PERFORMANCE MANAGEMENT SYSTEMOF 5 COMPANIES

Submitted By –SHWETA BEBARTAISB&M, Bangalore

Submitted To –Prof. ELIZABETH MATHEW

Copyright - ManagementStudyGuide.com

What is Performance Appraisal?

Performance Appraisal (PA) is the process that is used to evaluate the personality, performance and potential of the employees of an organization.

It is a process of evaluating and communicating to an employee how he or she is performing the job and establishing a plan for improvement.

Hence, it is a system of review and evaluation of job performance to assess accomplishments and to evolve plans for development.

SAP(UTOPIA- a partner company

)

Employee Performance Review - • Believe in One to One Manager Interaction• Rating Method is used. • Rating will be given by manager and by employee.• It will be done once a year.• Final appraisal of an employee will be decided by HR.• Employee Performance Review Form will be given to individual

employees. Client appreciation mail or any other attachment can be added.

• If not satisfied, then again one to one interaction will be done with HR and Manger.

• Final payroll will be decided in the next month.

RATING DESCRIPTION DETALIED INFORMATION RATING

RATING VIEW

Significantly exceeds performance requirements

Performance levels and accomplishments far exceed normal expectations. This category is reserved for the employee who truly stands out and clearly and consistently demonstrates exceptional accomplishments in terms of quality and quantity of work that is easily recognized as truly exceptional by others 5 Very Strong

Exceeds performance requirements

Performance frequently exceeds job requirements. Accomplishments are regularly above expected levels. Performance at a level beyond expectations is sustained, and the quality of work is uniformly high

4 Strong

Meets performance requirements

Performance clearly and fully meets all the requirements of the position in terms of quality and quantity of work. It is described as good, solid performance, with thorough and on-time results. While minor deviations may occur, the overall level of performance meets all position requirements

3

Neither a Strength nor a Development need

Marginally meets performance requirements

Performance is noticeably less than expected. The employee generally meets most job requirements, but struggles to fully meet them all. The need for further development and improvement is clearly recognized

2Some Improvement Needed

Unacceptable performance

Performance must improve substantially within a reasonable period of time if the individual is to remain in this position. The employee is not meeting the job requirements 1

Major Improvement Needed

CORE COMPETENCIES ARE –• Idea Leadership• Handling Complexity• Superior Execution• Drive for Results• Influencing/Negotiating• Attracting & Developing Talent• Team Leadership• Professional Maturity• Business Savvy• Risk Taking• Adaptability• Build & Sustain Relationships• Customer Focus• Diversity

• SELF and MANGER EVALUATION FORM is also there in Employee Performance Review Form. In this, goals are given with percentage weightage like –

a. Achieve Excellence in Project Delivery 50% b. Achieving Excellence in Client Facing Skills 25% c. Standardized Processes & Methodology for Key Service Offerings 25%

Suggestion’s

From my point of view, Rating Method is good to adopt because –• It is customer driven company which provide solutions to

different sectors.• Fast and Time saving method.• Give motivation while an employee can discuss their

achievement by some attachment.

GENERAL ELECTRIC

• General Electric, American multinational corporation incorporated in New York and headquartered in Fairfield, Connecticut in the United States. In 2011, GE ranked among the Fortune 500 as the 26th-largest firm in the U.S. by gross revenue, as well as the 14th most profitable.

• GE's divisions include GE Capital, GE Power & Water, GE Oil & Gas, GE Aviation, GE Healthcare, GE Transportation, and GE Home & Business Solutions.

• “Management by Objective” and “Rating Scale Method” are the methods which are used in Performance Management System.

• Online system of EMS (evaluation measurement system) portal is created.

• In performance evaluations, GE executives focus on one’s ability to balance risk and return and deliver long-term results for shareowners.

• Thousands of people from every level of the company are trained at the Jack F. Welch Leadership Center.

• 3 Participant will be there in EMS. I.e. Employee, Manager and Senior Manager.• EMS will be done once in a year and reviewed quarterly.• EMS verticals are defined as- 1. Leadership 2. Team Work and Pipeline 3. Quality 4. Cost.

Evaluation Measurement System• Employee need to set goals yearly in the month of April.• Employee has to select all 4 verticals and under each vertical, choice of objectives and challenge's are

given and employee has to choose.• One of the additional goal can be set by the employee.• Quarterly Meeting will be done by immediate manger and it will be of purely “Professional Discussion”.

