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A RESEARCH PROJECT ON

A Study of Performance management system and employee welfare at Liberty


SUBMITTED IN THE PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

Under The Supervision: Dr. Shweta Hooda Solanki (CHAIRPERSON School Of Management Studies) B.P.S.M.V Khanpur Kalan, Sonipat

Submitted By:Ranjeeta Kumari MBA 4th SEM Roll No.:- 100782

Bhagat Phool Singh Women University Khanpur Kalan Sonipat (Haryana) Web site: - www.bpswomenuniversity.ac.in/

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DECLARATION

I, RANJEETA KUMARI hereby declare that the report on all fulfillments of the requirements for the award of the degree in Masters in Business Administration is a record of original work done by me during the period of study 2011-2012, under the guidance and supervision of Dr. Shweta Hooda Solanki (Chairperson of School of Management Studies). I further declare that all the facts and figures furnished in this project report are the outcome of my own intensive research and findings and the same project has not been submitted to any other institution for the award of any other degree.

Signature of the Candidate RANJEETA KUMARI

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CERTIFICATE

This is to certify that the report entitled " A Study of Performance management system and employee welfare at Liberty being submitted by Ranjeeta Kumari in partial fulfillment for award of degree of MBA is to the best of my knowledge a record of his own work carried out by her under my supervision. In addition the matter embodied in this report has not been submitted for award of any other degree elsewhere. I therefore recommend this report for submission.

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

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ACKNOWLEDGEMENT

There is always a sense of gratitude, which is to be expressed to others for the helpful and needy services they render during all phrases of life. I really wish to express my gratitude towards all those who have been helpful to my project. My special thanks to Dr. Shweta Hooda Solanki (MY PROJECT GUIDE) who was become light for me in this endeavor .I will always be thankful to her for her kind help and cooperation to me during project.

(RANJEETA KUMARI)

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PREFACE

Managing human resources in today's dynamic environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance, job security, etc. My research project deals with "A study of employee welfare at Liberty India through Performance management system ". In this report, I have studied & evaluated the performance management system and employee welfare services in the company. The first section of my report deals with a detailed company profile. It includes the company's history: its activities, organizational structure, etc. this section attempts to give detailed information about the company and the nature of its functioning. The second section deals with performance management system. In this section, I have given a brief conceptual explanation to performance management system. It contains the definition, process and significance of performance appraisal In the third section of my report, I have described the process of performance management system and employee welfare at Liberty Shoes Ltd. This section also contains my findings, conclusions, suggestions and feedback.

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INDEX
CHAPTER 1
Introduction to Company History Corporate Philosophy Corporate Saga Credo Social Responsibility Product Range Innovative Approaches International Experience

CHAPTER 2
Review of Literature Process of Performance Management Appraisal Techniques Employees Welfare Scope of Employee Welfare Objective of Employee Welfare Benefits Provided to Workers

CHAPTER 3
Present Existing Performance Management System Process of Performance Appraisal Employee Welfare at Liberty

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PERFORMANCE MANAGEMENT SYSTEM AND EMPLOYEE WELFARE

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REVIEW OF LITERATURE
Performance appraisal: past and future
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modem human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession. There is, says Dulewicz (I989), "... a basic human tendency to make judgements about those one is working with, as well as about oneself. "Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.

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Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward out comes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time. Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal -the assignment and justification of rewards and penalties - is a very uncertain and contentious matter. Performance appraisal, also known as employee appraisal, is a method by

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which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development. Performance appraisals are regular reviews of employee performance within organizations. Generally, the aims of a performance appraisal are to: Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions : salary increases, promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates and customers while also performing a self assessment. This is known as 3600 appraisal. The most popular methods that are being used as performance appraisal process are: Management by objectives 360 degree appraisal Behavioral Observation Scale Behaviorally Anchored Rating Scale

Benefits of Appraisal

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Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one discussion of important work issues that might not otherwise be addressed. Almost universally, where performance appraisal is conducted properly, both supervisors and subordinates have reported the experience as beneficial and positive. Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced. For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor. Said one employee of a large organization after his first formal performance appraisal, "In twenty years of work, that's the first time anyone has ever bothered to sit down and tell me how I'm doing." The value of this intense and purposeful interaction between a supervisors and subordinate should not be underestimated.

Motivation and Satisfaction


Performance appraisal can have a profound effect on levels of employee motivation and satisfaction for better as well as for worse. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence, that human beings will even prefer negative recognition in preference to no recognition at all. If nothing else, the existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individual's sense of worth, commitment anti belonging.

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The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least, is a good start.

Training and Development


Performance appraisal offers an excellent, opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs. During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious even to those who habitually reject the idea of training for them! Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analyzed by variables such as sex, department, etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization.

Recruitment and Induction


Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires (and given sufficient numbers on which to base the analysis) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

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

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objective of performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual. Though organizations have a clear right - some would say a duty - to conduct such evaluations of performance, many still recoil from the idea. To them, the explicit process of judgment can be dehumanizing and demoralizing and a source of anxiety and distress to employees. It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time; it must be one or the other. But there may be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced.

What to evaluate?
The first important step in developing a performance management system is to determine which aspects of performance to evaluate. The most frequently used appraisal criteria are traits, behaviors, and task outcomes.

Traits
Many employees are assessed according to their traits, such as personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know rates. But traits are not always directly related to job performance. Traitbased assessment lacks validity and thus frequently raises legal questions.

Behaviors
For many jobs, performance is so broadly defined or so conceptual in nature- such as ensuring public safety in the police department-that it is hard to come up with reliable performance measures. In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the

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workplace.

Task outcomes
When information about task outcomes is readily available, it is the most appropriate factor to use in evaluating performance. When an organization has a clear and measurable goal as in the case of a sales force, this approach is recommended. However, it has its own pitfalls. There is a problem if employee behaviors are not directly related to the task out-come. Too narrow a focus on measuring out-come only sometimes results in unintended negative consequences. When sales staff narrowly focuses on target sales figures to increase their performance measure, for example, they are encouraged to help a few large-volume customers and to ignore many smaller buyers. This may result in poor customer service on the floor.

