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INTRODUCTION STATEMENT OF THE PROBLEM Employees want direction, freedom to get their work done and encouragement. They don’t want their managers to control them. In fact they expect support from the management on continuous basis through coaching and counseling and by providing the facilities and resources necessary to meet their expectations. The biggest danger faced by any organization today is designing or redesignin redesigning g the performance performance managemen managementt system to produce produce lengthy lengthy and over elaborate forms, the only effect of which will be to convince appraisee that, this is a bure bureau aucr crat atic ic burd burden en impo impose sed d upon upon them them by top top mana manage gem ment ent or the the HR department or both. In most of the organizations the review is partly a stock-taking exercise answering the questions “where have we got to?” and “how did we get here?” But there is much more to it than that .It is not just a historical exercise, dwelling on the past and conducting post mortems. The true purpose of the review is to look forward to what needs to be done by people to achieve the overall purpose of their jobs, to meet new challenges, to make even better use of their skills, knowledge and abilities, competencies in their career and increase their employability, within and outside the organization.
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Why is performance management relevant to operations personnel as well as to the executive team? It is because operating managers and employee teams toil daily, making choices involving natural tension, conflicts and trade-offs within their organization. An example is how to improve customer service levels and costsaving process efficiencies while restricted to fixed contract-like budget constraints and profit targets. The classic conflict in product companies is that the sales force wants lots of inventories to prevent missed sales from stock-out shortages, whereas the production folks want low in-process and finished goods inventories so they can apply the more proven just-in-time production methods rather than continue with with the the less less-ef -effe fect ctiv ivee batc batchh-an andd-qu queu euee prod produc ucti tion on meth method odss of the the 1980 1980s. s. Managers Managers acknowled acknowledge ge that the impact impact from their decisions decisions may adversely adversely affect their coworkers elsewhere in their organization - but they don't know who, where and and to what what exte extent nt.. Perfo Performa rmanc ncee mana manage geme ment nt resol resolve vess the the unce uncerta rtain inty ty of estimating impacts and predicting outcomes. Performance management study is a strategic and integrated approach for delivering sustained success to the organization by improving the performance of the the peop people le who who work work and and there there by deve develo lopi ping ng the the capa capabi bili liti ties es of team teamss and and indivi individua duall contrib contributo utors. rs. Thus Thus perform performanc ancee manage managemen mentt study study is crucia cruciall to the present age organization. The above factors prompted investigator to take up this topic for the project study.
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OBJECTIVES The investigator has framed the following objectives to conduct this study in an organized manner: •
To know how organization is approaching and managing the task of performance management processes.
•
To identify and explore the new realities of performance management in the organizational practice.
•
To know know how how organ rganiz izat atio ion, n, its its empl employ oyee ees, s, team teams, s, team team lead leader erss and and managers do (and could do) better to manage their performance in order to achieve success.
•
To analyze the attitude of both appraisers and appraisees about performance management system.
•
To create create an understanding understanding about the role of performance performance management management and its relationship with other management activities.
•
To communicate what is expected of the employees and how best this can be achi achiev eved ed by allo allowi wing ng empl employ oyee eess to deve develo lop p them themse selv lves es and and thei their r contribution to the organization.
•
To bring out the performance management practices of the organization.
•
To suggest on the development of performance process, that will help in realizing organizational objectives.
•
To suggest ways and means if necessary, to make performance management effective.
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ABOUT THE SURVEY The survey was carried out in the early winter of 2004. The main aim was to establish establish current practices in performanc performancee managemen managementt in The Himalaya Drug Comp Compan any y and and as a cons conseq eque uenc nce, e, the the surv survey ey ques questi tion onna nair iree was was stru struct ctur ured ed to ascert ascertain ain firstl firstly, y, what what respon responden dents ts unders understoo tood d to be the meanin meaning g of the term term “performance management” and secondly, what activities were carried out in their organizatio organization n under under that umbrella heading. The questionna questionnaire ire also attempted attempted to gather data to enable the use of various tools of performance management to be tested tested agains againstt a number number of measu measures res of organi organizat zation ional al effect effective ivenes nesss such such as quality, innovation and efficiency. Further the aim of the survey was also to identify the extent to which performance
management
was
integrated
with
other
people-management
processes, such as those concerned with career management, development and reward.
METHODOLOGY ADOPTED The methodology adopted is to first study the existing systems in place and meet meet people people from differ different ent depart departmen ments ts to gather gather feedba feedback ck about about the existi existing ng policies and practices. The day-to-day functioning of the organization was obs observ erved clos closel ely y to iden identi tify fy the the pro proble blem areas reas so as to help help in mak making ing recommendations and developing the policies. Frequent discussions were also held with the H.R.manager and executives and time-to-time clarification were seeked. To assist assist in captur capturing ing the curren currentt polici policies es and practi practices ces accura accuratel tely, y, the investigator joined the company as a management trainee for a period of one
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month during which she has been sensitive to the happenings in the working environment. The questionnaire was distributed to a total of 35 personnel in the Company. Two sets of questionnaire were designed, one set (15 copies) to know the the atti attitu tude de of appr apprai aise serr and and anot anothe herr set set (20 (20 copi copies es)) to know know the the atti attitu tude de of appraisee. Various books of records of the organization and other relevant books were looked into to understand the policies and procedures in performance management system. Thus the investigator has followed the questionnaire method here. The discussion and observation techniques were also partly employed in research. The attitude survey was of course conducted in a small number and the views expressed by the participants cannot assume to be the representative. But the impression from this limited sample is certainly that “the people involved, did not think that performance performance management management was a dishonest dishonest annual ritual”. ritual”. Many people people in the organization believe that attending appraisal is worthwhile.
DATA COLLECTION The necessary input of information for analysis was from both primary as well as secondary data. Discussions with managerial personnel and also with some staf stafff of HR depa departm rtmen entt were were made made prim primari arily ly.. A feed feedba back ck was was draw drawn n from from distributing two sets of questionnaire to the respondents. Secondary data in the form of documents, books of records, files, company’s website etc were made available for compilation. Also some periodicals, text, published and unpublished records and newspapers from library and internet site were referred wherever additional data was required.
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NATURE AND SCOPE OF THE STUDY The study was done for The Himalaya Drug Company. It is a leading and outstanding herbal products’ manufacturing company. The purview of the topic is restricted to only one unit and hence the study is micro in nature. However it provides detail coverage of the vast and complex Performance management policies and practices in the company. It reflects the impact of polices and traces the need for change in the policy and practices that are currently required. In this way, an empirical study on the recent policies has been made and a comprehensive view of the Performance Management System Sy stem is developed.
A very practical approach to the study has facilitated in having a clear picture of the actual performance management practices in the organization. A diag diagno nosi siss of the the conc concre rete te pro problem blemss is made ade to app apprai raise the worki orkin ng of H.R.department. This study is made for the sole purpose of academic study only. The questionnaires were distributed only to executives. Hence dissertation explains only executives’ views on performance management.
Perform Performanc ancee manage managemen mentt covers covers wider wider area area and due to time time constra constraint int performance appraisal, career development, coaching, monitoring, follow-up action, potential appraisal and training and development aspects were discussed in the dissertation.
STATISTICAL ANALYSIS In order to give a quantitative touch to the data collected percentages have been used to analyze the questionnaires and to draw meaningful conclusions on the questions asked.
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LIMITATIONS OF THE STUDY As this is a study undertaken to fulfill the academic requirements it is bound to have certain limitations. Most prominent among these are: •
This project confined only to “The Performance Appraisal” aspect of the performance management system.
•
Sample size has been taken up only from the executive level and from the divi divisi sion onal al head heads. s. Henc Hencee the the surv survey ey is limi limite ted d only only to exec execut utiv ivee and and divisional head level.
•
Direct interaction with employees in many divisions was restricted. So the needed liberty was not given to choose respondents.
•
One month duration is very small to work on the performance management system topic. If time could have been extended more data could have been collected.
•
Compar Comparati ative ve study study with with other other organi organizat zation ionss in the area area of perfor performan mance ce management system cannot be done due to the time constraint.
Owing to these, the study is not extensive as it should be. However the investigator has tried her best to present the data in an effective manner.
THE LAYOUT OF THE PROJECT At this point, investigator has given a road map to enable the readers to proceed through the report. This dissertation has been broken into five chapters to present a vivid picture and ensure clarity. A chronological list of sub titles of these along with a brief summary is given below.
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Chapte Chapterr – I:
INTROD INTRODUCT UCTION ION
This This chap chapte terr deal dealss with with stat statem emen entt of the the prob proble lem, m, obje object ctiv ives es of the the stud study, y, methodology adopted, sources of data, statistical analysis, nature and scope of the study and also the limitations of the project work.
Chapter – II:
THE CONCEPTUAL FRAMEWORK
In this chapter an in depth study of the performance management concepts and practices in the organizations organizations and its relevance in the present present scenario is presented.
Chapter – III:
ABOUT THE ORGANISATION
This This chap chapte terr cove covers rs Orga Organi niza zati tion onal al hist histor ory, y, its its obje object ctiv ives es thro throug ugh h miss missio ion n statement, its departments, product ranges, organizational charts and performance management background.
Chapter – IV:
EVALUATION OF TH THE DAT DATA
In this chapter an analysis of the questionnaires completed by respondents is made through tables and diagrams. An assessment of the impact of the performance management derived from an analysis of completed questionnaires was also made here.
Chapter – V: V:
MAJOR FIN FIND DING INGS, SU SUGGESTIO STION NS & CO CONCLUSIO SION
This is the concluding chapter which summarizes the findings and suggestions obtained through the data evaluation.
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THE CONCEPTUAL FRAMEWORK Performance management is about learning at the organizational, team and individual levels. For individuals, learning is concerned with self-knowledge, understanding and development and what needs to be known and how things can best be done to improve effectiveness and potential. But individual and team team learni learning ng takes takes place place within within the contex contextt of the organiza organizatio tion n and the concept of the learning organization underpins much of the developmental aspects of performance management. Performance management is a natural process of management, not a system or technique. It concerns everyone in the business –not just managers. It rejec rejects ts the the cult cultur ural al assu assump mpti tion on that that only only mana manage gers rs are acco accoun unta tabl blee for for the the performance of their teams and replaces it with the belief that responsibility is shared between managers and team members. It covers below stated areas. •
Performance Performance Appraisal
•
Feed back
•
Counseling
•
Communication
•
Career development development
•
Coaching
•
Monitoring
•
Follow- up action
•
Potential appraisal
•
Training and development development
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Performance Appraisal
Performance appraisal or merit rating is one of the systematic evaluations of the individual with respect to his performance on the job and his potential for development. It is concerned with determining the difference among the employees working in the organization. The term merit rating is used in modern management terminology. In past the emphasis was on evaluating the worth as a person .The emphasis was on the evaluation of personnel traits as initiative, dependability, personality etc. Today the emphasis is on measuring the results of the employees’ performance. Feedback
Giving feedback based on fact, not on subjective judgments, is an important part of a performance and development discussion. In this respect at least performance meetings provide information, to be presented (feedback) to people on their performance, which helps them to understand how well they have been doing and how effective that behavior has been. The aim is to promote this understanding so that appropriate action can be taken. taken. This This may be correc correctiv tivee action action,, where where the feedba feedback ck has indica indicated ted that that something has gone wrong or more positive action may be taken to make the best use of the opportunities the feedback has revealed. In the latter case, feedback acts as a reinforcement and positive feedback can be a powerful motivator, because it is a recognition of achievement
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Counseling
Counseling is the central for the management and development of people. Managers frequently engage in some activity during their normal working life that could be termed as counseling. It is therefore a natural component of managing everyday activity that can arise from immediate feedback during a performance and development review. The most important aim is to encourage people to accept much of the responsibility for their own performance and development. What people feel and find out for them, with some guidance as necessary, is likely to make much more impact on their behavior than anything handed down to them by their manager.
