INTRODUCTION

Best Price Modern Wholesale is a Business-to-Business, Cash and Carry wholesale format,
owned and operated by Walmart India Pvt. Ltd. Walmart is the world’s leading retailer renowned
for its efficiency and expertise in logistics, supply chain management and sourcing.

MISSION:

The mission of Best Price is to “Enable small businesses to prosper.” We are committed to our
mission by providing thousands of items at the lowest possible prices to our members comprising
of:

 Resellers

 Offices and Institutions (O&I)

 Hotels, Restaurants and Caterers (HoReCa)

A Best Price store spans over 50,000 Sq. ft. offering more than 5,000 items, across product
categories such as:

 Consumer Packaged Goods (Food & Non Food)

 General Merchandise

 Household Electronics

 Appliances

 Fresh (Fruits, Vegetables, Poultry, Mutton, Fish)

 Dairy (Milk and Milk Products)

Many more other products are also available under one roof, at everyday low and transparent
prices to business members. Over 90-95% of these products are sourced locally. This helps to
keep costs to a minimum, add to the growth of the local economy and create job opportunities.

Walmart India currently operates 20 Best Price Modern Wholesale stores in 9 states across India.
The first wholesale Cash and Carry store was opened in Amritsar in May 2009.
The Balanced Scorecard is the measurement tool. It provides the management with a tool and a
process to measure the performance of people practices and the HR function from multiple
perspectives:

 Customer Perspective
 Internal Process Perspective
 Financial Perspective
 Operational Perspective

1. Customer Perspective:

This focuses on the effectiveness of HR from the internal customer viewpoint.

 Are the customers of HR satisfied with their service?

 Are service level agreements met.
 Do the customers think they can get better service elsewhere?

The three objectives are:

 Increasing average customer size of Wal-Mart, increasing customer rating of Wal-Mart,

and reducing the number of customer complaints.
  The Mission is to help save money so that they can live better. If Wal-Mart helps
customers save money, the customers will buy more from Wal-Mart.
 If Wal-Mart helps customers live better, they will give an improved rating to Wal-Mart.
If the customer save money and live better, then there will be fewer complaints against
Wal-Mart

Examples

 Employee perception of the company, as an employer

 Customer/market perception of the company, as an employer. Etc

Objectives Measures Target Initiatives

Increase average Average customer size. Increase customer Provide a wider

customer size of size by 5% every variety of products
Wal-Mart. year for next five to customers.
years.

Increase customer Customer Increase customer The prices at

rating of Wal- Mart Rating rating by 10% in Walmart should be
one years’ time. the lowest in the
market.

Reduce Customer Complaints Reduce the number Improve quality

number of of customer control of products
customer complaints received stocked and
complaints. by 4% every year for improve customer
three years. service.

2. Internal Process Perspective:

The strategic perspective focuses on the measurement of the effectiveness of major strategy-
linked people goals.

The objectives are:

  Reducing administrative expense/total revenues, reducing lead time from online orders to
delivery at Wal- Mart, and reducing waiting time for customers at counters.
 The strategy of Wal-Mart is cost leadership; reducing administrative expense/total
revenues will help Wal-Mart reduce costs.
 If Wal-Mart helps customers live better, it must make faster deliveries and reduce waiting
time for customers.
 Reducing waiting time for customers frees their time and enables them to live better.

Examples

 Change management capability of the organization

 Organization compensation and benefit package with respect market rate.
 Organization culture survey
 HR annual resource plan.
 Skills/ competency level etc.

Objectives Measures Target Initiatives

Reduce Administrative Reduce administrative Train the

administrative expenses/total expenses/total revenue employees so
expense/total revenue. by 2% every year for that they become
revenues. next five years. more efficient.
Reduce lead Average time Reduce time taken by 5 Use automatic
time from online taken. % in every year for next packing and
orders to three years. handling technology
delivery. for speeding up.

Reduce waiting Average Reduce the average Change the layout of

time for waiting time. waiting time by 15% the store so that more
customers at within one year. checkout counters are
counters. opened.
3. Financial Perspective:
This perspective tries to answer questions relating to the financial measures that demonstrate
how people and the HR function add value to the organization. This might include arriving at
the value of the human assets and total people expenses for the company.
 The three objectives are Increase revenues/total assets ; Increase revenues/employee and
Increase return on investment.
 The strategy of Wal-Mart is cost leadership; increasing revenues/total assets is a strong
indicator of cost reduction. Further, increasing revenues/employee will also help maintain
its cost leadership.
 Finally, Increase return on investment will be possible only if Wal-Mart controls its costs.
Each of the financial objectives is related to the strategy of Walmart

Objectives Measures Target Initiatives

Increase Revenue/total assets Increase Increase revenues;

revenues/total percent. . Revenue/total make a more thorough
assets. assets by 8%
use of assets.
during the next
year.
Increase revenues Revenue/employee Increase Increase employee
revenue/employ ee efficiency through
employee.
by 5 % during next training and
two years. technology.

