Pms in India Final (1)

8/9/2019 Pms in India Final (1)

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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.

Pms in India Final (1)

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