5.

01.

Study indicating Learnings from different Organisations :

M/s. CUMMINS INDIA LTD.

1) Performance Planning and Performance Review are done
quarterly and Performance Approval is carried out once in a year.
During the Performance Planning, Work Norms based on the
Annual Operating Plan (AOP) of Organisation; are mutually
agreed upon at the initial stage only, between HoD and
Departmental Personnel.

The Work Norms are generally

SMART (S- Specific, M- Measurable, A- Achievable, RRealistic / Relevant, T- Timely).

There exists Performance Planning Form wherein Individual
states important 5 Goals for every next quarter giving the
details such as Initiatives to be taken, Measures to be taken,
Agreed timings for achieving Goals, Resources agreed and
Developmental Actions proposed for achieving goals.
The performance during previous quarter, with respect to
decided goals/objectives is reviewed while finalizing the
Performance Planning for next quarter.
2) The Objectives are made clear to all the employees by way of
continuous training with the help of slide presentation, role-plays.
The hints and guidelines regarding Appraisal System strengthens
the relationship between Assessee and Assessor. Periodically,
trainings on Cummins Performance Management System
(CPMS) are arranged for 2 days; as a refresher course. It helps
in clear understanding of the activities viz. Performance Planning
and Performance Review. Possibility of doubts, ambiguity is also

191

reduced which leads to very proper Performance Review

Process.
Researcher feels that these two important aspects contribute in the
effectiveness of Performance Management System in M/s. Cummins
India Ltd.

192

M/s. DAIMLER CHRYSLER (I) PVT. LTD.

02.

1) The process of evaluating the performance of employees is

known as Leadership Evaluation and Development (LEAD).
Yearly targets are mutually set upon at the beginning of the year
and Target Monitoring and Behaviour Reviewing is made at
every quarter.

LEAD process focuses mainly on :

A) Performance Appraisal.
a) Result Rating (Target Agreement).
b) Leadership Behaviour.
B) Potential Appraisal.
C) Development Planning.

Here, Personal Leadership Behaviour is also taken into

consideration for giving overall rating. Behaviour plays a very
vital role in achieving the Organisational Goals.

If Appraisee

himself / herself thinks strategically and establishes direction,

leads change, shares knowledge and experience etc., his / her
assigned responsibilities and targets are undoubtedly going to be
achieved and in turn, of Organisations.
(It is always said, Attitude (Behaviour) is everything.)

Appraisees comments are obtained after the comments /

remarks of Appraisor, in Evaluation Form itself, which
shows the overall openness and transparency in the
process.

2) Based on the review of performance through all the tiers of LEAD

Process, the criteria of Incentive / Bonus and Promotion are well
decided and implemented accordingly.

193

The overall rating / achievement over and above 100% is

only considered as Excellent and Extraordinary and
fetches more Bonus / Incentive in the form of one time
payment, relating to existing Basic.

Consistent Percentage rating over and above 100% for 3

years is considered as an Achievement and leads to
Promotion. A Core Team of Eight Senior Top Executives
go through the Ratings of High Performers and High
Potential Employees, for considering their Promotion in
the Meeting known as Performance Potential Validation
Meeting (PPVM).
It shows that Evaluation made is very just, fair and
impartial and does not carry any element of favouritism,
perception and biasedness.

194

03.

M/s. MAHLE FILTER SYSTEM (I) PVT. LTD.

1) While setting the Individual Goals for every quarter, role and
Action Plan are specifically stated in the prescribed form.
Expected Performance and Rating thereof in respect of every
Goal for every quarter are also stated in the said form.
Expected Goals with Clarity of Roles are achieved with the help
of Performance Planning made, every quarter.
Existing Standard Performance Level automatically turns into
Base for Performance for next quarter of Performance Plan.
Team Work Performers are given more / higher weightage
than individuals, in Ratings.
2) Annual Performance Index worked out in respect of all employees
is available as Input for recognition and encouragement of High
Performers, by way of additional Incentives, Merit Increments,
Promotions etc.

