Download - Summer Report Cover Letter
-
8/13/2019 Summer Report Cover Letter
1/33
RAYMOND
UNDERSTANDING THE PERFORMANCE MANAGEMENT SYSTEM
OF RAYMOND AND GIVING OBSERVATION AND
RECOMMENDATION FOR THE IMPROVEMENT OF THE SAME
SUBMITTED TO
MR. MANNATHAM PERUMAL
SENIOR MANGER HR
SUBMITTED BY
DEBA PRASANNA SAHOO
XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR
5/31/2012
XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR
-
8/13/2019 Summer Report Cover Letter
2/33
ACKNOWLEDGEMENT
I would like to thank Dr. Asit Mohapatra, Director-HR Textiles, for giving me an opportunity
to work in Raymond as a Summer Trainee. His expertise in Human Resources area and
knowledge about understanding life is amazing which would be remembered for life.
I would to like to thank Mr. Mannatham Perumal, Senior Manager Textiles, without whom
this project would not have been completed. His practical insights were immensely helpful in
shaping up the project and giving the final touch. His way of structuring and delivering things
and handling people is something to be learned.
I would also like to thank Mr. Aditya Chopra, Mr. Girish Yadav, Ms. Jasmine Sebastian, Ms
Minakshi, MS. Samvedna Rana and Mr. Vishal Kharse for helping me in carrying out this
project.
-
8/13/2019 Summer Report Cover Letter
3/33
CONTENTS
Title Page Number
Executive Summary 1
Introduction 2
Objectives of performance management system 4
Data Analysis 5
Observation and Recommendation about current performance management
system in Raymond.
11
Comparison between Raymond and MF&L 13
Design Framework for Implementation of 360 degree appraisal method 17
Design Framework for the implementation of Balance score card Method 24
Conclusion 29
-
8/13/2019 Summer Report Cover Letter
4/33
EXECUTIVE SUMMARY
This report investigates the Performance Management System followed at Raymond Ltd.
A detailed analysis of the Performance Management System workbook 2012 13 was
done and discussed with Mr. Mannatham Perumal, Senior Manager-HR. the points came
out of it has been reported in this report.
After the study of the process a perception mapping of the effectiveness of the
performance management was done through questionnaire analysis.
A comparison of the performance management system prevailing at Raymond and that of
Madura Fashion and Lifestyle was done covering all important points.
360 degree Performance Evaluation Method and Balance Score card Approach method
was thoroughly studied and a design framework suitable for the company is suggested.
The methodology adapted was exploratory approach as relevant articles were reviewed
before giving observation, recommendation and design frame work for the methods to be
inserted in the performance management system.
-
8/13/2019 Summer Report Cover Letter
5/33
INTRODUCTION
Incorporated in 1925, Raymond Limited has five divisions comprising of Textiles,
Denim, Engineering Files & Tools, Aviation and Designer Wear.
Raymond Textileis India's leading producer of worsted suiting fabric with over 60%
market share. With a capacity of 25 million meters of wool & wool-blended fabrics,
Raymond Textiles is the worlds third largest integrated manufacturer. The company exports
its suiting to more than 50 countries including USA, Canada, Europe, Japan and the Middle
East. Over the years, Raymond Textile has developed strong in-house skills for research &
development, which has resulted in path-breaking new products. Perceived as pioneer and
innovator, Raymond Textile has been responsible for raising the standard of the Indian
textiles industry.
Garment companies have been successful in the Indian market using different
approaches and distribution methods. Raymond, with its history of more than 75 years, relies
on its long-standing reputation; loyal customer base and well-established, extensive retails
network in over 400 towns through 30,000 retailers and over 270 exclusive Raymond Shops.
In fact, Raymond initiated the entire business of developing the menswear apparel
business. It started the development work through the introduction of its first brand, Park
Avenue. The readymade garments division has since then growth rapidly. It has created many
a pioneering trend such as ready to wear suits. Raymond has now become the leader among
ready-mades, in India, achieving a business turnover of over Rs. 200 crores with its three
brands-Park Avenue formal wear, Parx casual wear and Manzoni, a premium range of shirts,
suits and ties.
Raymond as a group enjoys a huge advantage over the competition that of vertical
integration right from manufacturing, to ready-to-wear to distribution. The main
components of a successful integrated ready-made garments manufacturer are Fabric design,
Garment design, State-of-the-art, Manufacturing systems, integrated logistics.
To participate on a global platform, one cannot do without any one of these
components. Logistics has to do with supply chain has to do with supply chain management.