Communication
Communication is a natural instinct of all living creatures. It is the basic need of all human beings. It plays all the more significant role in the present day organ organiz izat atio ions ns whic which h are comp comple lex, x, dyna dynami micc and and soci social ally ly orie orient nted ed.. Effec Effecti tive ve communication keeps the organization vibrant, vital and smooth sailing. In India, in almost all the enterprises in the public sector and in the private sector, only a secondary place has been given to communication. It was found that very very few few upwa upward rd comm commun unic icat atio ions ns were were made made on vita vitall matt matter erss as poor poor work work performance, unfavorable reactions to others, unfavorable opinions and attitudes of workers and breach of procedure in doing a job.
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Career development development
It has usually come to mean the progress of an individual in a field of work throughout the employable years of his life. Sometimes it means devotion to a speciality.The term has also been used to mean a series of employment that are rela relate ted d to each each othe otherr and and are are of incr increa easi sing ng impo import rtan ance ce.. It carr carrie iess with with it connotations of some degree of success. The recent trend in the organization is to have a career system for the employees in which young persons are carefully selected and work at various levels in the organization throughout their working life. This will be possible only if the career career system system provid provides es satisf satisfyin ying g opport opportuni unitie tiess of advanc advanceme ement nt to the employees.
Coaching
Coaching is a person to person technique designed to develop individual knowledge/skills and attitudes. It is most effective if it takes place informally as a part of the normal process of management management or team leadership. It helps people to become aware of how well they are doing, where they need to improve and what they need to learn. It makes managers and individuals to use whatever situations arise as learning opportunities. It guides how progress should be monitored and reviewed. Monitoring
Monitoring the employees’ performance is significant. Through monitoring immediate immediate actions can be taken to correct the deviation from the set standards. standards. In
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performance management, continuous monitoring backed by employee guidance and feedback on the performance occupies an important place. Follow - up action
Thro Throug ugh h perf perfor orma manc ncee appr apprai aisa sall an empl employ oyee ee’s ’s perf perfor orma manc ncee can can be evaluated. Once they get the ranking next work of the HR department is to deal with the follow up actions. This can be taken in the following forms: Employee with excellent ranking
-Career development and guidance
Employee Employee with with averag averagee performanc performancee -Training -Training and and develo developmen pmentt Empl Employ oyee ee with with poor poor perf perfor orm mance ance
-Cou -Couns nsel elin ing, g, ment mentor orin ing, g, coac coachi hing ng,, trai traini ning ng and development etc
Potential appraisal
Potential appraisal mainly helps in identifying the areas of strengths and weaknesses. With its help proper employee development planning can be framed and implemented. Training and development
After the employee has been selected, placed and inducted, he must be trained. Training is the act of increasing the knowledge and skill of a worker for doing a certain job. Individuals should develop and progress simultaneously for their survival and attainment of mutual goals. Training is the organized procedure by which people acquire knowledge or skill for a definite purpose. No business has a choice of whether to train or not, but the only choice is the method of training. At present training of workers is necessary because many jobs have assumed a highly technological character and under automation we require highly skilled operatives.
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Development is the systematic process of growth and development by which empl employ oyee eess can can deve develo lop p thei theirr abil abilit itie iess to perfo perform. rm. It is the the resu result lt of not not only only participation in formal courses of instruction but also of actual job experience. It is concer concerned ned with with improv improving ing the perfor performa mance nce of the employ employees ees by giving giving them them opportunities for growth and development.
SCOPE OF THE PERFORMANCE MANAGEMENT PROCESSES For the organization
1. Align Align corporate, corporate, individua individuall and team object objectives ives 2. Impro Improve ve perfo performa rmanc ncee 3. Moti Motiva vate te emp emplo loye yees es 4. Incr Increa ease se comm commitm itmen entt 5. Unde Underp rpin in cor coree valu values es 6. Improve Improve trainin training g and and develop development ment processes processes 7. Help to develo develop p a learning learning organizati organization on 8. Enla Enlarge rge the the ski skill ll bas basee 9. Provide Provide for continuo continuous us improvem improvement ent and develo development pment 10.Provide the basis for career –planning 11.Help to retain skilled employees 12.Support total quality and customer service ser vice initiatives 13.Support culture-change programs For managers
1. Provide the basis for clarifying performance and behavior expectations 2. Afford Afford a frame work for for reviewing reviewing performanc performancee and competenc competencee levels
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3. Improve Improve team team and individua individuall perform performance ance 4. Support Support leadership, leadership, motiva motivating ting and teambuil teambuilding ding processe processess 5. Provide Provide the basis for helping helping underperform underperformer er 6. May be be used used to develop develop or or coach coach individ individuals uals 7. Offer the the opportunit opportunity y to spend structu structured red quality quality time time with teams teams and team members 8. Provide Provide the basis basis for providing providing non-fin non-financi ancial al rewards rewards to staff For individuals
1. Greater Greater clarity clarity of roles roles and and object objectives ives 2. Encouragem Encouragement ent and and suppor supportt to perform perform well well 3. The provision provision of of guidance guidance and help help in developin developing g abilities abilities and and performance 4. Opportunit Opportunities ies to spend spend ‘quality ‘quality time’ time’ with their their managers managers 5. Opportunit Opportunities ies to contribute contribute to the the formulation formulation of objectiv objectives es and plans plans and to improvements in the way work is managed and carried out. This concept is nebulous unless backed up with an understanding of the following processes • • • • •
ORGANIZATIONAL LEARNING SINGLE AND DOUBLE-LOOP LEARNING INDIVIDUAL LEARNING SELF MANAGED OR SELF-DIRECTED LEARNING AND CONTINUOUS DEVELOPMENT
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1. ORGANIZATIONAL LEARNING Organizations can be described (Harrison 1992) as continuous lear learni nin ng syst ystems. ems. The The cont contri rib buti ution of
perfo erform rman ancce
manag anagem emeent to the the
development of organizations and people can be enhanced in the light of a better understanding of how organizations and people learn. This understanding will also help to make practical use of the learning organizational concept. Organizational learning has been defined by Marsick (1994, quoted in Harrison 1997) as a process of: “Co-ordinated systems change, with mechanisms built in for individuals and groups to access, build and use organizational memory, structure and culture to develop long-term organizational capacity”.
“HARRISON (1997) (1997) ‘S FIVE PRINCIPLES” PRINCIPLES” FOR ORGANIZATIONAL ORGANIZATIONAL LEARNING:
1. Need for for a powerful powerful and cohering cohering vision vision of the the organizati organization on is to be communicated and maintained across the workforce in order to promote awareness of the need for strategic thinking at all levels. 2. The need need to develop develop strategy strategy in the the context context of a vision vision that is not not only powerful but also open-ended open-ended and unambiguous unambiguous .This will encourage a search for a wide, rather r ather than narrow, range of strategic options, will promote lateral thinking and will orient the knowledge-creating knowledge-creating activities activities of Employees. 3. Within Within the framework framework of vision vision and and goals, goals, frequent frequent dialogue, dialogue, communication and conversations are major facilitators of organizational learning. 4. It is essential essential continuou continuously sly to challenge challenge people people to re-examine re-examine what what they take
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for granted. 5. It is essential to develop a conducive learning and innovation climate .
These principles could be applied equally well to performance management, as one of the processes that can help to promote organizational learning. This will be the case if the focus is on strategy, vision, communication and challenge. If it is understood as an important concept, then the aim of performance management is to help in in the development of a learning learning culture.
2. SINGLE- LOOP AND DOUBLE –LOOP LEARNING Argyris (1993) suggests that learning occurs under two conditions: •
When an organization achieves what is intended and
•
When a mismatch between intentions and outcomes is identified and corrected.
But organizations do not perform the actions that produce the learning. It is individual members of the organization who behave in ways that lead to it, although organizations can create conditions that facilitate such learning.
Argyris distinguishes between single-loop and double loop learning. Single-loop learning organizations define the “governing variables”i.e. what they expect to achieve in terms of targets and standards. They then monitor and review achievements and take corrective action as necessary, thus completing the loop. Double Double-lo -loop op learni learning ng occurs occurs when when the monito monitorin ring g proces processs initia initiates tes action action to redef redefin inee the the “gov “gover erni ning ng vari variab able les’ s’ to meet meet the the new new situ situat atio ion, n, whic which h may may be
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imposed by the external environment. The organization has learned something new about what has to be achieved in the light of changed circumstances and can then decide how this should be achieved.
SINGLE-LOOP AND DOUBLE-LOOP LEARNING Define expectations
Take action
Decide on corrective action as necessary
Monitor and review
Single-loop learning learning
Re-define expectations as necessary
Double-loop learning
3. INDIVIDUAL LEARNING Individuals learn for themselves and from other people. They learn as members of teams and by interaction with their managers, co-workers and people outside the organization. “KOLB’S FOUR STAGES” OF CONTINUOUS LEARNING CYCLE 1. CONCRETE EXPERIENCE - This can be planned or accidental
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OBSERVATION - This involves actively thinking about the 2. REFLECTIVE OBSERVATION experience and its significance Generalizing from experience and ideas CONCEPTUALIZING - Generalizing 3. ABSTRACT CONCEPTUALIZING that can be applied when w hen similar situations are encountered. Testiing the the conc concep eptts or idea ideass in new new ACTIVE EXPERIMEN EXPERIMENTATIO TATION N - Test 4. ACTIVE situations. This gives rise to a new concrete experience and the cycle begins again.
THE KOLB LEARNING CYCLE Concrete experience
Testing implications of Concepts in new situations
Observations and reflections
Formation of abstract concepts and generalizations
The key to Kolb’s model is that it is a simple description of how experience is translated into concepts, which are then used to guide individuals on how to deal with new experiences. Performance management can enhance the lear learni ning ng proce process ss by prov provid idin ing g peop people le with with oppo opportu rtuni niti ties es to refle reflect ct on thei their r experie experience nces, s, to learn learn from them and to develo develop p their their capaci capacity ty to handle handle new experiences.
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Honey and Mumford (1986) have identified four styles: 1. ACTIVITIES - Who involve themselves fully without bias in new experiences and revel in new challenges
2. REFLECTOR - Who stand back and observe new experiences form different angles-they collect data, reflect on it and then come to a conclusion.
