PROJECT REPORT “A STUDY ON PERFORMANCE MANAGEMENT” At HCL INFOSYSTEMS LTD. NOIDA Submitted towards partial fulfillment of the Requirements for the award of the PGDM Programme 2009-2010 Approved by AICTE (Equivalent to MBA) ACADEMIC SESSION 2009 - 2010
Submitted to :-
Submitted by:-
Prof. Shweta Mittal HR Department IMS Ghaziabad
Akansha Jaiswal 09022 Neha Singh Prerna Paul Priyanka pathak Ragiv Jalan Rupal Azmani Vikas Darbari
IMS
GHAZIABAD
LALKUAN
1
2.8. Perfor
Contents
mance Improv
1. Introduction
ement 1.1. HCL an overview
of
1.2. HCL DNA
Organi zation
1.3. Employer spotlight:
or
1.4. About HCL
em
1.6. Vision statement
Integrat
1.8. Quality Policy
ed
1.9. Objective
Process
1.10. Core Values Of
2.9. Ongoin
HCL
g
Infosystems Ltd.
Activiti es
Introduction
mance
of
Manag
Performance Management 2.2. Levels
of
of
Perfor
2. Literature Review - PMS 2.1. An
is
an
1.7. Mission Statement
Snapshot
a
Subsyst
1.5. Strong SAP Capabilities
1.11. A
the
ement
performance
management 2.3. Value for money 2.4. Measures and metrics 2.5. Processes 2.6. Objectives of a Performance Management System 2.7. Overall Goal and Focuses of Performance Management
7 7 12 13 15
2
16
3.2. Signifi
16
cance
16
of
16
Project
17
3.3. Definiti
17
on - A
17
Theoret
the
ical Perspec tive 20
3.4. Prepara
22
tion
23
and
24
Plannin
25
g
29
perfor
for
mance 30
manage ment
30
3.5. Perfor mance
30
Manag
2.10. Basic Steps
ement and
2.11.Project
Performance
Management 2.12.
Managing
pment Performance
Effectively
3.6. Perfor mance
2.13. Feature of good PMS
Assess
3. Project
ment
3.1. Objective of the project – Introduction
Develo
of
the
and Develo
problem 3
pment
Plan
In
HCL
48.
INFOSYSTEMS LTD 4. Research Methodology
51
4.1 Research Design
52
4.2 Data Collection Method
53
4.3 Analysis of PMS
60
5. Recommendation
61
6. Conclusion
62
7. Bibliography
63
8. Appendix
31 33 37
31
37
31
44
31 32
44
32
45 47 47
4
36 36 31
36
31
37 37
31 32 32
56
57
5
58
5 9
Acknowledgment
The project of this nature is arduous task stretching over a period of time, completing a project like this one takes the effort and cooperation of many people. Although this project report is being brought in my name, it bears an imprint of guidance and cooperation of many individuals. Several persons with whom I integrated have contributed significantly to the successful completion of the project study. In the successful & trouble free completion of my
final
term
project
titled
“PERFORMANCE
MANAGEMENT”, I am graceful to Institute of Management and Technology, Ghaziabad for helping us towards the completion of the project. I extend my deepest and sincere thanks to my project guide, Mr. Ram Krishn and other HR Executives HCL Infosystems Ltd. for the unflinching support and guidance through out the project I would also like to thank all the executives who shared their precious time and experience with me. Last but not the least, I extend my sincere thanks to all the staff members of HCL Infosystems Ltd. for their cooperation.
6
Executive summary
Performance management is the process of bringing people in to the organization making very sure that new entrants have the potential and willingness to contribute to organizational success. In today’s scenario without effective performance management the organization will meet the considerable resistance when introducing change. Without organizational change and development survival become very uncertain so in order to make the industry survive it is very important to adopt the different performance management practices in all organizations so as to understand the employees or workers need and satisfy them. There should be effective people utilization in every industry. All these practices in an organization will make the organization to grow at a faster speed. The study will be empirical and primary research will be done by using the questionnaire which will administer to sales, service and support function employee. The date will be collected and assimilated by using statistical tool like median and date will be analyzed by using Bar Chart. The analysis will be to find the effectiveness of current PMS.
7
INTRODUCTION HCL an overview Born in 1976, HCL has a 3-decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous microcomputer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This microcomputer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP. HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engine HCL's R&D was spun off as 8
HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semiconductor, operating systems, automobile, avionics, biomedical engineering, wireless, telecom technologies, and many more. Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.
9
.
1976
Hindustan Computers Limited (HCL) born.
1977
Distribution alliance formed with Toshiba for copiers.
1978
HCL
successfully
ships
in-house
designed
microcomputer at the same time as Apple. The Indian computer industry is born. 1980
HCL introduces bit sliced, 16-bit processor based
microcomputer.
10
1983
Indigenously develops an RDBMS, a Networking OS
a Client Server architecture, at the same time as global IT peers. 1986
HCL becomes the largest IT company in India.
1988
HCL introduces fine-grained multi-processor Unix-3
years ahead of “Sun” and “HP”. 1990
Data Quest marks HCL No.1 amongst top ten
computer giants. 1991
HCL Ltd. and Hewlett Packard, USA, partner to form
HCL-Hewlett
Packard
Ltd.
JV develops multi-processor Unix for HP-heralds HCL’s entry into contract 1994
Distribution alliances formed with Ericsson Switches
and Nokia Cell phones. 1997
HCL Info systems are formed. HCL's R&D spun-off
as HCL Technologies- marks advent into software services. JV with Perot Systems, stake divested in 2003. 1999
Initial Public Offering made by HCL Technologies
Ltd.Formation of Global Board of Directors. 2000
Large contracts won from Bankers Trust, KLA Tenor,
Cisco, GTech, NEC among others. 2001
JV with Deutsche Bank- DSL software formed. HCL
BPO Incorporated. Acquired British Telecom Apollo’s
11
contact center in Belfast, Northern Ireland. HCL Info systems become largest hardware company. 2002
Strong pursuit of nonlinear strategy to widen services
portfolio; several JVs and alliances formed. Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500 company. Infrastructure services division launched to address emerging
global
needs.
Software businesses of HCL Info systems and HCL Technologies merged. 2003
Largest BPO order ever outsourced to an Indian BPO
firm, won from British Telecom. Landmark deals signed with Airbus and AMD. HCL manpower crosses the 20,000 mark.. 2004
Accorded leader status by Meta Group in Offshore
Outsourcing. HCL is India’s No.1 PC 4th year in a row.
2005 •
HCL signs Software Development Agreement with Boeing for the 787 Dream liner program.
•
JV with NEC, Japan
•
HCL sets up first Power PC architecture design center outside of IBM.
•
Completes buy-out of JVs with Deutsche Bank and British Telecom Apollo Contact Center.