Human resource development and performance appraisal


Regular performance appraisal contributes to employee effectiveness,

development and satisfaction on the job. Employees should know their strengths, as well as areas of needed improvement, in order to attain the optimum level of job performance. Done both formally and informally, performance appraisal is an excellent aid to communication, and an effective way of clarifying duties and responsibilities. In addition, written performance appraisals may provide documentation which substantiates recommendations for promotion, transfer, termination or other personnel action. Records of conferences between managers and employees outlining efforts to promote improvement in job performance, as well as documentation of an employee's strengths, will be prepared and maintained by the manager. Copies of these records will be forwarded to Human Resource Services for inclusion into the employee's personnel records. In addition, each employee's performance will be formally appraised annually by the supervisor through the university-wide performance appraisal program. The written performance appraisal will be included in the employee's personnel file.

Performance Appraisal Program

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Whenever possible, each employee's performance will be formally appraised on or near the anniversary of the date of employment. During the month preceding the month in which the anniversary falls, Human Resource Services will send a notice to the department head for distribution to the supervisor responsible for appraising the employee. The manager will complete the form and meet with the employee to discuss the appraisal. The supervisor will then forward the completed performance appraisal form, which has been signed by the employee, to the appropriate director or officer (i.e., the supervisor's supervisor), who will review and sign the form and forward it to Human Resource Services. The forms will be returned to Human Resource Services no later than the end of the month following the month of the anniversary. There may be circumstances such as leaves of absence which alter the schedule. The university reserves the right to delay an employee's appraisal where appropriate. Manuals describing the appraisal process and forms are available in each department, in the Library, and in Human Resource Services.

Retention of Performance Appraisals


The Performance Appraisal forms will be retained in the employee's personnel file for not less than a three-year period, as will any other records of an employee's job performance.

Unsatisfactory Performance
In the event an employee's performance is determined to be unsatisfactory, the performance appraisal permits the clarification of expectations so that the employee's performance can be improved. For those few instances that require more intervention, the procedures described under "Corrective Action" should be followed. The goals, design and management of the organizational and process levels are part of the system that affects performance. The Performance System builds on those levels by providing a more "micro" picture of people and of the immediate environment that 'surrounds them. The Human Performance System is viewed in the input-outputfeedback perspective. The quality of outputs is a function of the quality of inputs,

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performers, consequences, and feedback- inputs are those raw materials, forms, assignments, and customer requests that can cause people to perform. It also includes the performers' resources, systems and procedures that represent the performer in to the process level. A factor that affects input is task interference. The performer must easily recognize the input that requires immediate action. The task should be done without interference from other tasks. Also, adequate resources (time, tools, and information) should be available for performance. Performers are the individuals or groups who convert inputs to output. Among the factors that affect the performer are the skills and knowledge required of the job. If skills and knowledge are inadequate or missing, job performance is impaired and training may be required for the job. Another factor that affects the performer is his or her own individual capacity. This involves the performers' internal capabilities. No matter how supportive their environment or effective their training, they will not be able to do their job if they lack the physical, mental, or emotional capacity to achieve the goals. Appraisals Feedback tells a performer to change performance or to keep on performing the same way. Without feedback, good performance can Fall off-track and poor performance can remain unimproved.

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PROCESS OF PERFORMANCE MANAGEMENT


Performance management is the process of assessing progress toward achieving predetermined goals. It involves building on that process, adding the relevant communication and action on the progress achieved against these predetermined goal. Helps organizations achieve their strategic goals. Rather than discarding the data accessibility previous systems fostered, performance management harnesses it to help ensure that an organization's data works in service to organizational goals to provide information that is actually useful in achieving them and focus on the Operational Networking Processes between that performance levels. The main purpose of performance management is to link individual objectives and organizational objectives and bring about that individuals obey important worth for enterprise. Additionally, performance management tries to develop skills of people to achieve their capability to satisfy their ambitiousness and also increase profit of a firm. Performance management is closely connected to Performance measurement. They are sometimes mistaken for each other. In careful usage, Performance Management is the larger domain and includes Performance Measurement as a component. Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

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Employee performance management includes: Planning work and setting expectations, Continually monitoring performance, developing the capacity to perform, periodically rating performance in a summary fashion, and rewarding good performance. The revisions made in 1995 to the Government wide performance appraisal and awards regulations support sound management principles. Great care was taken to ensure that the requirements those regulations establish would complement and not conflict with the kinds of activities and actions practiced in effective organizations as a matter of course.

Planning
In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, ana

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achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required.

Monitoring
In an effective. organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable performance can be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned.

Developing
In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology. Carrying out the processes of performance management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work,

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deficiencies in performance become evident and can be addressed. Areas for improving good performance also stand out, and action can be taken to help successful employees improve even further.

Rating
From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions, such as granting within-grade pay increases and determining additional retention service credit in a reduction in force. Note: Although group performance may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group.

Rewarding
In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience.

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A lot of the actions that reward good performance - like saying "Thank you" - don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many nonmonetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.

Managing Performance Effectively.


In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress to ward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five component processes working together and supporting each other achieve natural, effective performance management.

