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.

Submitted to –Dr. Vidhu Gupta Submitted by – Samanpreet kaur

Manpreet kaur

Romanpreet kaur
Meaning of Performance management system

A Performance Management System (PMS) is a comprehensive approach that organizations

use to ensure that employees are working towards the achievement of the company's goals
and objectives efficiently and effectively. It encompasses various processes, tools, and
techniques to monitor, assess, and enhance individual and organizational performance.

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.

A performance management system tracks the performance of employees in a manner that

is consistent and measurable. The system relies on a combination of technologies and
methodologies to ensure people across the organization are aligned with – and contributing
to – the strategic objectives of the business. The system is collaborative, with managers and
employees working together to set expectations, identify employee goals, define
performance measurement, share employee performance reviews and appraisals, and
provide feedback. When properly defined and consistently applied, a performance
management system increases overall workforce productivity. Employees are more invested
in their work and turnover is minimized while revenue per employee is maximized.
 Literature review
Faozen, Faozen & Sandy, Shah, 2024)Performance management is the process of planning,
supervising, and improving the performance of individuals, teams, and the organization. The
goal is to increase productivity, set performance goals, measure performance, provide
feedback, develop performance, and support effective decision making. In performance
management, new approaches that are more oriented towards employee development and
engagement have replaced traditional approaches that focus on evaluation and control. This
research methodology is based on literature review and discusses competency-based
approaches, goals, and continuous feedback. Employee involvement in performance
management provides benefits such as increased satisfaction, motivation, individual and
team performance, skill development, communication, collaboration, and the formation of a
motivating culture. Recognition and reward are also important in performance
management, as they can improve employee motivation, performance, retention, and long-
term contribution in the organization.

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.

Performance management and performance appraisal sound similar(Verma, Alekh &Singh,

Sompal, 2024). However, these two are different from each other. Performance
management is more than just an appraisal as it also includes management of an
employee’s performance in a positive way. This is a continuous process that includes various
steps such as setting the goals and expectations, establishing evaluation criteria, identifying
source and method of appraisal followed by communication of appraisal. Job performance
has various dimensions that are trait based like attitude, creativity, initiative, drive, and
accountability; behavior based like customer service; and result based like tangible output.

(Carl-Fredrik Lindberg, SieTing Tan, JinYue Yan, Fredrik Starfelt,2015)Key Performance

Indicators (KPIs) are important for monitoring the performance in the industry. They can be
used to identify poor performance and the improvement potential. KPIs can be defined for
individual equipment, sub-processes, and whole plants. Different types of performances can
be measured by KPIs, for example energy, raw-material, control & operation, maintenance,
etc. Actions for performance improvements can then be developed, prioritized and
implemented based on the KPIs and the benchmarking results. An alternative to
benchmarking, which is described in this paper, is to identify the process signals that are
strongest correlated with the KPI and then change these process signals in the direction that
improves the KPI. This method has been applied to data from a combined heat and power
plant and a suggestion are given on how to improve boiler efficiency.

Moynihan, D. P. (2008). The dynamics of performance management: Constructing

informal information. Georgetown University Press: Washington, DC

Faozen, Faozen & Sandy, Shah. (2024). Performance Management: A new approach in
performance management. 10.5772/intechopen.1002501.

Ammons, D. N., & Roenigk, D. J. (2020). Exploring Devolved Decision Authority in

Performance Management Regimes: The Relevance of Perceived and Actual Decision
Authority as Elements of Performance Management Success. Public Performance &
Management Review, 43(1), 28–52. https://doi.org/10.1080/15309576.2019.1657918

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.

Verma, Alekh & Singh, Sompal. (2024). Performance Management. DOI:10.1007/978-3-031-

46420-1_7
Carl-Fredrik Lindberg, SieTing Tan, JinYue Yan, Fredrik Starfelt,Key Performance Indicators
Improve Industrial Performance,Energy Procedia,Volume 75,2015,Pages 1785-1790,ISSN
1876-6102,https://doi.org/10.1016/j.egypro.2015.07.474.