Increase return on Return on investment Increase return on Reduce operating

investment. investment by 2% costs, and achieve
every year for three economies of scale
years. . through bulk
purchases.

4. Learning and Growth Perspective:

This piece of the Balanced Scorecard provides answers to queries about the effectiveness and
efficiency in running HR processes that are vital to the organization. Examples include
measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.
  The three objectives are Increase training hours per employee at Wal-Mart; Reduce
employee turnover rate at Walmart and Increase use of employee’s view .
 The strategy of Wal-Mart is cost leadership; reducing employee turnover rate will lead to
cost reduction.
 Further, Increasing training hours per employee will make employees more efficient and
so will lead to cost reduction and better prices to customers.
 Finally, Increase use of employee’s view will provide greater initiative from employees
to reduce costs.
 Empowered employees will be motivated employees and will help Wal-Mart control its
costs

Examples

 Cost per recruitment promotions

 Absenteeism by job category
 Training cost per employee
 training hours per employee
 Average employee tenure in the company .
 Attrition rate

Objectives Measures Target Initiatives

Increase training Average training Increase training Hire outside trainers.

hours per hours per employee. hours per employee Managers should
employee. by 5% each year for increase their time
the next three years. spent for training.
Reduce employee Employee turnover Reduce employee Increase employee
turnover rate. rate. turnover rate by 3% participation in
each year for next decision making also,
thee years. increase job rotation.

Increase use of Empowerment Increase Give more

employee’s view index. empowerment index decision making
by 5% every year for authority to
at least 3 years. employees.
All four components of the scorecard are used to define and measure the effectiveness of people-
management activities and how the HR function executes them. This provides a strategic
measurement and management process to show the connection between a company’s business
strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can
provide an ideal approach to measure the contribution that human resource management makes
to business success.

With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the
workforce indicators that are key to their business success. Such solutions enhance HR’s ability
to provide counsel to line management and deliver results that make a difference to the
achievement of their goals and strategy and thereby to shareholders.
The apparent and inherent values that the HR Balanced Scorecard brings include:
Measurement provides the data and facts to support business decisions, giving credibility to HR
recommendations and initiatives.

Key Result Area or KRAs refer to general areas of outcomes or outputs for which the
department's role is responsible. A typical role targets three to five KRA.

Identifying KRAs helps individuals: ·

 Clarify their roles

 Align their roles to the organization’s business or strategic plan
 Focus on results rather than activities
 Communicate their role’s purposes to others
 Set goals and objectives
 Prioritize their activities,
 Improve their time/work management
 Make value-added decisions

Description of KRAs

Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the
role is usually devoted to areas of shared responsibility (e.g., helping team members,
participating in activities for the good of the organisation).

1. Position: HRM ( Human resources manager)

 Position reports to: Chief Executive
  Primary objective : Plan, develop and direct Human Resource policies for the
organisation and implement procedures to achieve the most effective use of human
resources to achieve profitability and business objectives.

Specific accountabilities/ responsibilities:

