Performance Management

Project: PM at Bharat Heavy Electricals Limited Presented by:

Section: ABC No. 8 Ameesh Sharma 08FN011 Anoop Kumar 08HR012 Shurti Mishra Group

Bharat Heavy Electricals Limited

BHEL is the largest engineering and manufacturing enterprise in India in the energyrelated/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,

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
Every Executive whose performance is assessed in MAP

Appraiser
Every Executive who Assesses the performance of one or more Appraisees that report to him/her Will help appraisee manage his performance & provide continuous feedback and coaching

Reviewer
The Appraisers Appraiser, who is responsible for reviewing the entire performance process Will ensure Objectivity, Transparency & Consistency

Its about his Performance He is the key driver of the process

Performance Management Cycle at BHEL

Anchoring targets to the rating scale Developing action plan Assigning weights to KRAs

Appraiser
ONGOING FEEDBACK

Final review Calculation of final score Normalization

Appraisee

Mid year review Development plan

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

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 5point 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
Order Booking

Target
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. Standard unit of measurement fixed for each KRA for uniformity in measurement. 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. Weightages for Operational and Capability Building KRAs have been suggested against all KRAs for all levels of executives To encourage executives to take up Capability Building activities, a minimum KRA (C) weightage has been prescribed based on roles. KRA Masters loaded in the e-enabled system.

2. 3.

4. 5. 6.

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 KRAs

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 Medium Low : : 25 max. : 18 max. 12 max.

For KRA-O :
High Medium Low : : 20 max. : 15 max. 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.
Significantly Above Expectations

Moderately Above Expectations

Meets Expectations

Moderately Below Expectation

Significantly Below 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 complete SelfReview on Performance Targets & create Development Plan

Appraisee will submit SelfReview to Appraiser

Appraiser will provide feedback on performance and guide Appraisee on future direction

Mid Year feedback will be documented

Training needs identified used as input for deciding training programmes

In case of extraneous circumstances, The Mid Year Review provides for a revision in the Appraisees 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 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 Attend a beginners training course at NIIT / APTEC Use computer for all correspondence Attend technical seminars held in-house (minimum of 4 in the year) Read technical journals to keep abreast with the latest developments in the filed Take complete responsibility for 2-3 bids

Team Work

Job Knowled ge Compute r Literacy

Final Review
Assessment of Appraisees Level of Achievement on all KRAs
Time: April

Calculation of Overall Score

KRA KRA 1 KRA 2 KRA 3 KRA 4 KRA 5 Weightage (%) 25 25 25 10 15 Rating on 5 pt. scale 4.5 4 4.6 4.7 3.5 OVERALL SCORE Indl. KRA Score 1.12 1 1.15 0.47 0.52 4.26

The KRAs 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
The Mid Year and Final Reviews are specifically focused on Feedback and Coaching It requires the Appraisee and Appraiser to have a formal feedback session Feedback can be of various types: positive corrective, feedback for the purpose of sharing information and feedback focused on identifying obstacles to performance

Appraiser
ONGOING FEEDBACK

Appraisee

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
Apraisees responsibilities:
Commitment to goal achievement Ongoing performance feedback and coaching Communication with supervisor Collecting and sharing performance data Preparing for performance reviews

Supervisors 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).

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