performance appraisal the limitations
TRANSCRIPT
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E2-E3
MANAGEMENT
GROUP PERFORMANCE MANAGEMENT
SYSTEM
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WELCOME
This is a presentation for the E2-E3 MANAGEMENT
Module for the Topic: GPMS
Eligibility: Those who have got the Upgradation from
E2 to E3.
This presentation is last updated on 17-03-2011.
You can also visit the Digital library of BSNL to see
this topic.
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Agenda
Understand concept of Group Performance
Management System (GPMS)
Foundation of GPMS and BBSC
Groupings in GPMS of BSNL
Sample GPMS
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Performance Appraisal
It is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.It helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in deciding employee’s promotion, transfer, incentives and pay increase.
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Performance Management
It is a system which manages performance.
It sets performance objectives associated with strategic and/or operational plans.
It is the system for managing, leading, organizing it and controlling performance.
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GPMS concept in BSNL
It is an initiative under Project Shikhar.
It’s intent to have an objective and transparent system for assessing performance.
It is a system for Identifying KPI for individuals and various functional groups within the organization.
Assigning objective KPIs to distinct groups aligned with organizational objectives.
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GPMS concept in BSNL
Assessing targets and their weightage against such KPIs in objective & transparent manner.
Used as yardstick for assessment of performance.
Providing a basis for performance related HR policies.
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Foundation of GPMS
Similar with Balanced Business Score Card (BBSC) concept adopted by BSNL in 2006.
The GPMS has been introduced in 2009.
GPMS scorecards for all the group types have been designed to consist of Key Performance Indicators (KPIs).
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Shortfalls of BBSC set up
adopted by BSNL
Job descriptions at an individual level were not clearly defined.
So creation of individual score card was not very objective and systematic.
The long list of activities for each division, without clear cut delineation of activities and responsibilities.
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Shortfalls of BBSC set up
adopted by BSNL
So it made less conducive to effectively identify and communicate KRA (key responsibility area) of a specific post.
The large number of KPIs within each Scorecard.
Absence of critical enablers such as an appropriate organization structure, well defined processes for tracking performance and IT systems support hamper their effective implementation .
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Preparation of GPMS parameter
Derived from the Vision and Strategy of the organization.PlanningLong term strategic planShort term business plan and budgetsMeasurableFocused set of measuresMeasures represent organization's plan and vision
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Preparation of GPMS parameter
ReviewPlans are regularly reviewed and suitably revisedPerformance Rewards are linked to driving key measures
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Evaluation of GPMS scorecards
The evaluation for groups at The corporate office: By CMD, Territorial Circles :By the Management
Committee (MC), L.no 4-2l 201O-(Restg) Date: l2th July'2010 :
North Zone Director (CM)South Zone Director (CFA)
East Zone Director (ENT)West Zone Director (HR)
Non-territorial circles: By respective corporate office Directors and Exe. Directors.
SSAs: By the respective Circle Heads
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Evaluation of GPMS scorecards
KPIs measured on financial, customer / marketand operational parameters.
Overall performance assessment KPI would bedone by the person whom the group reports to.
Further, every scorecard has a parameter tomeasure customer satisfaction.
For circles which do not have any externalcustomers, the internal customers / stakeholderswould be doing the evaluation.
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GPMS implementation in BSNL
Based on new organization structure of BSNL.KRA/KPIs are identified and defined on the basis of New BU (Business unit) structure, in consultation with top executives of the respective BU.Number of KPIs has kept less to have focus measurement of Key performance areas.Optimum combination of quantitative and qualitative measurement.KPIs are defined as per functional activities.
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Groupings in BSNL
Category Group Type Group
types
No.of
groups
Corporate
Office
1.Consumer Fixed Access
2.Consumer Mobility
3. Enterprise
4. New businesses
5. Corporate Affairs
6. HR (Incl. Legal and
Vigilance)
7. Finance
7 7
Territorial Territorial Circle 1 26
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Groupings in BSNL
Category Group Type Group
types
No. of
groups
Non
Territorial
Circle
1. Project Circle 1 5
2. Maintenance Region 1 4
3. Telecom Factory 1 3
4. Training Circle 1 3
5. QA, 6. Telecom Stores,
7. Inspections , 8. ITPC,9.
NCES, 10. Data N/W
6 6
SSA SSAs 1 330
Total 19 384
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BBSC Concept
In BBSC four perspectives
The Learning and Growth Perspective
The Business Process Perspective
The Customer Perspective
The Financial Perspective
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Learning and Growth
To achieve our vision, how will we sustain our
ability to change and improve.
The infrastructure that the organization must
build to create long-term growth and
improvement
Comes from:
People
Systems
Organizational procedures
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Business process perspective
Every business has a value chain by which value is created
and delivered
Customer
need
identified
Identify the
markets/
create the product
Build the
product/
Deliver the product
Service
the
customer
Customer
needs to
be
satisf2ied
Innovation process Operations process Post sale service process
Innovation process : Critical to the future success of the
business.
Operations process : Needed for efficient, consistent and
timely delivery of existing product and services to the
customer.
Post sale service process: Warranty related, payment or
other activities enabling the customers to enjoy the quality
product
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Customer Perspective
How are you performing from customers perspective?
What are the factors that really matter to customer?
Main concern of customers are:
Time – the time the company receives an order to the time it
actually deliver it.
Quality – Defect levels as perceived by the customers.
Service- What is the value, your product or service is creating
for the customer.
