pms in india final (1)
TRANSCRIPT
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PERFORMANCEMANAGEMENT
SYSTEM IN INDIA
Anushree Gupta (108I08)
Khyati Khemka (108I04)
Mayank Raturi (108J53)
Sameer Chawla (108J31)
Akshita Saxena (108)
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Introduction toIntroduction to
Performance ManagementPerformance Management
yYoder: Performance Appraisal
refers to all formal proceduresused in working organizations
to evaluate personalities and
contributions and potential ofgroup members.
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Meaning
y Performance Appraisal is a processsupporting the use of human resource inan organization.
y It is possibly managements most
powerful tool in controlling performanceand productivity of human resources inthe organization.
y Used effectively, it can have tremendousstrategic potential forgoverningemployee behaviorand in turn,organizations direction through itsdynamic links to selection, training,career-path planning and reward systems.
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Appraisal Practices in IndiaAppraisal Practices in India
Rao (1982) conducted a survey of appraisal practices of 45organizations. Observations:
y 50% organizations-regulating employee behavior and developingemployee capabilities
y 30% organizations-only controlling and regulating employeebehavior
y 10% organizations-development purposes
The survey revealed some interesting practices being followedin these organizations:
y Appraisal of a person falling under the category outstandingshould be accompanied by a brief citation of the individualsperformance
y The final ratings are given by an officer three levels above theappraisee
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y Appraisal forms for workers and staff aresimple (one page). Lengthy for officers
and managersy A merit award system operates for
those whose performance ispraiseworthy
y Ratings are given for various qualities ina printed form
y First assessment is finalized by thereport
ing officer after discussions withthe appraisee. Then sent to the head ofthe division who sends it to thedivisional director
y The senior managers of the company areexpected to give a minimum offourobjectives per yearand plans as to how
they will be achieved
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PERFORMANCE MANAGEMENT SYSTEM
AT GRASIM INDUSTRIES
TRADITIONAL METHOD:
a) Supervisors used to rate the employees.
b) Time consuming, lot of paper work- LogisticalNightmare
CURRENTLY USED METHOD:
In the year 2001 Grasim outsourced its HRsystem to a company named ICOMM.
a) Appraisals are done online. Employee-Appraiser communications are also
maintained online.b) All the users were empowered independently
using separate Login ID's to maintaincomplete confidentiality during the process.
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ANALYSIS OF THE PERFORMANCE
MANAGEMENT SYSTEM
BENEFITS:y Time savingy Can easily differentiate between poor performers
and good performersy Helps in forecasting budgeting for the next year.
DRAWBACKS:y Though the system is doing well but since
everything is standardized so it can lead to lessconsideration of human factors. HR as a humanscience can lose its significance.
SUGGESTIONS:y Rather than making the whole process
completely technical, monitoring of the processcan be done by skilled experts such that itbecomes less time consuming and takes specialcases into consideration.
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Appraisal systems in banksAppraisal systems in banks
y Traditional approach: (assessment)1. General Intelligence2. Job knowledge3. Initiative and resourcefulness4. Supervision5. Business capacity6. Ability to access sound business
propositions7. Dependability8. Employee relationship9. Public relationship10. Appearance, conduct and manners11. Significant achievements etc
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Modern approach
y Performance related as well as trait basedappraisals.
y Identification of strengths and
weaknesses.
y Laid stress on the use of self appraisal and360 degree feedback.
y Allahabad bank developed a system for
appraisal in the following areas of
assessment:
1. Job performance
2. Job knowledge / skills and personal
characteristics
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Punjab National Bank
y HR Perspectives:
1. PNB Pariwar
2. Mission-Committed work force
3. Emphasis on ethical conduct
4. People Soft
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PMS in PNBPMS in PNB
y Development Oriented Appraisal.y The company follows a Self Appraisal
Method, which is then assessed rated) bythe senior authority, and then goes to thehigher authorities for the sanction.
y
Appraisal is done on the AchievementFigure Indicator, which includes businessindicators like deposits, advances.
y In addition to this performance appraisalbreakup is also based on various other
activities like Sanction overdue for renewal,No. of complaints outstanding, no. of offices visited, no. of villages adopted (incase of rural schemes which the banklaunches)
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EXPERIENCES OF THE LAST DECADEEXPERIENCES OF THE LAST DECADE
y Changes in performance appraisalsystem at Eicher reflect maturing ofthe HR function with emphasis onquality, teamwork & process ofdevelopment. Current system hasmoved away from trait-orientedsubjective system to an objectiveform.
y Appraisal system at TELCO is MBObased & process is mostly closed.
