M2019HRM046 - Cipla - Performance Management Assignement

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Tata Institute of Social Science

Human Resource Management and Labor Relations

Performance Management
Fieldwork Organisation : Cipla Limited
Pritam Avhad
m2019hrm046@tiss.edu
March 13, 2020

Contents
1 Introduction 2

2 Context 2
2.1 Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Management Style . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3 Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3 Content 4
3.1 Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.1.1 Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.1.2 Performance review . . . . . . . . . . . . . . . . . . . . . 5
3.2 Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2.1 Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2.2 Performance review . . . . . . . . . . . . . . . . . . . . . 8
3.3 Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

4 Process 9
4.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.2 Feedback/review . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.3 Counseling/Coaching . . . . . . . . . . . . . . . . . . . . . . . . . 10

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1 Introduction
”There is something that is much
more scarce, something rarer than
ability. It is the ability to
recognise ability.”

Robert Half

Performance management is a strategic and integrated approach to delivering


sustained success to organisations by improving the performance of the people
who work in them and by developing the capabilities of teams and individual
contributors.

Specifically, performance management is about aligning individual objectives to


organizational objectives and ensuring that individuals uphold corporate core
values. It provides for expectations to be defined and agreed in terms of role
responsibilities and accountabilities (expected to do), skills (expected to have)
and behaviours (expected to be). The aim is to develop the capacity of people to
meet and exceed expectations and to achieve their full potential to the benefit
of themselves and the organization. Importantly, performance management is
concerned with ensuring that the support and guidance people need to develop
and improve are readily available.

2 Context
2.1 Culture
Culture is the most powerful and intangible ingredient of performance manage-
ment. Culture means various things to various people. Difficulty in managing
culture primarily arises due to its intangibility; but at the same time influence
of culture is all pervasive. Each individual is affected by culture. Thinking,
feeling, perceiving and consequently behavior of people is influenced by the cul-
ture they live in. This difficulty grows when realization occurs that a particular
culture very effective in the same organization in one location is proved to be
the most ineffective in other location

Cipla has been built brick by brick on the foundation of Care. We are driven
by this purpose – a purpose that is 82 years young and it lies at the center of
all our thoughts and plans, driving our actions. We do the right thing, the right
way – even if no one’s watching. We place our integrity at the core of all our
endeavours and take pride in the trust our stakeholders place in us and the trust
we place in them.

And this is our OneCipla Credo.

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Figure 1: Culture to Performance Management

In being purpose inspired, we look at actions and solutions that are sustain-
able and lead to ‘Caring for Life’

Five Principled Values :

1. Purpose - Inspired
2. Responsibility - Centered
3. Innovation - Driven
4. Integrity and Trust - Anchored

5. Excellence - Focused

2.2 Management Style


Management Styles Generally, three broad management styles have been ac-
knowledged. They are: Autocratic, Paternalistic, and Democratic styles.

Cipla Managers are Paternalistic managers; act as a father figure to employ-


ees. They are very concerned about the social needs of their subordinates.
They consult employees over organizational issues and then they make deci-
sions based on the best interests of the employees. This management style is
closely linked with Maslow’s social theory.

No management style is better than the other but it all depends on the situation
they are applied. The extent to which they are successful in each situation is
contingent on several factors such as number of employees, their level of ed-
ucation/development, how fast the decision needs to be made, organizational
culture, type of organization, etc.

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Advantages of Paternalistic management styles :
• More two-way communication, which is motivating
• Workers feel their social needs are being met
Disadvantages of Paternalistic management styles :

• Slows down decision making


• Still quite a dictatorial or autocratic style of management

2.3 Structure
In Cipla ,steps associated with performance management include reviewing or-
ganizational goals, prioritizing work, specifying targets, identifying specific mea-
sures and metrics, aligning employees’ goals to the company’s strategic objec-
tives and defining standards. For example, you may institute a rating system
with three levels: below expectations, meets expectations and exceeds expecta-
tions. Managers conduct appraisals and develop plans to address any gaps in
performance as well as rewarding exemplary behavior in the organization, which
could lead to promotions, lateral moves or expansion of responsibilities.

Cipla has a divisional organization, a central headquarters supports several au-


tonomous divisions or departments that make their own decisions and may have
their own performance management policies, procedures and standards. If your
company has a wide range of products and services, operates in many different
locations or supports many different types of customers, you may need this type
of flexibility in performance management. Conversely, this may lead to conflict
if employees feel they are being treated unfairly.

In Cipla Organizational structures inhibit or promote performance, depending


how effectively the supervisory relationships and workflow influence productiv-
ity. These define departmental structure and the reporting hierarchy.

