Abdur Rahim (13 MGT 012)
Abdur Rahim (13 MGT 012)
Abdur Rahim (13 MGT 012)
ON
An Internship Report Presented to the Faculty of Business Studies in Partial Fulfilment of the
Requirement for the Degree of Bachelor of Business Administration
Submitted By
Exam Roll: MGT-004/8 (Class Roll: 13 MGT- 012)
Session: 2016-17 (Admission: 2013-14)
Department of Management Studies
University of Barisal
Supervised To
Abdullah Al Masud
Assistant Professor
Department of Management Studies
University of Barisal
Dear Sir,
I have completed my three months internship period at Amrita Consumer Food Products Ltd.
And would like to submit my internship report on “The Effects of Performance Management
System on Employee Performance of Amrita Consumers Food Products Ltd.: A Study on
Southern Part of Bangladesh.” as per your specifications. In Preparing this report, I have tried
almost to include all the relevant information and analysis to make the report comprehensive as
well as workable one, and in doing so have tried my utmost to live up to your standards. I will be
very much glad to hear from you for further clarification.
May I, Therefore, wish and hope that you would be gracious enough to accept my effort and
oblige thereby.
Yours Sincerely,
…………………………………………..
Abdur Rahim
ii
LETTER OF ENDORSEMENT
The Internship Affiliation Report entitle on “The Effects of Performance Management System
on Employee Performance of Amrita Consumers Food Products Ltd.: A Study on Southern
Part of Bangladesh.” has been submitted to the Office of Placement & Alumni, in partial
fulfillment of the requirements for the degree of Bachelor of Business Administration, Major in
Management Studies, Faculty of Business Administration by Abdur Rahim, Exam Roll: MGT
004/8. The report has been accepted and may be presented to the Internship Defense Committee
for evaluation.
(Any opinions, suggestions made in this report are entirely that of the author of the report. The
University does not condone nor reject any of these opinions or suggestions).
----------------------------------------------------
Abdullah Al Masud
Assistant Professor
University of Barisal
iii
STUDENTS DECLARATION
I, Abdur Rahim bearing Class Roll 13 MGT-012, BBA Program, a student of Department of
Management Studies, University of Barisal, would like to declare here the declaration of an
Internship Report on “The Effects of Performance Management System on Employee
Performance of Amrita Consumers Food Products Ltd.: A Study on Southern Part of
Bangladesh.” of Amrita Consumer Food Products Ltd. which I have not submitted for any other
degree before.
....................................................
Abdur Rahim
iv
ACKNOWLEDGEMENT
At the very beginning, I would like to express my deepest gratitude to almighty ALLAH for
giving me strength and aptitude to finish the report within the time.
It was a great opportunity for me to complete my internship program at Amrita Consumer Food
Products Ltd. I am also very grateful to head of marketing, regional sales manager, territory
sales manager and other officers for their great support.
I am fortunate for the aid and encouragement I have received from all of my teachers and friends
and students of Barisal University.
----------------------------------------
Abdur Rahim
v
Table of Contents
LETTER OF TRANSMITTAL.......................................................................................................ii
LETTER OF ENDORSEMENT....................................................................................................iii
STUDENTS DECLARATION......................................................................................................iv
ACKNOWLEDGEMENT...............................................................................................................v
CHAPTER: ONE.............................................................................................................................1
1.1 Introduction:......................................................................................................................1
1.2 Origin of the Study:...........................................................................................................2
1.3 Objective of the study:......................................................................................................2
1.4 Methodology of the Study:...............................................................................................3
1.5 Scope of the Study:...........................................................................................................4
1.6 Significance of the Study:.................................................................................................4
1.7 Limitations of the Study:...................................................................................................4
1.8 Report Layout:..................................................................................................................5
1.9 Report Framework............................................................................................................6
CHAPTER: TWO............................................................................................................................8
2.1. Literature Review of the Study.........................................................................................8
CHAPTER: THREE......................................................................................................................10
3.1. Beginning History of Amrita Consumer Food Products Ltd.:........................................10
3.2. Corporate Information:...................................................................................................11
3.3. Products of Amrita Consumer Food Products Ltd.:........................................................12
3.4. Mission, Vision and Other Strategies of the Company:..................................................13
3.5. Hierarchy of Organizational Authority of ACFPL:........................................................15
CHAPTER: FOUR........................................................................................................................17
4.1. Performance Management System:................................................................................17
4.2. Performance Appraisal and Employee Productivity:......................................................18
4.3. Training and Development and Employee Productivity:................................................19
4.4. Rewarding Systems and Employee Productivity:...........................................................20
4.5. On-going Feedback & Coaching and Employee Performance:......................................21
CHAPTER: FIVE..........................................................................................................................22
5.1. Hypotheses Development and Data Analysis:................................................................22
5.2. Data Analysis by SPSS:..................................................................................................26
5.3. Reliability Analysis of Factors........................................................................................27
5.4. General Profile of Respondents:.....................................................................................27
5.5. Descriptive Statistics Analysis:.......................................................................................29
5.6. Hypotheses Development:..............................................................................................30
5.7. Testing Hypotheses:........................................................................................................31
5.8. Output of Hypotheses......................................................................................................37
CHAPTER: SIX.............................................................................................................................38
6.1 Findings:..........................................................................................................................38
6.2 Recommendations:..........................................................................................................39
6.3 Conclusion:.....................................................................................................................39
References:....................................................................................................................................41
Appendix:......................................................................................................................................45
List of Tables
Table 1: Corporate Information.....................................................................................................11
Table 2: Products of Amrita Consumer Food Products Ltd..........................................................12
Table 3: Reliability Analysis of Factors........................................................................................27
Table 4: Gender of Respondents....................................................................................................27
Table 5: Age of Respondent..........................................................................................................28
Table 6: Educational Level of Respondents..................................................................................28