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APPRAISAL TECHNIQUES
There are several techniques of performance appraisal, each with some strong points as well as limitations. Oberg (1972) has summarized some of the commonly used performance appraisal techniques. (i) Essay appraisal method The assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the subject. In order to do so objectively, it is necessary that the assessor knows the subject well and should have interacted with them. Since the length and contents of the essay vary between assessors, essay ratings are difficult to compare. (ii) Graphic rating scale A graphic scale 'assesses a person on the quality of his or her work (average; above average; outstanding; or .unsatisfactory).' Assessment could also be trait centered and cover observable traits, such as reliability, adaptability, communication skills, etc. Although graphic scales seem simplistic in construction, they have application in a wide variety of job responsibilities and are more consistent and reliable in comparison with essay appraisal. The utility of this technique can be enhanced by using it in conjunction with the essay appraisal

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technique. (iii) Field review method Since individual assessors differ in their standards, they in advertently introduce bias in their ratings. To overcome this assessor-related bias, essay and graphic rating techniques can be combined in a systematic review process. In the field review method, 'a member of the HRM staff meets a small group of assessors from the supervisory units to discuss each rating, systematically identifying areas of inter-assessor disagreement.' It-can then be a mechanism to help each assessor to perceive the standards uniformly and thus match the other assessors. Although field review assessment is Considered valid and reliable, it is very time consuming. (iv) Forced-choicerating method Unlike the field review method, the forced-choice rating method does not involve discussion with supervisors. Although this technique has several variations, the most common method is to force the assessor to choose the best and worst fit statements from a group of statements. These statements are weighted or scored in advance to assess the employee. The scores or weights assigned to the individual statements are not revealed to the assessor so that she or he cannot favour any individual. In this way, the assessor bias is largely eliminated and comparable standards of performance evolved for an objective. However, this technique is of little value wherever performance appraisal interviews are conducted. (v) Critical incident appraisal method In this method, .a supervisor describes critical incidents, giving details of both positive and negative behaviour of the employee. These are then discussed with the employee. The discussion focuses on actual behaviour rather than on traits. While this technique is well suited for performance review interviews, it has the drawback that the supervisor has to note down the critical incidents as and when they occur. That may be impractical, and may delay feedback to employees. It

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makes little sense to wait six months or a year to discuss a misdeed, a mistake or good display of initiative. (vi) Management by objectives The employees are asked to set or help set their own performance goals. This avoids the feeling among 'employees that they are being judged by unfairly high standards. This method is currently widely used, but not always in its true spirit. Even though the employees are consulted, in many cases management ends up by imposing its standards and objectives. In some cases employees may not like 'selfdirection or authority.' To avoid such problems, the work standard approach is used. (vii) Works standard approach In this technique, management establishes the goals openly and sets targets against realistic output standards. These standards are incorporated into the organizational performance appraisal system. Thus each employee has a clear understanding of their duties and knows well what is expected of them. Performance appraisal and interview comments are related to these duties. This makes the appraisal process objective and more accurate. However, it is difficult to compare individual ratings because standards for work may differ from job to job and from employee to employee. This limitation can be overcome by some form of ranking using pooled judgment. (viii) Ranking methods Some of the important forms of ranking for performance appraisal are given below, based on Oberg, 1972; and Monga, 1983: (a) Alteration ranking method : The individual with the best performance is chosen as the ideal employee. Other employees are then ranked against this employee in descending order of comparative performance on a scale of best to worst performance. The alteration ranking method usually

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involves rating by more than one assessor. The ranks assigned by each assessor are then averaged and a relative ranking of each member in the group is determined. While this is a simple method, it is impractical for large groups. In addition, there may be wide variations in ability between ranks for different positions. (b) Paired comparison: The paired comparison method systematizes ranking and enables better comparison among individuals to be rated. Every individual in the group is compared with all others in the group. The evaluations received by each person in the group are counted and turned into percentage scores. The scores provide a fair idea as to how each individual in the group is judged by the assessor. (c) Person-to-person rating: In the person-to-person rating scales, the names of the actual individuals known to all the assessors are used as a series of standards. These standards may be defined as lowest, low, middle, high and highest performers. Individual employees in the group are then compared with the individuals used as the standards, and rated for a standard where they match the best. The advantage of this rating scale is that the standards are concrete and are in terms of real individuals. The disadvantage is that the standards set by different assessors may not be consistent. Each assessor constructs their own person-toperson scale which makes comparison of different ratings difficult. (d) Checklist method: The assessor is furnished with a checklist of pre-scaled descriptions of behaviour, which are then used to evaluate the personnel being rated (Monga, 1983). The scale values of the behaviour items are unknown to the assessor, who has to check as many items as she or he believes describe the worker being assessed. A final rating is obtained by averaging the scale values of the items that have been marked. (e) Behaviorally Anchored Rating Scales (BARS): This is a relatively new technique. It consists of sets of behavioral statements describing good or bad performance with respect to important qualities. These qualities may refer to inter-

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personal relationships, planning and organizing abilities, adaptability and reliability. These statements are developed from critical incidents collected both from the assessor and the subject. (f) Assessment centers: This technique is used to predict future performance of employees were they to be promoted. The individual whose potential is to be assessed has to work on individual as well as group assignments similar to those they would be required to handle were they promoted. The judgment of observers is pooled and paired comparison or alteration ranking is sometimes used to arrive at a final assessment. The final assessment helps in making an order-of-merit ranking for each employee. It also involves subjective judgment by observers. A performance appraisal system could be designed based on intuition, selfanalysis, personality traits, behaviourial methods and result-based techniques. Different approaches and techniques could be blended, depending on the goals of performance appraisal in the organization and the type of review. For example, management by objectives, goal-setting and work standard methods are effective for objective coaching, counseling and motivational purposes. Critical incident appraisal is best suited when supervisor's personal assessment and criticism are essential. A carefully developed and validated forced-choice rating can provide valuable analysis of the individual when considering possible promotion to supervisory positions. Combined graphic and essay form is simple, effective in "identifying training and development needs, and facilitates other management decisions.

Components of the appraisal format


Key performance areas, self-appraisal, performance analysis, performance ratings and counseling are the important components of a performance appraisal system oriented to development of human resources in an organization. The appraisal format should be designed in consonance with the objectives of the performance appraisal system, and generate information on a number of important aspects, including:

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Identification of key performance areas The first step in an appraisal process is identifying key performance areas and setting targets for the next appraisal period. This may be done either through periodic discussions or at the beginning of the year, as in research institutions.

Self-appraisal by the subject At the end of the appraisal period, employees appraise their own performance against the key performance areas, targets and pre-identified behaviour. Information on these issues is provided in an appraisal format. The employees also write their self-evaluation reports and hand them to their supervisors.

