final report - pms

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Introduction TELECOM SECTOR AN OVERVIEW The $8 billion telecommunications sectors in India have undergone a major transformation in the past couple of decades. From a complete monopoly of the public sector, the telecom industry has witnessed the breaking down of monopolies and significant policy reforms, favoring the entry of private players. The private sector has been allowed to make a foray not only into value added services, such as cellular and paging services, but also the basic telephony services. Reforms have taken place in the telecom sector in three phases. The first phase began in the 1980s when in 1984; private manufacturing of customer premise equipment was given the go- ahead. Proliferation of individual STD/ISD/PCO network took place through out the country by way of private individuals franchisees. Also, two large corporate entities, the Mahanagar Telephone Nigam (MTNL) and Bharat Sanchar Nigam Ltd.(BSNL) were created out of the department of telecommunications (DOT) to handle the sectors of Mumbai and Delhi respectively. A high- powered telecom commission was 1

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Page 1: Final Report - PMS

IntroductionTELECOM SECTOR AN OVERVIEW

The $8 billion telecommunications sectors in India have undergone a major

transformation in the past couple of decades. From a complete monopoly of the public

sector, the telecom industry has witnessed the breaking down of monopolies and

significant policy reforms, favoring the entry of private players. The private sector has

been allowed to make a foray not only into value added services, such as cellular and

paging services, but also the basic telephony services.

Reforms have taken place in the telecom sector in three phases. The first phase began in the 1980s when in 1984; private manufacturing of customer premise equipment was given the go- ahead. Proliferation of individual STD/ISD/PCO network took place through out the country by way of private individuals franchisees. Also, two large corporate entities, the Mahanagar Telephone Nigam (MTNL) and Bharat Sanchar Nigam Ltd.(BSNL) were created out of the department of telecommunications (DOT) to handle the sectors of Mumbai and Delhi respectively. A high- powered telecom commission was set up in 1989 and Videsh Sanchar Nigam Ltd. (VSNL) was made the international service provider catering to all telecom services originating from India.

The second phase of reforms in the telecom sector commenced in 1991 with the announcement of the new economic policy. To begin with the manufacturing of telecom equipment was delicensed in 1991, while radio paging services opened up in the 1992. In 1994, the basic telephony sector was opened up by providing licenses to six companies to operate in the basic areas.

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These Companies were: Bharti Telenet, Vodafone, MTS,Hughes Telecom,

Tata Teleservices and Reliance Telecom.

The National Telecom Policy in 1994 emphasized on Universal Services and Qualitative

Improvement in telecom services. While an independent statutory regulatory was

established in 1997, the Internet services were opened up in 1998. Since then, more

companies have been given the go-ahead to basic telephony, such as Reliance, Tatas,

HFCL, Bharati, Aircel, Digilink and Birla AT&T.

The third phase of reforms in the telecom sector began in the late 1990s, with the

announcement of the New Telecom Policy in 1999. The underlying theme of the reform

process of NTP was to usher in full competition through unrestricted entry of private

players in all service sectors. The policy favored the migration of existing operators from

the era of fixed license fee regime to that of revenue sharing. The duopoly rights of the

MTNL and VSNL (VSNLs monopoly ended in April 2002 when the sector was thrown

open to the private sector) were discontinued to herald the era of unlimited competition in

the industry.

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INTRODUCTION TO THE COMPANY

Founded by Shri. Dhirubhai Ambani in the year 1966 Think without constraints…!!!

We were small then - an infant in industry.We are small now - at the doorsteps of opportunity.”

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We will create the next generation communication network and information technology infrastructure that will bring immense value to every Indian, and leapfrog India into the center stage of global Infocomm space

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Reliance - ADA GroupThe Reliance Group, founded by Dhirubhai Hirachand Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 22 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles and retail.

Trust enjoys global leadership in its businesses, being the largest polyester yarn and fiber producer in the world and among the top five to ten producers in the world in major petrochemical products. The Group exports products in excess of USD 11 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited), Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.

Across different companies, the group has a customer base of over 50 million, the largest in India, and a shareholder base of over 8 million, among the largest in the world. Communications (Reliance Communications Ltd.), and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

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ADLABS

RELAINCE

CAPITAL

RELIANCE

MUTUAL

FUNDS

RELIANCE

TELECOM

RELIANCE

MONEY

RELIANCE

ENERGY

RELIANCE

COMMUNICA - TIONS

ADAG

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Chairman's Profile

ANIL DHIRUBHAI AMBANI

Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited.

Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country's first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

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He is a member of:

Wharton Board of Overseers, The Wharton School, USA. Central Advisory Committee, Central Electricity Regulatory Commission. Board of Governors, Indian Institute of Management, Ahmedabad. Board of Governors Indian Institute of Technology, Kanpur. In June 2004, he was elected for a six-year term as an independent member of the

Rajya Sabha, Upper House of India's Parliament a position he chose to resign voluntarily on March 25, 2006.

Awards and Achievements:

Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the

Business Barons - TNS Mode opinion poll, 2004 Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002 Awarded the First Wharton Indian Alumni Award by the Wharton India

Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001.

Selected by Asia week magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June 1999.

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Vision"We will leverage our strengths in executing complex global-scale projects to make

leading edge information and communication services affordable by all individual

consumers and businesses in India. We will offer unparalleled value to create customer

delight and enhance business productivity. We will also generate value for our

capabilities beyond Indian boarders while enabling millions of knowledge workers to

deliver their service globally."

Reliance Communications envisions a digital revolution that will sweep the country and

about a new way of life. A digital way of life for a new India.

With mobile devices, network and broadband linked to powerful digital networks,

Reliance Communications will usher fundamental changes in the social and economic

landscape of India.

Reliance Communications will help men and women connect and communicate with

each other. It will enable citizens to reach out to their work place, home and interests,

while on the move. It will enable people to work, shop, educate and entertain themselves

round the clock, both in the virtual world and in the physical world. It will make available

television programs,movies and news capsules on demand. It will unfurl new simulated

virtual worlds with exhilarating experiences behind the scenes of computers and

televisions.

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Users of Reliance Communications’ full range of services would no longer need

audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to

see movies. Books and CD ROMs would not be needed to get educated. Newspaper and

magazines would not be required to keep abreast of events. Vehicles and wallets will

become unnecessary for shopping.

Reliance Communications will disseminate information at a low cost. “Make a

telephone call cheaper than a post card." These prophetic words of Dhirubhai Ambani

will be a metaphor of profound significance for Reliance Communications.

Reliance Communications will regularly unfold new applications. Continually adapt new

digital technologies. Create new customer experiences. Constantly strive to be ahead of

the world.

Reliance Communications will transform thousands of villages and hundreds of towns

and cities across the country.

Above all, Reliance Infocomm will pave the way to make India global leader in the

knowledge age.

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ORGANISATION STRUCTURE

The organization structure defines various levels of organization i.e. Business, Work

Centers, Functions, Circles, Cities, etc. The Reliance Infocomm Organization structure

includes:

Business Unit: Enterprises, consumer, Wholesale, & Web stores

Work Centers: Network (O&M - Wireless, O&M - NLD/ILD, O&M - IDC, O&M -

OSP, EWC- Long Distance, EWC-Wireless, EWC-Wire line, OSS, ITC, NOC), Call

Center, BSS, (CRM, RA) m, Billing and Collection, Applications and Solutions Group.

Functions: HR, Commercial, Purchase/Logistics, IT Infrastructure, and Corporate

Staff Function.

Communications operations are spread over 673 cities in the following Circles:

1. Andhra Pradesh 2. Delhi and Rajasthan

3. Gujarat 4. Karnataka

5. Kerala 6. M.P. & Orissa

7. Rest of Maharashtra 8. Mumbai

9. Punjab, Haryana & H.P. 10. Tamilnadu

11. U.P. (East & West) 12. West Bengal & Bihar

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WORK LEVELSThe organization structure also defines the organizational functions, considering the

nature and scope of functions to be performed. The following four work levels broadly

indicate the nature of accountability and responsibility assigned to role holders at the

work level.

WORK LEVELS1. L1-Leadership 2. L2- Managerial

3. L3-Executive 4. L4-Support

L1-Leadership Role - Accountable for participating and leading strategy

creation/direction. Overall business/team performance responsibility for designated area.

l2-Managerial Role- Accountable for execution of business plan and achievement

of team/individuals targets .Be responsible for maintenance of key company assets

(customers, physical assets, people)

L3- Executive Role- Responsible for achieving individual/ team target.

L-4-Support Role- Responsible for performing assigned activities and support

other work levels.

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Organization Set Up

DAKC Head Office

Hub

Circle

Cluster

DAKC Head Office

Delhi, Rajasthan &

Haryana

Rajasthan

Jaipur, Jodhpur,

Udaipur, Bikaner,

Alwar, Kota & Ajmer

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Enterprise Personal Shared

Services

Network

Web World DTH

Reliance Communications Businesses

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The business of RELIANCE COMMUNICATIONS is divided into five sub divisions-

1) PERSONAL BUSINESS- This business of RELIANCE is counted amongst the major business and hence contributes towards the 70-80% of the RELIANCE BUSINESS. This business consists of the Prepaid and the postpaid connections by 1 to1 dealing. If the no of connections are more than 5 then it is said to be commercial. This business comprises of Personal distribution, Win, retail, business commercial, direct sales, marketing, CSD. The HR head of the personal business is Mr. SANJEEV SHARAN.