-
8/13/2019 Summer Report Cover Letter
6/33
It starts from the procurement of the basic raw material till the finished product reaches the
end consumer. In the ready-to-wear segment, the maintenance of the logistical chain is
challenging due to the various fits, collections and seasonality and also the challenges in
terms of colour and design, as requirements of both design and fabric change with season. At
Raymond, the entire supply chain management is managed through a state-of-the-art software
system, developed and tailored to meet its specific needs.
With a capacity of 25 million meters of wool & wool blended fabrics, Raymond ranks
among the top three integrated products in the world and has a 60 per cent market share in
India alone. Internationally it is known to be a quality supplier of fabric to many leading
global brands, having a consolidated position in the global fabric exports market. It exports
suiting to more than 50 countries including the U.S., Canada, Europe, Japan and West Asia.
Exploring potential markets for expansion is one of its prime focuses.
GROUP COMPANIES
Incorporated in 1925, the Raymond Group is a Rs. 1959 crore plus conglomerate
having businesses in textiles, readymade garments, engineering files & tools, prophylactics
and toiletries. The group is the leader in textiles, apparel, & files & tools in India and enjoys a
pronounced position in the international market. Raymond believes in excellence, quality and
leadership.
The group companies are:
Raymond Ltd. Raymond Apparel Ltd. ColorPlus Fashions Ltd. Silver Spark Apparel Ltd. Everblue Apparel Ltd. Celebrations Apparel Ltd. J.K. Files and Tools Ring Plus Aqua Ltd. J.K. Helene Curtis Ltd. J.K. Investo Trade (India) Ltd.
-
8/13/2019 Summer Report Cover Letter
7/33
Objectives of Performance Management System
Performance Management process carried out should meet the following objectives:
1. Work plan for the entire year.2. Undertaking productive activities.3. Utilizing competencies in the best possible manner.4. Constant learning and developing ones own capabilities.5. Continuous improvement in performance.
To check out if the performance management process carried out achieves the following
objectives or not a questionnaire was designed which captured the complete process of
performance management process and the after effects of it. The questions were based on
likert scale and the data obtained were analyzed. The analysis done was Demographic
Analysis, Percentage Analysis and Chi square Analysis.
Sample Brief:
All the departments functioning in the Raymond campus at Thane was taken into
consideration for the study. Raymond has employee strength of 750 in the corporate office.
As per standards a sample population of 10% would have been apt for the study. The
questionnaire designed (100 copies) was floated in all the departments of which only 72 came
back. Thus the study was carried out on a sample size of 72.The following table shows the
sampling frame considered for the analysis:
Departments/D
esignations
Exec
utive
Offi
cers
Assistant
Manager
s
Deputy
Manager
s
Man
ager
Senior
Manage
r
Deputy
General
Manager
Tot
al
HR 3 2 1 1 7
Finance and
Accounts
1 3 1 1 1 1 8
Sales 2 2 7 8 1 1 1 22
Design 2 2 1 5
Product
Development
2 1 1 4
IT 3 3 1 7
SCM 5 3 2 1 11
Others 3 4 1 8
-
8/13/2019 Summer Report Cover Letter
8/33
Total 5 9 26 19 7 4 2 72
The number of males was 49 and females 32. The average year of service in Raymond is 6.83
years. The grades covered were from executive to Deputy General Manager i.e. basically
lower level and middle level management.
Data Analysis
The questionnaire designed consisted of 15 questions capturing the essence of the
Performance Management Process carried out at Raymond. The respondents were asked to
answer the questions on a 5 point Likert Scale (Strongly Disagree, Disagree, Neutral, Agree
and Strongly Agree).
The average and standard deviation was calculated for each question in all and also
segregated department wise. The results obtained are shown below:
Total Questions:
Department wise segregation:
Human Resource:
Finance and Accounts:
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
average 3.36 3.67 3.72 3.76 4.22 3.85 3.32 3.50 3.64 2.57 2.54 2.38 2.50 3.15 2.56
Standard Deviation 0.92 0.63 0.77 0.74 0.48 0.90 0.89 0.82 0.70 0.75 0.73 0.57 0.67 0.73 0.58
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1
average 3.00 3.75 3.38 3.00 4.13 3.13 2.63 2.88 3.63 2.13 2.00 2.50 2.13 2.75 2.1
Standard Deviation 0.76 0.46 0.92 0.76 0.35 0.64 0.52 0.64 0.52 0.64 0.76 0.76 0.35 0.71 0.6
-
8/13/2019 Summer Report Cover Letter
9/33
Sales:
IT:
SCM:
Design:
Product:
Others:
Graphic interpretation:
For the better interpretation of the data the five point likert scale is converted to Disagree (D,
Strongly Disagree and Disagree), Neutral and Agree (A, Agree and Strongly Agree) zones.
