UNIT IV: Performance & Wage Management

P E R F O R M A N C E M A N A G E M E N T

JOB EVALUATION COMPENSATION AND REWARD SYSTEM

Prof. Lata Singh

Tuesday, April 03, 2012

Performance Management
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Opening case

Introduction

Prof. Lata Singh

Tuesday, April 03, 2012

Open Discussion
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PM- What do you know?

Why PM?
When PM? What it requires?

What it includes?
How it Works Difference between PA & PM

Prof. Lata Singh

Tuesday, April 03, 2012

Opening Case: Step up learning school

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Educational organization, 600+ employees at five

branches in Mumbai. Mr. Oberoy is HR Manager, Mr. Mukherjee is Asst. HR manager Traditional method of performance appraisal i.e. confidential reports Employees are unhappy with A-HR manager. Had a fear of spoiling of career. Finally they approached to HR. You as a HR- contribution?

Prof. Lata Singh

Tuesday, April 03, 2012

What it includes:
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1.

2.
3. 4.

5.
6. 7.

8.
9.

Performance Benchmarking Performance Indicators Performance requirements Performance planning Performance policy Performance Agreement Performance Improvement Plans Performance reward & Award mechanism Performance appraisal system
Tuesday, April 03, 2012

Prof. Lata Singh

PMS is:
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Planning
Analysis Development

Prof. Lata Singh

Tuesday, April 03, 2012

It includes: 7 steps
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Identifying key performance areas

Setting Goal for performance in KPA

Initiating self appraisal by appraise Carrying out performance analysis

Conducting joint review of performance, followed by

feedback & counseling Identifying T&D needs Final rating by competent superior followed by rewards & punishments
Prof. Lata Singh

Tuesday, April 03, 2012

Performance Appraisal Process:

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Objectives of Performance appraisal

Establish job expectations

Design an appraisal program Appraise performance

Performance review
Use Appraisal Data for appropriate purpose

Prof. Lata Singh

Tuesday, April 03, 2012

Various methods of PA:

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Rating scale

Checklist
Forced choice method forced distribution method Critical incident method Annual confidential reports Essay method New techniques- MBO Balance Score card Competency mapping
Prof. Lata Singh

Tuesday, April 03, 2012

Examples: IOCL
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E-PMS

Setting KPA + Setting targets = Rewards

Productivity incentive scheme 2500/ ceiling Individual rewards- no cash incentives

Prof. Lata Singh

Tuesday, April 03, 2012

Examples: Dr. reddys

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Defining kRA & setting goal for the year.

Mid term review

Appraising the performance Quarterly review- with L+1

-L
-L+1 = Against each goal. Behaviour assessment &

feedback -L+2 = BA + comments + overall asses. Self assesment-+ goal assessment

Prof. Lata Singh

Tuesday, April 03, 2012

12

Exceptional contributor

Significant contributor
Reasonable contributor Partial contributor

No contribution
- Final feedback

Prof. Lata Singh

Tuesday, April 03, 2012

Example: NTPC
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PACE

Prof. Lata Singh

Tuesday, April 03, 2012

Example: Phillips
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Problem Children

stars

Planned Separation
Prof. Lata Singh

Solid Citizens

Tuesday, April 03, 2012

Example: S.B.I.
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PA is optimization of human resources through

development of employees SW-OT analysis Valid data for decision making To develop an orga. Culture of mutuality, openness, Trust & collaboration. - Jan. to Dec

Prof. Lata Singh

Tuesday, April 03, 2012

How it works?
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Beginning of the year KPA two copies of settlement for m During the year, process of performance, under settled objectives

will be informally discussed. In the month of Jan. appraisee will appraise his performance in the formats Actual performance against each settled objective + outside KPAs + factors facilitated & hindered the employees performance to the appraiser (end of Jan.) review discussion- reporting officer- comments record the developmental & training needs Brief summary recorded & signed by both Reviewing officer recommend to the authorities Records are all with appraisee to keep it for at least 3 years

Prof. Lata Singh

Tuesday, April 03, 2012

Conclusions about PA in India

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Follow trait based confidential reports rather than

task based Dis-satisfaction with the formats of PA- (managers) Areas of dissatisfaction are as follows: High subjectivity in appraisal -Lack of correlation with job related factors -Dont have an opportunity to project his performance -Instrument of controlling & monitoring the behaviors Do not have open system Some experiments are going on
Prof. Lata Singh

Tuesday, April 03, 2012