2) ENTERPRISE BUSINESS- This business of RELIANCE is headed by Mr. Prem Bandula. This business contributes arond10-15% of the business. The enterprise business comprises of the CWG, BB, PCO.

3) DTH- This stands for DIRECT TO HOME services. In comparison with their competitors RELIANCE has also started their services of BIG TV which is still to be launched.

4) SHARED SERVICES- This is that part of the business which does not contributes directly to the business but helps in the effective dealings and the conduct of the business. It includes IT, COMMERCIAL.

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HR ACTIVITIES AT RELIANCE COMMUNICATIONS RAJASTHAN

HR ACTIVITIES

TALENT Acquisition

admin TALENT DEVELOPMENT TALENT Management

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HR MISSIONFacilitate, coach and enable best in class and

leading edge HR practices across the extended enterprise of Reliance Communications and thereby nurture a customer center, positive

energy organization that will maximize stakeholder satisfaction.

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Objectives of the Study

Understand the operations of HR function

Study of Talent Development » Performance Management

System» Employee Engagement

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RESEARCH METHODOLOGY

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Critical Incident Score

The basis of this method is the principle that there are certain significant acts in each

employee’s behavior and performance, which makes all the difference between success

and failure on the job.

The supervisor keeps a written record of the events (either good or bad). Feedback is

provided about the incidents during the performance review session. Various behaviors

are recorded under such categories as the type of job, requirement for employees,

judgment, learning ability; several research studies are undertaken and accomplished year

after year but in most cases very little attention is paid to this important dimension

relating to research.

Research design is a model of master plan for gathering formal information. It calls for

certain specification of methods and procedures for obtaining the required information.

Marketing Research Project is defined as either EXPLORATORY RESEARCH or

DESCRIPTIVE RESEARCH depending upon the objectives of the study.

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The object of the Exploratory is to seek new ideas and to discover new relationship

between different set of factors in a way that will permit statement of specific hypothesis.

To find out this hypothesis, study of secondary sources of information, survey of

knowledgeable person or case studies are conducted.

Descriptive research describes situation and provides information, which helps in

decision-making. Such research requires a formal design, which helps the researcher to

identify cause and affect relationship.

This can be done by case statistical study and experimentation. The present research is a

descriptive research, as it wants to find out effectiveness of present performance appraisal

system. The information has been gathered from survey of sample people selection from

the company.

COLLECTION OF DATA

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Data collection is an integral part of the marketing research. There are several ways of

collecting the appropriate data, which differ considerably in context of money costs, time

and other resources at the disposal of the researcher. The researcher should keep in mind

two types of data viz. Primary and Secondary.

The primary data are those, which are collected afresh and for the first time, and thus

happen to be original in character.

Primary Data is collected through:

Questionnaire- in which division of questions are as follows:

(a) No. of close ended questions -9

(b) No. of open ended questions-3

Observation

Unsturctured interviews

The secondary data are those, which have already been collected by some one else like

various journals and publications of the company and that are used for quick compilation

of the report.

Both the methods were used for the compilation of the project.

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Sampling

Method: Simple Random Sampling

Area: Circle Office in Jaipur and also other offices in

Jaipur of Reliance.

Unit: Employees of Reliance communications in circle

office.

Sample size: 100 employees

Research tool: Questionnaire.

PROJECT OVERVIEW

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Hr activities at reliance communications in rajasthan includes following:

Talent acquisition Talent management Talent development admin

The hr department of reliance communications is divided into four

categories:1) TALENT ACQUISITION- It comprises of RECRUITMENT AND SELECTION of the

candidates. Generally this process of finding the suitable candidates is done through the various consultancies such as MARGDARSHAK, ADECO, etc. The selection procedure in

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RELIANCE is started through the process of short listing the candidates who are eligible and are fit in the culture. The first interview is with the respective HOD and then with the HR HEAD ( Mr. Sanjeev Sharan)and finally with the CIRCLE HEAD( Mr. Gurpreet singh)

2) TALENT DEVELOPMENT- It comprises of the TRAINING AND THE DEVELOPMENT OF THE EMPLOYEES. This work of training and development also includes the PMS which is conducted QUARTELY and the PLI (PERFORMANCE LINKED INCENTIVES) are given to the employees respectively. Various training needs are identified by the HOD and the same is discussed with the HR and the training is scheduled accordingly.

