rj project

7/27/2019 RJ Project

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A

RESEARCH PROJECT

ON

A Study of Performance management system and

employee welfare at Liberty

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

Under The Supervision: - Submitted By:-

Dr. Shweta Hooda Solanki Ranjeeta Kumari

(CHAIRPERSON School Of Management Studies) MBA 4th

SEM

B.P.S.M.V Khanpur Kalan, Sonipat Roll No.:- 100782

Bhagat Phool Singh Women University

Khanpur Kalan Sonipat (Haryana)

Web site: -www.bpswomenuniversity.ac.in/
http://www.bpswomenuniversity.ac.in/http://www.bpswomenuniversity.ac.in/


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DECLARATION

I, RANJEETA KUMARI hereby declare that the report on all fulfillments of the

requirements for the award of the degree in Masters in Business Administration is a

record of original work done by me during the period of study 2011-2012, under the

guidance and supervision of Dr. Shweta Hooda Solanki (Chairperson of School of

Management Studies).

I further declare that all the facts and figures furnished in this project report are

the outcome of my own intensive research and findings and the same project has not beensubmitted to any other institution for the award of any other degree.

Signature of the Candidate

RANJEETA KUMARI


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CERTIFICATE

This is to certify that the report entitled " A Study of Performance management system

and employee welfare at Liberty being submitted by Ranjeeta Kumari in partial

fulfillment for award of degree of MBA is to the best of my knowledge a record of his

own work carried out by her under my supervision.

In addition the matter embodied in this report has not been submitted for award of any

other degree elsewhere.

I therefore recommend this report for submission.

Dr. Shweta Hooda Solanki(CHAIRPERSON School of Management Studies)


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ACKNOWLEDGEMENT

There is always a sense of gratitude, which is to be expressed to others for the helpful and

needy services they render during all phrases of life. I really wish to express my gratitude

towards all those who have been helpful to my project.

My special thanks to Dr. Shweta Hooda Solanki (MY PROJECT GUIDE) who was

become light for me in this endeavor .I will always be thankful to her for her kind help

and cooperation to me during project.

(RANJEETA KUMARI)


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PREFACE

Managing human resources in today's dynamic environment is becoming more

and more complex as well as important. Recognition of people as a valuable resource in

the organization has led to increases trends in employee maintenance, job security, etc.

My research project deals with "A study of employee welfare at Liberty India

through Performance management system". In this report, I have studied & evaluated

the performance management system and employee welfare services in the company.

The first section of my report deals with a detailed company profile. It includes

the company's history: its activities, organizational structure, etc. this section attempts to

give detailed information about the company and the nature of its functioning.

The second section deals with performance management system. In this section, Ihave given a brief conceptual explanation to performance management system. It contains

the definition, process and significance of performance appraisal

In the third section of my report, I have described the process of performance

management system and employee welfare at Liberty Shoes Ltd. This section also

contains my findings, conclusions, suggestions and feedback.


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INDEX

CHAPTER 1

Introduction to Company

History

Corporate Philosophy

Corporate Saga

Credo

Social Responsibility

Product Range

Innovative Approaches

International Experience

CHAPTER 2

Review of Literature

Process of Performance Management

Appraisal Techniques

Employees Welfare

Scope of Employee Welfare

Objective of Employee Welfare

Benefits Provided to Workers

CHAPTER 3

Present Existing Performance Management System

Process of Performance Appraisal

Employee Welfare at Liberty


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PERFORMANCE

MANAGEMENT SYSTEM

AND

EMPLOYEE WELFARE


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REVIEW OF LITERATURE

Performance appraisal: past and future

The history of performance appraisal is quite brief. Its roots in the early 20th

century can be traced to Taylor's pioneering Time and Motion studies. But this is not very

helpful, for the same may be said about almost everything in the field of modem human

resources management. As a distinct and formal management procedure used in the

evaluation of work performance, appraisal really dates from the time of the Second World

War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is avery ancient art. In the scale of things historical, it might well lay claim to being the

world's second oldest profession.

There is, says Dulewicz (I989), "... a basic human tendency to make judgements

about those one is working with, as well as about oneself. "Appraisal, it seems, is both

inevitable and universal. In the absence of a carefully structured system of appraisal,

people will tend to judge the work performance of others, including subordinates,

naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational,ethical and legal

problems in the workplace. Without a structured appraisal system, there is little chance of

ensuring that the judgments made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,

appraisal was used to decide whether or not the salary or wage of an individual employee

was justified. The process was firmly linked to material outcomes. If an employee's

performance was found to be less than ideal, a cut in pay would follow. On the other

hand, if their performance was better than the supervisor expected, a pay rise was in

order.

Little consideration, if any, was given to the developmentalpossibilities of

appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus

for an employee to either improve or continue to perform well.


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Sometimes this basic system succeeded in getting the results that were intended;

but more often than not, it failed. For example, early motivational researchers were aware

that different people with roughly equal work abilities could be paid the same amount of

money and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes;

but they were not the only element that had an impact on employee performance. It was

found that other issues, such as morale and self-esteem, could also have a major

influence.

As a result, the traditional emphasis on reward out comes was progressivelyrejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for

motivation and development was gradually recognized. The general model of

performance appraisal, as it is known today, began from that time.

Modern Appraisal

Performance appraisal may be defined as a structured formal interaction between

a subordinate and supervisor, that usually takes the form of a periodic interview (annual

or semi-annual), in which the work performance of the subordinate is examined and

discussed, with a view to identifying weaknesses and strengths as well as opportunities

for improvement and skills development. In many organizations - but not all - appraisal

results are used, either directly or indirectly, to help determine reward outcomes. That is,

the appraisal results are used to identify the better performing employees who should get

the majority of available merit pay increases, bonuses, and promotions.

By the same token, appraisal results are used to identify the poorer performers who may

require some form of counseling, or in extreme cases, demotion, dismissal or decreases in

pay. (Organizations need to be aware of laws in their country that might restrict their

capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of

performance appraisal -the assignment and justification of rewards and penalties - is a

very uncertain and contentious matter.

Performance appraisal, also known as employee appraisal, is a method by


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which the job performance of an employee is evaluated (generally in terms of quality,

quantity, cost and time). Performance appraisal is a part of career development.

Performance appraisals are regular reviews of employee performance within

organizations.

Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions : salary increases, promotions, disciplinary

actions, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administrator.

Validate selection techniques and human resource policies to meet federal Equal

Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar

rating system whereby managers are asked to score an individual against a number of

objectives/attributes. In some companies, employees receive assessments from their

manager, peers, subordinates and customers while also performing a self assessment. This

is known as 3600 appraisal.

The most popular methods that are being used as performance appraisal process

are:

Management by objectives

360 degree appraisal

Behavioral Observation Scale

Behaviorally Anchored Rating Scale

Benefits of Appraisal


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Perhaps the most significant benefit of appraisal is that, in the rush and bustle of

daily working life, it offers a rare chance for a supervisor and subordinate to have "time

out" for a one-on-one discussion of important work issues that might not otherwise be

addressed.

Almost universally, where performance appraisal is conducted properly, both

supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify

and correct existing problems, and to encourage better future performance. Thus the

performance of the whole organization is enhanced.