•
HCL integrates all group employees under HCL in domain.
12
•
Sets up a dedicated Offshore Design Center for leading
Tier-1
Aerospace
supplier,
Hamilton
Sundstrand. •
HCL Info systems launches sub Rs.10, 000 PC. Joins hands with AMD, Microsoft to bridge the digital divide.
2006 •
75,000+ machines produced in a single month.
•
HCL Info systems in partnership with Toshiba expand its retail presence in India by unveiling
'shop
Toshiba'. •
HCL Info systems & Nokia announce a long-term distribution strategy.
•
HCL the leader in Desktops PCs unveils India's first segment specific range of notebooks brand - 'HCL Laptops'.
•
HCL Info systems showcase Computer Solutions for the Rural Markets in India.
•
HCL Support wins the DQ Channels-2006 GOLD Award for Best After Sales Service on a nationwide customer satisfaction survey conducted by IDC.
•
HCL AND ZEE - Dish TV team up to take DTH TV to its next level of growth in India
•
HCL Info systems First in India to Launch the New Generation of High Performance Server
Platforms
Powered by Intel Dual - Core Xenon 5000 Processor. •
HCL Forms a Strategic Partnership with APPLE to provide Sales & Service Support for iPods in India.
13
HCL is one of the leading global Technology and IT enterprises with annual revenues of US$ 4 billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies (http://www.hcltech.com/) and HCL Info systems (http://www.hclinfosystems.in/) The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting,
Remote
Infrastructure
Management,
BPO
services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The HCL team comprises 45,000 professionals of diverse nationalities, operating across 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology major.
14
HCL DNA: Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous microcomputer in 1978, at the same time as Apple. Since then, HCL has had a 3-decade rich history of inventions and innovations. Entrepreneur is the term that best describes the HCL employees. The TIME magazine has referred to HCL as an "intellectual clean room where its employees could imagine endless possibilities." Ever since HCL entered into an alliance in 1970s, partnerships and HCL have been inseparable. Bonds have been forged with partners to co-create value. Strong inorganic growth is a testimony to the spirit of partnerships.
15
This entrepreneurial and win-win relationship driven culture continues to guide HCL in all its endeavors.
Employer spotlight:
HCL is one of India’s leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company
leverages
an
extensive
global
offshore
infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace,
16
Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment)
HCL in India: HCL has evolved from a dream of eight youngsters in 1977 to the country's top IT group today. Our well-balanced portfolio of turnkey solutions across equipments, software and services make our offerings end-to-end for all IT needs of the Indian customers. Our recognitions speak of our dominant position in India. V&D100 2005, No. 1 Security service provider in India by DQ Annual 2004, No.1 Infra service provider by CMP 2005, and No.1 PC Brand recognize us as No.1 Network Management service provider in India for the last
5
years
in
India.
HCL is known to be the harbinger of technology in the country. Our partnerships with technology leaders like JDA, Oracle, SAP, KANA, Intel, Microsoft go back to the time when India was being recognized as a growing and strategic market. Along with global capability, HCL has leveraged such relationships to create value for Indian customers - the comprehensive integrated market surveillance solution for SEBI
being
one
such
example.
Our services are backed by an extensive direct support infrastructure spread across 170 locations nationwide, which
17
offer 24-x7 support offering for critical sites. With more than 70 SAP implementations till date, HCL has been rendering service to key Indian players in Banking, Retail and Government. We are committed to the Indian Market and will continue to invest more to further enrich our end-to end IT offerings for this market. Our flexible engagement models, rich heritage of technology solutions and over 29 years of leadership across service areas give us a strategic advantage to meet the nation's IT needs.
About HCL
HCL Enterprise is a leading Global Technology and IT enterprise that comprises two companies listed in India HCL Technologies & HCL Info systems. The 3-decade-old enterprise, founded in 1976, is one of India’s original IT garage start-ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises approximately 42,000 professionals of diverse nationalities, who operate from 16 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. HCL Technologies is one of India’s leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in
18
1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company
leverages
an
extensive
global
offshore
infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment). For the quarter ending 31st December 2006, HCL Technologies, along with its subsidiaries had revenue (TTM) of US $ 1.155 billion (Rs. 5220 crore) and employed 38,317 professionals.
1.1. Strong
SAP
Capabilities:
HCL Technologies is one of the largest global SAP service providers in India, providing a spectrum of SAP services. HCL Technologies has developed strong capabilities on the SAP Net Weaver platform and drives market demand in the SAP world through unique market propositions and upgrade offerings to my SAP ERP. HCL is a value added reseller and services partner across multiple geographies. With a track record of successful engagement in this space, HCL has received prestigious awards from SAP - distinguished partner award 2005, best my SAP HCM implementation award 2005,
19
Sap’s
"outstanding
partner”
award
for
implementation/upgrade project 2004, and more. Forrester has lauded HCL Technologies is one of a number of firms in this space and is a viable candidate for multinational firms that are contemplating global outsourcing and are interested in SAP implementation and maintenance services.
VISION STATEMENT •
Together we create enterprises of tomorrow.
MISSION STATEMENT •
To provide world class information technology solution and services to enable our customers to serve their customer better’.
QUALITY POLICY STATEMENT •
“We will deliver defect-free products, service and solutions to meet the requirements of our external and internal customers the fist time, every time.’
OUR OBJECTIVE OUR MANAGEMENT OBJECTIVE
20
•
To fuel initiative and foster active by allowing individuals freedom of action and innovation in attaining defined objectives.
OUR PEOPLE OBJECTIVE •
To help HCL Infosystem people share in the company’s success, which they make possible to provide job security based on their performance; to recognize their individual achievements and to help them gain a sense of satisfaction and accomplishment from their work.
CORE VALUES •
We shall uphold the dignity of individual
•
We shall honor all commitments.
•
We shall be committed to Quality. Innovation and growth in every endeavor.
•
We shall be responsible Corporate Citizens.
A SNAPSHOT OF HCL Infosystems Ltd. •
India’s leading IT company 21
HCL In say is India’s largest information technology (IT), transnational conglomerate. With its-depth expertise in developing solution spanning diverse technologies. •
HCL Insys aims to propel its course on to the high growth Path total Technology Integration. Towards capturing two Ends of market spectrum - enterprise solution and PCs.
HCL Insys has made significant strategic infrastructure investments in the professional services Organization (PSO), the
Support
Services
Organization
(SSO)
and
its
manufacturing plant at Pondicherry. Thus it is the manufacturer of general purpose computer and provides services in the areas of IT Consultancy, system integration, Software Development and Training. •
It makes true technology integration possible across multiple platforms, this was possible because of the indepth expertise in developing state-of-the-art indigenous hardware solution; thorough understanding of networking technology.