3) TALENT MANAGEMENT- It comprises of MANAGING THE EMPLOYEES OF THE ORGANISATION with respect to their RETENTION AND SATISFACTION. The team identifies the needs of the employees and the same is fulfilled accordingly. The full employee database is managed through the well known technique SAP.

4) ADMIN - This department of the HR department includes the rest activities of RELIANCE related to employees. It includes the management of the stationery, the submissions of the checks etc.

Activities in Talent Development: -

Training and Development Activities. Induction and Orientation to new employees.

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Performance Management System based on Balanced score card concept.

Confirmation Appraisal Cycle. New HR initiatives. Developing and designing new formats and

processes.

INTRODUCTION OF PERFORMANCE APPRAISAL

Performance Appraisal is the systematic evaluation of individual with respects to his/

her performance on the job and his potential for development. The performance being

measured against such factors as job knowledge, quality and quantity of output, initiative,

leadership abilities, supervision, dependability co-operation, judgment, versatility, health

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and the like. Assessment should not be confined to past performance alone. Potential of

the employee for future performance must also be assessed.

A Performance Appraisal “is a formal structured system of measuring and evaluating an employee’s job, related behavior and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization and society all benefits.”

IMPORTANCE AND PURPOSESPerformance appraisal is considered to be most significant and indispensable tool for an

organization for the information it provides is highly useful in making decision:

1. Regarding various personal aspects such as promotions, salary increase, transfers,

demotion and termination.

2. They are means of telling a subordinate hoe he is doing, suggesting needed

changes in his behavior, attitudes, skills or job knowledge.

3. The superior uses them as a base for coaching and counseling the individual

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PERFORMANCE PLANNING PROCESS

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APPRAISAL FORMAT In order to achieve these objectives the appraisal format should have the following

components: -

Key Result Area (KRAs): 1. KRAs are measures that are linked to business strategy and are cascaded from the

business KRAs. KRAs are divided into six (6) broad measurement dimensions which

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are Financial, Customer, Innovation/Internal Process, Projects, Employee Learning

and Development and Societal. Every employee need not have KRAs in each of these

measurement dimensions

2. Each KRA would have a specific target. The target quantifies or verifies the extent of

achievement in a given time frame

Individual Contribution Areas (ICAs): 1. The ICAs capture the key impact areas

of the employee’s efforts which are not captured through KRAs.

They have been divided into three broad categories:- Learning &

Growth, Special Projects and Other Job Responsibilities.

2. These are quantitative and/or qualitative measures which are defined through

conversation between employee and the manager.

3. At the end of the year, evaluation on the ICAs is captured through the multirater

feedback system.

Core Responsibilities(CRs):

1. Core responsibilities are significant ongoing task or outcomes based on day to day

work and are part of the job responsibilities.

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2. No pre determined targets are set for the core responsibilities in the performance

planning phase.

Roles and Responsibilities in the Performance Appraisal

Employee/Appraisee :-

Identification of KRAs, CRs and ICAs with their Manager’s at the beginning

of the Performance Cycle.

Contribute to the setting of targets against each of the KRAs with their

Manager.

Contribute to setting the weightages for the KRAs, CRs and ICAs have to be

finalized in co-ordination with the Manager.

Complete the Performance plan and submit to the manager for verification.

Complete the Quarterly and Half-Yearly Self review and collect feedback

and guidance from the manager on the performance.

Complete the Year end Self Appraisal and submit to the manager for year

end appraisal.

Manager/Appraiser :-

Identification of KRAs and ICAs with the employees at the beginning of the

performance cycle

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Contribute to the setting of targets and expected levels of performance with

the employees. Contribute to setting the weightages for the KRAs and ICAs

have to be finalized in co-ordination with the employee

Verify and finalize the performance plan for the employee for the year

Provide half yearly performance guidance and feedback, based on the self

appraisal and actual versus target performance of the employee

Review the year end self review of the employee and provide the final ratings

for the KRAs and ICAs

Submit the final ratings to the reviewer for finalization of the rating

Identify potential extraordinary performers

Reviewer :-

Validate the performance plan for the employee and sign off on the document.

Review and finalize any deviation from the suggested weightages for KRAs,

CRs and ICAs in the employee manual

Validate the final score submitted by the manager

Ratify the manager’s identification of extra-ordinary performers

HR :-

It functions as a facilitator in the process would ensure adherence to guidelines, support,

dispute resolution and modify design aspects to align with organization requirements

APPRAISAL SYSTEM

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AT

RELIANCE COMMUNICATIONS

PERFORMANCE MANAGEMENT SYSTEM!!!

A system for managing organizational Performance.

A system for Managing Employee Performance.

A system for Integrating the Management of Organizational and Employee

Performance.