Analysis The supervisor reflects on the performance of the employee, and identifies the factors which facilitated or hindered the employee's performance. The manager then calls the employee for a discussion to better understand his or her performance and provide counseling on further improvements. During this discussion, appraisal records (such as notes, observations, comments, etc.) are exchanged. The manager then gives a final rating and recommendations regarding the developmental needs of the individual. These are shown to the subject and his or her comments are recorded on the appraisal form. The appraisal form is then transmitted to the personnel department for the necessary administrative action. The personnel or human resource development department uses these forms for identifying and allocating training, rewards and other activities.

Identification of training needs : The use of a development-oriented performance appraisal system is based on a good understanding of the concept of human resources development. The need for developing employee capabilities, the nature of capabilities to be developed, and the conditions under which these capabilities can be developed have to be appreciated. During the discussion between the supervisor and the employee, the development needs of the subject are identified and goals set for the next period.

Identification of qualities: The supervisor may also identify the qualities

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required for current as well as future tasks, and assess the employees potential and capabilities to perform jobs at higher responsibility levels in the organization.

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EMPLOYEES WELFARE
"The development of harmonious relations will lead to develop healthy relationship between the two groups of industry and paves the way for industrial peace. " The word employee means any productive activity The industrial progress of a country depends to a great extent on a contended employee force. An in different, even if not frustrates and bitter, worker is not only a stigma upon the society, but also a stumbling block to harmonious industrial functioning resulting in strained industrial relations, excessive rate of employee turnover, absenteeism & low employee productivity and it hampers the economic growth of the country.

Welfare
Welfare means faring or doing well. It is a comprehensive term & refers to the physical, mental, moral & emotional well being of a person. WELFARE

Total Concept

Social Concept

Relative Concept

Positive

Total Concept : It is a desirable state of existence involving physical, mental, moral & emotional well-being. Social Concept : Implies the welfare of man, his family & his community each aspect serving as ends and means. Relative Concept : Welfare is related to time and space. Positive Concept : The positive nature calls for the setting up of the minimum disable standards necessary for certain components of welfare.

EMPLOYEE WELFARE

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"It is a state of well-being, happiness, satisfaction, conservation development of human resources." The Oxford Dictionary defines Employee Welfare as betterment of work for employees relates to taking care of the well being of workers by employer's trade union govt. and non-government agencies. The concept of employee welfare cannot be concisely defined because of the relativity of the concept. The working conditions should be such as to safeguard his health and to protect against occupational hazards. Despite phenomenal rise in wages there is still lack of stabilized work force. Employee Welfare is a flexible concept and part of social welfare, conceptually & operationally. Employee Welfare has tremendous potentialities for fostering good Industrial Relations in India. Hence, we might use scientific procedure for Employee welfare and Organization and employee force must be directed in right channels in our fast developing technological machinery.

Scope of Employee Welfare


Employee welfare has become essential of the very nature of the industrial system. The approach to this problem or movement differs from country to country according to the degree of development in a particular country however the need for employee welfare in some way or the other is realized all over the world of the socioeconomic condition and problems which the industrial society has thrown up. Employee Welfare work is increasing with changing opportunities and needs to meet varying situations. It is also increasing with the growing knowledge and experience of techniques. An able I welfare officer would. Therefore, includes in his welfare programme the activities that would be conducive to the well being of the worker and his family. The Scope of Employee Welfare includes: Minimum standards of safety hygiene given under employee registration. Voluntary social insurance scheme.

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Measures for protection of women and young workers. Limitations of hours of work. Paid vacations. Social relationships at work place.

Objectives of Employee Welfare:The aim or objectives of welfare activities is three field: Hurnanitarian- to enable workers to enjoy a future and riches life. Econornic- to improve the efficiency of the workers. Civic- to develop among the workers a sense of responsibility and dignity and thus make them worthy citizens of the nation. In total, we can say that following could be the objectives of the employee welfare activities: To create and improve sound industrial relations. To win over employee's loyalty and increase their morale. To combat trade unionism and socialists ideas. To build up stable employee force, to reduce employee turnover and absenteeism. To motivate the employees by identifying and satisfying their unsatisfied needs. To develop efficiency and productivity among workers. To save oneself from heavy taxes on surplus profits.

BENEFITS PROVIDED TO WORKERS: Educational Facilities Sickness & Maternity Benefit . Provident Fund & Pension Compensation Facility . Leave Facility

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Canteen Facility Drinking Water Facility . Various Allowances

These benefits if provided to worker reduces the rate of: Absenteeism Strengthening of cordial relationship Increases mental efficiency & economic productivity . Developing sense of belongingness Minimizing industrial strike . Better management & workers relationship Thus, we can say that the overall objective of employee welfare activities is to win over the employee's loyalty, to increase productivity, reduce absenteeism and turnover. Promote better relationships with the employees and to enhance the image or create goodwill between employee and mgt. and mgt. and public.

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INTRODUCTION TO COMPANY
Liberty Shoes Ltd. is the only Indian company that is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million. We produce more than 50,000 pairs of footwear a day covering virtually every age group and income category. Products are marketed across the globe through 150 distributors, 350 exclusive showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25 countries including fashion-driven, quality-obsessed nations like France, Italy, and Germany with 50 years of excellence, today Liberty produces footwear for the entire family and is a trusted name across the world. In the domestic market it is one of the most admired footwear brands and holds the largest market share for leather footwear

History:It was the 25th December of 1954 when India was nurturing its growth as a free country, three dreamers in a small town in erstwhile Punjab thought of producing an Indian brand of footwear to make a basic necessity available to their countrymen. Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal allowed their vision to cross every barrier and brought cutting-edge technologies to their own country. Within a short span of time, the name, Liberty became a synonym to quality footwear in the domestic market and this encouraged the company to invest further for enhancing production capacities and to cater to the demands of international markets. With 50 years of excellence, today Liberty produces footwear for the entire family and is a trusted name across the world. In the domestic market it is one of the most admired footwear brands and holds the largest market share for leather footwear.

