Performance Management System

1
“PERFORMANCE MANAGEMENT SYSTEM”
COMPANY NAME
“UFLEX LIMITED”
NOIDA
SUBMITTED BY:
SHAILLY SRIVASTAVA
MBA (HUMAN RESOURCE)
A7002312027
UNDER THE GUIDANCE OF
INDUSTRIAL GUIDE:FACULTY GUIDE:
Mr. BIGHNESH DUBEY &Dr. ANVITI GUPTA
Ms. DEEPA GUPTA Asst. Professor
ABS, LUCKNOW
SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD
OF FULL TIME MASTERS IN BUSINESS ADMINISTRATION
(2012-14)
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH LUCKNOW

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STUDENT’S CERTIFICATE
Certified that this report is prepared based on the summer internship project undertaken by me
in Uflex Limitedfrom 15th
May 2013 to 30th
June 2013, under the able guidance ofMr.
Bighesh Dubey&Ms. Deepa Guptain partial fulfillment of the requirement for award of
degree of Master of Business Administration (MBA-HR) from Amity University, Uttar
Pradesh.
Date--------------------
--------------- ----------------- -----------------
(Shailly Srivastava) (Dr. Anviti Gupta) Prof. V. P. Sahi
Asst. Prof. Director(ABS)

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FACULTY CERTIFICATE
Forwarded here with a summer internship report on “Performance Management System”
of Uflex Limited submitted by Shailly Srivastava Enrollment No. A7002312027 student of
MBA (HR) IIIrd
Semester (2012-14).
This project work is partial fulfillment of the requirement for the degree of Master in
Business Administration from Amity University Lucknow Campus, Uttar Pradesh.
--------------------------------
(Dr. Anviti Gupta)
Asst. Professor (ABS)
Amity University,
Lucknow Campus

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ACKNOWLEDGEMENT
I take this opportunity to bestow my gratitude to all who helped me during the course of the
project for their aspiring guidance, invaluably constructive criticism and kind
advicethroughout the project work. I am sincerely grateful to them for sharing their sincere
andilluminating views on a number of issues related to the project.
I express my heartfelt thanks to my industrial guideMr. Bighnesh Dubey and Ms. Deepa
Guptafor their support & guidance at UFLEX LTD.
I would also like to thank my project guide Dr. Anviti Guptaand all the people who
provided me with the required facilities of working conditionsconducive for my project
work.
The acknowledgement would be incomplete without thanking my family and friend who
were a big support throughout.

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TABLE OF CONTENTS
S.NO. CONTENTS PAGE NO.
1. Executive Summary 7
2. Objectives of the study 8
3. Introduction
Meaning of PMS 9
Difference between PMS & Appraisal
system
9
Process of PMS 10
Methods of PMS 10
Company Profile 12
PMS in Uflex Limited 14
PMS process in Uflex 14
4. List of diagrams
Fig. 1 10
Fig. 2 14
5. Presentation of data & analysis
Sources of data 17
Sample size 17
Method of data collection 17
Instrument Used 18
Tools & techniques of analysis 18
6. List of diagrams
Graph-1 19
Graph-2 20
Graph-3 21
Graph-4 22
Graph-5 23
Graph-6 24
Graph-7 25
Graph-8 26
Graph-9 27

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Graph-10 28
Graph-11 29
7. Suggestions & Recommendations 30
8. Limitations of the study 31
9. Conclusion 32
10. Bibliography 33
11. Annexure 34

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EXECUTIVE SUMMARY
The objective of my project was to study the Performance Management System of Uflex
Limited of so that I can evaluate its benefits in the context of organization. Also to know that
what is the effectiveness of Performance Management System in Uflex Limited & to know
the improvement area through the help of the Performance Management System.
The methodology of the project was the systematic presentation of data consisting of the
enunciated problem, formulated hypothesis, collected facts of data.
All the data was collected through the help of the questionnaire which was filled by 20
employees of Uflex Limited.
The outcome of the project was that through the help of the performance management
system in Uflex there is a transparency between the employee & manager which helps in
achieving their goals as well as company’s goals easily which creates a participative
environment in the organization.
Thus, the organization purpose should be to help an employee to improve his/her
performance level, maintain his/her morale, guide him/her to identify & develop his/her
strong points, overcome his/her weak points, develop new capabilities to handle more
responsibilities which would help in achieving the goals effectively and easily.

