INTRODUCTION

A well-developed performance management system is an essential talent management tool for

high-performing organizations. The discipline covers the aspects of creating a high performance
culture which enables an organization to sustain competitive strategic advantage and exceed the
expectations of all stakeholders. It provides technique for creating an effective performance
management system that clearly defines expectations, helps align employee behavior with
business needs and organizational culture, while bringing visible value addition to the
organization. In addition this discipline delineates performance assessment methodology ,
balance scorecard, and employee performance review mechanisms including performance review
formats, assessment processes and techniques as also tracking.

Performance management delves further into the actions that need to be taken as a direct
consequence of performance review, especially performance coaching, recognition and
managing poor performance, which includes the exit the poor performer. However, this
discipline does not cover training and development which has been assigned to the learning and
development discipline. Other outcomes of performance reviews, which includes compensation,
reward, promotion and incentives, come under the discipline of compensation and reward.

The main objective of human resources management is to make use of the human resources in a
best manner so that targets can be achieved in an effective and efficient manner. For this
purpose/goal managing performance of employees as a whole is very important. Performance
management takes care of this function. Performance management support, develop and
motivate the people at work to give better results. In the present competitive situation the
organization that gives better results can survive, stabilize, grow and excel in the performance. It
helps a lot in achieving the objectives of HRM. Performance management includes activities to
make sure that goals are consistently being met in an effective and efficient manner.
Performance management can focus on performance of the organization, a department, processes
to build a product or service, employees, etc.

EVOLUTION OF PERFORMANCE MANAGEMENT

The term performance management gained its importance from the times when the competitive
pressures in the market place started rising and the organizations felt the need of introducing a
comprehensive performance management process into their system for improving the overall
productivity and performance effectiveness.

The performance management process evolved in several phases.

1) First Phase: The origin of performance management can be traced in the early 1960’s
when the performance appraisal systems were in practice. During this period, Annual
Confidential Reports (ACR’s) which was also known as Employee service
Records were maintained for controlling the behaviors of the employees and these
reports provided substantial information on the performance of the employees.

Any negative comment or a remark in the ESR or ACR used to adversely affect the
prospects of career growth of an employee. The assessments were usually done for ten
traits on a five or a ten point rating scale basis. These traits were job knowledge,
sincerity, dynamism, punctuality, leadership, loyalty, etc. The remarks of these reports
were never communicated to the employees and strict confidentiality was maintained in
the entire process. The employees used to remain in absolute darkness due to the absence
of a transparent mechanism of feedback and communication. This system had suffered
from many drawbacks.

2) Second Phase: This phase continued from late 1960’s till early 1970’s, and the key
hallmark of this phase was that whatever adverse remarks were incorporated in the
performance reports were communicated to the employees so that they could take
corrective actions for overcoming such deficiencies. In this process of appraising the
performance, the reviewing officer used to enjoy a discretionary power of overruling the
ratings given by the reporting officer. The employees usually used to get a formal written
communication on their identified areas of improvements if the rating for any specific
trait used to be below 33%.

3) Third Phase: In this phase the term ACR was replaced by performance appraisal. One of
the key changes that were introduced in this stage was that the employees were permitted
to describe their accomplishments in the confidential performance reports. The
employees were allowed to describe their accomplishments in the self appraisal forms in
the end of a year. Besides inclusion of the traits in the rating scale, several new
components were considered by many organizations which could measure the
productivity and performance of an employee in quantifiable terms such as targets
achieved, etc. Certain organizations also introduced a new section on training needs in
the appraisal form. However, the confidentiality element was still being maintained and
the entire process continued to be control oriented instead of being development oriented.

4) Fourth Phase: This phase started in mid 1970’s and its origin was in India as great
business tycoons like Larsen & Toubro, followed by State Bank of India and many others
introduced appreciable reforms in this field.

