[1]

SUMMER TRAINING REPORT ON

“HR SCORECARD STUDY OF MAGMA FINCORP LIMITED”

Submitted in partial fulfilment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

UNDER THE ABLE GUIDANCE OF

MR.AFROZ JAMAL AKHTAR

SENIOR MANAGER- HR, (UP ZONE)

Submitted by

JAZIBA HAROON SIDDIQUI

(14MBA-28)

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT STUDIES & RESEARCH

ALIGARH MUSLIM UNIVERSITY, ALIGARH

(Date of submission: 26th

October, 2015)

[2]

DECLARATION

I hereby declare that this report entitled “HR Scorecard study of Magma Fincorp Limited”

carried at Magma Fincorp Ltd. Hazratganj; Lucknow for a period of seven weeks i.e.

from 23rd

May to 28th July, 2015 submitted in partial fulfilment for the Degree of Master

in Business Administration from Aligarh Muslim University is the result of my work and is

true.

The above titled work has been carried out by me under the able guidance of Mr. Afroz

Jamal Akhtar, Senior HR Manager, UP Zone, Magma Fincorp Ltd.

I further declare that this is my original work and has not been previously submitted to this or

any other university for any other degree or diploma.

Name: Jaziba Haroon Siddiqui

Date: 18th

August, 2015

Faculty No: 14MBA-28

Place: Aligarh Muslim University, Aligarh

[3]

ACKNOWLEDGEMENT

This project draws inspiration and wisdom from the efforts and support of many individuals.

I am especially indebted to Afroz Jamal Akhtar (Senior Manager HR) and Mohammad

Shahroz Khan (Deputy Manager HR) who was very generous with both their time and

their patience, providing a window into the best current work on HR measurement systems. I

was benefited not only from their work on “balanced” strategic performance measurement,

but also from the passion and generosity with which they shared those ideas.

I am also thankful to other summer interns at Magma to name Rahul Jagjipuri (IIM Kolkata),

Harneet Kaur (Amity University Lucknow), who helped in my understanding of the project.

Aradhna Mishra who was newly appointed as HR Executive in Magma also helped in making

me learn some essentials of HR apart from my project.

I also owe a special debt of gratitude to Dr. Ayesha Farooq & my faculty guide Dr. Feza T.

Azmi for their guidance and anytime support.

This project would be incomplete without the mention of Mohammad Kashif (Head HR

Ango Zara e Commercio).His help unearthed many recent trends in HR field and solved the

dilemma of my project title.

Finally, I am most grateful to my family, who provided love and support too valuable to

measure.

Jaziba Haroon

[4]

TABLE OF CONTENTS

TITLE Pg. No.

1. Declaration 2

2. Acknowledgement 3

3. Executive summary 5

4. Chapter 1: COMPANY PROFILE 6-10 5. 1.1 About Magma Fincorp Limited 6 6. 1.2 Magma’s Operation 6 7. 1.3 Magma’s Belief 6 8. 1.4 Quick overview of Magma Fincorp Ltd. 7 9. 1.5 Organisation Structure of Magma 8 10. 1.6 HR Capital of Magma 9 11. 1.7 Products & Services of Magma 10 12. Chapter 2: INTRODUCTION TO SCORECARD 11-15 13. 2.1 Background of Evaluation Tools 11 14. 2.2 Origin of Balanced HR Scorecard 11 15. 2.3 Scope of Balanced Scorecard 12 16. 2.4 Balanced HR Scorecard 13 17. 2.5 Benefits of HR Scorecard 14 18. 2.6 Steps to create HR Scorecard 15 19. Chapter 3: RESEARCH METHODOLOGY 16-17 20. 3.1 Title of the Study 16 21. 3.2 Research Methodology 16 22. 3.3 Research Design 17 23. 3.4 Collection of Data 17 24. 3.5 Procedures 17 25. Chapter 4: HR SCORECARD AT MAGMA 18-22 26. 4.1 Introduction 18 27. 4.2 Need for Transition of HR Scorecard at Magma 18 28. 4.3 Metamorphosis of HR Scorecard at Magma 19 29. 4.4 Terms used in the HR Scorecard of Magma 20 30. 4.5 Performance appraisal at Magma using HR Scorecard 22 31. Chapter 5: DISCUSSION OF DIFFERENT HR SCORECARD AT MAGMA 23-40 32. 5.1 Talent Acquisition Scorecard (TAS) 2014-15 23-31 33. 5.1.1 Introduction 23 34. 5.1.2 What is Talent Acquisition 23 35. 5.1.3 Why is Talent Acquisition so important 23 36. 5.1.4 Role of HR in Talent Acquisition 24 37. 5.1.5 Need for Talent Acquisition Scorecard 24 38. 5.1.6 Talent Acquisition Scorecard at Magma 24 39. 5.1.7 KRAs of TAS 2014-15 25 40. 5.1.8 Calculation of KRAs & their evaluation criteria 26-29 41. 5.1.9 Talent Acquisition Scorecard Criteria 2014-15 30