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INTRODUCTION
Performance Management Systemis the process by which managers improve the
performance of their employees by utilizing their power to reward, discipline as appropriate.
A PMS documents these processes as company policy and may form a legally binding
contract between the company and one or more employees.
Difference between Performance Appraisal & Performance Management System:
Performance Appraisal Performance Management System
Emphasis is on relative evaluation
of individuals.
Emphasis is on performance
improvements of individuals, teams
& the organization.
Designed & monitored by the HR
department.
Designed by the HR department but
could be monitored by the
respective departments.
Ownership is mostly with the HR
department.
The overall ownership is with the
line managers.
Development needs are being
identified at the end of the year on
the basis of the appraisal gaps.
Developments needs are identified
in the beginning of the year on the
basis of the coming year.
Focused on quantitative aspects of
performance.
All focus is on qualitative aspects
of performance.
Linked to financial reward. Can be linked to total reward.
Short to mid-run goals are
identified.
Long-run goals are identified.
Focused on individuals past
mistake & misbehavior.
Focused on individual’s growth.
The Essential Components of a Performance Management System are:
 A performance plan is being negotiated between a manager and employee for a given
period.
 During the year the manager gives employees feedback.
 Performance is appraised at year-end.
 Decisions are made to reward, discipline or develop employees.
 The cycle is being completed with a new performance plan.

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Advantages of Performance Management System are:
 PMfocusesontheresults,notonbehaviorsand activities.
 Alignsorganizationalactivitiesandprocessesofthegoalsoftheorganization.
 Cultivatesthesystem-wide,&createsalong-termviewoftheorganization.
 Produces meaningfulmeasurements.
Process of Performance Management System:
The Methods of Performance Management System:
 Paired comparison method: In this each employee is compared with all others in
the group, one at a time. After comparison the employees are given their final
ranking.
 Graphic rating method: A scale that allows the rater to indicate an employee’s
performance on a variety of job employee’s performance on a variety of job
behaviors. The Rating Scale is a form on which the Rating Scale is a form
on which themanager simply checks off the employee’smanager simply checks
off the employee’slevel of performance.
 Forced choice method: It is being applied on several, rather than only on one
component of job performance. It is used to remove rating errors.
 Checklist method: Rating is given on the basis of the behavior of the employees.
Fig. 1

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 Critical incident method: The evaluator will rate the employees on the basis of
the critical events.
 Field review method: HR department or a training officer discusses &
interviews the superior to evaluate & rate their sub-ordinate.
 Straight ranking method: It compares the employees with each other; it could be
from the best effective to worst or wise-versa.
 Forced distribution method: The forced distribution method of performance
evaluation derives its name from the fact that those responsible for providing
evaluations, the raters, are “forced” to distribute ratings for the individuals being
evaluated into a “prespecified” performance distribution. Typically, the
performance distribution is chosen to reflect the normal curve, so that a
relatively small percentage of rates are required to be placed in the extremes and
larger percentages of rates are placed in the categories toward the middle of the
performance distribution.
 Free evaluation method:In this style of PMS, managers/ supervisors are required
to figure out the strong and weak points of the staff’s behaviors which are essay
evaluation method known as non-quantitative technique. It is often mixed with
the method which is called the graphic rating scale.
 Group appraisal method:The overall group is being appraised over here.
 360 degree feedback method: The performance of the employee or manager is
evaluated by six parties including himself, top management, immediate
superiors, peers, sub-ordinate & customer.

