Performance Management

Project:

PM at
Bharat Heavy Electricals Limited
Presented by:
Section: ABC Group No. 8
Ameesh Sharma 08FN011
Anoop Kumar 08HR012
Shurti Mishra 08IT065
Jyoti Ranjan Sinha 08HR025
Prasant Kumar Biswal 08HR039
.
 Bharat Heavy Electricals
Limited

 BHEL is the largest engineering and manufacturing

enterprise in India in the energy-related/infrastructure sector.
 BHEL was established more than 40 years ago.
 The company has been earning profits continuously since
1971-72 and paying dividends since 1976-77. 
 BHEL manufactures over 180 products under 30 major
product categories and caters to core sectors of the Indian
Economy viz., Power Generation & Transmission, Industry,
Transportation, Telecommunication, Renewable Energy, etc.
 Contd...

• BHEL is one of the largest exporters of engineering

products & services from India.
• The greatest strength of BHEL is its highly skilled and
committed 42,600 employees.
 Rationale Behind Selecting
BHEL
All components of the PM process play an important role;
if any of these components is implemented poorly , then
the entire PMS suffers and in BHEL more or less all these
components are being covered.

The links between the various components must be clearly

established and we can see this happening in BHEL.
The MAP Logo represents

• Excellence

• Focus on People at the

Center of the System

• Sharp Growth through

Performance

• Alignment

• Measurement
 Key Roles in MAP

Appraisee Appraiser Reviewer

Every Executive whose Every Executive who The Appraiser’s
performance is assessed Assesses the Appraiser, who is
in MAP performance of one or responsible for reviewing
more Appraisees that the entire performance
report to him/her process

•It’s about his •Will help appraisee •Will ensure Objectivity,

Performance manage his performance Transparency &
•He is the key driver of & provide continuous Consistency
the process feedback and coaching
 Performance
Management Anchoring targets to the
rating scale
Cycle at BHEL Developing action plan
Assigning weights to
KRAs

Appraiser

ONGOING
FEEDBACK
Final review Appraisee
Calculation of
final score
Normalization

Mid year review

Development
plan
 Performance Planning
Objectives: Time: April
•Creating Performance Plan
•Selecting KRAs.
•Setting Targets and Action Plans for KRAs.
•Assigning Weightages.
•Defining Routine Responsibilities.
 Target Setting

For each KRA:

• Define a specific target that quantifies or verifies the
extent of achievement in a given timeframe.
• The target defined should correspond to Rating 4 –
‘Moderately Above Expectations’ on the 5-point Rating
Scale.
• The required level of achievement for each of the other
four ratings should also be defined.
 Anchoring Targets to the Rating
Scale
KRA Target

Order Booking Rs. 22 Crore

15 Crore 18 Crore 20 Crore 22 Crore 25 Crore

The required level of achievement for each point on the

Five Point Rating Scale must be defined
 Developing Action Plan:

 Development planning in MAP focuses on building individual

capability using competencies. Competencies relevant to a role
are pre-defined in its URR (Unique Role & Responsibilities)
along with the desired proficiency level.
 This describes the specific steps, milestones and resources
planned by the Appraisee to accomplish the KRA.
 KRA MASTERS
1. Exhaustive list of Key Result Areas identified in 24 functions to
enable executives to prepare their plans.
2. Standard unit of measurement fixed for each KRA for uniformity
in measurement.
3. KRAs classified into Operational and Capability Building
categories to provide for short term activities as also to improve
focus on building long term capability of the function.
4. Weightages for Operational and Capability Building KRAs have
been suggested against all KRAs for all levels of executives
5. To encourage executives to take up Capability Building activities,
a minimum KRA (C) weightage has been prescribed based on
roles.
6. KRA Masters loaded in the e-enabled system.
 Examples of KRAs

 % Reduction in response time

 % Reduction in material cost
 % Improvement in customer satisfaction
 % Production targets achieved as per milestones
 % Improvement in machine availability
 Assigning Weightings
to KRA’s

 Weightages should be allocated keeping in mind the

criticality of the KRA and the effort required to
accomplish the same. The maximum weightage will be
governed by the limit set in the KRA Master.
 Suggested Weightage for Operational
and Capability Building KRAs
For KRA-C :
High : 25 max.
Medium : 18 max.
Low : 12 max.

For KRA-O :
High : 20 max.
Medium : 15 max.
Low : 10 max.