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42. 5.1.10 Talent Acquisition Scoring Grid 2014-15 31 43. 5.1.11 Formula for calculating Combined Rating Score 32 44. 5.2 Business HR Scorecard (BHRS) 2014-15 33-40 45. 5.2.1 Introduction 33-34 46. 5.2.2 BHRS Judgement Criteria 2014-15 35 47. 5.2.3 BHRS Scoring Grid 2014-15 36-38 48. 5.2.4Regional BHRS 2014-15 39-40 49. Chapter 6: GRAPHICAL REPRESENTATION OF BHRS 2014-15 41-56 50. Chapter 7: JOURNEY OF DIFFERENT KRAs THROUGH 2009-2014 57-61 51. 7.1 BHRS Zone Wise 2014-15 62 52. 7.2 Magma’s Twin Year Comparison 63 53. 7.3 Outcome of HR’s Toil & Effort 64 54. Chapter 8: DATA ANALYSIS & FINDINGS 65-67 55. 5.3 Business HR Goals (BHRG) 2015-16 68 56. 5.3.1 Introduction 68 57. 5.3.2 Introduction to KRAs of BHRG 2015-16 68 58. 5.3.3 Design & Discussion of KPIs of BHRG 2015-16 69-73 59. 5.3.4 BHRG Scoring grid criteria 74-76 60. Chapter 9: RECOMMENDATIONS 77-80 61. 9.1 Recommended Balanced HR Scorecard 2015-16 81 62. Chapter 10: CONCLUSION & LIMITATIONS 82 63. 10.1 Conclusion 82 64. 10.2 Limitations 82 65. APPENDIX 83 66. BIBLIOGRAPHY 84

[6]

EXECUTIVE SUMMARY

The objective of this project is to study HR Scorecard of Magma Fincorp Limited &

thus develop an improvised one for the organisation in the form of recommendation.

The work in this project mainly revolves around the effective utilization of HR’s capabilities

& efficiency in achieving the firm’s strategy.

For any organisation effective utilisation of its resources plays an important role. When it

comes to Human capital which is an intangible asset of any organisation it becomes more

important & necessary to convert & show its tangible benefits. The responsibility of

accomplishing this task rests on the shoulders of HR managers which are considered as

overhead cost in any company. To solve this dilemma of HR managers Kaplan & Norton

devised a performance measurement tool popularly known as HR SCORECARD.

The mechanism adopted for this project is to examine & analyse at the company level

the strategy followed by the organisation to fulfil its set goals & watch how far the

policies, programs & procedures adopted by the HR Department are aligned with it. It

involves an intensive study of the HR Scorecard and its elements. HR Scorecard analysis is

done on the widely accepted concepts of Kaplan & Norton’s Balanced Scorecard to

understand the pros & cons of creating an HR Scorecard.

On the basis of above analysis following areas of discussion & implementation in a Balanced

HR Scorecard has been identified-

1. Clearly lay down business strategy

2. Determine HR Deliverables

3. Focus on HR performance drivers

4. Identify HR Enablers for corresponding performance drivers

5. Determine High Performance Work System

6. Check HR system alignment

7. Identify HR Efficiency measures

8. Perform Cost-Benefit analysis

The data for interpretation starting from 2009 to 2013 was given while the data for 2014-15

was collected during the course of training from different branches of Magma which

indicates that both secondary & primary data have been used for research.

