Competency Based Performance Management System: An Initiative Towards A High Performing Ofganization.

Ph.D. Ph.D. Thesis Thesis “COMPETENCY BASED PERFORMANCE MANAGEMENT “COMPETENCY BASED PERFORMANCE MANAGEMENT SYSTEM: AN INITIATIVE TOWARDS SYSTEM: AN INITIATIVE TOWARDS A HIGH PERFORMING ORGANIZATION”. A HIGH PERFORMING ORGANIZATION”. Thesis submitted to the North Orissa University in partial fulfillment of the requirement for the award of the Degree of DOCTOR OF PHILOSOPHY in COMMERCE AND MANAGEMENT by Sukanta Mishra Registration No. Comm./26/Ph.D./2010 (Under the Supervision of Dr. Hrusikesh Behera & Dr. Chandan Kumar Sahoo) Sukanta Mishra Department of Commerce and Management North Orissa University Sriram Chandra Vihar, Takatpur, Baripada, Mayurbhanj, Odisha : 757 003. December, 2017 2017

“COMPETENCY BASED PERFORMANCE MANAGEMENT SYSTEM: AN INITIATIVE TOWARDS A HIGH PERFORMING ORGANIZATION”. Thesis submitted to the North Orissa University in partial fulfillment of the requirement for the award of the Degree of DOCTOR OF PHILOSOPHY in COMMERCE AND MANAGEMENT by Sukanta Mishra Registration No. Comm./26/Ph.D./2010 (Under the Supervision of Dr. Hrusikesh Behera & Dr. Chandan Kumar Sahoo) Department of Commerce and Management North Orissa University Sriram Chandra Vihar, Takatpur, Baripada, Mayurbhanj, Odisha : 757 003. December, 2017

Dr. Hrusikesh Behera Mobile No.: 9437956374 Former Principal & E-mail: [email protected] Reader in Commerce MPC Autonomous College, Baripada CERTIFICATE This is to certify that the thesis titled “COMPETENCY BASED PERFORMANCE MANAGEMENT SYSTEM: AN INITIATIVE TOWARDS A HIGH PERFORMING ORGANIZATION” which is being submitted by Shri Sukanta Mishra in partial fulfillment of the degree of Doctor of Philosophy in Commerce & Management is a record of his own research work and within the area of the proposed research under our supervision and the plagiarism is within admissible limit. The matter embodied in the thesis has not been submitted to any other University or Institution for the award of any other Degree/Diploma. Place : Balasore Dr. Hrusikesh Behera Date : 05/12/2017 Supervisor i

Dr. Chandan Kumar Sahoo Mobile No.: 9438084429 Associate Professor & Former Head E-mail: [email protected] School of Management NIT, Rourkela-760008 [email protected] CERTIFICATE This is to certify that the thesis titled “COMPETENCY BASED PERFORMANCE MANAGEMENT SYSTEM: AN INITIATIVE TOWARDS A HIGH PERFORMING ORGANIZATION” which is being submitted by Shri Sukanta Mishra in partial fulfillment of the degree of Doctor of Philosophy in Commerce & Management is a record of his own research work and within the area of the proposed research under our supervision and the plagiarism is within admissible limit. The matter embodied in the thesis has not been submitted to any other University or Institution for the award of any other Degree/Diploma. Place : Rourkela Dr. Chandan Kumar Sahoo Date : 05|12|2017 Co-Supervisor ii

DECLARATION I, Shri Sukanta Mishra declare that the thesis titled “COMPETENCY BASED PERFORMANCE MANAGEMENT SYSTEM: AN INITIATIVE TOWARDS A HIGH PERFORMING ORGANIZATION” is the bona fide record of the original research work carried out by me under the guidance of Dr. Hrusikesh Behera & Dr. Chandan Kumar Sahoo, and it has not been submitted elsewhere for the award of any Degree/Diploma and the plagiarism is within admissible limit. Place : Baripada Sukanta Mishra Date : 05-DEC-2017 Doctoral Scholar, Regn. No. Comm./26/Ph.D/2010) iii

ACKNOWLEDGEMENT “Vital to Every Operation is Co-operation” - I really agree to this wonderful quotation put forth by Mr. Frank Tyger. This article was successful due to the co-operation extended by people who have truly contributed towards it. I wish to express my heartfelt gratitude and thanks to the following people who have provided me with the encouragement and support in many different ways to complete this thesis. I am very much thankful to my Supervisor Prof. (Dr.) Hrusikesh Behera, Ex-Principal, MPC (Autonomous) College, Baripapda; for his guidance, support and encouragement as well as giving valuable inputs to my study, throughout the entire process of writing this thesis, despite his tight schedule. Much is credited to his tolerance and enthusiasm in making the whole research journey an exciting, rewarding and enjoyable experience. He has made this journey a meaningful and memorable one. I am especially indebted to my Co-supervisor Prof. (Dr.) Chandan Kumar Sahoo, Department of Business Administration, School of Management, NIT, Rourkela; for his constant guidance, inspiration and limitless support and patience throughout the period of my study. His invaluable comments and enlightening suggestions have helped improve the quality of this thesis. There is no way that I would be able to repay the kindness and caring that he has shown to me and also thankful to others in the School of Management, NIT, Rourkela who have helped me in some way or another. I want to thank the Management of Rourkela Steel Plant, who gave me the permission to conduct research. I would also like to thank all the employees and HR executives who empowered me with valuable information. And finally thanks to the respondents for their willingness to share some of their thoughts and experiences, which have made my data collection easier than I would ever have thought. The experience that I have obtained during the process is such a memorable one. I express my sincere thanks to the authors whose works have provided me a clarity and understanding of the research problem and to move in the right direction. I am equally obliged before the authorities of North Orissa University, Baripada, Odisha for allowing me to conduct the Doctoral Research. I express my acknowledgement and sincere thanks to madam Prativa Dehuri, daughter Anannya Anindita and tiny son Sai Anurag, of Prof. (Dr.) Chandan Kumar Sahoo as well as his brother-in-law Rajeeb Lochan and sister-in-law Madhusmita, for being the source of inspiration and encouragement towards initiation and continuation of my study. Special Thanks must go to Prof. (Dr.) Sitaram Das, North Orissa University, Baripada and Dr. Ashok Kumar Panda, Rourkela Steel Plant, Rourkela as well as my relations and friends, who perfectly understand my situation. They have always supported me because they believe in me and they have shown their unconditional love towards me. I also wish to extend my heartfelt thanks and appreciations to many people who provided guidance, inspiration and unwavering support on the long journey from primordial idea to a complete thesis. The doctoral degree is a key milestone that could not have been achieved without their invaluable inputs and supports. iv

Most importantly, I express my acknowledgement and sincere thanks to my mother-in- law Biva Rani Dash, for her unconditional love, endless support and pride in me. I would also like to express special thanks to my two brother-in-laws Ashim & Amal, their wives Sushree & Mammy and son Gudu & daughter Anny; for their love, support and cooperation throughout the research journey. My sincere appreciation goes to my uncle Dr. Bana Bihari Satapathy, who has been supportive and really encouraged me even when the circumstances appeared to be difficult. Also, special thanks to his wife (my aunt) Sukesini and eldest uncle Laxmikanta Satapathy & aunt, youngest uncle Ashwini Kumar Satapathy & aunt as well as nearest & dearest uncles & aunts, elder brothers & sister-in- laws, cousin brothers & sisters and nephews & nieces, for providing inspirations on successful completion of this Thesis. Last but not least, I can never end enough words to express how grateful I am for the endless support of my family. My father, Subas Chandra Mishra has always provided me with unconditional love, encouragement, support and cooperation throughout the research journey. It would have been much harder to complete the research without the support and cooperation from him. I also wish to extend my heartfelt thanks and appreciation to my younger brother Srikanta, sister-in-law Santoshini and niece Sagarika for their love, encouragement, and concern for me. As always it is impossible to mention everybody who had an impact to this work however, there are those whose spiritual support is even more important. I would like to express my deep thanks and gratitude to my heavenly grandparents who had been a source of encouragement and support during my whole studies. Without their love and faith, I would not have been where I am today. A very special thanks for my Heavenly Mother Krishna Kumari Mishra for her grace, benevolence as well as giving me the determination to overcome many trying moments to pursue my dreams. Heavenly, she has been a source of my inspiration and strength. A Special Admiration goes to my wife Mandira and my son Rajiv, for their tolerance and patience. I appreciate my son, for tolerating my usually long hours of staying away from home. I am especially grateful to my wife and son. Especially, they have come to this World to join the very historic journey of my career life. Without their patience and love, I would not have been able to complete this work. Of course, nothing could have been possible without the grace and blessings of Almighty God and Goddess. All praises, adorations, glorifications and worship belong to him/her. I praise, adore and glorify him/her for his/her help, guide and honour from beginning to the end of the PhD research journey. Place : Baripada Sukanta Mishra Date : 05-DEC-2017 v

