Project Title:

PERFORMANCE MANAGEMENT :

An exploratory study

For the partial fulfillment of the requirements of

Two-Year Full Time

Post Graduate Program in Management

Project Guide:

Submitted by:

SHIKHA KALRA

MBA-O7-135

1
 Gurgaon Institute of Technology & Management

CERTIFICATE

This is to certify that the project study entitled “PERFORMANCE

MANAGEMENT” submitted by Ms. Shikha Kalra in partial fulfillment for the Two
Year Full Time Post Graduate Programme in Management, 2007 – 2009, is a record of
original work conducted by him under my guidance and supervision.

The work has not been submitted elsewhere for the award of any degree or diploma.

Shikha Kalra Project Guide:

MBA-O7-135 Mrs. Sachi Yadav

Faculty in GITM

2
 ACKNOWLEDGEMENT

Before taking up this project, I tried to understand the functioning of HR dept. in the
organisation. All the employees of the dept. were very understanding and cooperative. Since
this is my first exposure to corporate environment, I was extended all the facilities and co
operation in fulfilling the task at hand. I am thankful to my seniors who has spent
considerable time to guide me in selecting the topic for the project and COMPLETING THE
SAME.

My sincere gratitude and thanks to my project guide for allotting me the

project at JINDAL Industries. I am indebted to them for their guidance and
support. It was impossible to complete the project within the stipulated time
without their guidance.

I also thank the managers and the employees belonging to JINDAL Industries. with whom I
carried the interaction process. I thank all the persons of HR dept. for helping me
understand the process and explaining the information related to their department and their
staff. Without their guidance and co operation it would have been impossible to learn the
process in an efficient manner.

Last, but not the least I am thankful to M/s JINDAL Industries for providing me an
opportunity to explore in the real life environment and actual data and documents. This
experience gained by me will go a long way in understanding the dynamics of HR
functioning and would also be helpful in career growth.

3
 PREFACE

Master of Business Administration degree is incomplete without practical and personal

exposure to companies and markets before exploring for job opportunities.
Human Resource is one of the most important asset of an organization. Company’s adopting
modern management techniques lays emphasis to study and analyze their organization. I
being a student of Business Management attempted to do research work and learn the
management of Human resource.

I followed a constructive study for knowing the Performance Management Process

conducted in JINDAL Industries .

I have put in my efforts with Sincerity and Dedication and hope it is appreciable.

Shikha

4
 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY OF THE

PROJECT………………………………………………………………7
2. PROFILE OF THE COMPANY
2.1Introduction……………………………………………………………………
…………………………………………………………………....9
2.2History…………………………………………………………………………
……………………………………….10
2.3Milestones……………………………………………………………………
………………………………………....10
2.4 Coverage of JINDAL Industries
……………………………………………………………………………………
………………………………………………………………..10
2.5 Corporate
Principles…………………………………………………………………………
…………….……………………………………………………11
2.6 The journey so
far…………………………………………………………………………………
………………………………………………………………….13
2.7 Organisational
Structure…………………………………………………………………………
…………………………………………………………………..20

3. PERFORMANCE MANAGEMENT

3.1
Introduction……………………………………………………………………………
…………………………………………………………………….….26

5
 3.2
Concept…………………………………………………………………………………
………………………………………………………………….……..28
3.3 Key
Features…………………………………………………………………………………
……………………………………………………………………..…29
3.4 Performance Management
Cycle……………………………………………………………………31
3.5 Performance Review
Form……………………………………………………………………………..35
3.6 Performance Management in JINDAL Industries
……………………………………………………………37

4. RESEARCH STUDY AT JINDAL Industries

4.1 Objective of
Study……………………………………………………………………………………
……….40
4.2 Scope of
Study……………………………………………………………………………………
…………….41
4.3 Type of Data & Methodology
used…………………………………………………………………43
4.4 Limitations of the
study…………………………………………………….…………...46
5. FINDINGS &
ANALYSIS………………………………….......................................47

CONCLUSION &
SUGGESTIONS…………………………………………………..…59

6. ANNEXURE
Bibliography…………………………………………………………………………
…………………………………………………………………....61
6
 CHAPTER - 1
EXECUTIVE SUMMARY

Performance management is an essential tool that is relevant in all levels of JINDAL

Industries. It provides a means to improve organisational performance by linking and
aligning individual, teams, organisational objectives and results. It also provides a means
to recognise and reward good performance and to manage underperformance.

The JINDAL Industries values make it clear that achieving results and managing
performance are central to work of JINDAL Industries. Performance management in
Marketopper makes use of various strategies to improve the performance of employees,
teams and individuals. It involves:

- Clarifying performance objectives(it could include tasks, outcomes, behaviours

and values based system or combination of these) and linking them with
organisational business plans
- Periodic performance appraisal of individuals or team against the achievement of
these objectives
- Feedback from this appraisal
- Recognition or reward for performance including performance pay, salary
progression guided by performance or non – pay reward systems
- Team and individual development to build capabilities
- Evaluating the contribution of team, individual & organisational performance
7
This study at JINDAL Industries was conducted with an objective to understand in
detail the personal perspectives of the employees in the Employee Dialogue and to see,
the role played by the managers and HR dept. in fulfilling them according to the
employees’ capabilities. The employees of only PG (Power Generation) division were
taken into consideration, and each employee’s Employee Dialogue was studied in detail.
An interaction process was carried on with the managers to understand the employee
capabilities in a better way.

After conducting the study it was found that the employees aspired to handle higher
responsibilities in the organisation which would help them to add to their experience, the
performance management process helped them to plan for their future in the organisation
and realise their goals in the organisation apart from working for the organisation. This
process truly helped the employees to grow by gaining experience from their managers
and by proper counselling and training being provided from HR dept. which also overall
lead to a profitable organisation.

8
 CHAPTER -2
2.1 INTRODUCTION

JINDAL Industries is a Company engaged in Financial Instrument research and the

development of advance - featured Trading Systems.

JINDAL Industries systems are strictly proprietary and currently intended exclusively for
private use.