Minimum Weightage to be assigned to any KRA - 5

 RATING SCALES
• A 5-point scale to assess the extent of achievement on
KRA targets.
• Used during Target Setting for each KRA.
• Defines a specific target that quantifies the level of
achievement in a given timeframe.
• The required level of achievement for each of the other
four ratings are also defined.

5 4 3 2 1
Significantly Moderately Meets Moderately Significantly
Above Above Expectations Below Below
Expectations Expectations Expectation Expectations
 Mid Year Review
• Time: September – October
• Objectives:
• Reviewing & Tracking achievements
• Ensuring course correction
• Creating Development Plans
• Time for Feedback and Coaching
Process:
Appraisee will Appraiser
complete Self-
Appraisee Mid Year Training needs
will submit will provide feedback identified used
Review on feedback on
Performance Self- will be as input for
performance
Targets & Review to and guide documented deciding
create Appraiser Appraisee training
Development on future programmes
Plan direction

In case of extraneous circumstances, The Mid Year Review provides for

a revision in the Appraisee’s Performance Plan. Prior to a change
approval from the HOD would be required
 Creating Development Plan

Competency Development Plan

Attend a training programme on team building

Team Work Work on two cross-functional teams
Mr. Dinesh Mathur to play the role of mentor and provide on-
going support and inputs
Appraisee and appraiser to have monthly discussion on progress

Job Attend a beginners training course at NIIT / APTEC

Knowledge Use computer for all correspondence

Computer Attend technical seminars held in-house (minimum of 4 in the

Literacy year)
Read technical journals to keep abreast with the latest
developments in the filed
Take complete responsibility for 2-3 bids
 Final Review
Assessment of Appraisee’s Level of Achievement on all
KRAs
Time: April
 Calculation of Overall
Score
KRA Weightage (%) Rating on 5 pt. scale Indl. KRA Score

KRA 1 25 4.5 1.12

KRA 2 25 4 1
KRA 3 25 4.6 1.15
KRA 4 10 4.7 0.47
KRA 5 15 3.5 0.52
    OVERALL SCORE 4.26

The KRA’s will vary depending upon the job or position of the
apraisee
 Normalization

 Normalization is the process of aligning the distribution

of individual performance score to the performance level
of the company, unit and department in a Performance
Cycle.
 Feedback & Coaching
Continuos Feedback and Coaching is an inherent and
critical part of MAP
Feedback can be of
–The Mid Year and various types:
Final Reviews are –positive
specifically focused on –corrective,
Feedback and Appraiser –feedback for the
Coaching ONGOING purpose of sharing
–It requires the FEEDBACK information and
Appraisee and Appraisee –feedback focused
Appraiser to have a on identifying
formal feedback obstacles to
session performance
 Performance Planning
• Results
– What needs to be done, key accountabilities, specific objectives
for each key accountability and performance standards.
• Behaviors
– How a job is done, discussion of competencies (clusters of
KSAs)
• Development plans
– Identifying areas of improvement, setting goals for improvement
in those areas
 Performance Execution
• Apraisee’s responsibilities:
– Commitment to goal achievement
– Ongoing performance feedback and coaching
– Communication with supervisor
– Collecting and sharing performance data
– Preparing for performance reviews

• Supervisor’s responsibilities
– Update and revise objectives as organizational goals change
– Continuous ongoing feedback and coaching
– Provide resources / opportunities to apraisee
– Reinforcement of effective behaviors of apraisee
 Performance Assessment

• Both the employees and the supervisor must evaluate employee

performance.
• Employment involvement in the process increases employee
ownership and commitment to the system.
• In addition it provides important information to be discussed in the
performance review.
 Performance Review

• The performance review stage or the appraisal meeting involves

meeting between the employees ant the managers to review their
assessments.
• The appraisal meeting focuses on the past (what has been done and
how), the present (what compensation is received or denied as a
result),and the future(goals to be attained before the upcoming
review session).
 Performance Renewal and
recontracting
• This component for uses information gathered during the review
period to make adjustments as needed. For eg: some new key
accountabilities and competencies may be included.Conversely,
some goals may have to be adjusted either upward or downward.
 Recommendation

• Rating should be done half yearly and average should be

considered at the end.
• There should be more than one reviewer.
• Element of subjective bias in evaluating performance vis a
vis target is still there.
• Evaluation is done on very few parameters.(Individual
contribution to group performance is not measured
properly).
THANK YOU