ABSTRACT Competency has its origins in the Latin word 'competentia' which means “is authorized to judge” as well as “has the right to speak”. In the present business environment of cut throat competition and globalization, competency based practices have gained much attention from the contemporary organizations, globalization, individualization, digitalization and increasing competition are changing the face of the industry as we know it. They aim at achieving an optimum performance in the long term by developing the skills and competencies of the employees on a continuous basis. Literature and best practices indicate that, to some extent, if employers treat their employees as valued contributors, they tend to remain in the organization. To this end, organizations train, offer competitive compensation plans and increase benefits to secure their employee loyalty.The competency approach to human resources management is not new. A competency is a set of skills, related knowledge and attributes that allow an individual to successfully perform a task or an activity within a specific function or job. A competency based performance management system ensures that the right behaviors have been identified that will drive the best performance, and that those behaviors can be measured effectively followed by the right compensation/reward methods. The success of any performance management system depends upon the stability of its foundation. The most successful systems are built on the belief that there are specific competencies (behaviors that drive success in a given organization, help employees to understand what is expected of them, and provide employees with a road map for success) that represent the observable behaviors necessary to become high performer. Competency-based performance management helps organizations in accomplishment of their vision, mission and objectives. This achievement is possible because competency management enhances worth of human capital by evolving distinct and inimitable human competencies. Performance management system in an employee oriented organization is very important to assess the performance of employees as well as to motivate them to contribute effectively in the organization. In the competitive world today, employee performance is the key for success of an organization. Competency based performance management systems are extensively used for appraising, developing, rewarding and promoting people in most of the organizations. The performance of an employee (executive/non-executive) depends on the competencies, they possess or vi

acquire through the process of development. These competencies are meta, business knowledge, skill/functional, social interaction, cognitive, behavioural and motivational in nature, which further helps in demonstrating a set of behaviour in a particular situation. Therefore, there is a demand for effective and competent executives/non-executives in both public and private organizations. The proposed study is an analytical one which has focused on competency based performance management system. Rourkela Steel Plant (a unit of Steel Authority of India Limited) has been selected for the purpose of study. SAIL is India’s largest steel maker and one of the top steel makers in the world, with a turnover of Rs. 43,910 crores having sufficient facilities for optimum utilization of its human resources. For an objective assessment of the performance and potential of the employees and to distinguish between different levels of performance, the personnel department has followed a comprehensive appraisal system for the employees (executives/non-executives) to ensure an objective assessment of performance and potential of the employees and to integrate company’s and individual goals. The organization has systematic promotion policies for promotion within executives as well as non-executive employees. Besides to motivate the employees for their better performance, HR department takes care for the aspiration of the employees towards promotion, career planning, and succession planning. This study will help the manufacturing units to respond to the upcoming changes and demands of competent executives/non-executives, as well as in enabling efficiency and effectiveness of the organization. The competency based performance management model developed during the progression of this study will boost up individual executive/non-executive performance; especially the lower and middle level executives/non-executives. These competencies will allow the organization to ascertain the critical and strategic competencies, essential for current and future achievement of an organization. Keywords : Competency, Performance Management System, Performance Appraisal, Post Appraisal Measures, Facilitators of Performance Management, Outcomes of Performance Management. vii

AA ABBREVIATIONS AAI ADC Affirmative Action AGM Airports Authority of India AP Assessment and Development Centres API Assistant General Manager API Average Performer ASP American Petroleum Institute BHEL Application Program Interface BIM Alloy Steels Plants BIW Bharat Heavy Electricals Ltd BMP Barsua Iron Ore Mines BOM Bengal Iron Works Co. BPO Boyevaya Mashina Pekhoty BPTG Bolani Iron Ore Mines BRACE Business Process Outsourcing BSE Back Pressure Turbo Generator BSL Business Results Achievement through Competence & Ethics BSP Bombay Stock Exchange CCD Bokaro Steel Plant CCR Bhilai Steel Plant CCSO Coal Chemicals Department CDCP Confidential Character Report CDI Central Coal Supply Organisation CEO Coke Dry Cooling Plant CET Coal Dust Injection CFP Chief Executive Officer CII Centre for Engineering and Technology CIL Chandrapur Ferro Alloy Plant CMO Confederation of Indian Industry CMO Coal India Limited COB Compensation Management of Organization COHC Central Marketing Organisation CPTI Coke Oven Battery CRCA Computerized Heating Control System CRFH Central Power Training Institute CRGO Cold Rolled Close Annealed Cold Rolled Full Hard Cold Rolled Grain Oriented viii

CRM Customer Relationship Management CRNO Cold Rolled Non Oriented Sheets CS Crude Steel CS Customer Satisfaction CSI Customers Satisfaction Index CSR Corporate Social Responsibility DGM Deputy General Manager DRI Direct Reduced Iron DSP Durgapur Steel Plant DV Dependent Variable EC Employee Competency ECO Electricity Company of Ghana ED Executive Director EDO Employee Development of Organization EL Earned Leave EMS Environment Management System EP Exceptional Performer EPA Environmental Protection Agency EPAS Executive Performance Appraisal System EPMS Executive Performance Management System ERW Electric Resistance Weld ESBE Essar Steel Business Excellence ET Employee Training FPM Facilitators of Performance Management GAIL Gas Authority of India Limited GC Galvanized Corrugated GCB Ghana Commercial Bank GM General Manager GOM Gua Iron Ore Mines GP Galvanized Plain GP/GC Galvanised Plain and Corrugated HFW High Frequency Welded HP High Performer HR Hot Rolled HRD Human Resource Development HRIS Human Resources Information System HRM Human Resource Management HSL Hindustan Steel IMS Integrated Management System ix

IOCL Indian Oil Corporation Limited IOW Injury on Works IPM Indicators of Performance Management IPMS Indicators of Performance Management System IPSS Inter Plant Standardization in Steel Industry ISMS Information Security Management System ISO The International Organization for Standardization ISP IISCO Steel Plant ISP Integrated Steel Plant IT Information Technology ITC India Tobacco Company ITD International Trade Division JCSSI Joint Committee of Safety. Health & Environment in the Steel Industry KAM Key Account Management KIOM Kiriburu Iron Ore Mines KPA Key Performance Areas LD Linz and Donawitz LP Labour Productivity LP Low Performer LPE Layer Polyethylene Coating LPG Liquefied Petroleum Gas LW Low Wastage M&As Mergers and Acquisitions MBT Main Battle Tank MC/LC Medium and Low Carbon MEL Maharashtra Elektrosmelt Ltd. MIOM Meghahatuburu Iron Ore Mines MIOM Manoharpur (Chiria) Iron Ore Mines MMTC Metals and Minerals Trading Corporation of India MoU Memorandum of Understanding MTI Management Training Institute MTPA Million Tonnes Per Annum MVA Mega Volt Ampere NALCO National Aluminium Company Limited NSE National Stock Exchange NSENGI Nippon Steel & Sumikin Engineering Co., Ltd. NSR Net Sales Realizations NTPC National Thermal Power Corporation OBBP Ore Bedding and Blending Plant x

OC Organizational Culture OCB Organizational Citizenship Behavior OD Organizational Development ODI Organization Development Intervention OECD Organizations for Economic Co-operation and Development OHSAS Occupational Health and Safety Assessment Series OISL OCL Iron & Steel Limited ONGC PA Oil and Natural Gas Corporation PA Performance Appraisal PAM Performance Appraisal PAS Performance Appraisal Measures PEC Performance Appraisal System PIS Pushing Emission Control PM Personnel Information System PMA PMC Performance Management PMS Profit Margin PP&GAC Performance Management Committee PPE PRD Performance Management System PSE Performance Planning and Goal Alignment Cascade PSU Personal Protective Equipment QMS Performance Review Discussion R&D RCC Performance Standards and Expectations RDCIS Public Sector Undertaking RHOB Quality Management System RMD Research & Development RSP Reinforced Cement Concrete SA R&D Centre for Iron & Steel SAIL Ruhrstahl Heraeus Oxygen Blowing SAILCON Raw Materials Division SAMS Rourkela Steel Plant SAP Social Accountability SCOB Steel Authority of India Limited SD SAIL Consultancy Division SKIIPL Sickness Absence Management System SMART Systems, Applications & Products in Data Processing Steel Corporation of Bengal Standard Deviations SAIL-Kobe Iron India Pvt. Ltd. Specific, Measurable, Attainable, Realistic and Time Bound xi

SMEs Small-and-Medium-Scale Enterprises SMS Steel Melting Shop SPSS Statistical Package for the Social Sciences SRU SAIL Refractory Unit SSO SAIL Safety Organization SSP Salem Steel Plant STG Steam Turbo Generators SW Spiral Welded SWOT Strengths, Weaknesses, Opportunities and Threats T&S Transport & Shipping Division TE Techno Economic TFS Total Factor Score TISCO Tata Iron and Steel Company Limited TMBP Tin Mill Black Plates TMCP Thermo Mechanical Controlled Processing TMT Thermo Mechanically Treated TPD Tons Per Day TPH Tonnes Per Hour TPM Total Productive Maintenance TPS Toyota Production System TPY Tons Per Year TQM Total Quality Management UAE United Arab Emirate UNEP United Nations Environmental Programme VISL Visvesvaraya Iron and Steel Limited WCM Working Capital Management WCP Working Capital Policy WE Workplace Environments WTO World Trade Organization xii