Osiobe, Ejiro. (2021). A Literature Review and Overview of Performance Management: A

Guide to the Field. Journal of Business Market Management. 4. 2617-1724.
10.47752/sjbmm.41.1.11.
Tata Motors Limited is an Indian multinational automotive company, headquartered in
Mumbai and part of the Tata Group. The company produces cars, trucks, vans, and busses.
Subsidiaries include British Jaguar Land Rover and South Korean Tata Daewoo. Wikipedia
Stock price: TATAMOTORS (NSE) ₹979.75 +14.85 (+1.54%)
22 Mar, 3:30 pm IST - Disclaimer
Customer service: 1800 209 8282
Founder: J. R. D. Tata
Founded: 1945, Mumbai
Headquarters: Mumbai
Formerly: Tata Engineering and Locomotive Company Ltd. (TELCO)
Subsidiaries: Tata Technologies, Jaguar Land Rover, Jaguar Cars, MORE
Parent organization: Tata Group

Performance management system may be defined as a formal interaction between

employee and a manager. It is process used to communicate organisations goals and
objective, track and evaluate individual and organisation performance results. It is an on-
going process means managers have to evaluate each and every activity of the employees in
the organisation. Basically it is a methods by which the job performance of an employee is
evaluated in terms of quality, quantity and time. In other word, it is a process of evaluating
employees on continuing basis and coaching them and rewarding them on the basis on their
performance. Every organisation has some goals and objectives to achieve and to fulfil these
goals companies need to make planning and strategies. Moreover companies also need to
make sure that every employee in the company is working properly to achieve the both
companies as well as personal goals. So for this companies introduce performance
management system in which company sets targets and goals for the employee and then
monitor and evaluate them throughout the period, and then reward those who have
worked as excepted and send others on training who did not perform well. I thoroughly
analyse the performance management system in the TATA MOTORS.
First of all they describe the organisational and personal goal to each and every employee.
Secondly they tell each and every employee that what will be expecting from them at the
end of the month or years. Then they communicate properly to its employees, and they
monitor the entire employee throughout the years. At the end of the year they evaluate all
employees’ performance and give them reward and feedback on the time. Reward to those
who have worked really well, reward in term of monetary incentive, promotion and non-
monetary like some gifts and promotion within the organisation. they also provide proper
feedback to all its employee at the end of some specific period so that their employee can
get to know about their performance in the company and what they need to do.
In Tata motors they are following yearly analysis techniques to analyse their employees. In
the beginning of each financial year they set the target and objectives of both company and
of individuals as well. After the end of financial year they evaluate each and every
employees performance with the goals they have set at the beginning of the year, then they
reward those employees who have perform extremely well and satisfied. Reward in terms of
incentive in salaries, promotion to the next position and giving them some non-monetary
gifts as well, to just encourage them. To motivate its employee more they have introduce
the part of the salary increase to individual performance measures as variable pay. It means
in their salary structure, some part of the salary is variable and can be increased after
performance analysis of an employee. Currently between 6 to 8 per cent of the
compensation is variable pay, which they can increase after a year on the basis of the
employee performance. it is one of the best ways to motivate employee to perform better,
like in this kind of incentive techniques they mostly work harder and smarter to achieve the
company’s goals and objectives, as they clearly know that their promotion and increment in
salary linked directly with their performance. They also motivate and train those employee
who did not perform well in the company. They basically provide them proper training so
that they can work better in the upcoming years and can contribute towards the
organisational goals. They also communicate properly to their employee so that there
should not be any mistake in understanding the goals and objectives of the company. They
evaluate employee performance with the prescribed criteria then provide them with proper
feedback and reward.

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.

Performance Appraisals: Periodic performance appraisals are conducted to formally

evaluate employees' performance. These assessments may include a review of goal
attainment, competencies demonstrated, and overall contributions to the organization.

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.

Continuous Monitoring and Adaptation: The performance management system at Tata

Motors is likely dynamic and adaptive, with continuous monitoring of performance metrics
and regular reviews to assess the effectiveness of the system. Adjustments are made as
needed to ensure alignment with organizational goals and changing business needs.