Employees has to take initiative of its own and invite manager for this discussion.• Quarterly Meeting will be in June, September and December. In meeting, Graph Representation of

employee performance will be shared by manager quarterly. And Guidelines and problem faced in the critical situation to be discussed.

• Training session will be given to fill the online EMS.• 31st December is the date set to submit EMS Form w.r.t achieve goals and objectives in the entire year.

Overall summary should be only in 2000 words.• For every question, employee has to rate his own in Rating Line – 1,2,3,4,5.• Training plan will be discussed according to the rating. • EMS Form will be proceed to Manger and it has to be approved. Manger has the right to comment on

employee strength, Weakness, Productivity and Goals, but no discussion with the employee.• in the whole scenario, Employees cannot see the manger comment and then, EMS Form will revert to

Senior manger for approve.• After whole process, Senior Manger will release the EMS Form Portal to access for employees. In this,

Rating will be given to the employees w.r.t to all 5 verticals. And by putting formula, overall rating is given to the employee.

• If satisfied or not, discussion will be there. Feedback and Comments will be given by immediate manger. It will be kind of one and half an hour discussion.

• In the month of April, Salary will be incremented.

Suggestion’s• From my point of view, adoption of “Management by Objective” and

“Rating Scale Method” is perfect for GE because –• GE believes in Employee Driven Process.• Transparent Process• No partiality will be seen in the whole process. Fair decision will be made.• Employee can stand of his own words for its objectives and goals.

Tata Consultancy Services Limited (TCS) is a global IT services, business solutions and outsourcing company. Its a subsidiary of the Tata Group. It is Ranked 20 in the list of top companies of India, by Fortune India 500magazine. TCS conducts two appraisals:

1. At the end of the year

2. At the end of a project.

Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on the basis of targets at four levels - Financial perspective - contribution in terms of revenue growth, cost reduction and

improved asset utilization.

Customer perspective - Looks at the differentiating value proposition offered by the employee.

Internal perspective -Refers to the employee’s contribution in creating and sustaining value.

Learning and growth - are self-explanatory.

TCS can review and design incentive plans which could include any of the following:• Annual Bonus Plans• Short-term Incentive Plans• Long-term Incentive Plans• Equity Incentive Plans

TCS adopted ECONOMIC VALUE ADDED MODEL to focus on continuous improvement rather than short term goals and also to motivate employees. EVA measured operating and financial performance of the organization and the compensation of all employees was linked to it. It has 4 M’s –

Measurement Management System Motivation Mindset

SUGGESTION’s

• From my point of view, BALANCE SCORECARD is not the good method. It does not give the clear picture of how performance management process is done.

• I should suggest that EVA model should be removed because it mainly concentrated on return on investments, due to which the growth of TCS could be restricted.

• Attrition Rate is more in IT Industry.• Should get some good management ideas.

TITAN

• Titan Industries is the world's fifth largest watch manufacturer and India's leading producer of watches under the Titan, Raga, Orion, Nebula, Octane etc.

• TITAN believes that success of PMS shall depend on whole HRM Process.• Recruitment process acts as an important support for success of PMS.• It designs in such a way that promotes a two way “dialogue”.• Objectives of PMS to create role clarity and clarity performance expectations and measure

at individual , group and organizational levels.• To provide job guidance, feedback and counseling to build upon the strengths and areas of

improvement• To identify training n development needs of the employees.• To encourage superior performance measuring stretch goals.

PMS has 4 steps -

• Performance planning – it involves identifying KRA, Understanding critical factors and drawing the development plan

• Coaching• Performance review meetings• Rewards and Recognition• Titan has introduced 360 degree leadership development program for senior management.

SUGGESTION’s

From my point of view, 360 degree method is not the good method at present scenario because –1. 360 degree method is not effective2. Takes lot of time3. It is not accurate feedback and biased

BIG BAZZAR

Big Bazaar conducts the performance appraisal in the month of April annually. Based on their performance, increments will be given in their pay. If an employee achieves or exceeds the target given along with their team will be

provided with attractive cash and incentives. Big Bazaar specifically targets working women and home makers who are the

primary decision makers. Future group has its own training division for all its employee named as- Future

Learning and Development Limited. Employees will be given 20 days of training. 360 Degree appraisal method is used for low level employees, not for managers or

high level employees.

SUGGESTION’s

From my point of view, 360 degree is not effective in India. People still hesitate to use this method because –1. The organizations are ruled as per hierarchy2. subordinates do not open up about their boss.3. Managers Nature4. Power and Politics exists in organization5. Majorly, vertical communication (Top to Down) exists.