For many employees, an "official" appraisal interview may be the only time they

get to have exclusive, uninterrupted access to their supervisor. Said one employee of a

large organization after his first formal performance appraisal, "In twenty years of work,

that's the first time anyone has ever bothered to sit down and tell me how I'm doing." The

value of this intense and purposeful interaction between a supervisors and subordinate

should not be underestimated.

Motivation and Satisfaction

Performance appraisal can have a profound effect on levels of employee

motivation and satisfaction for better as well as for worse. Performance appraisal

provides employees with recognition for their work efforts. The power of social

recognition as an incentive has been long noted. In fact, there is evidence, that human

beings will even prefer negative recognition in preference to no recognition at all. If

nothing else, the existence of an appraisal program indicates to an employee that the

organization is genuinely interested in their individual performance and development.

This alone can have a positive influence on the individual's sense of worth, commitment

anti belonging.


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The strength and prevalence of this natural human desire for individual

recognition should not be overlooked. Absenteeism and turnover rates in some

organizations might be greatly reduced if more attention were paid to it. Regular

performance appraisal, at least, is a good start.

Training and Development

Performance appraisal offers an excellent, opportunity - perhaps the best that will

ever occur - for a supervisor and subordinate to recognize and agree upon individual

training and development needs. During the discussion of an employee's work

performance, the presence or absence of work skills can become very obvious even to

those who habitually reject the idea of training for them!

Performance appraisal can make the need for training more pressing and relevant

by linking it clearly to performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data

can form a picture of the overall demand for training. This data may be analyzed by

variables such as sex, department, etc. In this respect, performance appraisal can providea regular and efficient training needs audit for the entire organization.

Recruitment and Induction

Appraisal data can be used to monitor the success of the organization's

recruitment and induction practices. For example, how well are the employees performing

who were hired in the past two years?

Appraisal data can also be used to monitor the effectiveness of changes in

recruitment strategies. By following the yearly data related to new hires (and given

sufficient numbers on which to base the analysis) it is possible to assess whether the

general quality of the workforce is improving, staying steady, or declining.

Employee Evaluation

Though often understated or even denied, evaluation is a legitimate and major


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objective of performance appraisal. But the need to evaluate (i.e., to judge) is also an

ongoing source of tension, since evaluative and developmental priorities appear to

frequently clash. Yet at its most basic level, performance appraisal is the process of

examining and evaluating the performance of an individual. Though organizations have a

clear right - some would say a duty - to conduct such evaluations of performance, many

still recoil from the idea. To them, the explicit process of judgment can be dehumanizing

and demoralizing and a source of anxiety and distress to employees. It is been said by

some that appraisal cannot serve the needs of evaluation and development at the same

time; it must be one or the other. But there may be an acceptable middle ground, where

the need to evaluate employees objectively, and the need to encourage and develop them,can be balanced.

What to evaluate?

The first important step in developing a performance management system is to

determine which aspects of performance to evaluate. The most frequently used appraisal

criteria are traits, behaviors, and task outcomes.

Traits

Many employees are assessed according to their traits, such as personality,

aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater

gets to know rates. But traits are not always directly related to job performance. Trait-

based assessment lacks validity and thus frequently raises legal questions.

Behaviors

For many jobs, performance is so broadly defined or so conceptual in nature- such

as ensuring public safety in the police department-that it is hard to come up with reliable

performance measures. In such cases, desirable behaviors can be identified and assessed

in the belief that such behaviors lead to successful performance. Such behavior-focused

assessment encourages employees to adopt desirable behavioral patterns in the


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workplace.

Task outcomes

When information about task outcomes is readily available, it is the most

appropriate factor to use in evaluating performance. When an organization has a clear and

measurable goal as in the case of a sales force, this approach is recommended. However,

it has its own pitfalls. There is a problem if employee behaviors are not directly related to

the task out-come. Too narrow a focus on measuring out-come only sometimes results in

unintended negative consequences. When sales staff narrowly focuses on target sales

figures to increase their performance measure, for example, they are encouraged to help a

few large-volume customers and to ignore many smaller buyers. This may result in poor

customer service on the floor.

Human resource development and performance appraisal

Regular performance appraisal contributes to employee effectiveness,

development and satisfaction on the job. Employees should know their strengths, as well

as areas of needed improvement, in order to attain the optimum level of job performance.

Done both formally and informally, performance appraisal is an excellent aid to

communication, and an effective way of clarifying duties and responsibilities. In addition,

written performance appraisals may provide documentation which substantiates

recommendations for promotion, transfer, termination or other personnel action. Records

of conferences between managers and employees outlining efforts to promote

improvement in job performance, as well as documentation of an employee's strengths,

will be prepared and maintained by the manager. Copies of these records will beforwarded to Human Resource Services for inclusion into the employee's personnel

records. In addition, each employee's performance will be formally appraised annually by

the supervisor through the university-wide performance appraisal program. The written

performance appraisal will be included in the employee's personnel file.

Performance Appraisal Program


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Whenever possible, each employee's performance will be formally appraised on or

near the anniversary of the date of employment. During the month preceding the month in

which the anniversary falls, Human Resource Services will send a notice to the

department head for distribution to the supervisor responsible for appraising the

employee. The manager will complete the form and meet with the employee to discuss

the appraisal. The supervisor will then forward the completed performance appraisal

form, which has been signed by the employee, to the appropriate director or officer (i.e.,

the supervisor's supervisor), who will review and sign the form and forward it to Human

Resource Services. The forms will be returned to Human Resource Services no later than

the end of the month following the month of the anniversary.

There may be circumstances such as leaves of absence which alter the schedule.

The university reserves the right to delay an employee's appraisal where appropriate.

Manuals describing the appraisal process and forms are available in each department, in

the Library, and in Human Resource Services.

Retention of Performance Appraisals

The Performance Appraisal forms will be retained in the employee's personnel file

for not less than a three-year period, as will any other records of an employee's job

performance.

Unsatisfactory Performance

In the event an employee's performance is determined to be unsatisfactory, the

performance appraisal permits the clarification of expectations so that the employee's

performance can be improved. For those few instances that require more intervention, the

procedures described under "Corrective Action" should be followed.

The goals, design and management of the organizational and process levels are

part of the system that affects performance. The Performance System builds on those

levels by providing a more "micro" picture of people and of the immediate environment

that 'surrounds them. The Human Performance System is viewed in the input-output-

feedback perspective. The quality of outputs is a function of the quality of inputs,


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PROCESS OF PERFORMANCE MANAGEMENT

Performance management is the process of assessing progress toward achieving

predetermined goals. It involves building on that process, adding the relevant

communication and action on the progress achieved against these predetermined goal.

Helps organizations achieve their strategic goals. Rather than discarding the data

accessibility previous systems fostered, performance management harnesses it to help

ensure that an organization's data works in service to organizational goals to provide

information that is actually useful in achieving them and focus on the Operational

Networking Processes between that performance levels. The main purpose of

performance management is to link individual objectives and organizational objectives

and bring about that individuals obey important worth for enterprise. Additionally,

performance management tries to develop skills of people to achieve their capability to

satisfy their ambitiousness and also increase profit of a firm.

Performance management is closely connected to Performance measurement.

They are sometimes mistaken for each other. In careful usage, Performance Management

is the larger domain and includes Performance Measurement as a component.

Performance management is the systematic process by which an agency involves

its employees, as individuals and members of a group, in improving organizational

effectiveness in the accomplishment of agency mission and goals.