Table 7:Marital Status of Respondents..........................................................................................28
Table 8: Work Experience of Respondents...................................................................................28
Table 9: Salary Package of Respondents.......................................................................................29
Table 10: Model Summary of Feedback & Coaching...................................................................31
Table 11: Coefficient of Feedback & Coaching............................................................................31
Table 12: ANOVA of Feedback & Coaching................................................................................32
Table 13: Model Summary of Training & Development..............................................................32
Table 14 : Coefficient of Training & Development......................................................................33
Table 15: ANOVA of Training & Development...........................................................................33
Table 16: Model Summary of Performance Appraisal..................................................................34
Table 17: Coefficient of Performance Appraisal...........................................................................34
Table 18: ANOVA of Performance Appraisal..............................................................................35
Table 19: Model Summary of Rewarding System........................................................................35
Table 20: Coefficient of Rewarding System.................................................................................35
Table 21: ANOVA of Rewarding System.....................................................................................36
Table 22: Output of Hypotheses....................................................................................................37
List of Figures
Figure 1: Report Layout..............................................................................................................................5
Figure 2: Report Framework.......................................................................................................................6
Figure 3: Hierarchy of Organizational Authority of ACFPL.....................................................................15
Figure 4:Conceptual Framework...............................................................................................................25
Executive Summary
The purpose of the study was to determine the influence of performance management (PM) on
employee productivity in the Amrita Consumer Food Products Ltd. The study was conducted at
the Amrita Consumer Food Products Ltd with the main aim of determining the influence of PM
on employee productivity. More specifically, the study sought to determine the extent to which
performance appraisal, explore the extent to which training and development and determine the
extent to which rewarding systems and contrast the extent to which feedback and coaching
influence on employee productivity in Amrita Consumer Food Products Ltd. In order to test four
(04) hypothesis and achieve the objectives of this research structured questionnaire had been
applied to gather primary data for analysis and interpretation. However, this questionnaire is
composed of 30 questions that personate all the variables of this paper. In this study as a
researcher had been developed research tool that comprises of five-point Likert Scale question
(where 1= Strongly Agree, 2= Agree, = Not Sure, 4= Disagree, 5= Strongly Disagree) to gather
the respondents view of a few important issues. However, a random sample (n=61) was selected
with 75 questionnaire that were distributed and back to ensure high response from staffs of
ACFPL including general workers, Marketing Managers, HR managers and other managers. The
analysis of data is divided into three main section; Descriptive Statistics (Mean, Standard
deviation, Standard error mean,); Inferential Statistics (Reliability test,); Structural Model (t-
value, p-value, Coefficient value) to find the linkage between PMS practice and selected
outcomes by using SPSS (Statistical Package for Social Science)-16. Tables were used to present
the findings. The research concludes the result of the data analysis reveal that PMS (F&C:
β= .280, t= 2.237, p= .029. T&D: β= .522, t= 4.696, p= .000. PA: β= .230, t=1.814, p= .075. RS:
β= 068, t=.525, p=.601) have a significant influence on its selected outcomes. As a result, it is
recommended by the researcher that study also brought about the emphasis on the presence and
appearance of PMS internal experts within the organizations which helps to improve the
implementation of effective PMS practices. The project title for the internship report is
Performance Management System and its impact with selected outcomes. The report starts with
an organization profile of Amrita Consumer Food Products giving its background, mission,
vision, its products and services, the hierarchy and organ gram of the organization. The project
encompasses introduction to the topic, training & development, coaching & feedback, rewarding
system, training and development. During my internship I gained practical knowledge on how
the human resource division of an organization as big as ACFPL operates and coordinates its
activities to ensure smooth functioning of the organization at all levels by ensuring right number
of people are available at the right time to do the right job. It was found that factors like
Feedback & Coaching gives recognition for good performance hence improved employee
productivity. From the analysis it was also found that there is a strong relationship between
training & development and employee performance. The dimension of training & development
of PMS has significantly impact on employee performance. The study concluded that there are
no links between performance appraisal and employee performance as indicated. Performance
appraisal doesn’t give recognition for good performance. According to this research analysis
there is no significant relation between rewarding systems and employee performance. This
study therefore recommends that ACFPL should modify its performance appraisal system.
Performance appraisal should be fair to all employees supervised. It also recommends that the
rewarding systems also need to change to improve the effectiveness of the performance of
employee
CHAPTER: ONE
INTRODUCTION
1.1 Introduction:
Global businesses are operating in the midst of challenging times. An organization today, in
order to be profitable and ahead of its peers, needs to compete in more markets, operate across
more platforms and manage more stakeholders than ever before (Beckons). One of the important
elements in the organizational orderliness of human resource management is performance
management (Zulystiawati, Vol.3, No.4, 2014). Given our 100-year perspective, the history of
research on performance management is much more limited than that for performance appraisal.
Even the term “performance management” is much more recent, and so there is much less
history to describe (DeNisi & Murphy, 2017,). This research has been focused on improving the
performance of individuals, however, and the ultimate goal of performance management systems
is to improve firm-level performance. Possible Outcomes from Effective Performance
Management: clarifying job responsibilities and expectations, enhancing individual and group
productivity, developing employee capabilities to their fullest extent through effective feedback
and coaching, driving behavior to align with the organization’s core values, goals and strategy
(Pulakos E. D). Performance management systems cause strategic evolution and ensures goal
congruence (Chan, 2004), since enterprises need to fix strategies for success, establish goals,
execute activities by making proper decisions and monitor their resulting states as the business
processes move towards their goals (Khourshed, 2012 ). In simple terms performance
management includes everything that is done to enhance employees’ performance
(R.G.Ratnawat & P.C.Jha, March-2013). Performance management is regarded as the ―Achilles
Heel of human capital management and it is the most difficult system to implement in
organization (Pulakos E. D., 2009, p. 3). It should thus be managers’ top priority (Almothaseb,
Almahameed, & Tobeery, June 2017). Performance management system can focus on the
performance of an organization, a department, employee, or even the processes to build a
product or service, as well as many other areas (Gudla & Veni, 2012). Organizations need to be
aware of face more realistically towards keeping their human resources up-to-date. In so doing,
managers need to pay special attention to all the core functions of human resource management
(Nassazi, 2013), and performance management is one of them. Organizations have moved from
mid-year and end of year reviews to seeing PM as an ongoing process, only one component of
which is the implementation of discrete, formal performance feedback sessions (lLondon &
W.Smither, 14 December 2001). Expanding beyond the traditional annual performance re-view,
ongoing growth (or maintenance of good performance) has become a primary concern and places
individual performance more broadly in the context of organizational performance (Kline &
Carr, 2016).