•
As a part of this plan to market more and more technology integration services world-wide, HCL in sys has already taken a step in the direction of export by localizing its service comprising software, hardware design and development, value added support service networking abs repair services and overseas integration projects to meet the demands of the global clients.
Company’s continuous and consistent anticipation of the requirement of the IT Industry has led it to undertake the
22
acquisition of the business of HCL Info solutions limited (now known as Frontline Division), HCL Peripherals Limited (now
known
the
acquisition
of
Customer
Support
Organization (CSO) activities of HCL Office Automation Limited (now know as office Automation Division)
FRONTLINE DIVISION Frontline Division, formerly HCL Info solution Ltd. (HCL Insol) started with the aim of increasing market penetration by handing segments not covered by HCL Insys and creating new niches. Today it specializes.
23
PMS An Introduction of Performance Management What is performance management? Performance management is the activity of tracking performance against targets and identifying opportunities for improvement - but not just looking back at past performance. The focus of performance management is the future - what do you need to be able to do and how can you do things better? Managing performance is about managing for results. Performance-based management at any level in the organization should demonstrate that •
You know what you are aiming for
•
You know what you have to do to meet your objectives
•
You know how to measure progress towards your objectives
•
You can detect performance problems and remedy them
Why is it important? The Modernizing Government agenda sets challenging new performance objectives for organizations, from the delivery of high quality services that meet the needs of their customers and stakeholders, to doing more within the constraints of available resources, through to continuous improvement in
24
how
the
organization
itself
operates.
Performance
management underpins the operations and processes within a strategic change program framework. Sound practices and targets, which are both flexible and reactive to change, are needed to achieve performance improvement. The effective performance of your organization depends on the contributions of activities at all levels - from top management policy development through to efficiently run operations. In response to the pressures and opportunities for improving organizational performance, you need to understand how to define and measure performance as part of a concerted strategy for relevant, successful and cost-effective operations.
Critical factors for success •
Focusing on outcomes that meet business objectives, rather than outputs
•
Managing performance by cascading down from the top and building bottom-up
•
Defining and using measures that evolve over time
•
Using a mix of short and long term measures, and selecting measures that link cause and effect
•
Measuring effectiveness (doing the right things) and efficiency (doing things right) in parallel
•
Relating individuals' reward and remuneration with achievement of outcomes.
25
Who is involved? Business managers are responsible for setting targets and managing performance against those targets; contract managers monitor service performance from the customer viewpoint; service providers supply performance information.
Principles Performance management should be an integrated part of a business lifecycle helping an organization to mature through evolving and changing performance measures, from their definition through to monitoring and review in addition, by including the IS/IT component throughout this lifecycle, rather than just considering it as a 'downstream' cost of provision, there should be enhanced benefits from an increased and more effective contribution from any investment made in IS/IT. You will need to ensure that you have adopted sound practices in commissioning and acquiring IS/IT services to achieve
performance
management
identifies
improvement. opportunities
Performance for
maximizing
improvements in managing service delivery in the future. Performance management helps you to make decisions about investment routes, affordability and setting investment priorities in the face of competing demands for resources.
Managing for results Managing for results requires the organization to focus on the outputs of the processes and activities undertaken by the 26
organization at varying levels. Together these outputs will contribute to the achievement of the outcomes desired by the organization and those of the government as a whole.
Levels of performance management 1. The effective performance of your organization depends on the contribution of activities at all levels from top management policy development through to efficiently run operations. There are three or four levels of performance management in the model framework below, some organizations may combine the strategic level with the organization’s priorities level. 2. Organization’s
priorities:
at
the
highest
level
performance management is rooted in the organization’s long term business strategy. Measures at this level are of impact,
resource
utilization
and
public
service
improvement. 3. Strategic level performance management: at this level the management concern is from an "outside in" as well as an internal perspective. Measures are of outcome, such as volume and value of service take-up, upward trends for inclusion, staff and users' satisfaction. 4. Program
level
performance
management:
performance management at this level is focused on the desired results of programs of change, to demonstrate what has been accomplished. The measures used would include those stated in individual business cases. Benefits
27
management would help to determine if these are achieved. 5. Tactical or operational service level performance management: here the management focus is concerned with service delivery and outputs, using conventional service level agreement approaches and related measures of aspects such as volumes and quality. Although performance measures and indicators may be different at each level, they will need to be. •
Directional - to confirm that you are on track to reach
the goals. •
Quantitative - to show what has been achieved and
how much more is to be done. •
Worthwhile - adding more value to the business than
they cost to collect and use. Value for money You must be able to demonstrate that you have achieved value for money in your operations. Value for money is taken to cover three measures of performance: •
Economy - Minimizing the cost of resources used for
an activity, having regard to appropriate quality •
Efficiency - the relationship between outputs, in terms
of goods, services or other results and the resources used to produce them
28
•
Effectiveness - the extent to which objectives have
been achieved, and the relationship between the intended impacts and actual impacts of an activity.
Measures and metrics You should use these evaluation criteria for measures and metrics: •
Are you measuring the right thing?
•
Do you have the right measures?
•
Are the measures used in the right ways?
•
Do you determine the quality of a particular
performance metric using the SMART test (Specific, Measurable, Attainable, Relevant, Timely)?
The
procedures
and
measures
used
in
performance
management will depend, among other factors, on the type of business process which is being measured. A business process is assumed to be made up of a number of activities which transform inputs into outputs and contribute to the realisation of outcomes. The customers for a process may be external (for example, members of the public) or internal, within the same organisation or elsewhere in the public sector.
Business processes can be distinguished by: •
The extent to which the activities involved are people-
oriented as opposed to automated
29
•
Whether the activities are primarily 'front-office' or
'back-office' - that is, the amount of direct contact which the staff have with the customers or recipients of the process •
Whether the process itself is the important feature of
the activity - for example, in delivering consultancy - or whether the activities are concerned primarily with the generation of defined outputs •
The extent to which the activity is customized or
tailored to the needs of each customer, as opposed to being routine and procedural •
The amount of discretion which needs to be exercised
in the activities •
The duration of the contact with the customer.
Processes You will need to review the effectiveness of your procedures for: •
Setting performance targets
•
Designing measures of performance relevant to the
targets •
Systematically and accurately measuring outcomes
•
Assessing the performance of external service
providers •
Using results for informed decision-making
•
Improving performance.
