The meaning of marketing has nearly an infinite number of possible definitions. It involves psychology, statistics, art, logical and creative thinking. The one common denominator within all definitions of marketing is that it leads to an exchange between vendor and consumer. Marketing is used to sell almost every product in our culture, for example, cars, movies, food, furniture, clothes, the list is endless. Specifically defining marketing involves identifying the meaning, the individual influence it makes on a personal and professional level in the microcosms of the population it effects. Marketing and its meaning clearly plays an extremely important role in our culture.
On a personal level, I perceive marketing as an attempt to stimulate my own identification. The idea is that products I use define if I am a good quality person, wife, mother, and woman. In my opinion, many organizations attempt to persuade the consumer, through identifying those human desires that will compel the buyer to purchase their product. I personally feel the goal of organizations is to convince shoppers that a happier, healthier, safer and more satisfying life involves the choice of buying and using the product they are selling.
The Greek word for market is agora, which means “gathering place”. In the Agora of ancient Greece, buyers and sellers bickered over the features, benefits and prices of the products being bought and sold there. “The first markets were places, not targets, demographics, seats, eyeballs or other abstractions. In the first markets, producers and consumers were a handshake apart—and so were all the other reciprocal market nouns: producer and consumer, vendor and customer, supply and demand. They were all embodied in seller and buyer.” (Searls, 2000). In business today, the term market also refers to personality, tastes, and the group of consumers that are interested in a material item or service known as the product. Industry terms that describe the level of narrowing of the market base include:• Total Population• Potential Market – total population who have interest in obtaining the product.• Available Market – potential market who have a sufficient amount capital to buy the product.• Qualified available market – available market who authorized to buy the product.• Target market – qualified available market that the organization has chosen to serve.• Penetrated market – target market who have bought the product.
(NetMBA Business Knowledge Center, 2002-2007).We have recreated the agora through the internet, through mass media, through print and it has become global marketplace. The means in which products are sold at market may have evolved, diversified and become somewhat convoluted , and yet the core premise still exists. It is all embodied in seller versus buyer.
Success of products sold through marketing becomes evident when the product becoming popular, and becomes thought of as needed by the consumer. In an article in which a gentleman by the name of Bob Maxwell defines the difference in products and brands, additionally he addresses the meaning of marketing. Maxwell states, “Consumers exist in personal and professional networks where cultural signals are used to communicate status, beliefs, attitudes and values. The clothes worn, TV shows viewed, music listened to, restaurants visited and media personalities favored are just a few of the signals people use to express who they are. Product brands are important symbols in this expression.” (Maxwell, 2007). He further explains that according to research that it is human nature for people to look for dominating media magnets in order to reinforce their concept of self. He theorizes that by identifying the worth the patron relates to in a product; connections, outlooks, attitudes and philosophies, marketers will be more capable of developing inspired and motivating testaments of their product. The results of such knowledge would assist them to link their merchandise with an appropriate consumer base, increasing the success of profitability by selling the product.
My experience in the retail industry revealed valuable information in regards to marketing. We understood that part of the home improvement market was to show the consumer that they were not only able to not only afford the products, but that they were capable to do their own home improvements as well, but most importantly all the products to do whatever job could be purchased at the Home Depot. There are many people who would like to believe that they are talented enough to learn some skills to be able to repair and modify their home. This is one of the core strategies that Home Depot has based its whole marketing strategy behind. With that concept in mind, we designed and built a small display bathroom at the entrance of our store. The walls were included a window and were covered from top to bottom with crown molding, wallpaper, paint, chair rail and wainscot. We used a pedestal sink, and a spa tub. On the wall we hung a stylish in-stock mirror. The floor was tiled, and included base boards. In the window we installed a blind, and decorated it with a coordinated bath style curtain.
I then created a price menu, in which I based all the prices of the products used in the display on a 10’ x 8’ bathroom. As consumers walked in, they would stop and look over the bathroom, and began to imagine the possibilities. I was able to measure the success of marketing based on the increase in sales of those products used in the display. A report could be generated by requesting specific item numbers and dates of sales.
Another key to marketing success is to show value. In another attempt to get the attention of consumers I designed a display that took a multi-item product and broke it down indicating the value and the difference in price if the items were sold separately. Once again I was able to measure the success of the marketing by monitoring a detailed report specifically in regards to the increased sales of this product.
In retail, there is a saying, “Sales cures all.” Therefore anything that employees could do to increase sales would lend towards the profitability and success of the store. Home Depot, at one time, put a lot of capital into the marketing of their enterprise. The goal was to build the confidence and trust of the consumer. The success of Home Depot is well-known, and will almost certainly go down in history as iconic as Coca-Cola.
Successful organizations know the importance of not only marketing, but also marketing to the right populations. A great deal of money is spent identifying the triggers in which compel the populations within these markets to identify with and purchase their products. They are acutely aware of the impact of marketing in all the diverse applications, and its financial return to their increased profitability and ultimately their long-term success.
Saturday, October 31, 2009
Sunday, October 4, 2009
PERFORMANCE MANAGEMENT SYSTEM
PERFORMANCE MANAGEMENT SYSTEM
1: RATIONALE FOR THE STUDY
2: OBJECTIVE OF THE STUDY
3: SCOPE OF THE STUDY
4: CREVIEW OF LITERATURE
5: CONCEPT OF PMS
PROCESS OF PMS
BENEFITS OF PMS
6: PMS FOLLOWED BY DIFFERENT COMPANIES
7: FINDINGS
9: LIMITATION
10: ANNEXURES AND QUESTIONNAIRE
RATIONALE OF THE STUDY
Performance Management System is one of the major functions of Human Resource Management. HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness. It is the people who possess skills, abilities and aptitudes that offer competitive advantage to a firm. It is only human resource that is capable of deciding, implementing and controlling activities. Performance management involves enabling people to perform their work to the best of their ability, meeting and perhaps exceeding targets and standards. Performance management can be coordinated by an interrelated framework between manager and employee. Key areas of the framework to be agreed are objectives, human resource management, standards and performance indicators, and means of reward.
Performance management system is needed for the following purposes:
.Improved organizational profitability
.The bottom line of an organization improves significantly by increasing the productivity and quality of work of each employee.
.Increased employee responsibility
.Performance Management system is also needed for communicating realistic but challenging job expectations and making employees accountable for their decisions and actions result in noticeable improvements in employee tardiness, absences, and commitment to organizational goals.
·Equitable treatment of employees
.All employees are treated fairly by implementing standardized procedures that promote consistency throughout an organization.
·Enhanced quality of work life
.Employees experience greater job satisfaction because they become more successful. In addition, conflict among employees is kept to a minimum.
OBJECTIVE OF THE STUDY
· 1.To identify the performance management system in the company
· 2 To identify the performance of the employees under the current system
· 3.To identify the reasons behind high/low performances
· 4. To identify training needs
· 5. To review the trend of performance management system
· 6. To suggest measures for improvements
· 7. To develop the potential of the staff for further advancements
SCOPE OF THE STUDY
This study describes some of the strengths in current system in the company and some of the areas that are most in need of attention. Many of these themes have been visited before, but this report brings together elements of performance management to show a direction to improve the areas and how this system can provide the means for effective employee services to strengthen themselves.