1
Amrita Consumers Food Products Ltd is a leading food manufacturing company in the southern
part of Bangladesh. ACFPL is trying to do something for the proper performance management
system & improvement of the employee as well as stakeholders. Performance management
system is designed and implemented in such a way that human capital plays a significant role in
achieving the goals of the organization as well as impacts the employee’s performance.
A) Primary objective:
B) Specific objectives:
2
1.4 Methodology of the Study:
The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interviews, surveys and other research
techniques, and could include both present and historical information (businessdictionary).
Source of Information: In order to make the report more meaningful and presentable, two
sources of data and information have been used widely.
A) Primary Source:
It refers the source from which I collected the raw data. The sources are as follows: -
B) Secondary Source:
Type of report: This report is a qualitative descriptive research study that reveals several issues
about the talent acquisition practices of ACFPL.
Target population
The research population is a most important part of the research design as it is a research
population that answers the research problem (Bryman & Bell, 2011) The number of employees
used to decide whether the organization is large or small. If the employees are more than 100, it
is considered as large organization (Shikha, MAY 2014). Targeted population of this research
was 75 employees. Finally, 61 samples were selected for analysis.
Research Design
According to Creswell and Plano Clark (2011), a research design fundamentally assists
researchers to draw the limitations of the study, its setting, type of scrutiny, unit of analysis and
other associated study concerns (Mahesar, 2015). Yin (2009) also describes that research design
3
is an important part of reliable and valid investigation. Furthermore, it as a plan of the research
project to investigate and obtain the answers to the developed research questions
Shortage of adequate time of internship is only 3 months. So, I haven’t enough time to
collect broad idea about performance management system.
The information gathered for the report was not sufficient.
The sample size was not so large considering the size of population.
Some of the employee and worker were not friendly to fill-up the questionnaire and also
hesitating.
Confidential documents or objects to the company were not available to access.
4
As internship is the practical experience, it is not possible to know everything about the
ACFPL.
This report has six chapters. In the first chapter I give an introduction to this report. The first
chapter of introduction includes introduction of the study, origin of the study, objectives of the
study, methodology of the study, scope of the study, significance of the study, limitations of the
study, report layout and report framework. The second chapter covers literature review of the
study. The third chapter describes about company’s overview. The fourth chapter deals with
different dimensions and practices of performance management system. The fifth chapter gives a
detail how the data was analyzed. And the last chapter of this report includes findings,
recommendations and conclusions.
5
1.9 Report Framework
Background
Choose Sample
Propose Hypothesis
Choose Variables
Regression Analysis
Conclusion
6
This report first gives a definition abbot PMS and then divides into two branches like conceptual
framework and different dimensions of PMS. After combining these two branches, I choose the
sample and my selected samples are 61 staffs. Based on the theoretical and conceptual
framework I develop four hypotheses. There are two variables one is dependent another
independent. For analyzing the data by SPSS, I build a regression model. Based on model I use
regression analysis for getting outputs. And finally give a conclusion based on analysis.
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CHAPTER: TWO
Literature Review of The Study
2.1.Literature Review of the Study
The idea of Performance Management System (PMS) constitutes one of the important and
positive developments that have gained momentum in the domain of Human Resource
Management (HRM) recently (Armstrong, 1994, P.01). Performance management (PM) includes
activities which ensure that goals are consistently being met in an effective and efficient manner.
Performance management potentially makes the most significant contribution to individual and
organizational learning and helps to raise organizational efficiency and promote growth
(Adhikari, 2010). Performance management has to be the core of all organizations since it gives
strategic direction and how resources are going to be distributed towards the achievement of set
goals and objectives. Performance management is a tool meant to improve performance and
productivity and it is yet to be fully institutionalized as the way of doing business. Effective
performance management in the public service requires specific tools and deliberate measures
(Olufemi). The aim of performance management is to improve service delivery through effective
and efficient application of resources (Zvavahera). At the very outset, it is worthwhile to point
out that there is nothing new in the concept of PMS as its origin can be traced back as early as
221-265 AD (Assish, March 2018). The essence of management as a set of complex procedures
and activities is influencing on a particular system in order to change the system towards
achieving defined development objectives (Tomić, Tadić, & Sedlak, November 2016.).