A system for Integrating Rewards to performance and plan development

RELIANCE PERFORMANCE MANAGEMENT SYSTEM

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PurposeTo institutionalize an integrated system to support the organization growth and create a

performance driven culture, encompassing performance planning, monitoring, support

and evaluation with a focus on employee learning and development.

The Performance Management System acts as major integrating factor with the other HR

systems of the organization as follows:

Development Strategies

-Training

-Coaching

-Mentoring

-Job Rotation/ Enrichment/ enlargement

Recognition & Reward PMS Management Resources

-Individual Recognition Planning

- Inputs to earnings - Inputs to Succession Plans

- Company Resourcing Plan

Career & Selection planning

-Mapping towards competencies required

PMS Framework

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Process at a Glance

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Phase 1:- Performance Planning & Target Setting

March- Performance measures and targets set jointly by employee and

manager

These are cascaded from the organizational goals to ensure alignment

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Phase 2:- Interim Review of performance

July and January- Quarterly reviews. Interactive feedback session

only

October- Mid year review. Provision for revision of the performance

plan if required, due to business exigencies( Course correction mechanism)

Phase 3:- Year End Performance Evaluation

April- Assessment of achievement levels against targets by manager

followed by the process of normalization

Final rating communicated to the employee. In case of any disagreements,

case submitted to the Reviewer

PHASE-1PERFORMANCE PLANNING

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What is the Balanced Scorecard????

A new approach to strategic management was developed in the early 1990's by Drs. Robert Kaplan (Harvard Business School) and David Norton. They named this system the 'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective.

The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as follows:

"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, technology and innovations.”

The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:

The Learning and Growth Perspective

The Business Process Perspective

The Customer Perspective

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The Financial Perspective

Balanced Scorecard Flowchart

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OVERALL PROCESS OF BALANCED SCORECARD:-

The process consists of seven steps over three phases:

Phase 1:- The Strategic Foundation

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Step 1: Communicate and align the organization around a clear and concise strategy. This is the fundamental starting point behind everything else. Your strategy is what “feeds” the Balanced Scorecard.

Step 2: Determine the major strategic areas or scope for getting the organization focused on those things the organization can actually do.

Step 3: Build a strategic grid for each major strategic areas of the business.

Phase 2:- Three Critical Components

Step 4: For each strategic objective on each strategic grid, there needs to be at least one measurement. Measurement provides the feedback on whether or not we are meeting our strategic objectives.

Step 5: Set targets for each measurement: For each measurement in your Scorecard, establish a corresponding target.

Step 6: Launch programs: Things will not happen unless the organization undertakes formal programs, initiates or projects.

Phase 3: - Deployment Step 7: Once the balanced Scorecard has been built, you need to push the entire process into other pats of the organization until you construct a single coherent management system.

CASCADE GOALS Cascade refers to the process of aligning organizational

goals to individual goals in a series of steps.

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Cascading of goals ensures that all efforts within the

organization are focused towards a common organization

wide goal.

Cascade of goals from organization to business & functional level

Cascade of goals to Individuals Scorecards:The process of drawing out individuals KRAs happens in the following manner:-

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Alignment of Goals and Targets:-

Vertically – Do the goals of the individual align with the goals of

the department division and organization?

Horizontally – Do the targets for the sum of the individuals add

together to achieve the target of the department?

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Developing Action Plan

Once the goals have been determined and agreed upon by the manager, initiatives to support the goal can be identified.

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PHASE-2INTERIM REVIEW

Benefits of Interim Review:- Allows provision of performance plan, if required

- Highlights areas of inputs, guidance, support required by appraisee

- Allows appraiser to give feedback & create coaching plan, if required

- Allows documenting feedback for final year and discussion & evaluation

Interim Review Process:

Quarterly Reviews- July & January

- Interactive feedback session between manager and employees

- Does not result in a performance score

- Feedback is documented during each review session and

discussed at the year end evaluation

Mid Year Review- October

- Provision for mid courses revision to Performance

plan in case of extraneous circumstances

- Any modification to be ratified by manager and

signed off by reviewer

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INTERIM REVIEW PROCESS

PHASE-3

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YEAR END PERFORMANCE

EVALUATION

Benefits of Year end Performance Evaluation

1. Reinforce Performance Excellence within the organization

2. Reward and recognize high performance

3. Reinforce organization’s priorities and goals

Year end Performance Evaluation Process

1. Take place in April of each Year

2. Assessment of achievements of KRAs, CRs and ICAs

by self & manager

3. Interim review feedback is also discussed

4. Roles with multiple reporting

- Multi-rater feedback obtained

- Final ratings by administrative manager

YEAR END PERFORMANCE APPRAISAL PROCESS

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Year end Performance Evaluation Process Continued