The study can help improvising the Role of the Finance Officer, making the finance officers more involved with the planning aspects of government to help set goals, determine priorities, and develop accountability and tracking mechanisms to make sure that capital projects deliver on promised results--but this concept applies to many things other than capital projects, including new services, initiatives, or programs.
Performance management study also goes beyond just the finance office--managers and employees throughout the organization can benefit from establishing clear goals and setting up performance measures to track and focus on results.
This data can be explorated to take in the trend of employees’ performance. It can also help the company to make a comparison of performance in future.
TheManaging Performance briefing sheds light on the difference effective performance management makes to service quality and is designed to help those who have an interest in how different menthods are used to improve their performance management. Officers and councillors, and those working with partner bodies at operational and strategic levels, will find this briefing a useful starting point.
The study provide information on the features of effective performance management systems and how systems can be used to make performance management a reality in public sector organisations.
Students may also refer to this data as a secondary source of data and take the help of the study to do something related to the subject.
It is a rapidly changing and evolving system. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.
REVIEW OF LITERATURE
Performance management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a philosophy which values and encourages employee development through a style of management which provides frequent feedback and fosters teamwork. It emphasizes communication and focuses on adding value to the organization by promoting improved job performance and encouraging skill development. Performance Management involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee
Who Manages Performance?
The answer is obvious. The performer or the candidate whose performance is being planned, analyzed, assessed, developed, etc. It is he who manages his performance. It is a mistaken notion to think that the primary responsibility for managing the performance of a person lies with his boss.
The boss is an important instrument in managing performance. He has the responsibility to ensure that it is defined, planned, analyzed, measured, reviewed and developed. He is a partner in this. It is the performer who has to manage his performance.
Whose Performance is to be Planned
Every individual manager understands the reality and circumstances within which he is expected to perform. Individual performance is subject to fewer uncertainties than that of an organization. Organizational uncertainties are a sum of the uncertainties faced by each employee and those arising from the external environment. Not all managers are required to deal with the external environment. Most individuals can plan their performance with some understanding of internal uncertainties. Unfortunately, managers seem to magnify the uncertainties within the organization and feel each one of them will affect their performance. Hence, they argue that performance cannot be planned. This is simply a good escape mechanism.
Organizational plans can at best be goals to strive for. Individual plans should be the actions expected to be undertaken by each manager with the hope of achieving the organizational goals. Organizational goals, corporate plans, mission statements, annual operating plans, budget statements, and performance guidelines issued from the CEO's office from time to time provide the perspective and framework required to determine the departmental goals and, thus, provide the context for an individual performance plan. However, individual performance plans do not have to wait every year for the creation of such a context as only marginal changes are expected from year to year with some exceptions.
It is, of course ideal if these guidelines are available before the individual plans his performance. However in the absence of such guidelines, groups of managers can sit together and set new goals for their department in the context of the previous years' performance and their knowledge of the current situation. They first need to raise a few questions:
How did we perform last year?
What influenced our performance?
How can we improve?
What new challenges can we undertake?
How is the situation going to be different this year?
How do we intend to improve our quality and quality of outputs?
What new process, technology and systems do we want to introduce this year?
Organizations should set their goals and plan their strategies. Departments and other sub-systems should delineate their roles and plan their contributions. Individuals should plan their performance; ideally, the sequence should be from organization to department to individual. This helps in several ways. However, one should not wait for the other indefinitely. Lack of information on organizational plans and strategies should not prevent departments and other sub-units from planning improvements and individuals from planning their performance.
It is often argued that the organizational plans should follow individual plans. This goes against reality in Indian organizations. First of all it does not make sense to consolidate individual plans to make departmental goals and then determine organisational goals. It is difficult to do so. Second, participative management cannot be stretched to such an extent.
Planning Individual Performance through Performance Appraisal
Annual performance appraisal exercises provide good opportunities for performance planning. These provide many ways in which individual performance can be planned, some of which include:
· Task analysis and/or activity analysis;
· Key performance areas (KPAs);
· Key Result Areas (KRAs);
· Task and target identification;
· Activity plans/action plans; and
· Goal-setting exercises.
PMS PROCES
PMS has 4 steps:
1. Performance planning
2. Coaching
3. Performance Review Meetings
4. Rewards and Recognition
The appraisal form serves as a formal written document to assure a mutual understanding of what is expected and how well those expectations are being met.
1. Performance plan involves
a. Identifying Key Result Area:
Areas of responsibility in which an employee is expected to produce results.
· Give direction to a person’s job and help to focus on important job areas.
· Provide a basis for appraisal, counseling and feedback.
· Increasing mutual job understanding with superiors.
· These KRAs may change as priorities and responsibilities change. They are dynamic in nature.
b. Understanding Critical Success Factor
These are measures that focus on how the job is to be accomplished and include skills, knowledge and/ or behavior that improve job effectiveness.
c. Drawing Development Plan
· Equips the employee with skill sets to achieve KRAs, aims to fill gap if any, and enables
the development of employees.
· Development plan is drawn based on the following
· The KRAs of the employee for the year under review.
· The planned KRAs for the year to come.
· Barriers to succcessful performance that have been identified.
· Gaps if any, identified in the Critical Success Factor.
· Any other developmental need expressed by the employee during the
performance review discussions
Development plan has two parts
1. Identifying Training needs: This can include in- house training as well as external courses. The appraiser should encourage and support the employee to understand the new skills, competencies and experience he/ she may need for superior performance.
2. Preparing a Personal Action Plan(PAP): In this section, the employee chalks out a list of actions he shall undertake for performance enhancement and self improvement.
2. Coaching
Extensive training is given to the appraiser’s to be a good coach and how to do it on an ongoing basis. Appraisers are trained to
· Analyze the reasons why unsatisfactory performance is occurring
· To help the employee to identify opportunities and strengths.
· Prepare action plan including activities, time allocations and support required to enhance performance and make an impact.
· To make appraisers to demonstrate genuineness or sincere interest in helping the employee, while at the same time, empowering him/ her to solve job related problems and challenges.
3. Performance Review
In the review of performance of the employees regarding his/ her KRAs and Critical Success Factor, HR’s role is to ensure consistency in the approach across the organizations and constantly remind the appraiser about the rating errors like halo effect, leniency or harshness errors or personal biases.
4. Overall Performance Evaluation
Performance Evaluation is the outcome of a dialogue process where the Appraisee presents his contributions as against the agreed targets and also detailed agreement on each of the critical success factor is arrived at between the appraisers and the appraise.
5. Performance Reward And Recognition
The outcome of performance appraisal is linked to performance linked pay, Development opportunities, Challenging assignments in various Task forces in the company.
PERFORMANCE MANAGEMENT SYSTEM(PMS) AND ORGANISATIONAL STRATEGY
Strategy is the direction and scope of an organization over long term, matching its resources to its changing environment and in particular its markets, customers or clients, so as to meet stakeholders expectations
Strategic Human Resource Management is a competency based approach for management.