Performance measurement system, as stated by Nelly et al. (2003), relates to the use of
multidimensional set of indicators (financial, non-financial, internal, and external). The role of
performance measurement system as a subsystem is identified as part of the strategic
performance management, whereby the performance management system is responsible for the
implementation process (Rastislav & Petra, September 2016). The literature on performance
measurement has shown that Strategic Performance Measurement Systems can have a significant
impact on business results (Bento, Bento, & White, 2014). The world of business environments
in modern economies and cities has changed dramatically the way of pursuing business and
depends nowadays heavily on the performance in generating and utilizing new knowledge,
imagination, creativity, innovations and technologies (Kourtit, Nijkamp, Stough, & Roger,
2011). Traditional business performance management based only on the basis of financial
performance must be supplemented and confronted with the methods and models for strategic
business performance management (Zamecnik & Rajnoha, 2015). Performance measurement
system has undergone for several stages into its present form (Lesníková, Rajnoha, & Korauš,
March, 2016). One of the major challenges facing many countries has been the need to improve
the performance of employees. Therefore, the performance management system came into effect
as a management reform to address and redress concerns, organizations had about performance
(Bulawa, 2012). PM is one of the few management techniques which have been proven to
8
actually help organizations improve their results (Waal & Counet, August 2008). The
performance management system is an integral part of an organization to measure, motivate, and
improve the performance of the entire organization. It also helps to focus on the goals of the
organization towards specific predetermined objectives for an organizational culture. The
companies must identify and develop unique retention strategies to retain the employees. An
established formal communication networking with an informal focus would give the
organizations an additional competitive advantage (Kumari, Dec, 2016). The success of any
organization depends on the quality and characteristics of its employees. Performance
management system increases the quality of employees (Liza Estino, 2012). The most important
concern in designing a performance management system is its fit with the organization’s
strategic objectives. Moreover, the most concern in providing performance-related feedback is its
fit with the organization’s culture. There are some companies that decided to do away with
formal performance feedback entirely. Instead, they opted for a system that provides continuous
dialogue on performance-related matters (Asad & Mahfod, 2015,). It provides input into
important decisions such as promotions, transfers, terminations, rewards, etc. (Asad & Mahfod,
2015,). An organization faces five strategic decisions in establishing its performance
management system. Present this concept as follows: determination of the purpose, appropriate
rewards and compensation, enhanced employee motivation, link with compensation, individual
or team evaluation process, evaluation through measurements, legal compliance (Mello, 2006).
For different companies, performance measurement systems (PMS) play a particularly important
role in operations and in business strategy implementation. A PMS provides the requisite
information for the monitor, control, evaluation, and feedback functions for operations
management. In addition, it can also become a driver for motivation, management action,
continuous improvement, and the achievement of strategic objectives. Indeed, a successful PMS
can provide a proactive guide for operations and strategic management (Kloviene & Edita, 2009)
Performance management system as an open system could be defined as functional, continuously
improving subsystem of organization’s management system which covers three dimensions of
performance evaluation (measurement, analysis / control, planning / decision making) and leads
to adaptability of an organization in business environment (Valanciene & Gimzauskiene, 2009).
To face the challenging environment that continues to change dramatically, public organizations
may fail to improve the efficiency and effectiveness of organizations when introducing
performance management of private sectors (Lin & Lee, 2011 ).
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CHAPTER: THREE
OVERVIEW OF THE COMPANY
3.1.Beginning History of Amrita Consumer Food Products Ltd.:
Amrita Consumer Food Products Ltd. is founded in 1948 in Barisal, the Venice of Bengal, by the
great philanthropist Amrita Lal Dey, the organization flourished from a tiny personal initiative to
its present-day grand status and reputation due to the honesty, sincerity, integrity and devotion of
the founder. Now it stands as one of the famous enterprises of the country employing a large
work force and drawing much of good will from the common masses while contributing a lot to
the economic development of the land.
In 1988 Amrita Oil & Food Products set sail as a sister concern and began its journey along the
path of food items production which received well responses from the customers. Production of
international standard and quality food products like powdered spices, mixed spices, noodles,
vermicelli, snacks etc. saw the light of the day with particularity in terms of taste, flavor and
texture. Side by side with expanding local market the company is looking for space in the foreign
market which would enable earning of hard foreign currency that might contribute to the
advancement of the national economy and also enhance employment opportunities. The ultimate
goals of our company: Continue the production and marketing of hygienic and quality food at
minimum price.
Finding out the needs of consumers’ and provide them with the products aspire after. Explore
new segments of internal market and place products in the international market. Maintaining the
goodwill of the company by serving intrinsic quality of hygienic food products with authentic
taste is main concern. Carrying on efforts to expand market globally and set up distribution
network so as to make products available at doorsteps of customers.
The Company believes that the consumers do always have the right to expect safer as well as
tasty foods. It is, therefore, trying to provide them with quality foods in keeping with everyday
changing tastes. The initiative for that was taken by the great patron and one of the country’s
biggest charity donors Amrita Lal Dey. With due respect to him the Company is going to launch
Amrita Consumer Food Products Ltd. under Amrita Oil & Food Products at Amrita Lal Dey
Road, Barisal. The Company deems to make it clear in unambiguous terms that its firm
commitment was, is and shall be to walk with the ever-changing tastes and aspirations of the
consumers and it shall spare no pains to satisfy them with innovative and unadulterated food
materials. The Company is aware of customers’ health & hygiene and hope that all its efforts
taken in view of its everlasting attitude towards customers’ welfare shall go a long way to
maintain and enhance its glories.
10
3.2.Corporate Information:
Logo
11
3.3.Products of Amrita Consumer Food Products Ltd.:
12
3.4.Mission, Vision and Other Strategies of the Company:
The world is changing all around us. To continue to thrive as a business over the next years and
beyond, they look ahead, understand the trends and forces that will shape their business in the
future and move swiftly to prepare for what's to come. They have got ready for tomorrow today.
It creates a long-term destination for their business and provides us with a "Roadmap" for
winning together with their bottling partners.
A) Vision:
To export food products as one of the best foods & beverages companies in all over the
world.
B) Mission:
To be recognized as top leading food & beverage company in Bangladesh by
delivering higher quality food products with craving for customers.
To operate at the highest levels of ethics & compliance.
To act with honesty, sincerity, fairness and integrity.
Their values serve as a compass for our actions and describe how they behave in Bangladesh.
E) Work Smart:
13
Remain responsive to change.
Have the courage to change course when needed.
Remain constructively discontent.
Work efficiently.
F) Be the Brand:
14
3.5.Hierarchy of Organizational Authority of ACFPL:
Amrita Consumer Food Products Ltd. is a small company in consumer sector of the country. It
has 11 depots throughout the country. The Head Office of the bank is located at 9/1, A.C. Roy
Road Armanitola, Dhaka-1100. All the activities are operated by Barisal office that is located at
119, Amrita Lal Dey Road (Hospital Road) Barisal-8200, Bangladesh. The managing activities
are done by the following way:
Chairman
Managing Director
Deputy Managing
Director
Director
15
Chairman:
The chief of Amrita Consumer Food Products Ltd. is Chairman. This rank is occupied by the
most senior/eldest and respected person of Amrita Lal Dey’s family.
