Building and Sustaining High Performance Cultures in Organizations

1. pms

2. Performance…….. PERFORMANCE IS KEY TO A COMPANY’S SUCCESS. IN A COMPETITIVE ENVIRONMENT, ORGANISATIONS THAT PERFORM, HAVE A COMPETITIVE ADVANTAGE. DEVELOPING A PERFORMANCE CULTURE IS THE KEY TO BECOMING SUCCESSFUL & EFFECTIVE. HEC BUILDS MACHINES THAT BUILD THE NATION

3. GlobalisationPrincess Diana’s death a british princess with her egyptian boyfriend travelling in a german car driven by a spanish chauffer chased by italian paparazzi riding japanese motorcycles crashes in a french tunnel treated by a portuguese doctor with brazilian medicines. I received this information on my finnish branded cellphone manufactured in taiwan, smuggled by a pakistani through nepal. HEC BUILDS MACHINES THAT BUILD THE NATION

4. Impact on HR • Competition for scarce skills • Specialists • Managers • Those who can foresee future / handle risks • Salaries rise • Competition erodes ability to pay all • Ability to upscale / downscale costs HEC BUILDS MACHINES THAT BUILD THE NATION

5. Impact on HR • Can organisations afford to remain with “comfortable” ways of the past? • Criticality of • Performance • Leadership, Strategic thinking • Greater need to differentiate • Performance • Potential HEC BUILDS MACHINES THAT BUILD THE NATION

6. Performance Management Process Environmental Factors *` Job Rotation, Enlargement Strategic Plans Potential Assessment Development Budget Training Performance Planning Workshop Some exits occur PMS Promotion PLR & Comp Review Career Planning * Economic, Business, Political, Social, Legal, International agreements, etc. HEC BUILDS MACHINES THAT BUILD THE NATION

7. The Complete HR Process Feedback of Company performance on Company’s plans Environmental Factors * Job Rotation, Enlargement Company Performance Strategic Plans Potential Assessment Development Budget Employee Performance Training Performance Planning Workshop Some exits occur PMS Promotion Engagement PLR & Comp Review Role & Value of a Position Career Planning Induction Organisation structure/plan Manpower Plan Recruitment HEC BUILDS MACHINES THAT BUILD THE NATION * Economic, Business, Political, Social, Legal, International agreements, etc.

8. Differentiation is essential HEC BUILDS MACHINES THAT BUILD THE NATION

9. IF YOU DO NOT DIFFERENTIATE, THE BEST WILL LEAVE, IF YOU DO THE WORST MAY LEAVE HEC BUILDS MACHINES THAT BUILD THE NATION

10. Differentiation is always possible Relative Rating HEC BUILDS MACHINES THAT BUILD THE NATION

11. Philosophy Do We Value Meritocracy • Differentiation is a driver for Performance • Relative Rating is the adopted method to achieve differentiation • Rewards directly related to Rating • Development needs are of equal importance • Two way Feedback will enhance Performance & Development HEC BUILDS MACHINES THAT BUILD THE NATION

12. Distribution Percentage HEC BUILDS MACHINES THAT BUILD THE NATION

13. The Look of the Bell Curve HEC BUILDS MACHINES THAT BUILD THE NATION

14. ISSUES • Alignment of individual objectives with company objectives • Setting of timely objectives • Mid term review to be made effective with focus on development • Feedback process to be strengthened and improved Why do we need to Hav HEC BUILDS MACHINES THAT BUILD THE NATION

15. ISSUE- Expectation Management • Balance Subordinate expectations • Communicate early and often • Be Transparent HEC BUILDS MACHINES THAT BUILD THE NATION

16. PMS Objectives • Managing expectations of both Superiors and Subordinates • Tracking promises (objectives set) made at the beginning of the year • Facilitating meaningful dialogue between Superior and Subordinate • Establishing clear linkage between Rewards & Performance ratings • Identifying Developmental needs of Appraisee HEC BUILDS MACHINES THAT BUILD THE NATION

17. Appraisal FEARS …….. HEC BUILDS MACHINES THAT BUILD THE NATION

18. Appraisal FEARS …….. Appraisee’s fears: • Will I be fairly judged? • Will my Self Esteem be affected? • Can I afford to be open? Appraiser’s fears: • If I am honest, will I hurt the employee? • How do I manage expectations? • Personal Insecurity HEC BUILDS MACHINES THAT BUILD THE NATION

19. COGS IN THE WHEEL HEC BUILDS MACHINES THAT BUILD THE NATION

20. Proposed System Two-way Feedback to Subordinate Moderation by Macro View Group Appraisal Process Mid Year Review Performance Planning HEC BUILDS MACHINES THAT BUILD THE NATION

21. Understanding Objective Setting Improve communication between IS and subordinate Have two way dialogue HEC BUILDS MACHINES THAT BUILD THE NATION

22. Objectives should be specific and measurable. Min.3 and Max. 5 objectives Should be in line with the objectives derived at PPW Performance Planning Objective Setting and PODP Performance Planning Workshop following the finalization of Company Annual Budget Cascading Business Objectives using appropriate methodology IS and appraisee decide on appraisee’s objectives PODP form to be jointly filled up during Objective Setting Exercise.