We can relate strategic human resource management as a ‘ reactive’ management field, where human resource management is a tool with which to implement strategy, to a more proactive function in which HR activities can actually create and shape the business strategy of HR.
It focuses on developing HR for sustainable competitive advantage.
Strategic human resource management requires formulation of HR objectives, strategies and policies. These enables the provision of the skills and abilities needed to meet the requirements of an organization’s overall objectives. In other words, they provide the framework, which ensures that an organization’s people needs are met.
PMS is one of the most important HR strategy factors .HR strategy factors are largely encompass six areas like: recruitment and selection, career development, performance appraisal, training and development, compensation designing and human resource planning.
Career development and performance appraisal have direct linkage with PMS. While career development considers career mapping, succession planning and management development, integrating career development with performance appraisal designs appropriate tools and aligns such appraisal with training needs, promotion, transfer and relocation.
PMS involves thinking through various facets of performance, identifying critical dimensions of performance, planning, reviewing and developing and enhancing performance and related competencies.
Various dimensions of performance:
· Result and Output dimension
· Input dimension;
· Time dimensions;
· Focus dimension;
· Quality dimensions; and
· Cost dimension.
Performance is what is expected to be delivered by an individual or a set of individuals within a time frame. What is expected to be delivered could be stated in terms of results or effort, tasks and quality, with specification of conditions under which it is to be delivered.
Results and Output
The most acceptable and visible as well as measurable dimension of performance is result or the output. It describes the consequence of inputs in a summary form or a final or semi-final product form or service form. It describes the standard. It is easily measurable.
Input Dimension
The input dimension deals with the activities or tasks to be accomplished by the individual. The nature of activities to be undertaken by the individual, the time frame, the quality of inputs to be given, etc. constitute the input dimension.
Performance can be managed better if the nature of inputs required to be put in can be envisaged without mistake, planned properly and implemented.
It is here that the performance equation comes into picture. Performance equation says that any individual's performance is a function of three sets of factors: ability or competence to perform various tasks that lead to performance, motivation to carry on each of these tasks or work effort to carry out the tasks and the organizational support one gets to carry out these tasks. If any one of these is less the performance is bound to be poor.
In this equation performance is output and work effort is the input and the ability and organisational support are the intervening variables. They also can be considered as the input variables. If the inputs {ability, work effort or motivation and organisational support is inadequate the performance is also likely to be inadequate.
Time Dimension
Another dimension of performance is time. Performance can be defined for a task, for a day, for a week, for a month, year or for life. The time period for performance is important. Time for information technology organizations is limited to a quarter or a three-month period. They may also be defined by tasks or project and not time. Time may become the target.
Normally, individual performance is judged in relation to a role and across a short period. We normally talk about how well an individual has done in a given role across a period of two or three years. While organizations are interested in this performance, they are more concerned with the individual's performance in a financial year or parts of a year. Thus, in the context of organization, performance management is time bound as well as role specific.
Getting the individual to give his/her best in a given role and during a given period of time is a performance management issue.
Performance of an individual in organizational setting may therefore be defined as the output delivered by an individual in relation to a given role during a particular period of time under the set of circumstances operating at that point of time.
Performance management attempts to ensure using various interventions so that the individual delivers maximum output under the circumstances given to him. The output may include changing the circumstances or turning every circumstance to one's own advantage in order to deliver maximum output. Maximum output is a relative term. What is maximum is defined or determined by the following considerations:
1. Previous performance of the individual for a similar task and under similar circumstances.
2. Performance of any other comparable individual or a standard available at that time including the maximum performance of another individual with whom competition is being set.
3. Estimated performance of the individual specified in advance taking into accounts the capabilities and capacity limitation of the individual and the constraints imposed by the situation.
Thus, in order to manage performance one has to have an idea of the expected level of performance, under what circumstances, the kind of support needed, the previous performance level of the individual or similar individuals under similar circumstances, etc.
Focus Dimension
Performance also has a focus dimension. The focus can be on anything. For example, in defining the performance of a sales executive, the focus of performance can be on market share, profits, or new areas covered, or some of these or most of these.
The focus of performance can be on many other dimensions. It could be on quality or on cost or financial dimensions.
Input-Output Relationships
An important issue to be understood in performance management is the input-output relationship. Let us take an example. Assume a student has done all that he decided to do. He attended all classes,put in all the extra work required, listened attentively in class, clarified all his doubts, solved all previous papers and in addition done some extra things. At the end he got only 85 per cent marks instead of the targeted 95 per cent. How do we rate his performance?
You may give one of the following:
1. Average or OK.
2. Excellent as he had done more than what he originally planned to do.
3. Not good as he got a far lower percentage than what he aimed for.
If a person contracted to give certain inputs with the assumption the inputs will lead to the targeted outcome or result and he gives more than the required input, how can we call his performance anything less than good or excellent? If he did not achieve the desired result it maybe because of various factors. His competencies may be limited or he may not be examination wise. His memory may be weak or his home environment may not be conducive and this was perhaps affecting his results in spite of his hard work. The examination papers that year may also have been tough. What if 85 per cent happens to be in that year's top 10 and he still gets admission into a good college? If in reality 85 per cent is poor and he does not get admission, what good does it do to him if he is rated excellent in performance input but the result and its consequences are disastrous?
There are no easy answers to all these questions and that is what makes performance management a complex affair. Such a complex affair has been treated lightly by experts, CEOs, managers and HR professionals.
Treating such a complex issue in a simple manner and reducing performance management to a simple form-filling exercise is the biggest mistake the managers have made in the past.
Role of Appraisals in Performance Management
Performance management is a continuous process. Appraisals are periodic activities. Management is a dynamic process while appraisals are static. Appraisals are a part of performance management. If the management involves improvements, the moment you assess where we stand there is an appraisal taking place. Therefore without some form of appraisal management becomes difficult. Appraisals do not mean reducing the performance of individuals and dyads or teams to a five-point scale or a number. It is this reduction of annual performance into a number and equating one number with another that has created havoc in managing performance or in appraisals. Numbers generated from the appraisal process are not comparable across functions, levels, departments and organisations.... This is because the scales are not calibrated and equated. Some use liberal scales, some use conservative scales, and some use no scales but merely feelings. It is this lack of calibration and treating the incomparable as comparable that has created havoc.
Performance management with performance appraisal should lead to increased performance. However, in most organisations, performance appraisals have lead to decreased performance. This happens particularly when appraisals are linked to rewards and when fewer people are rewarded than those expecting them. Those who are not rewarded get demotivated. If those who expect to be rewarded exceeds the number of those who actually get rewards, the net outcome of performance appraisal may be negative. If people continue to perform in spite of appraisals and they do not have a positive attitude to appraisals, then the organisation is spending more psychological energy,
The effort should be to make the performance management process more effective and productive using appraisal systems. Appraisal systems help managers manage their performance. They should be seen by line managers as aids for performance management. Managers should not be overwhelmed with appraisals and appraisal outcomes and ignore the most important aspects of performance management—performance improvements and competency building. This happens when the concerns get focused on appraisals rather than improvements or on ratings and rewards rather than performance enhancement and development. Managers need to learn to enjoy the performance management process itself as it occurs round the year and is not blocked by appraisals as they occur once in a while.