195

04.

M/s. EMCURE PHARMACEUTICALS LTD.

1) Performance Appraisal System is carried out based on
Organisational Goals & Objectives. Those are communicated via
multilevel cross-functional Meetings to Departmental Heads.
Departmental Targets / KRAs, are then decided and individual
targets / KRAs are finalized, based on Departmental Targets.
The Performance with respect to Targets / KRAs is reviewed in
respect of all employees.
Performance Review Discussions are conducted by the
Panel comprising Unit Head, HR Head, and the
respective Departmental Head. It shows that there is an
involvement and commitment of Top Management in the
activity.
There are certain laid down Performance Parameters and
the performance of employee is rated on the basis of
these parameters. Feedback is shared to the employee
during the discussion and the employee is also given
opportunity to share his / her views.

This shows total

transparency in the activity.

2) The cases for Promotion and Special Increments in respect of
High Performers, are discussed by Unit Head, Departmental
Head, HR Head and Finance Head and the logistic is worked out.
This again shows the Top Managements blessings, involvement,
in the activity.

196

M/s. AQUAPHARM CHEMICALS PVT.LTD.

05.

1) Performance Management System is having the 3-tier

mechanism, which is the Integrated Plan of Organisational
Growth.
a) Structural Appraisals

b) Annual Improvement Plan (AIP)

c) Strategic Business Plan (SBP)

Targets relating to work and also relating to Annual
Improvement Plan are discussed, decided and mutually
agreed upon between the employee and Head of the
Department, before the start of the Performance Year.
2)

Personal Development Plan (PDP) as well as Self

Development Plan (SDP) are in force, for proper and effective
evaluation of the individual.

3)

The clear-cut Guidelines for Assessment with respect to

various critical attributes are provided to Appraisors. These
attributes and linked weightages / ratings are formulated in a
scientific way with a view to eliminate the subjectivity in the
Performance Management System.

4)

The challenges are given to employees for upgrading the

Targets and targets are to enhance skills and competence
continuously for all employees, for their contribution to the
achievement of Organisational Goals.

Top Management of M/s. Aquapharm concentrates and always

strives for being the High Performing Organisation (HPO), by the
means of Overall Performance Management System.

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M/s. PHILIPS INDIA LTD.

06.

1) Performance Appraisal Form focuses mainly on Performance

against Key Areas of Responsibility, Personal Effectiveness in
the Job, SMART Objectives (S-Specific, M-Measurable, AAchievable, R- Relevant, T-Time-related), and Overall view of
Performance.
Appraisee writes about Training required for improvement and
Career Development.

He / She also gives the comments

about the areas required for Self Development.

2) Performance Appraisal Form is filled up by the Appraisee and
not by the Appraisor. Appraisor only reviews the same and
suggests the improvements with proper justification.

This

really shows the Transparency, Mutual Trust in the process

itself.
3)

Top

Management

Plans

and

Business

Goals

are

communicated to Employees / Staff below, by way of Best

Business Score Card (BBSC), Management Team Meeting
(HoD Meeting) and Town Meeting. The process of BBSC in
respect of all employees is reviewed every month. During the
Performance Appraisal System, the BBSCs are also taken
into consideration for evaluation of Performance with respect
to Organisational Goals / Targets.

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07.

M/s. MAHINDRA BRITISH TELECOM LTD.

(MBT)
1)

M/s MBT holds 3 Mid-Term Appraisals, focusing on

Targets / Evaluation of KRAs and goals and an Annual
Performance Review.

2)

There exists a Goal Setting Process and Performance

Review Discussions (PRD), at every appraisal. For each
role in the Organisation, Job Description, Competencies
(both Professional & Behavioural) and Key Result Areas
(KRAs) are well defined.

3) Top

Managements Plans &

Business Goals are

communicated to staff below, by way of Goal Setting

Process. The same is having the cascading effect as
under :

Organisational Goals
Functional Goals
Project Goals

Key
Result
Areas

efforts are made

To get those
matched

Individual Performance
Development
(IDP)

Figure 5.1: Goal Setting Process at M/s. MBT

4) The entire system of Appraisals is On-Line.