The purpose of the JINDAL Industries Web Site is solely to disseminate information and
facilitate discussions relating to the Science and Technology of Financial Instrument trading.

9
2.4 COVERAGE OF JINDAL Industries ALL OVER THE GLOBE

VISION STATEMENT OF JINDAL Industries

Where technology touches lives

We provide the best solutions for our customers.

MISSION STATEMENT OF JINDAL Industries :

JINDAL Industries strives for growth and increased value for stakeholders by
implementing advanced technologies, new products and services to provide excellent
solutions to satisfy customers’ requirements.

10
2.5 CORPORATE PRINCIPLES

2.5.1 CUSTOMER EXPECTATIONS DRIVE THE COMPANY’S ACTIONS.

The company’s top priority is to provide outstanding value to their customers, since their
success ultimately depends on their satisfaction. They offer solutions that enable their
customers to achieve their objectives quickly, easily and efficiently. The company believes
in shaping the future through innovation and change. They put new ideas to work, creating
innovative products and services to benefit their customers. It encourages experimentation
and imagination. Their creativity and willingness to take risks enable the company to build
an environment in which promising ideas can be quickly turned into successful solutions.
They also promote and draw on one another’s ideas.

2.5.2 VALUE ENHANCEMENT FOR ALL IS THE COMPANY’S GOAL.

International competition is the company’s benchmark. They work to achieve profits while
striving for industry leadership and a steady increase in their economic value added. This
gives them entrepreneurial freedom they need and makes the company a trusted partner. To
ensure financial success, they optimize time, quality and cost in all their work.

2.5.3 THROUGH LEADERSHIP EXCELLENCE THE COMPANY DELIVERS

PEAK PERFORMANCE.

The managers set clear, ambitious, and inspiring goals. They always strive to surpass
themselves. If they don’t, others will. By leading on the basis of trust, they empower their
people to make their own decisions. They demonstrate courage and conviction when
introducing necessary changes. The managers serve as role models in everything they do.

11
2.5.4 THE COMPANY FOSTERS LEARNING FOR CONTINUOUS

IMPROVEMENT.

They always measure themselves against the world’s best. Each of them strives to learn
continuously. They welcome and offer open feedback, and even learn from mistakes. They
are quicker than others at identifying new opportunities, and adapting their solutions,
organization, and their behavior accordingly. The company is building an international
network of knowledge, in everyone gives and takes.

2.5.5 THE COMPANY’S TEAMWORK KNOWS NO BOUNDS.

They are a global company, and draw on their worldwide capabilities. This makes them the
best team on the playing field. All thoughts and actions stem from a sense of responsibility
when it comes to achieving their common goal. The co-operation is characterized by trust,
personal integrity, mutual respect, and open communication.

2.5.6 CORPORATE CITIZENSHIP IS THEIR GLOBAL COMMITMENT.

Their knowledge and solutions helps create a better world. They are committed to protecting
their environment & they are respected corporate citizens in all countries in which they do
business JINDAL Industries safeguard their people’s future through training and
continuing education.

12
 The journey so far

Algorithm based trading systems were developed first in U.S.A. The idea, of developing an

internally comparable system in India germinated from a series of discussions between

Saurabh Sood, Founder and C.E.O. of JINDAL Industries with a renowned expert from

the trading field.

The initial discussion group felt convinced that the technology and knowledge were locally

available to design and develop such systems. Moreover, the major stock exchanges in India

had already initiated on-line trading with live feeds in to broker terminals. Consequently, the

external infrastructure was appropriate for testing the viability of such a system. However,

the concept was greeted with skepticism and doubt outside the internal discussion group.

The reason for this was two-fold: firstly, there was widespread skepticism regarding a

system based totally on technical analysis - 'techno-voodoo' to quote one highly respected

investment analyst - and secondly, there were serious doubts about whether such expertise

actually existed in India.

13
In view of such perceptions, it was decided that the first priority was to establish the overall

viability and credibility - in terms of design, development and performance - of the

conceptualized system.

The Approach The idea was to develop an initial model for the Indian market, create a live

trading track record by trading on this model. To create a knowledge domain which would

evolve from such an exercise. To leverage this knowledge to create efficient and scalable

processes which then can be employed to create multiple strategies for multiple markets,

resulting in robust returns with controlled drawdowns.

Consequently we were able to mark out the major milestone in our journey which would

ultimately lead us to achieve our above stated objective

Major Milestones Traversed

The original objective was to develop a system for trading on the US stocks. However, it was

accepted that such a system - designed and developed in India - would lack credibility and

therefore also lack acceptance in the American market.

Consequently, the approach stage was conservatively defined and phased as follows:
14
Phase 1: Development of a proprietary indicator, based on which the first strategy was

created for the Indian Market. While on the whole the strategy was a huge success, it

highlighted the fact that dependence on one single model even while trading multiple

markets through it can expose the whole portfolio to large drawdowns, if the market

undergoes a structural change.

Phase 2: The experience garnered from phase 1 had taught us to focus our efforts towards

creating multiple strategies. However creating robust strategies which would consistently

beat the market returns, called for huge amount of data crunching and consequently much

higher development time.

Phase 3: To meet the twin challenges of high processing requirement and severe time

constraint, we realized that we need to refocus our efforts into developing artificial

intelligence based Logic Engines. These engines developed on cutting edge technologies like

Supervised Learning and genetic algorithm running on parallel networked environment can

create millions of condition set each signaling a unique buy or a sell order. The development

of these logic engines brought about a paradigm shift in our working style radically cutting

down the development time, exponentially increasing the data crunching ability thus helping

us create multiple 100 strategies across different markets and based on different time frames.

The strategies then only become the outputs of the various building blocks which have been

created.
15
Phase 4:With the help of these logic engines we were soon able to create different products

like:

• An Intraday system based on Information Technology stocks

• An Intraday system based on Nifty; the index future

• A Carry Forward system based on Nifty

Interestingly each of the above products in turn were composed of hundreds of independent

strategies (trading logics) running simultaneously.

