PMS at BHEL
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Transcript of PMS at BHEL
Performance Management
.
Project:
PM atBharat Heavy Electricals
LimitedPresented by:Section: ABC Group No. 8Ameesh Sharma 08FN011Anoop Kumar 08HR012Shurti Mishra 08IT065Jyoti Ranjan Sinha 08HR025Prasant Kumar Biswal 08HR039
Bharat Heavy Electricals Limited
BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/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, Transportation, Telecommunication, Renewable Energy, etc.
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.
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.
Rationale Behind Selecting 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 Appraiser Reviewer
Every Executive whose performance is assessed in MAP
Every Executive who Assesses the performance of one or more Appraisees that report to him/her
The Appraiser’s Appraiser, who is responsible for reviewing the entire performance process
•It’s about his Performance•He is the key driver of the process
•It’s about his Performance•He is the key driver of the process
•Will help appraisee manage his performance & provide continuous feedback and coaching
•Will help appraisee manage his performance & provide continuous feedback and coaching
•Will ensure Objectivity, Transparency & Consistency
•Will ensure Objectivity, Transparency & Consistency
Anchoring targets to the rating scaleDeveloping action planAssigning weights to KRAs
Mid year reviewDevelopment plan
Final reviewCalculation of final scoreNormalization
Performance Management Cycle at BHEL
ONGOING FEEDBACK
AppraiserAppraiser
AppraiseeAppraisee
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 5-point Rating Scale.
• The required level of achievement for each of the other four ratings should also be defined.
KRA Target
Anchoring Targets to the Rating Scale
The required level of achievement for each point on the Five Point Rating Scale must be defined
Order Booking Rs. 22 Crore
20 Crore 25 Crore15 Crore 18 Crore 22 Crore
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.
2. Standard unit of measurement fixed for each KRA for uniformity in measurement.
3. 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.
4. Weightages for Operational and Capability Building KRAs have been suggested against all KRAs for all levels of executives
5. To encourage executives to take up Capability Building activities, a minimum KRA (C) weightage has been prescribed based on roles.
6. KRA Masters loaded in the e-enabled system.
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 KRA’s
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.
For KRA-C :
High : 25 max.
Medium : 18 max.
Low : 12 max.
For KRA-O :
High : 20 max.
Medium : 15 max.
Low : 10 max.
Minimum Weightage to be assigned to any KRA - 5
Suggested Weightage for Operational and Capability
Building KRAs
2Moderately
BelowExpectation
3Meets
Expectations
4Moderately
AboveExpectations
1Significantly
Below Expectations
5Significantly
AboveExpectations
• 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.
RATING SCALES
Mid Year Review• Time: September – October
• Objectives: • Reviewing & Tracking achievements• Ensuring course correction• Creating Development Plans• Time for Feedback and Coaching
Appraisee will complete Self-
Review on Performance
Targets & create
Development Plan
Appraisee will submit
Self-Review 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 Appraisee’s Performance Plan. Prior to a change
approval from the HOD would be required
Process:
Creating Development Plan
Competency Development Plan
Team Work
Attend a training programme on team buildingWork on two cross-functional teamsMr. Dinesh Mathur to play the role of mentor and provide on-going support and inputsAppraisee and appraiser to have monthly discussion on progress
Job Knowledge
Attend technical seminars held in-house (minimum of 4 in the year)Read technical journals to keep abreast with the latest developments in the filedTake complete responsibility for 2-3 bids
Computer Literacy
Attend a beginners training course at NIIT / APTECUse computer for all correspondence
Final Review
Time: April
Assessment of Appraisee’s Level of Achievement on all KRAs
Calculation of Overall Score
KRA Weightage (%) Rating on 5 pt. scale Indl. KRA Score
KRA 1 25 4.5 1.12
KRA 2 25 4 1
KRA 3 25 4.6 1.15
KRA 4 10 4.7 0.47
KRA 5 15 3.5 0.52
OVERALL SCORE 4.26
The KRA’s 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
ONGOING FEEDBACK
AppraiserAppraiser
AppraiseeAppraisee
–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
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• Apraisee’s responsibilities:
– Commitment to goal achievement
– Ongoing performance feedback and coaching
– Communication with supervisor
– Collecting and sharing performance data
– Preparing for performance reviews
• Supervisor’s 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).
THANK YOU