Institute of Management Technology,Dubai

Project

Reliance Industries Ltd

Submitted by:

Kriti Gupta

Srishty Gupta

Ruchita Chauhan

ContentsLITERATURE REVIEW............................................................................................................................5

Performance Management System..........................................................................................................5

Typical outcome of PMS in an organization............................................................................................6

INTRODUCTION.......................................................................................................................................8

About the company..................................................................................................................................8

Reliance vision statement........................................................................................................................9

PERFROMANCE APPRAISAL SYSYTEM AT RELIANCE.................................................................10

Objectives..............................................................................................................................................10

Performance Appraisal activity (Employee Coverage)..........................................................................10

PARTS OF PERFORMANCE APPRAISAL AT RELIANCE.................................................................11

Performance Assessment.......................................................................................................................11

Competency and Value Assessment......................................................................................................12

Personal Development Plan...................................................................................................................13

PERFORMANCE APPRAISAL PROCESS.............................................................................................14

Pre-Appraisal.........................................................................................................................................14

Pre Appraisal Process Steps:.................................................................................................................14

Performance Appraisal Process.............................................................................................................15

Employee Self Appraisal Steps..............................................................................................................16

Part-Appraiser steps...............................................................................................................................16

Supervisors Steps...................................................................................................................................16

Direct Reports Review & Approval process..........................................................................................17

Normalization Steps..............................................................................................................................17

Normalization Instance..........................................................................................................................18

Performance Review Discussion............................................................................................................19

OUTPUTS OF PERFORMANCE APPRAISAL SYSTEM....................................................................................20

Training and development.....................................................................................................................20

Salary Increments..................................................................................................................................20

LIMITATIONS IN RELIANCE FRAMEWORK..................................................................................................21

CONCLUSION.............................................................................................................................................22

BIBLIOGRAPHY...........................................................................................................................................23

LITERATURE REVIEW

Performance Management System

Performance management is a procedure with the aid of which managers and personnel work collectively to devise, screen and evaluate an employee’s work targets and general contribution to the enterprise. Extra than just an annual performance assessment, performance management is the continuous technique of putting targets, assessing development and offering on-going education and comments to make certain that employees are meeting their targets and profession dreams.

A powerful overall performance control system will:

Be job specific, masking a vast variety of jobs within the business enterprise Align along with your agency’s strategic route and tradition Provide an accurate image of each employee’s performance Encompass a collaborative procedure for placing goals and reviewing performance based

totally on two-manner communicate among the employee and supervisor Display and degree outcomes (what) and behaviors (how) Include each advantageous comments for a activity nicely finished and constructive

remarks whilst development is wanted Ensure that employee paintings plans assist the strategic course of the enterprise Discover areas of improvements and establish plans for enhancing overall performance Aid personnel in attaining their work and profession desires through figuring out

education wishes and development possibilities

The establishment of an effective overall performance control system requires time and sources and therefore, the aid of the board, the executive director and different senior managers. When developing a brand new performance control manner, a business enterprise can strike up a committee made of employees, managers and board members to growth purchase-in, understanding and help for the procedure.

Management support to behave upon the results of the overall performance management system is also necessary to make sure that proper overall performance is recognized, inadequate overall performance consequences within the essential aid and/or schooling to enhance performance and continuously negative overall performance consequences in an alternate of duties or termination, as appropriate.

Typical outcome of PMS in an organization

If overall performance control is applied efficaciously with precise targets tied to the strategic and operational plan, organizational overall performance results in all likelihood will boom in no time. For instance, if the CEO asked for a 3% growth in gross margin, this objective could be cascaded right down to every branch, group and character which can influence the increase in gross margin. Folks who are successful at accomplishing this objective get a favorable evaluation, people who couldn't, gets a detrimental overall performance assessment inside the absence of extenuating occasions. The method of overall performance control therefore drives organizational performance consequences. Personnel that attain the organizational goals are rewarded with beneficial critiques and bonuses in step with their overall performance and contribution to the enterprise.

Communication: the employee and the manager communicate more often and agree on modified objectives to fit persevering with adjustments in conditions and priorities. This is an inclusive and collaborative manner, which ensures that the worker feels he has no longer wasted the year. The worker works toward specific goals which are relevant. If the employer is the use of a overall performance management product that has an overall performance diary, both the manager and worker attend the assessment assembly with copies of their performance diary notes. This incorporates results to be evaluated. Given that each have content, they feel a whole lot better prepared and strain is lower than in the event that they have been attending a meeting no longer aware of the subject rely.