TABLE OF CONTENTS i ii Title Page iii Certificate of Supervisor iv-v Certificate of Co-Supervisor vi-vii Declaration by the candidate viii-xii Acknowledgements xiii-xvii Abstract xviii Abbreviations xix Contents List of Tables List of Figures CHAPTERS TITLE PAGE Chapter - I INTRODUCTION 1-35 1.1 Research Background 2 1.1.1 Competency based Performance Management 2 1.1.2 Performance Management 4 1.1.3 Facilitators of Performance Management System 5 1.1.4 Factors Influencing Performance Management 10 System 1.1.5 Indicators of Performance Management System 17 23 1.2 Significance of the Study 24 1.3 Scope of the Study 25 1.4 Objectives of the Study 26 1.5 Research Methodology 26 26 1.5.1 Research Setting 28 1.5.1.1 Research Design 28 1.5.1.2 Research Universe 29 1.5.1.3 Sampling Method 30 1.5.1.4 Data Sources 1.5.1.5 Questionnaire Design xiii

1.5.2 Data Analysis Tool 31 1.5.2.1 Descriptive Statistics 31 1.5.2.2 Analysis of Variance 32 1.5.2.3 Multiple Regression of Analysis 33 34 1.6 Structure of The Thesis 35 1.7 Limitations Chapter – II LITERATURE REVIEW AND HYPOTHESES 36-100 2.1 Introduction 36 2.1.1 Competency based Performance Management 36 System 41 2.2 Performance Management System 48 2.3 Factors Influencing Performance Management System 48 51 2.3.1 Workplace Environment 55 2.3.2 Employee Competency 58 2.3.3 Performance Standards and Expectations 63 2.3.4 Performance Appraisal 65 2.3.5 Employee Training 69 2.3.6 Post Appraisal Measures 69 2.4 Facilitators of Performance Management System 74 2.4.1 Mission, Vision, Goal and Objectives 78 2.4.2 Organization Culture 80 2.4.3 Organization Development 83 2.4.4 Recognition and Rewards 84 2.5 Indicators of Performance Management System 86 2.5.1 Skilled Manpower 89 2.5.2 Low Turnover 91 2.5.3 Low Absenteeism 93 2.5.4 Improved Morale and Motivation 95 2.5.5 Job Satisfaction and Commitment 2.6 Impact of Performance Management System on 95 Organizational Performance 97 2.6.1 Profit Margin 98 2.6.2 Customer Satisfaction 2.6.3 Low Wastage xiv

2.7 Research Gap 99 Chapter – III ORGANIZATIONAL PROFILE 101-137 3.1 Steel Authority of India Limited 101 3.1.1 Brief Overview 101 3.1.2 Background and History 102 3.1.3 Major Units 103 3.1.4 Vision, Credo and Core Values of SAIL 116 3.1.5 Policies of SAIL 117 3.1.6 Ownership and Management 119 3.1.7 Directorates at Corporate Office and SAIL 120 Board 3.1.8 Operations 121 121 3.2 Rourkela Steel Plant – At A Glance 121 3.2.1 Brief Overview 122 3.2.2 Modernization and Expansion of Rourkela Steel Plant 128 3.2.3 Product Mix of Rourkela Steel Plant 129 3.2.4 Main Products and Services offered by Rourkela Steel Plant 129 3.2.5 Major Units of Rourkela Steel Plant 132 3.2.6 Awards received by Rourkela Steel Plant 132 3.2.7 Organizational Set up of Rourkela Steel Plant 133 3.2.8 Production Performance of RSP 134 3.2.9 Financial Performance of RSP 135 3.2.10 Human Resource at Rourkela Steel Plant Chapter – IV PEPRFORMANCE MANAGEMENT SYSTEM IN 138-170 GLOBAL AND NATIONAL SPHERE 4.1 Performance Management System in International and 138 Domestic Environment 4.1.1 ArcelorMittal 139 4.1.2 Baosteel 142 4.1.3 Nippon Steel and Sumitomo Metal Corporation 145 4.1.4 Ansteel 148 4.1.5 Nucor Corporation 151 xv

4.1.6 ESSAR Steel 155 4.1.7 Jindal Iron and Steel Company Limited 158 4.1.8 VISA Steel Limited 160 4.1.9 Bhushan Steel Limited 162 4.1.10 OCL Iron and Steel Limited 166 Chapter – V PERFORMANCE MANAGEMENT SYSTEM OF 171-195 ROURKELA STEEL PLANT 5.1 Executive Performance Management System 171 172 5.1.1 Performance Planning 174 5.1.2 Assessing and Developing Competencies for 177 5.1.3 the future – Competencies, Potential and 178 Values 179 181 Development Planning 183 5.1.4 On-line EPMS 183 5.1.5 Performance Review and Assessment 185 5.1.6 Final Performance categorization of Ratings by 186 the Performance Management Committee 186 (PMC) 188 188 5.1.7 Communication of Performance Grading to the Executives (Transparency) 5.1.8 Assessing assessors for higher accountability 5.1.9 Leadership Development and Competency Building through 360 Degrees Feedback and Assessment and Development Centres 5.1.10 Team appraisals 5.1.11 Performance linked pay and other rewards 5.1.12 Tenure 5.2 Non-Executive Performance Management System Chapter – VI DATA ANALYSIS AND FINDINGS 196-222 6.1 Demographic Profile 196 6.2 Analysis and Results 197 199 6.2.1 Workplace Environment (WE) 200 6.2.2 Employee Competency (EC) 202 6.2.3 Performance Standards & Expectations (PSE) 203 6.2.4 Performance Appraisal (PA) xvi

6.2.5 Employee Training (ET) 204 6.2.6 Post Appraisal Measures (PAM) 205 6.2.7 Facilitators of Performance Management 207 (FPM) 208 6.2.8 Indicators of Performance Management System 208 (IPMS) 209 6.2.9. Profit Margin (PMA) 210 6.2.10. Customer Satisfaction (CS) 211 6.2.11 Low Wastage (LW) 212 6.2.12 Indicators of Organizational Performance 6.3 Major Findings Chapter – VII CONCLUSION 223-229 7.1 Summary 223 7.2 Recommendations 226 7.3 Conclusion 228 7.4 Scope for Future Research 229 BIBLIOGRAPHY 230-245 APPENDICES 246-251 LIST OF PUBLICATIONS 252 xvii

LIST OF TABLES Table No. Title of the Table Page Table 2.1 Identification Gaps in Literature 100 Table 3.1 Status of Production Performance 133 Table 3.2 Status of Financial Performance 134 Table 3.3 Manpower Status of RSP 135 Table 3.4 Status of Labour Productivity 136 Table 5.1 Status of Competency Weightage 175 Table 5.2 Assessment of Attendance (NE: Technical) 189 Table 5.3 Assessment of Appraisal Factor Score (NE: Technical) 191 Table 5.4 Assessment of Appraisal Rating (NE: Technical) 191 Table 5.5 Assessment of Attendance (NE: Non-Technical) 192 Table 5.6 Assessment of Appraisal Factor Score (NE: Non-Technical) 194 Table 5.7 Assessment of Appraisal Rating (NE: Non-Technical) 194 Table 6.1 Response Rate 197 Table 6.2 Demographic Profile 197 Table 6.3 Scale Reliability 198 Table 6.4 Descriptive Statistics and Correlation Coefficients (WE) 200 Table 6.5 β Coefficients, Collinearity Statistics and Model Summary (WE) 200 Table 6.6 Descriptive Statistics and Correlation Coefficients (EC) 201 Table 6.7 β Coefficients, Collinearity Statistics and Model Summary (EC) 201 Table 6.8 Descriptive Statistics and Correlation Coefficients (PSE) 202 Table 6.9 β Coefficients, Collinearity Statistics and Model Summary (PSE) 203 Table 6.10 Descriptive Statistics and Correlation Coefficients (PA) 204 Table 6.11 β Coefficients, Collinearity Statistics and Model Summary (PA) 204 Table 6.12 Descriptive Statistics and Correlation Coefficients (ET) 205 Table 6.13 β Coefficients, Collinearity Statistics and Model Summary (ET) 205 Table 6.14 Descriptive Statistics and Correlation Coefficients (PAM) 206 Table 6.15 β Coefficients, Collinearity Statistics and Model Summary (PAM) 206 Table 6.16 Descriptive Statistics and Correlation Coefficients (FPM) 207 Table 6.17 β Coefficients, Collinearity Statistics and Model Summary (FPM) 208 Table 6.18 Descriptive Statistics and Correlation Coefficients (IPMS) 208 Table 6.19 β Coefficients, Collinearity Statistics and Model Summary (PMA) 209 Table 6.20 β Coefficients, Collinearity Statistics and Model Summary (CS) 210 Table 6.21 β Coefficients, Collinearity Statistics and Model Summary (LW) 210 Table 6.22 Indicators of Profit Margin 211 Table 6.23 Indicators of Customer Satisfaction 211 Table 6.24 Table 6.24: Indicators of Low Wastage 212 Table 6.25 Predictors and Non Predictors of Dependent Variable 217 Table 6.26 Validation of Hypotheses 218 xviii

LIST OF FIGURES Figure No. Title of the Figure Page Figure 2.1 Job Competency Modeling 40 Figure 2.2 Performance Management System 47 Figure 2.3 Hypothesized Research Model 100 xix