In this phase, the appraisal process was more development driven, target based
(performance based), participative and open instead of being treated as a confidential
 process. The system focused on performance planning, review and development of an
employee by following a methodical approach.

In the entire process, the appraisee (employee) and the reporting officer mutually decided
upon the key result areas in the beginning of a year and reviewed it after every six
months. In the review period various issues such as factors affecting the performance,
training needs of an employee, newer targets and also the ratings were discussed with the
appraisee in a collaborative environment.

This phase was a welcoming change in the area of performance management and many
organizations introduced a new HR department for taking care of the developmental
issues of the organization.

5) Fifth Phase: This phase was characterized by maturity in approach of handling people’s
issues. It was more performance driven and emphasis was on development, planning and
improvement. Utmost importance was given to culture building, team appraisals and
quality circles were established for assessing the improvement in the overall employee
productivity.

MEANING OF PERFORMANCE MANAGEMENT

Performance management is defined as a complete process that combine goal setting,

employee development, performance appraisal and rewarding performance into a single common
system.

The aim of performance management is to make sure that employee performance support key
goals of the organization. Thus performance management includes practices through manager’s
(supervisors) work with their employees (subordinates) to define the goals , develop employee
capabilities through training measures and review employee performance in order to reward
performance, all with the ultimate aim of contributing to organizational success.

According to T.V RAO: Performance management associates thinking through various facts of
performance, identifying critical dimensions of performance, planning, reviewing, and
developing and enhancing performance and related competencies.

The role of HR in the present scenario has undergone a sea change and its focus is on evolving
such functional strategies which enable successful implementation of the major corporate
strategies. In a way, HR and corporate strategies function in alignment. Today, HR works
towards facilitating and improving the performance of the employees by building a conducive
work environment and providing maximum opportunities to the employees for participating in
organizational planning and decision making process.
Today, all the major activities of HR are driven towards development of high performance
leaders and fostering employee motivation. So, it can be interpreted that the role of HR has
evolved from merely an appraiser to a facilitator and an enabler.

Performance management is the current buzzword and is the need in the current times of cut
throat competition and the organizational battle for leadership. Performance management is a
much broader and a complicated function of HR, as it encompasses activities such as joint goal
setting, continuous progress review and frequent communication, feedback and coaching for
improved performance, implementation of employee development programmes and rewarding
achievements.

The process of performance management starts with the joining of a new incumbent in a system
and ends when an employee quits the organization.

Performance management can be regarded as a systematic process by which the overall

performance of an organization can be improved by improving the performance of individuals
within a team framework. It is a means for promoting superior performance by communicating
expectations, defining roles within a required competence framework and establishing
achievable benchmarks.

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.

OBJECTIVES OF PERFORMANCE MANAGEMENT

Performance management aims at building a high performance culture for both the individuals
and the teams so that they jointly take the responsibility of improving the business processes on a
continuous basis and at the same time raise the competence bar by upgrading their own skills
within a leadership framework.

Its focus is on enabling goal clarity for making people do the right things in the right time. It
may be said that the main objective of a performance management system is to achieve the
capacity of the employees to the full potential in favor of both the employee and the
organization, by defining the expectations in terms of roles, responsibilities and accountabilities,
required competencies and the expected behaviors.

The main goal of performance management is to ensure that the organization as a system and its
subsystems work together in an integrated fashion for accomplishing optimum results or
outcomes.

The major objectives of performance management are given below:

 Make decisions related to promotion and up-gradation.

 Confirm the services of trainees, probationary employees on completion of requisite
period.
 Assess the training and development needs of the employees.
 Make decisions with regards to salary raise.
 Provide a feedback to employees on their performance, and help them achieve better
performance.
 Use the process to communicate with the employees on overall objectives and goals of
the individual and organization.
 To evaluate the effectiveness of selection, training and transfer decisions.
 In short it has mainly four broad objectives: Developmental, administrative,
organizational maintenance/objectives and documentation of performance.