[7]

CHAPTER 1: COMPANY PROFILE

1.1 ABOUT MAGMA FINCORP LIMITED

Since Magma had set up a shop in 1989, Magma has been driven by one single

purposeful goal-investing in the smallest dream. A loan every minute, a million lives

touched every year; Magma has managed assets over Rs. 160 billion, for them it is just a

beginning. Magma has a defying presence in all the four directions of the country. It has

its branches in Delhi, Haryana, Punjab, U.P, Rajasthan, Indore, Jabalpur, Mumbai,

Nagpur, Gujarat, Chattisgarh, Bihar, West Bengal, Orissa, Tamil Nadu, Kerala,

Karnataka, and Andhra Pradesh.

1.2 MAGMA’s OPERATION

Magma possesses a diversified product portfolio: loans for cars and utility vehicles,

commercial vehicles, construction equipment, tractors, used vehicles, SME businesses,

mortgage finance as well as gold loan financing, housing finance and general insurance.

In 2012-13 year, Magma launched loans for mortgaged finance following the acquisition

of the mortgage business of GE India. Magma entered in to general insurance business

through Magma HDI General Insurance Company, a joint venture with HDI Gerling. The

HDI-Gerling brand, is a part of Hannover based Talanx group, the third-largest German

insurance Group operating in around 150 counties of the world.

1.3 MAGMA’s BELIEF

Magma believes that no dream should go unfulfilled because of the lack of funds. The

dream of a first-time car buyer, who wants to take his family on their first long drive, the

dream of a fleet operator, whose business has grown from a single commercial vehicle to

a fleet of 25.After fulfilling many such dreams, our customers’ trust has fuelled our own

dream- to become the largest retail-finance company in the country. Being one of the

fastest growing economies, India is high on aspirations but low on funding, that’s where

we step in. Everyone has a dream to reach out to; we are here to take you closer to yours.

[8]

1.4 QUICK OVERVIEW OF MAGMA FINCORP LIMITED

Fig 1: GLIMPSE OF MAGMA

[9]

1.5 ORGANISATION STRUCTURE OF MAGMA

*BOD- Board of Directors

*MD- Managing Director

*HOD-Head of Department

*HR- Human Resources

*IT- Information Technology

*NH-National Head

*CE-Construction Equipment

*CV-Commercial Vehicle

*SME-Small & Medium Enterprises

*RSM-Regional Sales Manager

*ASM-Assistant Sales Manager

Fig 2: FRAMEWORK OF MAGMA

BOD

MD

HOD

Recovery

HOD

Strategy

HOD

IT

HOD

Sales

HOD

Marketing

HOD

HR

HOD

Operation &

Credit

NH Car NH

Suvidha CE & CV

NH

TRACTOR

NH

SME

ZONAL

WEST

ZONAL

NORTH

ZONAL

SOUTH

ZONAL

EAST

RSM PUNJAB RSM HARYANA RSM DELHI RSM U.P

RSM RSM

ASM ASM ASM ASM ASM ASM

Fleet On Street Fleet On Street

[10]

1.6 HR (Human Resource) CAPITAL OF MAGMA

Fig 3: FRAMEWORK OF HR DEPARTMENT OF MAGMA

Chief People’s Officer

VP(C& B)

Compensation &

Benefit + Training

Senior Manager

Campus

VP(HR)

Talent acquisition

Business HR

Corporate HR

Manager (C & B)

Senior Manager

(C & B)

Business HR

HR

Operations

HR

Automation

South HR North HR

Senior Manager

Training West

Executive HR Assistant Manager

HR

Deputy Manager

HR

Senior Manager HR

South

West HR East HR

Senior Manager Training

South

Senior Manager

Training North Senior Manager

Training East

Manager Training

West

[11]

1.7 PORTFOLIO OF MAGMA’S PRODUCTS & SERVICES

Magma continues to offer an expanding set of products & services to its customers since its

inception.