CHAPTER - I INTRODUCTION

CHAPTER - I INTRODUCTION Performance management is about achieving results in a manner that is consistent with organizational expectations. Integrating competencies within the performance management process supports the provision of feedback to employees not only on “what” they have accomplished (i.e., performance goals), but also “how” the work was performed, using competencies for providing feedback. Assessing competencies as a part of performance management is an important means of assisting employees in understanding performance expectations and enhancing competencies. Multi-source feedback, while not an HR application itself, is a method that is often used in performance management to assess and provide employees with feedback on “how” they performed their work (i.e., their demonstration of the competencies). Competency management is defined as a comprehensive human resource strategy that identifies and builds the most relevant competencies to facilitate peak employee and organizational performance. It includes the identification of critical knowledge, skill and attitude that is to be possessed by an employee to perform his role effectively. This may be categorized under the individual, departmental and organizational heads. Grouping the different level competencies may develop a competency model for the organization. The articulated and customized competency model brings out the competency based performance. The competency based performance may be better used to reward, career development, leadership, measuring performance and culture building. In knowledge based economy, organizations have faced critical issues of survival and competence. By implementation of the competence based performance management system, organizations can increase the capability of managing and utilizing the talent of the employees to achieve superior performance. Competencies or talents are the foundation for people to achieve superior performance in any job. Few organizations, based on research and experience, have a performance management system that contains all the elements necessary for a highly productive and motivated workforce. 1

1.1 Research Background 1.1.1 Competency based Performance Management A competency based performance management system (PMS) ensures that the right behaviors have been identified will drive the best performance, and that those behaviors can be measured effectively followed by the right compensation/reward methods. The success of any performance management system depends upon the stability of its foundation. The most successful systems are built on the belief that there are specific competencies (behaviors that drive success in a given organization, help employees to understand what is expected of them, and provide employees with a road map for success) that represent the observable behaviors necessary to be a successful leader in a particular organization. Human resource (HR) professionals will lead the development in a manner that ensures that the specific behaviors that are required for success of any organization are identified, defined and can become ‘institutionalized’ within the business. Developing competency-based performance management system typically involves creating comprehensive competency models for all jobs and assessing employees against those models during annual performance reviews. Employers may use these systems for all staff or restrict their use for only salaried employees. By identifying core competencies that align with the company’s mission, vision and goals, management can consistently and fairly rate employees who contribute to the bottom line. Successful organizations also encourage employees to establish personalized objectives that allow them to develop their abilities while supporting company goals. Lekshmi and Radhika (2016) revealed in their study that competency is widely used in organizations nowadays to improve performance excellence. Competency management is giving better result in performance evaluation of employees as well as effective and efficient organizational performances. The importance of competency based performance management is very much critical in the organization in many scenarios. It includes identification of critical knowledge, skill and attitude, which is to be possessed by an employee to perform his role effectively. Kalyani (2016) mentioned in his research paper that competency management is a comprehensive performance management strategy, which identifies and builds the most relevant competencies to facilitate employee and organizational performance. Szabó (2016) revealed in her study on “Competency management in the HR management of Public Service” that human resource management has most important roles in Public Service Organizations and its 2

purposeful and conscious management is an important factor for organizational success. Berwick-Upon-tweed Town Council, United Kingdom (2016) under Policy Title: “Employee Performance Management & Appraisal” aims to establish a culture of performance management via competency based performance development appraisal reviews, training and development processes, regular one-to-one supervision and effective team meetings. This helps employees to review their performance and focus their development in order to achieve high levels of organizational performance. Kumar and Mishra (2016), discovered in their study that high performance people are critical for organizations to provide world class customers’ service and meet tough challenges due to rapid technological changes and intense competition. Mufti et al. (2016) revealed in their study that organizations around the globe heavily depend on the knowledge, skills, abilities and other characteristics (KSAOs) of their employees for achieving their objectives. A set of these KSAOs is known as competency model. Objectives of the organization can only be achieved in worthwhile fashion if the employees are equipped with the set of required competencies and the competencies are aligned with the organizational objectives. Ghasemi (2016) revealed that competency is defined as a unique personal capability, which creates high value in organization. Competencies are a set of knowledge, skills and capabilities, which allows a person to accomplish in performing the tasks. In recent years, different organizaions have attempted to develop their managers effectively by designing competency pattern. Pujar and Patil (2015) discovered that performance management is a goal-oriented system, which ensures that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization. The successful execution of strategies for growth, new product launches, new areas/markets and collaboration depends on attracting and retaining the right sales force talent, and then rapidly developing the skills and knowledge needed to operate in this new world. Tripathi and Agrawal (2014) focused in their study that the success of an organization depends not only on how the organization makes the most of human competences, but also it stimulates commitment to an organization. Organizations are using competency based management as a tool for the success of the organization. Competency framework is used by the organizations today in different HR practices like recruitment and selection, training and development, performance management, career development, compensation and pay etc. to improve the performance of the organization as well as of employees. Competency based performance 3

management approach focuses on increasing the potential of the employees to have the competitive edge over other organizations in today’s time. 1.1.2 Performance Management Managing performance of an employee is one of the key human resource interventions which contribute to the effective management of individuals and teams in order to achieve high levels of organizational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved. This step includes ensuring that processes such as hiring, assessment, goal setting, 360-degree feedback, development, appraisal, and compensation plans are in support of driving the development of employee competencies. Brahe (2016) revealed in his research on “performance management - deliver results and build a stronger company” that performance management transcends the organizational hierarchy and has the ability to create the organizational “buzz” that keeps everyone focused on the things that matter the most. The essence of PM is easy to grasp, but getting it effectively embedded in the organization, can be difficult. Lelissa and Lelissa (2016) explored the current performance management system, using a modified conceptual framework that links phases of performance management system with employee effectiveness. However, it has a gap with regards to involving employees in planning and objective setting, in using performance management system as a motivation tool and in coaching them towards better performance result in the future. McGuire and Gerrish (2016) stated that performance-based management is pervasive in public organizations and countless governments have implemented PMS with the hope that they will improve organizational effectiveness. Rani and Srivastava (2016) explored that performance management basically refers to the process of measuring, managing and developing the performance of the employees. It is the ongoing process of communication between the supervisors and its subordinates to make decisions and strategically achieving the objectives. Pujar and Patil (2015) defined performance management is a goal-oriented system, which ensures that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization. Jurnali and Siti-Nabiha (2015) 4

focused in their study that the regulation of performance management system (PMS) is quite comprehensive, except it lacks a punishment and reward system. Buckingham and Goodall (2015) realized that the system for evaluating the work of employees and then training them, promoting them, and paying them accordingly. It searched for something nimbler, real-time, and more individualized, something squarely focused on fueling performance in the future rather than assessing it in the past. The process of evaluating the performance of the employees is called as performance appraisal. Evaluating the performance of the employees helps in finding the areas in which there is need to give training to the employees, which will help the employees to increase their skills and develop themselves. 1.1.3 Facilitators of Performance Management System A performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organization’s mission and objectives and making the employee and the organization understand the importance of a specific job in realizing outcomes. Mission, vision, goal and objectives, organization culture, organizational development, recognition and rewards are the facilitators of performance management system. Vision, Mission, Goals and Objectives The terms, “vision, mission, goals and objectives” have great importance in management literature. Understanding these terms will not only lead a person to get the conceptual meaning being associated with them, but it will also be complementary in many ways. Hofstrand (2016) stated that the first statement is “A statement of Vision”, which provides a destination for the organization and the next is “A statement of mission”, which is a guiding light for getting the destination. Thus Vision is “big picture of what you want to achieve” and Mission is “general statement of how you will achieve the vision”. Goals – These are general statements of what needs to be accomplished to implement a strategy; Objectives – Objectives provide specific milestones with a specific timeline for achieving a goal. Alam and Alabdulaali (2016) revealed that strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. “The best way to predict the future is to create it”. “The best way to create the future is by strategic planning”. Vision 5

outlines what the organization wants to be in the future. Mission explains who we are and what we do. Rego et al. (2015) explored that management depends on choices, on the hierarchy of actions, goals and values on which these decisions are founded, because values guide our actions. Their study aims to identify the contents exposed in the vision, mission and values of an organization. Siddiqui (2015) stated that the terms, vision, mission, goals and objectives have great importance in management literature. Understanding these terms will not only lead a person to get the conceptual meaning being associated with them, but it will also be complementary in many ways. Being used across an enterprise, the aforementioned terms have a lot to do with a business having a significant impact on both short term and long term success of a business including its performance and processes. Shahmehr et al. (2014) revealed that in the last 20 years tremendous changes have occurred in the two fields of performance appraisal and performance management. These changes can be observed both in managerial practices and academic researches. The majority of organizations have a long path to establish a system of performance management because this system is not only to evaluate the organizational performance, but enables managers to follow up the targeted mission. Sonkiya (2014) mentioned that vision, mission and objectives are frequently used terms and people use these terms interchangeably and that make them confuse. Therefore, they find difficulty to relate strategies and tactics with these terms and this is where the things go wrong as it mixes up the meanings and create confusions. Vision, Mission, Objectives, Strategies and Tactics – these are five statements which form the two aspects of the business - What the organizations want to achieve – reflected by Vision, Mission and Objectives & how they are going to achieve the above “what” reflected by the strategies and tactics as these are long term and short term implementation plans respectively. Organizational Culture “Organizational culture” is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behavior of the members of the organization. 6