The consolidated result is as follows:
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1
average 3.45 3.73 3.95 4.05 4.27 4.45 4.00 4.14 4.14 2.77 2.73 2.36 2.82 3.27 2.7
Standard Deviation 0.96 0.77 0.72 0.58 0.55 0.51 0.76 0.47 0.35 0.92 0.83 0.49 0.80 0.77 0.6
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
average 2.57 3.00 3.71 4.00 4.29 3.43 2.86 2.86 3.00 2.57 2.71 2.29 2.57 3.57 2.29
Standard Deviation 0.79 0.58 0.76 0.00 0.49 0.79 0.90 0.69 0.58 0.79 0.95 0.76 0.79 0.53 0.49
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
average 3.64 3.91 3.64 3.82 4.00 3.91 3.27 3.55 3.45 2.36 2.45 2.36 2.45 3.00 2.73
Standard Deviation 0.81 0.54 0.81 0.87 0.45 0.94 0.79 0.82 0.82 0.50 0.52 0.50 0.69 0.77 0.47
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
average 3.00 3.60 3.80 3.40 4.40 3.20 3.00 2.80 3.20 2.80 2.60 2.20 2.20 2.80 2.60
Standard Deviation 1.00 0.55 0.84 0.89 0.55 0.84 0.71 0.84 0.84 0.84 0.55 0.84 0.45 0.84 0.55
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
average 3.25 3.75 3.50 3.75 4.50 4.25 3.25 3.50 3.75 2.50 2.25 2.75 2.00 3.00 2.25
Standard Deviation 0.96 0.50 0.58 0.50 0.58 0.96 0.96 0.58 0.50 0.58 0.50 0.50 0.00 0.82 0.50
Question No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
average 3.13 3.38 4.00 4.25 4.25 4.25 3.38 3.50 3.50 2.38 2.75 2.63 2.38 3.63 2.75
Standard Deviation 0.64 0.52 0.76 0.46 0.46 0.71 0.74 1.07 0.76 0.52 0.71 0.52 0.52 0.52 0.46
-
8/13/2019 Summer Report Cover Letter
10/33
-
8/13/2019 Summer Report Cover Letter
11/33
D NS A
19.4437.50 43.06
Q 7
Series1
D NS A
12.50
33.3354.17
Q 8
D NS A
8.3323.61
68.06
Q 9
D NS A
52.7834.72
12.50
Q 10
D NS A
48.6143.06
8.33
Q 11
D NS A
58.3341.67
0.00
Q 12
D NS A
59.72
30.56
9.72
Q 13
D NS A
19.44
45.8334.72
Q 14
D NS A
45.83 51.39
2.78
Q 15
-
8/13/2019 Summer Report Cover Letter
12/33
Chi Square Analysis:
1 observed expected chisqares
D 15 5 20
NS 23 13 7.69
A 34 54 7.41
35.10
Chisquares Dist 0.99989161
Chisquares test 2.38888E-08
2 observed expected chisquares
D 1 5 3.2
NS 27 13 15.07692308A 44 54 1.851851852
20.12877493
chisquares Dist 1
chisquares test 4.25689E-05
3 observed expected chisquares
D 3 5 0.8
NS 25 13 11.07692308
A 44 54 1.851851852
13.72877493
chisquares Dist 1
chisquares test 0.001044322
4 observed expected chisquares
D 5 5 0
NS 15 13 0.307692308
A 52 54 0.074074074
0.381766382
chisquares Dist 1
chisquares test 0.826229094
5 observed expected chisquares
D 0 5 5
NS 2 13 9.307692308
A 70 54 4.740740741
19.04843305
chisquares Dist 1
chisquares test 7.3061E-05
6 observed expected chi squares
D 6 5 0.2
NS 17 13 1.230769231A 49 54 0.462962963
1.893732194
chisquares Dist 1
chisquares test 0.387954934
7 observed expected chisquares
D 14 5 16.2
NS 27 13 15.07692308
A 31 54 9.796296296
41.07321937
chisquares Dist 0.998308375
chisquares test 1.20521E-09
8 observed expected chisquares
D 9 5 3.2
NS 24 13 9.307692308
A 39 54 4.166666667
16.67435897
chisquares Dist 1
chisquares test 0.000239447
-
8/13/2019 Summer Report Cover Letter
13/33
9 observed expected chisquares
D 6 5 0.2
NS 17 13 1.230769231
A 49 54 0.462962963
1.893732194
chisquares Dist 1
chisquares test 0.387954934
10 observed expected chisquares
D 38 5 217.8
NS 25 13 11.07692308
A 9 75 58.08
286.9569231
chisquares Dist 9.43638E-28
chisquares test 4.87636E-63
11 observed expected chisquares
D 35 5 180
NS 31 13 24.92307692
A 6 54 42.66666667
247.5897436
Chisquares Dist 2.15884E-21
chisquares test 1.72413E-54
12 observed expected chisquares
D 42 5 273.8
NS 30 13 22.23076923
A 0 54 54
350.0307692
chisquares Dist 1.70559E-38
chisquares test 9.8126E-77
13 observed expected chisquares
D 43 5 288.8
NS 22 13 6.230769231
A 7 54 40.90740741
335.9381766
Chisquares Dist 4.79447E-36
chisquares test 1.12707E-73
14 observed expected chisquares
D 14 5 16.2
NS 33 13 30.76923077
A 25 54 15.57407407
62.54330484
Chisquares Dist 0.752830517