Research shows that most organizations have the components of performance management in place, but they are not always used to overall advantage. A possible five-step approach that
30
could help organizations in improving the performance management of the IS/IT contribution is outlined below, with suggested techniques. Step 1: Identify your level of maturity in performance management •
Look at how the organization is performing in all its
aspects of performance management - from direction setting through to review and measurable improvement. •
Do an assessment; this will help to identify your
organization’s maturity and the strengths and weaknesses. •
Establish where you are now as a series of baselines,
looking at performance management at strategic program, tactical and operational levels. •
Bottom-up measures of economy and efficiency are
likely
to
be
reasonably
strong
and
have
good
management. This may not be so well developed for effectiveness measures •
Innovation,
process
improvement,
customer
satisfaction, and contribution to policy objectives. Most organizations have a good understanding of financial measure; this level of understanding needs to be developed for other measures. •
Techniques: Assessment; baseline
Step 2: Identify where performance management is important to your organization •
Is it in setting direction or ensuring the delivery of
required
benefits
or
improving
the
alignment,
31
performance and contribution of the internal and external resources used by the organization? •
Identify the values for your organization.
•
Key values for safety critical operational services are
speed
and
integrity
of
information.
A
different
organization might place high value on information flows or on single points of access to information at a contact/call centre. •
Techniques: Value chain analysis; benchmarking with
other organizations (which may identify things you had not thought of) Step 3: Resolve any mismatch between steps 1 and 2 •
Review performance management at each of the four
levels - (organization, strategic, program and tactical). Are there weaknesses in areas that are important to your organization? •
Techniques: to become more outward looking and
customer-focused, use the well established balanced scorecard and EFQM® techniques. •
To answer questions about where IT makes a
contribution, use Goals, Questions and Metrics (GQM) to identify and define measures.
Step 4: Establish where you want to be and begin to build performance management into business processes and into the culture
32
•
The aim is to have target, measurement and review
processes for those things that the business considers important such as product, process, service and staff. •
You will have lots of measures which need to be
prioritised
against
your
particular
perspective
on
effectiveness, efficiency and economy and against your values. •
establish benefits management as a norm
•
Use databases to collect Techniques performance
information and analyse trends •
Include performance management in the business,
programme and project lifecycle Step 5 : Feed information back into performance improvement Monitor and take action on: •
We achieve what we set out to do?
•
Where are the opportunities to improve?
•
What can we do to improve? You are seeking answers
to: •
What is achievable?
•
What is important for our organization?
•
What was achieved?
Techniques: Process assessment; your own targets, looking at benchmarks from the outside world.
33
The process of performance management
34
Objectives of a Performance Management System Performance
management
is
an
integral
part
of
a
comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity.
A staff performance management system aims at: To help achieve departmental objectives through staff Departments formulate strategies and objectives to support their vision, mission and values. To achieve these broad objectives, departments have to turn them into specific objectives and targets for the divisions, sections, units and subsequently individual job objectives and targets for implementation. As individual job objectives are linked to those of departments', the performance of individual officers contributes to the delivery of departmental objectives.
To
evaluate
performance
and
improve
communication between managers and staff on managing performance The staff performance management system provides a mechanism to monitor and evaluate staff performance. Performance objectives are set at the beginning of the performance management cycle through open discussion
35
between the supervisors and the appraisees. Progress is monitored regularly and feedback from staff and supervisors is collated to help clarify objectives and output expectation; and to enhance performance.
To provide opportunities for development The staff performance management system serves as a multipurpose management tool. It provides valuable information to help identify individual training needs so as to enhance performance and to develop the potential of the staff for further advancement. The following figure provides an illustration of how performance management links with other human resource functions.
Overall Goal and Focus of Performance Management The overall goal of performance management is to ensure that the organization and
all of its subsystems (processes,
departments, teams, employees, etc.) are working together in an optimum fashion to achieve the results desired by the organization.
Performance Improvement of the Organization or a Subsystem is an Integrated Process Note that because performance management strives to optimize results and alignment of all subsystems to achieve the overall results of the organization, any focus of performance management within the organization (whether on department, process, employees, etc.) should ultimately
36
affect overall organizational performance management as well.
Ongoing Activities of Performance Management Achieving the overall goal requires several ongoing activities, including identification and prioritization of desired results, establishing means to measure progress toward those results, setting standards for assessing how well results were achieved, tracking and measuring progress toward results, exchanging ongoing feedback among those participants working to achieve results, periodically reviewing progress, reinforcing activities that achieve results and intervening to improve progress where needed. Note that results themselves are also measures. Note: these general activities are somewhat similar to several other major approaches in organizations, e.g., strategic planning,
management
by
objectives,
Total
Quality
Management, etc. Performance management brings focus on overall results, measuring results, focused and ongoing feedback about results, and development plans to improve results. The results measurements themselves are not the ultimate priority as much as ongoing feedback and adjustments to meet results. The steps in performance management are also similar to those in a well-designed training process, when the process can be integrated with the overall goals of the organi zation. Trainers are focusing much more on results for performance. Many trainers with this priority now call themselves performance consultants.
37
Basic Steps Various authors propose various steps for performance management. The typical performance management process includes some or all of the following steps, whether in performance management of organizations, subsystems, processes, etc. Note that how the steps are carried out can vary widely, depending on the focus of the performance efforts and who is in charge of carrying it out. For example, an economist might identify financial results, such as return on investment, profit rate, etc. An industrial psychologist might identify more human-based results, such as employee productivity. The following steps are described more fully in the topics Performance
Plan,
Performance Appraisal
and
Development Plan,
including through
use of an example application. The steps are generally followed in sequence, but rarely followed in exact sequence. Results from one step can be used to immediately update or modify earlier steps. For example, the performance plan itself may be updated as a result of lessons learned during the ongoing observation, measurement and feedback step. NOTE: The following steps occur in a wide context of many activities geared towards performance improvement in an organization, for example, activities such as management development,
planning,
organizing
and
coordinating
activities. 1. Review organizational goals to associate preferred organizational results in terms of units of performance,
38
that is, quantity, quality, cost or timeliness (note that the result itself is therefore a measure) 2. Specify desired results for the domain -- as guidance, focus on results needed by other domains (e.g., products or services need by internal or external customers) 3. Ensure the domain's desired results directly contribute to the organization's results 4. Weight, or prioritize, the domain's desired results. 5. Identify first-level measures to evaluate if and how well the domain's desired
results were achieved
6. Identify more specific measures for each first-level measure if necessary 7. Identify standards for evaluating how well the desired results were achieved (e.g., "below expectations", "meets expectations" and "exceeds expectations") 8. Document a performance plan -- including desired results, measures and standards 9. Conduct ongoing observations and measurements to track performance 10. Exchange ongoing feedback about performance 11. Conduct a performance appraisal (sometimes called performance review) 12. If performance meets the desired performance standard, then reward for performance (the nature of the reward depends on the domain) 13. If performance does not meet the desired performance standards, then develop or update a performance development plan to address the performance gap* (See Notes 1 and 2)
39
14. Repeat steps 9 to 13 until performance is acceptable, standards
are
changed,
the
domain
is
replaced,
management decides to do nothing, etc.
