Report Hrm Final 2

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PERFORMANCE APPRAISAL

GROUP 3 SECTION A

AKRITI KAPOOR

ANKUR AGARWAL

MALAY AGARWAL

SHIVI SHARMA

VAISHALI MADAAN

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Table of Contents

Executive Summary..3

Introduction to Performance appraisal: ............................................................................................. ..4

Objective of our study............................................................................................................................6

About NDPL and its HR Policies.............................................................................................................7

Methodology................................................................................................................................. 9

Performance Appraisal system at NDPL........................................................................................10

Issues being faced.........................................................................................................................15

Recommendation.......................................................................................................................... 16

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Executive Summary

A performance appraisal, employee appraisal, performance review, or (career) development

discussion is a method by which the job performance of an employee is evaluated (generally in

terms ofquality, quantity, cost, and time) typically by the corresponding manager or supervisor. A

performance appraisal is a part of guiding and managing career development. It is the process of

obtaining, analyzing, and recording information about the relative worth of an employee to the

organization. Performance appraisal is an analysis of an employee's recent successes and failures,

personal strengths and weaknesses, and suitability for promotion or further training. It is also the

judgment of an employee's performance in a job based on considerations other than productivity

alone.

As a part of this project, we visited the office of the North Delhi Power Limited (NDPL). We

conducted a close review of the performance appraisal system at a place in the company,

Interviewing employees and taking their feedbacks on the system. We observed that a lot of

employees had their reservations about the existing system and wanted change in the way there

performance was being evaluated. Based on the feedbacks provided by the employees and review of

the system in place, the team recommended certain corrective measures which would help in better

evaluation of the employees. This document contains a detailed analysis of the same.

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INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal can be viewed as the process of assessing and recording staff performance

for the purpose of making judgments about staff that lead to decisions.

It is the process of obtaining, analyzing and recording information about the relative worth of an

employee. The focus of the performance appraisal is measuring and improving the actual

performance of the employee and also the future potential of the employee. Its aim is to measure

what an employee does.

According to Flippo, a prominent personality in the field of Human resources, "performance

appraisal is the systematic, periodic and an impartial rating of an employees excellence in the

matters pertaining to his present job and his potential for a better job." Performance appraisal is a

systematic way of reviewing and assessing the performance of an employee during a given period of

time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to

analyze his achievements and evaluate his contribution towards the achievements of the overall

organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel

management and reflects the management's interest in the progress of the employees.

Objectives of Performance appraisal:

To review the performance of the employees over a given period of time

To judge the gap between the actual and the desired performance To help the management in exercising organizational control Helps to strengthen the relationship and communication between superior subordinates

and management employees

To diagnose the strengths and weaknesses of the individuals so as to identify the trainingand development needs of the future

To provide feedback to the employees regarding their past performance Provide information to assist in the other personal decisions in the organization

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Provide clarity of the expectations and responsibilities of the functions to be performed bythe employees

To judge the effectiveness of the other human resource functions of the organization suchas recruitment, selection, training and development

To reduce the grievances of the employees

Team Performance Appraisal

Organizations that only measure and recognize individual performance have found that team

development and performance are jeopardized because they appear to be ignored. By balancing the

measurement of individual and team performance, organizations have been able to address

individual development as well as focus on achieving team goals.

In addition to balancing employee and team measures, effective team performance management

processes are aligned with organizational goals. In particular, by aligning and linking employee

performance plans with the goals established in the agencys performance plan, an organization is

more likely to achieve its goals because its employees efforts are channelled in that direction.

As a result, performance management becomes a useful tool for clarifying individual, team, and

organizational goals and for pointing everyone in the right direction. Such efforts support and

produce goal achievement.

Managers, supervisors, team leaders, and team members can use the performance appraisal process

to:

plan team and individual performance; set team and individual goals that are aligned with organizational goals; measure actual team and individual performance against desired performance; provide feedback on performance

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OBJECTIVE OF OUR STUDY

Given the importance of understanding how performance appraisal is done in organisations, our

objective for this assignment is to understand the process of performance appraisal in an

organisation. We have studied the operation of this process in NDPL (North Delhi Power

Limited).This would deepen our understanding of Performance Appraisal and how the process

actually takes place in real aspects.

Also, we have identified that employees are dissatisfied with the current system of team evaluation,

so in our project, we will be focussing on that issue and we will try to suggest how to resolve it.