chisquares test 2.62358E-14
15 observed expected chisquares
D 33 5 156.8
NS 37 13 44.30769231
A 2 54 50.07407407
251.1817664
chisquares Dist 5.85751E-22
chisquares test 2.86136E-55
-
8/13/2019 Summer Report Cover Letter
14/33
Observations from the data obtained:After the analysis of the data following observations came up
KRA setting: Only 61% of the employees have an complete understanding of the meaning
of KRA.
While 97% said they are aware of their key business deliverables. 97% of the employees face difficulties in writing KRA according to SAMRT. 72% of the employees have perception that their work is related to the
organizational goals and priorities.
Only 61% have vouched that their managers communicates the goals and
priorities of the organizations.
Discussions:
Only 43% are sure that they have periodic and continuous discussions withtheir manager regarding job performance.
54% of the employees have agreed that they are allowed to give valuableinputs on how to improvise their problem areas.
68% of the employees think that their managers give practical and valuablesuggestions to improve the problem areas.
Performance Evaluation:
Only 13% of the employees agree that they are able to figure out theirstrengths and weakness.
Only 8.33% of the employees agree that there is a fair evaluation system.Input for training:none of the employees think any training is provided to them for
improving their performance.
Reward and recognition: only 9% of the employees think that the reward and
recognition system is fair.
Performance improvement plan:Only 3% of the employees think that they have
gone through performance improvement procedures.
-
8/13/2019 Summer Report Cover Letter
15/33
Observation and Recommendation about the current Performance
Management System Process going at Raymond
Employees do not understand the actual meaning of Key Result Areas (KRA) and thecorrect way to write those Key Result Areas. In this scenario it becomes important for
people managers and the Human Resource team to make the employees understand
the Key Result Areas. One of the initiatives already taken by the Human Resource
Department is to conduct KRA Workshops for each business unit. In the workshop
people a detailed explanation of KRA is given and instructions were laid out about the
mathematical approach to write KRA, which is according to SMART (Specific,
Measurable, Achievable, Realistic, Time bound). But there was lot of confusion about
on what guiding principles the KRA was to be written.
To overcome this type of confusion the organization should go for Balance Score cardapproach based on which every employee should write their KRA. The detailed
explanation of the approach is given at a latter part in this report.
The KRA written are primarily divided into three components such as BusinessDeliverables, Strategic Initiative and People Processes. The weightages assigned to
these depend on the designation of the person. GM level and above which includes
Director, Vice Presidents and President have the same distribution of weightages i.e.
50% Business Deliverables, 30% Strategic Initiatives and 20% People Processes. This
division works well for the GM level. But Strategic Initiative should have a higher
weightage for the Director, Vice President and President Level.
The time slot given for writing KRA is almost 45 days and more, which covers half ofthe first quarter. This can be reduced to a month so that enough time could be given
for the performance review process to be carried on.
The matrix reporting system followed is confusing when it comes to performanceevaluation. The final ratings obtained by an employee are the average of the rating
given by the functional boss and administrative boss. This actually leads to the
-
8/13/2019 Summer Report Cover Letter
16/33
dilution of the ratings which is why the actual performance never comes out in front.