Everyone knows the guidelines: Where there may be a nicely based performance management machine that is efficiently communicated, both the employee and supervisor enter the procedure with better tiers of self-belief as there are procedures to be followed. Personnel are assessed on success of targets which have been simply diagnosed and agreed to. The final results is that both people have an knowledgeable discussion and cognizance on success of both private and business goals, now not on problems which are inappropriate.

Higher Recording Opens Up verbal exchange:If the organization has a machine with an overall performance diary, then each party are organized with relevant content material to talk about. This raises self-belief and reduces pressure levels. Each events feel extra cozy and they could have a content wealthy and actual discussion approximately performance.

Frequent conversation Reduces stress:Given that those performance opinions occur greater regularly, the dialogue centers on overall performance of objectives rather than being ruled via the personnel' wishes. The needs of the business are mentioned extra regularly to gain particular overall performance effects. This indicates both the employee and manager talk greater successfully and obtain higher results.

Appraisals emerge as applicable for all with the aid of carrying out extra frequent critiques; goals may be adjusted and changed to healthy converting business situations. This dramatically

increases the probability that the objectives are applicable and are capable of being acted upon at some point of the performance period.

By performing common performance critiques, visibility is accelerated dramatically. Areas of non-overall performance get hold of lots extra consciousness and attention and troubles may be acted upon plenty faster. Most overall performance management structures offer reporting as to who has or has now not performed their goals (departments and individuals). Adjustments to objectives or method can then be made to make sure expectations may be met. Alternately, expectations can be modified as suitable. By using reviewing extra often, all managers and personnel start to devise and execute to certainly concept out goals. This effects in higher resource control and allows managers to work at the enterprise, now not in the enterprise.

Employee studying and development begins to happen: Given that most overall performance management structures require managers and employees to decide to a development plan, personnel enjoy real non-public improvement and end up greater engaged with the enterprise. They sense a part of the organization and start to remember the fact that they and the organization are interdependent. The corporation is growing the worker and the employee is working closer to developing the corporation with the aid of accomplishing its dreams. The majority of overall performance management structures are capable of provide graphical compliance reviews. Consequently, the placing of objectives and improvement plans for personnel can now not be not noted. Employees see real planning, are concerned in placing significant objectives and feature input into personal improvement plans which gain both themselves and the corporation. In all, this consequences in an engaged body of workers who are extraordinarily committed to achieving real results for the business enterprise

INTRODUCTION

About the company

Reliance Retail is the retail initiative of Reliance Group. It hasbuilt up valuable relationships

with customers in a short span of time by providing them outstanding services, superior quality

and exceptional experiences across all stores. 

Since its initiation in 2006, Reliance Retail has developed to take into account a huge number of

clients, and a great many agriculturists and merchants. Reliance Retail serves more than 2.5

million clients consistently, and its dedication program, Reliance One, has the support of more

than 6.75 million clients. Our across the nation system of retail outlets conveys a world-class

shopping environment and unmatched client experience fueled by our best in class innovation

and consistent production network framework. 

Reliance Retail has received a multi-group procedure and works accommodation stores, general

stores, hypermarkets, wholesale money and convey stores, and strength stores and has

democratized access to a wide range of items and administrations over all portions for every

single Indian customer. 

Reliance Retail has accomplished the qualification of being the biggest retailer in the nation with

center organization segments achieving market administration in their individual classes.

Dependence Retail's dedication to bettering lives has been encapsulated in its interest to have any

kind of effect on social financial issues in India. The activity has brought a great many ranchers

and little makers to the cutting edge of the retail upheaval by collaborating with them for

development. 

Profound understanding into India's monetary, social and utilization assorted qualities drives

Reliance Retail's vision in the retail universe. The working model depends on client centricity,

while utilizing normal focuses of fabulousness in innovation, business procedures and production

network. All the more imperatively, it has manufactured a solid and resolute establishment

through its uncommon individuals. 

 

Reliance Retail has developed as the accomplice of decision for International brands and has set

up elite organizations with numerous worshipped worldwide brands, for example, Diesel,

Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul and Shark, Thomas Pink,

Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision and some

more.

