fairness among employees has many of the respondents i.e.
26.2%, 17.8% agree and strongly agree respectively. 29.9% of employees responded with
neutral, 24.3% of employees responded with disagreement, and 1.8% of employees have
responded by strongly disagreeing regarding the transparency fostered in the performance
management system.

58
 CHAPTER- 5

FINDINGS AND SUGGESTIOS

59
5.1 Findings:

 It is observed that there is a price worth 10,000 if the performance of employees is

excellent and also mentioned in the board of josalukkas.
 It is found that the majority of respondents are male, with 54% of employees.
 The majority of employees are in the age group of 25-35 years, i.e 48.6%.
 It is found that the majority of employees i.e in Josalukkas currently work for 2-5
years
 The majority of employees i.e.78.5% are full-time employed in Josalukkas.
 The performance management system is effective in providing clear and measurable
performance expectations to employees.
 Fairness and objectivity of the performance evaluation process is satisfied by the
majority of employees in Josalukkas.
 Josalukkas provide regular feedback and coaching sessions to help and improve
employees' performance, as 50% of employees are satisfied with giving feedback by
company.
 The performance evaluation of the Josalukkas is done by the HR manager, as 86% of
employees mentioned and performance evaluation is done every 12 months.
 The immediate course of action is to provide counseling, motivating, give training to
the employees in case of not-up-to-the mark in their performance.
 Josalukkas recognizes the employee's performance and provides rewards for their
contribution.
 The majority of employees are satisfied with the transparency and communication
regarding performance criteria and evaluation methods.
 The performance management feedback reports are communicated through face-to-
face, emails and meetings in Josalukkas.
 The performance management system in josalukkas identify and address barriers or
challenges that hinder employee performance in an effective way as 54% of
employees are satisfied.
 The level of support and resources provided by the organization is satisfied by 50%
of employees to meet their goals and objectives.
 According to 63% of employees, satisfied with the performance management system
in Josalukkas. The organization provides opportunities for employees' development
and growth.

60
 According to 50% of employees, satisfied with the frequency and quality of
communication between managers and employees in Josalukkas.
 The majority of the employees are motivated to perform at their best and strive for
excellence by the performance management system in Josalukkas.
 The majority of the employees are satisfied with the performance management system
for fostering a positive work environment.

Suggestions:
 The effectiveness of the performance management system in providing clear and
measurable expectations to employees is ineffective for 49% of employees. So, the
organization needs to take measurable steps to avoid such activities.
 According to 35% of employees, the fairness of performance evaluation process is
not satisfied in Josalukkas. So, the organization needs to take steps for growth, it’s
better to identify the activities which don’t affect the performance management
system of fairness in performance evaluation.
 According to 40% of employees, there is no regular feedback and coaching
sessions to improve their performance. So, the company should provide the regular
feedback and coaching to improve their performance.
 According to 20% of employees, recognition and reward of high performing
employees for their contributions is ineffective. So, it’s better to maintain the
activities in an effective manner to avoid such things in the Josalukkas.
 The productivity impact of the performance management system is neutral as 35%
of employees’ rating is only 3. So, the organization needs to take necessary steps
to increase the productivity impact of performance management system.
 According to 25% of employees, transparency and communication regarding
performance evaluation is not satisfied. It’s better to increase the transparency and
accountability of performance evaluation.
 The performance management system for identifying and addressing challenges is
not effective for 40% of employees. So, the organization needs to take the relevant
activities into consideration in identification of challenges that hinder employee
performance.
 It is observed that the support and resources provided by the organization to help
employees in meeting their goals and objectives is not satisfied by 30% of
employees. So, the organization needs to consider the activities in an effectively.

61
  According to 20% of employees, there is no proper development needs and
opportunities for growth of employees. The organization should provide the
relevant opportunities for the development of employees which result in the growth
of organization.
 It is observed that the 25% of employees is not satisfied with the quality of
communication between managers and employees. So, the firm needs to improve
the communication between the employees and manager for the development.