Phase5: While risk management was always of primal importance for us, but earlier our

focus was more towards risk management at the strategy level. But with each of our products

running on numerous logics, we realized there was an urgent need to apply risk management

at the portfolio and product levels also. Further with so many models taking high frequency

trades the need to automate the monitoring process had also become imperative.

So for product level control we created overlays like Drawdown Controller and Portfolio

enhancer to, offset risk while enhancing the returns.

16
The Drawdown Controller, tries to predict high risk situations at the product level by

creating a market position versus open profit matrix of the product .It then initiates action

against our main product as and when the probablity of high drawdown scnario increases.

The portfolio risk evaluator, tries to discover highly profitable situations when Buy/ Sell

trades are generated though dissimlar logics. The notable observation for trades arising out

of such combinations, is that they have a higher percentage profitability as well as a higher

profit per share realization. So we execute these trades on a higher exposure level thus

ensureing higher portfolio level profitability with theoretical lower minimal increase in risk

level.

We do micro analysis of our products using Portfolio Risk Evaluator, an in-house utility.

Portfolio Risk Evaluator (PRE) helps in analyzing the portfolio based on numerous

independent parameters. It helps in reviewing the portfolio based on time of entry of

strategies, generic nature of strategies (e.g. in trend strategies, contra strategies), it helps us

in understanding how strategies based on different time frames have performed, how

strategies of different analyst have performed etc. We can also analyze our portfolio based

on a multiple of these above mentioned parameters taken together.

17
The Results :- Between April and September of 2001, the first system was put through a

dry run for 6 months. The results significantly exceeded expectations and were substantially

superior to the entire batch of target comparative systems. The dry run was followed up by 5

months of live trading between September 2001 and March 2002. The major take-outs of

both the dry as well as live runs were:

1. The dry run produced an annualized return well in excess of 100% net of costs.

2. The live trading generated a return of 50% net of costs.

3. During the dry run as well as the live trading, the System perfectly captured all major

market trends - including the Tech. Stocks meltdown - thereby demonstrating it's ability to

perform in both bull as well as bear markets.

The returns of subsequent years proved to be equally good, however they were achieved over

a wider product range over a consistently increasing exposure base. We have provided the

certified result of last 4 years, which would provide a very fair indication of “The journey so

far”.

18
RESULT VALIDATION

Prudence and predictability determined the key elements of the validation process.

[a] The capital employed is computed on the basis of the most conservative methodology -

i.e. the capital and margin requirement of the Exchange along with the highest draw down

incurred during the period of trading. For instance, if a gain of $100000 is followed by a loss

of $20000, then it is assumed that the Capital Employed is the Margin plus $20000 - the

highest draw down may have occurred after a profit of $100000 and then would have again

got profitable and moved to a new high of $150000 profit, but still that $20000 is taken into

consideration irrespective of what happened before or after.

[b] The system tracks volatility. Consequently, only stocks with high volatility, high beta

and standard deviation are selected. The methodology of scrip selection and testing is highly

scientific, properly documented and proprietary to the company.

[c] In order to totally understand the behavior of the system and appropriately assess risk -

both to the investor as well as the investment - advanced money management and portfolio

analysis techniques have been used to analyze the system both individually as well as on a

portfolio basis.

19
 Board of Directors

The JINDAL Industries Board of Directors consists of successful and eminent

professionals in various fields of business and commerce. All the directors are actively

involved in providing appropriate guidance and direction to enable the company to achieve

its business objectives. As a tangible reflection of the faith in the company's capability and

potential, all the Directors are also initial Investors in JINDAL Industries.

Saurabh Sood C.E.O

An experienced and successful professional at a relatively young age, Saurabh is an MBA

from IMT, Ghaziabad. His experience spans I.T. as well as investment analysis and

trading. His career started off as Managing Director of Compshan - a company engaged

in providing I.T education solutions in association with HCL (India's largest I.T. solutions

company) to schools. With the rapid growth of financial services and the stock markets,

Saurabh decided to switch focus and in the year 1994 became a well known Investment

analyst and advisor. It is his passion for trading and keen interest in technical analysis that

led to the creation of JINDAL Industries in 2001.

20
 Sumit Bhattacharya - Director

With almost 30 years of working experience in India, the U.K. and the U.S.A., Sumit has

been an executive as well as an entrepreneur. An MBA from London Business School, he

started his career in Dunlop (India) Ltd, subsequently joining Thorn-EMI PLC - U.K. His

first entrepreneurial venture was Essence Inc - U.S.A, a company engaged in marketing

entertainment electronics. In India, he was the Head of Marketing and Strategic Planning for

HCL - India's largest I.T conglomerate. Currently, he is the Global Head (Marketing) of

HCL BPO, HCL Technologies. As a senior player in HCL’s computer division in the past,

he has significantly enhanced the evolution of Computer mass marketing in India and

conceived and directed critical business growth strategies for HCL, achieving major market

share growth for HCL in the western and Southern Indian markets. HCL is presently at $4

billion enterprise.

A.K.T Janak Director,

A highly respected name in the financial services industry, Mr. Janak worked with the

Canara Bank for over 20 years at various senior management positions. An MBA and

CAIIB, he left Canara Bank as Vice President, Canbank Financial Services to join the

Board of Apple industries as Managing Director of Apple Finance - a company with an

asset base in excess of Rs.10 billion.

21
Corporate Advisory Council

JINDAL Industries is an enterprise engaged in the research and development of

financial instrument trading systems deploying path-breaking technologies and

concepts in order to

address local as well as global markets. The Corporate Advisory Council has been

structured to provide constant guidance and inputs relating to technologies, concepts and

global perspectives.

Romit Bhattacharya - Founder C.E.O, Specialty Toner Corp. - U.S.A

A global authority on liquid toner technology, Romit was also the co-founder of Cactus

-the pioneer in large format digital imaging. A chemical engineer by training, Romit

holds

Bachelor of Science degrees from IIT - Kharagpur and the University of Rochester -

U.S.A. His pioneering R&D in liquid toner technology has resulted in the award of a

global patent. In addition to heading Specialty Toner, Romit has also been an advisor to

such global technology majors as Xerox and HP. An active and interested market

investor, Romit has been involved with JINDAL Industries both as an investor as well

as an advisor guiding JINDAL Industries eventual entry in to the U.S Market.