Performance management systems with an appraisal component built into them should mean improved performance, more motivated people, and more competent people.
BENEFITS;
Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results.
The benefits may include:
· PM focuses on results, rather than behaviors and activitiesA common misconception among supervisors is that behaviors and activities are the same as results. Thus, an employee may appear extremely busy, but not be contributing at all toward the goals of the organization. An example is the employee who manually reviews completion of every form and procedure, rather than supporting automation of the review. The supervisor may conclude the employee is very committed to the organization and works very hard, thus, deserving a very high performance rating.
· Focus on objectives: Objectives are the targets which an organization set for its employees.PMS helps to percolate the organization objectives to employees traslating organizational objectives to individual targets.
· Develops systems for ongoing review of objectives:Through the process of periodic performance review, PMS helps to keep a track on achievement of objectives.
· Develops personal improvement plans: Sinse PMS helps in individual performance monitoring, it ensures developing of personal improvement plans for the employees.
· PMS alligns with training and development: Sinse focus of PMS is to manage and develop employee performances, to sustain competitiive advantage of an organization through proper alignment, PMS helps in identifying training and development needs.
· Produces meaningful measurementsThese measurements have a wide variety of useful applications. They are useful in benchmarking, or setting standards for comparison with best practices in other organizations. They provide consistent basis for comparison during internal change efforts. They indicate results during improvement efforts, such as employee training, management development, quality programs, etc. They help ensure equitable and fair treatment to employees based on performance.
· Develops competence based organizational capability: Competence based organizational capability helps in appropriate organizational change, keeping pace with competition.
· Ensures formal appraisal with feed back: By introducing a formal appraisal appraisal system,PMS helps in giving in giving performance feedback to employees.
· Helps in pay review: PMS helps in objective designing of compensation package
for employees.
Currently, there is a great interest in performance measurement, with many companies attempting to implement the balanced scorecard. This paper reviews the different performance measurement system design processes published in the literature and creates a framework for comparing alternative approaches. The paper then proceeds to review the literature on performance measurement system implementations and concludes that the performance measurement literature is at the stage of identifying difficulties and pitfalls to be avoided based on practitioner experience with few published research studies.
PERFORMANCE MANAGEMENT SYSTEM@ TITAN
Titan strongly believes that the success of PMS shall depend upon how the whole HRM processes are in place in the organization. Titan has nurtured a culture, where every employee targets right first time and every time as a way of life .Our recruitment process itself acts as an important support for the success of PMS in Titan.
We have made a sincere effort to make appraisal process proactive and beneficial by considering the common pitfalls of the traditional appraisals. In this PMS we have avoided the stand alone annual review, to generic appraisal, and one sided appraisals in favour of developing a PERFORMANCE MANAGEMENT PROCESS, designing specific and relevant appraisals by promoting a two way “dialogue”
S.
PERFORMANCE MANAGEMENT SYSTEM@ NSEIL
Performance culture is intended to be promoted through periodic planning, review identification of development gaps and development needs, periodically. Team excellence is to be promoted by extending performance planning and review from individuals to teams .Employees competencies are to be developed through development planning, periodic feedback, training and other development interventions.360 Degree Feedback is intended to supplement these development efforts. Sense of belongingness and ownership are expected to be promoted through providing appropriate context for performance and helping individuals and teams see the linkages between their performance and organizational performance.
Chandra Bhattacharya
PERFORMANCE MANAGEMENT SYSTEM@ Infosys
Infosys believes in meritocracy and has built a high performance work culture among its work force. In order to align performance of employee with the business goals of Infosys, regular system driven appraisals are conducted
Currently, Infosys has 3 tracks for performance management.
Track 1: The first track deals with performance reviews based on tasks and feedback on personality/technical competencies.\
Track 2: The second track is the senior management appraisal. Here, the employee fills up a self- appraisal form and carries it forward to panel discussion.
Track 3: 360 degree Appraisal constitutes the third track. This has been happening for over the last 3 years, for all the departments and practice units.
PERFORMANCE MANAGEMENT SYSTEM IN RELIANCE MONEY
PERFORMANCE IN RELIANCE MONEY IS JUDGED ON THE FOLLOWING BASIS:
Entrepreneurial Mindset
o Drives exponential growth to achieve milestones
o Has a vision for tomorrow and is impatient for growth
o Walks the talk
o Drives to improve market and profitability
o Maintains positive distance competition
o Balances competing interests
o Identifies opportunities and has a bias for action
FACTS AND FINDINGS
· When employees were asked about their KRA in their respective field, many of them were not having a clear picture about it.
· In some cases, it has been observed that there is a communication gap or mis-communication between the superior and subordinate which interrupt the flow of work, resulting delay in the project.
· Need assessment for training is not given sufficient priority, due to this reason, the trainees at their initial stages suffer from lack of proper knowledge about the product they are selling to the customer.
· It has been found that the employees suffer from a lot of mental and physical stress due to the heavy work load, which adversely affect the performance.
· Employees do not have enough involvement in decisions that affect their work.
Employees feel dejected and unimportant when they cannot participate in management
decisions which results in dissatisfaction, conflicts and stress among the employees.
It has been found that the employees are not satisfied with the present appraisal system.
There is huge gap between the goals set and the return on goals set to the employees.
Another major reason for dissatisfaction in employees is biased behavior of the employer
which causes frustrations and disappointment to the employees.
LIMITATIONS OF THE STUDY
1). In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.
.
2). The research is confined to a certain branches of NEW MUMBAI (MAHARASHTRA) and does not necessarily shows a pattern applicable to all branches of Country
3). Some respondents were reluctant to divulge information which can affect the validity of all responses.
RECOMMENDATIONS
On the basis of the findings done recommendations are made on the following-
· Areas of responsibility in which an employee is expected to produce results should be well communicated to the employees, this will give them a clear picture of what they are supposed to do to achieve the target.
· For organizations to function successfully, effective communication is a basic requisite.Interpersonal, intergroup and intra communications are essential for information to flow, ideas to generate and feelings to be exchanged. There should be proper channels of communication ( vertical/ horizontal for the smooth working of the organization.
· Employees should have the comfort zone of asking any training needs they require in a particular field for their performance enhancements.
· Work pressure can be minimized with a lot of modern methods like compressed work week, Flexi time, Telecommuting etc.
· Empowerment of employees also help in prompt decisions and its implementation.
It will also make them more confident and responsible in their jobs.
The greatest benefit of employee participation in management is that the employee identifies himself or herself with the work and this leads to an improved performance.
· With regard to the interest of the employees in their work , job rotation can be introduced which bring enthusiasm and new ideas in the mind of employees which enable them to perform better.
The gap between the goal set and the return on goal set should be minimized. The company
should come up with its new and more attractive incentive schemes as opportunities to the .
employees, so that they perform to the best of their ability.
The selection of proper appraisal method is also very essential like – 360degree, critical incident method & grade method, Management By Objectives.
