DESIGNING & IMPLEMENTING PMS- THE

BHEL EXPERIENCE

Parth Sarathi

ABOUT BHEL

BHEL is the largest engineering company of India, having over 53,000 employees in 14 manufacturing and a dozen service divisions catering to the needs of power, defense and transportation sectors. It is one such leading organization generating profits continuously since 28 years

+VE’S & -VE’S WITH THE PREVIOUS SYSTEM

Positive aspects:

Very simple takes less time to fill up

Non threaten to both appraiser and appraise

Able to maintain high degree of confidentiality

About appraisal rating

Provides opportunity to appraise to indicate his achievements and help required in training

DISSATISFACTION

A performance appraisal system only

A passive system having no involvement of subordinates

No feedback either on performance or on training needs help solicited

Absence of performance standards

No feedback, counseling, coaching efforts

No linkage between performance and rewards

THE NEED FOR NEW SYSTEM: The initial effort for stimulating the need can

be tracked back to the year 86-87 when they wanted to widen the HRD activities which were largely confined to training and OD

A two day workshop was conducted on “Performance feedback a tool for HRD” with an intention to motivate the appraiser and appraise and adopt the new system of PM

DEVELOPING PMS Constitutional of cross functional teams: The cross

functional team from different departments were involved in the designing of the system. The new system include:

Shift of focus from Performance Appraisal to comprehensive performance management

Introduction of individual level goal setting

Increased objectivity in appraisal

Emphasis on development not on control

Introduction to Potential appraisal

Presentation to personnel heads

Examination of issues raised and testing of assumptions

Presentations in management committee meeting

Simplification of system & formats

SELLING THE SYSTEM TO THE POTENTIALS:

Presentations of the drafts at units/ divisions

Amendment of the system and simplification

Presentation to full time directors

Presentation to management committee

HIGHLIGHTS OF THE NEW PMS Following seven components have been

found to be essential in any system

Performance planning

Performance appraisal

Performance enabling Rewards

Performance feedback

Performance improvement

Potential appraisal

IMPLEMENTATION EFFORTS

I. Corporate level steering committee

II. Developing facilitators

III. Training of users

IV. Pilot run of system

V. Implementing directives, distribution of the manual of PM

VI. Training in giving & receiving feedback

VII. Constitution of the performance planning and review committee

BEHAVIORAL IMPLICATIONS

The behavioral issues that were experienced while implementing:

Fear of getting exposed Fear of getting questioned by the sub ordinates Pressure for making the more comprehensive action

plan Fear of transparency, even disclosing the points

awarded Rigidity- old dog syndrome Resistance to change Poor motivation for excellence

Apart for these a few positive traits were also observed which include:

Internal locus of control

Encouraging creativity and risk taking

Use of the appropriate power basis for influencing users

Consensus building

Tremendous confidence in internal resource persons

Collaborative approach in conflict resolution and power strategy

PROBLEMS BEING FACED IN IMPLEMENTATION:

Uncertainty of orders creates problem in planning

Monitoring efforts not up to the mark because of the scattered population

Time pressure

Initial fear and apprehension in giving and receiving feedback

BENEFITS PERCEIVED BY USERS

Message that everybody would have to work has gone deeper and deeper

Availability of an objective based rewards

Efforts to understand and enhance competencies

Creation of openness and trust

Opportunity for development

Identification of appropriate training programs

Providing objective data for career and succession planning