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COMPANY PROFILE
Uflex has gained an unchallenged identity its inception in the year 1983 has turned into a
multi-billion company that values quality and customer satisfaction amongst other priorities.
With consumers spread across the world, Uflex enjoys a global reach. Headquartered in
Noida (National Capital Region, New Delhi) it has state of the art manufacturing facilities in
India & Dubai. It has also established offices in UAE, Europe, and North America & enjoys
a formidable market presence in more than 85 countries.
Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA
approvals for their products. It is also a part of the D&B Global Database and winner of
various prestigious national and international awards like the top exporter of BOPET and
BOPP films, and the World star award for packaging excellence. FPA, AIMCAL and the
DUPONT Awards in 2004-2005 are the latest in this series.
Uflex has always been committed to the industry by providing technical know-how and
being the trend-setter in the flexible packaging industry. Being on the edge of innovation,
Uflex endeavors to be the first to come up with advanced products that cater to the changing
demands of the packaging industry.
As part of the Uflex Group, it has over twenty years of experience in polymer technology.
Setting milestones of success and innovation, Uflex is widely known for manufacturing and
supplying products, delivering apt services around the world.
“Uflex Limited Engineering Division” is an integral part of Uflex Group of Companies. The
group commenced its operations with a small investment and a pioneering spirit in 1983.
Today, it is one of the leading corporate houses in the Asia Pacific Region offering, among
the other things, a single window Total Packaging Solutions. Our qualified and skilled
professionals manufacture these products using advanced technology and optimum grade
factor inputs. Our production facility enables us to manufacture these products in compliance
with the international quality standards to ensure their flawlessness in all aspects.
Located at Noida (Uttar Pradesh, India), we have constructed a well-developed
infrastructural facility that is spread across the wide area of land. We have divided our
infrastructure into different sub-units such as manufacturing, quality testing, R&D,
warehousing & packaging, etc. These units are managed by our professionals, who ensure
that the allied processes are carried out smoothly & systematically. We have also constructed
an in-house quality-control unit, wherein our complete product range is examined on
predefined industry parameters. In order to handle our quality control unit in an efficient and
organized manner, we have recruited a team of dexterous professionals has been appointed
by us. In our team, we have technical staff, researchers, quality controllers and sales

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executives who have been employed by us only after analyzing their experience &
knowledge in the concerned domain. We conduct different multiple training sessions &
knowledge enhancement workshops on regular basis to polish the skills and knowledge of
our professionals. In order to retain customer’s faith and trust within our company, we
remain in their contact to improve the products quality on the basis of their feedback &
suggestions.
Backed by a spacious warehousing unit, they are capable of storing the finished products in
bulk quantity under safe & secure environment. They have also dividedwarehouse into
various sections that help us keep the sourced raw material and finished products in a
systematic manner. We also take precautionary measures to ensure that suitable environment
is maintained at this unit, which protects our entire product range from all kinds of damages.
Our packaging unit assists us in delivering the ordered products to the clients without
hampering their quality features. With hard work, sincerity and unending efforts of our
professionals, we have been able to maintain cordial and long-lasting relations with the
clients. Our quality-centric approach, customized options, timely delivery and cost-effective
pricing policy have been able to establish a huge base of satisfied clients across the country.
Being a multi-faceted organization it has been integrated its operations in the following
divisions:
 Films Division
 Engineering Division
 Holography Division
 Converting Division
 Cylinder Division
 Chemical Division

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PERFORMANCE MANAGEMENT SYSTEM IN UFLEX
LIMITED
 Meaning:
A process through which the manager improves the performance of employees,
through the help of the organizational goals & employee’s individual goals.
 Role of Appraisee, Appraiser, Reviewer & HR:
Appraisee:
Is an individual who is being assesses as the part of the performance cycle.
Appraiser:
An individual who helps plan performance and assesses the performance of one
or more appraisees that report to him/her.
Reviewer:
An individual who is responsible for addressing/ reviewing the performance of
the team member of their direct reporters.
HR:
Function as a facilitator in the process & clarify the process if needed.
 The Process of Performance Management System:
KRA
MID-YEAR REVIEW
FINAL-YEARREVIEW
Fig. 2