1. Final score is calculated from individual ratings on KRAs, CRs

and ICAs

2. Final score is normalized

3. Final rating is arrived at

- Final rating is different from Final score

PERFORMANCE RATINGS SYSTEM

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NORMALIZATION Benefits of Normalization1. Ensures equity in ratings between departments and SBUs

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2. Ensures same standards of performance evaluation across

organization

3. Ensures fairness and recognizes individual, team, business

performance to organizational goals

What is Normalization???1. Alignment of individual performance to relevant business unit

performance

2. Alignment of business unit performance to circle or business

performance

3. Results in a final performance rating

Normalization Process:1. Normalization results are computed on the SAP system

2. Review is held by Normalization committee

3. Review takes place at both DAKC & Circle levels

NORMALIZATION PROCESS

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Study of appraisal system

For the study of performance management system in Reliance a questionnaire was prepared.The questionnaire consisted of 12 questions with the combination of both close ended and open ended questions. The questionnaire was designed to know the effectiveness of PMS. It helped us to know the views of the employees regarding PMS in Reliance.

INTERPRETATION

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1) Rating of understanding of PMS:

Only 17% were aware that it is to basically check the deviation of actuals from the standard. Mostly the employees were of the opinion that it is for the career growth as well promotions and incentives. As every appraisal is followed by some kind incentive thus maximum employees relate it to only incentives and thus growth.

2) Rating of formal discussion of performance with line manager

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How often does your team leader or line manager formally discuss your performance with you?

15%

48%

32%

5%

Quarterly

Half yearly

Only at time of appraisal

Never

The graph clearly indicates that 48% employees were of the opinion that their team leaders discuss their performance at least half yearly. This shows a positive sign on the relationship of the two. Discussing the performance would help the employee or trainee improve on his /her weak areas and thus increase their working efficiencies.

3) Rating of understanding of KRAs

When asked from the employees about the understanding of the KRAs on which the entire performance appraisal of the organization is judged,64% of the employees were aware of it.This clearly indicates that the organization puts an extra effort on the

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performance appraisal of each and every employee. The KRAs are well defined to the employees and also the guidelines are already explained to the appraise as well as appraiser by the HR.

4) Rating of KRAs being realistic

RECOMMENDATIONS

One basic reason to ask this question was put up under study wasto analyse and see whether the employees are satisfied with the work assigned to them. It is very important to enjoy your work,and to also know from the employees that the KRAs set for them,are infact realistic according to them or not. This pie chart depicts the degree of the truth of this statement.27% employees felt that they do the work and are able to achieve the targets on time,i.e they believed that the KRAs set for them are realistic and achievable.36% also agreed to the same statement but with a less magnitude, while 23% felt that there is still a room for improvement and that the KRAs can be more realistic and

rest were not at all satisfied with the kind of work given to them as they said that they belong to some other field and are given the work of some other field.

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5) Rating of KRAs being quantified

This shows that 27% of the respondents strongly agreed to the

statement. They thought that their key responsibili ty areas are properly

and timely quantified. Another 36% people thought the same.23%

workforce under study thought that there might be some amendment in

the quantification of the KRAs.The 14% were the same who did not find

their KRAs realistic. More or less I received a posit ive response, even

though the organization must find ways to convert the opinion of rest

employees.

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6 (a) Rating of Training opportunity as benefit of PMS

On asking from the employees which of the following you think is the best benefit of the PMS,only 14% found training as the benefit of PMS and 23% also somewhat greed to it,but the major number of employees did not find training as the benefit of PMS.This clearly reflects that there are comparatively less training opportunities for the employees.

6(b) Rating of promotion as benefit of PMS

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On asking for promotion as the benefit of PMS 38% strongly agreed to it and 27% also agreed to it but with a different opinion. Thus, major number of employees believes that if they perform well then there are better chances of promotion as well as growth for them .

6(c) Rating of incentives as benefit of PMS

Similarly on asking for incentives as the benefit of PMS major number of employees agreed to it and believed that PMS is directly linked to their performance and the better they perform better is the incentive made for them. Thus they knew it that it is very important to perform their job well and complete their KRAs in time as well efficiently and effectively.

Thus for the above question we can very well conclude that employees are more concerned about their incentives and are very well aware of the fact that it is only their best performance that will fetch them growth in terms of both monetary as well career.