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Employee performance management includes:

Planning work and setting expectations,

Continually monitoring performance,

developing the capacity to perform,

periodically rating performance in a summary fashion, and

rewarding good performance.

The revisions made in 1995 to the Government wide performance appraisal and

awards regulations support sound management principles. Great care was taken to ensure

that the requirements those regulations establish would complement and not conflict with

the kinds of activities and actions practiced in effective organizations as a matter of

course.

Planning

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

setting performance expectations and goals for groups and individuals to channel theirefforts toward achieving organizational objectives. Getting employees involved in the

planning process will help them understand the goals of the organization, what needs to

be done, why it needs to be done, and how well it should be done.

The regulatory requirements for planning employees' performance include

establishing the elements and standards of their performance appraisal plans. Performance

elements and standards should be measurable, understandable, verifiable, equitable, ana


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achievable. Through critical elements, employees are held accountable as individuals for

work assignments or responsibilities. Employee performance plans should be flexible so

that they can be adjusted for changing program objectives and work requirements. When

used effectively, these plans can be beneficial working documents that are discussed

often, and not merely paperwork that is filed in a drawer and seen only when ratings of

record are required.

Monitoring

In an effective. organization, assignments and projects are monitored continually.

Monitoring well means consistently measuring performance and providing ongoing

feedback to employees and work groups on their progress toward reaching their goals.

Regulatory requirements for monitoring performance include conducting progress

reviews with employees where their performance is compared against their elements and

standards. Ongoing monitoring provides the opportunity to check how well employees are

meeting predetermined standards and to make changes to unrealistic or problematic

standards. And by monitoring continually, unacceptable performance can be identified at

any time during the appraisal period and assistance provided to address such performance

rather than wait until the end of the period when summary rating levels are assigned.

Developing

In an effective organization, employee developmental needs are evaluated and

addressed. Developing in this instance means increasing the capacity to perform through

training, giving assignments that introduce new skills or higher levels of responsibility,

improving work processes, or other methods.

Providing employees with training and developmental opportunities encourages

good performance, strengthens job-related skills and competencies, and helps employees

keep up with changes in the workplace, such as the introduction of new technology.

Carrying out the processes of performance management provides an excellent

opportunity to identify developmental needs. During planning and monitoring of work,


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deficiencies in performance become evident and can be addressed. Areas for improving

good performance also stand out, and action can be taken to help successful employees

improve even further.

Rating

From time to time, organizations find it useful to summarize employee

performance. This can be helpful for looking at and comparing performance over time or

among various employees. Organizations need to know who their best performers are.

Within the context of formal performance appraisal requirements, rating means

evaluating employee or group performance against the elements and standards in an

employee's performance plan and assigning a summary rating of record. The rating of

record is assigned according to procedures included in the organization's appraisal

program. It is based on work performed during an entire appraisal period. The rating of

record has a bearing on various other personnel actions, such as granting within-grade pay

increases and determining additional retention service credit in a reduction in force.

Note: Although group performance may have an impact on an employee's summaryrating, a rating of record is assigned only to an individual, not to a group.

Rewarding

In an effective organization, rewards are used well. Rewarding means recognizingemployees, individually and as members of groups, for their performance and

acknowledging their contributions to the agency's mission. A basic principle of effective

management is that all behavior is controlled by its consequences. Those consequences

can and should be both formal and informal and both positive and negative.

Good performance is recognized without waiting for nominations for formal

awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience.


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A lot of the actions that reward good performance - like saying "Thank you" - don't

require a specific regulatory authority. Nonetheless, awards regulations provide a broad

range of forms that more formal rewards can take, such as cash, time off, and many

nonmonetary items. The regulations also cover a variety of contributions that can be

rewarded, from suggestions to group accomplishments.

Managing Performance Effectively.

In effective organizations, managers and employees have been practicing good

performance management naturally all their lives, executing each key component process

well. Goals are set and work is planned routinely. Progress to ward those goals is

measured and employees get feedback. High standards are set, but care is also taken to

develop the skills needed to reach them. Formal and informal rewards are used to

recognize the behavior and results that accomplish the mission. All five component

processes working together and supporting each other achieve natural, effective

performance management.


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APPRAISAL TECHNIQUES

There are several techniques of performance appraisal, each with some strong points as

well as limitations. Oberg (1972) has summarized some of the commonly used

performance appraisal techniques.

(i) Essay appraisal method

The assessor writes a brief essay providing an assessment of the strengths,

weaknesses and potential of the subject. In order to do so objectively, it is

necessary that the assessor knows the subject well and should have interacted with

them. Since the length and contents of the essay vary between assessors, essay

ratings are difficult to compare.

(ii) Graphic rating scale

A graphic scale 'assesses a person on the quality of his or her work (average;

above average; outstanding; or .unsatisfactory).' Assessment could also be trait

centered and cover observable traits, such as reliability, adaptability,

communication skills, etc. Although graphic scales seem simplistic in

construction, they have application in a wide variety of job responsibilities and are

more consistent and reliable in comparison with essay appraisal. The utility of this

technique can be enhanced by using it in conjunction with the essay appraisal


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technique.

(iii) Field review method

Since individual assessors differ in their standards, they in advertently introduce

bias in their ratings. To overcome this assessor-related bias, essay and graphic

rating techniques can be combined in a systematic review process. In the field

review method, 'a member of the HRM staff meets a small group of assessors

from the supervisory units to discuss each rating, systematically identifying areas

of inter-assessor disagreement.' It-can then be a mechanism to help each assessor

to perceive the standards uniformly and thus match the other assessors. Althoughfield review assessment is Considered valid and reliable, it is very time

consuming.

(iv) Forced-choicerating method

Unlike the field review method, the forced-choice rating method does not involve

discussion with supervisors. Although this technique has several variations, the

most common method is to force the assessor to choose the best and worst fit

statements from a group of statements. These statements are weighted or scored in

advance to assess the employee. The scores or weights assigned to the individual

statements are not revealed to the assessor so that she or he cannot favour any

individual. In this way, the assessor bias is largely eliminated and comparable

standards of performance evolved for an objective. However, this technique is of

little value wherever performance appraisal interviews are conducted.

(v) Critical incident appraisal method

In this method, .a supervisor describes critical incidents, giving details of both

positive and negative behaviour of the employee. These are then discussed with

the employee. The discussion focuses on actual behaviour rather than on traits.

While this technique is well suited for performance review interviews, it has the

drawback that the supervisor has to note down the critical incidents as and when

they occur. That may be impractical, and may delay feedback to employees. It


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makes little sense to wait six months or a year to discuss a misdeed, a mistake or

good display of initiative.

(vi) Management by objectives

The employees are asked to set or help set their own performance goals. This

avoids the feeling among 'employees that they are being judged by unfairly high

standards. This method is currently widely used, but not always in its true spirit.

Even though the employees are consulted, in many cases management ends up by

imposing its standards and objectives. In some cases employees may not like 'self-

direction or authority.' To avoid such problems, the work standard approach isused.