3 Content
3.1 Procedures
3.1.1 Supervision
Employee will meet with their manager for a formal supervision session. Em-
ployee may request informal consultation or direction from manager at other
times, and manager will attempt to meet these requests within a mutually agreed
time frame.

Formal supervision sessions will be held in a meeting room that provides privacy.

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Supervision sessions will be structured so as to enable the employee member
and manager to:
• identify and agree on KPI/work plans or tasks;
• discuss any issues of concern or impediments experienced in performing
duties;
• discuss strategies or actions for achieving desired outcomes;
• set priorities for the coming period; and
• identify any professional development or training needs.

3.1.2 Performance review


The performance review is to be conducted by the employees’ line-manager. It
is their responsibility to schedule the review at a mutually convenient time.

Timing The first performance review will occur three months after appoint-
ment, then annually thereafter. More frequent reviews e.g. Quarterly or 6-
month, may be held as agreed between the employee, manager/supervisor, Man-
agement and Human Resource Department.

Review process
• The employee completes a self-appraisal.

• The completed self-appraisal is made available to the reviewer (Manager)


at least 3 days prior to the review meeting.
• Managers prepare their own assessment comments for the review meeting.
• The employee, and Manager meet to discuss findings, performance, future
goals and development needs. The discussion includes opportunities for
both parties to clarify and explain their comments.
• The outcome is documented and agreed actions included into relevant
work plans.

Review discussion The line-manager will address the following in discussion


with the employee:

1. Review work goals.


• Review the statement of duties and any other documentation about
the role, ensuring that the position description reflects the current
duties of the role.
• Review work goals established at the last review.

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2. Review performance
• Review progress against documented work goals
• Review assessment information provided by employee, reviewer and
any others, identifying areas of strength and achievement and areas
for improvement
• Review impediments to work performance and factors impacting on
the person’s job performance and satisfaction
3. Identify action
• Identify any training and development needs, focussing on areas that
could be improved or where outstanding performance could enable
the employee to play a mentoring and support role with other em-
ployee.
• Identify any resourcing or support required.
• Identify any other action.
4. Agree goals for next twelve months (short period can be arranged if nec-
essary).
• Review the organisation’s strategic plans and the team’s objectives
or service plan.
• Establish work goals which are closely related to the job role and the
outcomes required in the objectives.
• Agree how the goals will be measured and reported.
• Identify any training and development needs necessary for the em-
ployee person to achieve the goals.
• Where performance is satisfactory or above satisfactory, identify any
incentives, rewards or recognition appropriate to acknowledge the
achievement of goals.

Managing Poor Performance If, as the result of a performance review,


performance problems are identified, Manager and HR representative will im-
plement the following steps:

Formal counselling (first warning) A meeting will be scheduled and the


employee member informed of the reason. The manager will:
• Ensure the employee understands the objectives and serious nature of the
counselling.
• Give the employee the opportunity to have an observer or union represen-
tative present.
• Identify and agree on reasons for non-achievement of goals.

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• Clarify for the employee member why their performance is unsatisfactory
and the possible ramifications.
• Discuss a plan of action to address the reasons.
• Provide them with the opportunity to respond.

• Set a timeframe by which the performance issues will be addressed. 6-8


weeks is recommended.
• Identify any further training and development needs necessary for the
employee member to achieve the goals.

Document the interview including all agreed outcomes. Where a formal coun-
selling process has commenced, the manager will notify the HR Manager.

Formal counselling (second warning) If the performance issues have not


been addressed within the agree time frame, the Manager will schedule another
review meeting at which the issues will be reviewed and a revised timeline agreed
for the performance issues to be addressed. 4-5 weeks is recommended.

Final warning If after the first and second warnings have been given and the
performance does not improve then the Manager will schedule a final warning
meeting. The purpose of this meeting is to clarify for the employee member
that they are required to address the issues immediately and advise them of
the options if they do not achieve the agreed goals. The Management or HR
representative will be asked to attend this meeting.

Termination The Manager will consider all other options available including
extension of probation, restricting work role, delaying salary progression. If
there is still no agreed improvement in performance, then termination may be
the final step.

Before commencing dismissal processes, Management and HR representative


will review all documentation to ensure that the processes have been fair and
objective and that the employee has been given both the opportunity and the
support to improve their performance.