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

An effective Performance Management System should achieve the following:-

  Review the employment cycle of every employee,
 Beginning with the recruiting process,
 Employee development,
 Ending with effective exit interviews.
 Employee’s knowledge, skills, and abilities with the organization's human capital
needs and business objectives.
 Provide managers and employees with the tools necessary to focus on short-term
and
Long-term goals that contribute to both career and organizational success.

LEVELS TO EVALUATE THE PERFORMANCE APPRAISAL TECHNIQUES ARE:

 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.

MBO- It is a system wherein the superior and subordinate managers of an organization

jointly define their common goals, define each individual’s major areas of responsibility in
terms of results expected to him and use these measures as guides for operating the unit
and assessing the contribution of each of its members. It establish a link between
organizational and individual performance and it is easy to implement and measure.
Employees feel motivated and it enhances the performance.

Evaluation of the Measurement System

 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.

APPRAISAL & REWARDAPPRAISAL

 New Appraisal System based on KRAs & Targets·

 Review of Targets at regular Intervals·

REWARD

o Promotions based on Performance·

o Productivity & Profit-linked Incentive Schemes·

o Mainly involved monetary incentives

From my point of view, adoption of “Management by Objective” and “Field review

Method” is perfect for RELIANCE SALES EXECUTIVE POSITION because –
 It believes in Employee Driven Process.
Transparent Process
No partiality will be seen in the whole process. Fair decision will be made.
Employee can stand of his own words for its objectives and goals.

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

Evaluation of the Measurement System

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 –

a. Achieve Excellence in Project Delivery 50%

b. Achieving Excellence in Client Facing Skills 25%

c. Standardized Processes & Methodology for Key Service Offerings 25%.

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 -

 Financial perspective - contribution in terms of revenue growth, cost reduction

and improved asset utilization.
 Customer perspective - Looks at the differentiating value proposition offered by
the employee.
 Internal perspective -Refers to the employee’s contribution in creating and
sustaining value.

Learning and growth – are self-enhancing motivators.

APPRAISAL & REWARDAPPRAISAL

 People Development an important KRA

 Build & Sustain Relationships Idea Leadership
 Handling Complexity
 Superior Execution
 Drive for Results

REWARD

 Promotions based on Performance

 Both monetary as well as non-monetary incentives are involved(mainly non-
monetary)

From my point of view, adoption of “Balance scorecard” and “360 degree appraisal
method” is perfect for RELIANCE SENIOR MANAGER POSITION because:

• BALANCE SCORECARD is a good method. It give the clear picture of how

performance management process is done.

• 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

Stock price: IOC (NSE) ₹165.50 +1.00 (+0.61%)

Chairperson: Shrikant Madhav Vaidya

Customer service: 1800 233 3555

Headquarters: New Delhi

Founded: 30 June 1959

Divisions: IndianOil (Mauritius) Limited; Lanka IOC PLC; IOC Middle East FZE
ISIN: INE242A01010

Key people: Shrikant Madhav Vaidya (Chairman)

Performance management system in Indian oil corporation limited

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.

Performance Appraisal: IOCL likely conducts periodic performance appraisals where

employees' performance is formally evaluated against the set goals and competencies.
These appraisals may include self-assessment, peer feedback, and supervisor evaluations.

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.

Continuous Improvement: The performance management system is a continuous process

aimed at improving individual and organizational performance over time. IOCL may regularly
review and refine its performance management processes to ensure they remain effective
and aligned with the organization's goals.

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.