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ABOUT THE COMPANY-NDPL AND ITS HR POLICIES

North Delhi Power Limited (NDPL) is a joint venture between Tata Power Company and the

Government of NCT of Delhi with the majority stake being held by Tata Power. It distributes

electricity in North & North West parts of Delhi and serves a populace of 50 lakh. The company

started operations on July 1, 2002 post the unbundling of erstwhile Delhi Vidyut Board. With a

registered consumer base of around 12 lakh and a peak load of around 1350 MW, the companys

operations span across an area of 510 sq kms.

NDPL won the Asia's Best Employer Brand Award and the Asian Power Most Inspirational CEO of

the Year 2008 award among many others.

HR POLICIES OF NDPL

NDPL believes in achieving organizational excellence through meaningful development of its human

resource and credits its success to the strong performance focus & organizational loyalty of its

employees. In order to achieve companys vision of making NDPL the company of choice for all

stakeholders, the HR Vision To create a learning organisation which nurtures talent, innovation

and provides competitive environment that makes NDPL the favoured company to work for focuses

on learning and development of all employees.

To induct talent and groom them into a dedicated cadre of Power Professionals Engineer Trainee

and Management Trainee Scheme has been introduced right from the time of inception. New

trainees like Junior Officer Trainee inducted into the organization undergo one-year training (both

theoretical and on-the-job training). NDPL offers Mentoring System to young entrants in order to

seamlessly integrate them into the cultural fabric of the organization.

In order to realise the HR Vision of making NDPL a learning organization (by providing opportunities

for employees to continually learn new capabilities), a systematic Training Policy guideline has been

formulated for different cadres of employees. The training takes place at Centre for Power Efficiency

in Distribution (CENPEID)- the state of the art training centre of NDPL.

NDPL has a structured People Potential Development System (PPDS), which helps create a high

performance & development oriented work culture. Primary objective of PPDS is to develop the

employees to enable them to improve their performance for the current job as well as prepare them

for the higher responsibilities.

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NDPL has a well designed Reward & Recognition Scheme which is an effort to recognize significant

contributions by its employees including Outsourced and Business Associates. NDPL avails ample

opportunities to recognize such contribution in more than one ways.

Communication is the lifeline of NDPL, which has its employees placed at over 100 locations across

the geographies of North & North West Delhi. NDPL follows a detailed communication system called

SAMIKSHA channelizing communication from the top management to employees, and SARATHI

which is a help line used by employees to register work related issues to the top management.

NDPL has kept up with the times, advancing technically and adhering to the current industry and

management trends. In a short span, it has introduced initiatives like Tata Business Excellence Model

and Balance Score Card. Employee Engagement Surveys and Employee Satisfaction Surveys are

conducted annually to measure the level of satisfaction and engagement of employees, thereby

taking adequate measures for improvement, thus making NDPL a choice for all stakeholders.

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METHODOLOGY

The methodology we used for our project was primary and secondary research.

Primary-Our entire team visited the NDPL office at North Delhi and spoke to the senior level, middle

level as well as junior level employees there in order to find out how the performance appraisal is

done.

We also had a detailed discussion with various employees who were really dissatisfied with the

entire performance appraisal process to understand the basic loophole and the flaw in the system.

Secondary-Few details about the company was gathered through secondary sources

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FINDINGS ABOUT PERFORMANCE APPRAISAL SYSTEM USED BY NDPL

Through our conversations with the employees there, we found out that NDPL follows a system of

measuring both individual and team performance of its employees.

NDPL has a system in place for measuring employee performance known as People Potential

Development System (PPDS). PPDS is the primary tool in NDPL for inculcating a high performance

and development oriented work culture.

People Potential Development System (PPDS) ensures Development and Growth of workforce with a

view To create a learning organization, which nurtures talent, innovation and provides competi tive

environment that makes NDPL the favoured company to work for.

NDPL has been continuously improving the Performance Appraisal System and has shifted the focus

from evaluation to Employee Development.

PPDS is designed to foster the climate of year-round partnership between the appraisee & appraiser

in planning, coaching & reviewing of job performance. It is applicable to all regular employees. It is a

tool to drive excellence and innovation in line with TATA Business Excellence Model.

This system tracks employees team performance against the set Key Result Areas (KRAs) that are

derived from the Corporate and Functional Balance Score Cards. The objective of PPDS is to develop

the employees to enable them to improve their performance for the current job as well as prepare

them for the higher responsibilities.