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7(a) Rating of influence of PMS on Productivity

7(b) Rating of influence of PMS on improved efficiency and effectiveness

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7(C) Rating of influence of PMS on career development

7(d) Rating of influence of PMS on succession planning

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On asking from the employees about the influence of PMS on certain factors, mostly the employees were of the opinion that PMS influences their efficiency as well as effectiveness the most. They believed that through appraisal they come to know their strong area as well as their weak area after appraisal they have the clear picture of where they are performing well and also where they need to improve and devote more efforts to make their performance up to the mark. This section got the highest percentage with 23%strongly agree and 38% agree. Similarly second highest score was of career development with 12% strongly agree and 32% agree. Thus we can conclude that employees are well aware that it is the PMS only that provides ample opportunity to them to give their best performance and prepare a room for rewards.

8) Rating of satisfaction on performance linked incentives

The pie chart clearly depicts that maximum no. of employees are satisfied with the performance linked incentive that they receive after their appraisal.62% employees were of the opinion that the PLI they receive is justified by their superiors.

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9) Rating of fairness of performance appraisal

“This is the most trickey of all the questions in the questionnaire”, was quoted as saying by one of the officials. Most of the respondents agreed to the fact that the current PMS is free from any kind of bias. This statement finds support from the fact that 58% of the employees agreed to the fact that the PMS is a very stringent process and takes into account the actual performance of the employee and identifies KRA and manages the performance planning in an unbiased manner. But there are 13% of the people who believe that the current system of managing performance has loopholes and is biased towards certain employees.

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suggestions

1 .A system of psychological appraisal can be introduced where psychologists are used to specifically assess an individual's future potential. The appraisal normally consists of in depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes and evaluation of the employee's intellectual, emotional, motivational and other work related characteristics that suggest individual potential, This will make the potential appraisal more specific and a reliable date source for making employee's promotion decisions and future development.

2. The counseling sessions are conducted and the reporting officer obtains the signature of the ratee after the session but a post appraisal interview report, handwritten may be introduced. The report may consist of-

(a) Main points conveyed by the superior.

(b) Reactions of the employees appraised.

(c) Summary of the agreed programme.

(d) Finally the date of post appraisal interview and signatures of both the employee and the reporting officer

3. Team appraisal. Along with the individual appraisal there can be team appraisal also. In this focus should be on the achievement of the team as a whole. The team should be appraised on the basis of the contribution to the organization goal. The ratings should be given team wise and then it should be compared with other teams. The team which gets the highest rating can be declared as ‘The Best Team of the Year’.This will not only improve the team efficiency but also will motivate other teams to improve and achieve. The team which turns out to be the best should not only be given monetary benefits but also an award for the entire team. With the consent of the team members an exclusive award can also be given to the team member whom they think is the key contributor to their achievement.

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4. It has been seen that individuals who are rated as “outstanding” receive a substantially high amount of increment and a promotion is awarded in recognition to their excellent performance. In addition to this, a system of awarding certificates and memento/ shields to outstanding employees on a particular day fixed for this purpose may also be introduced.

Such a system would increase a sense of recognition and achievement in the outstanding raters and would also help in motivating other employees. The day may be designated as “Outstanding Achievers” day the awards may be given away to all the outstanding raters by the president in the presence of the other employees gathered for this purpose. In this not only the performer of the winning team should be included but also those employees who have been very good performers throughout year irrespective of their team’s

performance. 5. EFFECTIVE COUNSELING“Counseling is a means and not an end in itself”, this should be well included in one’s mind. Development does not occur just because there is counseling could be used as an effective instrument in helping people integrates with their organization and have a sense of involvement and satisfaction.

There should exist a dialogic relationship in goal setting and performance review. With such a collaborative effort, counseling effort, counseling can result in more objective results.

More emphasis should be pondered on;

• General climate of openness and mutuality.

• Empathic attitude of management.

• Sense of uninhibited participation by the subordinates in

the performance review process.

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• Focus on work oriented behavior and work related problems.

6. PERIODIC THERAPY SESSIONPeriodic psychotherapy sessions can be conducted for assessing the employees' emotional, intellectual motivational and other work related problems if any. This will help removing their problems and work more efficiently psychotherapy can be given through interviews, questionnaires, case study method, etc. The work in itself never ceases at mere assessing task but a proper planned action and feedback programme are rather most important of all. This psychotherapy session will also help in including a feeling of consideration of the company towards its employees.

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Conclusion

Upon analyzing each dimensions of the questions under study, following are the conclusions drawn:

Questions 1-2 reflect about the understanding of PMS among employees which shows that most of them relate it with their career growth. Similarly for the 2nd question it is concluded that mostly the performance is discussed formally with line managers only half yearly.

Questions 3-5 are basically on KRAs which is the major cause of appraisals. It reflects the positive responses of employees as they are well aware of their KRAs and also find them not only realistic and achievable but quantified too. Thus we can conclude that the KRAs set are realistic and achievable.