(vii) Works standard approach

In this technique, management establishes the goals openly and sets targets against

realistic output standards. These standards are incorporated into the organizational

performance appraisal system. Thus each employee has a clear understanding of

their duties and knows well what is expected of them. Performance appraisal and

interview comments are related to these duties. This makes the appraisal process

objective and more accurate. However, it is difficult to compare individual ratings

because standards for work may differ from job to job and from employee to

employee. This limitation can be overcome by some form of ranking using pooled

judgment.

(viii) Ranking methods -

Some of the important forms of ranking for performance appraisal are given

below, based on Oberg, 1972; and Monga, 1983:

(a) Alteration ranking method :The individual with the best performance is

chosen as the ideal employee. Other employees are then ranked against

this employee in descending order of comparative performance on a scale

of best to worst performance. The alteration ranking method usually


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involves rating by more than one assessor. The ranks assigned by each

assessor are then averaged and a relative ranking of each member in the

group is determined. While this is a simple method, it is impractical for

large groups. In addition, there may be wide variations in ability between

ranks for different positions.

(b) Paired comparison: The paired comparison method systematizes ranking and

enables better comparison among individuals to be rated. Every individual in the

group is compared with all others in the group. The evaluations received by each

person in the group are counted and turned into percentage scores. The scores

provide a fair idea as to how each individual in the group is judged by the

assessor.

(c) Person-to-person rating:In the person-to-person rating scales, the names of the

actual individuals known to all the assessors are used as a series of standards.

These standards may be defined as lowest, low, middle, high and highest

performers. Individual employees in the group are then compared with the

individuals used as the standards, and rated for a standard where they match the

best. The advantage of this rating scale is that the standards are concrete and are in

terms of real individuals. The disadvantage is that the standards set by different

assessors may not be consistent. Each assessor constructs their own person-to-

person scale which makes comparison of different ratings difficult.

(d) Checklist method: The assessor is furnished with a checklist of pre-scaled

descriptions of behaviour, which are then used to evaluate the personnel being

rated (Monga, 1983). The scale values of the behaviour items are unknown to the

assessor, who has to check as many items as she or he believes describe the

worker being assessed. A final rating is obtained by averaging the scale values of

the items that have been marked.

(e) Behaviorally Anchored Rating Scales (BARS): This is a relatively new

technique. It consists of sets of behavioral statements describing good or bad

performance with respect to important qualities. These qualities may refer to inter-


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personal relationships, planning and organizing abilities, adaptability and

reliability. These statements are developed from critical incidents collected both

from the assessor and the subject.

(f) Assessment centers: This technique is used to predict future performance of

employees were they to be promoted. The individual whose potential is to be

assessed has to work on individual as well as group assignments similar to those

they would be required to handle were they promoted. The judgment of observers

is pooled and paired comparison or alteration ranking is sometimes used to arrive

at a final assessment. The final assessment helps in making an order-of-merit

ranking for each employee. It also involves subjective judgment by observers.

A performance appraisal system could be designed based on intuition, self-

analysis, personality traits, behaviourial methods and result-based techniques.

Different approaches and techniques could be blended, depending on the goals of

performance appraisal in the organization and the type of review. For example,

management by objectives, goal-setting and work standard methods are effective

for objective coaching, counseling and motivational purposes. Critical incident

appraisal is best suited when supervisor's personal assessment and criticism are

essential. A carefully developed and validated forced-choice rating can provide

valuable analysis of the individual when considering possible promotion to

supervisory positions. Combined graphic and essay form is simple, effective in

"identifying training and development needs, and facilitates other management

decisions.

Components of the appraisal format

Key performance areas, self-appraisal, performance analysis, performance ratings

and counseling are the important components of a performance appraisal system oriented

to development of human resources in an organization. The appraisal format should be

designed in consonance with the objectives of the performance appraisal system, and

generate information on a number of important aspects, including:


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Identification of key performance areasThe first step in an appraisal process is

identifying key performance areas and setting targets for the next appraisal period.

This may be done either through periodic discussions or at the beginning of the

year, as in research institutions.

Self-appraisal by the subject At the end of the appraisal period, employees

appraise their own performance against the key performance areas, targets and

pre-identified behaviour. Information on these issues is provided in an appraisal

format. The employees also write their self-evaluation reports and hand them to

their supervisors.

Analysis The supervisor reflects on the performance of the employee, and

identifies the factors which facilitated or hindered the employee's performance.

The manager then calls the employee for a discussion to better understand his or

her performance and provide counseling on further improvements. During this

discussion, appraisal records (such as notes, observations, comments, etc.) are

exchanged. The manager then gives a final rating and recommendations regarding

the developmental needs of the individual. These are shown to the subject and his

or her comments are recorded on the appraisal form. The appraisal form is then

transmitted to the personnel department for the necessary administrative action.

The personnel or human resource development department uses these forms for

identifying and allocating training, rewards and other activities.

Identification of training needs : The use of a development-oriented

performance appraisal system is based on a good understanding of the concept of

human resources development. The need for developing employee capabilities,

the nature of capabilities to be developed, and the conditions under which these

capabilities can be developed have to be appreciated. During the discussion

between the supervisor and the employee, the development needs of the subject

are identified and goals set for the next period.

Identification of qualities: The supervisor may also identify the qualities


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required for current as well as future tasks, and assess the employees potential

and capabilities to perform jobs at higher responsibility levels in the organization.


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EMPLOYEES WELFARE

"The development of harmonious relations will lead to develop healthy

relationship between the two groups of industry and paves the way for industrial peace. "

The word employee means any productive activity

The industrial progress of a country depends to a great extent on a contended

employee force. An in different, even if not frustrates and bitter, worker is not only a

stigma upon the society, but also a stumbling block to harmonious industrial functioning

resulting in strained industrial relations, excessive rate of employee turnover, absenteeism

& low employee productivity and it hampers the economic growth of the country.

Welfare

Welfare means faring or doing well. It is a comprehensive term & refers to the

physical, mental, moral & emotional well being of a person.

WELFARE

Total Concept Social Concept Relative Concept Positive

Total Concept : It is a desirable state of existence involving physical, mental, moral &

emotional well-being.

Social Concept : Implies the welfare of man, his family & his community each aspect

serving as ends and means.

Relative Concept : Welfare is related to time and space.

Positive Concept : The positive nature calls for the setting up of the minimum disable

standards necessary for certain components of welfare.

EMPLOYEE WELFARE


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"It is a state of well-being, happiness, satisfaction, conservation development of

human resources."

The Oxford Dictionary defines Employee Welfare as betterment of work for

employees relates to taking care of the well being of workers by employer's trade union

govt. and non-government agencies. The concept of employee welfare cannot be

concisely defined because of the relativity of the concept.

The working conditions should be such as to safeguard his health and to protect

against occupational hazards. Despite phenomenal rise in wages there is still lack of

stabilized work force. Employee Welfare is a flexible concept and part of social welfare,conceptually & operationally.

Employee Welfare has tremendous potentialities for fostering good Industrial

Relations in India. Hence, we might use scientific procedure for Employee welfare and

Organization and employee force must be directed in right channels in our fast

developing technological machinery.

Scope of Employee Welfare

Employee welfare has become essential of the very nature of the industrial

system. The approach to this problem or movement differs from country to country

according to the degree of development in a particular country however the need for

employee welfare in some way or the other is realized all over the world of the socio-

economic condition and problems which the industrial society has thrown up. Employee

Welfare work is increasing with changing opportunities and needs to meet varying

situations. It is also increasing with the growing knowledge and experience of techniques.

