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The performance management system is used to interrelate organizational vision and with the individual goal for meeting this effectiveness of the performance management system. It finds the pathway and assesses individual performance outcomes. It empowers the employee to contribute to the organization. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. This study concentrates on the eight factors which are responsible for performance management system effectiveness and its association with organizational effectiveness. The degree of employee awareness and perception about the performance management system give greater effectiveness of the same. So the study found that performance review focus and employee participation strongly connect with employees perceptions of performance appraisal system rating fairness and performance review. From the foregoing review of literature, it can be understood that though many studies have been conducted on different aspects of performance management system in India and even in foreign countries, a study specifically for the effectiveness of performance management system of BHEL is missing in the literature. Hence, the study will attempt to examine the present scenario of the effectiveness of the performance management system of BHEL, Trichy by highlighting the existing lacuna and drawbacks. The scope of this research is confined to employees in the BHEL, Trichy. The study covered eight factors viz., Organizational strategy, Goals and performance measures, Performance Standard, Performance management system and feedback, Performance Rating, Performance management system and Training and development and Performance management system and Reward to analyze the effectiveness of the performance management system. The report of the thesis is presented in six chapters. The population of the study constitutes employees of the BHEL High-Pressure Boiler Plant located at Tiruchirappalli, Tamilnadu. Hence, the employees of BHEL, Tiruchirappalli are selected as respondents for examining the effectiveness of the performance management system. The result of the study reveals that the employees of higher level management well aware whereas middle and lower level management employees have poor awareness of the overall performance management system of the study unit.

A Study on the Effectiveness of Performance Management System in BHEL, Tiruchirappalli