PERFORMANCE MANAGEMENT

SYSTEM
IN
PUBLIC AND PRIVATE COMPANIES
 Private
companies
Titan industries ltd.
Titan Industries Ltd. was incorporated in 1984 as a joint venture between Tata
Group and TIDCO Ltd,a government of Tamil Nadu undertaking. The company
is into manufacturing and marketing quartz watches since 1987. In 1995, the company
diversified into manufacturing and marketing 18-caratstudded jewellery. It expanded
its business sphere entering into two more businesses that include (a)license brands
and accessories to leverage the marketing and retailing skills by launching Fastrack
Eye wear and entering into an agreement for marketing Tommy Hilfiger watches;
and (b) precision engineering division to leverage the precision engineering
capabilities
in Titan.
These business units attract customers in multiple areas such as automobile, clock and
plastic components, precision engineered components, automobiles and aerospace
solution. The company has its outlets for watches throughout the country. The
divisions for watches and jewellery are the two main strategic business units.
Effective performance system
Management by objective (MBO)

MBO is done on a half-yearly basis. The organization decides onthe recognition

and rewards as the central motivational tools.

Multi-source assessment and feedback system (MAFS)

Titan Industry implemented a 360-degreefeedback, way back 2001 for senior

management as a development-focussed tool; for leadershipdevelopment, team
building, potential development, in addition to training needs identification
and building relations with internal customers. The company implemented 360-
degree feedback in 2001for senior management as a development-focussed tools;
for leadership development, team
building, potential development, in addition to training needs identification, and in
ternal customer relations building.
Business scorecard (BSC)
Throught the scorecard, Titan tracks the commitment of the seniormanagement
team (SMT) which is critical to successful implementation of a balance scorecard.
TheBSC has created a dynamic environment in the organization. TITAN follows the
10, 80, 10 rule in thisregard, which means 10 key result indicators (KRIs), up to 80
performance indicators (PIs0, and 10key performance indicators (KPIs).

The KPI team focuses sharper attention on the end product; do not try to identify
80 key performanceindicators. But, it searches for the characteristics of a good KPI.
The organization traps all performancemeasures in a data base, make them
available to all, and to make the system transparent.
ZOMATO
Zomato is an online restaurant search and discovery service firm. It was established in
the year2008. It was founded by Mr. Deepinder Goyal and Mr. Pankaj Chaddah under
the name ofFoodiebay, which was changed to Zomato in 2010. Currently, it operates in
24 countriescovering 1.2 million restaurants across the globe. In India, it is present in
37 major cities.Between 2010 and 2013, the company was able to raise funds of
US$16.7 million from InfoEdge (India) against a stake of 57.9% in Zomato. It also
expanded overseas in UAE, Sri Lanka,UK, Qatar, South Africa, New Zealand, Turkey,
Brazil, Indonesia, Portuguese and Philippines.In November 2013, Zomato raised more
funds (US$ 37 million) from Sequoia Capital and InfoEdge (India).
 Managing Performance,
Evaluation
The performance of all the SMs are monitored very closely. As the sales cycles are only
for 15 days and daily report submission is mandatory the performance is updated on
daily basis. If any SM is lagging in any part they are immediately updated on it. The
targets if not met are carried forward to the next sales cycle thus increasing the work
pressure on SM, this is one of the reason that SM are very conscious about their target
achievement.
Evaluation of SM is done in 3 stages. There are quarterly reviews of each SM, which is
Done twice followed by an appraisal every 9 months. Quarterly reviews are done by
the team lead along with an HR personnel. This is again done in two phases, one with
the team and another individually. Here SMs are made aware of their current targets
and also about the team. HR personnel is for recording the review and documenting
the same for future reference. The quarterly reviews are also known as ‘Virtual
Appraisals’ in Zomato.
• After every 9 months actual appraisals take place where the following parameters
are considered for evaluation Performance in sales, Experience, Cultural fit,
Consistency and Team contribution. If all the targets are met then there are two
ways any SM is appraised. First, being a promotion where both designation and
salary are upgraded. Second, being only an increase in package or annual salary.
This appraisal is conducted by City Head and HR personnel. The previous records
of virtual appraisals are also considered in these appraisals. Based on parameters
HR proposes how the SM must be awarded (Promote or just increase the salary)
but the main call is in the hands of City Head. Such system keeps a tight control
over the SMs and force them to perform consistently
 Public
companies
SAIL{steel authority of India ltd}
Almost every organization in one way or another goes through a periodic ritual,
formally or informally, known as performance appraisal. Performance appraisal has
been called many things. The formal performance appraisal has been called a tool of
management, a control process, an activity and a critical element in human resources
allocation. Uses for performance appraisal have included equal employment
opportunity considerations, promotions, transfer and salary increases. Primarily
performance appraisal has been considered an overall system for controlling an
organization. Performance appraisal has also been called an audit function of an
organization regarding the performance of individuals, groups and entire divisions.
 Performance management
system
This system is for performance appraisal for executives of the level E-0 to E-4 . The
various steps involved are:
A) Self Appraisal Performance Review & Planning
I. Appraisee write his view over the actual achievement for the Key performance
area / Task and Target assigned to him for the year.
II. Comments on fulfillment of KPA / Task and Target are written by the Reporting
Officer , taking account of time frame also.
III. Special Jobs other than tasks given and normal routine work are written by
appraisee.
B) Performance Review Discussion
I. Both appraisee and reporting officer sit together.
II. Comment over Strengths and weaknesses and areas for development are written
Which is undersigned by both .
III. Appraisee can help the reporting officer by giving examples which shows his
strength or weakness. He also tell what training he want to undergo .
C) Performance Assessment
I. Rating between 1 to5 are given to the appraisee by the Reporting Officer
and Reviewing Officer individually on the basis of Performance Factors and
Potential Factors.
Performance Factors :Quantity of output
Quality of output
Cost control
Job Knowledge and Skill
Team spirit and Lateral
Coordination
Discipline
Development & Quality of assessing subordinates
Special Relevant factor
Potential Factors : Communication
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Initiative
Commitment and sense of Responsibility
Problem Analysis and Decision making
Planning and Organizing
Management of Human resources
II. Different weightage are given to each factor
III. Final scores are calculated by multiplying rating and weightage .By adding
these Total Factor Score is calculated.
IV. Comments on Overall Performance And Potential are written by both
Reporting and Reviewing Officers individually.