An Analysis of Employee Attitude on Pay and Performance Appraisal With Reference to Self Financing Engineering Colleges, Tamil Nadu

Size: px

Start display at page:

Download "An Analysis of Employee Attitude on Pay and Performance Appraisal With Reference to Self Financing Engineering Colleges, Tamil Nadu"

Melina Brooks
5 years ago
Views:

1 An Analysis of Employee Attitude on Pay and Performance Appraisal With Reference to Self Financing Engineering Colleges, Tamil Nadu Uma.K Research Scholar, Bharathiyar University, Coimbatore and Asst. Professor, MBA Department Indira Gandhi College of Engineering and Technology, Chengelpettu Tamil Nadu South India Radha Ganesh Asst. Professor, (Sr.Gr.),MBA Department, Vallimmai Engineering College, Chennai Tamil Nadu South India Vishaly.S Gandhi Gram University, Gandhi Gram, Dindukal, Tamil Nadu South India ABSTRACT: This study tries to find out the attitude of employees working in Self Financing Engineering Colleges, Tamil Nadu on Pay and Performance Appraisal. Tamil Nadu has become an educational hub where so many national and international accredited professional colleges are situated. Pay and performance appraisal are very important components of HRM. These factors not only motivate employees towards high performance but also increase their productivity. These constituents create employee involvement and commitment towards achievement. Many Engineering Colleges could not retain high-caliber employees because of poor pay and performance appraisal system. Self Financing Engineering Colleges must create a conducive/friendly atmosphere between management and faculty members which will help for better retention and stability of the experienced employees. Key words: performance, job security, satisfaction, morale, commitment, attrition, appraisal INTRODUCTION This study tries to find out the attitude of employees working in Self Financing Engineering Colleges, Tamil Nadu on Pay and Performance Appraisal. Tamil Nadu has become an educational hub where so many national and international accredited professional colleges are situated. Leading factors such as economic development, IT boom, globalization, Government policies, and Information technologies have changed the life style of most of the people in India. Change in government policy bringing hundreds of Multi National Companies into India and which creates a lot of employment opportunities with lucrative pay scale. Pay and performance appraisal are very important components of HRM. These factors not only motivate employees towards high performance but also increase their productivity. These constituents create employee involvement and commitment towards achievement. Many Engineering Colleges could not retain high-caliber employees because of poor pay and performance appraisal system. Statistical report says that there are 175 universities and 6000 colleges conducting various UG and PG courses in India and about 3.6 million faculty members are working in these institutions all over India. The following table clearly shows the availability of institutions and number of faculty members working in those institutions in India S. NO Particulars Availability 1 University Colleges Faculty members 3.6 million IRJBM ( ) Volume No VII, December 2014, Issue 13 Page 22

2 The following table clearly shows the number of engineering colleges available in Tamil Nadu S.NO DESCRIPTION NO. OF COLLEGES 1 Self Financing Engineering Colleges Government Engg Colleges 6 3 Constituent Colleges 4 4 Govt. Aided Colleges 3 Total 250 In addition a few central government institutions are also functioning (NIT and IIT) in Tamil Nadu OBJECTIVES This study is undertaken: To get the opinion of employees on pay and performance appraisal system in self financing engineering colleges. To compare the salary structure with the employees of Governmentt aided and Government engineering colleges. To find out the negative factors that prevents the management not to give good pay and implement a systematic appraisal system. To find out alternative ways for formulating and implementing new pay and appraisal system as to motivate the employees. HRM AN OVERVIEW The term human resource may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization s work force, as well as the values attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. Compensation and Performance Appraisal are two components which are most important motivational tools to retain talent pool in Engineering Colleges. Human resource management deals with the proper handling of personnel in the organization. If people working in the organization are not handled or managed properly, good industrial relations will not develop which will jeopardize the survival of the organization. it is not possible to achieve the organizational goals with out active co operation of the personnel. The significance of personnel management has increased with the growth of industrial undertakings now it has come to be recognized that personnel management is not only the responsibility of personnel manager, but also of all managers in the enterprise. The various aspects of personnel function relate to procurement, development, compensation and motivation of the personnel. Every manager has some responsibility towards these areas, but now it has been organized that these functions cannot be the specialty of every line manager. So it is very common to create a personnel dept under a personnel director or personnel manager. Through personnel department does not produce any thing which is tangible, yet it helps the other departments to contribute to wards the organizational objectives. Personnel function has become the specialized task and so is entrusted to the person who is well conversant with the principles and techniques of personnel management. The personnel manager organizes the personnel department to carry out the functions entrusted to him. Personnel department develops the sources of recruitment, selects the people and helps the line managers to place and adjust them. The job of personnel department is not over with the employment of people. It helps the manager in rectifying placements by devising a suitable transfer policy. Personnel department keeps the record of every person in the organization and provides important information to departmental to heads in taking decisions about promotions and transfers. Personnel department helps in evaluating the performance of the employees for use in the future by developing a suitable system of merit rating or performance appraisal. Determining the IRJBM ( ) Volume No VII, December 2014, Issue 13 Page 23