After

evaluation of the Performance, the Prescribed Form is

again forwarded to the Appraisee by Appraisor for his / her

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information about the ratings, which are in form of

A,B,C,D; with justification to all the attributes.
5) There

is

system

of

communicating

about

the

disagreement, if any, about the feedback / rating by

Appraisee to Reviewer / Owner, for possible amicable
settlement.

In the whole process, HR acts only as a

facilitator and intervenes only when required.

6) There is a system of benchmarking the approximate
percentage of employees to be fitted in the Grades A to D.
Based on the performance, Employees from the said
Grades, are given increment every year which ranges
between 6% to 20% rise of the previous years Gross
emoluments.
7) Workshops on Appraisal System are arranged thrice in a
year to educate and refresh Appraisors and Appraisees.
8) The unique process viz. Performance Enhancement Plan
for a period of 3 months in respect of employees is in
existence, for those employees having continuous bad
performance for 3 years.

The said Programme is

arranged under a different HoD to avoid biases and

favouritism.
The entire Performance Management System at M/s. MBT,
therefore, shows total transparency and mutual trust. It also
emphasizes on Performance enhancement of employees and
recognition to High Performers, as well; in terms of Individual
Performance Development and Key Result Areas.

200

M/s. LE MERIDIEN

08.

1) Town Hall Meetings are held on four occasions with all

Line Staff for giving plans of Hotel and overall progress
from time to time, by the General Manager of the Hotel.
2)

Training and Development activity is entirely based on

Performance Management Process.

However, with a

view to enhance Business Opportunities, in certain

cases, need-based training is also imparted to individuals
e.g. Foreign Language Training.
3) The appraisal data is used as inputs for recognition and
encouragement of high performers.

Accordingly, the

awards viz. Employee of the Month and Employee of

the Year are given to two meritorious employees; one
each from Front Office and Back Office, based on the
Appraisal Data.
4)

While awarding the indicative ratings, the assessment of

Job Holders (Appraisees) overall performance and
achievement of objectives are categorically considered.

5) M/s. Le Meridien very much believes in Internal Promotion

System.

201

M/s. JEHANGIR HOSPITAL

09.

1) Performance Appraisal System is basically giving

emphasis on Individual Development as well as
Organisational Growth in terms of Patient Care
Service.
2)

Annual Operating Plan (AOP) consists of Top

Managements Plans and Business Goals which are
informed to all, by means of Vision & Mission
Statements.

AOP is also considered as a Ready

Recokner with a view to achieve Departmental Goals.

3)

After filling up the Performance Appraisal Form, the

opportunity for discussion between Appraisor and
Appraisee is provided during Performance Review
Meeting at Departmental level. Appraisee has to offer
his comments on the Form and to sign the Form.
This shows the total transparency in the process.

4)

There is a provision of granting a One Time

Performance Bonus, Special Increment Once in a
year (not relating to Basic + DA) to deserving
individuals, based on the performance.
This is a very good motivating factor for employees to
perform better and better.

202

10.

M/s. COCA COLA INDIA PVT. LTD.

1) Performance Development Process includes :

.
a) Performance Planning
b) Development Planning &
c) Performance Review (Continuous Feedback, both
formal and informal)
2) The activity of Current Years Performance Appraisal is
processed along with the Key Result Areas (KRAs) for
next year, mentioned by the Appraisee in the Review
Form; with weightage in percentage and due date of
completion.
3) Total System of Performance Management System
is on-line.
4) During the Mid Year / Interim Reviews, Appraisee
offers his / her comments regarding the status and
progress of Goals set. Agreed action Plans based on
the discussions for the remaining year is also chalked
out. With mutual discussions and formal signing, Mid
Year rating is given.
5) Competence

levels

are

also

well

defined

and

Performance is evaluated to decide actual competence

level of an Employee.
6) The benchmarking in respect of Performance ratings
and also of Percentages of Increment with respect to
Gross Earnings of the Previous Year, are decided and
given.