22
 Gaurav Sood - Sr.Manager( Product Development), Compaq

Product of D.P.S, Delhi and a graduate in M.I.S from University of Houston, Texas.

Gaurav, was heading True Solutions India Pvt. Ltd, an I.T. Solutions company of the

Ispat Group. Later headed the I.T. initiative of Imagine Soft Inc. (U.S.A). Presently,

working as senior manger (product development) with Compaq at its headquarters in

Houston, Texas.

CORPORATE OBJECTIVE

To design, develop and deliver the best in class automated Financial Instrument Trading

Systems and related Advisory Services. Gopal Jain -Managing Partner of Gaja Capital

Partners

Gopal is Managing Partner of Gaja Capital Partners (www.gajacapital.com), an India

focused private equity firm. Prior to founding Gaja, Gopal was Managing Director

(India) of View Group, a venture capital firm focused on the US-India corridor. While

investing on behalf of View, he was among the early VC investors in India and helped

develop a series of BPO companies including Stream Tracmail, India Life Hewitt and

Contentscape (now Integreon). Gopal is deeply committed to developing

23
entrepreneurship in India. He helped pioneer the entrepreneurship-in-residence concept in

India. He spends time on programs that encourage entrepreneurship within universities in

India. A graduate in Electrical Engineering from IIT Delhi he is mentor for SINE, IIT-

Mumbai. He was the President of the Indo- American Chamber of Commerce, Western

India region for 2004-05 .Gopal is a charter member and Member of the Board of the

Mumbai chapter of TiE- a global body of entrepreneurs of Indian origin.

Dr. S Chandrashekhar - Executive Director, Fore School Of Management

Prof. Chandrashekhar is an established authority in the field of Forecasting Techniques.

Prior to being appointed as Senior Professor and Executive Director at the Fore School of

Management, Delhi, he was a professor of Forecasting & I.T at I.I.M, Lucknow

(considered to be at par with the best in business education all around the world) and

consulting organizations such as the Indian Space Research Organization (ISRO), and

the National Remote Institute Of Management, Lucknow. In addition to his academic

career, he has also worked / consulted for Sensing Agency (NRSA), the Oil & Natural

Gas Corporation (ONGC), Ford Aerospace, Citibank etc. He was a part of the 3 member

team retained by Citibank to create a forecasting tool based on the relationship between

currencies.He has a Bachelor's degree in Electrical Engineering and a Masters in

Computer Science from IIT - Kanpur and a Doctorate in Computer Science from the

University Of Georgia - U.S.A. Professor Chandrashekhar is advising the company in

development of robust trading systems based on artificial intelligence and neural

networks.

24
Divya Jyoti

He was formerly the president of Speck Systems (Europe), India’s largest GIS Company.

He worked as Head of Global Business Division, based out of Frankfurt for few years. He

has extensive experience in European, Asian, African & Australian markets. He brings to

JINDAL Industries his 23 years of Indian & International business experience.

25
 CHAPTER – 3
PERFORMANCE MANAGEMENT

3.1 INTRODUCTION

Supervisors have conducted performance appraisals for years. Employees have attended
training sessions for years. Organization members have worked long, hard hours for
centuries. Processes, such as planning, budgeting, sales and billings have been carried out for
years in organizations. But all too often, these activities are done mostly for the sake of
doing them, not for contributing directly to the preferred results of the organization.

Within the recent past there has been a shift from traditional annual performance appraisal to
continuous performance management. The obvious reasons behind this have been the
inadequacy of Performance appraisal in serving as a performance enhancement tool.
Performance appraisal is known to be a contentious and unpopular activity of Human
Resource Management. It is contentious because employees do not readily accept their
manager’s assessment about their performance, and managers feel uncomfortable when they
have to defend their judgment. It is unpopular because managers do not want to play the role
26
of a judge; besides they have feelings of guilt if their evaluation is critical of their
employees’ performance.

Performance management reminds us that being busy is not the same as producing results. It
reminds us that training, strong commitment and lots of hard work alone is not results. The
major contribution of performance management is its focus on achieving results - useful
products services for customers inside and outside the organization. Performance
management redirects our efforts away from busyness toward effectiveness.

Recently, organizations have been faced with challenges like never before. Increasing
competition from businesses across the world has meant that all businesses must be much
more careful about the choice of strategies to remain competitive. Everyone (and everything)
in the organization must be doing what they're supposed to be doing to ensure strategies are
implemented effectively.

This situation has put more focus on effectiveness, that systems and processes in the
organization be applied in the right way to the right things: To achieve results. All of the
results across the organization must continue to be aligned to achieve the overall results
desired by the organization for it to survive and thrive. Only then it be said that the
organization and its various parts are really performing.

27
3.2 CONCEPT

Performance management is the process of creating a work environment or setting in which

people are enabled to perform to the best of their abilities. Performance management is a
whole work system that begins when a job is defined as needed. It ends when an employee
leaves your organization. Performance management is a means of getting better results from
the organization, teams and individuals by understanding and managing performance within
an agreed framework of planned goals, standards and competence requirements. It is a
process for establishing shared understanding about what is to be achieved and an approach
to managing and developing people in a way that increases the probability that it will be
achieved in the short and longer term (Armstrong, 1998).

It helps to:

 Develop clear job descriptions.

 Select appropriate people with an appropriate selection process.
 Negotiate requirements and accomplishment-based performance standards, outcomes,
and measures.
 Provide effective orientation, education, and training.
 Provide on-going coaching and feedback.
 Conduct quarterly performance development discussions.
 Design effective compensation and recognition systems that reward people for their
contributions.
 Provide promotional/career development opportunities for staff.
 Assist with exit interviews to understand why valued employees leave the
organisation.
28
 3.3 KEY FEATURES

Every business and organisation should have a performance management system. The
system's complexity and scope may vary, but the underlying requirement remains.
Every organisation is different. The system should be designed to meet the unique issues
faced, although many systems will have common elements.

