Assignment of Performance and Compensation Management
Assignment of Performance and Compensation Management
Topic – Prepare a research based report to identify differences and similarities in performance
management system in Indian and multinational companies in India with relevant literature and
review.
Manpreet kaur
Romanpreet kaur
Meaning of Performance management system
Performance management is a tool that helps managers monitor and evaluate employees'
work. The goal of performance management is to create an environment where people can
perform to the best of their abilities and in alignment with the organization's overall goals.
Performance management is widely used in both the private and public sectors.
The goal, mission, and vision of a company bring its different departments from the
sale, Information Technology (IT), Business Analyst (BA), and, not limited to the
Performance management, is what constitutes a functioning enterprise. The PM is the
source of bringing together different parts of a company to function as a single entity.
According to ( Ammons and Roenigk (2020), successful PMT requires devolved decision
authority. That is, meaningful decision-making must be placed in the hands of managers at
the program level (department and sub-unit levels), where those best equipped with
insights can make needed changes. The authors' analysis sampled 62 selected cities and
countries.Their empirical findings showed a positive relationship between devolved
decision authority and reported Performance management success. Especially when
managers both have and perceive that they have meaningful discretion. The conceptual
underpinnings of Performance management are outlined in PMT doctrine (Moynihan,
2008). Also includes the principles and practices thought to be integral to the success of
Performance management.
Faozen, Faozen & Sandy, Shah. (2024). Performance Management: A new approach in
performance management. 10.5772/intechopen.1002501.
Moynihan (2008) focuses on the principle of devolved decision authority and its importance
as an element of PMT success. Devolved decision authority, the author suggests, becomes
most effective when both the grant of authority is real, and managers are willing to
acknowledge that they have it. The presence of both conditions
substantially increases the likelihood of PMT success.
They used90 degree appraisal techniques in the firm, means employee will get feedback
from one head it could be line manager or the head of the department. It is a single person
review system. Means at the end of the financial year, employee get feedback from the one
head only like from line Manager.
Tata Motors Limited, like many large organizations, likely has a comprehensive performance
management system in place to monitor, evaluate, and improve the performance of its
employees. Here's a detailed explanation of what such a system might entail:
Goal Setting: The performance management process often begins with setting clear and
measurable goals for each employee. These goals are aligned with the company's overall
objectives and may be established collaboratively between managers and employees.
Regular Feedback: Tata Motors likely emphasizes regular feedback sessions between
managers and their direct reports. These sessions provide an opportunity to discuss
progress towards goals, identify areas for improvement, and offer praise for
accomplishments.
360-Degree Feedback: Tata Motors may utilize a 360-degree feedback system, where
employees receive input on their performance from multiple sources, including peers,
subordinates, and supervisors. This comprehensive feedback can provide a more holistic
view of an employee's strengths and areas for development.
Training and Development: Based on performance appraisals and feedback, Tata Motors
likely invests in training and development initiatives to help employees enhance their skills
and capabilities. This could include technical training, leadership development programs, or
coaching opportunities.
Recognition and Rewards: High performers at Tata Motors may be recognized and
rewarded for their contributions to the organization. This could take the form of monetary
bonuses, promotions, or non-monetary rewards such as public acknowledgment or
additional responsibilities.
Performance Improvement Plans: For employees who may be struggling to meet
performance expectations, Tata Motors may implement performance improvement plans.
These plans outline specific actions and milestones for improvement, with regular
checkpoints to monitor progress.
Succession Planning: As part of its performance management system, Tata Motors likely
engages in succession planning to identify and develop future leaders within the
organization. This ensures a pipeline of talent ready to fill key roles as they become vacant.
Overall, Tata Motors' performance management system plays a crucial role in driving
employee engagement, fostering development, and ultimately, contributing to the
company's success in the highly competitive automotive industry.
Reliance Industries Limited is an Indian multinational conglomerate headquartered in
Mumbai. Its businesses include energy, petrochemicals, natural gas, retail,
telecommunications, mass media, entertainment, and textiles.