Conclusion:
Joyalukkas highlights the essential role a well-implemented PMS plays in enhancing
employee performance and aligning it with organizational goals. Effective goal setting,
continuous feedback, and employee development are identified as fundamental
components driving engagement and productivity. Adopting a balanced scorecard
approach ensures comprehensive performance evaluation across financial, customer,
internal processes, and learning and growth perspectives. Integrating peer reviews and
team evaluations can provide a holistic view of employee contributions, fostering a
collaborative and supportive work environment. Regular training for managers on
performance management techniques is crucial for fair and constructive evaluations,
leading to a motivated and high-performing workforce. Recommendations from the study
aim to refine the existing PMS, making it more robust and aligned with Joyalukkas'
strategic goals, thereby securing a competitive market edge. These enhancements are
expected to improve employee satisfaction, retention rates, and sustained business success.

Data-driven insights from a PMS support strategic decision-making and resource

allocation, ensuring organizational efforts align with business goals. Performance
appraisal, a critical part of performance management, helps identify good and bad
performers, providing a framework for employee development and motivation. A
systematic feedback system is necessary to ensure managers and employees meet
expectations and identify improvement areas. The study underscores the significance of
PMS in enhancing employee performance, engagement, and job satisfaction, ultimately
contributing to organizational success.

62
BIBLOGRAPHY:
 Chandhana, K and Dr. David T Easow (2015), Performance Appraisal Method Used
in Top 10 IT Companies – 360 Degree Feedback & Balanced Score Card: A Review,
Bonfring International Journal of Industrial Engineering and Management Science,
Vol. 5, No. 2, pp- 73-77.
 Rajput, Veena. (Apr-Jun 2015) Performance Appraisal System, Asian Journal of
Nursing Education and Research 5.2 (Apr-Jun 2015): 287-292.
 Rinku Sanjeev and Sanjeev Kumar Singh (2014), Employee Perception towards
Performance Appraisal Program in Packaging Industry, Journal of Strategic Human
Resource Management, Volume 3, Issue 1, February 2014, PP – 16-22.
 Anbarasu Thangavelu and Dr.J Clement Sudhahar (2014), Performance Management
Challenges in IT Industry – An Overview, Global Journal for Research Analysis, Vol-
03, Issue -02, ISSN No 2277-8160. Jawad Abdas, Asif Muzaffar, Hassan Khawar
Mahmood, Muhammad AtibRamzan and
 Syed Sibi UI Hassan Rizvi (2014), Impact of Technology on Performance of
Employees (A Case Study on Allied Bank Ltd, Pakistan), World Applied Sciences
Journal, Vol-29 (2), PP-271-276.
 Bethuel Sibongiseni Ngcamu (2013), ‘the Empirical Analysis of Performance
Management System: A Case Study of a University in South Africa, Journal of
Economic and Behavioural Studies, Vol-5, No-5, PP-316-324, May 2013, ISSN:
2220-6140.
 Rohan Singh, MadhumitaMohanty and Mohanty A.K. (2013), Performance Appraisal
Practices in Indian Services and Manufacturing Sector Organisations, Asian Journal
of Management Research, Integrated Publishing Association, Vol-4, Issue -2, PP-256-
265.
 Muhammad Shaukat Malik and Surayya Aslam (2013), Performance Appraisal and
Employee’s Motivation: A Comparative Analysis of Telecom Industry of Pakistan’,
Pakistan Journal of Social Sciences (PJSS), Vol.33, No.1 (2013), PP – 179-189.
 Hamumokola, NdafudaNdayandjoshisho (2013), The Contributions of Performance
Management Systems To performance in The Namibian Context’, Ph.D Thesis, the
Faculty of Commerce, Law and Management, University of the Witwatersrand,
Johannesburg, September 2013.