Customer friendly features promised by Magma are:

1. Prompt Customer services

2. Hassle free claim processing

3. Extensive geographical reach

4. Flexible documentation

5. Quick processing

6. End-to-end door step service through the nearest Magma Office

7. Well trained & knowledgeable team

Fig 4: PRODUCTS & SERVICES OF MAGMA

MAGMA LOANS

•Commercial vehicle loans

•Car Loans

•SME Loans

•Tractor loans

•Auto lease

•Used Vehicle Loans

•Construction Equipment Loans

MAGMA HOUSING FINANCE

•Loans for Residential Living

•Loans for Commercial Living

•Plot collateral Security

MHDI

•Motor Insurance

•Liability Insurance

•Fire Insurance

•Engineering Insurance

•Burglary & Risk Insurance

•Marine Insurance

[12]

CHAPTER 2: INTRODUCTION TO SCORECARD

2.1 BACKGROUND OF EVALUATION TOOLS

Through the frameworks, research and cases encompassed in several works, the different

authors have given a new generation of tools to measure and manage the creation of human

capital, financial results, operation process, marketing techniques and behavioural

assessments. Few of them are:

1) Balanced Scorecard

2) Benchmarking

3) Big Data Analytics

4) Business Process Reengineering

5) Change Management Programs

6) Complexity Reduction

7) Core Competencies

8) Customer Relationship Management

9) Customer Segmentation

10) Decision Rights Tools

11) Downsizing

12) Employee Engagement Surveys

13) Mergers And Acquisitions

2.2 ORIGIN OF BALANCED HR SCORECARD

Organisations have been tracking progress by employing a mix of financial & non-

financial measures.

General Electric work on performance measurement in 1950s.

Work of French process engineers creating a “dashboard” of performance

measurement in the early 20th

century.

Art Schneiderman in 1987 created one such system.

In 1990, Schneiderman worked in conjunction with Dr.Robert S.Kaplan & David P.

Norton & during his study described his work on Performance Measurement.

In 1992, many articles were published on BSC but Robert S .Kaplan’s (HBS) &

David P. Norton’s idea of Balanced Scorecard as HBR article was a popular

success.

[13]

In 1996, Kaplan & Norton published a book “The Balanced Scorecard” which made

them as the creators of the concept of BSC.

In 2000, Kaplan & Norton came up with their second book “The Strategy Focussed

Organisation” Subsequent writings of the authors emphasised on the use of Balanced

Scorecard than its design.

2.3 SCOPE OF BALANCED SCORECARD:

The Balanced Scorecard is a strategic planning & management system (not only a

measurement system) that –

Enables organisations to clarify their vision & strategy and translate them into action,

Defines an organisation’s performance ,

Measures whether management is achieving desired results,

Provides feedback around both internal business processes and external outcomes

in order to continuously improve strategic performance & results,

When fully deployed ,transforms strategic planning from an academic exercise into

the nerve centre of an enterprise,

Translates Mission & Vision statements into a comprehensive set of objectives &

performance measures that can be quantified & appraised,

Typically includes the following categories of performance measures :

1. Financial Performance

2. Customer value

3. Internal Business Process

4. Employee Performance

Fig 5: DIMENSIONS OF PERFORMANCE MEASUREMENT

Financial Performance (revenues, return on earnings, cash flow)

Customer value Performance(market

share, satisfaction, loyalty)

Internal BusinessProcess Performance(timeliness,

productivity rates, quality measures)

Employee Performance(morale,

knowledge,turnover,best training practices)

[14]

2.4 BALANCED HR SCORECARD

Scorecard can be developed for any of the functional area of the organisation. So, the

scorecard developed for the HR Department is known as HR Scorecard.

We can’t manage something that we can’t describe. Measurement is the language used

to describe organisations & strategy.

Many HR management teams have a well-developed vision of their department’s strategic

value (atleast from the perspective of HR), but the CEO & the line managers are at best

sceptical of HR’s role in the firm’s success. Worse, in many firms executives want to believe

that “people are our most important asset,” but they just can’t understand how the HR

function makes that vision a reality.What explains this situation? We believe that these

problems have the same root cause: HR’s influence on firm performance is difficult to

measure.

Professionals in Human Resources are increasingly challenged to take a more strategic

perspective regarding to their role in the organisation. We find that as HR professionals

respond to this challenge, measuring HR’s performance & its contribution to the firm’s

consistently emerges as a key theme. To discard the accounting mentality which says that HR

is primarily a cost centre in which cost minimisation is the principal objective & measure of

success & to demonstrate HR’s contribution to the firm’s performance if current accounting

methods can’t give HR professionals the measurement tools they need. In an economy,

where value creation is dominated by human capital & other intangible assets, there

can be no better starting point than with the measurement of resource strategies. The

HR scorecard does just that & provides an important step forward in our ability to

manage strategy

It represents an important lever that firms can use to design & deploy a more effective HR

strategy. Many firms seem to be unaware of the consequences of their investment decisions

involving people. It is the most effective way to change the calculus which is designed to link

people, strategy & performance. We are at a watershed because the asset (HR) that is most

important is the least understood, least prone to measurement & hence susceptible to

management.