Corporate Philosophy:
Steeped in a philosophy that has at its core innovation, technology and advancement, we at Liberty, pride ourselves over and above everything else on our healthy and heart-felt respect for the human ethos, which projects itself in the expectancy

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and excitement with which one greets the arrival of the new combined with a sincere and deep regard for the old, which is appreciative of and adopts at every stage the unique balance between modernization and tradition. Liberty as a brand is constantly evolving to keep pace with the changing trends, styles, beliefs, and aspirations of people while maintaining the sanctity of certain traditions like workmanship and good value.

Corporate Saga:With people as its leitmotif, Liberty has for over 50 years, always stayed in touch with the aspirations of every successive generation even as it developed the largest range in the industry catering to every income bracket and age segment. Using the patented 'Human-tech' approach that combines the best of talent with the latest in technology. From the price-conscious, value for money seeking buyer to the trendy, global, priceindifferent customer from the with it all attitude teenager to the conservative seen it all adult, just about everybody today finds a good reason for being in Liberty. Liberty is today consolidating and expanding its following from the fashion alloys to the sidewalks with styles that compliment the newest most happening trends. And also by turning footwear selling into a byword for personalized service in an ambience of five star comfort. This can be experienced in the hundreds of Liberty five star showrooms and shoe stations in India and abroad. But beyond that lies another but equally significant involvement. It's all about making a difference in the lives of thousands of people all over India by ensuring direct and indirect employment. Creating wealth, sharing prosperity, and generating progress. For Liberty, there can be no greater honour than that and no bigger reason for walking tall.

Credo
To ensure that the method we use is the latest technology the world over. To follow the highest standards of honest workmanship in whatever we make. To walk the extra mile to ensure customer satisfaction worldwide. To remain a true cosmopolitanto the spirit. To remain a great corporation to associate with, to work for. To know that

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"We are about people".

Social Responsibility:Liberty conducts its business with honesty, integrity and respect for all those who come in contact with it in course of business. Fully appreciative of the fact that its reputation stems from not just quality products and technological innovations but also from the manner of its dealings with customers, suppliers, government officials and all those who are outside the Liberty Group. Utmost importance is also given to ensuring a safe, healthy and non-discriminatory work environment for all Liberty employees where they are free from harassment of any form by supervisors, seniors, co-workers, customers and suppliers. Ethical standards and practices are rigorously adhered to which is why Liberty finds place in the most favored list of respectable brands like Wal-Mart, Reebok, Nike, etc who recognize it as an Equal Opportunity Employer.

Research and Development:


Liberty 2 way Channel partners dig their feedback deep and constantly. Hammering the string of creative workmen at the manufacturing centers to produce not just faceless shoes dancing down conveyer belts but shoes with character. So the centers have poured 53 years of research and continuous flow of emotions to redefine the R&D center at Liberty puram. Fusing Technology with the sweat of sagacity. Some call it Research and Development wing, some put a price to the investments in the "Emotional technology" that it comes out as. They call the process HUMANTECH and it is priceless. Liberty is also very active in the area of Research and Development and has a number of "firsts" to its credit like: Liberty pioneered the PU (Polyurethane) Technology in India in Footwear Industry in 1982 and today is the largest producer of footwear with this technology in Asia. Liberty has developed, new material TPE (Thermo Plastic Elastomer) for High Quality formal footwear

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

Liberty Enterprises is the only Factory in India having Water Proofing Technology approved by SYMPATEX, a name known for Water Proofing technology world wide.

Liberty Enterprise Management structure is very thin in size comparing with a huge workforce in front line operations.

Design &Development:
Liberty has well established state of the art design centers, which are constantly engaged in designing and developing latest trend setting footwear for the young fashion conscious Indian consumers. On an average 4000 new styles are developed every year out of which roughly 1200 styles are selected and introduced in the market in two seasons i.e., spring/ summer and fall / winter.

Distribution Network:
They have a Distribution Network that rivals the human arterial system. A reticulate network of retailers, showrooms, and exclusive outlets with a reach like a bluegreen marine octopus. A structured 2-Way Feeder-Feedback system that both gives and receives. An organization of our size would have gone Out-of-orbit without a firm after sales Support System. Thanks to the vision and drive of our Corporate Think tank, we now have a sales Network that brings the breath taking world of Super footwear right at your feet, within seconds. A virtual Room Service at zero cost, if you will. A Marketing System that they've conceived and created, it is understandably, the envy of competition.

Strength:
Liberty upgrade and reengineers their designs every six months so that they have something new, with it and futuristic every time one visit them. Their shoes are much more than just bewitching leatherwork .They understand that a shoe for person is an

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extension of his personality. And for one who keeps moving onto to stables of desire loaded with the exciting world fashion trends they craft the dreams with the help of Fashion Technologists shut away not in dream bars but with their heart and minds on the pulse of future fashion.

Product Range
The new range from Liberty is all about style, design, and comfort. The range imbibes the spirit of fun and is trendy to the core. There is a product for every season and occasion.

BRANDS

Coolers are a brand of unisex sandals and slip-ons. Catering to a wide segment across the country Coolers are much sought after not just in the summer season but also during the monsoons and in the coastal regions for their water-resistant property.

Professionals, undertaking high impact, electrical, thermal, chemical or even slippage risks, walking over surfaces or operating in environments that expose them to dangers related to these, use a pair of Boots that they completely rely on. Whether you are a power plant technician, alkali unit worker, or even an X-treme sports practitioner, you will appreciate the safety of FREEDOM Protective Professional Boots. Made from superresilient rubber, blended with PVC, these boots afford the protection that no ordinary

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footwear can provide, no matter how well they are constructed. They are resistant to, electrical shock, mechanical crush, chemical eorrosion and extreme heat and cold. These boots are also anti-static, anti-slippage, non-tearable. FREEDOM offers safety and durability that you may have near experienced before.

One looks at following features


Precision moulded from new generation high resilience, high insulation rubber. Single-piece moulded sole and upper: complete freedom from seepage / permeation or structural separation. Exclusive super tough protective sole with stainless steel midsole. Perforation resistance equivalent to 110daN. Steel toe-cap for enhanced safety. Capable of 1500 daN level crush resistance. Re-infroced heel and instep. Built-in ankle protectors. Thick flexible sole with specially designed foot support for complete walking balance and comfort, even when worn for long periods. Super absorbent, rot-proof inner polyester lining for added comfort. The heel can absorb shocks of up to 20 joules. The specially designed sole has non-slip grooves along with raised front and-back ends for excellent grip on all surfaces including planes, ladders, slush etc.