203

7)

Performance Management System is entirely based

on Business Goals. KRAs of Director (Unit Head) are
presented before all employees and the progress
related to fulfillment of Companys Objective is
reviewed monthly (in form of MIS), which is known as
Effective Indicators.

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M/s. BANK OF BARODA (BoB)

11.
1)

Performance Review System possesses the aspect of

Self Appraisal (by Reviewee) which focuses on such
important points, encouraging Reviewee & Reviewing
Authority to have a common understanding

of the

factors affecting the performance of the Reviewee

and also provide an opportunity for communication
between Reviewee and Reviewing Authority on
expectations, achievements, failures, constraints and
improvements etc.
2)

Various Managerial and Behavioural dimensions are

taken into consideration by Reviewing Authority while
Assessing / Reviewing the Performance of Reviewee.

3)

The appropriate weightages based on criteria in

marking

System is given viz. Key Responsibility

Areas ( out of 50), Managerial Dimensions (out of 40)

and Outstanding Performance (out of 10). Reviewing
Authority & Final Reviewing Authority gives the marks
separately,

so

as

to

avoid

biasedness

and

favouritism.

4)

5 years consistent rating as Outstanding, leads to

Overseas / Foreign Posting which is regarded as
prestigious in the Banking Sector.

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12.

M/s. INDIAN EXPRESS NEWSPAPER

(MUMBAI) LTD.
1) Performance Appraisal System at M/s. Indian Express is
mainly based on the following assessments:
a) Key Performance Areas (KPAs)
b) Competency Based Assessment (CBA)
c) Achievement in Targets
2) In case of CBA and KPAs, the Appraisor gives the final
rating after taking into consideration, the Appraisees
personal assessment and his / her own personal
judgement of the Appraisees Performance.
5) Performance Appraisal based on achievement in Targets,
is a simple, numerical process whereby the Appraisee is
judged

based

on

Achievement

of

Targets.

The

percentage increase / increment over present Cost to the

Company (CTC) is decided and given by the Management
of M/s. Indian Express.

The Percentage increase is

ranging between 0% to 20%.

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M/s. THE AUTOMOTIVE RESEARCH

13.

ASSOCIATON OF INDIA
1)

The

evaluation

of

the

Performance

along

with

assessment of Behavioural Pattern / Qualities of the

individual (Appraisee), during the Performance Year is
made

based

on

the

different

Forms

of

Annual

Confidential Reports (ACRs) for different categories of

Employees.

Those

Forms

are

every

exhaustive,

elaborate and objective in nature.

2)

Every ACR is filled in by the Immediate Superior

(Reporting Officer) of the Appraisee, reviewed by the
Superior of Immediate Superior (Reviewing Officer) and
the same is then countersigned by the HoD or Director,
whatever the case may be.
This procedure helps in avoiding or reducing the personal
biases, grudges and even favouritism, if any, between
Appraisee and Appraisors.

3)

In respect of Employees from the category of Selection

Posts are given opportunity to express their views in the
Interview, before the Departmental Promotion Committee
(DPC). Further, Departmental Promotion Committee also
gets an opportunity vide this interview to assess the
Appraisee with a view to promotion or otherwise. DPC
can also able to communicate and discuss about the
strengths and weaknesses of the Appraisee, mentioned
by the Immediate Superior and his Superior in ACRs,
during the Interview so as to motivate and to guide /
counsel respectively.

207

4)

The Promotion System of ARAI is not only based on

Merit (through Performance Evaluation Process) but also
on Seniority. (i.e. the basic criteria of completion of 5
years in the existing Grade, for consideration of
Promotion ).