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STEPS:
 KRA
Key Result Area refer to the result that need to be achieved by an employee in a
given time cycle. They are a set of critical expectations from a particular profile
in the organization.
 KRA should be SMART i.e.
S-Specific
M-Measurable
A-Achievable
R-Reliable
T-Time Bound
 KRA’s is to be eight (max.)
 Need to be clearly understood, recorded mutually agreed upon & signed
off by both employee & supporting manager.
 Mid-Year Review
It is conducted at the mid of the PMS cycle. It is being conducted in the month
of September.
 Appraiser’s Feedback Report:
In this the Appraiser gives feedback to the appraiser gives feedback to the
appraiser about how much work or target he/she have been completed, or
whether they are lacking behind in completing their targets.
 Re-alignment of KRA’s if any:
If there is need to re-setup the KRA, if the appraiser is not able to
accomplish its target then through the help of the appraiser’s. Change of
KRA can also be done after discussing with appraiser and only if he
agrees.
 Final-Year Review
 In final-year review performance rating is being given on the basis of the
performance.
 At first, appraisee fill the target he has actually achieve then after self-
analysis he rate himself/herself on the five rating scale.

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 Secondly, the appraiser gives the rating to the appraisee, after seeing
his/her overall performance level 7 also discuss the appraise rating.
 Thirdly, the reviewer gives the rating to the appraisee after discussing his
performance with the appraiser.
 Then at last the overall weightage is calculated through the help of the
following formulae:
I=Weightage*Reviewer’s Rating /100
 There are 5 rating scale according to which it is being decided whether
the employee has accomplished its target or not, which is follows:
o 5 (Outstanding) – Achieves ≥ 100% of the KRA
o 4 (Superior) – Achieves ≥ 100% of the KRA ( 100%- 109% )
o 3 (Satisfactory) – Achieves ≥ 85% of the KRA (85%-99%)
o 2 (Needs Improvement)- Achieves 70% - 84%
o 1 ( Inadequate Performance)- Achieves < 70%
 Performance Management System form also include the behavioral attribute &
training requirement.

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OBJECTIVES OF THE STUDY
 To study the Uflex PMS & evaluate the benefits in context of organization.
 Improve the performance of the employees & there by improving the overall
performance of the company, by providing suggestions if any.
 To know the effectiveness of Performance Management System in Uflex.
 To know the improvement area of Uflex through Performance Management System.

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PRESENTATION OF DATA & ANALYSIS
 Research Methodology
The project is a systematic presentation which consists of the enunciated problem,
formulated hypothesis, collected facts of data, analyzed facts & proposed conclusions
in the form of recommendations.
 Source of data
Questionnaire filled by the employees.
 Sampling
The process of selecting a sample from a population using special sampling techniques
is known as sampling. It should be ascertain in the process itself that the sample
selected is representative of the population.
 Sample Size
Data is collected using the sample of 20 employees of Uflex Limited.
 Sample Description
The sample consists of data from the primary sources that are utilized for the
means of administrating questionnaire to employees.
 Method of data collection
Data is collected from two methods:
 Primary Data
Collected through the help of survey method by distributing the
questionnaire through employees.
The questionnaire was carefully designed by taking into account the
parameters of my study.
Meeting one member of talent acquisition of Uflex Limited.
 Secondary Data
Collected through the help of the Internet.
Through the help of reference books.

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 Instrument
Questionnaire
 Tools & Techniques
The data which is being collected from both the sources is being analyzed &
interpreted in the systematic manner with the help of statistical tool like percentages.