METHODS OF PERFORMANCE MANAGEMENT

 Rating scale method:

Simplest and most popular technique. Consists of several numerical scales each
representing a job related performance criteria such as output, attendance, attitude,
initiatives, dependability, co-operation,etc. Each scale ranges from excellent to poor. This
method offers the advantages of adaptability, relatively, easy use and low cost. Nearly
every type of job can be evaluated through this method. Large number of employees can
be evaluated in short time.

 Check- list method:

A check list of statements on the traits of employees and the job is prepared. Rater only
does the reporting while actual evaluation of employees is done by HR department. The
economy, ease of administration, limited training of rater, standardization are the
advantages of this method. Disadvantage include biasness, use of personality criteria
instead of performance criteria, misinterpretation of items. When the points/weightage
are allotted to checklist the technique becomes weighted check-list.
 Distribution method:
Operates under an assumption that employees performance level confirms to a normal
statistical distribution. This problem seeks to overcome the problem leniency. The major
weakness lies on the assumption that the employee performance level always confirms to
a normal distribution. The error of central tendency may also occur as a rater resist from
placing an employee in the lowest or in highest rate.

 Forced choice method:

The rater is forced to select statement which are readymade. The rater indicates which
statement is most or least descriptive of the employees. Actual assessment is done by HR
department. The advantage is the absence of personal biasness in the rating. Disadvantage
is that the statement is not properly formed, there by not be precisely descriptive by rater
traits.

 Critical incidence method:

This approach focus on certain critical behaviors of an employee. Advantage is that the
evaluation is based on actual job behavior. This method also reduces the recency traits.
This approach can increase the chances that the subordinate will improve because they
learn more precisely what is expected of them. Disadvantage can be that critical
incidence may be easily forgotten by employees.

 BARS method(behaviorally anchored rating scale):

This method is also called as behavioral acceptance scale. BARS are rating scales whose
scale points are determined by statement of effective and ineffective behavior Rater
indicates which behavior on each scale best describes an employee performance.
 Field review method:
This is the method in which someone outside the rates own department. Usually from
cooperate office or HRD evaluates the performance of an employee. The outsider review
the employee record and hold interviews with the rate and his supervisor. This method is
primilarly used for making promotional decisions at the managerial level. This method is
also useful when comparable information is needed from employees in different units and
 the occasions. Disadvantage is that an outsider is not familiar with the conditions in an
employees work environment which may effect the employees abilities and motivation to
perform.

 Essay method:
This method is extremely useful in filling information gaps about the employees that
often occur in checklist method. The rater must describe the employee with a no. of broad
categories such as raters overall impression of employees performance, promote the job
that the employee is not able or qualified to perform. The strength and weakness of the
employees and the training and development assistance needed by the employee. This
method is most frequently used in combination with other method.

 Ranking method:
The supervisor ranks his/her subordinate in the order of their merit starting from best to
the worst. How and why are not questioned. The method is subject to halo and recency
effect. The advantage include ease of administration and explanation.

 Cost accounting method:

This method evaluate performance from the monitory returns. The employees yields to
his/ her company. This method has vast potential as firms are converting their training
departments into project centers. This particular method requires cost benefit analysis
before hand.

 Performance tests and observation method:

With the limited no. of jobs employee assessment may be based upon a test of knowledge
and skills. The test may be of the paper and pencil variety as a actual demonstration of
skills. This method is use to measure potential more than actual performance. Practicality
may suffer the cost of test, development and administration is high.

PERFORMANCE MANAGEMENT SYSTEM

Performance management system is the heart of any “ people management processes” in
organization. Organizations exist to perform. If properly designed and implemented it can
change the course of growth and pace of impact of organizations. If people do not perform
organization do not survive. If people perform at their level organization can compete and create
waves.

Performance management system enables a business to sustain profitability and performance by

linking the employee’s pay to competency and contribution. It brings all the employees under a
single strategic umbrella.