208

5.2

Researchers Views on Learning and Adopting better Systems

by one Organisation from the other:
Based on the survey and study made, Researcher could learn
various aspects pertaining to Performance Management System and
practices followed in the Organisations, and find that in most of the
Organisations studied, the Performance Management / Appraisal
System are more or less effective and beneficial to Organisations as
well as to individuals in certain areas.
Here, Researcher now strongly feels that every Organisation should
learn and try to take up better points practised in the other
Organisations, in order to make the system more productive and
foolproof in implementation and yield better results thereof.
From the Researchers point of view, an Organisation may adopt a
better system from other Organisations, which are enumerated
below :
01. M/s. Cummins India Ltd. :
Though the Performance Appraisal System is well in place, M/s.
Cummins India Ltd., may adopt the System of pre-deciding the
percentage of employees in Performance Ratings and also the
percentage of Rise to be given to Employees with respect to
Gross earnings of previous year, as followed in M/s. Coca Cola
India Pvt.Ltd. in order to bring standardization in the process and
also to enhance positive competition among employees in
achieving better performance / output.
Further,

M/s.

Cummins

may

also

try

out

Performance

Enhancement Plan for a period of 3 months in respect of lowest

10 employees, as followed in M/s. Mahindra British Telecom Ltd.,

209

to give them one more opportunity to improve upon their

performance.
02. M/s. Daimler Chrysler (I) Pvt.Ltd. :
Performance Appraisal System is very effective in M/s. Daimler
Chrysler, as there exist important activities in the process
pertaining

to

Individuals

Target

Agreement,

Leadership

Behaviour, Potential Appraisal & Development Planning. M/s.

Daimler Chrysler may also adopt the System of pre-deciding the
percentage of employees in Performance Ratings and also the
percentage of Rise to be given to employees with respect to
Gross Earnings of previous year, as followed in M/s. Coca Cola
India Pvt.Ltd., thereby enabling them to bring standardization
among employees in achieving better results.
03. M/s. Mahle Filter System (I) Pvt. Ltd. :
As Mahle Filters is already practising the System of Performance
Planning and Performance Review on quarterly basis, like other
selected Organisations such as M/s Cummins, M/s Daimler
Chrysler, M/s Coca Cola etc., it is recommended that M/s Mahle
Filters may think of introducing the System of pre-deciding the
percentage of Employees in Performance Ratings and also the
percentage of rise to be given to employees with respect to
Gross Earnings of previous year. The same would enable them
to bring standardization in the process and remove the feeling of
prejudices, biases, favouritism, at least to some extent among
employees.

210

04. M/s. Emcure Pharmaceuticals Ltd. :

M/s. Emcure may adopt the System of Performance Planning
and Performance Review on quarterly basis, as followed in M/s
Cummins, M/s.Daimler Chrysler, M/s. Mahle Filters etc., which
would help in bringing more Performance-driven culture in the
Organisation.
05. M/s. Aquapharm Chemicals Pvt.Ltd. :
As M/s. Aquapharm is aiming to become High Performing
Organisation (HPO), the system followed in M/s. Cummins; for
recognising and encouraging the High Performers for taking them
up to Higher Positions is required to be adopted. Based on the
better performance of the Employees, M/s. Aquapharm would
definitely achieve the land mark.
06. M/s. Philips India Ltd. :
M/s. Philips may adopt the System of Performance Planning and
Performance Review in respect of Employees on quarterly basis;
based on the Organisational Goals and Business Plans like M/s.
Cummins, M/s. Daimler Chrysler, M/s. Coca Cola etc. This would
help Top Management of M/s. Philips to understand the quarterly
Status of Results at Departmental and Unit level, which in turn,
be useful to identify developmental needs at regular intervals and
fulfil the same at the earliest for getting better results at early
stage.
07. M/s. Mahindra-British Telecom Ltd. (MBT):
As there is a good and unique System of Performance
Enhancement Plan for a period of 3 months in respect of
employees who are having continuous bad performance for 3

211

years, it is recommended that there may also be a laid down

policy

embedded

in

Performance

Appraisal

System,

of

recognizing and encouraging consistent High Performers for a

period of 3 years by way of taking them to Higher Positions,
instead of only giving them higher increments. Money is not only
the motivator at all times. Promotion / Higher Position is also
equally morale booster in Performance driven culture, which is
practised in M/s. Cummins, M/s. Coca Cola and M/s. Daimler
Chrysler.