Reliance vision statement

“We will build one of the world’s most performance driven, process efficient and people friendly

learning organization to attract the best and the brightest who will be delivering optimum value,

design and experience to our customers on asustainable basis. We will create a workenvironment

which will be responsive, respectful and delightful”

PERFROMANCE APPRAISAL SYSYTEM AT RELIANCE

Employees want to be appreciated for the hard work they have put in and a tool like performance

evaluation provides the mechanism for creating a pay-for-performance culture within an

organization which further ensure creating a loyal, result oriented and motivated workforce

At Reliance Retail, Performance Evaluation is the formal process through which an employee’s

contribution (performance, competencies) is appreciated with reference to established goals

undertaken over a period of time to establish the employee’s performance, his developmental

needs and suggest improvements through a structured process

Objectives

To assess the performance of employees’ against set goals and objectives

To identify the training and developmental needs of the employees

Create employee performance data base which would aid the organization in making

various people related decisions

Performance Appraisal activity (Employee Coverage)

The annual Performance appraisal cycle at Reliance covers the following employees:

All Confirmed Employees as on 31st January 2007

For people who have joined before 31st January 2007 and are not confirmed, this online‐appraisal will act as Annual Appraisal plus Appraisal before confirmation as well. Hence

no need of a separate Appraisal before Confirmation.

Employees who have been transferred from RIL Group Companies to Reliance Retail on

or before 31st January, 20076

PARTS OF PERFORMANCE APPRAISAL AT RELIANCE

Performance appraisal at Reliance consists of:

Performance Assessment

Performance of an individual is evaluated against set goals and objectives during the concerned

year under consideration.

All the employees will be assessed on a minimum of 5 goals and objectives on a 5‐pointrating

scale ranging from:

1 – Does Not Meet Performance Expectations’ to ‘5 –Significantly Exceeds Performance

Expectations’, which will be converted to a 3point scale for the Overall Performance Rating by

the system.

The logic behind the conversion is a simple average of the ratings:

Average up to 2.5 (including 2.5) ‐ Overall rating is Below Plan

Average between 2.6 ‐ 4.5 the Overall rating is On Plan

Average between 4.6 ‐ 5 the Overall rating is Significantly Above Plan

However, the supervisor has the rights to recommend a different overall rating than the

oneprovided by the system with adequate justification.

This overall performance rating forms one of the inputs to the contribution rating.

Competency and Value Assessment

Competency is the combination of knowledge, skill, and attitude, behavior that are essential to

perform a job effectively and diligently and differentiate superior performers from average

performers.

In the current Performance Appraisal Activity an individual will be assessed on RR’s current 8

generic competencies applicable for a career group. These competencies have been arrived at

through extensive research and deliberated discussion.

Each competency has 2 parts:

a) Definition – the generic definition of the competency, which remains common across all

domains

b) Behavioral Descriptors –the behavioral manifestations of the competency. These are

observable and an employee is assessed on the frequency at which he displays these behaviors.

Each behavioral descriptor is rated on a 5‐point frequency scale ranging from ‘Never’

to‘Always’. The ratings for a particular competency are averaged to give an Overall Rating for

the Competency on a 3‐pointscale (1 – Needs Improvement, 2 – Meets Expectations, 3 –

Exceeds Expectations). All competencies that have a rating of 1 will get added into the areas of

improvement in the PDP

The Overall Competency Assessment is on a 3‐point Scale –

Needs Improvement,

Meets Expectations

Exceeds Expectations.

This rating forms the second input to the contribution rating.

Value Assessment

To create a culture of trust, ownership and achievement, it is essential that every employee

strives to live up to the organizational value. Organizational values are critical to the success of

the Reliance and form an important part of the Performance Management System.

Value Orientation is rated on a 2‐point Scale – Lives the Values & Does Not Live the Values.

Personal Development Plan

The Personal Development Plan (PDP) captures the identified development gaps and the plan of

action for the employee. The PDP is mutually arrived at by the employee and his/her supervisor.

It forms the basis for identifying the training and development plan for the employee.

The inputs for the PDP primarily come from the Performance Review Committee/ Discussion

between the Supervisor & the Employee. The plan may be in terms of Project reassignment/Job

rotation, coaching and Training that may be required to improve performance. This rating forms

the third input to the contribution rating.