Owner: Mukesh Ambani
Subsidiaries: Reliance Retail, Jio-bp, Jio Platforms, Network18, MORE
Stock price: RELIANCE (NSE) ₹2,906.55 +4.60 (+0.16%)
Founder: Dhirubhai Ambani
President: Mukesh Ambani
Headquarters: Mumbai
Revenue: 9.75 lakh crores INR (US$120 billion, 2023)
Founded: 1957, Maharashtra
SALES EXECUTIVE
SENIOR MANAGER
SALES EXECUTIVE:
For the sales executive different methods can be used as follows:
1) Field review method
2) MBO
Field review method-In this method evaluation is done on the basis of 2 phases so as to to
reduce the biasness and to reach at the consensus. Phase I: Interviewing the line managers
to evaluate their respective employees. This phase is handled by HR functionary. Phase: II:
HR functionary, generally, appoints a small group of rater to rate the each and every
employee for every managerial unit.
Reliance should conduct the performance appraisal in the month of April annually.
Employee need to set goals yearly in the month of April.
Employee has to select all 4 verticals and under each vertical, choice of objectives
and challenge's are given and employee has to choose.
One of the additional goal can be set by the employee.
Quarterly Meeting will be done by immediate manger and it will be of purely
“Professional Discussion”. Employees has to take initiative of its own and invite
manager for this discussion.
Quarterly Meeting will be in June, September and December. In meeting, Graph
Representation of employee performance will be shared by manager quarterly. And
Guidelines and problem faced in the critical situation to be discussed.
Based on their performance, increments will be given in their pay.
If an employee achieves or exceeds the target given along with their team will be
provided with attractive cash and incentives.
They should specifically targets working women and men who could be the potential
consumers.
They should have its own training division for its entire employee Development.
Employees will be given 20 days of training to enhance their skills requirements.
REWARD
SENIOR MANAGER:
For the senior manager different methods can be used as follows:
360 Degree appraisal method-
Many firms have expanded the idea of upward feedback into what the call 360-
degree feedback. The feedback is generally used for training and development,
rather than for pay increases. Most 360 Degree Feedback system contains several
common features. Appropriate parties – peers, supervisors, subordinates and
customers, for instance – complete survey, questionnaires on an individual. 360
degree feedback is also known as the multi-rater feedback, whereby ratings are not
given just by the next manager up in the organizational hierarchy, but also by peers
and subordinates. Appropriates customer ratings are also included, along with the
element of self-appraisal. Once gathered in, the assessment from the various
quarters are compared with one another and the results communicated to the
manager concerned
1. In 360 degree appraisal technique: SELF and MANGER EVALUATION FORM is also
there which is known as Employee Performance Review Form. In this, goals are given
with percentage weightage like –
2. Senior employees are judged from different perspectives and it helps them to
identify the changes required to be more acceptable, and it also helps them to
enhance their skills.
3. It reduces the biasness as subordinates as well the peers can judged the
performance of the senior level employees.
4. Appraisals that are based on Balanced Scorecard, can tracks the achievement of
employees at four levels -
REWARD
From my point of view, adoption of “Balance scorecard” and “360 degree appraisal
method” is perfect for RELIANCE SENIOR MANAGER POSITION because:
• 360 DEGREE APPRAISAL provides feedback from every perspective and reduces the
biasness at each and every level
Though 360 degree is not effective in India as people still hesitate to use this method
because –
The organizations are ruled as per hierarchy
Subordinates do not open up about their boss.
Managers Nature
Power and Politics exists in organization
Majorly, vertical communication (Top to Down).
But it could be one of the most effective methods for evaluating the performance of
the senior level employees.
Indian Oil Corporation Limited is an Indian oil and gas company under the ownership of the Ministry
of Petroleum and Natural Gas, Government of India. Headquartered in New Delhi, it is a public
sector undertaking whose operations are overseen by the Ministry of Petroleum and Natural Gas.
Wikipedia
Divisions: IndianOil (Mauritius) Limited; Lanka IOC PLC; IOC Middle East FZE
ISIN: INE242A01010
Goal Setting: The performance management process often begins with setting clear and
specific goals for employees at various levels. These goals should be aligned with the overall
objectives of the organization and should be SMART (Specific, Measurable, Achievable,
Relevant, and Time-bound).
Regular Feedback and Monitoring: Supervisors and managers provide regular feedback to
employees regarding their performance. This feedback can be informal, such as regular one-
on-one meetings, or formal, such as mid-year and annual performance reviews.