Alas et al. (2016) stated that over the last decade, workplace spirituality has become a buzzword in business and organization literature. Furthermore, many studies have affirmed its significance in satisfying individuals’ inner feelings and self- actualization. As organizational culture represents the personality of any organization, it has a tremendous role in shaping current and future organizational orientation. Rovithis et al. (2016) revealed that organizational culture is a multidimensional concept that has emerged independently in several disciplines ranging from social anthropology to organizational psychology. It can be defined as the set of beliefs, values, behavioral patterns and assumptions shared by the members of an organization. Giri et al. (2016) analyzed the influence of organizational culture on organizational commitment, knowledge sharing and employee performance; the effect of job involvement on organizational commitment, knowledge sharing and employee performance; the effect of organizational commitment to knowledge sharing and employee performance; and the effect of knowledge sharing on employee performance. Violinda et al. (2016) mentioned that differentiation strategic and organizational culture is one of the key in searching for competitive advantage and performance in strategic management. Jwijati and Bititci (2015) explored that despite referring to organizational culture (OC) as the key factor for successful implementation of performance measurement systems (PMS) and acknowledging the dyadic relationship between PMS and OC, there is dearth of articles describing the relationship between various types of organizational culture and PMS. Lapina et al. (2015) mentioned that organizational culture is directly connected with effectiveness and performance of the organization – the stronger is organizational culture, the more effective is organization. Schneider et al. (2013) stated in their study on “Organizational Climate and Culture”; that the article is first framed with definitions of the constructs, and preliminary thoughts on their interrelationships are noted. Organizational climate is briefly defined as the meanings people attach to interrelated bundles of experiences they have at work. Organizational culture is briefly defined as the basic assumptions about the world and the values that guide life in organizations. Shahzad et al. (2012) discovered on defining and measuring of organizational culture and its impact on the organizational performance, through an analysis of existing empirical studies and models link with the organizational culture and performance. In order to aid long-term performance, there are three main criteria needed to develop a suitable culture: it must be strategically relevant; it needs to be strong in order 7

that people care about what is important; and the culture must have an intrinsic ability to adapt to changing circumstances. Culture impacts most aspects of organizational life, such as how decisions are made, who makes them, how rewards are distributed, who is promoted, how people are treated, how the organization responds to its environment, and so on. Organizational Development “Organizational Development” is a field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance. OD is a process of continuous diagnosis, action planning, implementation and evaluation, with the goal of transferring knowledge and skills to organizations to improve their capacity for solving problems and managing future change. Minhas (2016) mentioned that organization development (OD) is a growing field of human resource management. It has its foundations in a number of behavioural and social sciences. OD helps organizations deliver sustainable performance improvement through people. Lewis (2016) discovered OD is a term that has somewhat fallen out of favour with current thinking in management and OD practitioners focused on the individual as well as their concerns and assumed that this would automatically lead to changes in the organization. It has been mentioned in “organization development” - the Factsheet of CIPD, UK (June 2016), that organization development isn’t a new discipline and has always had a focus on people. OD supporters argue that its strength is its ability to transcend functional boundaries within organizations and as such it may be counter-productive to anchor it in the HR function. Rothwell et al. (2016) explored on organization development (OD), transformation, and change. The various definitions of OD presented imply several key themes: OD is long-range in perspective, works best when supported by senior leadership; an effect change primarily through education, emphasize employee participation, and empowers the system to take responsibility for creating and evaluating results. Varshney (2015) mentioned that organizational development is a group of planned change methods that aims to enhance the organizational effectiveness and the general employee quality of work life. One of the major interventions of OD is structural intervention. It consists of a revision or modification in the organizational structure to achieve the transformation related goals. Vinesh (2014) revealed that training and 8

development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational setting. Idris et al. (2014) explored that organization development intervention (ODI) is a deliberately planned, organization-wide effort to increase an organization's effectiveness or efficiency. In order to revive the organization from low level of profitability, frequent conflicts among the stakeholders, customers’ dissatisfaction / low quality of service and high unethical practices among the staff to mention just a few, the study becomes pertinent. Recognition and Rewards “Employee rewards and recognition system” is not just a positive thing to do with people, but communicating it effectively is an efficient tool in encouraging them to create and bring business success. Treating the employees like valuable assets and maintaining harmonious relationships with them doesn’t only yield business in present but also an effective strategy for future. Ndungu (2017), explored that various studies have explored the concept of staff reward and recognition schemes and the effect they have on staff motivation and performance. Attention has also been given to how these programs contribute to the overall realization of organizational goals. David et al. (2015) revealed that human resources are the most important among all the resources an organization owns. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help to make an organization competitively more value added and profitable. Reward management is concerned with the formulation and implementations of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. Edirisooriya (2014) mentioned that human resource is considered as a strategic asset in any organization because the accomplishment of an organization’s objectives largely depends on employees. Therefore, it is important to identify factors which motivate employees for achieving goals. Mehmood et al. (2013) discovered that managing performance in an organization is performed through reward system. The research enables to understand the current needs of an organization and its employees, their low productive behavior and the way how this behavior could be altered and how to make their performance boost up to the organizational needs and demands. Njanja et al. (2013) revealed that today’s organizations are operating in a very dynamic and highly 9

competitive environment. To remain relevant in the market, they have to be able to respond quickly to ever changing customer demands. Reward management is one of the ways used by organizations for attracting and retaining suitable employees as well as facilitating them to improve their performance. It has been explored by Pratheepkanth (2011), that, organizations are increasingly realizing to establish an equitable balance between the employee’s contribution to the organization and the organization’s contribution to the employee. Establishing this balance is one of the main reasons to reward employees. Organizations that follow a strategic approach to creating this balance focus on the three main components of a reward system, which includes, compensation, benefits and recognition. 1.1.4 Factors Influencing Performance Management System The various factors which are affecting the performance management system of any organization are the following: Workplace Environment Rismawati (2016) in her study reflected the effect of the work environment, compensation and employee performance against the working ethos. It has also been revealed that the independent variables (work environment, compensation and working ethos) jointly have the positive and significant effect on the dependent variable (employee performance). Sharma (2016) has given emphasis on the dimensions of workplace environment in terms of physical as well as behavioral components. It has also been revealed in his studies that the workplace environment impacts employee morale, productivity and engagement – both positively and negatively. The aim of the study of Madan and Bajwa (2016a) is to investigate and understand the various factors that have impact on employee job performance. The factors which have direct impact on the performance of employees are stress, training, motivation, leadership, emotional intelligence and working environment. Further, it has been revealed that there is a direct impact of HR practice on the performance level of employees, which affect the working environment (Madan and Bajwa, 2016b). It has been stated by Sridarran (2016) that ‘stress’ is not an extraordinary thing in a workplace. It can be within every organization. Most organizations do not give their consideration regarding this matter. Ultimately it creates a stress related cost to the organization. Work environment is more and more complex and dynamic, employees feel high level of stress when they are given targets and 10

deadlines. Chandra and Priyono (2016) stated that many factors affect the performance of employees in a work such as working environment. To implement the job effectively and efficiently, the existence of a working environment is required, which is capable of supporting implementation work properly. The emergence of a reaction in the form of attitude, intensive turnover, organizational commitment and job satisfaction are decreased over the existence of the perception of job insecurity, which is correlated negatively with the performance and positive with the absences. Raziq and Maulabakhsh (2015) revealed that in the modern era, organizations are facing several challenges due to the dynamic nature of the environment. Working environment has a positive impact on the job satisfaction of employees. The study impacts upon the future performance of businesses, by taking working environment more seriously within their organizations, to increase the motivation and commitment level of their employees. Jain and Kaur (2014) discovered that work environment can implicate the social relation at workplace and also maintain the relationship between colleague, supervisor and the organization. It has also been mentioned in the study that a satisfied, happy and hardworking employee is biggest asset of any organization. Employee Competencies Developing competencies of the employees by training and motivating, lead to organizational success, organizational effectiveness and efficiency. Employee competencies are those traits, skills or attributes that employees need to perform their jobs most effectively. Prasad et al. (2016) the performance appraisal system (PAS) is a development tool used to measure the actual performance in an organization, aligning the strategic goals with that of individual performance. Using PAS an employee’s performance is measured against core competencies of the individuals. Singh and Malhotra (2016) revealed that the organizational success earlier depends on physical & financial asset and today the success is dependent on the intangible ability and capability that lies in the capital and manifest in the form of competency. Maran et al. (2016) discovered that total productive maintenance (TPM) has been widely renowned as a strategic weapon for improving manufacturing performance to world class level. This study integrates TPM implementation with employee training, empowerment, teamwork, compensation and management leadership in a theoretical model for studying employee competency within the framework of management system. Potnuru and Sahoo (2016) 11

revealed that the impact of human resource development (HRD) interventions on organizational effectiveness by means of employee competencies, are built by some of the selected HRD Interventions. The findings of the study have potential to help decision makers to develop strategies which will enable them to improve employee competency, to formulate effective HRD interventions and to enhance the capability of the employees to achieve desired goals and objectives of the organization. Kalyani (2016) stated that competencies are more enduring than job tasks. Competencies focus on the characteristics of people who are successful or unsuccessful in performing the work and these are part of people, not the work they do. Siahaan et al. (2016) stated that the employee’s performance can be improved significantly, if the company is able to find employees who have sufficient competency and strive always to improve the competence, put employees in the right place, pay attention and provide career development opportunities. Potnuru and Sahoo (2015) focused that, today the functioning of business organizations are changing due to globalization, competitive business environment, information technology revolution, economical changes and development of knowledge sharing and transfer. To survive in the technologically advanced business environment, organizations are struggling to train and develop their talent as quickly, efficiently and effectively as possible. Employee competency constitutes one of the key sources of competitive advantage for an organization. Chandekar and Khatod (2015) discovered that, in this world of cut throat competition, companies and multinationals are putting tremendous effort to hire competent employees and to develop relevant competencies in their existing employees. These are one of the few ways in which companies can gain competitive edge over each other. Performance Standard A “performance standard” is a management-approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance. Performance standards should be objective, measurable, realistic, and stated clearly in writing. The standards should be written in terms of specific measures that will be used to appraise performance. Altrichter and Gamsjäger (2017) emphasized on communication of competence-based output standards, the provision of support material and in-service training opportunities, nationwide comparative competence tests and data feedback of assessments results to students, teachers, schools, and administrative authorities. The paper aims to develop a 12