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The SAIL system of appraisal includes
self appraisal, primary grading,performance review committee &development plan.
UTI has an appraisal system whose aimis to develop boss-subordinaterelationship.
It broadly has three parts:
y Focus on self appraisal of performancey Focus on confidential aspect of
potential
y Review of appraisal
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y At MODI Xerox, performance planning
& appraisal is based on the RROswhich are filled for every appraisee.
The 4 goal areas taken are :
y Customer satisfaction
y Employee satisfaction
y Business results
y Quality
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In the area of performanceappraisals, the movement from atop-down approach to a
completely employee centeredapproach is almost completewith the realization that the
appraisee is the most criticalcomponent of any performanceappraisal system.
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MANAGERIAL PREFERENCES AND
ATTITUDES TO APPRAISALS
y Surveys conducted seeking the
opinions and preferences of managers
indicate that managers themselves areinterested in open appraisals systems.
y Another survey conducted in 1978
showed that 98% of 588 officers
surveyed felt that the appraisal system
should help recognize theirstrengths
and weakness.
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This open appraisal system of the kind
was introduced on an experimentalbasis. A year after introducing the new
system a second survey was conducted
to assess the opinions of officers.
About 63 %63 % stated that they were willingto show the full report to their
appraisees.
84%84% of them preferred to haveperformance review discussion.
53%53% of them preferred trait-based
assessment of their subordinates.
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Kulkarni,Kulkarni, NangiaNangia andand PrakasamPrakasam(1980) of the National
Institute of Bank Management conducted a nation wide
opinion survey of the bank employees on variouspersonnel issues.
Only about 14%14% of the employees stated that they
were aware of the basis on which their supervisor
evaluated their work in annual confidential reports.Remaining 55% had no idea at all of the criteria
used, 33% had some general idea.
68% felt that data filled in annual confidential
reports do not focus on the job performancefocus on the job performance.
73% felt that the appraisee should be interviewedabout his performance and given opportunity to
provide inputs for his performance assessment.inputs for his performance assessment.
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Appraisal Methods Of Wipro
y e-performance management
yyPCMMPCMM( People Capability MaturityModel)
y Identification Of Star performersStar performersy Intensive training programs
yyQuarterly and half yearlyQuarterly and half yearlyperformance appraisal
yyWipro Employee Stock Option PlanWipro Employee Stock Option Plan(WESOP) allows employees to sharein the companies success
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GENERAL TRENDSA sizeable number of private and public sector
organizations continue to follow trait-based,confidential formats of performance appraisal.
Almost all them are dissatisfied with such forms
of appraisals, particularly for assessing their
managers.(dissatisfaction arises mainly from :high subjectivity in appraisals, lack of correlation
with job-related factors, the appraisee not having
an opportunity to project his performance etc)
With increased recognition being given to thepersonnel function, a few organization have
already begun to experiment with new systems of
appraisals.
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y A large number of executives including
those at senior level see the role of
developing HR as mainly that of personnel or
HRD department. This lack of recognition
prevents most executives from effective use
of development-oriented appraisal systems.
y In some originations the symbols are taken
more seriously than the purpose or the spirit
behind these. Personnel departments are
still struggling to overcome such problems.
y Managers want open systems of appraisals
and personnel departments are still
struggling to find appraisal models suitable
for their organizations.
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FUTURE OF PERFORMANCEFUTURE OF PERFORMANCE
APPRAILSAPPRAILSy Great degree of awakening taking place in the
managerial world about potential uses ofperformance appraisals.
y Unlike west where training is perceived as themost important mechanism of developingemployees, in India appraisal systems arebeing recognized as an equally potential toolfor development.
y
In coming years there is likely to be more andmore experimentation with new appraisalsystems that contribute to improvements inthe quality of work life as well as to thedevelopment of human resources.
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SUGGESSTIONSSUGGESSTIONSy Role Descriptions : Organizational roles and
functions must be defined clearly. To this end, jobdescriptions must be prepared for each job.
y Qualities needed to perform the roles : Based onjob descriptions, the roles to be played by people
must be prepared (i.e. technical, managerial jobsand behavioral dimensions).
y Rating mechanisms : Besides listing the functionand qualities, the potential appraisal system mustlist mechanisms of judging the qualities of employees such as : i. Rating by others, ii. Tests,iii. Games and iv. Records.
y Organizing the system : After covering the abovepreliminaries, the HR manager must set up asystem that will allow the introduction thescheme smoothly incorporating answers to some
complex questions.