An able I welfare officer would. Therefore, includes in his welfare programme the

activities that would be conducive to the well being of the worker and his family.

The Scope of Employee Welfare includes: -

Minimum standards of safety hygiene given under employee registration.

Voluntary social insurance scheme.


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Measures for protection of women and young workers.

Limitations of hours of work.

Paid vacations.

Social relationships at work place.

Objectives of Employee Welfare:-

The aim or objectives of welfare activities is three field:

Hurnanitarian- to enable workers to enjoy a future and riches life.

Econornic- to improve the efficiency of the workers. Civic- to develop among the workers a sense of responsibility and dignity and

thus make them worthy citizens of the nation.

In total, we can say that following could be the objectives of the employee welfare

activities:

To create and improve sound industrial relations.

To win over employee's loyalty and increase their morale.

To combat trade unionism and socialists ideas.

To build up stable employee force, to reduce employee turnover and absenteeism.

To motivate the employees by identifying and satisfying their unsatisfied needs.

To develop efficiency and productivity among workers.

To save oneself from heavy taxes on surplus profits.

BENEFITS PROVIDED TO WORKERS:-

Educational Facilities

Sickness & Maternity Benefit .

Provident Fund & Pension

Compensation Facility .

Leave Facility


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Canteen Facility

Drinking Water Facility .

Various Allowances

These benefits if provided to worker reduces the rate of:

Absenteeism

Strengthening of cordial relationship

Increases mental efficiency & economic productivity .

Developing sense of belongingness

Minimizing industrial strike .

Better management & workers relationship

Thus, we can say that the overall objective of employee welfare activities is to win

over the employee's loyalty, to increase productivity, reduce absenteeism and turnover.

Promote better relationships with the employees and to enhance the image or create

goodwill between employee and mgt. and mgt. and public.


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INTRODUCTION TO COMPANY

Liberty Shoes Ltd. is the only Indian company that is among the top 5

manufacturers of leather footwear in the world with a turnover exceeding U.S. $100

million. We produce more than 50,000 pairs of footwear a day covering virtually every

age group and income category. Products are marketed across the globe through 150

distributors, 350 exclusive showrooms and over 6000 multi-brand outlets, and sold in

thousands every day in more than 25 countries including fashion-driven, quality-obsessed

nations like France, Italy, and Germany with 50 years of excellence, today Liberty

produces footwear for the entire family and is a trusted name across the world. In the

domestic market it is one of the most admired footwear brands and holds the largest

market share for leather footwear

History:-

It was the 25th December of 1954 when India was nurturing its growth as a free

country, three dreamers in a small town in erstwhile Punjab thought of producing an

Indian brand of footwear to make a basic necessity available to their countrymen. Mr. D P

Gupta, Mr. P D Gupta and Mr. R K Bansal allowed their vision to cross every barrier and

brought cutting-edge technologies to their own country. Within a short span of time, the

name, Liberty became a synonym to quality footwear in the domestic market and this

encouraged the company to invest further for enhancing production capacities and to cater

to the demands of international markets.

With 50 years of excellence, today Liberty produces footwear for the entire family

and is a trusted name across the world. In the domestic market it is one of the most

admired footwear brands and holds the largest market share for leather footwear.

Corporate Philosophy:

Steeped in a philosophy that has at its core innovation, technology and

advancement, we at Liberty, pride ourselves over and above everything else on our

healthy and heart-felt respect for the human ethos, which projects itself in the expectancy


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and excitement with which one greets the arrival of the new combined with a sincere and

deep regard for the old, which is appreciative of and adopts at every stage the unique

balance between modernization and tradition.

Liberty as a brand is constantly evolving to keep pace with the changing trends,

styles, beliefs, and aspirations of people while maintaining the sanctity of certain

traditions like workmanship and good value.

Corporate Saga:-

With people as its leitmotif, Liberty has for over 50 years, always stayed in touch

with the aspirations of every successive generation even as it developed the largest range

in the industry catering to every income bracket and age segment. Using the patented

'Human-tech' approach that combines the best of talent with the latest in technology.

From the price-conscious, value for money seeking buyer to the trendy, global, price-

indifferent customer from the with it all attitude teenager to the conservative seen it all

adult, just about everybody today finds a good reason for being in Liberty.

Liberty is today consolidating and expanding its following from the fashion alloysto the sidewalks with styles that compliment the newest most happening trends. And also

by turning footwear selling into a byword for personalized service in an ambience of five

star comfort. This can be experienced in the hundreds of Liberty five star showrooms and

shoe stations in India and abroad. But beyond that lies another but equally significant

involvement. It's all about making a difference in the lives of thousands of people all over

India by ensuring direct and indirect employment. Creating wealth, sharing prosperity,

and generating progress. For Liberty, there can be no greater honour than that and no

bigger reason for walking tall.

Credo

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

follow the highest standards of honest workmanship in whatever we make. To walk the

extra mile to ensure customer satisfaction worldwide. To remain a true cosmopolitanto

the spirit. To remain a great corporation to associate with, to work for. To know that


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"We are about people".

Social Responsibility:-

Liberty conducts its business with honesty, integrity and respect for all those who

come in contact with it in course of business. Fully appreciative of the fact that its

reputation stems from not just quality products and technological innovations but also

from the manner of its dealings with customers, suppliers, government officials and all

those who are outside the Liberty Group. Utmost importance is also given to ensuring a

safe, healthy and non-discriminatory work environment for all Liberty employees where

they are free from harassment of any form by supervisors, seniors, co-workers, customers

and suppliers. Ethical standards and practices are rigorously adhered to which is why

Liberty finds place in the most favored list of respectable brands like Wal-Mart, Reebok,

Nike, etc who recognize it as an Equal Opportunity Employer.

Research and Development:

Liberty 2 way Channel partners dig their feedback deep and constantly.

Hammering the string of creative workmen at the manufacturing centers to produce not

just faceless shoes dancing down conveyer belts but shoes with character. So the centers

have poured 53 years of research and continuous flow of emotions to redefine the R&D

center at Liberty puram. Fusing Technology with the sweat of sagacity. Some call it

Research and Development wing, some put a price to the investments in the "Emotional

technology" that it comes out as. They call the process HUMANTECH and it is priceless.

Liberty is also very active in the area of Research and Development and has a

number of "firsts" to its credit like:

Liberty pioneered the PU (Polyurethane) Technology in India in Footwear

Industry in 1982 and today is the largest producer of footwear with this

technology in Asia.

Liberty has developed, new material TPE (Thermo Plastic Elastomer) for High

Quality formal footwear


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Liberty was the first company commissioning the Latest CAD/CAM System in its

Design Centre.

Liberty Enterprises is the only Factory in India having Water Proofing

Technology approved by SYMPATEX, a name known for Water Proofing

technology world wide.

Liberty Enterprise Management structure is very thin in size comparing with a

huge workforce in front line operations.

Design &Development:

Liberty has well established state of the art design centers, which are constantly

engaged in designing and developing latest trend setting footwear for the young fashion

conscious Indian consumers. On an average 4000 new styles are developed every year out

of which roughly 1200 styles are selected and introduced in the market in two seasons

i.e., spring/ summer and fall / winter.