In the past organizations as well as HR function have wasted a lot of time by wrongly focusing
on performance appraisals rather than performance management.

Effective performance management requires:

 Identifying the parameters of performance and stating very clearly.

 Setting performance standards.
 Planning in participative ways where appropriate performance of all constituents.
 Identifying competencies and competency gaps that contribute hinder to performance.
 Planning performance development activities.
 Creating ownership
 Systematically deciding and communicating what needs to be done(aims, objectives,
priorities and targets)

NEED FOR AN EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM

In the era of cut throat competition and globalization, organizations have realized the importance
of strategic HR practices for gaining a competitive edge over the competitors. A well designed
performance management system can play a crucial role in streamlining the activities of the
employees in an organization for realizing the ultimate corporate mission and vision.
Performance management is a useful tool for aligning all the major organizational functions and
sub functions so that the focus is directed towards attainment of the organizational goal.

Performance management is a much broader system as it is linked with the processes of

planning, implementing, reviewing and evaluating, for augmenting growth and productivity at
both the individual and organizational level.
By clearly defining both individual and team based responsibilities in the form of KRA’s as well
as by creating an understanding of shared mutual accountabilities, a good performance
management system enables, empowers and facilitates the development of staff members.

Managing the performance of the employees is one of the toughest challenges which the
organizations are facing today as this completely depends upon the employee’s commitment,
competence and clarity of performance. If managed efficiently through a well planned reward
practice and feedback mechanism, a performance management system can serve as an important
tool for employee motivation and development. The need for the introduction of a robust system
of performance management was felt during the period when the traditional performance
appraisal mechanism started failing and its limitations were surfacing up. The performance
appraisal system of the earlier period was missing objectivity as the diameters or the parameters
for measuring performance were not clearly specified and the focus was on traits instead on
behaviors or measurable targets. As a result, the employee’s morale and motivation to work was
adversely affected due to an absence of a transparent feedback mechanism and lack of employee
involvement in the entire process of appraisal. A performance management system overcomes
the drawbacks of the traditional performance appraisal system by maintaining a futuristic
approach instead of assessing the past contributions of the employees for evaluating the
performance of the employees.

Performance management is a strategic tool and is holistic in nature as it pervades in every

activity of the organization which is concerned with the management of individual, team and the
overall organizational performance. The process is indispensable and very important for an
organization as it is concerned with establishing a culture in which the individuals and teams can
excel by continuously improving in terms of skill sets and the business processes.

Performance management facilitates improvement of quality of relationship amongst the

members of the organization by encouraging sharing of expectations and building a climate of
openness and mutuality. The significance of performance management has grown in recent times
because most of the organizations are giving a lot of importance to employee development and
talent management. The contemporary organizations are working towards grooming the
competencies of the employees for maintaining a leadership in the competitive market and
performing outstandingly. Arvind Mills of Lalbhai Group, realized the importance of strategic
HRM practices and the implementation of a pro active performance management system in their
organization after facing serious threats from the business competitors. The company created
a Manpower Planning and Resource Group which took the charge of preparing job
descriptions and structuring the jobs for the employees and was responsible for implementing the
recruitment and selection procedures. An innovative online recruitment system was introduced
which was known as Selection Information System, for fixing interviews, generating call
letters, etc. This system was linked with the Compensation Information System and Training
Information System. The training requirements of the employees were taken care by the
Management and Organizational Development Group. The company also introduced MBO
system, for setting smart goals for the employees which may motivate them for a superior
performance.

Performance management has attracted the attention of many organizations and in the near future
its importance will still grow as it will become more integrated with the processes like talent
management, career management, pay based on performance, development and talent
management.

BENEFITS OF PERFORMANCE MANAGEMENT SYSTEM

A good performance management system works towards the improvement of the overall
organizational performance by managing the performances of teams and individuals for ensuring
the achievement of the overall organizational ambitions and goals.

