1. Snehal Patil | Masters of Labour Studies, B.E (Computers) 1
1. PERFORMANCE MANAGEMENT SYSTEM
There is an online Performance management system named “success factor” in Lupin Limited.
Where employee fills and carry out performance related activity online through this web
application called success factor.
The purpose of the PMS is to improve the company’s results through improved
 Performance planning
 Performance appraisals
 Compensation practices
Performance Management System Process
 Performance is reviewed every year from April to March
 Performance is linked with the workflow of each employee
 Letters are issued in the month of June of every calendar year
 Within forty-five days new joinee has to set the self targets after joining
 After employee sets his goals, progress review is done by the reviewer
 Performance is analyzed based on individual and job environment
 Overall employee performance is evaluated
 Salary is administrated.
 Training and Development plan is prepared to impart training based on performance
evaluation.
Performance appraisal is done as per the below rating scales
PSAP Performance Significantly Above Plan
PAP Performance Above Plan
PMP Performance Meets Plan
PBP Performance Below Plan
PSBP Performance Significantly Below Plan
Based upon the KRA’s assigned to each employee, each KRA is ranked on the adjoining scale as
per the below matrix
Rating and its equivalent points Score range for “Overall
Rating"
Rating Points Rating Score
PSAP Performance Significantly Above Plan 5 PSAP 451-500
PAP Performance Above Plan 4 PAP 351-450
PMP Performance Meets Plan 3 PMP 251-350
PBP Performance Below Plan 2 PBP 151-250
PSBP Performance Significantly Below Plan 1 PSBP 100-150

2. Snehal Patil | Masters of Labour Studies, B.E (Computers) 2
2. RESEARCH METHODOLOGY
Type and Nature of Research: The present study is descriptive and quantitative in nature
Sampling Procedure:
Sampling Frame- Employees of Lupin, Tarapur
Sample Size- The sample size is 120
Sampling Method:
Various Employees were selected from different departments on random selection under the
random sampling method. It is impossible to use the census method to collect the information.
Therefore, random sampling is done.
Areas covered:
For this survey I have covered mostly all the departments of the organization- Lupin, Tarapur
Following are the number and name of departments.
Sr.No Department No. of Employees covered
1. Quality Control 20
2. Purchase 8
3. Excise 4
4. MPP3 5
5. MPP5 5
6. CMPP 4
7. MPP8 15
8. MPP7 3
9. MPP6 6
10. Quality Assurance 5
11. PD Lab 20
12. MPP2 9
13. Accounts 6
14. MPP9 6
15. OHC 4
Total 120

3. Snehal Patil | Masters of Labour Studies, B.E (Computers) 3
Sources of Data Collection:
A self administered Questionnaire was used for data collection. Both closed ended and open
ended questions were included in the study. The time constraints and various other factors were
also kept in mind while framing the research methodology.
Analysis Method: Chi square test Analysis Method
In general the chi square analysis is used when there is a need to examine the similarities
between two or more populations or variables on some characteristics of interest. The reason for
using chi square test is to make inference about the population variance. It is the test of
homogeneity to study whether different departmental employees are similar in reference to some
characteristic or attribute. It is used here for testing the independence to determine whether
employee satisfaction or system effectiveness are related or independent.
Data Analysis and Interpretation:
Data Analysis Tool- the Chi Square Test was used for interpretation of effectiveness of
Performance Management System.
Data is analyzed from the set of questions prepared by me under the guidance of my mentor.
The questionnaire form was distributed to employee mentioned in the above table of various
departments to give ratings
The employee has to rate each question on his degree of satisfaction
Ratings
1- Highly Satisfied
2- Satisfied
3- Average
4- Dissatisfied
5- Highly Dissatisfied

4. Snehal Patil | Masters of Labour Studies, B.E (Computers) 4
Question No 1: The appraisal systemin this organization provides an opportunity for each
appraisee to have a clear understanding of what is expected from him by his reporting
Manager during the performance year
Ratings 1 2 3 4 5
Frequency 18 52 34 14 2
Ei=120/5=24
Oi Ei Oi-Ei (Oi-Ei)^2 (Oi-Ei)^2/Ei^2
18 24 -6 36 0.0625
52 24 28 784 1.361
34 24 10 100 0.173
14 24 -10 100 0.173
2 24 -22 484 0.840
Total 2.6= X2
0
10
20
30
40
50
60
Degree of
Effectiveness
E1 1 E41 4 E81 1
E2 2 E42 4 E82 3
E3 1 E43 3 E83 1
E4 2 E44 2 E84 3
E5 3 E45 2 E85 3
E6 5 E46 2 E86 2
E7 4 E47 2 E87 2
E8 3 E48 2 E88 2
E9 3 E49 3 E89 2
E10 3 E50 3 E90 2
E11 3 E51 2 E91 4
E12 2 E52 3 E92 2
E13 3 E53 2 E93 2
E14 1 E54 3 E94 3
E15 1 E55 3 E95 2
E16 1 E56 2 E96 4
E17 2 E57 4 E97 3
E18 3 E58 4 E98 1
E19 2 E59 2 E99 2
E20 2 E60 2 E100 4
E21 2 E61 2 E101 4
E22 2 E62 2 E102 1
E23 2 E63 2 E103 2
E24 2 E64 1 E104 1
E25 1 E65 1 E105 2
E26 5 E66 2 E106 2
E27 2 E67 3 E107 1
E28 3 E68 4 E108 2
E29 2 E69 1 E109 4
E30 2 E70 3 E110 4
E31 3 E71 2 E111 2
E32 2 E72 2 E112 2
E33 2 E73 1 E113 3
E34 4 E74 3 E114 2
E35 2 E75 3 E115 4
E36 3 E76 3 E116 2
E37 2 E77 3 E117 3
E38 3 E78 3 E118 3
E39 3 E79 2 E119 1
E40 3 E80 1 E120 2
Total 290
Chi Square Test Analysis
Hypothesis: Lupin employees are satisfied with
the appraisal system which provides an
opportunity to have a clear understanding of
what is expected from him by his reporting
Manager during the performance year.
Degree of Freedom (v) =n-1=5-1=4
V=4, X2, 0.05=9.49(Tabulated)
Interpretation: The calculated value of X2 is
less than the tabulated value. Hence, the
hypothesis holds true.
Conclusion: Lupin employees’ feels appraisal
system is effective to have a clear
understanding of what is expected from him by
his reporting Manager during the performance
year.