· Biases and corporate politics are the common yet serious problems that the employees face and feel frustrated about. The appraiser while rating can make some errors like halo effect, error of leniency, central tendency etc while assessing the rate.
These errors should be avoided and all the employees should be treated equally.
QUESTIONNAIRE
Do you know what is expected of you at work?
A) YES B) NO
How long you have been with this company?
6 to 12 months
Less than 6 months A) B)
More than 5 years
1-5 years
C) D)
Which of the following best describes the department you work in
A) Customer service
B) Finance/Accounting
C) MIS
D) Sales/ Marketing
E) Corporate Marketing
F) Human Resource
G) Other
4. Overall how satisfied are you with the position at your company?
A) Very Satisfied
B) Satisfied
C) Dissatisfied
D) N/A
Is induction Training given adequate importance in your organization?
A) YES B) NO
6. Is the training periodically conducted, evaluated and improved?
A) YES B) NO
7. When was the last time you underwent any training programme?
A) 1-3 months
B) 3-6months
C) 6-12months
D) More than 1 year
E) I don’t remember r
8. The company clearly communicates its goals and strategies to you?
A) YES B) NO
9. Are you informed about the changes within the organization?
A) YES B) NO
10. Are Conflicts handled appropriately through proper communication channel?
A) YES B) NO
11. In the last year, have you had opportunities at work to learn and grow?
A) YES B) NO
12. Does your department encourage teamwork?
A) YES B) NO
13. Overall how satisfied are you with the spirit of team work with your company?
F) Very Satisfied
G) Satisfied
H) Dissatisfied
I) N/A
14. At work, do your opinions seem to count?
A) Always B) Frequently C) Occasionally D) Never
15. Are your associates (fellow employees) committed to doing quality work?
a. YES B) NO C) Don’t know
16. In the last six months, has someone at work talked to you about your progress?
A) YES B) NO
17. In the last year, have you had opportunities at work to learn and grow?
A) YES B) NO
18. Does your department encourage teamwork?
A) YES B) NO
19. Overall how satisfied are you with the spirit of team work with your company?
J) Very Satisfied
K) Satisfied
L) Dissatisfied
M) N/A
20. Do you have support and authority to make decision necessary for accomplishing the assigned task?
A) YES B) NO
21. What are the ,most stressful aspects of your job?
22 How would you rate the level of your job stress?
A) Mild
B) Moderate
C) Severe
D) Extreme
22. Do you think the present performance appraisal system needs to be changed?
A) YES B) NO
WEB RESOURCES
www.questia.com
www.workforce.com
www.humanresource.com
www.citehr.com
www.citehr.com
1: RATIONALE FOR THE STUDY
2: OBJECTIVE OF THE STUDY
3: SCOPE OF THE STUDY
4: CREVIEW OF LITERATURE
5: CONCEPT OF PMS
PROCESS OF PMS
BENEFITS OF PMS
6: PMS FOLLOWED BY DIFFERENT COMPANIES
7: FINDINGS
9: LIMITATION
10: ANNEXURES AND QUESTIONNAIRE
RATIONALE OF THE STUDY
Performance Management System is one of the major functions of Human Resource Management. HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness. It is the people who possess skills, abilities and aptitudes that offer competitive advantage to a firm. It is only human resource that is capable of deciding, implementing and controlling activities. Performance management involves enabling people to perform their work to the best of their ability, meeting and perhaps exceeding targets and standards. Performance management can be coordinated by an interrelated framework between manager and employee. Key areas of the framework to be agreed are objectives, human resource management, standards and performance indicators, and means of reward.
Performance management system is needed for the following purposes:
.Improved organizational profitability
.The bottom line of an organization improves significantly by increasing the productivity and quality of work of each employee.
.Increased employee responsibility
.Performance Management system is also needed for communicating realistic but challenging job expectations and making employees accountable for their decisions and actions result in noticeable improvements in employee tardiness, absences, and commitment to organizational goals.
·Equitable treatment of employees
.All employees are treated fairly by implementing standardized procedures that promote consistency throughout an organization.
·Enhanced quality of work life
.Employees experience greater job satisfaction because they become more successful. In addition, conflict among employees is kept to a minimum.
OBJECTIVE OF THE STUDY
· 1.To identify the performance management system in the company
· 2 To identify the performance of the employees under the current system
· 3.To identify the reasons behind high/low performances
· 4. To identify training needs
· 5. To review the trend of performance management system
· 6. To suggest measures for improvements
· 7. To develop the potential of the staff for further advancements
SCOPE OF THE STUDY
This study describes some of the strengths in current system in the company and some of the areas that are most in need of attention. Many of these themes have been visited before, but this report brings together elements of performance management to show a direction to improve the areas and how this system can provide the means for effective employee services to strengthen themselves.
The study can help improvising the Role of the Finance Officer, making the finance officers more involved with the planning aspects of government to help set goals, determine priorities, and develop accountability and tracking mechanisms to make sure that capital projects deliver on promised results--but this concept applies to many things other than capital projects, including new services, initiatives, or programs.
Performance management study also goes beyond just the finance office--managers and employees throughout the organization can benefit from establishing clear goals and setting up performance measures to track and focus on results.
This data can be explorated to take in the trend of employees’ performance. It can also help the company to make a comparison of performance in future.
TheManaging Performance briefing sheds light on the difference effective performance management makes to service quality and is designed to help those who have an interest in how different menthods are used to improve their performance management. Officers and councillors, and those working with partner bodies at operational and strategic levels, will find this briefing a useful starting point.
The study provide information on the features of effective performance management systems and how systems can be used to make performance management a reality in public sector organisations.
Students may also refer to this data as a secondary source of data and take the help of the study to do something related to the subject.
It is a rapidly changing and evolving system. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.
REVIEW OF LITERATURE
Performance management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a philosophy which values and encourages employee development through a style of management which provides frequent feedback and fosters teamwork. It emphasizes communication and focuses on adding value to the organization by promoting improved job performance and encouraging skill development. Performance Management involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee
Who Manages Performance?
The answer is obvious. The performer or the candidate whose performance is being planned, analyzed, assessed, developed, etc. It is he who manages his performance. It is a mistaken notion to think that the primary responsibility for managing the performance of a person lies with his boss.
The boss is an important instrument in managing performance. He has the responsibility to ensure that it is defined, planned, analyzed, measured, reviewed and developed. He is a partner in this. It is the performer who has to manage his performance.
Whose Performance is to be Planned
Every individual manager understands the reality and circumstances within which he is expected to perform. Individual performance is subject to fewer uncertainties than that of an organization. Organizational uncertainties are a sum of the uncertainties faced by each employee and those arising from the external environment. Not all managers are required to deal with the external environment. Most individuals can plan their performance with some understanding of internal uncertainties. Unfortunately, managers seem to magnify the uncertainties within the organization and feel each one of them will affect their performance. Hence, they argue that performance cannot be planned. This is simply a good escape mechanism.
