HR ERP : PERFORMANCE MANAGEMENT MODULE

Group III

Nilesh Jain (26)Fazeel Kazi (29)Prashant Kokare (31)Sumeet Kudal (32)Ajay Patel (62)Milind Walke (65)

HR ERP – An Intro

Human Resources is a fundamental part of the scheme of every successful enterprise,

as the information received by this area needs to have a continuous follow-up and correct evaluation for the professional development and the social welfare of the workers.

HR ERP – The need

However, due to the large quantity of information that is handled in this area, the job is becoming more difficult everyday.

ERP is represented like a useful tool to help and orient the users to focus their work in the direct relationship with the staff, and to link the personal skills and aspirations of the personnel related to the objectives and goals of the company.

Various Modules of a Typical ERP

Enterprise planning (Defn. job reqs.) Staff selection process Employee record management Payroll management Performance Management Learning & Development Reporting Employee Self Service Manager Self Service

Performance Management

Performance Management System Performance Management System ModelModel

Performance PlanningEstablish and define Key responsibilities Objectives Expected outcomes Priorities Behavioral factors

Performance MonitoringTimely, relevant feedback Maintain log Mid-Year review Refine responsibilities/objectives Revisit priorities

Performance Appraisal Compile/review data Request self-appraisal Prepare draft appraisal Review with next-level supervisor Finalize appraisal Meet with employee

Development & Follow Up Identify interests and needs to

enhance performance Establish training plan Review job description Identify new challenges

CASE – I: GAMMON INDIA LIMITED CASE – I: GAMMON INDIA LIMITED

Process of Performance Appraisal Process of Performance Appraisal SystemSystem

Individual Development Plan

Career Advancement Potential

Final Rating by Reviewer

Assessment by Moderation Committee

Final Results of Performance Appraisal

Start

Step 1- Identification of Category

1. LEVEL A 2. LEVEL B 3. LEVEL C 4. LEVEL D

Probation Period Appraisal

Initialization of Performance Appraisal Process—Notice to all departments at

HO and Sites

Check for applicability(Applicable or Not-Applicable)

Employees joining before 30th

September

Yes

No

P

R

O

C

E

S

S

Pre- Appraisal Meetings

Step 2- Self-Appraisal

Step 3- Appraisal by Appraiser

Step 4- Appraisal by Reviewer

Calculation of overall ratings of the employee

Assessment by the Moderation Committee

Review by the Accepting Committee

Decisions to be taken on increments, incentives and

Promotions.

Conveyance of Results

Implementation of Results

P

R

O

C

E

S

S

OVERALL ASSESSMENT OVERALL ASSESSMENT SCORESCORE

Overall rating is to be filled by the appraiser and reviewed by the reviewer.

Rating scales have been developed in descending order as follows

Overall Assessment Score Corresponding response description

5 Exceptional Achiever

4 High Achiever

3 Consistent Contributor

2 Average Performer

1 Under Achiever

ConclusionConclusion

o Traditional – Typical Paper-Pencil approach.

o Data cannot be used for further processing.

o Not integrated real time to other functions such as

Training/Finance.

o Overall the process just looks as a formality.

CASE – II: L&T and PACECASE – II: L&T and PACE

JOURNEY: PACE s/w was started in 1997. It goes through yearly improvement. It helps in better alignment.

The system that has been developed currently facilitates the following:

Performance Planning (PP)

Performance Oriented Development Plan (PODP)

Performance Appraisal (PA)

Moderation

Performance Feedback

Online Performance Management System Online Performance Management System (PMS)(PMS)

Online Performance appraisal Online Performance appraisal SystemSystem

Performance PlanPerformance Plan

Review by IS (Performance Plan)Review by IS (Performance Plan)

Performance oriented development Performance oriented development plan (PODP)plan (PODP)

Annual Performance AppraisalAnnual Performance Appraisal

ReportinReportingg

• Bell curve distribution is as per the Industry average

• Bell curve reflects Overall company’s growthPMSrating

1 2 3 4 5 6 7 8

Expected % age

5% 10% 15% 20% 20% 15% 10% 5%

Pros & ConsPros & Cons

Working software in place – some seriousness in impl.

Online – ease of track and access.The process brings in more involvement.

Not linked to other functions of organizationOrganization Wide view missing.Difficulty in querying and reportingRedundant data

ERP case: Atlantic Manufacturing

General Features HR information enables management of diverse workforce Supports managerial decision making through query and reporting tools Operational level controls

Maintain and update employee files Job analysis files Design files Regulatory files Skills inventory files

Strategic level controls Human capital inventory for tracking employees Position control linked to budgeting Labor/management relationships Business intelligence tools for predicting trends

Module integration is significant benefit

Employees’ Performance Issues

What are the benefits of automated time and attendance records?

What advantages might accrue to employees using these systems?

Tracking Employees’ Performance

Employees’ attendance, time at work, and skill levels Most companies uncertain If tracked, usually manual Records usually neglected Often piece-meal, no end-to-end solution

Benefits of automating Eliminates manual process

Time-consuming Error-prone Better analysis More control

Advantages

Uses Workbrain Inc.’s ERM3, SAP financial applications, and PeopleSoft payroll processing Web-based employee-relationship management software

Optimized scheduling and tracking of employees Interfaces with PeopleSoft applications

Time- and labor-management Accessible from web, phone, badge terminals Information available in real-time

Allows for quick staffing adjustments Financial benefits to employees, company

Summary

ERP systems include HR modules that offer records management, benefits administration, and payroll Offer integrated operational and strategic level

controls Scalable and very flexible