Managing Director:
This post is also occupied by a family member of Amrita Lal Dey and this is the second highest
post of this company. In the absence of Chairman, MD performs the job responsibility of
Chairman.
DMD is the third highest post of this company. He jointly works with MD and Director formally
and takes part in all managing decisions.
Director:
Director has the direct supervision over all the departmental heads. He takes part in all strategic
decisions. All of these four posts are family post and occupied by the relatively elder members.
Departmental Heads:
There are six departments in Amrita Consumer Food Products Ltd. Every department’s activities
are smoothly operated by the supervision of the departmental head. They are responsible for
running or operating of their departments in proper way.
16
CHAPTER: FOUR
Dimension of PMS & Its Practices By ACFPL
4.1.Performance Management System:
A well-established set of performance standards that support the values of the institution
provides a basis for key human resource decisions to be made, such as merit, pay increases and
promotions. Thus, ensuring that reward mechanisms are better linked to performance. Enhanced
impact of coaching, mentoring or counselling between managers and employees also promotes
confirm competencies and identify capacity gaps. Training and staff developmental needs should
be identified. The performance of any organization affects every aspect of life. An effective
organization is a critical element in the development of a country. The organization therefore
needs to have a competent, motivated, professional, and forward-thinking organizations working
on its behalf. The Performance Management System for the organization hence transform the
prevailing culture to one that is committed to providing service to the public in a manner that is
user friendly, and delivered with professionalism and integrity, to the benefit of the wider
society. Performance management system and aligning their objectives facilitates the effective
17
delivery of strategic and operational goals. There is a clear and immediate correlation between
using performance management programs or software and improved business and organizational
results. In the public sector, the effects of performance management systems have differed from
positive to negative, suggesting that differences in the characteristics of performance
management systems and the contexts into which they are implemented play an important role to
the success or failure of performance management.
18
supervisors, and employees alike are not convinced of the value of performance appraisals. They
feel that it simply represents additional work and remain skeptical of the process. Implementing
a structured appraisal process is no easy task, especially since it creates additional work for
supervisors. The process places pressure on employees and forces them to establish specific
goals and adopt the behaviors necessary to achieve these goals. Also, the process places
employees and supervisors in an uncomfortable position; where employees may feel they are
being unfairly judged because they are being graded as if they were in school. Managers find it
difficult to be candid and constructive at the same time when conducting an appraisal session
that involves negative feedback. However, to achieve institution ‘s goals and objectives, an
effective system of providing feedback to employees must have periodic and objective
performance feedback.
The Training and Development is responsible for all issues related to the training of government
Officers. It assists in the development of deployment, induction and mission training programs
by providing related advice and support. The challenge for organizations is to ensure that all
executives, managers and supervisors are using best practices and appropriate methods in
providing feedback and coaching of the mission and objectives. If your managers are trained in
coaching and giving feedback, how well they are doing it, someone may ask. If they need
improvement, what will it take to help them be at their best. The effectiveness of any
organization is dependent on the quality of its personnel. The right people must be originally
selected into the organization, motivated to works; and sound personnel promotion and training
decisions must be made in filling no entry level. An effective personnel performance evaluation
system is a crucial cornerstone in this process, as it provides the data needed for most of the
required administrative decisions. This system plays a key role in motivating people to utilize
their abilities in pursuing the organization's goals. Opportunity for development is valuable only
if the individual capitalizes on it himself. In fact, the organization can and should offer
encouragement and help, but development activities seem to be successful only to the degree that
individuals become personally involved in them. Second one mutual objective. The premise of
any development activity in organization, there should be a clear understanding and acceptance
of mutual objectives by both the individual and organization. If the objectives are understood and
accepted, the efforts expended will be far more likely to succeed. Another principle is the
principle of continuity. If a man who abandoned his efforts to keep updating skills or
information, he will become antiquated. Especially for nowadays, the new knowledge and skills
are constantly being introduced. Rahdert (2003) also points out the benefit of personnel
development; for employees, if the individual skills or knowledge increase, he may create more
value and as a result he may receive a sense of satisfaction in the achievement of personal goals
and attainment of professional recognition. On the other hand, for organization, personnel
development is able to achieve competitive advantages because of a better qualified and a more
highly motivated team, and is able to utilize advanced technology because of the effectively
19
trained employees. Similarly, Black et al. (2006) suggest that the training courses that are offered
by organizations must be designed through considering the present and future needs of the
employees and facilitate the learning of these skills. A good training or coaching course should
improve the quantity and quality of organizations output; increase the chance of organizational
success; decrease the organizational costs and expenses. Moreover, coaching is increasingly
being recognized as a significant responsibility of managers, and can play an important role in an
employee's working life.
Rewarding performance happens on the end of performance period. The main activities of
performance period include evaluating employee ‘s accomplishments and skills; discussing
evaluation with employees. It evaluates the effectiveness of the whole process and its
contribution to overall organizational performance to allow changes and improvements to be
made, and also provides the feedback to the organization and to individual staff about their actual
performance. The effectiveness of any organization is dependent on the quality of its personnel.
The right people must be originally selected into the organization, motivated to works; and sound
personnel promotion and training decisions must be made in filling no entry level. An effective
personnel performance evaluation system is a crucial cornerstone in this process, as it provides
the data needed for most of the required administrative decisions. This system plays a key role in
motivating people to utilize their abilities in pursuing the organization's goals. After the
evaluating and checking the feedback, managers or organizations should provide th pay-for-
performance. Financial appraisal is a useful tool to incant employee ‘s passion for their work. In
this stage, managers still need to focus on developing staff to further improve performance, and
their career progression, in the future. Rewards represent important mechanisms by which
employee behaviors can be aligned with the interests of the organization, (Eisenhardt, 2009).