Designed for maximum safety


FREEDOM protective boots are single-piece moulded from high grade PYC with special blend of rubber. They provide excellent mechanical, chemical and thermal resistance thus ensuring complete safety. They are 100% waterproof and are designed to offer supreme foot comfort and supports as well For a better grip on slopes/inclines, the sole's front and rear ends are slightly raised Optimum clear spacing to avoid build-up of mud and sludge

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Ladder work will be much easier with its Arched non-slip grooves U-shaped heel with shock absorbent. Non-woven, absorbent & rot-proof polyester lining for greater comfort Re-inforced heel & instep Ankle protectors. Flexible, perforation resistant sole Steel Toe-Cap, 1500 daN crushing resistance, 200 Joules shocks resistance. Reflective media providing visibility in fog, smoke and darkness.

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

The brand exhibits the vivacity of children in every way. Colorful and comfortable, the range has smart sandals, elegant sports shoes and bright colored lace up to ensure a formal look for the children.

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A pure male fashion brand, Fortune has the latest styles in formal footwear for men. Its flamboyance gives the brand strong following.

Gliders is a complete range of footwear in itself. Using the trendy EVA technology it comprises of beach wear to casual as well as formal footwear both in leather and other innovative material meant. And is perfect for not just grownup boys and girls but young kids too.

The brand offers women comfortable and fashionable slip-ons, sandals and bellies with neat styling thrown in, not bordering on the bizarre but acceptable across a wide spectrum.

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Liberty's Warrior range has over a short period of time developed a reputation that's an envy of many a competition. The product quality and the range that we produce have gained acceptability across a varied segment of industrial users. Some of the biggest corporate houses of the country are sourcing the footwear for their workforce from us. The product range caters to the building and construction industry, the Oil industry the health care segment. The range has not just safety shoes but foot wear for the executives in the company and special footwear for the nurses and the healthcare segment.

A Windsor shoe embodies comfort and style. With its classic looks that's popular amongst the young executives the Windsor brand of shoes are one of the largest set of Men's shoes sold by Liberty.

Presenting low budget Safety Shoes from the house of Liberty. Workman Safety Shoe is specially designed & developed for Industries like Construction, Engineering, Service sector where contractual workers with limited budget are employed.

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A choicest range of school shoes for both boys and gals in buckled and lace type that makes school going an interesting affair. Available in shining black and pure white, its wide variety makes way for the wonder years of school life.

SENORITA is a brand for the fashion and style conscious young woman. She's comfortable expressing herself and makes life beautiful and invigorating whether at work or home.

INNOVATIVE APPROACHES:
Entire production units of liberty are interlinked by SAP, a unique ERP Solution implemented for the first time in India in a Footwear Industry with all modules related with Finance, Logistics & supply chain. It is rare to see such clean, state of the art production facility in India with following management systems and tools. KAIZEN is implemented since 2000 and in practice throughout the organization. 5 S Concept is introduced and in practice since 2001 and presently in matured stage. The impact of 5 S implementation is visible in all dept. and shop floors of the organization. They may even consider these units are the model units for any Footwear Industry LEAN awareness is existing in all production floors of the organization. Value

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streams are standardized for most of the regularly produced articles. Now the Group is in the process of integrating Lean concept with PP Module of SAP for controlling the flow. ISO 9001:2000 CERTIFICATION is awarded to QMS of one of its units and Group is in the process of getting for other units. Group is having an appointed MR exclusively for monitoring the Quality System. DNV is the Certifying agency and auditors of the QMS. WASTE MANAGEMENT SYSTEM is established in one of their unit and it is a pilot project. Wastage Identification, handling and disposal are documented and monitored by frequent internal audits. WATER MANAGEMENT SYSTEM is existing in the group. Water wastage is almost nil. Land water is re-cycled in most of their operations. ISES-2000 norms are followed to ensure the best Social, Health and Environmental Standards. This standard is monitored by Indo. German Export Promotion Council of India. Liberty is the Committee member for setting the standard for Safety Shoes. The recently released IS: 15298:2000for Safety shoes is followed by Liberty and it is the first in Shoe Industry have applied for Certification to use ISI Mark. ENGERGY MANAGEMENT SYSTEM of Liberty is unique in Footwear Industry. Liberty Units have got lot of incentives / discounts from Haryana State Electricity Board for maintaining maximum Power Factor.

International Experience:
Liberty has more tl1an25 years of experience in Export Business and enjoying Status Holder status as "Recognized Export House" of India. In 80's when Soviet Market was invaded by Indian Exporters, Liberty was the Market Leader in USSR. Liberty is having its own office in Russia and Hungary for more than 2 decades.

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Liberty's major operations are mainly with Europe, Middle East, East African, South African countries and USA. Major brands of Europe, SALAMANDER, JELA, DEICHMANN, ROMlKA and USA brands like TODDWELSH are selling only Liberty Shoes under their brand umbrella.

CONTRIBUTION TO INDUSTRY:
Liberty has pioneered in bringing PU Technology to India. Liberty has given a presentation on Footwear foot prints for the future in Asia Pacific Customer Conference 2000 organized by Huntsman Polyurethanes at Singapore on this technology. SYMPATEX is a patented technology on Water Proofing recognized world wide. Liberty is the only company in India having recognition/approval of SYMPATEX on Waterproofing. Safety Shoes are brought to Indian Market for the first time and an exclusive brand WARRIOR was launched by Liberty in Industrial Segment shoes. Our safety shoes are meeting all DIN/ EN standards in respective segments. PU technology was introduced to Government Sector, Liberty has set the standard as member of the BIS Committee. BIS Standard IS: 15298: 2000, applicable for Safety shoes is the Standard on which Liberty is producing Safety shoes for more than a decade. Liberty Enterprises is the model unit for above Standard and complete testing facility is available only with Liberty in India after FDDI. Liberty is the First Footwear Manufacturing facility in India awarded with the latest ISO 9001:2000 Certification. The first and only footwear Industry in India, having SAP ERP with all modules related to Inward/ Outward supply chain, Materials, Finance and Costing

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SOCIAL CONTRIBUTION:
Liberty Footwear Training Institute formed by our Directors is developing the local public as technicians of Footwear Industry. Management of Liberty Sponsors the children of Liberty Employees for higher studies gives training and employment after graduation in FDDI. Social and Environmental Standard ISES-2000 is in practice with Liberty. This standard is being monitored by Indo German Export Promotion Project in India. The products being used by Liberty are eco-friendly and providing latest technology to Industry when Indian Markets related with Environment & Safety are not even aware about the new standards and technology.