Organizational plans can at best be goals to strive for. Individual plans should be the actions expected to be undertaken by each manager with the hope of achieving the organizational goals. Organizational goals, corporate plans, mission statements, annual operating plans, budget statements, and performance guidelines issued from the CEO's office from time to time provide the perspective and framework required to determine the departmental goals and, thus, provide the context for an individual performance plan. However, individual performance plans do not have to wait every year for the creation of such a context as only marginal changes are expected from year to year with some exceptions.
It is, of course ideal if these guidelines are available before the individual plans his performance. However in the absence of such guidelines, groups of managers can sit together and set new goals for their department in the context of the previous years' performance and their knowledge of the current situation. They first need to raise a few questions:
How did we perform last year?
What influenced our performance?
How can we improve?
What new challenges can we undertake?
How is the situation going to be different this year?
How do we intend to improve our quality and quality of outputs?
What new process, technology and systems do we want to introduce this year?
Organizations should set their goals and plan their strategies. Departments and other sub-systems should delineate their roles and plan their contributions. Individuals should plan their performance; ideally, the sequence should be from organization to department to individual. This helps in several ways. However, one should not wait for the other indefinitely. Lack of information on organizational plans and strategies should not prevent departments and other sub-units from planning improvements and individuals from planning their performance.
It is often argued that the organizational plans should follow individual plans. This goes against reality in Indian organizations. First of all it does not make sense to consolidate individual plans to make departmental goals and then determine organisational goals. It is difficult to do so. Second, participative management cannot be stretched to such an extent.
Planning Individual Performance through Performance Appraisal
Annual performance appraisal exercises provide good opportunities for performance planning. These provide many ways in which individual performance can be planned, some of which include:
· Task analysis and/or activity analysis;
· Key performance areas (KPAs);
· Key Result Areas (KRAs);
· Task and target identification;
· Activity plans/action plans; and
· Goal-setting exercises.
PMS PROCES
PMS has 4 steps:
1. Performance planning
2. Coaching
3. Performance Review Meetings
4. Rewards and Recognition
The appraisal form serves as a formal written document to assure a mutual understanding of what is expected and how well those expectations are being met.
1. Performance plan involves
a. Identifying Key Result Area:
Areas of responsibility in which an employee is expected to produce results.
· Give direction to a person’s job and help to focus on important job areas.
· Provide a basis for appraisal, counseling and feedback.
· Increasing mutual job understanding with superiors.
· These KRAs may change as priorities and responsibilities change. They are dynamic in nature.
b. Understanding Critical Success Factor
These are measures that focus on how the job is to be accomplished and include skills, knowledge and/ or behavior that improve job effectiveness.
c. Drawing Development Plan
· Equips the employee with skill sets to achieve KRAs, aims to fill gap if any, and enables
the development of employees.
· Development plan is drawn based on the following
· The KRAs of the employee for the year under review.
· The planned KRAs for the year to come.
· Barriers to succcessful performance that have been identified.
· Gaps if any, identified in the Critical Success Factor.
· Any other developmental need expressed by the employee during the
performance review discussions
Development plan has two parts
1. Identifying Training needs: This can include in- house training as well as external courses. The appraiser should encourage and support the employee to understand the new skills, competencies and experience he/ she may need for superior performance.
2. Preparing a Personal Action Plan(PAP): In this section, the employee chalks out a list of actions he shall undertake for performance enhancement and self improvement.
2. Coaching
Extensive training is given to the appraiser’s to be a good coach and how to do it on an ongoing basis. Appraisers are trained to
· Analyze the reasons why unsatisfactory performance is occurring
· To help the employee to identify opportunities and strengths.
· Prepare action plan including activities, time allocations and support required to enhance performance and make an impact.
· To make appraisers to demonstrate genuineness or sincere interest in helping the employee, while at the same time, empowering him/ her to solve job related problems and challenges.
3. Performance Review
In the review of performance of the employees regarding his/ her KRAs and Critical Success Factor, HR’s role is to ensure consistency in the approach across the organizations and constantly remind the appraiser about the rating errors like halo effect, leniency or harshness errors or personal biases.
4. Overall Performance Evaluation
Performance Evaluation is the outcome of a dialogue process where the Appraisee presents his contributions as against the agreed targets and also detailed agreement on each of the critical success factor is arrived at between the appraisers and the appraise.
5. Performance Reward And Recognition
The outcome of performance appraisal is linked to performance linked pay, Development opportunities, Challenging assignments in various Task forces in the company.
PERFORMANCE MANAGEMENT SYSTEM(PMS) AND ORGANISATIONAL STRATEGY
Strategy is the direction and scope of an organization over long term, matching its resources to its changing environment and in particular its markets, customers or clients, so as to meet stakeholders expectations
Strategic Human Resource Management is a competency based approach for management.
We can relate strategic human resource management as a ‘ reactive’ management field, where human resource management is a tool with which to implement strategy, to a more proactive function in which HR activities can actually create and shape the business strategy of HR.
It focuses on developing HR for sustainable competitive advantage.
Strategic human resource management requires formulation of HR objectives, strategies and policies. These enables the provision of the skills and abilities needed to meet the requirements of an organization’s overall objectives. In other words, they provide the framework, which ensures that an organization’s people needs are met.
PMS is one of the most important HR strategy factors .HR strategy factors are largely encompass six areas like: recruitment and selection, career development, performance appraisal, training and development, compensation designing and human resource planning.
Career development and performance appraisal have direct linkage with PMS. While career development considers career mapping, succession planning and management development, integrating career development with performance appraisal designs appropriate tools and aligns such appraisal with training needs, promotion, transfer and relocation.
PMS involves thinking through various facets of performance, identifying critical dimensions of performance, planning, reviewing and developing and enhancing performance and related competencies.
Various dimensions of performance:
· Result and Output dimension
· Input dimension;
· Time dimensions;
· Focus dimension;
· Quality dimensions; and
· Cost dimension.
Performance is what is expected to be delivered by an individual or a set of individuals within a time frame. What is expected to be delivered could be stated in terms of results or effort, tasks and quality, with specification of conditions under which it is to be delivered.
Results and Output
The most acceptable and visible as well as measurable dimension of performance is result or the output. It describes the consequence of inputs in a summary form or a final or semi-final product form or service form. It describes the standard. It is easily measurable.
Input Dimension
The input dimension deals with the activities or tasks to be accomplished by the individual. The nature of activities to be undertaken by the individual, the time frame, the quality of inputs to be given, etc. constitute the input dimension.
Performance can be managed better if the nature of inputs required to be put in can be envisaged without mistake, planned properly and implemented.
It is here that the performance equation comes into picture. Performance equation says that any individual's performance is a function of three sets of factors: ability or competence to perform various tasks that lead to performance, motivation to carry on each of these tasks or work effort to carry out the tasks and the organizational support one gets to carry out these tasks. If any one of these is less the performance is bound to be poor.
In this equation performance is output and work effort is the input and the ability and organisational support are the intervening variables. They also can be considered as the input variables. If the inputs {ability, work effort or motivation and organisational support is inadequate the performance is also likely to be inadequate.
Time Dimension
Another dimension of performance is time. Performance can be defined for a task, for a day, for a week, for a month, year or for life. The time period for performance is important. Time for information technology organizations is limited to a quarter or a three-month period. They may also be defined by tasks or project and not time. Time may become the target.