3.3.1 EMPLOYEE DEVELOPMENT

A good performance management system has an employee development focus. The personal
development requirements of employees and staff members are reviewed and plans are made
for formal and informal learning and training participation.

3.3.2 SALARY AND COMPENSATION REVIEW

In many organisations, employee compensation (wages, salary, benefits, etc.) is linked to

performance. If this is the case, the system has to integrate compensation review as part of
the overall process.

3.3.3 PERSONAL PERFORMANCE

Most systems set personal performance objectives and targets at the start of the review
period. These can relate to job tasks, multi-skill, responsibility levels, etc. There are many
variables. Achievement of these objectives can be linked to compensation review.

29
3.3.4 BUSINESS PERFORMANCE OBJECTIVES FOR INDIVIDUALS

AND TEAMS

Some systems include performance measurement related to the business objectives and
strategy. Relevant corporate goals and measures are taken directly from corporate strategy
documents and adapted for individuals or teams. These often relate to financial objectives,
market share, sales, etc. Achievement of these objectives can be linked to compensation
review for staff and bonus payments for teams or groups.

30
 3.4 PERFORMANCE MANAGEMENT CYCLE

PHASE 1: PLANNING: It is the first step in performance management cycle and

provides foundation for effective process. It helps to encourage commitment and
understanding employee’s work with organisational goals and objectives.

31
It also establishes expectation of how the work is to be performed. Results, rather than
activities, should be the focus in evaluating performance. Expectations should be clearly
stated and results measurable. As an employee one needs to understand what is expected out
of him and how the work will be measured or evaluated. Finally mutual commitment must
be established between supervisor and employee with respect to expectations. As an
employee one should be prepared to discuss responsibilities, past accomplishments and
future plans.

PHASE 2: CHECK - IN/ MANAGING: Managing is second component of

performance management cycle. This step distinguishes performance management as a
process from performance appraisal as an activity.

Every employee is responsible for managing his or her own work performance. With this
context managing consists of:

 Maintaining positive approach towards work

 Updating and revising initial objectives, performance standards and job competency
areas as conditions change
 Requesting feedback from supervisor
 Providing feedback to supervisor
 Suggesting career development experiences
 Employee and supervisor working together, managing performance management
process

PHASE 3: ASSESSMENT/ REVIEWING: Reviewing is the third step in

performance management cycle. It includes:

 Comparing actual results with compared results

 Receiving and providing feedback
32
  Engaging in constructive dialogue to reinforce positive performance and opportunities
for improvement
 Recalibrating expectations for next performance management cycle

Employee responsibilities during the performance management cycle

PLANNING
 Working with your supervisor to understand performance objectives identified for
your position.
 Processing the performance objectives your manager has identified.
 Agreeing on performance expectations for the next performance cycle.
 Establishing milestones.
 Committing to goal achievement.

MANAGING
 Maintaining a positive approach to your work.
 Providing updated information about progress in meeting performance objectives
 Offering suggestions to enable improved performance.
 Suggesting career development experiences
 Asking for feedback from your supervisor.
 Actively listening to coaching feedback provided by your supervisor.

REVIEWING
 Coming to the performance review meeting prepared to discuss your achievement of
performance objectives.
 Identifying strengths and opportunities for improvement.

33
 Suggesting professional developmental opportunities.
 Reviewing your Position Description Form and identifying possible revisions.

34
3.5 PERFORMANCE REVIEW FORM

The performance review form provides periodic written review of individual

performance, in the context of ongoing performance management process. It is designed
to facilitate constructive discussion between the staff member and supervisor, in order to
clarify performance objectives, provide feedback about staff member’s performance with
respect to competencies in several key areas, provides a framework for identifying the
staff member’s development plan and serve as a basis for annual merit increase decision.

3.5.1 PERFORMANCE OBJECTIVES

This section of performance review form is used to record performance objectives and
evaluation criteria at beginning of a review period. The supervisor is responsible for
identifying performance objectives and evaluation criteria and communicating it to the
staff member. During the review period, the supervisor and staff member are encouraged
to review performance in meeting the identified objectives. It is recognised during the
performance cycle, objectives and evaluation criteria may be revised, added or deleted, in
order to meet changing organisational needs. At the end of performance cycle, the
supervisor is responsible for assessing staff member’s performance, using the evaluation
criteria as a measure and reviewing the assessment with the individual. Factors
contributing to performance objectives, which are not at expectation, should be addressed
in developmental plan section of performance review tool.

3.5.2 KEY PERFORMANCE COMPETENCIES

At the beginning of performance cycle, the supervisor is responsible for reviewing

expectations with staff member in key performance competency areas as related to

35
 individual’s position description form. It is recognised that a key competency may not be
relevant to a particular position and in some other cases other key performance
competencies may be appropriate. At the end of performance cycle, the supervisor is
responsible for assessing the staff member’s performance against communicated
performance expectations and reviewing the assessment with the individual. Performance
that does not meet expectations should be addressed on development plan section of
performance review.

3.5.3 DEVELOPMENT PLAN

This section of performance review is used to identify development plans. There are
mainly four kinds of development plans:

a) Development to close performance gaps: The supervisor in conjunction with the staff
member, should identify development plans for any performance objectives or key
competency which is assessed at below
expectation performance level.
b) Development to enhance job skill and performance: Plans identified by a supervisor
with the individual to provide opportunities for a staff member to enhance job related
skills and performance.
c) Development for career advancement: Plans identified by supervisor and individual to
enhance the promo ability of the staff member.
d) Development for career exploration: Staff members may initiate a developmental plan
to provide opportunities for career exploration through cross – training or mentoring
activities.

Development plans which address performance at below expectation level and those
initiated by a supervisor as part of performance review process at the end of next review
period.