conceptual model for research into the processes and effects of such a ‘performance standard policy’. It has been mentioned in “A Handbook for Measuring Employee Performance” published by United States, Office of Personnel Management (2017) that employees must know what they need to do to perform their jobs successfully. Expectations for employee performance are established in employee performance plans. Employee performance plans are all of the written or otherwise recorded performance elements that set forth expected performance. It has been published in the journal - ‘Employee Relation/Performance Management Revolution’ of University of South Florida, Division of Human Resources (2016), regarding ‘Staff Performance Management Procedure’ that performance standards and expectations, based on an up-to-date position description, should be clearly communicated to employees at the time of appointment to their position and as they change thereafter. Zumbo (2016) stated that performance standards usually contain performance level, labels such as “pass” or “fail” for two categories, or “beginning”, “intermediate”, and “advanced” if there are more than two categories. To be useful and effective in the standard-setting process, performance standards must include more than just performance labels; instead standards need to include longer elaborations that are intended to more fully describe what the label indicates about what a test-taker can do. Performance Appraisal It is a developmental tool used for all round development of the employee and the organization. Performance is measured against job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health etc. RUSU et al. (2016) stated that employee performance appraisal in the modern business environment has become a part of the performance management process. The main purpose of their paper is to develop a conceptual framework for employee performance appraisal emphasizing the role of the organizational context factors in establishing customized performance criteria. Agyare et al. (2016) explored that, performance appraisal is credited by researchers as a tool for spurring employees towards the attainment of organizational goals. Considering employees’ attitudes as a vital 13

component in the attainment of organizational goals, this study investigated the impacts of performance appraisal on the job-satisfaction and commitment of employees. Majid (2016) discovered that performance appraisal (PA) of employees is one of the most significant HRD practices in organizations, by which employee’s satisfaction and overall development can be managed well. Antwi et al. (2016) mentioned that human resource management (HRM) practices and their impacts on employees’ performance, receive enormous cover. The main objective of the study was to examine the impacts of HRM practices on the performance of employees. Khan and Singh (2016) revealed in their studies that PA deals with all the methods used to evaluate personalities, contributions and capability of groups in any organization. Performance appraisal is a progressive process to obtain important information for making rational and objective decisions on employees. In other words, performance appraisal is the process of assessment of the individual in accordance to his performance on the job and his capacity to develop into something better in future. Singh and Vadivelu (2016) discovered that globalization has created a niche to sustain and enhance human resource since they are the prime contributors to organizational performance. PA has been a significant tool in developing the capabilities of individuals and organizations. Hence, performance appraisal (PA) is extensively used to facilitate salary increments, promotions, staff retention and to reinforce staff behavior. Narban et al. (2016) revealed that the purpose of their study is to explore performance measurement practices. Performance appraisal (PA) is increasingly becoming a part of strategic approach to integrate HR activities and business policies. Khanna and Sharma (2014) stated that the importance of performance appraisal in performance management system is that it plays a vital role in any organization’s human resource framework. Performance management process provides a vehicle through which employees and their supervisors collaborate to enhance work results and satisfaction. Aggarwal and Thakur (2013) discovered that performance appraisal system is used in the organizations to measure the effectiveness and efficiency of their employees. It is needed because every employee has a different attitude to handle the work and tends to improve the work performance, communication expectations, determining employee potential and aiding employee counseling. 14

Employee Training The training process shapes the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature. This is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. Raja and Salah (2016) discovered that the success or failure of modern business organizations depends on the quality of their human resources. Well trained and highly developed employees are considered as corner stone for such success. Tuğçe Güllü (2016) aimed to study the impact of training and development programs on motivation of employees. The research concludes that if the organization having good training and development programs for employees can enhance the motivation of employees that is helpful in increase in motivation of employee as well as of organization. The study of Wamuuru and Jamleck (2016) confirmed that there is a significant direct/positive relationship between the HRM practices and organizational performance. HRM practices have a significant positive impact on organizational performance. This means that training can help employees develop skills needed to perform their jobs, which directly affects the business performance. Bawuro et al. (2016) stated that, training and development is an important aspect in organizational studies. The focus is to investigate what value employees place on training and development during recession, particularly their views on the impact of recession on the level of investment. Kesen (2016) explored that the relationships among employee training, innovation and turnover. Therefore, this study has implications for a variety of practitioners including managers and human resources managers in general. This result indicates that extensive training and training in multiple functions can be used as a tool for decreasing high turnover rates. Ramya (2016) aimed at studying the effect of training on employee performance and investigates the importance of training, identify the significance of employee performance and to provide suggestion as to how firm can improve its employee performance through effective training programs. Asfaw et al. (2015) discovered that the focus of his study was to determine the impact of training and development on the employees’ performance and effectiveness. Training is imparting a specific skill to do a particular job while development deals with general enhancement and growth of individual skill and abilities through conscious and unconscious learning. 15

The main purpose of training and development is by improving the employee competencies so that organizations can maximize efficiency and effectiveness of their human assets. Post Appraisal Measures “Post Appraisal Measures” means after the appraisal takes place, the plan for improvement can be implemented. During this time, managers can regularly keep records of employee performance. These can be informal observations that can aid the manager in gauging employee progress. In addition, employees can have the specific goals for improvement in mind. Periodically, the manager and employee can meet face to face to discuss employee progress. Employees can give feedback on how well they think they are progressing. Sharma (2016) investigates the relationship of performance appraisals, socio- cultural issues, affirmative action (AA), and organizational capabilities in managing diversity and equality in the workplace. As per investigation firstly, performance appraisals were found to be a major source of discrimination especially due to raters’ influence on the actual process. Jency (2016) stated that performance appraisal plays a vital role in any organization’s human resource framework. Performance appraisal is an important tool in the hands of personal management because this technique accomplishes the main objective of the organization to the development of the people by appraising the worth of the individual. Ismail et al. (2016) revealed that performance appraisal communication is a segment of performance appraisal management denoting the process of sharing and transferring appraisal information from appraiser to appraise either face-to- face or through technical and communication gadgets. The traditional performance appraisal was based on past performance of the employees, single-source feedback, non- participation style in decision making and boss-centred approach. It did not consider the development aspects of the employee performance as it was preoccupied with judging the performance of the organization as a whole. Hosain (2016) exposed that the overall performance of a firm is mostly dependent on the individual and group performance of the organization. Performance appraisal is a continuous process of monitoring, managing and correcting the individual performance of entire workforce. Singh (2016) expressed that performance appraisal is a formal and systematic process of identifying, observing, measuring, recording and developing the job-relevant strengths and weaknesses of 16

employees. In order to obtain accurate performance appraisal information, raters must provide objective and unbiased ratings of employees. Narban et al. (2016) explored in their studies that in today’s competitive business world, it is well recognized that organizations can only compete with their rivals by innovating. Organizations can be innovative if they manage their human resources well. Simsit and Vayvay (2015) revealed that nowadays, in the competitive business conditions controlling and improving quality levels of operational processes is not enough to gain advantages among rivals. However, as it is well known fact that performance of employee’s creates a great impulse on improvement, companies also need to examine and evaluate the performance of them as one of the part of their quality management strategies. For enterprises, performance appraisal helps them diagnose whether the adopted strategy and organizational structure will help to achieve their goals. In both ways, performance appraisals directly affect the quality levels in companies. 1.1.5 Indicators of Performance Management System Performance Management is a much broader system as it is linked with the processes of planning, implementing, reviewing and evaluating, for augmenting growth and productivity at both the individual and organizational level. The key indicators of PMS are the following: Skilled Manpower A “skilled or learned worker” is often immediately ready to assume the responsibilities of a new job. On the other hand, unlearned or unskilled employees are usually not yet trained to perform specific jobs. They might lack educational requirements, and some might have language barriers to overcome. Zainab et al. (2016) explored in their research studies that the business is dependent on its manpower for its growth and development along with its future sustainability. Human resource management (HRM) plays a major role in this process where it concentrates on the most important asset for business, manpower for their development and growth. Oseghale et al. (2015) stated that their study investigated the skilled labour requirement in the construction industry. The construction industry occupies a focal position in a nation’s economy and it is an essential contribution to the 17