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 Rajesh K. Yadav and NishantDabhade (2013), Performance Management system in
Maharatna Companies (a leading public sector undertaking) of India – A Case study
of BHEL, Bhopal (M.P.), International Letters of Social and Humanistic Sciences,
Vol-4, PP-49-69.
 Sunil Kumar Pradhan and Dr. Suman KalyanChaudhury, (2012), A survey on
employee’s performance management and its implications to their relationship in
OCL India Ltd, Asian Journal of research in social sciences and Humanities, Vol .2,
Issue 4, April 2012.
 Mrs. U. Priya and Dr. A. Peer Mohideen. A Study on Attitude of Workers's towards
Performance Management System at Robinsons Cargo and Logistics Pvt. Ltd.,
Chennai. International Journal of Management, 7(2), 2016, pp. 629-635.
 Dr. R. Gopinath, A Study on Performance Management In BSNL with Special
Reference To Job Satisfaction In Three Different SSAS Using Modeling. International
Journal of Management, 7(5), 2016, pp.43–51
 Nitu Yadav, Performance Management & Measurement In HR and Payroll.
International Journal of Management, 8 (6), 2017, pp. 76–80.
 Dr.L.Vijay and B.Jayachitra, Effectiveness of Performance Management System,
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Issue 1, January- June (2000), pp. 53-59

64
QUESTIONAIRE:
1. Name:
2. Gender: a) Male b) Female
3. Age: a)18 - 24 b)25-30 c)31-40 d) 41-55 e)56 or older

4. How long have you been with your current employer

a) 6months - 1 year
b) 1-2 years
c) 2-5 years
d) 5-10 years
e) More than 10 years

5. What is your current employment status

a) Full time employed
b) Part time employed
c) Student
d) Retired
e) Others

6. How effective does the performance management system provide clear and measurable
performance expectations to employees?
- Highly effective
- Moderately effective
- Neutral
- Somewhat ineffective
- Highly ineffective

7. To what extent does the performance management system facilitate regular feedback
and coaching sessions to help employees improve their performance?
- Fully facilitates
- Partially facilitates
- Neutral
- Minimally facilitates
- Does not facilitate

65
8. How satisfied are you with the fairness and objectivity of the performance evaluation
process within the performance management system?
- Highly satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied

9.Who will evaluate the performance of employees in the organization?

a) Head of the department b) Top level management
c) Supervisor d) HR manager e) none of these

10. performance evaluation is done for every……………….

a) 1 month
b) 3 months
c) 6 months
d) 12 months
e) rarely
11. According to the opinion of the employees the Performance Management in Jos
Alukkas is?
a) Excellent
b) Very Good
c) Good
d) Average
e) Poor

12. The immediate course of action in case the performance appraisal of an employee is
not up –to- the –mark
a) Giving training b) Counseling c) Motivating
d) Decrease in salary e) none of these

13. How well does the performance management system recognize and reward high-
performing employees for their contributions?

66
- Highly effective
- Moderately effective
- Neutral
- Somewhat ineffective
- Highly ineffective

14. How effectively does the performance management system identify employees’
development needs and provide opportunities for growth?
- Highly effective
- Moderately effective
- Neutral
- Somewhat ineffective
- Highly ineffective

15. How satisfied are you with the frequency and quality of communication between
managers and employees regarding performance management?
- Very satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied

16. How well does the performance management system motivate employees to perform
at their best and strive for excellence?
- Highly motivating
- Moderately motivating
- Slightly motivating
- Not motivating
Not at all

17. How would you rate the impact of the performance management system on your
performance and productivity?
- Highly impactful
- Moderately impactful

67
- Slightly impactful
- Not impactful
Not at all

18. Performance Management reports/feedback will be communicated through

A) E-mail b) face to face c) meeting d) circular e) none of these

19. Transparent performance management system fosters a sense of fairness among

employees?
Strongly agree
Agree
Disagree
Strongly Disagree

20. How satisfied are you with the level of transparency and communication regarding
performance criteria and evaluation methods within the performance management system?
- Very satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied

21. How effective does the performance management system identify and address barriers
or challenges that hinder employee performance?
- Highly effective
- Moderately effective
- Neutral
- Somewhat ineffective
- Highly ineffective
22. How satisfied are you with the level of support and resources provided by the
organization to help employees meet their performance goals and objectives?
- Very satisfied
- Satisfied
- Neutral

68
- Dissatisfied
- Very dissatisfied
23. Overall, how would you rate the perceived impact of the performance management
system on fostering a positive work environment and employee satisfaction?
- Highly positive impact
- Moderately positive impact
- Neutral
- Slightly positive impact
- No positive impact

69