Training and Development: Based on the performance appraisal results, IOCL may identify
areas where employees need further training and development to improve their
performance. Training programs and development opportunities are then provided to
employees accordingly.
Reward and Recognition: High-performing employees are often rewarded and recognized
for their contributions to the organization. This could include bonuses, salary increments,
promotions, or other forms of recognition.
Career Planning: IOCL likely helps employees in career planning by providing them with
opportunities for growth and advancement within the organization. This may involve
identifying potential career paths, succession planning, and providing support for skill
development and career advancement.
It's essential to note that the specific details of IOCL's performance management system,
including policies, procedures, and tools used, may vary and evolve over time. For the most
accurate and up-to-date information, you may need to refer to IOCL's internal documents or
reach out to the company directly.
1. Refineries Division
2. Pipelines Division
3. Marketing Division
Business model
Lenskart offers over 5000 frames & glasses and more than 45 kinds of high quality lenses.
They follow an inventory-led business model with equal sourcing done from India & China.
Their in-house team of stylists and designers keep a tab on latest trends in eyewear. These
designs are then passed on to the manufacturers. They keep costs under control by owning
In order to reach the masses they have also ventured into offline stores thru the franchisee
model. They have more than 50 stores across 30 cities with a target to cover ~50 cities by the
year end. They have balanced the reach by spreading out across metro & non-metro
locations.
They are currently serving 4000 people a day and are looking at scaling it to 200,000 people a
day in the coming years. To help in this effort they have a team of close to 1000 people which
Value Proposition
There are 3 success factors in this industry viz., quality of product & product portfolio,
delivery time & after sales service. Their value proposition is simple — provide high quality
Funding
As of January 2015, they have secured 3 rounds of funding with the latest round of funding
Secured Rs.140 crs ($22 mn) from TPG Capital & IDG Ventures in early 2015
Revenues
They have done revenues of Rs.100 cr in the last calendar year and are growing at 15%
month on month basis. They expect to reach Rs.250 crs by March 2016.
Competition is clearly heating up in this space with players like GKB, Lawrence & Mayo,
Titan Eye+ & Bausch & Lomb. At the moment Lenskart is the clear leader in the market,
A common question which consumers ask is how one can buy eyewear. The touch &
Growth Drivers
“First frame free” offer — Where customers will pay for only the lens on their first
“Try at home” — where customers can choose of a maximum of 5 frames & try them at
home before making a final purchase. This has led to more sampling by customers.
They have been doing 1500 check-ups a day and have a conversion of ~50%
GOLD MEMBERSHIP
HUMAN RESOURCE POLICIES
Human Resource Policies refers to principles and rules of conduct which “formulate,
redefine, break into details and decide a number of actions” that govern the relationship with
employees in the attainment of the organization objectives.
Policy of hiring people with due respect to factors like reservations, sex, marital status, and
the like.
Policy with regard medical assistance-sickness benefits, ESI and company medical benefits.
Policy regarding training and development-need for, methods of, and frequency of training
and development.
Due to high level of secrecy maintained in the organization, the policies given below are
according to my understanding and interpretation of the subject.
1. RECRUITMENT POLICY
Systematic Job Rotation from time to time shall have a revitalizing effect on
the individual as well as the organization.
5. COUNSELLING
HODs and above identify successors, primary and secondary, to his position at the
time of annual appraisal. This is reviewed every year along with the annual appraisal.
The system has two layers of security. Access to the system is through keying
in the valid combination of username and password. Permission to access
certain programs is restricted to identify key personnel.
Microsoft employees recently ranked the company’s culture higher than any other company
with over 500 employees. Microsoft even beat out HR darling Google for the top spot.
The software giant’s high ranking is due to factors including fairness and trustworthy
management. These two factors play a big role in performance management, which is one
of the keys to Microsoft’s success.
This article will show you what Microsoft’s performance management process looks like
now. We’ll also show how their willingness to change processes has helped them get to
where they are today.
Out with the Old: How Microsoft Has Changed Its Performance Management Process
Annual performance reviews are the norm at many organizations, and they used to be the
norm at Microsoft. There’s something intuitive about meeting once a year to talk about
employee contributions and goals for the upcoming year.