36
3.6 PERFORMANCE MANAGEMENT IN JINDAL Industries

Performance management in JINDAL Industries is use of interrelated strategies &

activities to improve performance of individuals, team & organisation. The performance
management in other words encourages employee action to improve business results. It
links earnings to systematic objective setting & focus on individual & team performance.
This system also takes into consideration the quantitative & qualitative guidelines for
implementing its business strategy. Thus, performance management at JINDAL
Industries helps the company by following:

1. For personnel decisions such as promotions, transfers, assignments and terminations

2. To identify training and development needs

3. Acts as a criterion against which selection and development programs are validated

4. Acts as a basis for reward allocation, i.e. increase in salary

The employees in JINDAL Industries first set up their objectives that are set in a
Position Profile Form. A position profile is an instrument which provides details on
responsibilities & tasks required to be performed by position holder. A generic position
profile is applicable to a job where specific position profile can be applicable to an
individual. This form is divided into four main parts i.e.

- Basic data- this section includes basic data regarding the position that employee
holds its title, and reasons as to why he holds that position.
- Responsibility level- this section includes the area and level of responsibility the
employee handles

37
 - Competency- this section explains about how much knowledge and capability
does the employee hold against his respective job position

- Additional requirements- it includes any additional requirements that are not

mentioned in the above headings

After this process the employees set their objectives in relation to company, business
divisions or corporate departments. The responsibility for completion of objective setting
& review lies with the supervisor. Further the objectives are set with a dialogue between
supervisor & employee. The purpose of this is to link the earnings to the systematic
objective setting and focus on individual and team performance.

In JINDAL Industries the employees generally set their objectives based on

S.M.A.R.T. criteria i.e.

Specific - Whether the target is precisely described?

Measurable -Whether the target is measurable?

Active influence - If the employee influence target attainment to higher degree?

Realistic - Is the target realistic & challenging?

Time bound - Are clear dates set for target completion?

Another part of evaluating the performance of employees in JINDAL Industries is

use of an Employee Dialogue. The Employee Dialogue of JINDAL Industries is
based on the principle that “If things are going well for the employee then things are
going well for the company”

38
An Employee Dialogue is a tool which provides a platform to an employee to get an
understanding of responsibility aligned to business objectives & plan for personal
development & salary growth. The manager is responsible for conducting & holding the
employee dialogue. Both the employee and the manager need to be able to present their
views in planning, reviewing & assessing the performance & competencies in order to
come to conclusion. A successful dialogue has an open discussion style.

The Employee Dialogue process is an interactive process between the manager and his
respective employee. Before conducting an employee dialogue the employee needs to be
clear about his achievements and competencies on other hand the manager should also
have a clear picture about employee’s competencies, capabilities and his performance in
the organisation.

An Employee Dialogue constitutes basic details about the employee, action plans (on
part of manager and supervisor to document their ideas and plans towards developing
competencies), training requirements, compensation decisions & their Personal
Perspectives. The aim of putting a section of Personal Perspective is to let the
employee express his/ her professional career. This statement should be close to reality
but not be actively restricted by the manager. These Personal Perspectives are analysed
based on the assessment of knowledge, capabilities & objective achievement to cover all
the aspects of individual performance as well as other work areas.

After this process, various measures should be taken to bridge the gap & strengthen the
competencies between knowledge/ skills & capabilities.

39
 CHAPTER - 4

RESEARCH STUDY AT JINDAL Industries

4.1 OBJECTIVES OF THE STUDY

A research was conducted in JINDAL Industries to understand the Performance

Management procedure being followed in the company. On the basis of the followed
procedure the personal perspectives of the employees of PG division were studied with an
objective to understand what categories of personal perspectives the employees held. The
outcome of this study will be to analyse the efficient employees depending on their grades
and ratings, taking necessary actions to review their personal perspectives. The project will:

- Analyse the methodology carried by JINDAL Industries to analyse

performance of employees
- Help efficient employees in enhancing their performance by providing them with
required facilities
- Examine the process that holds managers accountable for employees
performance management
- Consider the impact of performance management system on Human Resource
department
- Examine the process that ensures employees understand how their performance
affects organisational goals

40
4.2 SCOPE OF STUDY

This study covers the employees of PG (Power Generation) division of Hisar region. The

HR policies of JINDAL Industries were taken into consideration to understand the

scope and procedure being followed by the company to assess the performance of

various employees. The information available in the Employee Dialogue about the

employees was collected; analysed and relevant information was taken into

consideration. Also wherever the information was not complete or gaps in the relevant

information available on the records, the concerned employees were examined in depth

to obtain detailed information for the project. Idea was to cover the maximum number of

employees in all the categories and at all the levels working in the division. The detail of

number of employees working in this division according to the grade level is as below:

1. MG5 - nil

2. MG4 - 2

3. MG3 - 3

4. MG2 - 9

5. MG1 - 13

6. SE - 21

7. EE - 16

41
8. JE - 7

After considering this, it was found that certain information was incomplete, and there

were certain vague statements written in their personal perspectives for e.g. “training

required to enhance skills” but without mentioning the type of training that was required.

Therefore it was important to have an unstructured interview to obtain clarity. As such

these employees were also examined with reference to different factors which motivated

them towards higher performance or which increased their job performance capabilities.

42
4.3 DATA & METHODOLOGY USED

4.3.1 DATA USED

SAMPLING DESIGN

Sampling Area: JINDAL Industries, Hisar.

Sampling Size: The sample size nearly about 70 employees in all, which includes:

 Managers

Sampling Unit: The sampling unit includes:

 Executives and managers of PG dept.

DATA COLLECTION METHOD

The research was based on Primary and secondary Data collected from data available in
the Employee Dialogue forms received by HR dept. and face to face interview conducted
with the employees and their managers in JINDAL Industries.

TIME DIMENSION
The research followed a systematic process spanning 2 months.

43
RESEARCH INSTRUMENTS
Research instrument consisted of an Employee Dialogue Form and Potential data form.
The Employee dialogue Form helped to analyse various details varying from employee’s
personal details to his grade level, personal perspective, relocation willingness, and his
performance, capability ratings.