3 wages and salaries to be paid to different categories of employees in the organization is another important function of the personnel department looks after the wage and salary administration in the organization and devices suitable incentives to reward the efficient workers to motivate them. Personnel department also under takes research of human behavior by conducting attitude and morale surveys. The information gathered by the personnel department in the form of attitude and morale surveys can be utilized by every manager to under stand the behavior of his subordinates. The performance of functions of personnel management requires specialized knowledge and skills and so the charge of personnel department should be entrusted to the person who possesses these skills. In the present day business setup, every big organization has no choice but to set up the personnel department. It is essential to lay down the objectives of personnel department before it is setup the enterprise. The main objectives of the personnel department are to procure, develop, compensate and motivate the people for the achievement of organizational goals. Performance Appraisal A Tool for Development Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. It employs various rating techniques for comparing individual employees in a work group, in terms of personnel qualities and the requirements of their respective jobs. A good system of performance appraisal helps the supervisor to evaluate the performance of his employees systematically and periodically. It also helps him to assign that work to individuals for which they are beat suited Performance rating helps in guiding and correction of employees. the superior may use the results of rating for the purpose of constructively guiding employees in the efficient performance of work The ability of the staff is recognized and can be adequately rewarded by giving them special increments. Performance appraisal can be used as a basis of sound personnel policy in relation to transfers and promotions. if the performance of the employee is better than others, he can be recommended for promotion, but if a person is not doing well on the job, he may be transferred to some other job. Ratings can be used to evaluate the effectiveness of training programs. Weaknesses of employees are revealed by merit rating and the training programs can be modified accordingly. performance appraisal provided an incentive to the employees to better their performance in a bid to improve their rating over others Systematic appraisals will prevent grievances and develop confidence amongst the employees if they are convinced of the impartial basis of evaluation. The records of merit rating are available in permanent form to protect the management against subsequent charges of discrimination which might be levelled by the trade union leaders. Even though there are so many methods available for evaluating the performance of the staff, self financing colleges are nor even try to understand the its importance in the present situation. Some of them are listed out hereunder: - Conventional Methods 1. Unstructured appraisal 2. Employee ranking 3. Forced distribution 4. Graphic-rating scales 5. Check-lists 6. Critical incidents 7. Field review. IRJBM ( ) Volume No VII, December 2014, Issue 13 Page 24

4 Modern Methods 1. Management by objectives 2. Behaviorally anchored rating scales Compensation A Tool for Development Compensation of employees for their services is an important responsibility of human resource management. Every organization must offer good wages and fringe benefits to attract and retain talented employees with the organization. Compensation to workers will vary depending upon the nature of job, skills required, risk involved, nature of working conditions, paying capacity of the employer, bargaining power of the trade unions, wages and benefits offered by the other units in the region or industry, etc. Compensation refers to a wide range of financial and non financial rewards to employees for their services rendered to the organization. It is paid in the form of wages, salaries and employee benefits such as paid vacations, insurance, maternity level, free travel facility, retirement benefits, etc. Important Components of compensation Monthly wage and salary or total pay including basic wages, house rent allowance, dearness allowance and city compensatory allowance Bonus at the end of the year. Economic benefits such paid holidays leave travel concession. Contribution towards insurance premium. Contribution towards retirement benefits such as employee provident fund. Base compensation: wage and salary Base compensation involves monitory benefits to employees in the form of wages or salaries. The term wage is used to denote remuneration to workers doing manual or physical work. Thus, wages are given to compensate the unskilled workers for their services rendered by the organization. Wages may be based on hourly, daily weekly or even monthly basis. But the term salary is usually defined to mean compensation to office employees, foreman, managers, professionals and technical staff. It is generally paid on weekly monthly and early basis. Thus, the time period for which salaries are paid is generally higher than in case of wage payments Supplementary compensation: fringe benefits Modern organization use supplementary compensation over the above base compensation to retain the employee on a long term basis. Supplementary compensation involves fringe benefits offered through several employee services and benefits such as housing, subsidized food, medical aid, crèche etc. Supplementary has be given as different titles in industry such as service programs, employee benefits and non-wage payments. Because of increasing cost of fringe benefits, some people also label them hidden payroll. RESEARCH METHODOLOGY The research is descriptive in nature. Survey is conducted in 40 engineering colleges all over Tamil Nadu and data are collected from 120 employees. Questionnaire was prepared to collect primary data directly from employees of self financing engineering colleges. Secondary data were collected from various sources such as from Anna University, various documents of Self financing Engineering Colleges, and Websites. Survey is conducted by using random sampling method. Data were tested using various statistical tools such as percentage analysis and chi-square test. Charts and tables were used to make the data understandable. DATA ANALYSIS AND INTERPRETATION This study revealed many things that are critical to the development of Human Resources in Self Financing Engineering Colleges (SFEC). The following charts clearly indicate the opinion of employees who work in Self Financing Engineering Colleges in Tamil Nadu: - IRJBM ( ) Volume No VII, December 2014, Issue 13 Page 25