Distribution Network:

They have a Distribution Network that rivals the human arterial system. A

reticulate network of retailers, showrooms, and exclusive outlets with a reach like a blue-

green marine octopus. A structured 2-Way Feeder-Feedback system that both gives and

receives. An organization of our size would have gone Out-of-orbit without a firm after

sales Support System. Thanks to the vision and drive of our Corporate Think tank, we

now have a sales Network that brings the breath taking world of Super footwear right at

your feet, within seconds. A virtual Room Service at zero cost, if you will. A MarketingSystem that they've conceived and created, it is understandably, the envy of competition.

Strength:

Liberty upgrade and reengineers their designs every six months so that they have

something new, with it and futuristic every time one visit them. Their shoes are much

more than just bewitching leatherwork .They understand that a shoe for person is an


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extension of his personality. And for one who keeps moving onto to stables of desire

loaded with the exciting world fashion trends they craft the dreams with the help of

Fashion Technologists shut away not in dream bars but with their heart and minds on the

pulse of future fashion.

Product Range

The new range from Liberty is all about style, design, and comfort. The range

imbibes the spirit of fun and is trendy to the core. There is a product for every season and

occasion.

BRANDS

Coolers are a brand of unisex sandals and slip-ons. Catering to a wide segment

across the country Coolers are much sought after not just in the summer season but also

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

Professionals, undertaking high impact, electrical, thermal, chemical or even

slippage risks, walking over surfaces or operating in environments that expose them to

dangers related to these, use a pair of Boots that they completely rely on. Whether you are

a power plant technician, alkali unit worker, or even an X-treme sports practitioner, you

will appreciate the safety of FREEDOM Protective Professional Boots. Made from super-

resilient rubber, blended with PVC, these boots afford the protection that no ordinary


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footwear can provide, no matter how well they are constructed. They are resistant to,

electrical shock, mechanical crush, chemical eorrosion and extreme heat and cold. These

boots are also anti-static, anti-slippage, non-tearable. FREEDOM offers safety and

durability that you may have near experienced before.

One looks at following features

Precision moulded from new generation high resilience, high insulation rubber.

Single-piece moulded sole and upper: complete freedom from seepage /

permeation or structural separation.

Exclusive super tough protective sole with stainless steel midsole. Perforation

resistance equivalent to 110daN.

Steel toe-cap for enhanced safety. Capable of 1500 daN level crush resistance.

Re-infroced heel and instep. Built-in ankle protectors.

Thick flexible sole with specially designed foot support for complete walking

balance and comfort, even when worn for long periods.

Super absorbent, rot-proof inner polyester lining for added comfort.

The heel can absorb shocks of up to 20 joules. The specially designed sole has

non-slip grooves along with raised front and-back ends for excellent grip on all

surfaces including planes, ladders, slush etc.

Designed for maximum safety

FREEDOM protective boots are single-piece moulded from high grade PYC with

special blend of rubber. They provide excellent mechanical, chemical and thermal

resistance thus ensuring complete safety. They are 100% waterproof and are designed to

offer supreme foot comfort and supports as well

For a better grip on slopes/inclines, the sole's front and rear ends are slightly

raised

Optimum clear spacing to avoid build-up of mud and sludge


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Ladder work will be much easier with its Arched non-slip grooves

U-shaped heel with shock absorbent.

Non-woven, absorbent & rot-proof polyester lining for greater comfort

Re-inforced heel & instep

Ankle protectors.

Flexible, perforation resistant sole

Steel Toe-Cap, 1500 daN crushing resistance, 200 Joules shocks resistance.

Reflective media providing visibility in fog, smoke and darkness.

Sporty and vibrant the Force 10 range has been rewriting the industry norms.Constant technology upgradation shave made it one of the more desired brands in the

category.

The brand exhibits the vivacity of children in every way. Colorful and

comfortable, the range has smart sandals, elegant sports shoes and bright colored lace up

to ensure a formal look for the children.


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A pure male fashion brand, Fortune has the latest styles in formal footwear for

men. Its flamboyance gives the brand strong following.

Gliders is a complete range of footwear in itself. Using the trendy EVA

technology it comprises of beach wear to casual as well as formal footwear both in leather

and other innovative material meant. And is perfect for not just grownup boys and girls

but young kids too.

The brand offers women comfortable and fashionable slip-ons, sandals and bellies

with neat styling thrown in, not bordering on the bizarre but acceptable across a wide

spectrum.


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Liberty's Warrior range has over a short period of time developed a reputation

that's an envy of many a competition. The product quality and the range that we produce

have gained acceptability across a varied segment of industrial users. Some of the biggest

corporate houses of the country are sourcing the footwear for their workforce from us.

The product range caters to the building and construction industry, the Oil industry the

health care segment. The range has not just safety shoes but foot wear for the executives

in the company and special footwear for the nurses and the healthcare segment.

A Windsor shoe embodies comfort and style. With its classic looks that's popularamongst the young executives the Windsor brand of shoes are one of the largest set of

Men's shoes sold by Liberty.

Presenting low budget Safety Shoes from the house of Liberty. Workman Safety

Shoe is specially designed & developed for Industries like Construction, Engineering,

Service sector where contractual workers with limited budget are employed.


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A choicest range of school shoes for both boys and gals in buckled and lace type

that makes school going an interesting affair. Available in shining black and pure white,

its wide variety makes way for the wonder years of school life.

SENORITA is a brand for the fashion and style conscious young woman. She's

comfortable expressing herself and makes life beautiful and invigorating whether at work

or home.

INNOVATIVE APPROACHES:

Entire production units of liberty are interlinked by SAP, a unique ERP Solution

implemented for the first time in India in a Footwear Industry with all modules related

with Finance, Logistics & supply chain. It is rare to see such clean, state of the art

production facility in India with following management systems and tools.

KAIZEN is implemented since 2000 and in practice throughout the organization.

5 S Concept is introduced and in practice since 2001 and presently in matured

stage. The impact of 5 S implementation is visible in all dept. and shop floors of

the organization. They may even consider these units are the model units for any

Footwear Industry

LEAN awareness is existing in all production floors of the organization. Value


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streams are standardized for most of the regularly produced articles. Now the

Group is in the process of integrating Lean concept with PP Module of SAP for

controlling the flow.

ISO 9001:2000 CERTIFICATION is awarded to QMS of one of its units and

Group is in the process of getting for other units. Group is having an appointed

MR exclusively for monitoring the Quality System. DNV is the Certifying agency

and auditors of the QMS.

WASTE MANAGEMENT SYSTEM is established in one of their unit and it is a

pilot project. Wastage Identification, handling and disposal are documented and

monitored by frequent internal audits.

WATER MANAGEMENT SYSTEM is existing in the group. Water wastage is

almost nil. Land water is re-cycled in most of their operations.

ISES-2000 norms are followed to ensure the best Social, Health and

Environmental Standards. This standard is monitored by Indo. German Export

Promotion Council of India.

Liberty is the Committee member for setting the standard for Safety Shoes. The

recently released IS: 15298:2000for Safety shoes is followed by Liberty and it is

the first in Shoe Industry have applied for Certification to use ISI Mark.

ENGERGY MANAGEMENT SYSTEM of Liberty is unique in Footwear

Industry. Liberty Units have got lot of incentives / discounts from Haryana State

Electricity Board for maintaining maximum Power Factor.