HUMANTECH CENTERS
Liberty has Human tech centers at four locations in India, the latest being the Uttaranchal project which was launched recently to boost the production of world-class footwear. This Greenfield plant near Dehradun will increase the company's existing production capacity of 18 million units pa by 200,000 units. The locations of the four Human-tech Centersare: Gharaunda, Haryana (approx.95 k.m. from Delhi) Libertypuram, Haryana (102 k.m. from Delhi) Kamal, Haryana (124 k.m. trom Delhi) Liberty Vally, Near Dehradunin Uttaranchal Liberty Green, Ponta Sahib Liberty Polyurethanks Roorkee

Gharaunda

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Gharaunda is the first plant of its kind in this part of Asia that is equipped with Desma machines for PU Direct Injection Moulding. Using PUF technology and Computer Aided Systems this vertically integrated plant produces Industrial Safety Shoes that are made to European standards. Sympatex TEX booties as well as ordinary booties are also made here. Beside these Gharaunda has a design center where an ambitious team of young designers working in tandem with experienced technologists.

Libertypuram
About 14 km from Kamal this Human tech center, spread across 50 acres of landscaped greens, has 16 lines for Cement Last Construction footwear, 15 lines for Direct Injection Moulded footwear and 3 lines for EVA Direct Injection footwear. It is a manufacturing base for slippers and sandals that put the Chinese sheet slippers to shade, teenager's shoes with very light PVC soles as well as leather soles, shoes for both sexes as well as booties for ladies.

Karnal
Liberty's first manufacturing center caters essentially to the domestic market and produces Cement Last Construction as well as leather sole footwear for both men and women.

Dehradun
This new Human tech center makes Cement Last Construction footwear as well as the comfort range of sandals for ladies. It will soon also produce sports shoes for the likes of Reebok and Nike as well as for the domestic market.

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PERFORMANCE MANAGEMENT SYSTEM AND EMPLOYEE WELFARE AT LIBERTY SHOES LIMITED

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PRESENT EXISTING SYSTEM


LIBERTY considers its employees as the most important asset. The company ensures the complete satisfaction of the employees so that productivity is maximized. This is made possible by management by providing healthy climate for individual growth and development in the company. There is good relationship between employer and employee.

OBJECTIVES OF PERFORMANCE APPRAISAL:


To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management- employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

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1)

ESTABLISHING PERFORMANCE STANDARDS


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

standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. KPAs are set for each employee and they are prioritized. 70% weight age is given to technical skills and 30% weight age is given to behavioral skills. Behavioral skills expected from employees are same for all employees. Assessment is done by the head of department.

2)

COMMUNICATING THE STANDARDS


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

to all the employees of the organization. The employees are informed and the standards are clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards are also communicated to the appraisers or the evaluators and if required. the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators

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FORMAT OF PERFORMANCE APPRAISAL FORM

1.
M.R E.C. S.NO.

Technical KPAs

Key Performance areas & objectives (K.P.A.s)

Measure Target Set (KPI)

Target Achieved

Weightage Week Week 1 2

Week 3

Week 4

Week 5

%age Ach.

Amt.

Amt.

Permissible Qualified

1 2 Total Weightage 70 Excellent 10 Very Good 8 Good Average 6 4 Below Avg. 2

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ii.
M.R.

BEHAVIOURAL KPAs
Total Monthly Week Inc. Val. 4 1100 Week Week Week 3 Week Week 5 1 2 4 Incentive 0.00 Month

S.No. 1 2 3 4 5 6 7 8 9

Behavioral Dimensions Initiative taken in solving difficulties in achieving the objectives. Creativity had shown in solving some problems. Contributions to the building of team spirit (Through working with others) Contributions made to the development of own employees. Assertive (doesnt yield to deviate unless supported by genuine reaons) Sense of responsibility Ability to develop system Problem solving approach Any other outstanding (Leave/ Absent)

Weight age 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 0.00

Amt.

Amt.

Ending % Permissible Qualified

Total 30 Weight age Excellent Very Good Average Below 10 Good 6 4 Avg.

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3)

MEASURING THE ACTUAL PERFORMANCE


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

actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. Supervisors/Head of Departments appraise the employees. Given below is the list of departments in Liberty Shoes Limited and their respective head S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17 17 18 Department Excise Mr. D&D H.R. P.P.C ( Manual) Finance I.S.O (9001:2000) Marketing (Export) Marketing (Dom.) EVA Compounding Stores (Upper & Sole) P.P.C (SAP) EVA Inj. FW Maintenance Material Management PVC Inj. F/W Cutting Closing Fabrication Supervisor Ashok Chawla Mr. Chandresh Sharma Mr. G. S. Saini Mr. Sandeep Kaila Mr. Krishan lal Mr. N. K. Joshi Mr. Naresh Sharma Mr. Amrit Arora Mr. Pardeep (Vicky) Mr. Pritam Sharma Mr. Sandeep Kaila Mr. Suresh Kamboj Mr. Virender Narwal Mr. Anil Agarwal Mr. Suresh Kamboj Mr. S.S. Yadav Mr. A.J. Chisty Mr. Pritam Sharma

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19 20

Quality Stuck-on

Shri N.K. Joshi Mr.. K. Pandey

4)

COMPARING PERFORMANCE

THE

ACTUAL

WITH

DESIRED

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees' performance.