It is also observed that the employees relate PMS basically with the incentives and then promotions as well as trainings. Thus it is important that after the appraisal low performers should also be asked for the kind of training they require and then provide them with it, as training plays an essential role in improving performance.

Mostly employees also understand that appraisal basically results in improved efficiency as they are then aware of their strong and weak areas which also results in their career development.

It is found that the satisfaction level of employees regarding their incentives as well as the fairness in PMS of their organization is really high and thus, very positive for the organization as their employees are well content with it.

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SWOT ANALYISSWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity

This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple, popular technique which can be used in preparing or amending plans, in problem solving and decision making.

Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis, has been the Subject of much research.

SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions.

The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings - use them as you find most helpful, and make up your own to suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc.

Here are some examples of what a SWOT analysis can be used to assess:

a company (its position in the market, commercial viability, etc) a method of sales distribution

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a product or brand

a business idea

a strategic option, such as entering a new market or launching a new product

a opportunity to make an acquisition

a potential partnership

changing a supplier

outsourcing a service, activity or resource

an investment opportunity

Strength

Low Entry Cost Commission Structure Fast Activation Process Network

Weakness

Branding Image Distribution problem Limited product portfolio- Only Mobile Lack of Competitive Strength

Opportunity

Preference of GSM over CDMA New Specialist Application Rural Telephony New Market, Vertical, Horizontal

Threat

Political destabilization. New Entrants IT Development Market Demand

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annexures

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QUESTIONNAIRE FOR PERFORMANCE MANAGEMENT SYSTEM

OBJECTIVE: The rationale to outline the questionnaire is for both the academic as well as management purpose and the information revealed by you will be strictly kept confidential, so please try to be as honest and objective as possible.

(A) Age :

Department:

Gender :

(B) QUALIFICATIONS:

……………………………………………………..

(C) EXPERIENCE :

Experience in reliance (years/ month) ……………………

(D) DO YOU THINK?

(i) What is the general understanding of PMS?(a) Is it for promotion and incentive ( )(b) Is it for career growth ( )(c) Is it a formality every year ( )(d) Is to check the deviations of actual from standards set ( )

(ii) How often does your team leader or line manager formally discuss your performance with you?

(a) Quarterly ( )(b) Half yearly ( )(c) Only at the time of appraisal ( )(d) Never ( )

(iii) Do you possess a very clear understanding of the KRAs ?(a) Strongly Agree ( ) (b) Agree ( )(c) Disagree ( )(d) Strongly disagree ( )

(iv) The KRAs/targets set for you are realistic?

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(a) Strongly Agree ( )(b) Agree ( )(c) Disagree ( )(d) Strongly Disagree ( )

(v) Are the KRAs set quantified for each level of employees?(a) Strongly Agree ( )

(b) Agree ( ) (c ) Disagree ( ) (d) Strongly disagree ( )

(vi ) What benefits could be derived from PMS? NAME Strongly Strongly Agree Agree Disagree Disagree

(a) Training opportunity ( ) ( ) ( ) ( )(b) Promotion ( ) ( ) ( ) ( )(c ) Incentives ( ) ( ) ( ) ( )(d) Others (please specify) ( ) ( ) ( ) ( )

(vii) Can PMS influence any of the following at individual or departmental level?

NAME SA Agree Disagree SD

(a) Productivity ( ) ( ) ( ) ( )(b) Improved efficiency ( ) ( ) ( ) ( )

and effectiveness

(c) Career development ( ) ( ) ( ) ( )

(d) Succession planning ( ) ( ) ( ) ( )

(viii) Is the current PMS connected with variable parts of compensation, or are you satisfied with the performance linked incentive in your organization?

(c) Strongly Agree ( )(d) Agree ( )(e) Disagree ( )(f) Strongly disagree ( )

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(ix) Do you think the performance appraisal is a fair reflection of your performance?

(a) Strongly Agree ( )

(b) Agree ( )

(c) Disagree ( )

(d) Strongly disagree ( )

(x) What improvements/ suggestions can be there for the present appraisal system?

……………………………………………….

……………………………………………….

……………………………………………….

(xi) Do the PMS possess any loopholes?

……………………………………………….

……………………………………………….

……………………………………………….

(xii) Please suggest any other model to increase efficiency and effectiveness?

………………………………………………

BIBLIOGRAPHY 7

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BOOKS:

G.S. Sudha, ‘Human Resource Management’(RBD) Udai Pareek and TV Rao, ‘Human resource planning’

NEWSPAPER: Business Standard

MAGAZINE: India Today

WEB SOURCES:

www.relianceada.com www.businessballs.com www.relianceinfo.com www.google.com

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