3. THEORISTS - Who adapt and apply their observations in the form of logical theories-they tend to be perfectionists.
4. PRAGMATISTS - Who are keen to try out new ideas, approaches and concepts to see whether they work.
However, none of these four learning styles is exclusive. It is quite possible, for example, that one person could be both a reflector and a theorist and that someone else could be an activist/pragmatist or a reflector/pragmatist.
4. SELF- MANAGED LEARNING Self- managed or self-directed learning means that individuals take responsibility for satisfying their own learning needs to improve performance, to support the achievement of career aspirations or to enhance their employability, within and beyond their present organization. It can be based on processes that enable individuals to identify what need to learn by reflecting on their experience and and anal analyz yzin ing g what what they they need need to know know,, so that that they they can can perfo perform rm bett better er and and progress their careers. It has been argued by Knowles (1998) as reported by Tamkin (1995) that all individuals are naturally self-directed learners, even if they may need some help initially to get sarted.As Harrison (1997) has noted, “No new learning will occur unless there is a stimulus to activate the learning process”.
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PED PEDLE LER R (197 (1978) 8)’S ’S FOUR FOUR STAGES AGES FOR FOR SE SELF LF-- MAN MANAGE GED D LEARNING 1 . SELF-ASSESSMENT based on analysis by individuals of their work and life situations. 2. DIAGNOSIS derived from the analysis of learning needs and priorities. 3 . ACTION- PLANNING to identify objectives, helps and hindrances, resources required (including people) and timescales.
4. MONITORING MONITORI NG AND REVIEW to assess progress in achieving action plans.
Mumford (1994) suggests that self-managed learning can be carried out as follows: •
Identify the individuals’ learning styles.
•
Review how far their learning is encouraged or restricted by their learning styles.
•
Review their core learning skills of observation and reflection, analysis, creativity, decision-making and evaluation and consider how to use them more effectively.
•
Review Review the work and their experienc experiences es in which they are involved involved in terms of the kind of learning opportunities they offer.
•
Look Look for potent potential ial helpe helpers rs in the self-de self-devel velopm opment ent proces process: s: manage managers, rs, colleagues colleagues,, trainers trainers or mentors (i.e. individuals individuals other other than the manager or a trainer who provide guidance and advice).
•
Draw up learning objectives and plan of action- a personal development plan or learning contract.
•
Set aside some time each day to answer the question, “what did you learn today?”
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5. CONTINUOUS LEARNING AND DEVELOPMENT As Harrison (1997) comments: “In organizational life, everyday experience the most fundamental influence on learning. This experience consists not simply from the work that people do, but of the way they interact with others in the organization and the behavior, attitudes and values”. It follows that, when work is continuous, development can be continuous as people reflect on and learn from their experience. But this is more likely to happen if reflection and learning are encouraged and to a reasonable degree, structured within a performance and development framework. The IPM commented as follows in its code of practice on cont contin inuo uous us deve develo lopm pmen ent: t: “As “As far far as prac practi tica cabl ble, e, learn learnin ing g and and work work must must be integrated. This means that encouragement must be given to all employees to learn from from the the prob proble lems ms,, chal challe leng nges es and and succ succes esses ses inhe inheren rentt in thei theirr day-t day-too-da day y activities”. Again, the reflective, analytical and diagnostic aspects of performance management, in it contribute to continuous development. This is achieved in two ways: •
PERFORMANCE AND DEVELOPMENT REVIEWS AND
•
PERSONAL DEVELOPMENT PLANNING
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1. PERFORMANCE AND DEVELOPMENT REVIEWS AS LEARNING EVENTS Performance and development reviews, whether conducted formally or informally, can be regarded as learning events. Learning opportunities are provided before, during and after formal meetings.
PRIOR TO REVIEW 1. Individual Individualss can be encouraged encouraged to think think about their their work experie experiences nces and their futures 2. They can can be asked to to marshal marshal their thoughts thoughts about about what what they feel feel they want want to learn and the direction in which they want to develop. 3. They can can also be asked asked to think think about any any specific specific training training from which which they they believe they could benefit. benefit. This could be described as a process of reflection.
DURING THE REVIEW 1.
Individuals can present to the reviewer their views about what they have learned and what they need to learn.
2. A dialogue dialogue between between the reviewe reviewerr and the reviewee reviewee can can take place place in which which learning needs can be analyzed and a diagnosis agreed in priority areas. 3. Review Review meetings meetings may also also provide provide an opportuni opportunity ty for counseli counseling. ng.
AFTER THE REVIEW 1. Performance management goes on after the formal review. This is when
coaching by the reviewee’s manager and further counseling can take place.
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2. Learning Learning also continu continues es informally informally when when a manager asks asks an individual individual or team to do something, a discussion can take place on how it should be done and what help, in the form of guidance or training, may be required. 3. After the the event, event, an informal informal analysis analysis can take take place place of what went went well or or not so well and this can identify further learning needs.
2. PERSONAL DEVELOPMENT PLANNING Defined
Persona Personall develo developme pment nt planni planning ng is carrie carried d out by indivi individua duals ls with with guidan guidance, ce, encouragement and help from their managers as required. A personal development plan (PDP) sets out the actions, people propose to take responsibility for formulating and implementing the plan, but they may receive support from the organization and their managers in doing so. Purpose
Personal development planning aims to promote learning and to provide people with the knowledge and portfolio of transferable skills that will help to progress their careers. Focus
PDPs were most commonly focused on job or career development or some mix of both. Less frequently, the emphasis emphasis was on the whole person. person. Tamkin (1995) comment: “Personal development plans which focus solely on
skil skilll deve develo lopm pmen entt for for the the curre current nt job job whic which h will will not not be welc welcom omed ed by many many employees. Those which take a broader view of the individual and their future may
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be more effective for encouraging flexibility and have a higher impact on employees”.
Personal development planning-the overall process PDPs can be created as an outcome of a development or assessment centre. But these may make only a limited impact and most of the IES research contacts extended the planning process to all their staff or were intending to do so. Personal development planning has become a well-established feature of performance and development management. As desc descri ribe bed d by BP che four stag stagees in prep repari aring a perso ersona nall chemi mical calss, the four development plan are to: 1. Assess current position 2. Set goals 3. Plan action 4. Implement
These planning stages are in line with those proposed by Gannon (1995) 1. Analyze Analyze current current situat situation ion and and developm development ent needs. needs. 2. Set goals goals under such headin heading g as improving improving perform performance ance in the current current job, improving or acquiring skills, extending relevant knowledge, developing specified areas of competence, moving across or upwards in the organization, preparing for changes in the current role. 3. Prep Prepar aree acti action on pla plan n
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STAGES IN PREPARING A PERSONAL DEVELOPMENT PLAN Assess current position
Implement
Set goals
Plan action
IDENTIFYING DEVELOPMENT NEEDS AND WANTS Development needs and wants are identified in performance management processes by individuals on their own or working in conjunction with their managers. This will include: •
Revi Review ewin ing g
perf perfor orma manc ncee
agai agains nstt
agre agreed ed
plan planss
and and
asse assess ssin ing g
comp compet eten ence ce
requirements and the capacity of people to achieve them. •
The analysis is based on an understanding of what people do, what they have achieved, what knowledge and skills they have and what knowledge and skills they need.
•
The analysis is always related to work and capacity to carry it out effectively.
•
Individuals can make their own assessment of their personal development needs to get more satisfaction from their work, to advance their careers and to increase their employability.
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IDENTIFYING THE MEANS OF SATISFYING NEEDS Training courses may form the part of the development plan, but only a minor part; other learning activities were much more important. As Royal Mail Anglia state in their guidance notes on personal development planning:
“Development needs can be met using a wide variety of activities. Do not assume that a conventional training course is the only option. In many instances, activity more finely tuned to the specific need can be more rewarding and appropriate than a generalized training course”. The examples of development activities listed by Royal Mail Anglia include: •
Seeing what others do (best practice)
•
Project work
•
Adopting a role model (mentor)
•
Involvement in other work areas
•
Planned
use
of
internal
training
media
(interactive
video
programmes/learning library) •
Input to policy formulation
•
Increased professionalism on the job
•
Involvement in the community
•
Coaching others
•
Training courses Other learning activities, which could be mentioned but are not
on this this list, list, includ includee guided guided reading reading,, specia speciall assign assignmen ments, ts, action action learni learning ng and distance learning.
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ACTION-PLANNING The action plan sets out what needs to be done and how it will be done, under such headings headings as: •
Development needs
•
Outcomes expected (learning objectives)
•
Development activities to meet the needs
•
Responsibility for development - what individuals will do and what support they will require from their manager, the HR department or other people
•
Timing-when the learning activity is expected to start and be completed
•
Outcome -what development activities have taken place and how effective they were?
THE HONEY AND MUMFORD LEARNING CYCLE MODEL AS USED AT ICL Achievement and performance
Plan
Review
Evaluate
METHOD OF COMPLETING A PERSONAL DEVELOPMENT PLANNING •
Identify learning needs
•
Identify learning-style profile
•
Review options available
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•
Note down learning needs under the headings knowledge, skill attitude and experience (the advice is “think about what, specifically, need to know and do differently”)
•
Against each need, note down the specific action chosen, who is responsible for effecting the action and by what date
•
Ensure that personal learning plan is implemented, reviewed and updated as necessary
•
Ensure that a formal review with manager takes place at least once a year, preferably twice, to establish that all is going according to plan or to adapt the plan to meet new needs.
RESPONSIBILITY FOR PERSONAL DEVELOPMENT PLANNING •
Support the individual in his or her efforts to develop
•
Offer feedback at appropriate stages
•
Provide information on company activities and requirements
•
Help produce action plans that are practical and achievable
•
Assist in implementation
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ABOUT THE HIMALAYA DRUG COMPANY INTRODUCTION From antibiotics to cardiac medications, the pharmaceutical industry has produced many life-saving therapies. In recent years, however, drug companies are increasingly investing their resources in more lucrative lifestyle drugs like Viagra and allergy medications. But The Himalaya Drug Company situated in Bangalore focuses on developing safe, natural and innovative remedies. Because in Himalaya, the ideal healthcare system lies in the synergy between Ayurveda and Modern science. The Himalaya Drug Company in Bangalore was incorporated with a mission to excel in the strategic areas of pharmaceutical, animal health care, consumer health care and personal health care. It has established itself on the principles of inte integri grity ty and and dedi dedica cati tion on to tota totall cust custom omer er sati satisf sfac acti tion on.. With With clea clearr focu focuss on developing herbal products, it has successfully implemented several products to the existing product line.
HISTORY OF THE COMPANY Seventy-five years ago, on a visit to Burma, Himalaya’s founder Mr. .Manal saw restless elephants being fed with a root to pacify them. The plant from which this was taken is Rauwolfia Serpenitna.Fascinated by the plant’s effect on elephants, he had it scientifically evaluated. After extensive research Serpina, the world’s first anti-hypertensive drug, was launched in 1934.