5 HR Factors exist in SFEC % in e lu a V J.Satisfaction J.Security Attrition Pay P.Appraisal This chart shows that the faculty members attrition rate stands at 42% per year, only 1.2% of the Self Financing Engineering Colleges offer compensation as per AICTE norms and others (98.8%) give consolidated pay. 89% of the faculty members are not satisfied with the pay. Job security level stands at only 3% and only 8% of them have satisfied with the present job. About 63% of the colleges are not having proper Performance Appraisal System. Most of the self financing colleges are not adopting pay as per AICTE or State or Central Government. This would result in poor morale, low productivity, high attrition rate etc. No Scientific Performance Appraisal System is available in many colleges including accredited colleges this would also result in poor performance, no or low employee involvement in jobs. It is found that the culture available in Self Financing Engineering Colleges is very poor. Hence employees feel that they are not treated well or encouraged when they perform well or ill treated when mistakes are made. It was found that low compensation, poor performance appraisal, bad treatment, and a bad culture were the main reasons of no job satisfaction. FINDINGS 1. Most of the employees (89%) feel that the pay does not reward them for their contribution 2. Most of the self financing colleges (69%) pay only basic salary to their faculty members 3. 86% of the faculty members feel that the current pay system does not encourage better performance 4. 91% of the faculty members feel that the pay system badly needs to be reviewed 5. About 96% of the faculty members feel that the rate of pay does not match with industry pay. 6. Employee attrition rate per year in self financing colleges are found to be 42% 7. Only 1.2% of the self financing engineering colleges are adopting AICTE pay scale 8. Only 3% have job security, 6% have PF, 1.2% have HRA in self financing engineering colleges 9. Only 1.2% of the self financing engineering colleges give salary on 1 st of every month. 12% of them give before 5 th every month, 63% of them give before 10 th and 14.8% give the salary only after 10 th of every month whereas 9% of them give pay after 15 th to 20 days % quit their job because of low salary, 23% leave for bad treatment, 7% of the faculty members quit their job because of personal reasons and the remaining 3% quit because of poor performance and of management s demand. IRJBM ( ) Volume No VII, December 2014, Issue 13 Page 26

6 11. 57% of the faculty members say they are not encouraged by management for better performance % of the self financing colleges don t have performance appraisal system % of the faculty members say there is no systematic grievance handling measures in their colleges % of the colleges are encouraging their employees by giving cash award or reward % of the faculty members feel that the performance appraisal system does not help to improve their performance % of the faculty members say that the assessment of performance appraisal by manager/superior is not objective and fair % of the faculty members feel that their colleges adopt proper feed back on their performance in class. 18. This study shows only 8% of the faculty members are satisfied with the present job SUGGESTIONS 1. Self Financing Engineering Colleges must give pay as equivalent to AICTE norms. 2. To reduce the attrition rate and to retain experienced faculty members, a standard HR policy must be formulated and implemented. 3. To motivate the performance of faculty members, colleges must implement a standard Performance Appraisal system. 4. To increase employee involvement and morale, award and reward must be given to faculty members based on their performance. 5. A proper grievance appraisal system must be adopted in colleges 6. Self Financing Engineering Colleges must create a conducive / friendly atmosphere between management and faculty members 7. Faculty Members are to be treated well 8. The management of self financing colleges shall give Faculty Development Program to Faculty Members who lack in performance 9. Self Financing Colleges must give salary to the faculty members before 5 th of every month 10. To reduce attrition rate, all colleges must have a standard HR practices for the benefit of faculty members CONCLUSION This study would find many things that are critical to employee performance, job security, satisfaction, morale, commitment, involvement and attitude towards their work. These findings and suggestions will be very useful and instrumental to the management of all self financing engineering colleges and the Government in formulating a strong HR policy on Pay and Performance Appraisal system for the effective functioning of the college in future. REFERENCE 1. NDTV Trend in Higher Education 2. Anna University Publication - List of Engineering colleges in Tamil Nadu 3. T.N.chhabra Dhanpat rai & co.pvt.ltd. 4. Biswajeet pattanayak-prentice hall of India pvt Ltd. 5. S.Skhank-S Chand&company Ltd. 6. P.Jyothi&D.N.Venkadesh-Oxford university press. 7. Records of various Self Financing Engineering Colleges 8. Records of Dept. of Technical Education, Guindy, Chennai 25 IRJBM ( ) Volume No VII, December 2014, Issue 13 Page 27

St. Joseph's Journal of Humanities and Science ISSN:

St. Joseph's Journal of Humanities and Science ISSN: 16 L. Santhana Raj / St. Joseph s Journal of Humanities and Science (Volume 4 Issue 1 January 2017) 16-20 St. Joseph s Journal of Humanities and Science (Volume 4 Issue 1 January 2017) 16-20 St. Joseph's