Particularly, pay-for performance is a reward practice that links one's pay increase to one's
performance, and could be used to direct, sustain, and motivate desirable behaviors, such as
knowledge sharing, creativity, quality and customer satisfaction. Pay-for-performance
establishes the behavioral criteria by which rewards are allocated and in doing so underpins the
alignment of employee behavior with organizational values and objectives. Therefore, if an
employee achieves his or her performance objectives then the employee receives a pay increase.
This simple and visible link between pay and performance recognizes an employee for a specific
level of accomplishment, therefore nurturing favorable work attitudes, such as satisfaction and
commitment. Thus, the effectiveness of pay-for performance has a direct influence on high
levels of service quality and desirable work attitudes. In the last stage, rewarding performance
consist of personnel development, final evaluation and rewarding activities. Financial appraisal
is a useful tool to incant employee ‘s passion for their work. Rewarding motivates the positive
emotion of employees, such as satisfaction and commitment. Thus, the effectiveness of pay-for
performance has a direct influence on high levels of productivity and desirable work attitudes.
20
4.5.On-going Feedback & Coaching and Employee Performance:
Coaching, in its simplest form, means to train, tutor or give instruction. It is an excellent skill
that can be used to enhance growth and performance, as well as promote individual
responsibility and accountability. Performance coaching is an ongoing process which helps build
and maintain effective employee and supervisory relationships. Performance coaching can help
identify an employee's growth, as well as help plan and develop new skills. Using their coaching
skills, supervisors evaluate and address the developmental needs of their employees and help
them select diverse experiences to gain necessary skills. Supervisors and employees can work
collaboratively on developing plans that might include training, new assignments, job
enrichment, self-study, or work details. Employee Effectiveness has revolutionized how our team
offers and collects feedback. We've moved from a manual process to targeted conversations that
we can schedule, track and adapt to our needs. Supervisory feedback should inform, enlighten,
and suggest improvements to employees regarding their performance. Supervisors should
describe specific results they have observed as close to the event as possible so ideas stay fresh
and any needed adjustments can be made in a timely manner. Successful supervisors develop a
routine that includes frequent, in-depth discussions about performance with employees. The
routine should remain informal and the discussions should focus on how both the employee and
supervisor view the employee's performance and development. Employees can’t reach their full
potential on their own. Even someone like Lebron James has a number of coaches analyzing his
approach to the game of basketball to give him pointers to help him become an even better
player. Similarly, from entry-level workers to employees in senior management, all members of
your team need outside assistance to become the best they can be in their respective roles. Just
like athletes are coached, business professionals can benefit tremendously from their bosses
supporting them, assessing their strengths and weaknesses, and offering feedback and advice to
improve performance and make sure everyone’s on the same page. Oftentimes, there are few (or
no) positive outcomes that result from the annual review. Managers and employees alike find
that preparing for the annual review is time-consuming, and the time spent working on it could
be used to put more effort towards achieving goals. In addition, the annual review causes stress
for both parties, because when performance is discussed only once per year in a formal setting, it
becomes difficult for either person to have an open, honest conversation about expectations,
progress, and areas that need improvement.
21
CHAPTER: FIVE
DATA ANALYSIS
Accordingly, training refers to the methods used to give new or present employees the skills that
they need to perform their jobs. Additionally, the focus of training is performance improvement,
which are directed towards maintaining and improving current job performance (Desseler, 2007, p.
270).
1. Training Needs Analysis (TNA): Identifies the specific job performance skills needed,
assesses the prospective trainees’ skills, and develops specific measurable knowledge and
performance objectives based on any deficiencies.
2. Training Instructional Design (TID) is to decide, compile and produce training program
content, including workbooks, exercises, and activities and some techniques like computer and
on the job training technique.
3. Training Validation: The bugs are worked out of the training program by presenting it to a
small representative audience.
22
5. Evaluation: Management assess the program’s success or failures.
The effects of training can be measured through the following four basic categories of outcome.
Reaction
Learning
Behavior
Results
Coaching & Feedback:
Coaching, in its simplest form, means to train, tutor or give instruction. It is an excellent skill
that can be used to enhance growth and performance, as well as promote individual
responsibility and accountability. Performance coaching is an ongoing process which helps build
and maintain effective employee and supervisory relationships. Performance coaching can help
identify an employee's growth, as well as help plan and develop new skills. Feedback is the
primary tool used to provide employees with information and guidance. Feedback consists of
two-way communication.
Employee feedback provides managers with clues regarding how they are hindering or aiding
their subordinates' work performance.
In recent years, there has been a growing interest in multi-rater or 360-degree feedback, in
response to an increasing need for greater employee commitment and empowerment. In essence,
360-degree feedback enables all the stakeholders in a person's performance to comment and give
feedback (Ward, 1995). Stakeholders may include peers, subordinates, internal/ external
customers and managers (Kriemadis, Andreas, & Κριεμάδης, 2018).
EXISTING APPROACHES
Eclectic Interventions
Eclectic coaching interventions are activities that derive from no particular theoretical per
spectate but have considerable face validity nonetheless, in that a lay person would be likely to
23
assume that they would help a team perform well. Eclectic models are found mainly in the
practitioner literature as codifications of the les sons learned by management consultants whose
practice includes team facilitation.
Process Consultation
The process consultation approach developed by Schein (1969, 1988) posits that competent
interpersonal relations are essential for effective task performance and that group members
themselves must be intimately involved in analyzing and improving those relationships. The
consultant engages team members in analyzing group processes on two levels simultaneously:
(1) the substantive level- To analyze how human processes are affecting work on a specific
organizational problem? And (2) the internal level-to better understand the team's own
interaction processes and the ways that team processes foster or impede effective group
functioning.