23. Mid Year Review IS conducts a Development discussion meeting on tasks, resources & way forward. Feedback taken from appraisee Now its your turn to give me feedback……. Focus on Development of Employee HEC BUILDS MACHINES THAT BUILD THE NATION

24. Actively seek feedback from Employee Job content Role Clarity Recognition Resources Learning & Growth Opportunities Departmental Support / Team work Other Facilitating / Hindering Factors HEC BUILDS MACHINES THAT BUILD THE NATION

25. Making the employee comfortable HEC BUILDS MACHINES THAT BUILD THE NATION

26. Comments may cover other significant achievements & context & situation in which results were achieved Appraisal Process Appraisee records achievements and sends to IS Based on volume of work , quality of output, speed & internal customer orientation IS appraises performance and gives a relative rating on a scale of 1-8 IS routes form with score and comments to NS HEC BUILDS MACHINES THAT BUILD THE NATION

27. Appraisal Process NS should also remark on comments of IS NS adds comments & routes Form to DH DH discusses with IS in case difference in rating is 2 or more DH arrives at normalized rating and gives his comments Form is sent to respective HR For revised objectives, both the forms to be sent to MVG Form is collated by HR and sent to MVG HEC BUILDS MACHINES THAT BUILD THE NATION

28. Appraisal Process MVG reviews and moderates rating in line with distributed percentages along with comments Form is sent to HR HR routes Form back to IS through reporting route MVG discusses with DH if difference in rating is 2 or more,DH conveys to IS HEC BUILDS MACHINES THAT BUILD THE NATION

29. Aspects of Feedback to Employee HEC BUILDS MACHINES THAT BUILD THE NATION 30 30

30. Deptt Head (E6) Func Dir E6 / E7 Sr Mgrs (E5) CMD Func Dirs E4 to E5 E1 to E3 E6 to E7 Composition of MVG Head of MVG Head of MVG MVG Members MVG Members Employee Employee Members shall be within 2-3 reporting levels of the employees appraised. Objectives: Push decision-making down. Line of sight. HEC BUILDS MACHINES THAT BUILD THE NATION

31. Constitution of MVG - Constitution of MVG - MVG should have at least 30 employees in a band for moderation purpose - Smaller departments to be clubbed to form one MVG In April HEC BUILDS MACHINES THAT BUILD THE NATION

32. IS receives Form and discusses MVG rating & category with NS/DH IS gives feedback to employee & communicates “Performance Category” IS explains the rationale of rating & how to improve ratings for the next year Feedback HEC BUILDS MACHINES THAT BUILD THE NATION

33. Process Related Measures • Performance Planning Workshops • Mid Year Review • Relative rating(1-8) by Immediate Superior • MVG composition • MVG rating category communication • People Development So, what are the issues in the PMS • Policy Related Measures • Coverage • Percentage Distribution • Measures for improving System Adherence • Issue of Reward Letters • Report to Functional Directors • System Monitoring • Training HEC BUILDS MACHINES THAT BUILD THE NATION

34. Multiple Reporting Both Superiors are involved in the entire PA exercise Appraisee reports functionally & administratively to different people Responsibility of Performance Review will be of the superior involved in Objective Setting Responsibility of Performance Review will be of superior who sets the Objective Both Functional and Taskforce / Project Head are involved in PA exercise Appraisee is a member of a Task Force / Project, while being based in a Department HEC BUILDS MACHINES THAT BUILD THE NATION

35. New Employees and Transferees • New employee will be covered if they have completed 90 or more days of service before 31st March • Transferees will go through the PA exercises in Departments where they have worked for more than 90 days. • Present DH will decide the final ratings after taking inputs from previous IS/NS and taking the PA form received from the previous and the new department in to consideration HEC BUILDS MACHINES THAT BUILD THE NATION

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37. In a class of eighth std students, a teacher asked , “What’s the difference between ‘satya’ (truth) and ‘bhram’ (illusion)?” After a longish pause, when no one answered, a backbencher, who had never ever answered any question in class had this to say:- What you told us is “satya”, but that you think that everything that you said has been understood by us is “bhram”. HEC BUILDS MACHINES THAT BUILD THE NATION