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This legacy of researching nature forms the foundation of Himalaya’s operations. Himalaya makes use of modern science to create pharmaceutical-grade ayurvedic products. They have pioneered research that has converted Ayurveda’s herbal tradition into a complete range of proprietary formulations dedicated to healthy living and longevity. Today these products have found acceptance with medical fraternities which serve the health and personal care needs of consumers in over 60 countries and have been endorsed by over 250,000 doctors around the globe.
ABOUT THE FOUNDER It all began in 1930 with his mother’s pawned bangles. Young man with a very very curi curiou ouss mind mind pond ponder ered ed the the idea idea of pres presen enti ting ng herb herbal al medi medici cine ne in a contemporary form. He spent his days riding his bicycle through the forests and learning about herbs from local healers. He knew he must scientifically prove that herbal medicines do work. He also wondered how to make an herbal tablet. He was advised to add kerosene to the powdered herb to help the tablet keep its form. And he tried it too, only to quickly realize that he had been tricked! He continued his efforts efforts on his hand-operat hand-operated ed tablet-com tablet-compressi pressing ng machines. machines. At night night his shoulders shoulders would ache after struggling to manually to produce a few hundred tablets, one tablet at a time. Simple as it may sound, the reality was that in his time this had never been done. Mr. Mohammed Manal , with Rs.100 in the kitty, a bicycle and a dream, opened his first shop and began Himalaya.
LOCATION Starting off operation in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country. In 1975, the company set up an advanced manufacturing facility in Makali; Bangalore, India which today houses the corporate headquater.In 1999 company relocated its R&D facility to Bangalore.
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The manufacturing facility at Makali has the largest tablet-coating unit in the country. Over one crore tablets are punched every day.
ORGANIZATION AND MANAGEMENT The Himalaya drug company has come into existence as a family-owned partnership firm with Mr.M.Manal as founder. The day- to- day affairs are vested in the hands hands of Divisi Divisiona onall Heads Heads headed headed by Chairm Chairman. an.Thu Thus, s, the organi organizat zation ion structure comprises of the chairman Mr. Meraj Manal, vice chairman Mr. Nabeel Manal, President & CEO and Executive Director R&D .The top management also incl includ udes es the the vario various us Divi Divisi sion onal al Head Headss and and Seni Senior or Mana Manage gers rs of the the vario various us depa depart rtme ment nts. s. For For the the purp purpos osee of smoo smooth th and and effi effici cien entt admi admini nist stra rati tion on the the organi organizat zation ion has been been divide divided d into into seven seven depart departmen ments ts namely namely,, Resear Research ch and Developme Development, nt, Manufactu Manufacturing ring and Quality Quality assurance, assurance, Administra Administration, tion, Human Human Resource Management, Industrial Relations, Engineering Division, and Corporate Communication.
A FEW MILE STONE 1930 - Mr. Mohammed Manal found “The Himalaya Drug Company”. His Vision: “Put Ayurveda on par with modern medicine” 1934 - Launch of Serpina, the worlds first anti hypertensive drug derived from Rauwolfia Serpentina. Mr.M.Manal discovered it on a trip to Burma. 1950 - Dr.Roshan M. Captain, joins the company and spearheads Research and Development 1955 - Liv.52 a hepatoprotective is launched and goes on to become one of the world’s top selling drugs. 1964 - Mr. Meraj Manal, the founder’s son joins the company. 1965 - Mr.Karstein, a German pharmaceutical consultant, directs the company’s focus towards allopathic medical practitioners.
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1975 - An advanced manufacturing facility is set up in Bangalore. The facility grows to become the corporate headquarters. 1991 1991 - Th Thee com company pany’s ’s R&D R&D cent center er moves oves to Bang Bangal alor ore. e. Resear Research ch and development becomes a very important aspect of the company’s focus. 1998 - The Animal Health Product Range for commercial livestock is launched. 1999 - Ayurvedic concepts launch its Personal Healthcare Products in India. 2001 - The company adopts a new unified brand identity “Himalaya – Herbal Healthcare”. 2003 - Launch of Consumer Health Division for Chyavanaprasha, Forest honey & pure herbs.
seventy five years 2005 – Himalaya celebrates seventy
PRODUCTS Himalaya’s products can broadly be categorized into four main ranges, viz: •
Pharmaceutical
•
Personal Care
•
Well-being
•
Animal Health
PHARMACEUTICAL PHARMACEUTICAL RANGE:
The medical range of products carry the Himalayan hallmark of researching ayurveda and capturing its benefits in formulations. Using modern research
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methodology and manufacturing practice, Himalaya has made available to people all over the world, an alternate method of treatment, which has no known side effects. The medical range comprises over 35 products and is broadly classified into four categories viz: •
Children’s Health
•
Men’s Health
•
Women’s Health
•
General Health
Liv.52, Bonnison, Himcold, Mentat, Tentex Royal
Prominent among Himalaya brands is Liv.52, a liver formulation, which is also the flagship brand of the company. Every one-third of a second, one unit of Lv.52 is bought somewhere in the world. It is ranked number one in the world in the hepatoprotective-lipotropic segment and number four among all pharmaceutical products in India (ORG Marg, July2003). July2003). In 1972 1972,, cont contin inui uing ng its its trad tradit itio ion n of intr introd oduc ucin ing g safe safe and and natu natural ral remed remedie ies, s, Himalaya launched Bonnison, a natural pediatric digestive tonic. A formulation based on years of research and clinical testing, the product found wide acceptance among doctors and mothers alike. The sweet tasting tonic became a trusted part of a baby’s growing up. After extensive work on the formulation and related clinical research, Himalaya introduced Himcocid an herbal natural acid neutralizing agent in 2000.It was very well received by customers and broke all ORG (Organization Research Group, a national market survey forum) records in the year of its launch. With introduction
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of Himcoc Himcocid, id, Himala Himalaya ya shatte shattered red the notion notion that that ayurve ayurvedic dic produc products ts are slow slow acting and work best for chronic ailments. Some of the other well known products are:Abana, Cyst one, Gasex, Geri forte, Rumalaya,Diabecon,Mentat,Koflet,Himcolin,Septilin,Pilex,etc. PERSONAL CARE PRODUCTS
Hima Himala laya ya has has used used its its weal wealth th of know knowle ledg dgee and and resea researc rch, h, in natu natural ral herb herbal al remedies, remedies, to formulate formulate a range of personal care products that cater to daily daily health health needs. This range offers the goodness of natural solutions for daily use by the complete family. The use off natural ingredients in personal care products has been practiced since time immemorial leading to increased use of herbs with a curative value. Modern research proves that herbs while being effective are also mild and soothing. Launched in 1999, Himalaya Herbal is a range of natural herbal personal care products spanning Health Care, Oral Care, Hair Care and Skin Care. Care. The range comprises of Fairness Cream, Soap-free washes, Facial Cleansers, Face Toners,Moist Toners,Moisturizer urizers,Soap s,Soap-free -free Shampoos,C Shampoos,Condit onditione ioners,Hai rs,Hair-loss r-loss control, control, Weight Weight control, Pimple control, Foot care,Multi purpose creams, Skin nutrients, Dandruff
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control,Ant control,Anti-stre i-stress,Di ss,Digesti gestive ve health, health, Pain relievers, relievers, Cough &cold relievers relievers and Oral Care products.
WELL BEING ( PURE HERBS )
Himalaya pure herbs are a range of individual herb extracts. Each herb is the result of strict monitoring from the farm to the lab. At the lab, Himalya’s proprietary techniques are used to extract the optimum value of each herb. This is followed by rigorous tests by R&D team for potency and consistency. The actins of these extracts benefit the body, irrespective of the individual’s body constitution, state of health and metabolic functions. Every one can benefit from the goodness of these herbs, irrespective of age, sex, body type or other health related factors. The Pure Range comprises of the following Amalaki: Usef Useful ul in trea treati ting ng coug cough, h, cold cold,, sore sore thro throat at and and resp respir irat ator ory y trac tractt
infect infection ions. s. It protec protects ts cells cells from from free radical radical damage damage and is an excell excellent ent anti anti oxidant. Arjuna: This herb improves blood circulation and is used as s tonic fir the heart. Ashvaganda: Commonly known as winter cherry, this herb acts as an anti-stress
agent that imparts a sense of well-being and helps in coping with life’s daily stresses. Brahmi: a well-known herb that helps in improving general alertness.
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Karela: Commonly known as Bitter Gourd. It is known to aid in the metabolism of
carbohydrates Commonly ly referre referred d as Garlic Garlic.La .Lasun sunaa helps helps in contro controlli lling ng the excess excess Lasuna: Common conversion of lipids and cholesterol popularr herb, herb, neem neem has anti-b anti-bact acteri erial al and blood blood-fun -fungal gal and blood blood Neem: A popula purifying properties. It is very useful in skin disorder and helps maintain a healthy, beautiful and glowing skin r emove excess cholesterol Shudda Guggulu: It regulates fat metabolism and helps remove from the body. Shallki: This herb treats joint problems. Tagara: It has mild sedative properties, which are useful for insomnia and sleep
disorders Triphala: A digestive aid compound and a bowel cleanser. Tulasi: It has anti-microbial and anti-inflammatory properties and is useful in
respiratory tract infections like dry or wet cough, cold and sore throat.
ANIMAL HEALTH The Himalaya legacy extends to Animal Health also. The company offers wellresea researc rche hed, d, safe safe,, anim animal al heal health th prod produc ucts ts,, harn harnes esse sed d from from natu nature re’s ’s weal wealth th to alleviate the suffering of animals, to improve their health and to increase their productivity. Worl Worldd-wi wide de ther theree is a grow growin ing g conc concer ern n abou aboutt the the pres presen ence ce of chem chemic ical al contamination in dairy, meat and poultry products. Taking a cue, the Himalaya drug company has extended its expertise to create ayurvedic drugs and therapies for animal health care.
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Concern for animal welfare prompted Himalaya to launch the animal health range of produc products ts for Commer Commercia ciall Livest Livestock ock in July July 1998.t 1998.the he produc products ts in this this rang rang alleviate the suffering of animals and improve their health. This results in healthy livestock whose animal products are safe for human consumption. Realizing the importance of companion animal in today’s life, Himalaya launched the companion care range of products in 2000. Live Stock: We have Appetonic Vet, Appetoni forte Vet, Diarex Vet, Galactin
Vet, Himpyrin Vet, Himrop Vet, Inflaming Vet, Speman forte Vet, Styplon Vet, Tentex forte Vet. Poultry: Diarex PFS,Geriforte Vet,Liv.52 Protec,Nefrotec Vet,Speman Vet,
Speman forte Vet, Tentex forte Vet are prominent products.
Aquaculture :Gerroforte Aqua,Himmune,Liv.52 Protec. Companion :Anxocare, Canisep, Digyton, Erina, Erina EP ,Erina Plus, Himpyrin,
Immunol, Liv.52 Vet, Nefrotec, Regurin, Scavon are important items.
RETAIL DIVISION There are 84 franchisee stores located across the country. All the products are made made availa available ble less less than than one roof roof for the custom customers ers.. Product Product catalogu catalogues es and information booklet are available for the customers to choose the right product available for the customers.