3.2 Guidelines
3.2.1 Supervision
The purpose of the regular supervision process is to provide accountability and
direction for work completed within a period and
• ensure that each employee member is completing agreed activities satis-
factorily;

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• identify any impediments to the satisfactory completion of tasks;
• identify any assistance, resources or professional development required;
and
• reach agreements about work goals and performance for the coming period

3.2.2 Performance review


The purpose of the employee performance review process is to provide a formal
assessment of work performance over a longer period and
• develop agreed realistic expectations in relation to the employee member’s
position description and work plan, against which assessment of perfor-
mance can be made;
• provide a formal means by which achievements can be assessed and recog-
nised;
• discuss and document how the employee is performing from their point of
view and from their manager’s/supervisor’s point of view;
• seek a common ground for ways to improve employee performance where
needed;
• identify strengths in skills and knowledge and consider if these can be
better utilised;
• identify any weaknesses or problems in performance from the point of view
of the employee and their supervisor;
• identify training needs and discuss other forms of support or on-the-job
development required; and
• reach agreement on any specific goals to be pursued in the period following
the assessment.

3.3 Documentation
• A record of the main discussion points and agreed actions is written at
the meeting or immediately by Manager
• The record of discussion is reviewed by Manager and employee, corrections
or changes made, and a final version signed by both parties.
• Documentation of the review should be completed within 2 weeks of the
review meeting.
• The record is kept on a confidential personnel file in HR Department
• The record is should be used as reference for the implementation of the
agreed actions and for consideration of progress at the next review.

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4 Process
4.1 Objective
Work Goals are projects or assignments related to the individual’s specific job
that help meet unit/department goals and have specific measurements and
deadlines. What, exactly, is this person supposed to accomplish in the next
6 months? Year?

Writing Next Year’s Goals:

• Look at current and new unit goals


• Look at employee’s functions and how they fit
• Look at employee workload
• Consider employee’s interests and strengths

• Provide a stretch if applicable


Examples of work goals:
1. Produce documentation of our business processes by end of Q2 2020

2. Develop a customer satisfaction survey and disseminate it to at least 70


3. Process all pending invoices within 30 days of receipt

4.2 Feedback/review
To get the most out of the feedback session, managers primarily conduct the
dialogue on three levels:
1. Appreciate current performance
• Don’t assume that the associate already knows how his/her perfor-
mance was.
• Express gratitude towards associate for his/her contributions to the
organization.
• Give examples and highlight instances.
• Don’t focus only on quantifiable results.
• Appreciate hurdles/ obstacles cleared.
• Mention accomplishments and accolades won and commendable be-
havior demonstrated.
• Comment on strengths.
2. Highlight potential improvement areas

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• Note that everyone has a scope for development.
• Don’t just focus on negative. Instead, specify areas of improvement.
– High performers: Help them figure out ways in which they can
unlock the next level of performance. It can be in terms of a new
sales target, a promotion or personal growth.
– Average performers: Give them specific instances and examples
of things that didn’t work out as per the plan and how the same
could have been done better.
– Low performers: Make them comfortable with the fact that there
are improvement opportunities available.
• The conversation should also highlight the obstacles faced by the
associate and how the same can be overcome.
• Focus more on potential improvement and less on criticism.
3. Speak about self development,long term goals and career plan
• Ask the associate what motivates him/her.
• Understand the value system the associate believes in.
• Give the associate a chance to reflect on his/her desired career path.
• Integrate the associate’s objectives with organization’s goals.
4. Ask for associate’s feed back
• Before wrapping up the session, ask for a feedback on how well you
are functioning as a manager.
• Ask the associate what the organization can do to support and en-
hance his/her performance levels.
• This helps in strengthening the associate’s relation with the team
and the organization.
• It also shows that the organization is genuinely interested in helping
the associate achieve what they want to achieve.

4.3 Counseling/Coaching
The purpose of performance coaching is not to make the employee feel badly, or
to show how much the HR expert or supervisor knows. The goal of coaching is
to work with the employee to resolve performance dilemma and get better the
work of the employee, the team, and the department.

Nowadays, it’s important to get the most production from each employee ef-
ficiently and effectively. Organizations must make sure that every worker per-
forms to the best of their ability and delivers substantial worth to the business.Â
One leading matter that almost every company deals with is the challenge of
dealing with worker performance reviews.

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Counselling is a more individual attempt. It is harder because there are no
clear answers. It requires the supervisor to really pay consideration to the work
and career related concerns of the subordinate. A person stressed with his
project or doubtful her abilities want more than exhortation or training class.
They require to be heard and understand first before they will open themselves
to support and new approaches. Even employees with family or financial prob-
lems need to be heard first before they can be approved along to right company
resources (e.g., employee assistance programs).

List of Figures
1 Culture to Performance Management . . . . . . . . . . . . . . . . 3

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