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Customer outcome measures
Market Share
Retention
Acquisition
Satisfaction
Profitability
Satisfaction
Acquisition RetentionProfitability
Market Share
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Financial perspective
This has to do with :
Profitability
Growth
Shareholder Value
Increasing Revenue
Cost reduction & Productivity Improvement
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Linkage among four perspectives
Training
Better Process
Control
Improved
Quality
Greater Reliability
Increased Customer
Satisfaction
More purchase/Use
Greater Financial
Return
Innovation &
Training
Internal
process
Customer
Financial
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Parameters in GPMS Scorecard
Negative or Positive
Each parameter is given weightage and target (fair,
good, excellent)
Sum of weight of all parameters equals 100.
Total score against KPI=Weightage of a parameter
x performance score.
Final score=Sum total of scores for all parameters.
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Targets
Derived from company’s targets conveyed
down the line.
Can be changed on review in exceptional
cases.
Must be based on accurate forecast
considering appropriate business
environment.
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Targets setting against each
parameter of the scorecard. Performance level to be defined for Fair, Good and Excellent.Score to be calculated in a linear manner as per achievement. Target Performance Levels
Performance less than the fair target will get ‘Zero’ score.
Target Performance level
100 Cr
Fair Good Excellent
60 80 100
50 Cr 75 Cr 100 Cr
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SSA GPMS sample- 1/5G
roup
Gro
up level
weig
hta
ge
Dim
en
sio
n
KP
I
Weig
hta
ge
% Targ
et
Performa
nce Level
Ach
vd
Ma
rks
Ach
ieve
dW
eig
hte
d
Sco
re
Fai
Good
Exce
l
C
F
A
25
%
Fin CFA revenue (Rs. Cr.) 40
C/MNet adds - (by number of subscribers)
Basic (in 000's)5
C/MNet adds - (by number of subscribers)
Broadband (in 000's)10
OpnCCR rate for Landline – 50% weightage
each for local and STD10
Opn Fault rate (LL, BB) 5
Opn% of faults cleared by next working day
(LL, BB)10
Opn
% of new services (LL, BB) provisioned
within the norm (7 days for LL, 15 days for
BB)
10
OpnOverall performance (on scale of 1 to 5 -
to be assessed by Circle Head)10
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SSA GPMS sample- 2/5
30
Gro
up
we
igh
tag
e
Dim
ensio
n
KP
I
Weig
hta
ge
%
Targ
et
Performa
nce level
Ach
vd
Ma
rks A
ch
ieve
d
We
igh
ted
Sco
re
Fa
i
Go
od
Exce
l
Fin CM revenue (Rs.cr.) 40
M
o
bi
lit
y
30
%C/M
CM Net adds (by number of subs
in 000's)20
Opn BTS availability (%) 10
Opn Call drop rate (%) 10
OpnBlocked call rate - TCH
congestion (%)10
Opn
Overall performance (on scale of
1 to 5 - to be assessed by Circle
Head)
10
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SSA GPMS sample- 3/5
31
Gro
up
weig
hta
ge
Dim
ensio
n
KP
I
Weig
hta
ge
%
Targ
et
Perform
Ach
vd
Ma
rks A
ch
ieve
d
Weig
hte
d S
core
Fa
i
Go
o
dE
xc
el
Fin Enterprise BU revenue( Rs .Cr) 40
E
nt
er
pr
is
e
1
5
%C/M
Number of new Enterprise Gold + Silver
accounts penetrated20
Opn MLLN circuit uptime (%) 15
Opn Average provisioning time (no. of days) 15
OpnOverall performance (on scale of 1 to 5 -
to be assessed by Circle Head)10
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SSA GPMS sample- 4/5G
rou
pG
rou
p l
evel
wei
gh
tag
e
Dim
ensi
on
KP
I
Wei
gh
tag
e
%
Ta
rget
Per
fo
rman
c
e
level
sT
arg
et
ach
ived
Ma
rks
ach
ived
Wei
gh
ted
Sco
re
Fa
i
r Go
od
Ex
c
el
Oth
ers 20
%
Fin New Businesses revenue (Rs. Cr.) 20
Fin
Budget adherence on opex (% actual spend
vs. budgeted) (on items excluding those in
schedule P)
20
Fin
Overall assessment on Finance related
issues, including budget adherence, financial
planning, accounting, revenue assurance etc.
(on scale of 1 to 5 - to be assessed by Circle
Head)
20
C/MCustomer satisfaction level (including QoS)
(Scale of 1 to 5)20
Empl
devel
Overall assessment on HR related issues,
including training, recruiting, promotion,
transfers etc. (on scale of 1 to 5 - to be
assessed by Circle Head)
20
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SSA GPMS sample- 5/5G
rou
p
Gro
up
lev
el
wei
gh
tag
e
Dim
ensi
on
KP
I
% W
eigh
tage
Tar
get
Performance
levels
Tar
get
ach
ived
Mar
ks
achiv
ed
Wei
ghte
d
Sco
re
Fai
r
Go
od
Exce
l
Ov
eral
l
10
%
Overall
performance (on
scale of 1 to 5- to
be assessed by
circle head)
10
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IPMS
Ultimate linkage to individual performance.
Initially implemented only up to DGM level.
Gradually, the system to be expanded to
other levels.
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Features of Good Score Card
4. Financial LinkageEvery objective can ultimately be related to financial
results
1. Executive InvolvementStrategic decision makers must validate and own
the strategy and related measures
2. Cause-and-Effect RelationshipsEvery objective selected should be part of a chain of
cause and effect linkages that represent the
strategy
3. Balance between outcome and leading
measures There should be a balance of outcome
measures and leading measures to facilitate
anticipatory management
5. Linkage of Initiatives and Measures: Each
initiative should be based on a gap between
baseline and target.
A good Scorecard
will “tell the story”
of your strategy in
actionable terms.
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Discrimination
Failure to communicate standard
Failure to give timely feedback
Failure to allow employee to correct
performance
Inconsistency in measuring performance
Failure to document performance objectively
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