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PRODUCTION Himalaya Himalaya produces produces quality quality polyherba polyherball formulation formulations. s. To monitor monitor quality, quality, many endangered herbs are grown by the company on its farmland. The principles of Good Manufacturing Practices (GMP) are rigorously followed in the plant and the comp compan any y prid prides es itse itself lf on bein being g envi enviro ronm nmen enta tall frie friend ndly ly.. As a part part of the the environment control system, it had installed a modern effluent treatment plant long before regulations mandated it. A high stress on quality, several quality circles and special project teams working on Total Quality Management (TQM) projects make quality a way of life in Himalaya.
The manufacturing plant uses automatic, high –speed punching, coating and filling machines. The tablet coating facility is one of the largest in India. The plant can produce nearly 5 billion tablets tablets and 60 million million bottles of liquids annually. annually.
This enables Himalaya to produce phytophamaceuticals with uniform levels of batch-to batch consistency. This ensures that the customer gets the same high quality product regardless of where it is purchased.
THE HIMALAYA’S IDENTITY The Himalaya brand has much in common with the mountain range, from which it draws its name. For centuries, the Himalaya has been an icon of inspiration, of man’s quest to unlock Nature’s secrets. The Himalaya Himalaya represents purity and lofty ideals and is the source of many herbs they use.
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HIMALAYA’S LOGO •
Their logo is a visual definition of their brand identity. The leaf that forms the crossbar of the letter H evokes their focus on herbal healthcare. The teal green of their their logoty logotype pe repres represent entss their their proxim proximity ity to nature nature,, while while the orange orange is evocative of warmth, vibrancy and their commitment to caring.
•
Every thing that carries their logo is accompanied by high quality that has always been their hallmark. The Himalaya brand carries with it the promise of good health and well-being. Their endeavor is to ensure that their logo becomes the symbol of promise delivered.
VISION Seventy years later, Himalaya has spread its wings to several parts of the globe. With offices in Bangalore, Dubai, Singapore and Houston and soon in Jersey (British Isles) and Chile in South America, they are on a roll. Their vision is to make make Himala Himalaya ya a househ household old name. name. Indeed Indeed,, brand brand Himala Himalaya ya has increa increased sed its visibility in several important markets globally and they will continue to build on this foundation. Their commitment to core values will remain strong. They will continue to operate their business with the highest ethical standards set by their founder. founder. They will be honest honest and truthful truthful with their entire customer. customer. Each person
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who comes in touch with Himalaya must be delighted with his or her experience. Nothing less is acceptable. acceptable.
QUALITY POLICY Researching Nature - Enriching Life - Since 1930 Developing safe and proven pharmaceutical-grade herbal health and personal care products. Maintain international quality standards and secure India’s rightful place in the global economy by consistently meeting or exceeding customer expectations. Quality performance is a commitment to excellence by each Himalaya employee. employee. It is achieved by teamwork and a process of continual improvement. Our attachment to Himalaya is total; our commitment to its values, complete. Each person who comes in touch with Himalaya must be pleased with his or her experience, nothing less is acceptable.
MISSION STATEMENT •
We will will satisf satisfy y each each custom customer’s er’s health health needs needs throug through h well well researc researched hed,, effective and safe remedies harnessed from nature’s wealth.
•
We will will consid consider er the world world our our marke markett and make make intern internati ationa onall qualit quality y standards our obsession.
•
We will will mainta maintain in custom customerer- friendl friendly y prices prices and proudl proudly y partic participa ipate te in securing India’s rightful place in the global economy, all through the total commitment of each member of the Himalaya family.
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HERB FARMS Mr. Mohammed Manal began the experimental herb farm in the 1930s to grow rare herbs. Himalaya’s strength has been in their rich herb heritage. An agrotech division in south India grows geographically compatible endangered herbs. Currently, Himalaya has a database of more than 200+herbs, 30+minerals that are studied intensively.
AWARDS AND RECOGNISITION design, manufactur manufacturee & 1. In 2003, awarded ISO 9001:2000 Certification for design, marketing of herbal health care products from National Quality Assurance, UK.
2. In 2001, granted “Good Manufacturing Practices (GMP)” Certificate , by Licensing Authority, Directorate of Indian System of Medicine, Bangalore.
3. Recognized as Research Center by Rajiv Gandhi University of Health Sciences, Karnataka.
4. The WHO has sponsored a project , through the Ministry of Health in Indi India, a, to stan standa dard rdiz izee medi medica call lly y usef useful ul herb herbs. s. Hima Himala laya ya is one one of the the companies chosen for the project.
HUMAN RESOURCE Dedicated employees are the valuable assets of The Himalaya Drug Company. Friendly work environment can be experienced throughout the organization. They are the people who took Himalaya to its peak and they are the people who made the organization so competitive in the market that no other company is ever daring to venture into its many product lines. As per 30 th November the human resource
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total was 2192 comprising management staff (385), field staff (1016) and workmen (791). Human Resource for the year 2004-2005
Management Staff Field Staff Workmen Total
385 1016 791 2192
The below diagram shows the distribution of human resources in various functional classification as on 30 th November, 2004. Manpower as on 30th Nov,2004 Mgt Staff, 385 Workme n, 791 791
Field Staff, 1016
Mgt Staff
Field Staff
Workmen
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PERFORMANCE MANAGEMENT SYSTEM IN THE HIMALAYA DRUG COMPANY BRIEF HISTORY
Performance Management System has been in place from long years in The Himalaya Drug Company. This system aims to review individual performance on the basis of mutually agreed objectives, for a particular period, thus ensuring goal clarity on a continuing basis. Also it analyses and provides counsel and training to the appraisee, on areas of concern, with respect to self-development, achievement of business objectives and future growth in the organization. However, changes have been brought into the system according to the changing requirements and developme developments nts in the H.R.system H.R.system.. The present present Performance Performance Management Management System has been formulated by B M Nagaraj and K G Umesh in the year 1995 and it is the development of the old system. Initially ranking system was followed to appraise the performance, which was not that systematic. Now the company is following grading system.
Operational guidelines 1. The human human resour resource ce head carries carries out the performa performance nce plannin planning g exerci exercise se whenev whenever er the need need arises arises to modify modify the existing existing Key Result Result Areas and identify new dimensions. 2. The concerned concerned departm departmenta entall head does apprai appraisal sal for a period period of six months months (for probationers) and annually (for all) on the overall performance of the employees based on the various potentials, skills and competencies. The
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appraiser appraiser gives the performance performance feedback feedback of his subordinates subordinates to the human resource department by recording the same in the appraisal form at the end of every six months and annually. 3. On receipt receipt of appraisal, appraisal, the human human resource resource department department carries carries out a detailed detailed rating analysis based on the weight age and the same will be compared vis-àvis with their superiors’ ratings. In case there is noticeable difference in the employee rating the same will be referred back to the concerned superiors for justifications.
STRUCTURE OF THE HUMAN RESOURCE DEPARTMENT Senior H.R.manager H.R.manager B M Na ara
H.R. Manager (K G Umesh)
Executive Mr.R Mr.Raa hven hvendr draa
Industrial Relations Ja asim simha
Mr.Hanif
Executive Mrs.Bhuvana
Executive
Executive Mrs.Latha
Peons & Office Boys
1. ANNUAL PERFORMANCE REVIEW
Executive (Miss. Usha)
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Once in a year the performance of employees are evaluated by the HR department and by Divisional Heads. The following employees’ performances are evaluated. Employee Grades & Designations
Grades
Designation
M1 M2 &M3 M4 & M5 E1, E2 &E3
DIVISIONAL HEAD SENIOR MANAGER MANAGER EXECUTIVE
CRITICAL PARAMETERS
To arrive arrive at an unbias unbiased ed conclu conclusio sion n about about the employ employee ee perfor performan mance ce variou variouss factors are considered as critical parameters. The extent an employee is capable of proving his/her efficiency he/she will will be rated as A, B, C and and D. Rating scale
A B C D
Outstanding Very Good Good Average
JOB KNOWLEDGE
Here knowledge of concepts and techniques relevant to the job, awareness of the curr curren entt tren trends ds and and deve develo lopm pmen entt in the the job job area areass and and appl applyi ying ng know knowle ledg dgee effectively to carry out the job are considered. PLANNING & ORGANISING ABILITY
Ability to plan ahead routine and non-routine tasks, set targets and developing strategies to achieve the targets with minimum resource utilization fetch more marks to the appraisee.
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LEADERSHIP & DECISION-MAKING DECISION-MAKING
Abilit Ability y to motiva motivate te subord subordina inate te in workin working g toward towardss common common goal, goal, abilit ability y to delegate authority and guide them in their work and helping them to develop themselves are important points under this segment COMMITMENT AND DEDICATION
Dedication to work and company’s objectives, reliability in completing assigned task taskss in time, time, with with mini minimu mum m requ reques estt of foll follow ow-u -up p from from supe superio riorr are cruc crucia iall determinants. INITIATIVE AND INNOVATIVENESS
Ability to determine and initiate actions that result in improved handling of the job without waiting to be hold, ability to think of new and better ways of doing things that results in introduction of new ideas or improvements of the systems and operations are considered to be essential factors here. COMMUNICATION
Ability to express and present thoughts clearly and precisely both written and oral is important here. INTERPERSONAL AND TEAM RELATIONSHIP
Ability to interact effectively with people at all levels to gain their confidence and respect respect for subord subordina inates tes;; associ associati ating ng superi superiors ors to work work in a collab collabora orativ tivee and participative manner are significant significant constituents. RESPONSIVENESS TO CHANGE
Ability to quickly interpret, adjust and manage new situations gains due weight age.
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COST AND TIME CONSCIOUSNESS CONSCIOUSNESS
Optimum utilization of resources and contribution to savings in cost fetch more points. ANALYSIS OF PERFORMANCE
After analyzing the critical parameters appraiser along with HR department arrive at a mutual conclusion. This conclusion on the review serves as an effective tool in implementing all follow up actions taken. 1. List of employee’s strength giving supporting examples which serve as an indicator of the direction in which employee development could be planned. 2. The areas in which employee performance can and should be improved, which assist in improving employee performance. 3. Summarizing the employee improvement and developmental needs, wherever practicable by indicating specific work experience, training measure or other improvements and development plans. 4. If the the empl employ oyee ee is prom promot otab able le,, maki making ng care career er plan plan by indi indica cati ting ng spec specif ific ic position. This appears to be the next step ahead of him. him.
2.SELF-ASSESSMENT Along with performance review employees are asked to assess their self. Based upon self-assessment the rating scale is decided. Important factors were appraisee is asked assess himself are as follows. •
The targets (KRAs) agreed for the appraisal period.
•
The work done during the period under review
•
The major achievements
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•
Factors hindering the performance.
•
Training needs.
•
Assignments/jobs appraisee would like to be involved in.
3.INTERFACE SESSION
In interface session both appraiser and appraisee sit together and have a face-toface discussion regarding below stated things. •
Areas of improvement agreed upon in current area of work
•
Targets agreed upon for the coming year with objectives and target areas.