An effective performance management system can play a very crucial role in managing the
performance in an organization by:

 Ensuring that the employees understand the importance of their contributions to the
organizational goals and objectives.

 Ensuring each employee understands what is expected from them and equally
ascertaining whether the employees possess the required skills and support for fulfilling
such expectations.

 Ensuring proper aligning or linking of objectives and facilitating effective

communication throughout the organization.

 Facilitating a cordial and a harmonious relationship between an individual employee and

the line manager based on trust and empowerment.

Performance management practices can have a positive influence on the job satisfaction
and employee loyalty by:

 Regularly providing open and transparent job feedbacks to the employees.

 Establishing a clear linkage between performance and compensation
 Providing ample learning and development opportunities by representing the employees
in leadership development programmes, etc.
 Evaluating performance and distributing incentives and rewards on a fair and equated
basis.
 Establishing clear performance objectives by facilitating an open communication and a
joint dialogue.
 Recognizing and rewarding good performance in an organization.
 Providing maximum opportunities for career growth.

An effectively implemented performance management system can benefit the organization,

managers and employees in several ways as depicted in the table given below:
Organization’s Benefits Improved organizational performance, employee retention and
loyalty, improved productivity, overcoming the barriers to
communication, clear accountabilities, and cost advantages.
Manager’s Benefits Saves time and reduces conflicts, ensures efficiency and
consistency in performance.
Employee’s Benefits Clarifies expectations of the employees, self assessment
opportunities clarifies the job accountabilities and contributes to
improved performance, clearly defines career paths and promotes
job satisfaction.
Clearly defined goals, regular assessments of individual performance and the company wide
requirements can be helpful in defining the corporate competencies and the major skill gaps
which may in turn serve as a useful input for designing the training and development plans for
the employees. A sound performance management system can serve two crucial objectives:

Evaluation Objectives

 By evaluating the readiness of the employees for taking up higher responsibilities.

 By providing a feedback to the employees on their current competencies and the need for
improvement.

 By linking the performance with scope of promotions, incentives, rewards and career
development.

Developmental Objectives

The developmental objective is fulfilled by defining the training requirements of the employees
based on the results of the reviews and diagnosis of the individual and organizational
competencies. Coaching and counseling helps in winning the confidence of the employees and in
improving their performance, besides strengthening the relationship between the superior and the
subordinate.

In a nutshell, performance management serves as an important tool for realizing organizational

goals by implementing competitive HRM strategies. It helps in aligning and integrating the
objectives with the KPI’s in an organization both vertically and horizontally across all job
categories and the levels and thus helps in driving all the activities right from the bottom level
towards one single goal.

OBJECTIVES OF THE STUDY

 To study the process and methods of existing performance management system of the
company.
  To study the effectiveness of performance appraisal and methods in the company.
 To offer valuable suggestions to improve the performance level of employees.
 To support in bridging the gap between current performance and desired one.
 To access the performance level of employees in the company.
 To identify the factors which influence the job satisfaction of employees.

ABOUT COMPANY

Sterling Agro Industries Ltd has flourished under the able leadership of Mr. Kuldeep Saluja
(Managing Director) and Mr. Laxmi Narain (Director Marketing) who have more than 30 years
of experience and expertise to their credit in the field of dairy products.

Sterling Agro Industries Ltd is a name to reckon with in today’s dairy manufacturing industry in
India. A company that associates itself with quality and latest technology, Sterling Agro
Industries Ltd has been marketing high quality dairy products under its brand “NOVA”, which
today has become a trusted name among dairy products. The company is owned and managed by
promoters having over 30 years’ experience in the field of dairy products and have given Sterling
Agro its standing in the competitive markets. Setting standards of excellence in its entire range of
dairy products, Sterling Agro in today considered a class apart even by its competitors. It’s well
known brand NOVA and A ONE is a result of this enterprise, thus creating a league of its own.