Normally, individual performance is judged in relation to a role and across a short period. We normally talk about how well an individual has done in a given role across a period of two or three years. While organizations are interested in this performance, they are more concerned with the individual's performance in a financial year or parts of a year. Thus, in the context of organization, performance management is time bound as well as role specific.
Getting the individual to give his/her best in a given role and during a given period of time is a performance management issue.
Performance of an individual in organizational setting may therefore be defined as the output delivered by an individual in relation to a given role during a particular period of time under the set of circumstances operating at that point of time.
Performance management attempts to ensure using various interventions so that the individual delivers maximum output under the circumstances given to him. The output may include changing the circumstances or turning every circumstance to one's own advantage in order to deliver maximum output. Maximum output is a relative term. What is maximum is defined or determined by the following considerations:
1. Previous performance of the individual for a similar task and under similar circumstances.
2. Performance of any other comparable individual or a standard available at that time including the maximum performance of another individual with whom competition is being set.
3. Estimated performance of the individual specified in advance taking into accounts the capabilities and capacity limitation of the individual and the constraints imposed by the situation.
Thus, in order to manage performance one has to have an idea of the expected level of performance, under what circumstances, the kind of support needed, the previous performance level of the individual or similar individuals under similar circumstances, etc.
Focus Dimension
Performance also has a focus dimension. The focus can be on anything. For example, in defining the performance of a sales executive, the focus of performance can be on market share, profits, or new areas covered, or some of these or most of these.
The focus of performance can be on many other dimensions. It could be on quality or on cost or financial dimensions.
Input-Output Relationships
An important issue to be understood in performance management is the input-output relationship. Let us take an example. Assume a student has done all that he decided to do. He attended all classes,put in all the extra work required, listened attentively in class, clarified all his doubts, solved all previous papers and in addition done some extra things. At the end he got only 85 per cent marks instead of the targeted 95 per cent. How do we rate his performance?
You may give one of the following:
1. Average or OK.
2. Excellent as he had done more than what he originally planned to do.
3. Not good as he got a far lower percentage than what he aimed for.
If a person contracted to give certain inputs with the assumption the inputs will lead to the targeted outcome or result and he gives more than the required input, how can we call his performance anything less than good or excellent? If he did not achieve the desired result it maybe because of various factors. His competencies may be limited or he may not be examination wise. His memory may be weak or his home environment may not be conducive and this was perhaps affecting his results in spite of his hard work. The examination papers that year may also have been tough. What if 85 per cent happens to be in that year's top 10 and he still gets admission into a good college? If in reality 85 per cent is poor and he does not get admission, what good does it do to him if he is rated excellent in performance input but the result and its consequences are disastrous?
There are no easy answers to all these questions and that is what makes performance management a complex affair. Such a complex affair has been treated lightly by experts, CEOs, managers and HR professionals.
Treating such a complex issue in a simple manner and reducing performance management to a simple form-filling exercise is the biggest mistake the managers have made in the past.
Role of Appraisals in Performance Management
Performance management is a continuous process. Appraisals are periodic activities. Management is a dynamic process while appraisals are static. Appraisals are a part of performance management. If the management involves improvements, the moment you assess where we stand there is an appraisal taking place. Therefore without some form of appraisal management becomes difficult. Appraisals do not mean reducing the performance of individuals and dyads or teams to a five-point scale or a number. It is this reduction of annual performance into a number and equating one number with another that has created havoc in managing performance or in appraisals. Numbers generated from the appraisal process are not comparable across functions, levels, departments and organisations.... This is because the scales are not calibrated and equated. Some use liberal scales, some use conservative scales, and some use no scales but merely feelings. It is this lack of calibration and treating the incomparable as comparable that has created havoc.
Performance management with performance appraisal should lead to increased performance. However, in most organisations, performance appraisals have lead to decreased performance. This happens particularly when appraisals are linked to rewards and when fewer people are rewarded than those expecting them. Those who are not rewarded get demotivated. If those who expect to be rewarded exceeds the number of those who actually get rewards, the net outcome of performance appraisal may be negative. If people continue to perform in spite of appraisals and they do not have a positive attitude to appraisals, then the organisation is spending more psychological energy,
The effort should be to make the performance management process more effective and productive using appraisal systems. Appraisal systems help managers manage their performance. They should be seen by line managers as aids for performance management. Managers should not be overwhelmed with appraisals and appraisal outcomes and ignore the most important aspects of performance management—performance improvements and competency building. This happens when the concerns get focused on appraisals rather than improvements or on ratings and rewards rather than performance enhancement and development. Managers need to learn to enjoy the performance management process itself as it occurs round the year and is not blocked by appraisals as they occur once in a while.
Performance management systems with an appraisal component built into them should mean improved performance, more motivated people, and more competent people.
BENEFITS;
Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results.
The benefits may include:
· PM focuses on results, rather than behaviors and activitiesA common misconception among supervisors is that behaviors and activities are the same as results. Thus, an employee may appear extremely busy, but not be contributing at all toward the goals of the organization. An example is the employee who manually reviews completion of every form and procedure, rather than supporting automation of the review. The supervisor may conclude the employee is very committed to the organization and works very hard, thus, deserving a very high performance rating.
· Focus on objectives: Objectives are the targets which an organization set for its employees.PMS helps to percolate the organization objectives to employees traslating organizational objectives to individual targets.
· Develops systems for ongoing review of objectives:Through the process of periodic performance review, PMS helps to keep a track on achievement of objectives.
· Develops personal improvement plans: Sinse PMS helps in individual performance monitoring, it ensures developing of personal improvement plans for the employees.
· PMS alligns with training and development: Sinse focus of PMS is to manage and develop employee performances, to sustain competitiive advantage of an organization through proper alignment, PMS helps in identifying training and development needs.
· Produces meaningful measurementsThese measurements have a wide variety of useful applications. They are useful in benchmarking, or setting standards for comparison with best practices in other organizations. They provide consistent basis for comparison during internal change efforts. They indicate results during improvement efforts, such as employee training, management development, quality programs, etc. They help ensure equitable and fair treatment to employees based on performance.
· Develops competence based organizational capability: Competence based organizational capability helps in appropriate organizational change, keeping pace with competition.
· Ensures formal appraisal with feed back: By introducing a formal appraisal appraisal system,PMS helps in giving in giving performance feedback to employees.
· Helps in pay review: PMS helps in objective designing of compensation package
for employees.
Currently, there is a great interest in performance measurement, with many companies attempting to implement the balanced scorecard. This paper reviews the different performance measurement system design processes published in the literature and creates a framework for comparing alternative approaches. The paper then proceeds to review the literature on performance measurement system implementations and concludes that the performance measurement literature is at the stage of identifying difficulties and pitfalls to be avoided based on practitioner experience with few published research studies.
PERFORMANCE MANAGEMENT SYSTEM@ TITAN
Titan strongly believes that the success of PMS shall depend upon how the whole HRM processes are in place in the organization. Titan has nurtured a culture, where every employee targets right first time and every time as a way of life .Our recruitment process itself acts as an important support for the success of PMS in Titan.