4. HALF YEARLY PERFORMANCE PERFORMANCE REVIEW REVIEW (For trainees / probationers )
Here Here vari variou ouss perf perfor orma manc ncee crit criter eria ia are are eval evalua uate ted d befo before re rati rating ng the the performance of the trainee. Based upon trainee job knowledge, quality of work (includ (includes es accura accuracy, cy, reliab reliabili ility, ty, meetin meeting g target targets), s), adapta adaptabil bility ity to the compan company y (culture, work system & procedures), Communication (oral/written/presentation), Co-operativeness (with subordinates/ colleagues/ peers/ superiors), initiative and innovativeness, Commitment & dedication, Traits in quality consciousness, time consciousn consciousness, ess, system conscious consciousness, ness, cost consciousn consciousness ess along with attendance attendance performance is reviewed and following following ratings will be given. given. Rating scale
A B C D E
Outstanding Very Good Good Average Poor
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5. EMPLOYEE POTENTIAL EVALUATION To know the future potentiality of an appraisee during the performance review, the HR depa depart rtme ment nt will will do pote potent ntia iall eval evalua uati tion on.. Foll Follow owin ing g are the the impo import rtan antt evaluating factors considered for potential appraisal. PERFORMANCE
Here Here comp comple leti tion on of task taskss on time time,, achi achiev evem emen ents ts of resu result lts, s, TQM TQM and and hous housee keeping, technical and functional ability are considered. MANAGEMENT/SUPERVISORY MANAGEMENT/SU PERVISORY SKILLS
Organizing Organizing skills/abi skills/abilitie lities, s, resourceful resourcefulness, ness, planning planning ability, ability, crisis management management,, delegation and development, control and counter measures and communication skills constitute the core issues for reviewing. DEPENDABILITY
Perseverance Perseverance and commitment commitment to task, adherence to culture culture /system/st /system/standard andards, s, professional integrity, loyalty to the organization etc etc are measured. INITIATIVE
Innovating new ideas/concepts, Drive/killer instinct to achieve, Originating counter measures occupies significant place. LEADERSHIP
Here team building /group dymamics, fairness, development of subordinates are observed. ENERGY
Stamina-physical and mental, stress management and health of the appraisee assist appraiser in evaluation.
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WEIGHTAGE USED FOR RATING After through evaluation of the critical factors and discussion with the appraisee the rating scale is determined. To make it more specific and systematic for each factor certain weightage has been given. Total points will ultimately decide about the appraisee rating by the HR department.
Weightage taken for potential for each category FACTORS Performance Management/ Supervisory skills Dependability Initiative Leadership Energy
M1
M2, M3&M4
E1&E2
E3&E4
0.1 5
0.2 0
0.25
0.40
0.3 0
0.2 5
0.20
0.15
0.1 0
0.1 5
0.20
0.20
0.1 5
0.1 5
0.15
0.10
0.1 5
0.1 0
0.10
0.05
0.1 5
0.1 5
0.10
0.10
The results of performance management are used for the following purposes by the HR department and by superiors. •
Identification of Training needs
•
Career planning and development
•
Setting individual performance standards (KRAs)
•
Individual development
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Evaluation of the Data In this chapter survey questioners have been analyzed to arrive at meaningful findings and conclusions. For the purpose of beautification and easy understanding of the analyzed data pie diagrams, bar charts are extensively used wherever felt necessary by the investigator.
How appraisee feels about performance management system in the organization 1. Understanding “performance management” Belo Below w tabl tablee show showss what what appr apprai aise seee unde unders rsto tood od by the the term term perf perfor orma manc ncee management. Table 4.1 Performance appraisal or review Personal developmental plans Assessment of training and development Regular meetings with supervisor to review progress Setting objectives Pay based on performance ratings Periodical evaluation of realistic objectives
50% 40% 30% 30% 25% 20% 5%
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UNDERSTANDING OF PERFORMANCE MANAGEMENT 50% g n i d n a t
40%
s r e d n U f o e g a t n e c r e P
30%
30% 25% 20%
5%
P.RW
PDPs
A s s . T& D
RM S
St g.Obj
PR
P.Eln
Performance Performance Manageme Manageme nt Systems
Analysis:
The The gene general ral unde underst rstan andi ding ng conf confor orms ms to most most appr apprai aise see’ e’ss view viewss abou aboutt performance management, with a strong emphasis on “performance review and deve develo lopm pmen entt plan plans” s”.. The The perc percep epti tion on of pay pay as a key key elem elemen entt was was much much less less evident.
2. Completion of requirements Ninety-five percentage of the respondents claimed claimed that, they have undergone performance management evaluation carried out in the last year. In answer to this this ques questi tion on why why they they had had not not unde underg rgon onee perf perfor orma manc ncee mana manage geme ment nt evaluation? 5 percent said that “it was irrelevant to the current job”-the usual excuse.
QUESTIONS Yes No
PERCENTAGE 95% 5%
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Respondents who undergone Performance Evaluation 95%
5%
YES
NO
a. Actions following the review meeting
Actions following the review meeting are shown in the table 4.2. Table 4.2 Sl.no.
Statements
Percentage
1
Received a pay rise
45%
2
Identified career development opportunities Realized improvements in the work done Attended training program
25%
3 4 5
Implemented a program on selfdevelopment
ACTIONS FOLLOWING THE REVIEW MEETING 50%
45%
40% 30%
25%
20%
20% 10%
10% 0%
RPR
CDO
I.W D
TP
5% SD
Actions Actions after Review R eview Meeting
20% 10% 5%
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Analysis:
Fort Forty y five five perc percen entt respo respond nden ents ts vote voted d for for the the pay pay hike hike and and twen twenty ty five five percent respondents have identified career development opportunities by attending review meeting. Need for training programs and self-development programs have been strongly felt by the respondents.
3.Feelings about the organization and colleagues Table 4.3 sets out views of respondents about their organization and colleagues Table 4.3 Statements My organization is a good employer. My organization is committed to my training and development. My organization communicates well. The people in my work group are committed to the organization. My colleagues and I have respect for each other.
Strongly Agree agree 40% 55% 5% 25%
Neutral 5% 25%
Strongly disagree 45%
20% 35%
35% 50%
40% 15%
5% -
35%
60%
-
5%
1.Organisation’s commitment commitment for training and development
The respondents’ opinion about organisation’s commitment for their training and development has been illustrated through the following table and bar cart. Table 4.3(1) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. of respondents 5 25 25 45
Percentage
5% 25% 25% 45%
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Organisations' commitment for training & development 60 Percentage
40 20 0 Stg .Agr
Ne utr al Response
2.Communication 2.Communication by the organization
The The resp respon onde dent ntss have have stra strang ngel ely y ques questi tion oned ed comm commun unic icat atio ion n aspe aspect ct of the the org organi anizati zation on
by
rem remain aining ing
neut neutra rall
(40 (40
perc ercent) ent)..
This This
evi eviden dently tly
organisation’s attention for improved communication practices in the system. Table 4.3(2) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 20 35 40 5
Communication by Organisation
40 Percentage
20 0
20 Stg .Ag r
40
35
5 Ag ree
N eutra l Response
Stg .D i s a gr
Percentage
20% 35% 40% 5%
draw drawss
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Analysis:
On the whole, respondents felt that “they have good employer”. But “organization didn’t communicate all that well (40% + 5%)” and “is not committed to their employee training and development (25% + 45%)”. Relationships with colleagues are good. A.Opinions about objectives, work and feedback
Below table clearly highlights the employee opinion about objectives, work and feedback. Table 4.4 Statements I fully understand my organization’s goals and objectives. I know what is expected from me by my organization. My work objectives are difficult to achieve. I have authority to determine my work and to discuss the same with my superior. I find it difficult to discuss work problems with my line manager. I feel I am constantly being compared with my colleagues.
Strongly agree 30%
Agree
Neutral
Strongly disagree 5%
No response -
35%
30%
30%
55%
15%
-
-
5%
5%
25%
65%
-
20%
55%
10%
10%
5%
-
10%
25%
65%
_
5%
25%
25%
45%
_
1.Understanding organisation’s organisation’s goals and objectives
Seventy five percent of respondents have agreed that they understand the organisation’s goals and objectives. Sl.no.
1 2 3 4
Table 4.4(1) Response No. Of respondents Strongly agree 30 Agree 35 Neutral 30 Strongly disagree 5
Percentage
30% 35% 30% 5%
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Understanding Objecti Objectives,work ves,work and a nd policies policies
40 Percentage 20
35
30
30 5
0 Stg.Agr
Agr ee
Ne utra l
Stg.Disgr
Response
2. Authority to determine the work Considerable authority has been given to determine the work and to discuss the same with the superiors. This can be comprehend more clearly from the below table. Table 4.4(2) Sl.no.
Response
1 2 3 4 5
Strongly agree Agree Neutral Strongly disagree No Response
No. Of respondents 20 55 10 10 5
Authority Authority to determine determine work 10%
5%
20%
10%
55% St g .Agr
Ag r e e
Ne u t r al
St g .Dis ag
No .Re s p
Percentage
20% 55% 10% 10% 5%
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Analysis:
Opinions about objectives, work and feedback as shown in the table 4, indi indica cate te a stro strong ng meas measur uree of beli belief ef that that “obj “objec ecti tive vess and and expe expect ctat atio ions ns are are unde unders rsto tood od”” and and that that “res “respo pond nden ents ts have have auth author orit ity y to dete determ rmin inee thei theirr work work obje object ctiv ives es,, whic which h them themse selv lves es are are not not unre unreal alis isti tic” c”.. They They feel feel they they “hav “havee a reasona reasonable ble degree degree of autono autonomy my and have have little little diffic difficult ulty y in discus discussin sing g work work problems with their manager”. They They are happy about the feedback. feedback. B. Views on pay Table 4.5 Statements The most important thing about my job is the pay. The people who get the best pay rises are those who ask for them. My organization values my contribution. Hard work is not necessarily recognized or rewarded.
Strongly agree 5%
Agree
Neutral
15%
40%
Strongly disagree 40%
5%
5%
80%
10%
15%
65% 15%
30% 45%
5% 25%
Analysis:
Views on pay, as shown in the table 5, are mixed. A majority of respondents “did not wholly agree that the pay is the most important part of their jobs”. Most people “felt that hard work is not necessarily recognized or rewarded”. Majority (80 percent) remained neutral for the question “people who get best pay are those who ask for them”.
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4. Attitudes to performance management management Table 4.6 Statements Perfor formanc mancee managemen ment is abou bout individuals and their long-term developments. Performance management helps people to improve work performance. Performance management provides platform to discuss progress openly and honestly. Performance management is a two way process with both appraiser and appraisee expressing their views. Performance management is about making people to work hard. Perf Perfor orma manc ncee mana manage geme ment nt valu values es the the contribution of the team. Perf Perfor orma manc ncee mana manage geme ment nt moti motiva vate tess people and makes them feel as a part of the organization.