To overcome this 360 degree performance evaluation system should be implemented.
The detailed explanation of 360 degree evaluation is done at a later part in his report.
Mid-year review is done to assess the achievement for the six months and to plan forthe next six months. If the same review process is done quarterly, then the process
would become more robust.
The rating grid adopted here is confusing and complicated. Though the rating systemgiven handles the biasing error but it can be made more simplified.
The online interface of filling up KRA can be made more users friendly. Moreoverthe KRA can be made transparent i.e. every employee can look into each other KRA.
This would help in building trust among employees and one employee can what are
the responsibilities of other employee.
-
8/13/2019 Summer Report Cover Letter
17/33
Comparison of Performance Management System between Raymond
and Madura Fashion & Lifestyle (MFL).
1. Performance Review Process: The performance review process of MFL and
Raymond are on the same line. The process followed is:
1. Review and revision of goals/KRAs, if required2. Self-Appraisal3. Managers Review4. Performance rating normalization5. Feedback Sessions6. Escalation resolution if necessary7. Closure of final rating.
MFL is very clear in Escalation Resolution process while its not the same with Raymond.
2. Different departments: Raymond follows the same Performance Management
system across all its departments whereas MFL has a different performance Management
system for its retail employees. MFL retail employees have a monthly appraisal. So the
KRAs are set in the first week of every month.
3. Rating methods: The rating grid of MFL is as follow:
Rating Overall Goal Achievement
Far Exceeds Expectation (FEE) > 120%
Exceed Expectation (EE) 110%119%
Met Expectation (ME) 90% - 109%
Below Expectation (BE) 60-89%
Far Below expectation (FBE)
-
8/13/2019 Summer Report Cover Letter
18/33
The rating grid followed by Raymond is:
Rating Goal Achievement
Does not meet expectation Below 90%
Partially meets expectation 90 to 92%
Meets expectation 93 to 96%
Exceeds Expectation 97 to 103%
Exceptional Performance Above 103%
The rating grid of MFL is very demanding on the higher side as higher percentage is set for
met expectation, exceeds expectation and far exceeds expectation. Raymond on the other
hand is liberal on meets expectation, exceed expectation and exceptional performance.
4. Performance Improvement Plan: MFL follows a systematic and rigorous
performance improvement plan where in low performance employees are identified and a
developmental framework is designed to develop the required skills and competencies so as
to perform at a desired stage. The employees who have been evaluated as below expectation
and far below expectation are covered under this process. The cases identified for
development are either put in Performance improvement plan, if the problems are internally
correctible or in organizational development plan if the problem is externally correctible.
After this a performance development plan is prepared and acted regularly with regular
feedback. A total of three months is given for performance improvement, extendable up to 3
months.
Raymond does not have a detailed Performance development plan as of now. Though
manager or supervisor in charge is advised to design the individual development plan but no
detailed plan or structure exists over here.
5. Normalization process: MFL has a clear definition of the Normalization process
going on like taking into account the whole organization performance, business unit
performance, team performance and employee performance. Raymond does not have a clear
cut Normalization process defined.
6. Error handling process: Error handling is an important aspect in performance
management system as it leads to biasing in the ratings given because of favoritism. Thus
-
8/13/2019 Summer Report Cover Letter
19/33
MFL gives error handling training to manager to counterfeit those. This kind of procedure is
not available at Raymond.
7. KRA/goal setting: MFL and Raymond both follow the same principle of setting KRA
according to SMART (Specific, Measurable, Achievable, Realistic and Time bound). The
main objective of KRA setting is to disseminate business plan and target till last level in the
organization along with it building accountability. MFL uses Balance Score card technique to
ensure synergy and focus throughout the organization. The Balanced Score Card uses the
balanced metrics which link strategy to business performance. It covers the following four
Business Perspectives
Financial How do we look to our
shareholders?
Objectives that will lead to maximize
the return on capital and shareholders
value
Customer
Centricity
How do customers see us? Objectives where our customers
evaluate us on our product, product
quality, ease of accessibility delivery
time and service excellence
Internal Process What we must excel at? Objectives focusing on key Business
Process, existing operational process.
Learning &
Innovation
How can we continue to
improve and create Value
Objectives focusing on new products
and services introduced and time spent
in developing and enhancing the
knowledge base and competencies level
for future challenges and new ideas
implemented.