process of development. Jhawar et al. (2014) explored that the purpose of this paper is to study the impact of development of skilled work force through investment in training, welfare, working conditions, and wages on the logistics performance index. Availability of skilled manpower can improve the logistics performance significantly leading to reduction in logistics cost, logistics time, and making the system more reliable and safe. Mok et al. (2012) explored in their research paper that skills are an important determinant of the economic performance of people, firms, industries and economies. Shortages of skilled labour directly constrain production and prevent firms from meeting demand and using available inputs efficiently. Abizadeh et al. (2007) stated that their paper examines the effect of trade openness on the productivity of skilled labor intensive and unskilled labor intensive industries in the group of 20 organizations for Economic Co-operation and Development (OECD) countries. Employee Turnover In human resource context, “turnover” is the act of replacing an employee with a new employee. Partings between organizations and employees may consist of termination, retirement, death, interagency transfers, and resignations. An organization’s turnover is measured as a percentage rate, which is referred to as its turnover rate. Turnover rate is the percentage of employees in a workforce that leave during a certain period of time. Many organizations have discovered that turnover is reduced significantly when issues affecting employees are addressed immediately and professionally. Priyanka and Dubey (2017) revealed that turnover intention precedes the actual turnover; therefore, it becomes important to understand the reasons behind their intention to leave the job and then take corrective measures if needed. Developing better relationship with employees by helping them financially and psychologically is the mantra to reduce employees’ turnover. Kwame et al. (2017) explored in their research studies that productivity is a very important issue for every organization. Productivity of an organization is thus mostly affected by several factors including employee turnover. Rubel et al. (2017) mentioned in their research studies that employee turnover has long been a topic of central interest to management scholars and practitioners. It has also been revealed that maintaining an ethical climate helps secure organizational growth through the retention of skilled and qualified employees. Ampomah and Cudjor (2015) stated that 18

high employee turnover rates may jeopardize efforts to attain organizational objectives. To reduce the rate of turnover, management should review condition of service for employees; and also ensure that the working environment is conducive. It can be said that employees leave or quit the organization simply because, they are not satisfied with their working conditions and this affect the organizational efficiency greatly in the sense that experienced workers leave and the organization has to spend money and time to hire, recruit, select and train new employees to replace those who have left. Low Absenteeism Employees may take a leave or not report to work for a variety of reasons. Some of these may be uncontrollable factors like sickness, emergency, accidents, etc. However, employees may also take leave when they are capable to attend work. This may result out of low motivation levels and dissatisfaction with one’s work. Unscheduled leaves hurt a company the most. Absenteeism presents a huge cost to the company and thus should be monitored closely. Singh et al. (2016) discovered that in the increasingly competitive and challenging environment within which organizations operate today, absenteeism is a complex issue. Resulting from absenteeism, businesses are faced with impeded productivity, inefficient service delivery, and reduced performance, thereby negatively affecting sustainability. Onikoyi et al. (2015) have shown that there was a significant relationship between absenteeism and corporate performance. Based on the findings, it was recommended that organizations should identify the causes of workers’ absenteeism and seek means of reducing it, avoid regular hiring and firing of staff, discourage workers from taking irrelevant excuses to be absent from work by ensuring that workers are paid based on the hourly rate system and ensure that staff are motivated by paying them commensurate wage rate that will encourage them to remain on the job and improve their performance. Absenteeism converts the organization into a deviant work place behavior. It makes the employees to violate the norms of the organization leading to a disastrous output. Such effect of absenteeism affects the turnover of the organization leading to decreased selection and training cost. Absenteeism also affects the level of satisfaction among the employees and organizational performance (Tiwari, 2014; Rathod and Reddy, 2012; and Kehinde, 2011). Most researches had concluded that absence is a complex 19

variable and that it is influenced by multiple causes, both personal and organizational. Job satisfaction has been noted as one of the factors influencing an employee’s motivation to attend. Results obtained indicate that the extrinsic sources of job satisfaction have a direct impact on absenteeism. High Morale Morale is a fusion of employees’ attitudes, behaviours, manifestation of views and opinions - all taken together in their work scenarios, exhibiting the employees’ feelings towards work. Motivation is a state of mind. High motivation leads to high morale and greater production. A motivated employee gives his best to the organization. Devi and Vijayakumar (2016) discovered that the success of any organization lies in the hands of the employees working in it. There are two magical words which make the employees to involve and outperform in their work which are morale and commitment. It is a state of mind, and an emotional attitude. Ibrahim and Brobbey (2015) examined the impact of employee motivation on organizational performance. Findings from the study suggest that leadership opportunities, recognition and employee appraisal, meeting employee expectations and socialization are the key factors that motivate employees. Ganta (2014) explored in his studies that most employees need motivation to feel good about their jobs and perform optimally. Shahzadi et al. (2014) mentioned that employee motivation is considered as a force that drives the employees toward attaining specific goals and objectives of the organization. It is one of the sizzling issues in organizations since everybody wants to make best use of their financial and human resources. Dobre (2013) revealed that the majority of organizations are competing to survive in this volatile and fierce market environment. Motivation and performance of the employees are essential tools for the success of any organization in the long run. Job Satisfaction “Job Satisfaction” is the level of contentment a person feels regarding his or her job. This feeling is mainly based on an individual's perception of satisfaction. Job satisfaction can be influenced by a person's ability to complete required tasks, the level of communication in an organization, and the way management treats employees. 20

Agyare et al. (2016) revealed that, performance appraisal is credited by researchers as a tool for spurring employees towards the attainment of organizational goals. Considering employees’ attitudes as a vital component in the attainment of organizational goals, this study investigated the impacts of performance appraisal on the job-satisfaction and commitment of employees. Donald et al. (2016) stated that the objective of their study was to investigate the relationship between employees’ job satisfaction and organizational commitment. In the business world, employees are among the most important determinants and leading factors that determine the success of an organization and its competitive advantage in a long-run. Ismail and Razak (2016) mentioned that their research is to evaluate the association between job satisfaction and organizational commitment. This finding confirms that when employees satisfied with intrinsic satisfaction and extrinsic satisfaction from his or her job condition may lead to greater organizational commitment in the studied organizations. Kargun et al. (2016) revealed that, employees’ commitment to organizations is the sole ingredient to maintain business continuity. Employees’ commitment to organizations is not only an important condition to keep the business going but also to increase productivity. Matching the employees and the suitable work may increase job satisfaction of the employees. As a result, the employee who has maintained job satisfaction adapts the work easily and keeps the business going. The aim of Mangkunegara and Miftahuddin (2016) is to determine the effect of transformational leadership and job satisfaction to employee performance. The results showed that transformational leadership and job satisfaction influence to performance positively and significantly either partially or simultaneously. David et al. (2015) explored the factors influencing job satisfaction and organizational commitment of working individuals. Gangai and Agrawal (2015) examined the relationship between components of organizational commitment and job satisfaction of the employees. But, there is no significant correlation between job satisfaction and organizational commitment. Impact of Performance Management System Performance management is the heart of any HR processes in an organization as it influences the rest other HR functions or processes. Profit Margin, customer satisfaction 21

and low wastage are the outcomes of performance management system, which are briefly described as: Profit Margin Profit is the engine that drives the business enterprise and indicates the profitability of a product, service, or business. Hamid et al. (2017) stated in their research that in any organization, performance of organization is very important. The super objective of all organizations is to improve their performance. For the purpose of achievement of profit margin, organizations have to apply their human resource effectively and efficiently. Albalooshi et al. (2017) stated that their study was aimed to investigate the combined effect of job satisfaction, job loyalty, team and management performance, rewards and recognition on profitability of banks in United Arab Emirate (UAE). Internal human factors such as reward and recognition and management performance affect the profitability of Islamic banks. This serves as motivational factor for this study to examine and determine some of the internal human factors that have influence on the profitability of Islamic banks. Temtime (2016) explored that working capital optimization, as an act of balancing liquidity and profitability, presents significant challenges when small businesses lack managerial expertise and access to affordable capital and credit facilities. Profitable businesses may provide employees and communities with better jobs; stock ownership; and development infrastructures such as road, healthcare, and educational facilities. Richardson (2014) discovered that when employees become dissatisfied at an organization, they may develop negative behaviors that impede profits and productivity. Customer Satisfaction Customer Satisfaction is the overall essence of the impression about the supplier by the customers. This impression which a customer makes regarding supplier, is the sum total of all the processes he goes through, right from communicating supplier before doing any marketing to post delivery options and services and managing queries or complaints of post-delivery. During this process the customer comes across working environment of various departments and the type of strategies involved in the organization. This helps the customer to make strong opinion about the supplier which finally results in satisfaction or dissatisfaction (Ganiyu, 2017). Morgan and Govender (2017) stated in their research that there is increased focus on acquiring and retaining 22

loyal customers in order to facilitate repeat purchases guarantee future revenues and shield the customer base from competitive activity. Ndikubwimana and Berndt (2016) stated that it is important for banks to focus on providing quality service to their customers. This is due to the effect it has on customer satisfaction and consequently on customer retention. Kalasa and Christopher (2014) focused on the customer service delivery by staff of front office department. It will look into the attitude, skills and knowledge of the staff on customer service delivery and its effect on customer satisfaction. It has also been revealed that there is a positive relationship of customer satisfaction and employee service delivery. Sang Long and Khalafinezhad (2012) discovered that customer relationship management (CRM) is the entire process that focuses on the interface between the organization and its customers. Minimum Wastage “Low Wastage or waste minimization” is a process of elimination that involves reducing the amount of waste produced in society and helps to eliminate the generation of harmful and persistent wastes, supporting the efforts to promote a more sustainable society. Subramanian and Ramkumar (2017) mentioned in their research that the implementation of lean methodology can be traced back to the 1960’s with Toyota’s implementation of a production system, known as Toyota Production System (TPS), which eliminated wastes in Toyota plants. The successful implementation of lean practices not only led to reduced costs, but also to improved profits resulting from an integrated partnership in the value chain and supply chain, which led the way to sustainable development. 1.2 Significance of the Study Performance management system in an employee oriented organization is very important to assess the performance of employees as well as to motivate them to contribute effectively in the organization. In the competitive world today, employee performance is the key for success of an organization. Organizations in the Steel Industry have a large manpower. A dedicated manpower will be able to contribute greatly towards profit and prosperity of the company. As a part of liberalization of Steel Industry, capacity enhancement finds an important place in the ‘National Steel Policy’. Old organizations as well as new organizations are creating ‘new green field steel capacities’ in the country. In the years to come, these organizations will be trying to give emphasis 23