4.3.2 METHODOLOGY USED

STEP I: The current process of performance management in JINDAL Industries was

studied with the help of material available in the organization. Information was also
obtained from the employees and their managers conducting such processes.

STEP 2: The Employee Dialogue Form for PG division (Hisar) were studied.

STEP 3: The Personal Perspectives of the employees were studied in detail & ten fields
were identified covering growth competencies, potential etc. so as to understand the
performance and aspirations of employees.

The identified fields are as follows:

- Greater responsibility & higher position

- Enhance skills & knowledge
- Growth
- Training
o Technical
o Non - technical
- Change in function

44
 - Change in location
- Higher qualification
- Projects
- International exposure
- Any other information

STEP 4: The fields were assigned to the personal perspectives of the employees after
studying them in detail.

STEP 5: The data was presented in the graphical form with respect to the grades
assigned in the company.

STEP 6: The respective employees and managers were met, and more detailed study was
conducted to understand what facilities employees wanted from their managers and HR
dept. to enhance their performance and capability in the organisation.

STEP 7: Finally, the analysis was done whether the action was required to be taken by
the manager or HR dept. or both to facilitate the employee for his personal perspective.

45
4.4 LIMITATIONS OF THE STUDY

 Due to time constraint the personal perspective of employees belonging to PG

department was only studied

 As the employees and their respective managers belonging to location other than
Hisar could not be met, the employees positioned at JINDAL Industries were
only covered.

 Due to the summer training period of 2 months the Employee Dialogues pertaining
to month of April could only be studied, therefore the employees who joined the
organisation after the month of April, could not be taken into consideration

46
 CHAPTER – 5
FINDINGS AND ANALYSIS

An organisation’s performance measurement system strongly affects the behaviour of

people both inside and outside the organisation. Hence, the study was conducted to
understand the procedure being used in JINDAL Industries regarding performance
management. The HR policies related to performance management were studied in
detail. The forms involved in measuring the performance of employees were studied in
detail for e.g. INDIVIDUAL OBJECTIVE SETTING, POSITION PROFILE and
EMPLOYEE DIALOGUE which helped in evaluating the employees in the best possible
manner.

The INDIVIDUAL OBJECTIVE SETTING forms helped to analyse the various

objective settings of the employees and understand the preferences of their objective
setting. In the POSITION PROFILE forms the objectives are further broken down into
tasks and responsibilities to be carried out by the position holder. The tasks and
responsibilities are necessarily to be discussed with the respective manager and finally it
is approved.

The EMPLOYEE DIALOGUE form was more emphasised. The employee details were
studied varying from basic details like his name, supervisor’s name, roll no and other
details like his ratings, personal perspectives, whether the employee was ready for
relocation (flexibility), and the position he/she holds (grades) etc. Further, after analysing
the personal perspectives of the employees ten distinct areas were identified and the
personal perspectives studied were related to them and they are listed below:

47
 1. Greater responsibility & Higher position
2. GrowthEnhance skills & knowledge
3. Training
3.1 Technical
3.2 Non - technical
4. Change in function
5. Change in location
6. Higher qualification
7. Projects
8. International exposure

10. Any other information

- Greater responsibility & higher position: The employees who had personal perspectives
to attain higher position and to handle greater responsibility or both were categorised
under this aspect. For e.g. “looking for a larger role in PG in India or abroad”

- Growth: This included employees willing for growth opportunities in the company. For
e.g. “Would like to overcome the shortcoming & strive for higher performance & fast
growth in the organization.”

- Enhance skills & knowledge: Employees willing to enhance their skills by attending to
relevant courses or learning German language for better communication with the German
customers, or certain other ways to enhance skills were classified under this category

- Training: This category included the employees requiring necessary training to enhance
their performance and to perform their work in better and efficient manner. The training
needs were further categorised into two sub – groups i.e. Technical & Non – technical.
The Non - technical category includes soft skills training like communication skills etc
and the former includes training in their area of assigned job.

48
 - Change in function: Certain employees were willing to change their function i.e.
change the profile of the job they were currently working in, due to various reasons

- Higher Qualification: To gain knowledge and increase their pay packages employees
were willing to gain higher qualification like doing a Post Graduate course from reputed
institutes.

- Projects: Working in varied projects provides experience to employees and adds to their
performance. Due to these reasons employees wish to work in different projects.

- International exposure: Employees of JINDAL Industries. look for various

opportunities to gain experience in JINDAL Industries,specifically for international
exposure.

The personal perspectives of the employees were categorised based on above aspects.
This data was analysed and the category consisting of highest no. of employees was
identified. The analysis for PG division is as follows:

I.1 PG (Power Generation): This department is having 71 employees belonging to Hisar

location. The results of personal perspective are as follows:

49
In this department the results showed that the highest number of employees i.e. 36 aspire

for greater responsibility & higher position. The next two categories were enhancing

knowledge & skills (17) & projects (15) respectively.

50
Further the analysis was carried out on grade basis; JINDAL Industries constitutes of 8
grade levels which are as follows in descending order:
1. MG5 – Managerial level 5
2. MG4 – Managerial level 4
3. MG3 – Managerial level 3
4. MG2 – Managerial level 2
5. MG1 – Managerial level 1
6. SE – Senior Executive
7. EE – Executive
8. JE – Junior Executive

51
First the analysis was carried out for the category “Greater responsibility & higher
position” and the results are as follows:

The highest number of employees who are aspiring for a higher responsibility and
position in the organisation constituted of SE grade level (28%), following with MG2
level (22%). In other words at this level the employees showed the highest willingness
to take a greater responsibility in the organisation. This category includes employee’s
52
 willing to lead a team of people being promoted to the next level in the organisation as
project leaders

The next highest category is “Enhance skills and knowledge” the analysis and the
results are as follows:

The analysis shows that the Employees at EE level (35%) were more willing to enhance
their skills and knowledge so that they could perform their job effectively. The type of
skills included interpersonal skills, better communication skills, better exposure to the
basic concepts related to their job e.g. exposure towards engineering and field
instrumentation

53
The next category analysed was “Projects” which showed that:

In the PG dept. the employees at SE level (40%) showed more willingness to handle
varied projects. The employees either wanted to handle multiple projects in their category
or specifically wanted to handle “T3000 Project”. The handling of various projects helps
the employees to gain more experience related to their job profile.