International Experience:

Liberty has more tl1an25 years of experience in Export Business and enjoying

Status Holder status as "Recognized Export House" of India. In 80's when Soviet

Market was invaded by Indian Exporters, Liberty was the Market Leader in

USSR.

Liberty is having its own office in Russia and Hungary for more than 2 decades.


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Liberty's major operations are mainly with Europe, Middle East, East African,

South African countries and USA.

Major brands of Europe, SALAMANDER, JELA, DEICHMANN, ROMlKA and

USA brands like TODDWELSH are selling only Liberty Shoes under their brand

umbrella.

CONTRIBUTION TO INDUSTRY:

Liberty has pioneered in bringing PU Technology to India. Liberty has given a

presentation on Footwear foot prints for the future in Asia Pacific Customer

Conference 2000 organized by Huntsman Polyurethanes at Singapore on this

technology.

SYMPATEX is a patented technology on Water Proofing recognized world wide.

Liberty is the only company in India having recognition/approval of SYMPATEX

on Waterproofing.

Safety Shoes are brought to Indian Market for the first time and an exclusive

brand WARRIOR was launched by Liberty in Industrial Segment shoes. Our

safety shoes are meeting all DIN/ EN standards in respective segments.

PU technology was introduced to Government Sector, Liberty has set the standard

as member of the BIS Committee. BIS Standard IS: 15298: 2000, applicable for

Safety shoes is the Standard on which Liberty is producing Safety shoes for more

than a decade.

Liberty Enterprises is the model unit for above Standard and complete testing

facility is available only with Liberty in India after FDDI.

Liberty is the First Footwear Manufacturing facility in India awarded with the

latest ISO 9001:2000 Certification.

The first and only footwear Industry in India, having SAP ERP with all modules

related to Inward/ Outward supply chain, Materials, Finance and Costing


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Gharaunda is the first plant of its kind in this part of Asia that is equipped with

Desma machines for PU Direct Injection Moulding. Using PUF technology and Computer

Aided Systems this vertically integrated plant produces Industrial Safety Shoes that are

made to European standards. Sympatex TEX booties as well as ordinary booties are also

made here. Beside these Gharaunda has a design center where an ambitious team of

young designers working in tandem with experienced technologists.

Libertypuram

About 14 km from Kamal this Human tech center, spread across 50 acres of

landscaped greens, has 16 lines for Cement Last Construction footwear, 15 lines for

Direct Injection Moulded footwear and 3 lines for EVA Direct Injection footwear. It is a

manufacturing base for slippers and sandals that put the Chinese sheet slippers to shade,

teenager's shoes with very light PVC soles as well as leather soles, shoes for both sexes as

well as booties for ladies.

Karnal

Liberty's first manufacturing center caters essentially to the domestic market and

produces Cement Last Construction as well as leather sole footwear for both men and

women.

Dehradun

This new Human tech center makes Cement Last Construction footwear as well as

the comfort range of sandals for ladies. It will soon also produce sports shoes for the likes

of Reebok and Nike as well as for the domestic market.


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PERFORMANCE MANAGEMENT

SYSTEM AND EMPLOYEE

WELFARE AT

LIBERTY SHOES LIMITED


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PRESENT EXISTING SYSTEM

LIBERTY considers its employees as the most important asset. The company

ensures the complete satisfaction of the employees so that productivity is maximized.

This is made possible by management by providing healthy climate for individual growth

and development in the company. There is good relationship between employer and

employee.

OBJECTIVES OF PERFORMANCE APPRAISAL:

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

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior

subordinates and management- employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.


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1) ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance of the

employees. This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their contribution to the

organizational goals and objectives. The standards set should be clear, easily

understandable and in measurable terms. In case the performance of the employee cannot

be measured, great care should be taken to describe the standards. KPAs are set for each

employee and they are prioritized. 70% weight age is given to technical skills and 30%

weight age is given to behavioral skills. Behavioral skills expected from employees are

same for all employees. Assessment is done by the head of department.

2) COMMUNICATING THE STANDARDS

Once set, it's the responsibility of the management to communicate the standards

to all the employees of the organization. The employees are informed and the standards

are clearly explained to them. This will help them to understand their roles and to know

what exactly is expected from them. The standards are also communicated to the

appraisers or the evaluators and if required. the standards can also be modified at this

stage itself according to the relevant feedback from the employees or the evaluators


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FORMAT OF PERFORMANCE APPRAISAL FORM

1. Technical KPAs

M.R

E.C.

S.NO. Key Performance

areas & objectives

(K.P.A.s)

Measure

(KPI)

Target Set Target

Achieved

Weightage Week

1

Week

2

Week 3 Week 4 Week

5

%age

Ach.

Amt.

Permissible

Amt.

Qualified

1

2

Total 70

Weightage Excellent

10

Very

Good

8

Good

6

Average

4

Below

Avg.

2


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ii. BEHAVIOURAL KPAs

M.R. Total

Week

Monthly

Inc. Val.

Incentive

4 1100 0.00

S.No. Behavioral Dimensions Weight

age

Week

1

Week

2

Week 3 Week

4

Week 5 Month

Ending %

Amt.

Permissible

Amt.

Qualified1 Initiative taken in solving difficulties

in achieving the objectives.

3.75

2 Creativity had shown in solving

some problems.

3.75

3 Contributions to the building of team

spirit (Through working with others)

3.75

4 Contributions made to the

development of own employees.

3.75

5 Assertive (doesnt yield to deviate

unless supported by genuine reaons)

3.75

6 Sense of responsibility 3.757 Ability to develop system 3.75

8 Problem solving approach 3.759 Any other outstanding (Leave/

Absent)

0.00

Total 30

Weight age Excellent

10

Very

Good

Good

6

Average

4

Below

Avg.


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8 2


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3) MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the

actual performance of the employees that is the work done by the employees during the

specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees

work.

Supervisors/Head of Departments appraise the employees. Given below is the list

of departments in Liberty Shoes Limited and their respective head

S. No. Department Supervisor

1 Excise Mr. Ashok Chawla

2 D & D Mr. Chandresh Sharma

3 H.R. Mr. G. S. Saini

4 P.P.C ( Manual) Mr. Sandeep Kaila

5 Finance Mr. Krishan lal

6 I.S.O (9001:2000) Mr. N. K. Joshi

7 Marketing (Export) Mr. Naresh Sharma

8 Marketing (Dom.) Mr. Amrit Arora

9 EVA Compounding Mr. Pardeep (Vicky)

10 Stores (Upper & Sole) Mr. Pritam Sharma

11 P.P.C (SAP) Mr. Sandeep Kaila

12 EVA Inj. FW Mr. Suresh Kamboj

13 Maintenance Mr. Virender Narwal

14 Material Management Mr. Anil Agarwal

15 PVC Inj. F/W Mr. Suresh Kamboj

17 Cutting Mr. S.S. Yadav

17 Closing Mr. A.J. Chisty

18 Fabrication Mr. Pritam Sharma


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19 Quality Shri N.K. Joshi

20 Stuck-on Mr.. K. Pandey

4) COMPARING THE ACTUAL WITH DESIRED

PERFORMANCE

The actual performance is compared with the desired or the standard performance.

The comparison tells the deviations in the performance of the employees from the

standards set. The result can show the actual performance being more than the desired

performance or, the actual performance being less than the desired performance depicting

a negative deviation in the organizational performance. It includes recalling, evaluating

and analysis of data related to the employees' performance.

5) DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on

one-to-one basis. The focus of this discussion is on communication and listening. The

results, the problems and the possible solutions are discussed with the aim of problem

solving and reaching consensus. The feedback should be given with a positive attitude as

this can have an effect on the employees' future performance. The purpose of the meeting

should be to solve the problems faced and motivate the employees to perform better.

6) DECISION MAKING

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or the

related HR decisions like rewards, promotions, demotions, transfers etc. If the employee's

performance is below desired level then proper training is provided to him.


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KPA BASED COMPENSATION

Average marks obtained in KPA (in %) % of incentive amount achieved

100 To 95 150

94 To 90 125

89 To 85 110

84 To 80 100

79 To 60 80

59 To 50 65

49 Or less 50

The motive of defining such compensation system is that if the individuals areperforming well and maintain as it is then they should get 100 ~ for the same. They

should know their areas of target so that they will improvements/new targets so that they

will reach up to the 150%in coming year. Incentives are quarterly calculated.

EMPLOYEE WELFARE

Welfare includes anything that is done for the comfort and improvement of

employees and is provided over and above the wages. Welfare helps in keeping the

morale and motivation of the employees high so as to retain the employees for longer

duration. The welfare measures need not be in monetary terms only but in any

kind/forms. Employee welfare includes monitoring of working conditions, creation of

industrial harmony through infrastructure for health, industrial relations and insurance

against disease, accident and unemployment for the workers and their families. Labor

welfare entails all those activities of employer which are directed towards providing the

employees with certain facilities and services in addition to wages or salaries. Liberty

provides various welfare services to its employees.

SAFETY HEALTH AND ENVIRONMENT COMMITTEE

Environmental Matters


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(a) To review and monitor the environmental policies and activities of the

Corporation on behalf of the Board so that the Corporation is in compliance with

environmental laws and legislation;

(b) To recommend actions for developing policies, programs and procedures so that

the principles set out in the Corporation's Environmental Policy Statement are

being adhered to and achieved.

(c) To review and report to the Board on the sufficiency of resources available for

carrying out the actions and activities recommended;

(d) To report regularly and on a timely basis to the Board on matters coming before

the Committee relating to environmental policies and activities of the Corporation

for consideration and the manner of disposition; and

(e) To develop a calendar of activities to be undertaken by the Committee for each

ensuing year related to environmental matters and to submit the calendar in the

appropriate format to the Board within a reasonable period of time following each

annual general meeting of shareholders.

Employees' Health and Safety

(a) To review and monitor the health and safety policies and activities of the

Corporation on behalf of the Board so the Corporation is in compliance with

applicable laws, legislation and policies as they relate to the health and safety of

the Corporation's employees in the workplace.

(b) To recommend actions for developing policies, programs and procedures to

ensure that the principles set out in the Corporation's policies related to the health

and safety of its employees in the workplace are being adhered to and achieved.

(c) To review and report to the Board on the sufficiency of resources available for

carrying out the actions and activities recommended;

(d) To report on a timely basis and at least annually to the Board on health and safety


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issues and on the state of compliance with applicable laws and legislation and

adherence to the policies of the Corporation; and

(e) To develop a calendar of activities to be undertaken by the Committee for each

ensuing year related to employees' health and safety and to submit the calendar in

the appropriate format to the Board within a reasonable period of time following

each annual general meeting of shareholders.


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ANTI-SEXUAL HARRASMENT COMMITTEE

Anti-sexual harassment committee is responsible for looking in to any complaints

filed by employees about sexual harassment at the work place. An employee filing a

bonafide harassment complaint shall be protected from reprisals or retaliation as a result

of filing the complaint. Investigators will make every effort to strike a balance between

the parties' desires for privacy and the need to conduct a fair and effective investigation.

Harassment shall subject an employee to disciplinary action up to and including

termination. However, if in fact it is determined through the course of the investigation,

that the incident and thus the accusation were fabricated, the complainant will face severe

disciplinary action up to and including termination.

Complaint and Redressal Mechanism:

Any employee who wants to file a sexual harassment complaint can do by either

sending an email to Anil Sexual Harassment Cell or file written complaint with any

member of the Cell. The complaint should include the specific nature of the incident, date

and place of the incident, names of all parties involved as well as a detailed report of all

pertinent facts. Complaints of harassment will be promptly and carefully investigated.

Investigation will include interview with all relevant persons, including the accused and

other potential witnesses.

TRANSPORT FACILITY

To make employees travel comfortable to and &0 &om work, Liberty provides

transportation to its employees. Liberty has its bus service to different parts of the city.

The company has formulated an optimized vehicle route for the "Pick Up and Drop" of

all employees in the organization

The route facilitate the pickup of maximum number of employees

Separate bus for female employees


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Separate bus for labour and staff.

Records are maintained for in time and out time of vehicles.

The distance to the pick up point for every employee is as less as possible

Vehicles reach each pick up point at specified time.

The distance traveled by every vehicle is optimized

All the employees are required to carry their Id cards while travelling in company

provided vehicles for safety and security reasons.

CANTEEN FACILITY

To provide healthy and hygienic food to employees the company has open a

canteen in its premises from where the employees can get food in subsided cost. The

canteen serves tea/snacks/lunch to the employees as per their needs. The idea is to take

care of their snacks/food requirements within the premises, facilitating their work.

The major conclusion emerging from the study may be summarized as follows:

The organization is very conscious about the welfare of the employees working at

various levels & takes every step to provide more & more facilities to the workers.

There is a statutory liability on the part of employer to provide canteen facilities to

workers. Various eatables are provided to workers on cheap rates. Canteen is

working on no profit no loss.

It is very common that a person cannot work continuously for long period of time,

after a certain period of time he feels need for rest. And it has been found better

results can be obtained as it not only removes the fatigue but also eliminate the

element of monotony and burden.


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Drinking water facility is a pre-requisite of a organization and most of the workers

were satisfied and only little percentage was found to be un-satisfied.

In the organization, first-aid & medical facilities provided to the workers are

excellent. There are well-equipped dispensaries where proper treatment is

provided to workers and their family members.

As for recreational facilities are concerned, there are various types of recreational

facilities which are provided to the workers in the organization like worker's club,

rest house, sports ground etc.

The workers are satisfied with the sanitary conditions facilities provided by the

company.

There are proper provisions for the proper disposal of wastes and effluents and

arrangement of adequate temperature and ventilation in the factory premises.

Regarding relationship between worker and employer, there is an atmosphere of

good harmonious relations which was shared by most of the workers and some

were not sharing good vibes with their superiors.

Thus, we can say that only a contended labor force can prove a right hand to the

employee in achieving organizational activities. And this contended labor force can be

built only when steps are taken for their welfare in every sphere of life. Now company is

aware of this fact and i.e. why it is taking every necessary step which is essential for the

welfare of its employees.


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BIBLIOGRAPHY

Internet sites

www.libertvshoes.com

www.performancemanaqementquide.com

www.humanresources.about.com

www.allbusiness.com

Books

Rao, TV. "Performance Management and Appraisal System",page no.46 to 50, Response

books (2008)

Sahus R K., "Performance Management System",page no. 1 to 28, Excel books (2007)

rj project

Documents