on appropriate performance management initiatives in order to manage and motivate the workforce for achieving their goal. Rourkela Steel Plant (RSP), an integrated steel plant in Steel Authority of India Limited (SAIL), has completed 50 glorious years of existences and serves the Nation with the might of Steel. The coming years are going to be tough for RSP in the competitive. RSP has a large pool of experienced manpower of varied age-mix. In spite of having automation in the steel making process, contribution of human resource in the steel industry is quite big. It needs to revamp its performance management system in future so as to proper identification of the performers, motivational aspects, and create positive energy in the workforce to accept challenges. In this back drop, the research work will unfold many grey areas in the performance management system, where HR intervention is required for survival and prosperity of Rourkela Steel Plant in future. 1.3 Scope of the Study The proposed study is an analytical one which will concentrate on competency based performance management system. Rourkela Steel Plant (a unit of Steel Authority of India Limited) has been selected for the purpose of study. SAIL is India’s largest steel maker with a turnover of Rs. 43,910 crores and ranks among the leading steel producers in the world, having sufficient facilities for optimum utilization of its human resources. The Seven Maharatna Companies are : National Thermal Power Corporation (NTPC); Oil and Natural Gas Corporation (ONGC); Steel Authority of India Limited (SAIL); Bharat Heavy Electricals Ltd. (BHEL); Indian Oil Corporation Limited (IOCL); Coal India Limited (CIL); Gas Authority of India Limited(GAIL)]. SAIL among the seven ‘Maharatnas’ of the country, owns and operates eight manufacturing plants – five integrated steel plants at Bhilai, Durgapur, Rourkela, Bokaro, and Burnpur producing carbon steels and three plants at Salem, Durgapur and Bhadravati making Stainless and Alloy Steels. SAIL’s subsidiary at Chandrapur is a bulk producer of Ferro-alloys. RSP is one of the unique steel plants under the SAIL umbrella with a wide variety of special purpose steels, started during the mid-50’s of the 20th century in collaboration with leading steel makers from the federal republic of Germany. Pandit Jawaharlal Nehru, India’s first prime minister had described the public sector steel plants set up in 24

the 1950s as the temples of modern India. It is a unique plant producing a wide variety of flat steel products, which serve various special purposes. For an objective assessment of the performance and potential of the employees and to distinguish between different levels of performance, the personnel department has followed a comprehensive appraisal system for the employees to ensure an objective assessment of performance and potential of the employees and to integrate company’s and individual goals. The organization has systematic promotion policies for promotion within executives as well as non-executive employees. Besides to motivate the employees for their better performance, HR department takes care for the aspiration of the employees towards promotion, career planning, and succession planning. 1.4 Objectives of the Study The prime objective of this study is to give an overall picture on competency based performance management system in identifying, evaluating and developing the work performance of employees for effective achievement of organization’s goals and objectives. It specifically focuses on meaning and conceptual framework, perspectives, keys and mechanism, and major benefits of competency based performance management system. Finally, it concludes with concluding thoughts and managerial implications on how to create and develop a competency based performance management system successfully in organizations. Performance management is the process of identifying, evaluating and developing the work performance of employees so that the agency’s goals and objectives are more effectively achieved. Effective performance management is designed to identify performance requirements, enhance performance, and provide feedback relevant to those requirements and assist with career development. The primary objectives of the performance management system are:  To identify the several factors having significant impact on performance management system.  To explore the existing relationship between the facilitators and performance management system.  To find out the specific critical indicators of the performance management system.  To ensure the possible relationship between performance management system and organizational performance. 25

 To identify the specific outcomes of the performance management system.  To derive a holistic model relating to the performance management system based on empirical findings of the study. 1.5 Research Methodology Research is the systematic investigation and study of materials and sources to establish facts and reach new conclusions, so it shapes people’s understanding of the world around them. Research comprises “creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of humans, culture and society, and the use of this stock of knowledge to devise new applications.” Research Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It comprises the theoretical analysis of the body of methods and principles associated with a branch of knowledge. An overview of research methodology has been discussed in the following sub-sections. 1.5.1 Research Setting Research is an art of scientific investigation, which deals with the systematized effort to gain new knowledge and information. It comprises of numerous systematic activities such as; defining and redefining problems, formulation of hypotheses, collecting, organizing and evaluating data, making deductions and reaching a conclusion. The research design and methodologies for the research process needs to be pre-set before the real execution. In order to conduct the research in more systematic and structured way, this section has been sub-divided into the following five sub-sections. 1.5.1.1 Research Design Research design often seems to be something of a mystery to new researchers, and the proneness of research philosophers to engage in sophisticated debates using terminology that is inaccessible to the novice does not help. A research design is the logic that links the data to be collected and the conclusions to be drawn to the initial questions of a study; it ensures coherence. Another way of viewing a research design is to see it as an action plan for getting from the questions to conclusions. It should ensure that there is a clear view of what is to be achieved by the case study. This involves defining the basic components of the investigation, such as research questions and propositions, appreciating how the validity and reliability can be established, and selecting a case study design. Starting with clearly formulated questions is useful for all research projects. 26

Descriptive and explanatory studies need propositions. Research questions need to be translated into propositions. The researcher has to make a speculation, on the basis of the literature and any other earlier evidence as to what they expect the findings of the research to be. To systematically investigate the research problem in the study; descriptive research design has been utilized. According to Auberbach and Silverstein (2003), “The descriptive research attempts to describe, explain and interpret conditions of the present i.e. ‘what is’. The purpose of a descriptive research is to examine a phenomenon that is occurring at a specific place and time. A descriptive research is concerned with conditions, practices, structures, differences or relationships that exist, opinions held processes that are going on or trends that are evident”. The descriptive research consists of three main categories such as; observation, case studies, and surveys that have been used in this study as well as analyze the dimensions of the research problem adequately. A research study that uses a survey to obtain a description of a particular group of individuals is called a survey research design. Simply because a study uses a survey does not mean that it is a survey research design. The defining element of the survey research design is that the survey is used only to describe the variables being studied (Gravetter and Forzano, 2003). Moreover, descriptive studies make use of the survey technique to ascertain what is the normal or typical condition or practice at the present time. So the descriptive research studies are also named as survey or normative survey research. Here the term ‘normative” stands for exploring the normal or typical conditions or practices about the population or phenomenon being studied and survey implies a technique or method employed for knowing about these conditions or practices. Case studies are those descriptive or normative survey type researches that are undertaken by the researchers to describe the characteristics of an existing individual unit (an individual, group, organization or system) designated as a case through its in-depth and intensive study (Mangal and Mangal, 2013). However, in the field of behavioural sciences research, the term case and its study are used somewhat in a different sense and meaning. The case study design involves the in-depth study and detailed description of a single individual. Case study research is an empirical inquiry that investigates a contemporary phenomenon within its real-life context, when the boundaries between 27

phenomenon and context are not clearly evident and in which multiple sources of evidences are used (Yin, 1994). 1.5.1.2 Research Universe The main objective of this empirical study is to examine the facilitators of performance management system (PMS), factors influencing PMS, indicators of PMS and impact of PMS on organizational performance, within the organization. The sampling universe of the study was all the employees of Rourkela Steel Plant that included both Executives and Non-Executives. The strength of the universe herein Rourkela Steel Plant is 14905 employees (as on 01-10-2017). In order to get an in-depth insight on this aspect the Rourkela Steel Plant (RSP), a Unit of Maharatna Company, Steel Authority of India Limited (SAIL), a public sector undertaking of Govt. of India, was selected for the purpose of this study and both primary and secondary data were collected from this unit. 1.5.1.3 Sampling Method A sample is a finite part of a statistical population whose properties are studied to gain information about the whole (Webster, 1985). When dealing with people, it can be defined as a set of respondents (people) selected from a larger population for the purpose of a survey. A population is a group of individuals, objects, or items from which samples are taken for measurement, for example a population of presidents or professors, books or students. Selection of samples is the most essential factor of research as it is not possible to include everyone in the research population. Thus, it is vital to draw out samples that can interpret the population sufficiently. The stratified random sampling method has been utilized to conduct this study. It is a probabilistic sampling technique, which consists of two steps. The first step is to split the population comprising of middle and lower level executives into strata or segments; wherein the specific departments (strata) are chosen to draw the samples. The second step is to take a simple random sample within each stratum. The stratified random sampling technique is appropriate for this study as it undertakes to limit the possible samples to those which are “less extreme” by insuring that all sections of the population are represented in the sample in order to increase the efficiency, by decreasing the error of estimation (Agresti and Finlay, 2008). Stratified random sampling is a technique which attempts to restrict the possible samples to those which are less extreme by ensuring that all parts of the population are 28