Behavioral Models
Two distinct models of team coaching are based on theories of individual behavior: (1) the
application of Argyris's (1982, 1993) theory of intervention to team-focused coaching by
Schwarz (1994) and (2) applications of parent conditioning to the modification of team behavior,
notably those of Komaki (1986, 1998) and her col leagues (Richard & Ruth, 2005).
Performance Appraisal
The method of cognitive placement determines the performance groups among employees. HR
managers appoint the performance grade of employees into one group. Top performers and bad
performers are interested to HR managers, because top performers make up the “talent
management” group and bad performers make up the “performance management” group. Talent
performers might be candidates for management positions, because they have the best individual
performance, while bad performers may need performance management process to upgrade their
knowledge and individual performance. So, we make the scale of cognitive placements follows
(see Figure).
100 90 70 50 30 10 0 (Grades)
24
10% 20% 20% 20% 20% 10%
Top individual performance has the performance grade of 90-100, while bad performance has the
lowest grade of 10. In addition, the two groups might be the target group of HR managers and
HR departments. HR manager replaces the top 10% of employees into top performers and
replaces the lowest 10% of employees into bad performer group
Rewarding System:
Procedures, rules, and standards associated with allocation of benefits and compensation to
employees. The reward system is a group of neural structures responsible for incentive salience
(i.e., motivation and "wanting", desire, or craving for a reward), associative learning (primarily
positive reinforcement and classical conditioning), and positively-valanced emotions,
particularly ones which involve pleasure as a core component (e.g., joy, euphoria and ecstasy).
Independent Variables
Dependent Variable
Training and Development
(T&D)
H1
Employee
H3 Performance
Performance Appraisal
H4
Rewarding Systems
25
5.1.3. Questionnaire Design:
The research questionnaire has designed on the conceptual framework and it is segmented in two
parts:
First part contains some demographic questions such as gender, occupation,
educational qualification, experiences.
The second part contains scaling questions where respondents had to answer
whether they agree or disagree as indicated by the 5 scale
o Strongly Agree
o Agree
o Not Sure
o Disagree
o Strongly Disagree
26
5.3.Reliability Analysis of Factors
In this report, reliability is measured by using Cronbach’s Alpha. Cronbach’s Alpha measures
internal consistency or how the items are closely related as a group. Cronbach’s Alpha of .07 and
above is acceptable where scale between 0 (no internal reliability) and 1 (greatest internal
reliability). Cronbach’s Alpha for dependent variable has shown in the table which is greater
than benchmark .07, which indicates good and acceptable in the rules of thumb, therefore the
questionnaire formed is reliable.
Gender
27
Table 5: Age of Respondent
Educational level
Marital Status
Work Experience
28
Salary Package
The table has shown the statistical description of PMS dimensions and Employee Performance.
From the table it has been found that employees of the organization perceived that Performance
Appraisal (with highest mean scores i.e. M = 2.4656 SD = .81709) to be the most dominant
practices of PMS and evident to a considerable extent, followed by Feedback & Coaching (M =
2.3716 SD = .79489), Rewarding System (M = 2.2732 SD = .64337), Training & Development
( M = 2.1569 SD = .57006).
29
Correlation Analysis:
Correlations
Employee Training & Feedback Performance Rewarding
Performance Development & Appraisal System
Coaching
Employee Pearson 1
Performance Correlation
Training & Pearson .522** 1
Development Correlation
Feedback & Pearson .280* .569** 1
Coaching Correlation
Performance Pearson .230 .348** .648** 1
Appraisal Correlation
Rewarding Pearson .068 .080 .248 .446** 1
System Correlation
**. Correlation is significant at the 0.01 level
(2-tailed).
*. Correlation is significant at the 0.05 level
(2-tailed).
The table of correlation shows that Training & Development (r=0.522) is highly correlated with
employee performance. And Feedback & Coaching (r=0.280) is moderately correlated with
employee performance. Performance Appraisal (r=0.230) and Rewarding System (r=0.068) have
negatively correlated with employee performance.
30
performance to allow changes and improvements to be made. It significantly influences
employee satisfaction.
H4: If the employees are paid a good reward, their productivity will increase. The effectiveness
of pay-for performance has a direct influence on high levels of productivity and desirable work
attitudes. Rewarding Systems significantly influence employee satisfaction.
5.7.Testing Hypotheses:
H0: Feedback & Coaching doesn’t significantly influence employee job satisfaction.
Model Summary
Coefficientsa
31
Moreover, the p-values observed above (Sig = .000 and .029) authenticates the degree of
significance between the tested variables at a commendable 1% level, which is also reaffirmed
by the t-stat (Feedback & Coaching =2.237) satisfying t> (-/+) 2. On a parallel note, the
coefficient (B =.280) suggests that there is a strong positive correlation between Legal dimension
of Coaching & Feedback and employee performance.
ANOVAb
Total 26.194 60
With regard to the ANOVA table, it is identified that the value of F-stat is 5.972 and is
significant as the level of significance .029 is less than 5% (p<0.05).
This indicates that the overall model was reasonable fit and there was a statistically significant
association between employee Coaching & feedback and employee performance. So H1 is
accepted and H0 is rejected. Additionally, this also indicated that the hypothesis of this study is
accepted i.e., coaching & feedback has a positive relationship with employee performance.
H0: Training & Development doesn’t significantly influence employee job satisfaction.
Model Summary
32
The model summary table of regression analysis shows the strength of regression is
commendably significant as supported by the coefficient of the multiple R value= .522 or 52.2%.
Additionally, the adjusted R-square value of .260 or 2.6% withholds the variables mentioned,
while other 47.8% is possibly concerned with associated with variables not similar to chapter
involved.
Coefficientsa
ANOVAb
With regard to the ANOVA table, it is identified that the value of F-stat is 22.052 and is
significant as the level of significance .000 is less than 5% (p<0.05).
This indicates that the overall model was reasonable fit and there was a statistically significant
association between employee Training & Development and employee performance. So H1 is
accepted and H0 is rejected. Additionally, this also indicated that the hypothesis of this study is
accepted i.e., Training & Development has a positive relationship with employee performance.