All regular employees who have worked for a minimum of 90 days with the appraiser during the

appraisal cycle become eligible for the performance appraisal. Appraisal year starts from 1st April

and ends at 31st March of next year. Under this system, the appraiser will decide and communicate

goals/KRAs for the subordinate at the beginning of the year. Mid Year reviews are conducted by the

appraiser to review progress, change, add or modify KRAs, provide feedback and guidance to the

appraisee. The results derived from the appraisal are considered while making the decisions

regarding training & development, increment, promotion and transfer wherever applicable as per

service rules.

Talent Management Group is responsible for the timely furnishing of documents and the completion

of the cycle.

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Important PPDS Activity Dates

ACTIVITY MONTH

KRA / Goal Setting April / May

Mid Year Review October

Annual Appraisal April

Feedback Sharing June

Personal Development Plan August

Since the employees are made aware of the KRAs that they will be appraised on in the following

year, they have greater acceptability to this system as they know on what basis they will be

recommended for training, increment, promotion and transfer. Also, since there is a provision for

mid-year reviews, if there are any changes that lead to alterations in the KRAs or problems in

meeting the KRAs originally decided upon, then the employees have an outlet to discuss the same

with their supervisors and modify them accordingly, so that there are no adverse affects on their

evaluations due to these issues.

This increases the confidence of the employees in the evaluation system and they think of it as

something which is done or their improvement, rather than for criticising them.

NDPL also has in place, a robust system of Rewards for employees displaying exceptional

performance or significant contributions to the company.

Reward and Recognition

NDPL has a well designed Reward & Recognition Scheme which is an effort to recognize significant

contributions by its employees including Outsourced and Business Associates. NDPL avails ample

opportunities to recognize such contribution in more than one ways.

To deliver value to the consumer, continuous improvement is required in all processes of the

organization. Employees across NDPL contribute towards achieving this objective and hence the

overall growth of the organization. Rewards are given for outstanding performances that add to the

company's glory and are attached to a specific accomplishment.

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Rewards in NDPL are designed to reflect the unique nature of the organization's work culture.

Type of Rewards

A set of Reward and Recognition program have been developed to recognize achievements and

accomplishments that contribute to the overall objective of the organization. Here few Reward

types are:

Quarterly Awards

Shining Star of the Quarter

Shabash Reward of the Quarter

Annual Awards

Champion Officer of the Year

Champion Manager of the Year

Champion Workman of the year

Sportsperson of the Year

Internal Faculty Awards (For in-house trainers)

Samridhi Merit Award of the Year (Especially for Lady Workmen cadre)

Safety Award

Business Excellence Awards

Consumer Confidante Award ( Biannual Award for Consumer dealing positions)

Instant Rewards ( Given instantly after the act is recognized for the events based on value based

behaviour, valour, safety, cost saving, revenue generation, climate change, quality improvement

etc.)

Type of Recognition

Letter of Appreciation

Best Engineering Trainee / Management Trainee/ Junior officer trainee

The reward system also encourages the employees to work harder and think about the betterment

of the organisation as these rewards act as a source of motivation for the employees.

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Team Appraisal

Through our conversations with the employees we found out that that team appraisal is a much

tougher process as compared to individual appraisal. The team appraisal job gets even tougher when

the teams are cross-functional and not homogeneous.

If employees are working solely as individual contributors, each reporting to the same supervisor

and each basically doing what all the others are doing, the appraisal process becomes much easier.

But in a team, the team members need a clear understanding of their responsibilities as individual

contributors along with the team member burdens they are responsible for.

We found out that the team appraisal system in NDPL varied according to the seniority level of the

employee.

For the staff at Junior Level, when being appraised for work performed in a team, 80% weightage is

given to the individual performance and 20% weightage to team performance.

For the staff at Middle Level, when being appraised for work performed in a team, 50% weightage is

given to the individual performance and 50% weightage to team performance.

For the staff at Senior Level, when being appraised for work performed in a team, 20% weightage is

given to the individual performance and 80% weightage to team performance.

Thus, the emphasis on team performance increases with the level of seniority.

The team size in this organization is generally kept small, at about 4-5 people in a team.

Each team has a Reporting Officer, who looks into the team performance and is responsible for their

appraisal.

KRAs are also set for teams and each member of the team is evaluated on their performance with

respect to the goals or KRAs set at the beginning of the year/project. The evaluation is done with

respect to the Team Level performance of each team member.

A matrix is made in which each team member is evaluated upon his participation in the team task.