Indian Oil Corporation Ltd. Has Five Divisions-

1. Refineries Division

2. Pipelines Division

3. Marketing Division

4. Research & Development Center

5. Assam Oil division

 INTRODUCTION OF THE COMPANY

Lenskart is an indianoptical prescription eyewear retail chain. As of September 2019,

Lenskart had over 500 stores in 70 cities in India. The company had a valuation of $1.5
billion by Dec 2019 after Softbank invested around $275 million. Peyush Bansal, a former
Microsoft employee, founded Lenskart in 2010 along with Amit Chaudhary and Sumeet
Kapahi. In 2020 Lenskart generated total revenue of Rs.1000 cr. plus
Financial backers of Lenskart include TPG Growth, International Finance Corp and Adveq
Management. Ratan Tata (of Tata Sons) and S Gopalakrishnan (of Infosys) have also invested
in Lenskart. In March 2018 Wipro Chairman Azim Premji invested 400cr in the group taking
the valuation of the company to 3000 Crore. By 2016 Lenskart had become one of the two
top optical chains in India, along with Titan Eye Plus. Its manufacturing facility in Delhi
manufactures 300,000 glasses a month. Lenskart also has a factory in Zhengzhou (China)
which manufactures about 50% of the production. Lenskart launched the eyewear brand
John Jacobs in 2017 and for that brand aimed to touch Rs 500 crore in revenue in two years.
In 2018 the company became profitable (EBITD).
The company is in talks with Japanese group SoftBank as well as the private equity firm
Kedaara Capital for investment. These investments will make Lenskart the next unicorn.
In October 2017, Lenskart's first brand ambassador was Katrina Kaif. In March 2019 the
company roped in Bhuvan Bam as their first male brand ambassador.[

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

the entire supply chain.

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

operates across verticals to include, manufacturing, eye technicians, customer service,

technology & logistics and will expand as the growth demands.

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

product at affordable prices.

Funding

As of January 2015, they have secured 3 rounds of funding with the latest round of funding

valuing the company at $100 mn.

Details of the funding rounds:

 Secured Rs.22 crs from IDG ventures India in 2011

 Secured Rs.30 crs from Unilazer ventures in February 2013

 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.

Challenges & Competition

 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,

but others are catching up to.

 A common question which consumers ask is how one can buy eyewear. The touch &

feel concept comes in to play here.

Growth Drivers

 “First frame free” offer — Where customers will pay for only the lens on their first

purchase. Good strategy to attract first time buyers.

 “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.

 Eye check-ups by optometrists at home across cities has been introduced.

 They have been doing 1500 check-ups a day and have a conversion of ~50%

 Innovative use of technology — developed a 3D facial visualizer where customers can

see how the frames will look on them

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.

HR Policies cover the following:

Policy of hiring people with due respect to factors like reservations, sex, marital status, and
the like.

Policy on terms and conditions of employment-compensation policy and methods, hours of

work, overtime, promotion, transfer, lay-off and the like.

Policy with regard medical assistance-sickness benefits, ESI and company medical benefits.

Policy regarding housing, transport, uniform and allowances.

Policy regarding training and development-need for, methods of, and frequency of training
and development.

Policy regarding industrial relations, trade-union recognition, collective bargaining,

grievance procedure, participative management and communication with workers.

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

 In Lenskart, recruitment and selection of personnel is explicitly based on the

criteria of their knowledge, skills and attitudes, so as to secure super
achievers and nurture them to excel in their performance.
 All fresh candidates are absorbed only after satisfactory completion of
appropriate training.
  All direct recruitment is through the HR department.
 Detailed selection procedures as decided from time to time are adhered to
without any compromise.
 Above procedures shall undergo continuous refinement through evaluation
and feedback.

2. INDUCTION AND PLACEMENT POLICY

 At Lenskart, new recruits imparted such induction, orientation, training and

placement so as to individuals to the task and inculcate a high sense of
organizational loyalty.
 The HRD Department and the concerned heads of parent departments
prepare a well-structured Induction Program to acquaint the new recruits
with the people, organizational structure, and interface between different
departments, functions and culture of the organization.
 The Induction Program is formulated to suit the position of the candidate and
necessary to be provided to him.

3. JOB ROTATION POLICY

 At Lenskart, facilities are provided for all-round growth of individuals through

lateral mobility. This shall enhance their employability as well as equip them
to shoulder higher responsibilities.

 Systematic Job Rotation from time to time shall have a revitalizing effect on
the individual as well as the organization.

 All promotions to the level of HODs will be considered only when an

individual has undergone rotation through at least 2 sections.
4. PERFORMANCE APPRAISAL POLICY

 Performance Appraisal grooms every individual to realize his potential in all

facets by helping to identify and achieve his personal goals within the
framework of organizational objectives.