Note 1: Inadequate performance does not always indicate a problem on the part of the domain. Performance standards may be unrealistic or the domain may have insufficient resources. Similarly, the overall strategies or the organization, or its means to achieving its top-level goals, may be unrealistic or without sufficient resources. Note 2: When performance management is applied to an employee or group of employees, a development plan can be initiated in a variety of situations E.g. a. When a performance appraisal indicates performance improvement is needed, that is, that there is a "performance gap" b. To "benchmark" the status of improvement so far in a development effort c. As part of a professional development for the employee or group of employees, in which case there is not a performance gap as much as an "growth gap” d. As part of succession planning to help an employee be eligible for a planned change in role in the organization, in which case there also is not a performance gap as much as an "opportunity gap"
40
e. To "pilot", or test, the operation of a new performance management system.
Performance
management
mainly
include
following things: Performance management is the systematic process by which an agency involves its employees, as individuals and members
of
a
group,
in
improving
organizational
effectiveness in the accomplishment of agency mission and goals.
•
Planning
•
Continually monitoring performance,
•
Developing the capacity to perform,
•
Periodically rating performance in a summary fashion, and
•
Rewarding
work and setting expectations,
good performance.
The revisions made in 1995 to the Government wide performance appraisal and awards regulations support sound management principles. Great care was taken to ensure that the
requirements
those
regulations
establish
would
41
complement and not conflict with the kinds of activities and actions practiced in effective organizations as m after of course. Additional
background
information
on
performance
management can be found in the following
Planning In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts towards achieving the organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are requirement
Monitoring
42
In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable performance can be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned.
Developing Employees In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods.
Providing
employees
with
training
and
developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology. Carrying out the processes of performance management provides an excellent opportunity to identify developmental
43
needs. During planning and monitoring of work, deficiencies in performance become evident and can be addressed. Areas for improving good performance also stand out, and action can be taken to help successful employees improve even further.
Rating From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions; such as granting within-grade pay increases and determining additional retention service credit in a reduction in force. Note: Although group performance may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group.
Rewarding
44
In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance — like saying "Thank you" — don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many no monetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.
Managing Performance Effectively In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five-component processes working together and supporting each other achieve natural, effective performance management.
45
Features of a Good Performance Management System A good staff performance management system normally consists of the following features: Fair and open Objective -The system designed should aim to facilitate objective and fair assessment by the management and encourage frank and constructive feedback of appraises. These can be achieved through: •
Setting clear targets and standards;
•
Providing opportunities for supervisors to inform
appraises
of
their
performance
regularly,
to
be
accompanied by timely coaching and counseling; •
Permitting the appraise to have access to the entire
report and to review the appraisal before the appraisal interview; and •
Where necessary an assessment panel should be
formed to ensure fairness in performance rating. Adopting such an open system for staff performance also supports the spirit of the Personal Data (Privacy) Ordinance.
Competency-Based Competency refers to the knowledge, attributes, attitude and skills required to perform a job effectively. There are two broad categories of competencies: core competencies and functional competencies. Core competencies are the generic
46
competencies associated with effective performance required by a group of job holders in a department across different divisions/sections. An example is managerial competencies required for staff in managerial positions. Functional competencies are the competencies specific to certain job functions, such as computer programming skills for programmers in the Computer Section and classroom skills for trainers in the Training Division of a department. Competencies are reflected in a set of desirable behavior patterns which are observable, measurable and can be tracked and monitored. Developing and using a competency-based approach enables departments to use a common language and structured way to define and describe appropriate job behaviors at different ranks as officer’s progress through the grade. The approach help to assess staff's potential and promo ability to the next higher rank and identify development needs of the staff. It also
enhances
the
objectivity
and
transparency
of
performance assessment. When
core
competency-based
approach
is
adopted,
departments need to ensure that the competencies are developed properly by : •
Aligning
individual
performance
objectives
with
departmental ones, •
Securing senior management's commitment, and
•
Involving staff in the process. Furthermore there should be a clear differentiation in competency descriptions among different ranks in the same
47
grade. An unduly long list of competencies may adversely affect the effectiveness of the system. For competencies to effectively serve the needs of a department, they should be department-specific and reflect the missions, values and culture of the department. Any list of competencies cannot be exhaustive. It only provides the common language and understanding of the key dimensions and descriptions that warrant attention. Upon implementation, there should be proper and adequate training for the staff on the implementation of the performance management system Performance planning starts with a session between the appraising officer and the appraisee to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraisees, that is key result areas (KRAs).
A Continuous Process Staff performance management cycle is a continuous process which involves : •
Performance planning
•
Continuous coaching and development
•
Interim review
•
Performance appraisal 48
• Performance planning Performance planning starts with a session between the appraising officer and the appraisee to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraisees, that is key result areas (KRAs). Examples of KRAs are: •
Timely completion of caseloads
•
Customer satisfaction and relations
•
Staff development
•
Resource management
•
Project management Specific, measurable, achievable and time bound targets will then be set on the basis of the KRAs. The appraising officer should ensure that these targets are in alignment with the overall departmental objectives and that they are clearly understood by the appraisee. Depending on the nature of the job, appraising officers may alternatively agree with appraises a list of key responsibilities with specific performance results. This list provides the appraisees and the appraising officers with the yardstick to objectively discuss, monitor and assess performance. The list should be kept under frequent review and be revised whenever there are changes in the job.
49
Continuous coaching and development The performance management system is a on-going process. After work targets and standards have been decided and performance objectives agreed upon, the appraising officer should start the coaching and development process which threads through performance planning, regular feedback and guidance, interim reviews and performance appraisal. Coaching is about providing regular feedback to staff on their performance. It aims at: •
Giving recognition to encourage and reinforce good
performance; and •
Providing advice and counseling to help improve
performance, and where appropriate, take corrective action. Through the coaching sessions, training needs should also be identified and followed.
Interim review An interim review is a scheduled, formal discussion between the appraising officer and the appraisee to review the latter's progress in meeting the agreed objectives/responsibilities. This usually takes place in the middle of the appraisal period. An interim review should take the form of a structured session to provide an opportunity for additional coaching, for problem solving, and for updating objectives/responsibilities.
50
An interim review aims to: •
Identify performance results that are below, on or
above target and determine appropriate responses on corrective measures. Supervisors should use this occasion to recognize and encourage good performance. On the other hand, performance below targets is to be pointed out and guidance for improvement to be given; •
Assess and follow up development or training need of
staff
to
assist
them
in
achieving
their
objectives/responsibilities; •
Ascertain whether there are potential problems that
may affect the appraiser’s performance in the latter half of the reporting cycle and put in place preventive measures; and •
Review
whether
adjustments
to
the
agreed
objectives/responsibilities are required.