Company’s client

Some of the prestigious institutional clients include Nestle, Cadbury, Parle, Dabur, ITC, Glaxo
Smithkline and Unilever. The list of our modern retailer clients includes Big Bazaar, Reliance,
Metro Cash and Carry and Fair Price.

Apart from being a front runner in the domestic market, the company caters to the vast needs of
the quality conscious market in the international arena. Sterling Agro is one of the leading
exporters of dairy products and was awarded recently for outstanding export performance and
contribution in the Dairy sector. Major markets include: Southeast Asia, Africa, Middle East and
Eastern Asia.

Company’s profile

Sterling Agro was launched in the year 1991 with a turnover of 1.8 Crores. Before starting its
first manufacturing unit in 1991, at Kundli (Haryana), the promoters were catering to the need of
various consumers by procuring dairy products from other manufacturers and then distributing
the same by using their wide spread chain of dealers and distributors spread all over the country.
Company’s infrastructure

Sterling Agro Industries Ltd’s workforce is backed by a professional team of skilled and
experienced people. The company has a well equipped in-house production unit with state-of-
the-art machines. Its vast number of inspection instruments help in providing customers with
consistent quality at all times.

Among its state-of-the-art equipments used in the manufacturing units are a lecithination unit for
imparting instant properties to FCMP, a Fluidiser that enables two stage drying of milk powders
to impart agglomeration properties and Auto de-sludging separators for separating fat and solid-
not-fat components of milk. Further, online nitrogen generation and filling is used for packaging
purposes, thereby ensuring that product remain fresh and long lasting in their various packages.

The R and D department anticipates future needs and works upon them keeping the company
miles ahead of others.

Initially, company’s dairy products were launched in State of Haryana. The demand rapidly grew
due to its high quality and sound marketing with ready availability of the product, making he
network spread all over the country. In view of the overwhelming demand, the promoters
established two Greenfield dairy plants at Malanpur ( in Madhya Pradesh) and at Kasaganj (in
Uttar Pradesh).

With the use of sophisticated machinery, the plants are designed to manufacture an expanded
range of dairy products that promise quality and hygiene from start to finish.

Company’s team

Sterling Agro has flourished under dynamic leadership of Mr. Kuldeep Saluja ( managing
director) and Mr. Laxmi Narain Kesarwani ( Chairman). A visionary with the dream of making
the company a well known name, the Managing Director. Mr. Kuldeep Saluja’s expertise in the
dairy field is unbeatable. Spanning 30 years in the industry, his efforts, single minded
determination and zeal to make the company perform its very best has made Sterling Agro what
it is today. With constant innovations, his ideas are highly respected and appreciated by the
industry, especially in the space of process design, product mix and export- related marketing
and price control.

Mr. Laxmi Narain Kesarwani, (Chairman) is a person who belongs to the present decade. A
dynamic leader, Mr. Laxmi Narain Kesarwani has infused new spirit to the company. His
expertise in the industry is based on 35 years of experience, which has made the company
‘customer oriented’. His expertise lies in his strategic approach on marketing and his judgment
of the market trends.

The workforce
Sterling’s workforce is experienced, highly skilled, extensively trained and thoroughly
understands that every single customer deserves the best and nothing but the best. Company’s
brands are supported by a team that has the ability to maintain its reputation on their shoulders
and take it forward to the next level. Company’s team has the up of a company which has been
winning the heart of people by providing them with the best services and leading the way for the
last 17 years.

Company’ policies

Quality policy

The philosophy of Sterling Agro concentrates on the implementation of a well-structured quality

policy. Company’s quality policy is to provide company’s customers with dairy products, which
are safe, produced under stringent hygienic procedures and which in all respects with customer
specifications and all international legal requirements. Each member of the staff working in
production, packaging, storage and distribution are thoroughly trained in food hygiene standards.
Managers, supervisors and operators receive full training to carry out quality tests at regular
intervals. Company’s dairy animals healthy and free of infections. Company’s success hinges on
company’s capacity to serve those who buy company’s products. Company continually strives to
institute a climate of confidence, credibility, and satisfaction with company’s customers by
providing the highest quality dairy products which cultivates repeat business.