Raymond sets the key priority areas on Growth in Revenue, Profitability and Cash flow from
operations. The points mentioned before focuses only on the financial aspect. But while
setting goals employees are asked to set goals beyond financial numbers like customer
alignment, internal process optimization and people processes. On a broader view though it
covers four points of Balance Score card approach, main emphasis is laid on the financial
aspect only, which in away lessens the focus on the other three points. Moreover at Raymond
KRA of a person is again divided into three points i.e. Business Deliverables, Strategic
-
8/13/2019 Summer Report Cover Letter
20/33
Initiatives and People Process. The weightage given to each of these is dependent on the
designation of the person as given below:
Designation Business
Deliverables
Strategic Initiatives People Process
President and Vice
Presidents
50% 30% 20%
Director & GM 50% 30% 20%
DGM, Senior
manager, Manager
70% 20% 10%
Deputy Manager &
below
90% 0% 10%
MFL doesnt have this kind of division in their system. At Raymond maximum weightage
given to a KRA is 25% and minimum weightage given to a KRA is 5%, but MFL doesnt
have this kind of system. At MFL an employee can write as much KRA and give weightages
accordingly.
-
8/13/2019 Summer Report Cover Letter
21/33
IMPLEMENTATION OF 360DEGREE APPRAISAL SYSTEM
The 360 degree feedback process helps in development of objectives at two levels i.e. at an
individual level and an organizational level. For the individual level it helps the employees inknowing their abilities through the perspective of their supervisors, peers, direct subordinates
and self-examination. The perspectives given from supervisors, peers, direct subordinates and
self-examination are converted into numerical data. These data are used for the design of
personal development plan to address the areas of concern. For the organization level it helps
in improving organizational performance because it improves the abilities to work, manage
and lead the performance and attitudes of corresponding workgroups.
Competencies at Raymond
Leadership archetype:
show courage be honest demonstrate respect keep commitments genuinely contribute
LEADERSHIPCOMPETENCE
FRAMEWORK
CUSTOMER
CENTRICITY
PROCESS
ORIENTATION
CREATIVITY &INNOVATION
PERFORMANCEEXCELLENCE
COMMUNICATION
PEOPLEDEVLOPEMENT
BUSINESS
PERSPECTIVE
-
8/13/2019 Summer Report Cover Letter
22/33
Personalized 360 degree report
Each employee should have his own personalized 360 degree report. It should contain the
following points:
Introduction to 360 degree. Explanation of competencies and leadership archetype. Scores and pattern of scoring. Interpretation of data. Overall 360 degree profile Open ended question listing Scores Summary Personal Development Planning
Blue Print for 360 degree implementation
Defining Scores
Competency Scores: For each of the seven competencies, scores are calculated takingthe mean of related item scores from everyone who completed the assessment on the
employee. The persons responsible for completing the assessment on an employee arehis/her supervisor, direct subordinates and peers. The self-assessment score is not
incorporated into this account.
Itemized Scores: The respondents have to rate employees on a 5 point rating scale i.e.Strongly Disagree (1), Disagree (2), Feel Neutral (3), Agree (4), Strongly Agree (5)
on how strongly they agree or disagree with the statements describing the various
competencies. Standard Deviation is calculated for each item to know the variance i.e.
how well individuals agree with one another on the item. The higher the deviation, the
more the group disagreed.
Overall Score: It is the average score of all items or the overall rating score. Comparison score: Several data points for assessment purposes are presented to
provide a reference for relative comparison. There are two types of comparison data.
The first type, Internal Comparisons, compares an employee scores with each other
and to the employees overall score to determine his/her relative areas of strength and
concern. The second, External Comparisons, compares an employees scores to those
-
8/13/2019 Summer Report Cover Letter
23/33
of the organization and to the benchmark scores. This can help to determine in which
areas an employee is truly exceeding the averages.
Assessors:
Calculation of individual competency score:
The competency score for each of the competency is calculated separately. The steps taken to
do the same are as follows:
1. Define 8 to 10 statements which represent that competency.2. Ask the employees (supervisors, peers, direct subordinates and self) to rate on those
defined statements.
3. Calculate the mean of each statement.4. Calculate standard deviation5. Calculate the overall mean.6. Data representation and comparison.
Example:
The above points are shown through an example. Consider the competency Business
Perspective and suppose there are 10 respondents divided into 2supervisors, 5 peers, 2 direct
subordinates and 1 self.
EMPLOYEE
SUPERVISOR
DIRECTSUBORDINATES
SELF
PEERS
-
8/13/2019 Summer Report Cover Letter
24/33
Step 1: Define statements: 10 statements are formulated that represents Business
Perspective appropriately.