Performance appraisal Performance appraisal is the formal assessment on the appraisee’s performance for the appraisal period. It covers the following aspects: •
How effectively the agreed objectives/responsibilities
have been carried out and targets met; •
Whether the effectiveness has been adversely affected
by any constraints or obstacles; •
The strengths and weaknesses of the appraisee which
affected or will affect the officer's further development; •
And what sort of personal/career development and
training actions should be taken.
51
To maintain an open system •
The appraisee should be shown the assessment by the
appraising
and countersigning
officers before the
appraisal interview. •
Countersigning officers are encouraged to complete
the appraisal form before the appraisal interview is conducted; and •
An interview record has to be prepared and signed by
both parties. For training and career development proposals put forward in the appraisal, the grade management must take the initiative to ensure any necessary follow up actions are taken in a timely and appropriate manner. These proposals will also provide useful reference for the supervisors to develop the staff's competencies. Common themes on training and development
identified
should
be
consolidated
for
incorporation into the training and development plans of the department and the grade. To ensure consistency in assessment standards and fairness in performance
rating
in
staff
appraisals,
heads
of
departments/grades may consider if an assessment panel should be set up. An assessment panel is a management tool to help departments cross moderate appraisal ratings. An assessment panel is usually chaired by the head of branch/division or head of grade with members drawn from section/unit heads. At the start of a reporting cycle, the assessment panel will meet to discuss the marking criteria
52
and standard. Staff will be informed of these criteria and standard and clear guidelines will be issued to appraising officers. The assessment panel will review the completed reports on the basis of panel members' knowledge about the performance of the appraisees. If the assessment panel disagrees with the assessment of a report, the reviewing officer and the appraising/countersigning officer, where necessary, may be requested to explain before the panel. Amendments may be made to the appraisal reports to ensure parity of assessment, if necessary.
PROJECT
53
Objective of the Project – Introduction of the Problem Primary Objective To understand the basic features of performance management plan or performance assessment in HCL
and their
contribution in the success of HCL Infosystems Ltd. within a short span of previous years. Secondary objective To identify which of the functional aspects/ Parameters are low and which dysfunctional aspects/ Parameters are high in order to put some suggestion for increasing the former and reducing the latter in other words to move from dysfunctional to functional performance assessment.
Significance of the Project The six weeks of summer training at HCL Infosystems Ltd. gave me a complete exposure to the organizational work life. It was unique opportunity to explore the realities of India’s leading companies as a researcher and gather knowledge from its vast repertoire of experience. It was great learning experience to know the duties performer, responsibilities taken and the skill regained by the executives of the organization to reform heir jobs effectively and efficiently. The project not only helps me to enhance my practical knowledge but it also help me to understand how performance management work into the organization and
54
how executives assess their own employee into the organization. The summer project, also made me realize the worth of an HR manager. I got to know the importance of employee assessment and communication and interpersonal skill in getting things done from other. In a net shell, it was a very fulfilling and fruitful period of my life as a management student.
Definition - A Theoretical Perspective Performance Management is the process of crating a work area setting in which people are enabled to perform to the best of their abilities. Performance Management is a whole work system that begins when a job is defined as needed. System includes the flowing actions1. Development job description 2. Select appropriate people with an apply selection process. 3. Negotiate requirement and accomplishment based performance standards 4. Outcomes measures. 5. Provide effective orientation training. 6. Provide ongoing coaching and feedback.
55
7. Conduct
quarterly
performance
development
discussions. 8. Design effective compensation
and recognition
systems that reward people for their contribution. 9. Provide promotional/crier contributions. 10. Assist with exit interviews to understand why valuable employees leave the organization.
Preparation and Planning for performance management Much work is invested, on the front end, to improve a traditional employee appreciate process, Infect managers can feel as if the new process is too time consuming ones the function of developmental goal is in place however time to an administrator the system decreases. Each of these steps to taken with the participation and cooperation of the employee for best results.
Performance Management and Development •
Define the purpose of the job, job duties.
•
Define the performance goals with measurable
outcomes. •
Define the each job responsibilities a goal.
56
•
Define the performance standards for key components
of the job, •
Hold interim discussions and provide feedback abuts
employee performance. •
Maintain a record of performance through critical
incident reports. •
Provide opportunity for broaden feedback. Use 360`
performance feedback system. •
Develop administer a coaching and implement plan if
the employee is not meeting expectation
Performance Assessment and Development Plan In HCL INFOSYSTEMS LTD. Prior to filling the form please read carefully Instructions to the Appraiser •
Appraise the employee in related to the positions held
during the period under appraisal. •
Be objective, Avoid any personal prejudice.
•
Do not evaluate on the basis of isolated incidents, but
base your judgment on the entire period under review. •
Consider each independently, uninfluenced by the
rating given for other factors. •
This from will not be treated as complete and
processed further until all selections are filled up.
57
Performance appraisal guidelines Appraisal procedure Performance appraisal encompasses the on-going workrelated discussions, which take place between appraisals and appraisees throughout the year. The formal performance appraisal meeting is normally attended by the employee and manager only; but when relevant, another manager will also participate (e.g. functional head / HR person).
The Form And Its Contents The guide for the performance / achievement rating is as follows. Outstanding – Consistently exceeds the requirement of job. Exemplary performance - Far exceeds the requirement of job. Growth potential unlimited. Very good: - Handle assignments with thoroughness and perfection, effective discharge of responsibilities to the satisfaction of superiors completes assignment in time. With a little more initiative could have performed better. Good: - Just meets the normal requirements of the job, needs substantial improvement in all areas of work to meet requirement of complete employee. Not Up to the Expectation - Not likely to meet the requirements of complete employee.
58
Section 1 : Quarterly Self appraisal forms:
a)
General notes on goals /target setting
Key responsibility areas relate to the key result area on going and inherent in the achievements and performance again each one. Targets and achievements are also to be filled after discussing with the manager. Target related to the priority activates normally are within the key responsibility areas. Target must be agreed between the manager and the subordinate. Each target should be specified in such a way that it will be clear when it is met and must include the time frame in which it elements to ensure consistence as summarized in the acronym SMART (S-specific, Mmeasurable, A-achievable, R-relevant, T-timer related). Although it is anticipated the performance against the target will be assessed quarterly, it is responsibilities are reviewed at appropriate in travels every quarterly. The manager should ensure that at all times the subordinate has a clearly defined set of agreed Target. Target for the period under review: In section 1 KRA/ assignment for the period under review should be stated. In some cases it will be necessary for the objective to be amplified on a separate sheet and this documents should be referenced on the form..
b)
Achievement against Target
Were the target / expectations for the period under review achieved? Comments and reasons for the success or failure should be given at the end of the review quarter period.