For this, the KRAs are used as a performance measure.

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Employees are appraised on how well they work with team members. Examples of measures used to

appraise team-supportive behaviour include the degree to which: the employee participates in

team meetings, the employee volunteers for team projects; the employee communicates with

members in a constructive and nonthreatening manner, and/or the employee is perceived by other

members as pleasant to work with and cooperative.

The team is also appraised on its internal group processes. Work assignments and performance

measures include how well: the team works together as a group; meetings are planned and run, and

if theyre on time; the team reaches consensus; and/or the team uses successful problem-solving

techniques.

An example of a matrix so formed for an employee would look like:

Behaviours / Process

Measures

Results Measures

Individual Level:

An employees contribution

to the team

Whether or how well the

employee: cooperates with

team members,

communicates ideas during

meetings, and participates in

the teams decision-making

processes.

The quality of the written

report, the turnaround time

for the individuals product,

the accuracy of the advice

supplied to the team, the

status of the employees

case backlog.

Team Level:

The teams performance

Whether or how well the

team: runs effective

meetings, communicates

well as a group; allows all

opinions to be heard, comes

to consensus on decisions.

The customer satisfaction

rate with the teams product,

the percent decline of the

case backlog, the cycle time

for the teams entire work

process.

Thus, each employee is evaluated by the Reporting Officer on the basis on these factors and then

feedback and guidance is provided as per requirement.

Since each Reporting Officer is responsible for a team of only 4-5 people, he is able to closely

monitor their performance and is able to figure out the problems.

At the senior level, there is no concept of a Reporting Officer, but a similar process is carried out

where peer evaluation is done and also, subordinates are required to rate their seniors on these

parameters.

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PROBLEM WITH THE CURRENT SYSTEM

After speaking to some of the employees, we understood that there is a level of dissatisfaction

among some of them regarding the team appraisal process. They said that during these evaluations,

only performance at team level is considered, and not the Individual level performance within the

team. This leads to problems such as free-riding by some members of the team, and since the

performance of the whole team is being evaluated, the other members have to inevitably take over

the work of those members who are not performing.

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OUR RECOMMENDATION

According to us, while evaluating the performance of the team, the Reporting Officer should also

give consideration to the performance at the Individual Level within the team. This can be done by

incorporating certain KRAs within the current system, which determine how much the individual has

contributed to the team efforts. Each member of the team can have certain targets that he has to

meet while working in the team.

Since each Reporting Officer is responsible for a team of only 4-5 people, he should able to closely

monitor their performance as a team, as well as the performance of each individual within the team.

Such a system of using a combination of both individual as well as team performance while

performing team appraisal will prove to be very effective as it will motivate the individual to

concentrate on both, his individual performance, as well as his contribution to the group.

Since individual performance is important, it will encourage individual achievement and productivity

by recognizing and rewarding individual performance and since team performance is equally

important, so it will promote, encourage and support team performance and there will be less

internal competition among individuals. Individuals will be encouraged not only to improve theirown personal work performance, but they will also be encouraged to improve teamwork skills and

upgrade their individual skills which will in turn, upgrade team performance.

Also, we feel there should be a system in place for peer evaluation at the Junior and Middle Level,

like the one which exists at the Senior Level currently. We feel that the introduction of such a system

can further improve the appraisal system. This is because if there is an individual on the team who is

not conscientious or hardworking, he/she may not give as much effort to their joint project as the

others members of their team do. Their manager or supervisor may not realize this and may give the

individual a favourable appraisal. The unproductive behaviour is hence likely to continue. However,

if all members of the team are giving peer appraisals for each member on the team, there is an

opportunity to change the behaviour of that unproductive team member through the accurate

appraisals of the peers, those who are most aware of their behaviour.

Also, the employees should be encouraged to actively participate in creating their own performance

expectations and measures of how well those standards or expectations are being met. The more

that the employees are involved in determining what will be appraised and how it will be measured,

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the more likely they will be to accept the legitimacy of the appraisal process and, more important,

the more they will be likely to behave in the ways that are considered to be ideal.

An excellent confidence building activity would be to have employees, as part of their process of

building decision-making skills, identify their roles and determine appropriate weights or values that

might be assigned to these roles for appraisal purposes.

These measures would help in building employee loyalty by giving them a sense of belonging. These

measures will also build the confidence of the employees in the appraisal system and there would be

lesser complaints, dissatisfaction and retaliations regarding the same.