In the current scenario organizations all over the world are under tremendous pressure for the improving their performance for survival and growth due to increasing competition. One such source of improving is “technology” and the other is “human system” existing in the organization. Today the world is shrinking and hence, more and more organization has an easy access to sophisticated technology due to relatively easy availability and transfer availability of technology. Thus the source of improvement i.e. the ‘human system’ that will differentiate a successful organization from unsuccessful one. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job. Traditionally most of the organizations are turned to computerized performance appraisal system and acquired good results. Staff appraisal gained increased importance as a contributor to success of many organizations. It helps in categorizing the performing and non-performing candidates. It properly describes a process of judging past performance and not measuring the performance against clear and agreed objectives.Hence performance management system came into existence and shifts the focus away from just an annual event to an on-going process.In contrasting Performance Appraisal with Performance Management, it suggests that performance appraisals are indeed an evaluation of an employees work. However, Performance Management reflects the continuous nature of performance improvement and employee development, recognizing the importance of effective management, work systems and team contributions.
Consequently, many organizations are revising their existing appraisal schemes and introducing performance management system for all the employees. Performance Management System enables a business to sustain profitability and performance by linking the employees' pay to competency and contribution. It provides opportunities for concerted personal development and career growth and now the system tending towards openness, dialogue and performance, rather than personality.
The study done on “Performance management” focuses on the aim, elements and benefits of the system as observed.
The main aim of this is to carry out an analytical study of Performance Management System followed in L&T-ECC Division, B&F, Operating Company and analysis of data and makes suitable suggestions.
1.2Theoretical background for Performance Management System Performance Management is a formal and explicit process whereby an organization involves its employees, both as individual and members of a team, in improving overall effectiveness, and the accomplishment of its strategic goals. It is focused on achieving results, and may be seen as a vehicle for aligning individual employee performance with organizational strategy.
The objective of Performance management...