Strongly agree 20%
Agree
Neutral
Strongly disagree 10%
60%
10%
30%
60%
5%
5%
35%
50%
10%
5%
50%
35%
10%
5%
5%
15%
55%
25%
25%
50%
20%
5%
35%
45%
10%
10%
1.Performance Performance management is a two way process Responses from the respondents were quite satisfactory. They had shown moderate acceptance for two-way performance approach where both appraiser and appraisee express their views. Table 4.6(1) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 50 35 10 5
Percentage
50% 35% 10% 5%
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Performance management is a two two way w ay praocess 50 40 Percentage
30
50
20
35
10 0
10 Stg.Agr
Agr e e
5
Ne utr al
Stg.Disgr
Response
Analysis:
Atti Attitu tude dess to perf perform orman ance ce mana manage geme ment nt are are set set out out in the the tabl tablee 6, answer answer to the questions questions,, revealed revealed a strong measure measure of agreement agreement with most of the fundamental precepts of performance management. There is no evidence of any hostility or even indifferences here.
A. Negative questions about attitudes to performance management Table 4.7 Statements Performance management is about manager controlling people. Perform Performanc ancee manage managemen mentt doesn’t doesn’t help to develop careers. Performance management is about deciding how much to pay for employees. Performance management is beneficial only for the organization and not for individuals.
Strongly agree 5%
Agree
Neutral
-
45%
Strongly disagree 50%
-
10%
20%
70%
10%
10%
65%
15%
-
-
25%
75%
1.Performance 1.Performance management doesn’t help to develop careers
Through answering this question respondents have openly stated that career development aspects are not neglected.
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Table 4.7(1) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 10 20 70
Percentage
10% 20% 70%
Performance Performance management doesn't do esn't help for career development 0% 10% 20% 70% Stg.Agr
Agr ee
Neutr a l
Stg.Dis a gr
Analysis:
On the whole the replies were fairly positive. Even the statement that performance management is about controlling people was agreed by only 5 percent of respondents.
5. Views of respondents on performance management management Table 4.8 Statements Performance management helps me to do my job better. better. Performance management helps me to develop my skill and potential. The per perform formanc ancee standard standardss agreed agreed with my manager are realistic. I get get usefu usefull fee feedb dback ack from from my perf perfor orman mance ce management review.
Strongly agree 20%
Agree
Neutral
50%
20%
Strongly disagree 10%
20%
50%
20%
10%
30%
25%
35%
10%
10%
55%
30%
5%
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Statements
I am not satisfied with the way my manager/team leader conducts my performance review. Assessments of my performance are consistent, 15% fair and unbiased. I feel motivated after a review meeting. 10% I do not not und under ersta stand nd how how my manag manager er/te /team am 5% leader decides my rating. Managers/team leaders give the best 5% ratings/assessment to people they like. I full fully y und nder erst stan and d how how my per perform forma ance nce 5% standards relate to the business needs of the organization. I have received adequate training in 5% performance management. The system of performance management used here works well and doesn’t need to change. Time Time spent spent on per perfor forma mance nce manag managem emen entt is 10% worthwhile. The infor format mation ion disc discllosed sed in revi eview is 5% sens sensit itiv ivel ely y and and prod produc ucti tive vely ly used used by the organization.
Agree
Neutral
15%
40%
Strongly disagree 35%
20%
60%
5%
40% 20%
50% 70%
5%
20%
50%
25%
5%
55%
35%
40%
50%
5%
10%
45%
45%
45%
40%
5%
20%
70%
5%
1. Performance management helps in developing skills and potential
Seven Seventy ty perc percen entt of resp respon onde dent ntss are are enjo enjoyi ying ng the the bene benefi fits ts of perf perform orman ance ce management by increasing their skills and potential. Table 4.8(1) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 20 50 20 10
Percentage
20% 50% 20% 10%
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Performance management manag ement is helpful in developing skills and potential 50 50 40 30 Percentage 20 10 0
20
20 10
Stg.Agr
Agr ee
Ne utral
Strg.Disagr
Response
2.Satisfied 2.Satisf ied with the way manager/team leader conducts performance review
The obtained data somehow went against the above statement. Majority is not happy with the way superior conducts the review. Table 4.8(2) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 10 15 40 35
Satisfied with present review system 10% 35%
15%
40% Stg .Ag r
Ag r
Ne utr al
Stg .Disagr
Percentage
10% 15% 40% 35%
65
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Analysis: 1. There is a reasonable degree of support for the statements that “performance
management helps me to do my job better” and “helps me to develop my skill and potential”. 2. Quite a large proportion felt that they got useful feedback and people were reasonably satisfied with the way the review was conducted. 3. Assessments were felt to be quite fair and while answering this, majority (70 percent) remained neutral. 4. 50% 50% resp respon onde dent ntss agre agreed ed that that they they felt felt moti motiva vate ted d afte afterr a revie review w meet meetin ing g (although a substantial majority of 50 percent remained r emained neutral). 5. Majority respondents (55 percent) remained neutral regarding understanding how assessments are made. 6. Many remained neutral (50 percent) and believed (25 percent) that the best ratings are given by managers to the people they like. 7. A large large propor proportio tion n believ believee that that time time spent spent on perfor performan mance ce manage managemen mentt is worthwhile. 8. 45 percent of employees feel the need to change the system. 9. Only 45 percent of respondents agree with the statement that they had received adequate training in performance management.
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How appraiser feels about performance management system in the organization? This questionnaire is mainly designed even to know the views of appraiser who conducts the review. Given below data analysis mainly provides information in the area of appraiser approach for performance management.
1. Appraiser attitude for performance management Table 4.9 Statements Important aspect of performance management is, setting of challenging and stretching goals. Performance management will succeed, if it integrates the individual goals with organizational goals. Performance – related pay is an essential part of performance management. Line manager own the performance management system. The focus of performance management should be developmental. Performance management should be a continuous and integrated part of the employee-management relationship. The main objective of performance management is to motivate individuals. Performance management is an essential tool in the management of organizational culture. Everyone must be trained in performance management techniques. Performance management distracts people from most important activity. Performance management must be accompanied by extensive communication. Performance management should be distanced from payment system as for as possible.
Strongly agree 73%
Agree
Neutral
27%
-
Strongly disagree -
67%
27%
6%
-
47%
33%
20%
-
27%
46%
27%
60%
40%
-
-
73%
27%
-
-
47%
47%
6%
-
33%
47%
20%
-
47%
47%
6%
-
-
20%
80%
33%
40%
27%
-
7%
27%
27%
39%
-
-
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1.Line manager own the performance performance management system.
Forty-five percent respondents remained neutral and twenty seven percent agreed the statement.HR department must strive hard in this area by giving ownership to the appraisee who undergoes this process. Table 4.9(1) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 27 46 27
Percentage
27% 46% 27%
Line managers owning the performance system 46
50 40
percentage
27
30
27
20 10
0
0
St g.Ag r
Ne ut r al Resopnses
Stg. Stg.A Agr
Agree gree
Neut Neutra rall
Stg. Stg.Di Disagr sagr
2. The focus focus must be be developmental developmental
All All resp respon onde dent ntss unan unanim imou ousl sly y gave gave thei theirr cons consen entt for for focu focusi sing ng perfo perform rman ance ce management results for the development of individual personality and there by increasing their work quality. Table 4.9(2) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 60 40 -
Percentage
60% 40% -
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Focus must be developm dev elopmental ental 0%
40%
60%
Stg.Agr
Agr e e
Ne u t r a l
Stg.Disagr
3.Performance 3.Performance management should be a continuous and integrated part of the employee-management employee-management relationship.
For this statement also appraiser gave positive response. It shows that they are clear about the growing concept of performance management. Table 4.9(3) Sl.no.
Response
1 2 3 4
Strongly agree Agree Neutral Strongly disagree
No. Of respondents 73 27 -
Percentage
73% 27% -
Process must be continuous&integrated with organisational culture 80 70 60 50
Percentage 40 30
73
20
27
10
0
0 St g.Agr
Ag r e e
Ne ut r al
Response
0 St g.Dis agr
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Analysis:
Appraisers have positive opinions regarding performance management most most of the the ques questi tion onss were were answ answer ered ed posi positi tive vely ly.. This This show showss that that appr apprai aise ser r understood the performance management concept fairly well.
2. Features of performance management management The main features of performance management processes used by the respondents are shown below Table 4.10 Annual appraisal Self appraisal Performance related pay Objective setting and review Twice-yearly(bi- annual)appraisal Continuous assessment Competence assessment 360-degree appraisal Personal development plans Subordinate feedback Career development or/and succession Planning Counseling Coaching
93% 67% 67% 60% 47% 40% 40% 40% 40% 40% 40% 33% 27% 14%
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Features of Performance Management
CHG
14%
CNG
27%
CDT
33%
SF M P PDP PDP f o 360-DP s e r CMPA u t a CA e F BAPR
40% 40% 40% 40% 40% 47%
OSR
60%
PRP PRP
67%
SAPR
67%
APR 0%
93% 10%
20%
30%
40 %
50%
60%
70%
80%
90%
100%
Percentage
Analysis:
As migh mightt be expe expect cted ed,, the the “mos “mostt comm common on feat featur ures es are are annu annual al appr apprai aisa sal, l, self self-ap -appr prai aisa sal, l, perf perform orman ance ce relat related ed pay pay and and obje object ctiv ivee sett settin ing g and and review”. review”. Half-yearly Half-yearly appraisal, appraisal, continuou continuouss assessment, assessment, competenc competencee assessment, assessment, 360-degree appraisal, personal development plans and subordinate feedback are also used up to a high proportion. Importance of counseling and coaching are yet to be realized by the organization. organization. A. Effectiveness of key features
Tab Table 4.1 4.11
prov rovide ides
imp importa ortan nt
insti nstinc ncts ts rega regard rdin ing g
the the
effec ffecti tive ven ness ess
organizational performance management practices. Table 4.11 Statements Annual appraisal
Very effective 13%
Partly effective 80%
Failu ilure Don’t n’t kno know -
7%
of
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Statements Performance-related pay Self- appraisal Objective setting and review Twice –yearly (bi-annual) appraisal Continuous assessment Competence assessment 360-degree appraisal Subordinate feedback
Very Partly effective effective 27% 40% 20% 47% 27% 33% 27% 20% 20% 20% 20% 20% 20% 20% 33% 7%
Failu ilure Don’t n’t kno know 20% 20% 27% 7%
33% 33% 40% 53% 40% 40% 33% 53%
Analysis:
“Ann “Annua uall appra apprais isal al,, perfo performa rmanc ncee rela relate ted d pay, pay, self self-ap -appr prai aisa sall and and objective-setting and review are all strongly endorsed”. There were a “substantial number of people who don’t know about the effectiveness of half yearly appraisal (53percenta (53percentage), ge), continuou continuouss assessment assessment (40percenta (40percentage), ge), competenc competencee assessment assessment (40percentage), and subordinate feedback (53percentage)”.