Step 2: Rating those statements: Employees or respondents are then asked to rate. The
interface to a respondent should look like
Business Perspective 1 2 3 4 5
Statement 1
Statement 2
Statement 3
Statement 4
Statement 5
Statement 6
Statement 7
Statement 8
Statement 9
Statement 10
10 respondents (including self) have to fill up above form (each respondent has to fill up a
single form) for a single employee. Thus in total for Business perspective competency 10
forms is collected. After all the forms have been filled mean is calculated for each of the
statements.
Step3: Calculation of Mean: A single statement would have 9 respondents divided into
different categories i.e. supervisors, peers and direct subordinates. It is represented in the
following table with fictional data
Statement 1 Rating Mean
Supervisor 1 4 4.0
Supervisor 2 4
Peer 1 3
4.6
Peer 2 4
Peer 3 4
Peer 4 4
-
8/13/2019 Summer Report Cover Letter
25/33
Peer 5 4
Direct Subordinates 1 3 3.5
Direct Subordinates 2 4
Similarly the means of all the other statements are calculated.
Step 4: calculation of standard deviation: For each statement standard deviation are
calculated according to the categories. It is represented in the following table with fictional
data.
Statement 1 Rating Mean Standard deviation
Supervisor 1 4 4.0 0
Supervisor 2 4
Peer 1 3
4.6
0.44
Peer 2 4
Peer 3 4
Peer 4 4
Peer 5 4
Direct Subordinates 1 3 3.5 0.70
Direct Subordinates 2 4
Similarly the standard deviations are calculated for each of the statements, which give
valuable information about the variance.
Step 5: calculate the overall mean: The overall mean is calculated by taking the rating mean
of all the statements together. It is represented below in the tabular form with fictional data.
Here self-rating score is taken into account for calculation of mean and past rating scores are
also taken for comparison.
-
8/13/2019 Summer Report Cover Letter
26/33
Statements Supervisor Peer Direct
Report
Self Your
Score
Standard
Deviation
Past
Score
Remarks
Statement 1 4.0 4.6 3.5 5.0 3.90 0.56 - -
Statement 2 4.12 0.45Statement 3 4.67 0.65
Statement 4 3.75 0.74
Statement 5 4.06 0.34
Statement 6 4.23 0.44
Statement 7 3.86 0.89
Statement 8 4.36 0.72
Statement 9 4.34 0.59Statement 10 4.21 0.36
Overall Mean 3.71
Thus for Business Perspective competency the employee has got an overall rating of 3.71
out of 5.0.
Step 6: Data Representation and comparison: The above obtained data is represented in a
simple manner where the employee is able to figure out everything about his performance.
Also the scores are compared with organization score and bench mark score and it is
represented in the graphical form. The representation format is described below as in:
past score 0rganization score benchmark score competency score
3.64.05 4.12 3.71
Business Perspective
-
8/13/2019 Summer Report Cover Letter
27/33
Calculation of total competency score: the total competency score is the mean of all the
individual competency score. It is represented graphically as shown below
3.714.2
4.7 4.54.2 4.4
3.67
Total Competency Score
-
8/13/2019 Summer Report Cover Letter
28/33
IMPLEMENTATION OF BALANCED SCORE CARD TECHNIQUE
Strategy and strategic planning process are two pillars of the organizations. An organization
to be successful has to include both financial and non-financial indicators together in sheet,which is termed as Balance Score Card. Financial goals are also called as lagging
indicators as they tell about what has happened and to succeed in future depends on non-
financial goals also called as leading indicators.
A typical strategic planning process consists of the following steps:
1. Stakeholders and strategic objectives2. Stakeholders need3. Performance gap4. Performance improvement linked to internal process5. Process improvement priorities6. Performance metrics7. Communicating performance metrics8. Performance evaluation9. Feed back
Steps 6 to 9 of the strategic planning process relate to performance measurement,
communication and evaluation. These steps are dubbed as the Balance Score Card.
The current model of Balance Score Card looks at four perspectives i.e. financial, customer,
internal process and learning development.
Perspectives Description
Financial
Succeed Financially Appearance to shareholders
Customer Achieving vision. Appearance to Customers
Internal Processes Satisfy shareholders and customers Business process to excel.
Learning and development Sustain. Continuous change and improvement.