THE INTERACTION PROCESS:

After analysing the categories, the list of supervisors in PG department was prepared, and
the interaction was carried on with the respective supervisors and their employees.
The interaction with each supervisor was approximately of about 15 – 20 minutes
duration and unstructured questions were asked. Some of the employees were also
interviewed regarding their perspectives. The results of the interaction process are as
follows:
54
AT MG LEVEL (Managerial Level):

 Most of the employees took the process of their performance management quite
seriously, they took it as an opportunity being provided to them to move ahead and
achieve their goals, besides the goals of the company

 There were 27 employees in MG level in PG department, out of which almost 66.6%

employees are aspiring for a greater responsibility & higher position in the
organisation, another 18.5 % employees were willing for enhancement of skills and
knowledge and the rest included willingness to handle the projects, or for a change in
function.

 The personal perspectives of category “Greater responsibility & higher position”

varied in following manner:
 To handle a business of higher volume
 To have a larger role in the respective dept.
 Promotion to the next level
 To become a team leader

After the interaction process carried on with the supervisors it was found that at MG
level almost 50 % of the employees were being provided with the higher responsibility
as of now and the other 50 % still requires to improve their communication skills and
build on their capabilities or due to the reason that respective opportunities were not
available in the organisation currently.

At MG level approximately there are only 51.85% cases where action was required on
behalf of their manager for providing them opportunity according to their capability.
On other hand there were only 1.11% cases where HR required to help the employees
in their efforts to improve their communication skills, or enhance their concepts.

55
 CONCLUSION: The employees at MG level preferred writing their perspective in a
more specific way, and most of the employees are being provided with the opportunity
to handle better responsibility. HR too played a better role and all the training
programmes are being conducted on time, apart from this, opportunities were also
being provided to improve skills.

AT SE LEVEL (Senior Executive Level):

 There are 21 employees at SE level in PG department, approximately 48% of

employees at this level showed a personal perspective of greater responsibility &
higher position, followed by 33% of employees to handle varied projects. There
were certain employees who wanted to change their current function and some
employees who had left the personal perspective column Blank.

 The perspectives of employees at SE level regarding greater responsibility &

higher position did not vary much from MG level.

 There were 3 employees at this grade level who showed willingness to change
their current function, due to their personal reasons.

 Surprisingly, at this level there were almost 66.6% cases where no action could be
taken regarding the personal perspectives of the employees on behalf of the
manager or the HR dept. The reasons behind this was that most of the employees
at this level were required to improve their performance and capability ratings, or
they had left their column blank, or they had to work on their skills so as to carry
out the job effectively, or a combination of above.

 At this level the employees belonging to IT department were facing stiff

competition regarding salary factors from competitor companies,

56
  due to which they sometimes feel de motivated. HR and their respective manager
had to look seriously into this matter, so that better opportunities can be provided
to the employees.

AT EE LEVEL (Executive Level):

 There were 16 employees at EE level in PG department, at this level 32% cases

showed the personal perspective of greater responsibility & higher position and
enhance of skills respectively. Approximately 25 % employees at EE level were
willingness for growth in the organisation or to handle better projects.

 25% of cases require action by HR to help employees with their perspectives, in

terms of improving their skills, rest 30 % showed that opportunities are required to
be provided by their manager.

AT JE LEVEL (Junior Executive Level)

 There are 7 employees at JE level in PG department, at this level the employees

are more willing to learn and gain experience from their peers and manager, so as
to perform their job effectively.

 Few of the employees also showed willingness to work or get trained at JINDAL
Industries, but PG department currently, does not provide opportunities at this
level for international exposure.

57
 It was interesting to note that at this level employees were being provided with
good opportunities than at other level, because the managers believed that
newcomers showed more enthusiasm to work hard and willing to learn,. At this
stage training can be provided to them, and they can be moulded in the way
required by the organisation.

58
 CHAPTER – 6

CONCLUSION

The performance management system is widely recognized as a key business strategy

for driving strong business results. Through goal setting, performance appraisal and
feedback, continuous training and development efforts, and performance related pay,
Performance Management can help companies incorporate strategies into individual
employee efforts and turn their potential into desired results.

It can assist in motivating employees for better performance and can strengthen their
commitment to the organization. Further it can assist in organizational processes that are
important to organization’s long term success such as organizational learning, knowledge
management, change management and succession management.

This study at JINDAL Industries has proved that their performance management
system is one of the most important parts of organization. The employees are taking the
system seriously and as an opportunity to grow in the organization. The system is clear
and simple which helps the employee and the supervisor to interact/ communicate in a
better way.

The analysis showed that the priority among the employees was to handle higher
responsibility in the organization, including some who were willing for some
international exposure at JINDAL Industries.
The employees are also being provided regular training opportunities by HR dept. so that
they can improve on their skills and knowledge. On other hand still help is required from
HR dept. to the employees with counseling, so that the employees can be guided in a
better way to understand that what type of training would be required so as to improve
their performance effectively.

59
At MG level most of the employees were quite experienced hence their supervisors
provided them readily with higher responsibilities and greater position. There were only
a few at this level who needed to improve further on their communication skills, for
whom necessary training was being provided. On other hand at SE level, the employees
were trying to gain more experience and enhance skills with the help from their
colleagues and supervisors, due to which the employees had to learn more themselves
resulting in no action required from their respective supervisor and HR dept. At EE and
JE level too the employees were being provided with the opportunities to learn as well as
grow in the organization. Even the HR helped the employees by providing them regular
counseling and training.
To conclude the employees were overall satisfied by the opportunities provided to them
by their managers, and HR, and they tried their best to grow in the organization with
fulfilling the objectives of the organization.

60
 BIBLIOGRAPHY

www.jindalindustries.com

www.google.com

www.wikipedia.com

www.hrnonline.com

www.managementhelp.org

- HR policies of the organisation

61