4.Setting the performance requirements Performance requirements in the organization are decided jointly. This aspect is clearly evident from the below table 4.12 Table 4.12 Individual him/herself Superior Jointly(individual & superior)
13% 87%
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Setting Performance Requirements
1
87%
0.8 Percentage
0.6 0.4 0.2 0
13% 0% ID L
SUP
JOINT
Person who set requirem requirem ents
Analysis:
87 percent respondents stated that the performance requirements are set jointly (individual & superior).A few respondents (13 percent) viewed that superior sets the performance requirement.
4.Receiving training in performance management techniques Analyzed data (table 4.13) makes it clear that training aspects are strangely neglected by the management. Table 4.13 No one All staff Appraisers Heads of department Personnel staff
53% 33% 7% 7% -
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Receiving PM Training 7%
7% 0%
53%
33%
NO ONE
ALL STF
APRS
H of D
P St af
Analysis:
Major (53 percent) respondents felt that “no one in the organization receives training in performance management techniques”.
4.Statements about performance management Positive statements
The majority of respondents either fully agreed or partly agreed with the following statements about performance management. Table 4.14 Statements It is an an integrated pa part of of em employee – management re relationship. The focus of performance management is developmental. Performance management motivates individuals. Performance-related pay is an essential part of performance management. The aims and objectives of performance management are well communicated and fully understood. Perf Perfor orma manc ncee man manag ageement ment is is use used d to mana manage ge orga organi niza zati tion onal al cul cultu ture re.. Performance management sets stretching and challenging goals.
Percentage 100% 100% 100% 80% 73% 63% 63% 63%
Negative statements
Respondents’ views on gave performance statements can be clearly comprehend through below table
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Table 4.15 Statements
Percentage
Performance ma management is is bu bureaucratic an and ti time co consuming. Line managers op operate the performance ma management process.
93% 40%
Analysis:
Respondents were particularly “positive about integrating, motivating and developmental aspects of performance management”. Majority (93 percent) “did not feel that performance management is bureaucratic and time consuming”.
6. Criteria of measuring performance Following table shows the order in which performance measurements were ranked as very important and important by the respondents. Criteria of Measuring Performance 53%
Business Awarness
67%
Financial Awarness
a i r e t i r C
Flexibility
80%
ALG P obj w ith ORG obj
80%
Personal Productivity
87%
Customer Care Care
87%
AHT AHT of Objectives Objectives
93%
CTN to Te am
93%
Working Relationship
93%
Quality
93%
Skills
100%
Competence
100%
0%
20%
40%
60%
80%
Percentage
100%
120%
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Analysis:
100 percent respondents felt “competence, skills/learning targets are import important ant criter criteria ia for measur measuring ing perfor performan mance” ce”.. Qualit Quality, y, workin working g relati relations onship hip,, contribution to team, achievement of objectives along with customer care and personal productivity were considered considered as important criteria for measuring. measuring.
6.Changes to performance management Equal opinion has been extracted from the above stated question. Table 4.16 makes this point clear. Table 4.16 YES NO DON’T KNOW
40% 40% 20%
Desire to bring changes to Performance Management 20% 40%
40% Yes Yes
No
Don't Don't Know Know
Analysis:
Quite a large proportion of respondents (40 percent) are “proposing to make make chan change gess to thei theirr perf perfor orma manc ncee arra arrang ngem emen ents ts over over the the foll follow owin ing g 12 months”.20 percent of respondents don’t know regarding bringing changes.
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8. Key factors to determine performance management effectiveness effectiveness Following are the factors which are in the order in which they were ranked by the respondents. 1. Achieveme Achievement nt of targets/g targets/goals oals set set by the organiz organization ation.. 2. Chan Change gess in atti attitu tude de.. 3. Develo Developme pment nt of compet competenc ence. e. 4. Impro Improve ved d qua quali lity ty.. 5. Deve Develo lopm pmen entt of skill skill.. 6. Sett Settin ing g of of targ target ets. s. 7. Improv Improving ing person personal al product productivi ivity. ty. 8. Moti Motiva vati tion on.. 9. To identify identify potential potential employe employeee for taking up higher higher responsibi responsibilitie lities. s. 10.To decide rewards and recognition. 11.Establishing two-way communication. 12.Improved customer care. 13.Changes in behavior. 14.Reduced labour turnover. 15.Working in given time frame. Analysis:
“Achievement of targets/goals, changes in attitude, development of competence, improved quality and development of skill occupied the first 5 ranks”.
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9. Rating the overall performance of the organization against the
rest of organization Company stand in the competitive world is encouraging and outstanding. Rating in the industry indus try
26%
14%
14% 10%
29% 7%
M ar k e t s har e
Qualit y o f w or k f or ce
Ef f icie ncy
Cos t
Inno vat ive cap acit y
Qualit y of good s o r s e r vice s
Analysis:
The performance of the organization is in top position especially in deli delive veri ring ng qual qualit ity y good goodss (top (top 60 perc percen ent) t) and and in inno innova vati tive ve capa capaci city ty (53 (53 percent).
Organization must look at the best practices in other areas (cost,
efficiency, quality of workforce and market share) which are failed to fetch top ratings and which are affecting the performance perfor mance of the organization.
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FINDINGS The present study was undertaken with an objective of evaluating how well the performance management systems are designed and put into action in The Himalaya Drug Company. The investigator keeping in view the objectives of the study, gathered the data and analyzed to arrive at conclusions. The following are the principle findings of the study and are ar e based on the empirical evidences. 1. Organi Organizat zation ion recogniz recognizes es perfor performan mance ce manage managemen mentt as a joint joint proces process, s, which which requires managers and team leaders to identify in discussion with individual team members (or their teams as a whole) what support they need, to do their work well. 2. The use of 360-degre 360-degreee feedback feedback is still fairly fairly small (20 percent). percent).But But interest interest is growing as the value of obtaining feedback from a number of different sources is becoming recognized. 3. The need for rating is often justified by the need to have a basis for “Performance Related Pay” decisions. Survey revealed considerable hostility to ratings shared by people at all levels in the organizations concerned.
4. Perform Performanc ancee is recogniz recognized ed as a means of identi identifyi fying ng training training needs. needs. But the developmental aspects of the process were, strangely neglected.
5. Orga Organi niza zati tion on appr apprec ecia iate ted d that that the the grea greate test st to be deri derive ved d from from perfo perform rman ance ce management is the role it can play in continuous Personal Development Plans (PDPs).But supports and actions for its implementation are merely ignored.
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6. Organizati Organization on follows follows the performance performance appraisal appraisal scheme, scheme, in which the appraisa appraisall meet meetin ing g is an annu annual al even eventt or bi-an bi-annu nual al even event, t, invo involv lvin ing g toptop-do down wn and and unilat unilatera erall judgme judgments nts by superi superiors ors of their their subord subordina inates tes.. Percei Perceivin ving g it as a continuous process, which focuses on the future rather than the past through shared understanding, mutual agreement and mutual commitments are yet to be perceived.
7. Surv Survey ey make makess it clea clearr that that perfo perform rman ance ce mana manage geme ment nt is a way way of enha enhanc ncin ing g individual performance. The setting of performance targets is inevitably agreed by all as a successful strategy.
8. Orga Organi niza zati tion on has has not not made made any any spec specia iall arra arrang ngem emen ents ts to prom promot otee team team performance
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SUGGESTIONS The The fore forego gone ne disc discus ussi sion on has has led led the the inve invest stig igat ator or to put put fort forth h the the foll follow owin ing g suggestions as guided by the project study. 1. Duri Durin ng perf perfor orm mance ance revi review ew,, not not onl only KRA’ KRA’ss but but als also the the qua quality lity of depa departm rtmen enta tall acti activi viti ties es of the the enti entire re year year shou should ld be give given n prio priori rity ty and and prominence.
2. Team Team alignm alignment entss / knowledg knowledgee transfer transferss shall shall be arrange arranged d at least least once in a year as it helps in the overall personality development of the employees, resulting in increased productivity.
3. Proper and and adequate adequate resources resources are to be provid provided ed to the employe employeee in order to achieve targets on time 4. Job rotation rotation (periodical (periodically) ly) and cross functiona functionall activities activities are to be encourage encouraged d 5. Regular Regular and continuou continuouss reviews reviews on performance performance 6. 360 degr degree ee appr apprais aisal al at all all level level 7. A sepa separa rate te coun counse selo lorr or empl employ oyee ee who who is good good in coun counse seli ling ng has has to be appointed as a counselor to solve appraisees’ problem, which affect their performance in the organization. organization.
8. Performance management should address both the aspect of performance -
what what people people achiev achievee and how they they achiev achievee it. This This enable enabless perform performanc ancee expectations to be defined and managed and provides the basis for taking
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steps to improve performance by changing behavior or developing skills and competences. It should be focused on the things that matter in organizations mainly the critical success factors and core competences.
9. Mana Manage gers, rs, team team lead leader ers, s, indi indivi vidu dual alss and and thei theirr repr repres esen enta tati tive vess shou should ld be involved in the design of performance management processes to ensure that they meet their needs. The use of a range of communication channels is desirable to ensure that everyone understands what performance management means, how it will affect them and the part they will be expected to play. 10.Ownership should be given to those who experience the process. People have got to feel that this is their process, which will help them as well as the organization.
11.More interaction with managers during appraisal
12.The role of managers during the meetings is not only to provide constructive feed feedba back ck but but also also to list listen en to what what indi indivi vidu dual al have have to say say abou aboutt thei their r performance and development needs. needs.
reducee the the subj subjec ecti tivi vity ty of perfo perform rman ance ce mana manage geme ment nt syst system emss and and to 13. To reduc increase the focus on continuous improvements, organization has to move from ranking system to summary statements which are behavior oriented and more focused on future improvements.
14. A separate performance review form has been suggested by the investigator. (See annexure -3 given in the last part of this project)
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SUGGESTIONS FROM THE EMPLOYEES 1. Perform Performanc ancee apprai appraisal sal should should be unbias unbiased. ed. It should should be restri restricte cted d only only to official things and personal matters should not be involved in the discussion. 2. The review review,, to a greate greaterr extent extent depends depends on the influen influence ce of the boss or the head of the department in the organization. This should be eliminated. 3. The organization’s goals and vision needs to be clearly communicated to
everyone so that industrial goals can be analyzed in the same direction
4. Empl Employ oyee eess work workin ing g in diff differ eren entt divi divisi sion onss shou should ld be trea treate ted d equa equall lly. y. Disparity and discrimination should be condemned/discouraged condemned/discouraged..
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CONCLUSION Finally, the investigator hopes that if the company implements the above suggestion suggestions, s, it would enhance the growth growth further. further. The job ahead in this vital area of performance management is clearly a difficult and challenging one. The H.R. department will need more technical competence and better professional training to make all employees contribute to the success of the organization in an ethical and social socially ly respons responsibl iblee way. way. The focus in the coming coming years years must must be on people people-sensitive management styles and practices. With it, not only corporate welfare but also the well-being of the individual will be insured. You can buy a man’s time. You can buy a man’s physical presence in a given place. You can even buy a measured number of skilled muscular motions per hour or per day .But you cannot buy devotion of hearts, minds and souls. You have to earn those things.