 Appraisals shall be ethical and impartial so as to recognize worthy

contributions appropriately and in time in order to maintain a high level of
employee motivation and morale.

 The Performance Appraisal Systems aims at integration of individual and

organizational goals.

5. COUNSELLING

Counselling sessions, which are conducted by HR Department OR Professional

Counsellor OR Performance Appraiser, are available to all the employees in order to
fulfil the following objectives:

 To enhance employees’ competence and job satisfaction.

 To prepare employees for future responsibilities.
 To establish a better working relationship between the superior and
subordinate.
 To enable employees to cope with personal problems.
6. CAREER PLANNING POLICY

 Career Planning system in Lenskart is aimed at developing people of the right

caliber to meet present and future needs of the organization. It shall be an
essential ingredient for Succession Planning.
 The mandatory factors to be considered prior to career planning shall be:

a. The organization’s long and short term plans.

b. Manpower skills required towards implementing these plans.
c. Attrition rate of people with high potential, above average and average
caliber.
d. Recruitment through internal and external sources at all levels and its
ratio as appropriate to the organization.
e. The number of people recruited and trained every year.

7. SUCCESSION PLANNING POLICY

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.

8. TRAINING AND DEVELOPMENT POLICY

 At Lenskart, training and development activities strive to ensure continuous

growth of organization by nurturing the strengths of the employees and
providing the environment and opportunity for every individual to realize
his/her potential.
 The policy aims at broadening the outlook of the individuals and bridging the
gap between actual performance and the performance necessary to deliver
results.
  Facilities are provided to all individuals towards self development and all
round growth through training.
 HR Department identifies average performers and provide special training.

9. HUMAN RESOURCE INFORMATION MANAGEMENT SYSTEM

 Human Resource Information Management Systems (HRIMS) aims at:

a. Providing accurate information about employees to management for

decision making.
b. Eliminating duplication of efforts.
c. Offering quick and easy access to human resource information at random
as well as in regular report form.

 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.

 An integrated employee database is maintained and continuously updated

with information from personnel at regular intervals regarding biographical
data, work experience, qualifications, appraisal, training and career paths.

10. RETIREMENT PLANNING

 At Lenskart, retirement of all individuals is aided through planned

programs by HR Department so as to lessen the associated misgivings and
anxiety.

11. JOB ENRICHMENT

  Lenskart follows a people centered approach to job enrichment with a view
to enhance the performance of the employee, leading to higher job
satisfaction.

12. EXIT INTERVIEWS

 The organization has a regular turnover of employees due to various

reasons such as retirement, voluntary retirement, and resignation etc. from
time to time. Feedback is obtained from the employee on occasions of
separation from the organization. Such feedback on matters that effect well
being of the people is useful in improving the organization in respect of HR
Policies and practices.
Microsoft Corporation is an American multinational corporation and technology company
headquartered in Redmond, Washington. Microsoft's best-known software products are
the Windows line of operating systems, the Microsoft 365 suite of productivity applications,
and the Edge web browser

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.

How to build a flexible performance management system like Microsoft.

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:

 Take too long

 Tend to be one-sided
 Too formal
 Too general

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.

Microsoft’s Performance Management Process

Microsoft’s performance management process includes:

 Creating a performance journal

 Setting goals
 Conducting flexible performance reviews

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.

Source: Microsoft Documentation

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

Performance journals provide employees with a place to gather information during a review
period. The employee can catalogue work-related activities and events, as well as future
projects. Employees create journals for themselves, and can decide whether to share them
with a manager.

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.

How Microsoft Uses Goals in Performance Management

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 Performance Management Practices

Apple’s performance management process relies on strong communication to create a

snapshot of how every employee contributes to the organization.

It includes three main features that set it apart:

360 Annual Performance Reviews

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.

Employee performance is measured against three categories: teamwork, innovation, and

results.

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

Apple’s performance management strategy focuses on how individuals meet organizational

goals through the use of 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