-
8/13/2019 Summer Report Cover Letter
29/33
Building a Balance Score Card for Raymond:
The Balance Score Card focuses on the link between business processes and decisions and
results. It is considered as a guiding tool to strategy formulation, implementation andcommunication. The steps required to design a frame work for a balance score card is:
1. Strategic Analysis2. Strategic Mapping3. Measurement of Objectives
Strategic Analysis: It means defining the areas of strength and finding the areas of concern. It
can be done by SWOT analysis. For Example SWOT analysis of Raymond can be as follows:
Strength:
High brand equity Incongruence with the fashion trend. Large retail network. State of art machinery in plants. Highly adaptive to change. Good Infrastructure.
Weakness:
Ageing workforce Slow decision making due to multilevel transaction High non-productive work processes Knowledge gap Compartmentalized mindset Inadequate IT infrastructure.
Opportunity:
Exploring other similar markets outside India. More focus on casual wear. Focus on women wears.
-
8/13/2019 Summer Report Cover Letter
30/33
Threats:
FDI in textile. Price competition from China, Thailand and Malaysia. Design competition from local players.
SWOT analysis gives a clear picture of strategic vision which helps in creating value for
stakeholders. This can be called as strategic theme.
Strategic Mapping: It is the pictorial description of the strategy and its elements. The also
shows the linkages and interaction between various variables. It is believed if strategy is
shown systemically in map, it increases the chances of success. Thus strategic mapping helps
in integrating and kinking all elements and variables with each other and with the
organizations overall objectives. The following diagram depicts the different element of
strategy under four perspectives.
-
8/13/2019 Summer Report Cover Letter
31/33
Perspectives Description
Financial
Customer
Internal Processes
Operation
s
Regulatory
and Social
Innovation
Process
Manage
Customer
Increase
Service,
product,
delivery
Aggressive
marketing
New
Product
Develop
ment
Manager
of
customer
erosion
Political & environment
Customer Retention
Customer Satisfaction
Market Share
Customer Profitability
Low value customers to high
value customers
Lon term Shareholder value
Cost Reduction Revenue Growth
-
8/13/2019 Summer Report Cover Letter
32/33
Learning andDevelopment
Following conditions are necessary for the proper implementation of
Balance Score Card:
Top Management support and commitment: The top management and senior managershould be committed to drive it down through the organization. It is essential that the
top and senior management fully understand the concept and the process of balance
score card.
Determination of critical success factors: The entire organization should be involvedin finding the critical success factors which should be of superior quality, minimum
defects, higher returns, after sales service, competency etc.
Translate critical success factors to measurable objectives: It is very important totransfer the factors into measures as the organization would not lead to anywhere
without these. Financial measures are easy to define but it is a challenge to define
non-financial measures as a number of them could be unique to organization for
Human Capital
(Skills,
knowledge,
Attitude)
Organizational
Capital
(Culture,
Leadership,Attitude)
Informational
Capital
(System, Data
base,Networks)
Competency
development
KM
Attract
and
retain
employe
e
OCTAPA
CE
Profiling
Innovation
IT skill
develo
pment
-
8/13/2019 Summer Report Cover Letter
33/33
which no standards exist. The measures should be precise and consistent surrogate for
achieving the desired objectives.
Link performance measures to rewards: A reward system that is easily understood andis prompt in rewarding employees motivates them to attain greater heights.
Install a simple tracking service: A performance metrics ant targets are of no value ifthey are not tracked quickly, feedback not provided and lessons not learnt.
Create and link the balance score cards at all level of the organizations: Anorganization will better serve its purpose of providing delight to all its stake holders if
it develops score card at corporate, divisional and individual levels. There should be a
link between these scorecards. The divisional score card should follow from corporate
score card and the individual score card should follow from divisional score card.
Communication: the balance score card is a communication device whichcommunicates strategy and its components to all levels of organization.
Linking strategic planning, balance score card and budgeting process: The strategicplanning process that builds a balance score card should be linked to the budgeting
process to set priorities and to allocate resources to strategic initiatives.
CONCLUSION:
The Performance Management System is at nascent stage in Raymond. Lots of activities are
being initiated by the Human Resource Department to stream line the process but still lot of
loop holes exists. IT infrastructure available can be leveraged to a great extent to support
the Performance Manage System. Better method of setting KRA and Appraisal System can
be implemented to make it near perfect.
Internship at Raymond was an enriching experience that would be remembered for life. It
helped me both professionally and personally. Professionally I had a holistic view of HR
world in the corporate life. I got to know the nuances of the HR field which would help me in
shaping my corporate career.