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ANALYSIS
Q.1. Are the goals clearly specified?
a. Strongly Agree
b. Agree
c. Neither agree nor disagree
d. Disagree
e. Strongly disagree
Interpretation:
The above graph shows that 80% of the employees agree to the point that the goals are
clearly specified.
80%
20%
0% 0% 0%
Strongly Agree
Agree
Neither agree nor disagree
Disagree
Strongly Disagree
Graph-1

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Q.2. Is the performance Management System successful in giving a clear understanding
of the appraisee’s job to both appraiser and appraisee?
a. Yes ( )
b. No ( )
Interpretation:
The above graph shows that none of the employee thinks that Performance Management
System is unsuccessful in giving a clear understanding of the appraisee’s job.
100%
0%0%0%
Yes
No
Graph-2

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Q.3. Is there any transparent linkage between the employee & the manager.
a. Strongly Agree ( )
b. Agree ( )
c. Neither agree nor disagree ( )
d. Disagree ( )
e. Strongly disagree ( )
Interpretation:
The above graph shows that 83% of the employee’s agree to the point that there is
transparent linkage between the employee & the manager.
83%
10%
7%
0% 0%
Strongly Agree
Agree
Neither agree nor Disagree
Disagree
Strongly disagree
Graph-3

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Q.4. Do you feel free to express the disagreement regarding the appraisal decisions?
a. Yes ( )
b. No ( )
Interpretation:
The above graph shows that the entire employee’s feel free to express the disagreement
regarding the appraisal decisions.
100%
0%0%0%
Yes
No
Graph-4

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Q.5. Does Uflex always strives for continuous individual improvement.
b. Agree ( )
d. Disagree ( )
Interpretation:
The above graph shows that 75% of the employee’s thinks that Uflex always strives for
continuous individual improvement.
75%
15%
10%
0% 0%
Strongly Agree
Agree
Disagree
Strongly disagree
Graph-5

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Q.6. Your Job Description clearly defines KRA’s on which your performance is rated?
a. Yes ( )
b. No ( )
Interpretation:
The above graph shows that none of the employee thinks that the KRA doesn’t clearly
defines the job description on which performance is rated.
100%
0%0%0%
Yes
No
Graph-6

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Q.7.Do the PMS implemented in your organization create a participative environment?
a. Yes ( )
b. No ( )
Interpretation:
The above graph shows that every employee agree to the point that PMS implemented in the
organization create a participative environment.
100%
0%0%0%
Yes
No
Graph-7

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Q.8.Does the Advises and suggestions are given to the employees during the appraisal
process?
b. Agree ( )
d. Disagree ( )
Interpretation:
The above graph shows that 65% of the employee’s agree to the point that advises and
suggestions are given at the time of appraisal.
65%
25%
10%
0% 0%
Strongly Agree
Agree
Disagree
Strongly disagree
Graph-8

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Q.9. Is your work satisfying and worthwhile and helps contribute to the success
of the company.
b. Agree ( )
d. Disagree ( )
Interpretation:
The above graph shows that 60% of the employees thinks that their work is satisfying and
worthwhile and helps contribute to the success of the company.
60%
35%
5%
0% 0%
Strongly Agree
Agree
Disagree
Strongly disagree
Graph-9

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Q.10. Does the manager establishes plans and work objectives with you.
b. Agree ( )
d. Disagree ( )
Interpretation:
The above graph shows that 65% of the employee’s agree that manager establishes plans and
work objectives with them.
65%
25%
10%
0% 0%
Strongly Agree
Agree
Disagree
Strongly disagree
Graph-10

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Q.11. Would you recommend this company to a friend or relative as a good place to work.
a. Definitely yes ( )
b. Yes ( )
c. May be ( )
d. No ( )
e. Definitely no ( )
Interpretation:
The above graph shows that only 40% of the employee’s thinks that they will recommend
this company to a friend or relative as a good place to work.
40%
35%
25%
0% 0%
Definitely yes
Yes
May be
No
Definitely no
Graph-11

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SUGGESSTIONS & RECOMMENDATIONS
 The PMS should also be followed up with the session of counseling which is often
neglected in many organizations which involves helping an employee to identify
his/her growth & development.
 Communication is very essential for any system to function efficiently. Therefore, the
appraiser should look into this matter & see to it that the goals & plans are
communicated effectively.
 The appraisee can also motivate the employees who felt that they had no growth in the
organization & serves the purpose of employee development.
 Post appraisal interview is to be conducted where they are given a proper feedback on
their performance & they can also put forward their complaints, if any.
 Proper communication of the ratings can help the employers achieve the level of
acceptability & commitment which is required from the employee.