5)

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

one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees' future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

6)

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

improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. If the employee's performance is below desired level then proper training is provided to him.

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KPA BASED COMPENSATION

Average marks obtained in KPA (in %) 100 To 94 To 89 To 84 To 79 To 59 To 49 Or

% of incentive amount achieved 95 150 90 125 85 110 80 100 60 80 50 65 less 50

The motive of defining such compensation system is that if the individuals are performing well and maintain as it is then they should get 100 ~ for the same. They should know their areas of target so that they will improvements/new targets so that they will reach up to the 150%in coming year. Incentives are quarterly calculated.

EMPLOYEE WELFARE
Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. Liberty provides various welfare services to its employees.

SAFETY HEALTH AND ENVIRONMENT COMMITTEE


Environmental Matters

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(a)

To review and monitor the environmental policies and activities of the Corporation on behalf of the Board so that the Corporation is in compliance with environmental laws and legislation;

(b)

To recommend actions for developing policies, programs and procedures so that the principles set out in the Corporation's Environmental Policy Statement are being adhered to and achieved.

(c)

To review and report to the Board on the sufficiency of resources available for carrying out the actions and activities recommended;

(d)

To report regularly and on a timely basis to the Board on matters coming before the Committee relating to environmental policies and activities of the Corporation for consideration and the manner of disposition; and

(e)

To develop a calendar of activities to be undertaken by the Committee for each ensuing year related to environmental matters and to submit the calendar in the appropriate format to the Board within a reasonable period of time following each annual general meeting of shareholders.

Employees' Health and Safety

(a)

To review and monitor the health and safety policies and activities of the Corporation on behalf of the Board so the Corporation is in compliance with applicable laws, legislation and policies as they relate to the health and safety of the Corporation's employees in the workplace.

(b)

To recommend actions for developing policies, programs and procedures to ensure that the principles set out in the Corporation's policies related to the health and safety of its employees in the workplace are being adhered to and achieved.

(c)

To review and report to the Board on the sufficiency of resources available for carrying out the actions and activities recommended;

(d)

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

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issues and on the state of compliance with applicable laws and legislation and adherence to the policies of the Corporation; and (e) To develop a calendar of activities to be undertaken by the Committee for each ensuing year related to employees' health and safety and to submit the calendar in the appropriate format to the Board within a reasonable period of time following each annual general meeting of shareholders.

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ANTI-SEXUAL HARRASMENT COMMITTEE


Anti-sexual harassment committee is responsible for looking in to any complaints filed by employees about sexual harassment at the work place. An employee filing a bonafide harassment complaint shall be protected from reprisals or retaliation as a result of filing the complaint. Investigators will make every effort to strike a balance between the parties' desires for privacy and the need to conduct a fair and effective investigation. Harassment shall subject an employee to disciplinary action up to and including termination. However, if in fact it is determined through the course of the investigation, that the incident and thus the accusation were fabricated, the complainant will face severe disciplinary action up to and including termination.

Complaint and Redressal Mechanism:


Any employee who wants to file a sexual harassment complaint can do by either sending an email to Anil Sexual Harassment Cell or file written complaint with any member of the Cell. The complaint should include the specific nature of the incident, date and place of the incident, names of all parties involved as well as a detailed report of all pertinent facts. Complaints of harassment will be promptly and carefully investigated. Investigation will include interview with all relevant persons, including the accused and other potential witnesses.

TRANSPORT FACILITY
To make employees travel comfortable to and &0 &om work, Liberty provides transportation to its employees. Liberty has its bus service to different parts of the city. The company has formulated an optimized vehicle route for the "Pick Up and Drop" of all employees in the organization The route facilitate the pickup of maximum number of employees Separate bus for female employees

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Separate bus for labour and staff. Records are maintained for in time and out time of vehicles. The distance to the pick up point for every employee is as less as possible Vehicles reach each pick up point at specified time. The distance traveled by every vehicle is optimized All the employees are required to carry their Id cards while travelling in company provided vehicles for safety and security reasons.

CANTEEN FACILITY
To provide healthy and hygienic food to employees the company has open a canteen in its premises from where the employees can get food in subsided cost. The canteen serves tea/snacks/lunch to the employees as per their needs. The idea is to take care of their snacks/food requirements within the premises, facilitating their work. The major conclusion emerging from the study may be summarized as follows: The organization is very conscious about the welfare of the employees working at various levels & takes every step to provide more & more facilities to the workers. There is a statutory liability on the part of employer to provide canteen facilities to workers. Various eatables are provided to workers on cheap rates. Canteen is working on no profit no loss. It is very common that a person cannot work continuously for long period of time, after a certain period of time he feels need for rest. And it has been found better results can be obtained as it not only removes the fatigue but also eliminate the element of monotony and burden.

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Drinking water facility is a pre-requisite of a organization and most of the workers were satisfied and only little percentage was found to be un-satisfied.

In the organization, first-aid & medical facilities provided to the workers are excellent. There are well-equipped dispensaries where proper treatment is provided to workers and their family members.

As for recreational facilities are concerned, there are various types of recreational facilities which are provided to the workers in the organization like worker's club, rest house, sports ground etc.

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

There are proper provisions for the proper disposal of wastes and effluents and arrangement of adequate temperature and ventilation in the factory premises.

Regarding relationship between worker and employer, there is an atmosphere of good harmonious relations which was shared by most of the workers and some were not sharing good vibes with their superiors. Thus, we can say that only a contended labor force can prove a right hand to the

employee in achieving organizational activities. And this contended labor force can be built only when steps are taken for their welfare in every sphere of life. Now company is aware of this fact and i.e. why it is taking every necessary step which is essential for the welfare of its employees.

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BIBLIOGRAPHY
Internet sites
www.libertvshoes.com www.performancemanaqementquide.com www.humanresources.about.com www.allbusiness.com

Books
Rao, TV. "Performance Management and Appraisal System", page no.46 to 50, Response books (2008) Sahus R K., "Performance Management System", page no. 1 to 28, Excel books (2007)

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