Safety policy

The safety of company ’dairy products is assured through regular reviews and quality control in
accordance with the Prevention of Food Adulteration Act of India. Sterling Agro does not
employ artificial means of production or use synthetics in producing any of its products. Priority
is given to identification and taking corrective actions for perceivable risks with the aim of
preventing accidents and production safety. Apart from this, company’ products are checked for
bacteriological tests such as standards plate count, coliform and bacterial spore counts, chemical
tests such as tests for fat%, SNF%, protein and tests for adulterants such as preservatives,
neutralizer and urea.

Environmental policy

Sterling Agro, are fully aware of the importance of a safe and healthy environment and
company’s environmental policy ensures that products are manufactured in harmony with nature.
Some of the initiatives to ensure the same have been installation of a Windmill in Maharashtra
for pollution free electricity and a water RO plant which treats all waster water produced at our
Malanpur plant.

Company’ financials
Sterling Agro has flourished under the able leadership of Mr. Kuldeeep Saluja ( Managing
Director) and Mr. Laxmi Narain ( Chairmen) who have more than 30 years of experience and
expertise to their credit in the field of their products. The company was launched in the year
1991 with a turnover of 1.8 crores. Gradually the company grew by leaps and bounds reaching a
record high Rs. 714 crores by, thereby registering a very impressive compounded annual growth
of 37 percent.

Company’ certifications

Sterling Agro is the first company in North India to get approval for exports of its dairy products
from the Export Inspection Council, India. The plants at Kasganj and Malanpur are awarded with
ISO 9001-2000 and HACCP certification. Moreover, the plant at Malanpur will be soon certified
with ISO 22000:2005. Further, under the EIA guidelines, the manufacturing plants are inspected,
surveyed and audited by the EIA (Export Inspection Council) to ensure and validate the
authenticity and the purity of its manufactured goods. Also, the HALAL Certification has been
issued by the Shahi Masjid, Fatehpuri in New Delhi which is must for Muslim and Arabic
nations, where a range of Sterling Agro’ s products are being exported.

Awards

“The prestigious “Export Excellence Award” for Export of Dairy Products (Golden Trophy) for
the year 2007-2008 & 2008-2009, by APEDA (Export Body of Government of India). The
company has achieved an export turnover of INR 301.82 crores (USD62.70 million) for the years
mentioned. The award was presented by Hon’ble Minister of Commerce and Industries, Govt of
India, Mr. Anand Sharma.”

NOVA products

 Milk
 Ghee
 Dairy whitener / Dairy Creamer
 Skimmed Milk Powder
 Butter
 Butter Milk Powder
 Butter Oil / AMF
 Paneer
 Dahi
  Lassi and Chach

Spirit of NOVA

Company’s value

 For more than 15 years, sterling agro has provided high- quality dairy products to meet
daily nutritional needs of company’s trusting consumers. Although company’s products
speak for themselves company is perpetually striving to maintain high standards in
production, packaging, storage and transportation of company’s dairy products.
 Company’s customer satisfaction and trust give the required impetus to keep achieving
new hallmarks and come up with best dairy products.

Company’s mission

 To offer excellent high quality products, thereby fulfilling customer expectations, with
company superior quality and technical expertise.
 Keep surpassing company’ own goal, keeping company’s value intact.
 Expand company’s business without putting a strain on company’s environment and
without compromising on company’s ethics.
 Learn from the past, appreciate the present, and work for the future.

Company’s objectives

 The fundamental objective of every enterprise is to grow and serve a large consumer base
better. Since company’s inception, all our strides have been growth oriented.
 Company believes that one of the most important measures of company success is
profitability. Profits allow the company to strengthen and enhance the dairy products
industry, to support the rural dairy farmers, to consolidate the capital required for growth
and to validate our belief and practices.
 Company’s objective is to perpetually seek opportunities for growth so that company can
make unique and valuable contribution to the society and environment.