 Plan, make recommendations and devise personnel and industrial relations policy, in
consultation with other senior management.
 Establish and direct the organisation's HR procedures and strategies, taking account of
the operating environment.
 Develop, and direct the setting of performance targets, and participate in business
planning and strategy determinations to ensure HR specifications meet the business
objectives. Prepare budgets, and other management plans.
 Monitor industrial relations developments to prevent and settle disputes. Direct
negotiations with unions, industry groups and industrial authorities to determine
agreements and minimize the possibility of industrial dispute.
 Control and coordinate activities such as personnel administration, staff selection and
training, employee relations, wage and salary administration, security, health and safety,
employee benefits and remuneration strategy.
 Direct and maintain a corporate workforce plan and initiate appropriate action in relation
to the organization’s use and development of employees.
 Represent and direct the organisation in dealings with other organisations, employer
groups, industry associations, unions, government authorities and other relevant bodies as
required.
 Control the collection, maintenance and interpretation of management information and
records to monitor performance, control the preparation of reports (including Affirmative
Action) and authorize the release of information.
 Ensure the organisation's training activities are planned to meet current and future
organisation and employee needs, and satisfy government training requirements.
 Review regularly the organisation's remuneration policy, including its market
competitiveness, benefit and reward structures, and internal relativity and equity.
 Make policy decisions as appropriate, and accept responsibility for operations,
performance of staff, achievement of objectives and adherence to budgets.
 Establish lines of control and delegate responsibilities to subordinate staff; control the
selection and training of staff. May train and advise other managers in Human Resources
or industrial relations matters.
 Ensure all activities undertaken by Human Resource department employees comply with
relevant Acts, legal demands and ethical standards.
Name o the Name of the
Appraisee Appraiser
Job Title Job Id Job Title Job Id
Performance
Date Commenced Discussion
Service Date
Date Appointed to Performance
Job Review Period
Overall Rating
Purpose of the Job Outstanding 5
Superior 4 to 4.99
Good (on target) 3 to 3.99
Marginal 2 to 2.99
Unsatisfactory 1 to 1.99
Sl. W. Sl. KPI Description Target Rating Achieved
KR KRA (%) KPI KPI KPI
A
1. Recruitment/ 20 1 Average time taken per
selection employee 2 months
maximum
2. Workforce planning/ 20 2 Absenteeism [ KPI
=maintain absent rate at
diversity
5%]
Turnover [ KPI = control
turnover rate at 7%]
3. Performance 25 3 Performance appraisals
[KPI = all staff to be
management
appraised at least once
annually]
4. Reward management 20 4 Market oriented salary
structuring [ KPI = total
compensation to sales
12%]
5. Workplace 10 5 Job evaluations [ KPI =
600 lower staff , below
management and
grade 4 to be evaluated
relations

6. Building capabilities 5 6 Training [ KPI = average

training hours per
and organization
employee annually= 3
learning days or 24 hours]
Weightage total KRA Achieved
2. Position: Marketing Manager
 Position reports to: Chief Executive
 Primary objective : Develop, direct and control the organization’s marketing business
strategies and activities to achieve revenue, sales and profit targets.

Specific accountabilities/responsibilities:

 Direct all marketing activities for the achievement of short and long term business
objectives, increased profit, and market control.
 Establish and coordinate the marketing objectives, policies and programs within the
context of the overall corporate plan and, where appropriate, recommend standards and
set targets and quotas.
 Communicate with the sales group in the preparation of the reports, budgets, and
forecasts and ensure they are compatible with support sales plans.
 Appraise the activities of the staff according to overall marketing strategies. Monitor
and evaluate the performance, and the efficiency of staff and procedures.
 Coordinate subordinate staff to optimize the use of human and material resources to
achieve goals. Consult with subordinate staff and review recommendations and reports.
 Direct marketing activities by setting product mix.
 Control and monitor marketing methods, key customer strategies and other
arrangements.
 Direct and control marketing by planning or coordinating advertising campaigns and
promotional activities, product management, market analysis and research and other
consulting work.
 Direct the development of initiatives such as new products, new marketing techniques,
new advertising campaigns, incentive bonus schemes and the dropping of unprofitable
products.
 Maintain necessary contact with major suppliers, customers, industry associations and
government representatives to achieve the objectives of marketing.
 May direct merchandise methods and distribution policy.
 Select, or approve the selection and training of senior staff. Establish lines of control
and delegate responsibilities to staff.
  Ensure all the activities of the sales and marketing group comply with relevant Acts,
legal demands and ethical standards.

Name o the Name of the

Appraisee Appraiser

Job Title Job Job Title Job

Id Id
Date Performance
Commenced Discussion
Service Date
Date Appointed Performance
to Job Review Period
Overall Rating
Purpose of the Job
Outstanding 5
Superior 4 to 4.99
Good (on
target) 3 to 3.99
Marginal 2 to 2.99
Unsatisfactory 1 to 1.99
Sl. Wt. Sl. Wt. Target Rating Achieved
KRA KRA (%) KPI KPI Description (%) KPI KPI
1. Market 20 1 Improve market share 15 0
by 15% minimum
share
2. New 25 2 At least 3 new products 30 0
product
launches
success
3. Gross profit 20 3 Improve gross profit by 20 0
20%
contribution
4. Pricing 20 4 Market oriented pricing 20 0
[ KPI = increase by net
12%]
5. Promotions 15 5 Effectiveness [ KPI = 15 0
improve effectiveness
by 15%]
Weightage total 0 KRA achieved 0