5. Snehal Patil | Masters of Labour Studies, B.E (Computers) 5
Question No 2: The appraisal systemprovides an opportunity for self review and reflection
Ratings 1 2 3 4 5
Frequency 22 53 28 15 2
Ei=120/5=24
Oi Ei Oi-Ei (Oi-Ei)^2 (Oi-Ei)^2/Ei^2
22 24 -2 4 0.0069
53 24 29 841 1.460
28 24 4 16 0.027
15 24 -9 81 0.140
2 24 -22 484 0.840
Total 2.47= X2
0
10
20
30
40
50
60
22
53
28
15
2
Degree of Effectiveness
E1 1 E41 4 E81 2
E2 2 E42 3 E82 4
E3 2 E43 4 E83 1
E4 3 E44 3 E84 3
E5 1 E45 2 E85 4
E6 5 E46 2 E86 1
E7 2 E47 3 E87 1
E8 3 E48 3 E88 3
E9 2 E49 4 E89 3
E10 2 E50 2 E90 2
E11 3 E51 2 E91 4
E12 1 E52 4 E92 2
E13 2 E53 2 E93 1
E14 2 E54 3 E94 2
E15 1 E55 3 E95 2
E16 3 E56 1 E96 4
E17 3 E57 4 E97 2
E18 3 E58 3 E98 1
E19 2 E59 2 E99 2
E20 2 E60 2 E100 3
E21 2 E61 2 E101 4
E22 3 E62 2 E102 1
E23 4 E63 2 E103 1
E24 2 E64 1 E104 1
E25 1 E65 1 E105 2
E26 2 E66 1 E106 3
E27 2 E67 4 E107 1
E28 2 E68 3 E108 2
E29 2 E69 2 E109 3
E30 2 E70 3 E110 3
E31 4 E71 2 E111 1
E32 2 E72 1 E112 2
E33 2 E73 2 E113 4
E34 3 E74 3 E114 2
E35 2 E75 2 E115 5
E36 3 E76 2 E116 2
E37 3 E77 2 E117 2
E38 2 E78 2 E118 4
E39 2 E79 2 E119 1
E40 3 E80 1 E120 2
Total 282
Chi Square Test Analysis
Hypothesis: Lupin employees are satisfied with
the appraisal system which provides them an
opportunity for self review and reflection
reviews would be effective
Degree of Freedom (v) =n-1=5-1=4
V=4, X2, 0.05=9.49(Tabulated)
Interpretation: The calculated value of X2 is
less than the tabulated value. Hence, the
hypothesis holds true.
Conclusion: Lupin employees are satisfied and
feel that appraisal system is effective for self
review and reflection.

6. Snehal Patil | Masters of Labour Studies, B.E (Computers) 6
3. COMPARATIVE DATA ANALYSIS
Question No Chi Square Test Score Weighted Average Score
1. 2.6 2.4
2. 2.47 2.3
3. 1.92 2.3
4. 2.17 2.5
5. 2.75 2.4
6. 1.62 2.4
7. 1.96 2.4
8. 3 2.5
9. 2.24 2.5
10. 2.26 2.5
11. 1.9 2.9
12. 2.82 2.7
13. 2.77 2.6
14. 1.77 2.4
15. 2.23 2.5
16. 2.11 2.4
17. 1.95 2.4
18. 3.06 2.5
19. 3.95 2.5
20. 3.2 2.5
21. 2.74 2.4
Mean 2.45 2.47
Median 2.26 2.5
The mean is the average
The median is the middle of a the data
Note: Weighted Average Score is a total score divided by 120
Example: Q.1 Total Score=290 Therefore, Weighted Average Score 290/120=2.4
0%
57%
38%
5%
Degree ofEffectiveness ofthe Performance Management System ofLupin
Highly Satisfied
Satisfied
Average
Dissatisfied
Highly dissatisfied