08. M/s. Le Meridien :

M/s. Le Meridien may look into the aspect of pre-deciding the
percentage of Rise / Incentive to be given to employees with
respect to Gross Earnings of previous year, based on the
Performance Ratings of Individual, as followed in M/s. Cummins,
M/s. MBT, M/s. Coca Cola; in order to bring performance-driven
culture, standardization in the process and also to enhance
positive competition among employees in achieving better
performance / output.
09. M/s. Jehangir Hospital :
M/s. Jehangir Hospital may think and go for the System of
Performance Planning (Goal Setting with mutual agreement)
based on Annual Operating Plan and Performance Review on at
least 2 times in a year like M/s. MBT, enabling Top Management
to

bring

Performance-driven

culture

and

to

identify

Developmental and Training Needs at regular intervals, and to

fulfil

the same preferably during the said Performance Year

itself.

212

10. M/s. Coca Cola India Pvt. Ltd. :

M/s. Coca Cola, though having a very effective and beneficial
Performance Appraisal System, as far as Organisational Growth
and Individual Development aspects are concerned, it is felt that
there is a bit injustice in respect of employees having
Performance Rating as MS & FM.

It is recommended that

some percentage rise with respect to last years Gross Earnings

may be given to Employees having Performance Rating as MS,
like M/s. Cummins, M/s. Daimler Chrysler etc. in order to boost
the Morale of them, instead of frustrating them further. It is also
recommended

that,

M/s.

Coca

Cola

may

also

try

out

Performance Enhancement Plan for a period of 3 months in

respect of employees having Performance Rating as FM, as
followed in M/s. Mahindra British Telecom Ltd. to give them one
more opportunity to improve upon their performance, instead of
asking them to part.
11. M/s. Bank of Baroda (BoB) :
Though there exists a system of Self Appraisal in the process,
M/s. Bank of Baroda may adopt the policy of interacting by HR
Executive, Reviewing Authority and Final Reviewing Authority
with the Reviewee / Appraisee concerned, for giving the
feedback about the Performance Review / Rating, highlighting
the strengths and weaknesses for recognition and improvement
respectively. M/s. Bank of Baroda, may follow the same policy,
as followed in M/s. Jehangir Hospital, M/s. Cummins India Ltd.
etc.

213

12. M/s. Indian Express Newspapers (Mumbai) Ltd. :

M/s. Indian Express may start the practice of Performance
Review on six monthly basis like M/s. Mahindra-British Telecom
Ltd. The same would enable Top Management to take the stock
of Departmental progress with respect to Organisational Goals
and also develop the Performance-driven Culture. In addition, it
would also be useful in identifying Developmental & Training
needs and fulfilling the same preferably during the said
Performance Year itself.
13. M/s. The Automotive Research Association of India (ARAI):
This being an R&D Institute, the Performance review, especially
about the target achievement, may not be possible on Quarterly
or Half-yearly basis, like other selected manufacturing and
service organizations; as the process itself needs more time in
actual implementation and achieving the set targets. However,
M/s. ARAI may start the practice of communicating the strengths
and weaknesses of Assessee, immediately after completion of
the Performance Year, instead of communicating the same at the
time of interview of Assessee i.e. after completion of 5 years, as
being practised now.
If the abovementioned system is introduced as practised in M/s.
Jehangir Hospital, M/s. Indian Express, M/s. Emcure etc.,
Assessee concerned may immediately try to improve upon
his/her weakness(es) and give better results / performance. This
yearly dialogue about the Performance Review may also remove
the barrier of unwanted Confidentiality prevailing in Government
Parlance and lead to more openness and transparency which, in
turn, further tend to more output and productivity.

214