PERFORMANCE MANAGEMENT IN STERLING AGRO INDUSTRIES

LTD
 According to the employees in the sterling agro industries ltd performance management in
their company always helps in translating strategy into outcome. For measuring their
performance ranking method is being used and it is being done on half yearly basis. Most of
the employees feel that performance management is a means of getting better results with an
agreed framework of planned goals and objectives. Employees of this company feel that
performance management always help them to get motivated to work under hard condition.
Feedback and incentives always help them in increasing the performance of employees in
the organization. Weightages are being given to employees against each activity that they
are supposed to perform in the specified period by performance management system.
Promotion is always based on performance management system and also employees are
satisfied with the growth opportunity in the company. Performance management helps to
develop employees skills to work in a team.
The immediate supervisor deals with all employees fairly. The company provides counseling
after the appraisal to the employees. According to the employees of the company absence of
performance management in an organization will lead the organization to a big failure. And
according to the employees, performance management involved in every single activity in
the organization.
In sterling agro industries ltd middle level management sets the performance goals/
requirements for individuals. Employees are given sufficient freedom and support from
managers to organize work tasks and objectives.

QUESTIONAIRE

PERSONAL DETAILS:

NAME:

AGE:

GENDER:

1. Do you think that performance management in your organizations helps in translating

strategy into outcome?
a) Always
b) Sometimes
 c) Often
d) Rarely
e) Never

2. How often the performance appraisal form is filled or performance management is done?
a) Monthly
b) Half yearly
c) Annually
d) Not fixed

3. Do you feel that performance management is a means of getting better result with an
agreed framework of planned goals and objectives?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

4. Do you feel that performance management helps you to get motivated to work under hard
condition?
a) Always
b) Sometimes
c) Often
d) Rarely
e) Never

5. Does feedback and incentives helps to increase the performance of employees in the
organization?
a) Always
b) Sometimes
c) Often
d) Rarely
e) Never

6. Are you satisfied with the weightages given against each activity that you are suppose to
performs in the specified period by performance management system?
a) Strongly agree
b) Agree
c) Indifferent
 d) Disagree
e) Strongly disagree

7. Is the promotion strictly based on performance management system?

a) Always
b) Sometimes
c) Often
d) Rarely
e) Never

8. Does your immediate supervisor deals with all employees fairly?

a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

9. Does performance management helps you to improve job satisfaction?

a) Always
b) Sometimes
c) Often
d) Rarely
e) Never

10. Are you satisfied with the growth opportunity in the company?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

11. Does the organization provide counseling after the appraisal?

a) Always
b) Sometimes
c) Often
d) Rarely
e) Never
12. Do you think that performance management helps you to recognize your maximum
potential?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

13. Does performance management in your organization used a tool to differentiate

performance?
a) Always
b) Sometimes
c) Often
d) Rarely
e) Never

14. Do you feel that performance management helps to develop your skills to work in a
team?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

15. Do you think that the absence of performance management in an organization will lead
the organization to a big failure?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

16. Does performance management involved in every single activity in your organization?
a) Always
b) Sometimes
c) Often
d) Rarely
 e) Never

17. Who sets the performance goals/ requirements for individuals?

a) Top level management
b) Middle level management
c) Lower level management

18. Are you given sufficient freedom and support from managers to organize work tasks
and objectives?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

19. Does performance management helps to change the culture of your organization?
a) Strongly agree
b) Agree
c) Indifferent
d) Disagree
e) Strongly disagree

20. What are the techniques that are used in your organization for assessing performance?

a) Observation
b) Assessment & development centers
c) Checklist
d) Rating scale
e) Written essay method
f) Graphical rating scales
g) Ranking method