PERFORMANCE APPRAISAL PROCESS

This is the point at which the execution of the employee is surveyed and talked about in intensive subtle element, with the supervisor imparting the shortcomings and qualities seen in employee thus, furthermore recognizing open doors for the representative to grow professionally.

Pre-Appraisal

It’s very important to enter the system so as to avoid any kind o discrepancies in future. It validates the whole performance appraisal process

Pre Appraisal Process Steps:

1) Employee signs onto RConnect and clicks on the PMS link

2S/he proceeds with validation of basic information, for example, Name of the appraisee and that of the R1

3) If any errors in the data are observed, the respective TE manager is informed about the same. The data is corrected and a new form with correct details is sent

4) Employee then begins with the Self Appraisal

Link for PMS for employee

Validation of date

Link for PMS for employee

YES

NOEmployee informs the OMS

Manager for correction of data

Performance Appraisal Process

At this stage Reliance Industries has unique step to conduct self-appraisal first and part appraiser if required in the process. Only after getting confirmation from the Supervisor’s supervisor the normalization process begins

Employee Self Appraisal Steps

Employee has to fill in at least 5 goals and objectives in the space provided

Employee provides rating to each of the goals and objectives in relation to the his/her performance on various parameters after having an overview of the rating

Completion of self-Appraisal by employee

Submit Form

Involvement of part appraiser

Formality completion by Part Appraiser on concerned project Supervisor conducts Performance

Review discussion with employee

Provision of overall scoring and rating by supervisor

Validation of congruency between performance rating and contribution Norm in Organisation

Supervisor’s supervisor approval on performance ratings

Normalization Process begins

Update Ratings if needed

Supervisor updates according to orders

YES

YES

NONO

Submission of Form

Revert

Approval

Employee can attach documents or provide comments in section of employee comments Proceeding further the employee on completion of the Part-1 of Appraisal Form in

Performance Assessment, He/she then moves to Competency Assessment In competency Assessment he/she gives rating under the eight competencies as per

Rating scale Competencies should be well supported by critical incidents Employee entails the training needs accomplished and mentions perceived development

plan to improve performance He/she can select a Part Appraiser (Up to 4): Part Appraisers are supervisor other than the

current superior which the employee would have worked during the assessment period

Part-Appraiser steps

The Appraiser logs on the PMS link provided Part appraiser assess according to the goals and objectives of the employee. He/she

may use self-rating so as to anchor his/her own rating He/she submits the form which henceforth forwarded to the supervisor which is

conducting the appraisal

Supervisors Steps

Superior logs on the PMS link He/she gives rating to all the goals and objectives of the employee, in this process he may

use self-rating to anchor his/her ratings In Competency Assessment part , the supervisor r gives rating to each of the eight

descriptive competencies Henceforth discussion with supervisors direct report , wherein they discuss

Goals and objectives of employees Competency rating Employee Development Plan

Arrival of training program as per the Appraisal Form On completion of the all the appraisals of the superior , the PMS Manager will start on

the normalization process with the help of report form SAP in relation to ratings for all employee under the concerned superior

PMS Manager checks that the Normalization Norm is being met thoroughly

Direct Reports Review & Approval process

Direct Reports logs on PMS Links Reviews the form and the rating provided by supervisor Entail justification in following areas:

Comparison between employee Self Rating and Supervisor rating Comparison between part appraiser and supervisor rating Comparison of system generated rating and supervisor rating

Revert the form in case of any discrepancies Closure in cases where approval is given by the rater

Normalization Steps

It is the relative ranking phase. The superior signs off normalization at state level and at business function level for people in corporate roles

Post completion of the PMS system by all the employees in the state – State HR Head initiates normalization process

Here the PMS Manager provides the supplementary documents such as the excel summary to facilitate normalization process

Normalization Instance

In scenario of 1oo employees in a state this how the normalization will be preceded

Performance Review Discussion

It is a description outlay of the performance of appraisee with the appraiser

It will have feedback mechanism Resolve any problems if there on board Outcome should be Development & performance management

Illustration of a Performance Management System

OUTPUTS OF PERFORMANCE APPRAISAL SYSTEM

Training and developmentAfter the completion of appraisal process there is always a need for conducting training need analysis for each and every employee of the organization

As per the performance assessment and comp gaps the training programs are drafted which can be cat into three stages

Job rotation/Job reassignment: He/she is given a period of a week to perform diff roles in relation to their current job profile so as to make them competent to perform new role and adjust with new environment

Coaching: This type of formal/informal training is essential for entry level/ mid level employees which entails a healthy and competitive environment for work inside the organization.