33
5.6.3. Hypothesis Testing on Independent Variable- Performance Appraisal
Model Summary
Coefficientsa
ANOVAb
34
Total 26.194 60
a. Predictors: (Constant), Performance Appraisal
b. Dependent Variable: Employee Performance
With regard to the ANOVA table, it is identified that the value of F-stat is 3.290 and is
significant as the level of significance .075 is more than 5% (p>0.05).
This indicates that the overall model was reasonable fit and there was a statistically no
significant association between employee Performance Appraisal and employee performance. So
H1 is rejected and H0 is accepted. Additionally, this also indicated that the hypothesis of this
study is accepted i.e., Performance Appraisal has a negative relationship with employee
performance.
Model Summary
Coefficientsa
35
B Std. Error Beta
1 (Constant) 1.838 .315 5.836 .000
Rewarding System .070 .133 .068 .525 .601
a. Dependent Variable: Employee Performance
ANOVAb
With regard to the ANOVA table, it is identified that the value of F-stat is .270 and is significant
as the level of significance .601 is less than 5% (p>0.05).
This indicates that the overall model was reasonable fit and there was a statistically no
significant association between employee Rewarding System and employee performance. So H1
is rejected and H0 is accepted. Additionally, this also indicated that the hypothesis of this study
is accepted i.e., Rewarding System has a negative relationship with employee performance.
36
5.8.Output of Hypotheses
37
CHAPTER: SIX
FINDINGS, RECOMMENDATIONS & CONCLUSION
6.1 Findings:
In this section, a list of findings has been shown according to analysis and objectives of the
report.
Feedback & Coaching gives recognition for good performance hence improved employee
productivity. The study finds out that Feedback & Coaching strongly suggests changes to
improve departmental services and outcomes hence create room for improvement. Actual
performance could therefore be compared to the desired performance; therefore, the outcome is
evaluated and a development plan is set based on the weakness.
From the analysis we also find that there is a strong relationship between training & development
and employee performance. The dimension of training a& development of PMS has significantly
impact on employee performance. The data also establishes that training and development
(T&D) policy ensures employees are exposed to relevant skills to improve productivity. From
the analysis it is clear that Training and development (T&D) opportunities provided encourage
staff to be creative hence improved productivity.
The study finds out that there are no links between performance appraisal and employee
performance as indicated. Performance appraisal doesn’t give recognition for good performance.
Performance appraisal does not suggest changes to improve departmental services and outcomes.
From the results of the study performance management system enables employees meet all their
work targets and deadlines promptly hence improved individual employee productivity. Finally,
performance management enables employees arrive on time to work and to meetings and
therefore save time in their work hence maximum employee productivity.
38
6.2 Recommendations:
It is recommended that Amrita Consumer Food Products Ltd should identify areas of
improvement in the implementation of performance management system and align their
practice(s) with national norms and standards.
It is also recommended that Amrita Consumer Food Products Ltd should modify its performance
appraisal system. Performance appraisal should be fair to all employees supervised. Amrita
Consumer Food Products should be kept in mind so that performance appraisal can make
changes to improve departmental services and outcomes.
The rewarding systems also need to change to improve the effectiveness of the performance of
employee. Current rewarding systems are not up to the mark. It should develop a standard
rewarding system so that employee can be encouraged and motivated to increase their
performance.
ACFPL can set itself as a market leader in case of employee performance sector by maintaining
appropriate PMS rules, regulations, and policy in the organization. This will help organization to
increase employee performance as well as company performance.
6.3 Conclusion:
This research was carried out with a main purpose of finding out the Influence of Performance
Management System on Employee performance. The general objective of the study was to
determine the Influence of PMS on Employee performance in Amrita consumer Food Products
Ltd. The specific research objectives that guided the study were; to determine the extent to which
development of performance plans influences Employee performance in Amrita consumer Food
Products Ltd, to assess the extent to which review of employee progress on an ongoing basis
influences Employee performance in Amrita consumer Food Products Ltd, to assess the extent to
which training and development of employee needs influences Employee performance in Amrita
consumer Food Products Ltd and to assess the extent to which rewarding of employees
influences Employee performance in Amrita consumer Food Products Ltd.
39
Coaching & feedback also influences productivity. Effective and efficient Coaching & feedback
policies should be put in place to continuously equip staff with skill. As technology changes
there is need for a continuous improvement and adaptability to technology. Amrita Consumer
Food Products Ltd therefore needs to put more investments on coaching & feedback to maximize
productivity of its employees by making them more effective and efficient.
40
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Appendix:
Questionnaire
On
The Effects of Performance Management System on Employee
Performance of Amrita Consumers Food Products Ltd.: A Study
on Southern Part of Bangladesh.
Disclaimer: The data gathered through this interview schedule would be used
exclusively for the purpose of academic research only.
Dear Respondent,
The following statements relate to your perception about The Effects of Performance
Management System on Employee Performance of Amrita Consumers Food Products Ltd.:
A Study on Southern Part of Bangladesh. Selecting 1 (one) means you strongly agree &
selecting 5 (five) means you strongly disagree with the statement. There is no right or wrong
answer, only your perception about the working condition. Feel free to give your opinion on all
statements. Please spare a few minutes from your valuable schedule & share your true feelings.
All information will be treated as confidential & will be used for the purpose of report only.
45
Section B: Impact of Performance Management System on Employee
Performance
[Please indicate your opinion by putting (X) cross sing in the right box with regard to the current
Performance Management System at your workplace. Use 5-point Likert Scale whereas 1=
Strongly Agree, 2= Agree, 3= Not Sure, 4= Disagree, 5= Strongly Disagree]
46
02 Involves me in the evaluation of organization’s
performance.
03 Reports regularly to the community on its performance.
04 The manger provides frequent fair feed-back to me.
05 The organization is inclined at providing positive
feedbacks to promote employee performance.
06 I receive genuine feedback which motivates me to
improve.
47