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LIMITATION OF THE STUDY
Following points are the limitations of the study:
 The time period of the internship was not enough to understand the Performance
Management System of the company.
 In such a small period getting views and opinions of the interviewee (HR manager)
was a difficult task.
 There were breaks and hindrances while the study took place.

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CONCLUSION
Performance Management System is the process of reviewing employee performance vis-à-
vis the set expectations in a realistic manner, documenting the review & delivering the
review verbally in a face to face meeting, to upgrade performance standards year after year
through honest& constructive feedback. In this process, management expects to reinforce the
employee’s strengths &identify the improvement areas so that one can work on them & also
set stretched goals for coming year.
Effective performance management requires a good deal of face-to-face interaction between
supervisor & employee. By knowing the subordinates, a supervisor on steer than onto a path
of greater productivity & optimized output. It is one of the most significant & indispensable
tool for an organization as it helps in getting to know the people who work for them, provide
information, which helps in taking important decisions for the development of an individual
& the organization.
The organization purpose should be to help an employee to improve his/her performance
level, maintain his/her morale, guide him/her to identify & develop his/her strong points,
overcome his/her weak points, develop new capabilities to handle more responsibilities. The
performance management system implemented in the organization creates a participative
environment. The appraisee’s & appraisers expectation from performance management
system are almost same that is “The Determination of promotion or Transfer” & “Salary
administration & benefits”. Most of the employees of Uflex agree that the goals are clearly
specified. Through the help of the performance management system in Uflex there is a
transparency between the employee & manager which helps in achieving their goals as well
as company’s goals easily.
Through the help of performance management system the appraiser can motivate the
employees who felt that they had no growth in the organization & serves the purpose of
employee development, so that it can be used as a significant tool for career planning.
Through performance management system the appraiser can feel that the goals & plans have
been clearly communicated to the appraisees.
Majority of employees would like to recommend Uflex company to a friend or relative.

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BIBLIOGRAPHY
 http://www.scribd.com/doc/25704764/Performance-Management-Summer-Project
 http://www.slideshare.net/tarasaini29/vishnu-bsnl-project-report
 http://www.amazon.com/Performance-Management-Appraisal-Systems-
Response/dp/0761998462

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ANNEXURE
Name: Age:
Experience:
Q.1. Are the goals clearly specified?
b. Agree ( )
d. Disagree ( )
Q.2. Is the performance Management System successful in giving a clear understanding
of the appraisee’s job to both appraiser and appraisee.?
a. Yes ( )
b. No ( )
Q.3. Is there any transparent linkage between the employee & the manager.
b. Agree ( )
d. Disagree ( )

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Q.4. Do you feel free to express the disagreement regarding the appraisal decisions?
a. Yes ( )
b. No ( )
Q.5. Does Uflex always strives for continuous individual improvement.
b. Agree ( )
d. Disagree ( )
Q.6. Your Job Description clearly defines KRA’s on which your performance is rated?
a. Yes ( )
b. No ( )
Q.7.Do the PMS implemented in your organization create a participative environment?
a. Yes ( )
b. No ( )
Q.8.Does the Advises and suggestions are given to the employees during the appraisal
process?
b. Agree ( )
d. Disagree ( )

36
Q.9. Is your work satisfying and worthwhile and helps contribute to the success
of the company.
b. Agree ( )
d. Disagree ( )
Q.10. Does the manager establishes plans and work objectives with you.
b. Agree ( )
d. Disagree ( )
Q.11. Would you recommend this company to a friend or relative as a good place to work.
a. Definitely yes ( )
b. Yes ( )
c. May be ( )
d. No ( )
e. Definitely no ( )
Q.12. Suggestions, if any
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Performance Management System

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