Training Programs/seminars: These programs helps in motivating employees to perform at par and develop the required skillset which will enhance their current and future performances

Salary IncrementsAs per the performance review and discussion with the supervisor(s) the employees on the basis of positioning on the contribution matrix are given some monetary benefits which and extended with additional rewards.

LIMITATIONS IN RELIANCE FRAMEWORK

Forced distribution system

Employee’s caliber is not dependent on results achieved but the presence amongst the

peers and it can degrade teamwork spirit and creativity which will critically impact the

organizational performance.

Bias by the direct reportee since there is no mechanism to check if there is any

discrepancies or any kind of prerequisites in the mind of the manager

Part Appraiser bias

This is a clear case of “Halo effect” on the mind of the employee

Post discussion stage there is no discussion of the results with the employees because of

which they are unknown to their performance ratings

CONCLUSION

The findings in this project have confirmed that it's far vital to have a powerful performance appraisal system. The system need to be unfastened from bias in order that employees are afforded the risk to get a truthful appraisal. It shows that if appraisals aren't honest, then a worker could now not be privy to their authentic performance stage. This will have an effect on their opportunity for advancement of their jobs in the future. It could also have an effect on personnel’ moral as correct appraisal effects encourage personnel to paintings even tougher. Consequently misguided ratings results in frustrated employees, irrelevant rewards and punishment.

An effective performance appraisal system is vital in any organization as this is a way on which managers’ base crucial decisions on employees’ career development.

Accountability would enhance effectiveness; hence managers need to be held accountable for their actions, so as to ensure that they conduct appraisals free from bias due to friendship and favoritism. In the event that their rating is challenged, they should be able to show clearly how they arrived at such a grade. Bias appraisals can affect the morale of other hard working employees, resulting in mediocre performance. It can also give the employees who receive the bias appraisals a false sense of security.

In end, the overall performance system that the firm intends to enforce will permit it to meet the expectancies of its stakeholders in the end. The firm will follow all important stages which are associated with the new approach to make certain the machine is aligned to the long term imaginative and prescient that publications its operations within the industry. extra importantly, overall performance management structures carried out via the firm will awareness on commencing up decision making procedures to allow personnel to broaden their professional talents in the long time.

As a result, this could allow personnel to make contributions to the long time achievement of the business enterprise with the aid of providing valuable ideas which will improve the fine of effects attained. Appraisal structures which the employer will use will enable it to be honest to all its personnel to inspire them to attain precise outcomes in their respective workstations.

BIBLIOGRAPHY

http://www.ril.com/OurBusinesses/Retail.aspx (Accessed: 20 April 2016). http://www.ril.com/DownloadFiles/SustainiabilityReports/ril_sr2013_14.pdf• (Accessed:

20 April 2016) http://www.theguardian.com/small-business-network/2015/feb/26/startup-of-the-year-

2014-refme Bibliography:Pty, P. (2013) Explain what is employee performance

management ? Available at: http://www.peoplestreme.com/what-is-performance-management.shtml (Accessed: 20 April 2016).

Bibliography: Ghosh, G. (2007) Fei Liang. Available at: http://www.slideshare.net/gautam/performance-management-24014?next_slideshow=1 (Accessed: 20 April 2016).

Bibliography: (No Date) Available at: http://https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&cad=rja&uact=8&ved=0ahUKEwiKmKj7yafMAhVHExoKHbrtAVAQFghgMAk&url=http%3A%2F%2Fhrcouncil.ca%2Fhr-toolkit%2Fkeeping-people-performance-management.cfm&usg=AFQjCNESZzBGX5UsRxDDTyuxqBIAg_3Psw (Accessed: 20 April 2016).

Bibliography: (No Date) Available at: http://https://www.coursehero.com/file/p7glt2m/Conclusion-Performance-Management-System-8-In-conclusion-the-performance/ (Accessed: 20 April 2016).