59
c)
Target for the next quarter
At the beginnings of the quarter the target should be decided in Section –1. The aim is to achieve sustainable improvement in the subordinate’s performance. Enter the date by which the target should be achieved.
d)
Overall View Of Performance
This is the Appraisee/manager’s view of the overall performance. Assessment must be made on the overall rating listed above and in terms of the trend in performance. Section – 2 : Annual Appraisal Form To the filled up by the appraisee at the end of the annual review year. Section – 3 : Potential And Qualitative Assessment The objective is to provide an opportunity to the employee and the manager to discuss the strengths that the individual brings to the job and examine the limitations, which may require attention. The aim is to improve performance and development of the individual.
Section – 4 : Overall Performance / Potential
Assessment
60
Space for other comments by the manager (if required for any issues with regard to constraints to effective performance and / or supporting actions to achieve target).
a) Ratings / Final Recommendation Rating has to be given by the Regional Manager / General Manager / Functional Head after a through appraisal of the performance of the employee and in accordance with the parameters given. Mention if any promotion / salary discrepancy / rewards / movement is recommended.
b)
Signature
The managers and employees should sign the form at the end of the discussion acknowledging that the objectives of the appraisal have been achieved and emphasizing a joint commitment to implement and actions agreed upon. Signatures are to confirm that the form has been read and the key points have been noted. Section- 5 : Assessment For Development And
Growth Training for improvement and career development the training plan for the employee for the coming year should be discussed. The training identification form has to be filled and returned to the HR department. In the month of the April for the preparation of the training calendar for the forth coming year.
61
The manager should return the complete field form within ten days hence from the completion of the Annual Review period to the HRD Dept. in order to attain consistency of the appraisal standards and relevant follow – up action.
62
RESEARCH METHODOLOGY
Research Design In general terms research methodology is the process of carrying out research in a formalized and scientific way. It is one manner in which one proceeds with his research design adopted. The research done is exploratory and analytical in nature. The major emphasis in studies was on discovery of new ideas and insights. Research is done as•
Firstly to understand the concept of performance management.
•
What is the area of performance management?
•
How it is being implemented in HCL?
•
What is the assessment process of performance management?
•
Did questionnaire survey with the sample size of 30.It was conducted for three main departments-Sales, Support and Service?
•
Did analysis and prepared Column charts according to the questionnaire survey response?
63
The assessment is then done to bring out what is the process being
followed
in
HCL Infosystems
Ltd.
regarding
performance management.
64
Data Collection Method a. Secondary Data - It refers to the data that has already been collected, the secondary data, which has been used to carry out this study, are as follows: * Performance assessment and development plan manual. * Company’s Internet site (www.hcl.in) * Other relevant study materials and websites.
evidence, in the form of a hypothesis test, indicates otherwise — that is, when
researcher has a certain degree of
confidence, usually 95% to 99%, that the data does not support the null hypothesis. It is possible for an experiment to fail to reject the null hypothesis. H0 = the null hypothesis
Assumption: The Performance Management System in HCL Infosystems is not effective.
65
Analysis of PMS – Processes & Components Planning In an effective organization, work is planned in advance. This includes setting performance expectation and goals for individual in order to channel effort towards achieving the organizational objectives. Involvinng employee in planning process is essential to their understanding of the goals of the organization, what needs to be done, why it needs to be done, and expectation of accomplishing the goals.
2.9 2.8 2.7 Score
2.89
2.6 2.5 2.4
2.83 Series1
2.61 2.47
2.3 2.2
Overall
Sales
Service
Support
Function
The PMS in terms of planning in HCL fairs around average, where they need to put planning system in a very scientific way. They need to design the entire planning session taking into consideration the aspiration and need of the people whose performance needs to be planned. 66
Monitoring Designing
effective
feedback
into
a
performance
management programme will improve individual and team performance and will make your organization more effective. With effective feedback process, employees can see their progress and that motivates them to reach their performance goals effectively.
3.1 3 2.9 2.8 Score 2.7
3.02
2.6 2.5
Series1 2.54
2.4 2.3
2.95
2.93
Overall
Sales
Service
Support
Function
67
The PMS of HCL stand in between for monitoring, where they need to develop a feedback channel into the system, which will capture the feedback in holistic way and must be part of organizational culture.
Developing Employees Providing
employees
with
training
and
development
opportunities encourages the good performance, strengthen job related skills and competencies , and help employee keep up with changes in the work place.
2 1.8 1.6 1.4 1.2 Score 1 0.8 0.6 0.4 0.2 0
1.84
1.52
1.37
Service
Support
1.53
Overall
Sales
Series1
Function
68
The Employee development in HCL is fairly better, where the feedback from PMS is implemented by the way of training and development. Where the organization equips people with the skill which will be required in future.
Rating Within the context of formal appraisal performance requirement, rating means evaluating the employee performance against the element and standard in an employee performance appraisal plan and assigning a rating of record.
3.5 3 2.5 Score
2 1.5
2.99
2.56
3.00
3.25 Series1
1 0.5 0
Overall
Sales
Service
Support
Function
69
The rating of Performance appraisal system in HCL is satisfactory , ratings are more objective for sales , which people in service and support don’t view as more subjective.
70
Action Based Performance A Basic principle of effective management is that all behavior is controlled by its consequences. Those consequences should be both formal and informal and both positive and negative. Positive consequences include rewards and recognition.promotion.Negative consequences
means
may
include
counseling,
reassigning, removing or downgrading.
Score
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0
1.78
1.97 1.30
Overall
Sales
Service
1.64
Series1
Support
Function
The PMS in HCL fairs in terms of action based performance. HCL administers positive and negative consequences with apt.
71
Analysis If we look at the following graph, which measures the effectiveness of PMS in HCL, we find out that it is quite effective and are continually achieving the purpose of enhanced performance.
Effectiveness Sign of a good system is that, it achieves what it has been designed to achieve. The principle of execution achieves the end with best means and delivers the best result.
3 2.5 2 Score
1.5 1
2.57 1.82
1.64
Service
Support
1.61
Series1
0.5 0
Overall
Sales
Function
The effectiveness score of HCL is fairly high where the employees seem to be happy with current PMS
72
system .HCL need to work for sales, where they need to design the new PMS system. The PMS of HCL is very effective on action based performance and developing employees, which clearly shows that as an organization HCL is highly progressive organization which continually develop people and provides negative and positive feedback. While, it need to work in the area of planning, monitoring and rating , where they have to get into more systematic and have a separate session on planning , mid year review , and need to teach appraiser how to provide rating objectively. They need to plan and devise KRA sessions for each employee by taking an objective of getting all the KRA in Month , which need to discussed jointly and must be agreed between the Appraiser and Appraisee
73
RECOMMENDATIONS Recommendations
1. Though the employees are free in all respects, there should be more Employee Empowerment. 2. Employees should be encouraged to do work creatively and innovate to improve the growth rate of organizations. 3. While posting employee in different departments their personal choices should also be taken into consideration. 4. Executives must be given jobs where they are creative rather than following orders of the boss and obeying them willingly. 5. The career growth of employees should be planned on the long-term basis.