We have made a sincere effort to make appraisal process proactive and beneficial by considering the common pitfalls of the traditional appraisals. In this PMS we have avoided the stand alone annual review, to generic appraisal, and one sided appraisals in favour of developing a PERFORMANCE MANAGEMENT PROCESS, designing specific and relevant appraisals by promoting a two way “dialogue”
S.
PERFORMANCE MANAGEMENT SYSTEM@ NSEIL
Performance culture is intended to be promoted through periodic planning, review identification of development gaps and development needs, periodically. Team excellence is to be promoted by extending performance planning and review from individuals to teams .Employees competencies are to be developed through development planning, periodic feedback, training and other development interventions.360 Degree Feedback is intended to supplement these development efforts. Sense of belongingness and ownership are expected to be promoted through providing appropriate context for performance and helping individuals and teams see the linkages between their performance and organizational performance.
Chandra Bhattacharya
PERFORMANCE MANAGEMENT SYSTEM@ Infosys
Infosys believes in meritocracy and has built a high performance work culture among its work force. In order to align performance of employee with the business goals of Infosys, regular system driven appraisals are conducted
Currently, Infosys has 3 tracks for performance management.
Track 1: The first track deals with performance reviews based on tasks and feedback on personality/technical competencies.\
Track 2: The second track is the senior management appraisal. Here, the employee fills up a self- appraisal form and carries it forward to panel discussion.
Track 3: 360 degree Appraisal constitutes the third track. This has been happening for over the last 3 years, for all the departments and practice units.
PERFORMANCE MANAGEMENT SYSTEM IN RELIANCE MONEY
PERFORMANCE IN RELIANCE MONEY IS JUDGED ON THE FOLLOWING BASIS:
Entrepreneurial Mindset
o Drives exponential growth to achieve milestones
o Has a vision for tomorrow and is impatient for growth
o Walks the talk
o Drives to improve market and profitability
o Maintains positive distance competition
o Balances competing interests
o Identifies opportunities and has a bias for action
FACTS AND FINDINGS
· When employees were asked about their KRA in their respective field, many of them were not having a clear picture about it.
· In some cases, it has been observed that there is a communication gap or mis-communication between the superior and subordinate which interrupt the flow of work, resulting delay in the project.
· Need assessment for training is not given sufficient priority, due to this reason, the trainees at their initial stages suffer from lack of proper knowledge about the product they are selling to the customer.
· It has been found that the employees suffer from a lot of mental and physical stress due to the heavy work load, which adversely affect the performance.
· Employees do not have enough involvement in decisions that affect their work.
Employees feel dejected and unimportant when they cannot participate in management
decisions which results in dissatisfaction, conflicts and stress among the employees.
It has been found that the employees are not satisfied with the present appraisal system.
There is huge gap between the goals set and the return on goals set to the employees.
Another major reason for dissatisfaction in employees is biased behavior of the employer
which causes frustrations and disappointment to the employees.
LIMITATIONS OF THE STUDY
1). In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.
.
2). The research is confined to a certain branches of NEW MUMBAI (MAHARASHTRA) and does not necessarily shows a pattern applicable to all branches of Country
3). Some respondents were reluctant to divulge information which can affect the validity of all responses.
RECOMMENDATIONS
On the basis of the findings done recommendations are made on the following-
· Areas of responsibility in which an employee is expected to produce results should be well communicated to the employees, this will give them a clear picture of what they are supposed to do to achieve the target.
· For organizations to function successfully, effective communication is a basic requisite.Interpersonal, intergroup and intra communications are essential for information to flow, ideas to generate and feelings to be exchanged. There should be proper channels of communication ( vertical/ horizontal for the smooth working of the organization.
· Employees should have the comfort zone of asking any training needs they require in a particular field for their performance enhancements.
· Work pressure can be minimized with a lot of modern methods like compressed work week, Flexi time, Telecommuting etc.
· Empowerment of employees also help in prompt decisions and its implementation.
It will also make them more confident and responsible in their jobs.
The greatest benefit of employee participation in management is that the employee identifies himself or herself with the work and this leads to an improved performance.
· With regard to the interest of the employees in their work , job rotation can be introduced which bring enthusiasm and new ideas in the mind of employees which enable them to perform better.
The gap between the goal set and the return on goal set should be minimized. The company
should come up with its new and more attractive incentive schemes as opportunities to the .
employees, so that they perform to the best of their ability.
The selection of proper appraisal method is also very essential like – 360degree, critical incident method & grade method, Management By Objectives.
· Biases and corporate politics are the common yet serious problems that the employees face and feel frustrated about. The appraiser while rating can make some errors like halo effect, error of leniency, central tendency etc while assessing the rate.
These errors should be avoided and all the employees should be treated equally.
QUESTIONNAIRE
Do you know what is expected of you at work?
A) YES B) NO
How long you have been with this company?
6 to 12 months
Less than 6 months A) B)
More than 5 years
1-5 years
C) D)
Which of the following best describes the department you work in
A) Customer service
B) Finance/Accounting
C) MIS
D) Sales/ Marketing
E) Corporate Marketing
F) Human Resource
G) Other
4. Overall how satisfied are you with the position at your company?
A) Very Satisfied
B) Satisfied
C) Dissatisfied
D) N/A
Is induction Training given adequate importance in your organization?
A) YES B) NO
6. Is the training periodically conducted, evaluated and improved?
A) YES B) NO
7. When was the last time you underwent any training programme?
A) 1-3 months
B) 3-6months
C) 6-12months
D) More than 1 year
E) I don’t remember r
8. The company clearly communicates its goals and strategies to you?
A) YES B) NO
9. Are you informed about the changes within the organization?
A) YES B) NO
10. Are Conflicts handled appropriately through proper communication channel?
A) YES B) NO
11. In the last year, have you had opportunities at work to learn and grow?
A) YES B) NO
12. Does your department encourage teamwork?
A) YES B) NO
13. Overall how satisfied are you with the spirit of team work with your company?
F) Very Satisfied
G) Satisfied
H) Dissatisfied
I) N/A
14. At work, do your opinions seem to count?
A) Always B) Frequently C) Occasionally D) Never
15. Are your associates (fellow employees) committed to doing quality work?
a. YES B) NO C) Don’t know
16. In the last six months, has someone at work talked to you about your progress?
A) YES B) NO
17. In the last year, have you had opportunities at work to learn and grow?
A) YES B) NO
18. Does your department encourage teamwork?
A) YES B) NO
19. Overall how satisfied are you with the spirit of team work with your company?
J) Very Satisfied
K) Satisfied
L) Dissatisfied
M) N/A
20. Do you have support and authority to make decision necessary for accomplishing the assigned task?
A) YES B) NO
21. What are the ,most stressful aspects of your job?
22 How would you rate the level of your job stress?
A) Mild
B) Moderate
C) Severe
D) Extreme
22. Do you think the present performance appraisal system needs to be changed?
A) YES B) NO
WEB RESOURCES
www.questia.com
www.workforce.com
www.humanresource.com
www.citehr.com
www.citehr.com
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