Yearly performance appraisals seem like the natural way to review employees. That doesn’t
mean they are the best way to review employees.
Annual appraisals can feel heavy, and they rarely impart useful or actionable information.
Here are some of the common complaints about annual reviews:
These annual reviews end up becoming another thing management has to check off their to-
do list. Employees do what they can to get through the meeting, then return to work
without internalizing any of the information.
Annual reviews were driving many of the Microsoft performance management issues in the
past, so the company made some changes. The new process focuses on each employee’s
role in the future of the company rather than their past performance.
The key to this performance review process is its flexibility. There are three components to
the process, but employees don’t have to complete every component in order, or at all,
before a performance review.
Employees don’t have to write detailed performance journals to create goals. The team
doesn’t have to set up goals before conducting a performance review either. This approach
creates a nimble process.
PerformYard's flexible software can help you build your own performance management
system.
Microsoft’s performance journals include a 360 review process. Employees can send
feedback to any employee in the organization. The employees involved and their managers
will be notified of the review and the review is stored in the employee journal.
Journals are an example of the laid back approach to performance management. Employees
and managers aren’t required to share their performance journals with others. There are no
rules for word count or number of entries ahead of a performance review. The journals are
a tool for employees to support their performance.
Microsoft provides employees with a platform to manage and track their goals.
Management and employees can assign goals, and the performance journal links to goals.
Goals are not required for performance reviews, although managers may choose to include
them as part of the review process. This approach enables managers and employees to
conduct reviews whenever they are convenient, even if there isn’t enough time to create or
review goals in-depth.
Introduction
Employees’ performance for all companies is how achieving their work jobs and proceed
their required missions through refers to the activity, quality, and competence of their
output. Employees’ performance is very important for every business corporation, but their
effectiveness depends on how they are conducted. Therefore, performance is the good way
to assessment of how valuable an employee is to the profit and non-profit organization.
company, it can be measured employee performance by: Speed and efficiency that achieve
through formal work period that could enable higher productivity, quality of the
employee’s work that contribute something good to brings the corporation added value,
and trust to the employee that to be depended on making best decisions and perform his
jobs. Apple Company has a strategic plan on it life business. This plan leads to achieve many
targets. Apple Company decides on the appropriate actions necessary to meet the targets.
Then, Apple company implement, review, and adjust the targets as needed. Advantages of a
good performance management system on this company are increased employee loyalty;
improve communication between the various levels of management, increased outputs, and
increased efficiencies.
Many people dream of working at Apple—and for good reason. Aside from providing
discounts on its products, Apple works consistently to increase employee retention and
prioritize its workers.
So how does Apple help its employees feel valued? One way is through a strong
performance management process.
Unfortunately, Apple doesn’t make it easy to recreate their process. The company mostly
keeps its performance review system under wraps, but they’ve let a few secrets slip to give
some ideas for your own performance management process.
Apple’s annual performance review process includes a semi-annual review and an end-of-
year review. Each employee is reviewed by three or four executives, in addition to being
reviewed by direct reports and peers, making it a 360 process. This helps Apple to get a
broader view of every employee’s performance, creating new perspectives on how each
employee impacts the organization and where improvements can be made.
Based on those categories, employees will receive one of three ratings: exceeds
expectations, met expectations, or needs improvement.
Not only does this help employees understand how management and other team members
believe they’re doing, but it also helps HR determine skills gaps among employees.
Managers can then work to help underperforming employees develop the skills needed to
excel, or HR can focus on recruitment efforts to find new employees with skills that are
missing among current employees.
Employees' annual raises are directly tied to their performance reviews, ranging from 0-8%
of their current salary.
Feedback
Apple is tight-lipped about their specific feedback practices, but based on our research,
we’ve found that feedback is a key component of Apple’s performance appraisal system.
Apple incorporates continuous feedback, and employees receive feedback once a week.
Whether feedback is delivered through check-ins or written in their performance
management system, continuous feedback provides insight into performance and helps
Apple employees understand where they can improve in their daily efforts.
Cascading Goals
Cascading goals begin with the company's ultimate vision and are reinterpreted for every
department and employee to ensure individual and team performance are aligned with
those goals