74
6. The (candidates) not considered for promotion, should be informed about their weaknesses so that they can work on it. 7. Separate session on planning the KRA should be taken up and must be discussed and signed jointly between the appraiser and the appraisee. 8. HCL should introduce mid year review into the system and must rate the employee and provide them with necessary training and development.
CONCLUSION
HCL Infosystems Ltd. though seems to be an open organization but has a conservative approach towards its performance management policies. There are many worker policies provided for them. Besides this, their policies are quiet rigid. There is no proper formation of grievance cell. Only basic amenities are being provided to workers. Thus the strengths and weaknesses of the organization can be listed below.
Strengths •
High concern for excellence in performance.
•
Continuous development of workforce.
•
No place for displacing personnel power. 75
•
A strong desire for making an impact on others for the well being of the organization.
•
A good teamwork.
•
A desire to change adverse situations.
Weaknesses •
Under utilization of decision-making power.
•
Rigid hierarchy level.
BIBLIOGRAPHY
Books •
Organizational behavior - Robbins, Stephen P
•
Personnel Management and Human Relations Venkata Ratnam, C S and Srivastava, B K
•
Human Resource Management - Ashwathappa, K
•
Human Resource Management - Rao, V S P
Web sites •
www.google.com
•
www.hrmguide.net
•
www.managementscience.org
76
•
www.londonexternal.ac.uk
•
www.hr.com
•
www.wikipedia.com
APPENDIX 1 Performance Assistance & Development Plan Important Nothing hurts more then the felling of the employee that his/her performance is not evaluated properly. The whole exercise would be futile if the appraisals are not done objectively based on actual performance during the assessment period. Scant regard to this exercise may denotative the willing and committed employees and rated their growth and development in the organization.
Name:
Ec No:
77
Grade:
Date of joining:
Designation:
Department:
Region: Last Change of grade in (mm/yy): Personal & Educational qualification (with Year and Institute): 1. 2. 3. Appraisal period in (mm/yy) from
to
Appraisal Record (To be filled by HRD)
Quarter 1. 2. 3. 4. Annual
Period
Name of the Appraisal
Rating
78
Performance Assistance & Development Plan
Section – 1 Quarterly self appraisal form Goal setting (To be filled after discussing with your manager. In case you have had change in the assignment, or manager, have the figure attested by your former manager wherever possible.) Name of Appraisee : EC. No.: Appraisal Period : QTR – (JAS/OND/JFM/AMJ) Tick whichever Qtr is applicable KRA’s/Assignments
Target for the QTR
Achievements
Rating
79
Guide for Achievement Rating (1) – Outstanding, (2) – Very Good, (3) – Good, (4) – Not up to the Expectation Performance Assistance & Development Plan I.
Specify one achievement which is beyond target / expectations during the quarter and reason for that achievement.
In case of shortfalls (if any), list the assistance/help you require to remove the same in the next Quarter.
If you are working in a team list down your team members.
80
Overall performance rating during the Quarter: (To be filled by Appraise) Appraiser’s Rating Guide for performance Rating (1) – Outstanding,
(2) – Very Good,
(3) – Good,
(4) – Not up to the Expectation
(3) – Good,
(4) – Not upto the Expectation
(To be filled by Appraise) Appraiser’s Rating Guide for performance Rating (1) – Outstanding,
(2) – Very Good,
Signature of the Appraise_____________
Signature of the
Appraiser______________ Date :
81
Performance Assistance & Development Plan Section – 2 Annual appraisal form Name of Appraisee: ____________________________ Ec. No.: ___________________ Appraisal
Period
From:
__________________To:
______________________________ Self-Appraisal: 1. Does your role fully utilize your knowledge skills? Qualitatively
Qualitatively
2. What additional responsibilities would you like to handle?
3. List significant educational attainments during the period under review. _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________
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4. List if you have undergone any training during this period. _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________ 5. List the location you don’t mind moving to. a.)_________________________b)__________________c). ________________
6. List three major issues which are bothering you. _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________ 7. List there major factors you are proud of working for the organization: _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________ Signature of the Appraisee _______________________ Date:
Performance Assistance & Development Plan SECTION
–
3
POTENTIAL
AND
QUALITIVE
ASSESSMENT
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(To filled by the Appraiser/Manger)
S. No.
Qualities/Areas
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Quality of Work Cost Saving Assist Others Creative Thinking Team Leader/Team player Independent Working Dependability Internal Customers Satisfaction Farsightedness Analytical/Logical Approach Interaction with seniors/cross function Problem Solving Capability Communication Professional/Technical knowledge
15.
Behavior/Attitude
Rating
Guide for Rating (1) Outstanding, (2) Very good, (3) Good, (4) Not up to the expectation 2. List specific strengths/ areas to be focused for individual’s development. STRENGTHS
AREAS OF DEVELOPMENT
3. What are the other areas where individual’s potential can be explored?
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Performance Assistance & Development Plan
OVERALL
PERFORMANCE/
POTENTIAL
ASSESSEMENT Comments by immediate manager
Signature of the Appraise_________________ Signature of the Appraiser___________ Date: (This part not to be discussed with the employee) Rating by Regional Manager/General Manager/Functional Head Rating: 25%
Top 25%
Next 45%
Next
Bottom 5%
If employee is rated in top 25% then please specify the exception achievements during the appraisal period.
(Authorized Signatory)
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Overall view of performance Trend Declining
Stable
Improving
(Please tick whichever is applicable) Final Recommended with respect to (If any): 1
Promotion:
2
Salary Discrepancy:
3
Exceptional reward:
4
Movement:
New Structure (To be filled by HRD) Confirmation/probation/increment
w.e.f.
:_____________________ Compensation
level/basic/designation:
________________________
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Performance Assistance & Development Plan
SECTION-5 ASSESSEMENT FOR DEVELOPMENT AND GROWTH (Identification of training and Development Need .To be sent to HRD in the first week of April) (For the use of HRD) NAME: EC.NO. DEPARTMET: GRADE: DESIGNATION: LOCATION:
Training History (Information on the Soft Skill/Technical Training undertaken by the Appraise in the previous years) Courses/training underwent 1. 2. 3. 4.
Effectiveness/impact on the appraiser’s performance
Training Needs Identification (Specify on the type of Soft Skills like Communication/ Presentation skills, supervisory Development, selling skills, Motivation & team building, attitudinal skills and Technical Training you will like the appraise to under to order To improve his/ her performance on the job to meet future needs) 1. 2. 3.
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5. 6. Signature of the appraise__________________ Signature of the appraiser___________ Date:
Date:
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