To ensure that HR is at the table & not on the table, we need to prove HR a strategic

partner thereby making it a prime source of potential sustainable competition. If HR

function can’t show that it adds value, it risks being outsourced.

To avoid all above known & other threats the HR department is blessed with a

measurement tool known as HR Scorecard, to empirically show its contribution in the

firm’s overall strategy. It is a subset of Balanced Scorecard.

[15]

2.5 BENEFITS OF HR SCORECARD

1. It reinforces the distinction between HR doables & HR deliverables.

The HR measurement system must clearly distinguish between deliverables, which influence strategy

implementation, & doables, which do not .For e.g. policy implementation is not a deliverable until it

creates employee behaviors that drive strategy implementation.

2. It enables to control cost & create value.

HR will always be expected to control costs for the firm. At the same time, serving in a strategic role

means that HR must also create value. The HR Scorecard helps HR managers to effectively balance

those two objectives. It not only encourages these practitioners to drive out costs where appropriate

but also helps them defend an “investment ” by outlining the potential benefits in concrete terms.

3. It measures Leading indicators.

Just as there are leading & lagging indicators in the firm’s overall balanced performance measurement

system, there are both drivers & outcomes within the HR value chain. It is essential to monitor the

alignment of those HR decisions & system elements that drive HR deliverables.

4. It assesses HR’s contribution to strategy implementation &, ultimately to the

“bottom line.”

Any strategic performance measurement system should provide the chief HR officer (CHRO) with an

answer to the question,” What is HR’s contribution to firm performance?” The cumulative effect of

the scorecard’s HR deliverables measure should provide that answer. HR managers should have a

brief, credible, & clear strategic rationale for all deliverable measures. If that rationale doesn’t exist,

neither should the measure.

5. It lets HR professionals effectively manage their strategic responsibilities.

The HR Scorecard encourages HR managers to focus on exactly hoe their decisions affect the

successful implementation of the firm’s strategy. Because HR professionals can achieve that strategic

influence largely by adopting a systemic perspective rather than fiddling with individual policies, the

Scorecard further encourages them to think systemically about HR’s strategy.

6. It encourages flexibility & change.

A common criticism of performance measurement systems is that they become institutionalized &

actually inhibit change .The HR Scorecard engenders flexibility & change because it focuses on the

firm’s strategy implementation, which constantly demands change. With this approach, measures take

on a new meaning. Unlike in a traditional organisation, in a strategy–focused organization, people

view the measures as means to an end, rather an end in themselves.

[16]

2.6 STEPS TO CREATE HR SCORECARD

Fig 6: STEPS FOR DEVELOPING AN HR SCORECARD

CLEARLY DEFINE BUSINESS STRATEGY e.g. focus from service to sales

IDENTIFY HR DELIVERABLES e.g.KRAs

HIGH PERFORMANCE WORK SYSTEMe.g. KPIs

IDENTIFY HR SYSTEM ALIGNMENT

IDENTIFY HR EFFICIENCY MEASURES e.g.Cost per hire

HR SCORECARD

[17]

CHAPTER 3: RESEARCH METHODOLOGY

3.1 TITLE OF THE STUDY

Title of the study is “HR Scorecard study of Magma Fincorp Limited.”

The study was done at strategic business unit of Magma located at Hazratganj, Lucknow.

3.2 RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It gives an idea

about various steps adopted by the researcher in a systematic manner with an objective to

determine various matters.

3.3 RESEARCH DESIGN

Research Design states the conceptual structure within which a research is to be conducted. It

is considered as the framework or plan for a study that guides as well as helps data collection

& analysis of data.

Research Design is of three types:

Exploratory Research

Descriptive Research

Causal Research

The study is based on Exploratory & Descriptive Research Design.

The nature of Research Design is both Qualitative as well as Quantitative.

The Qualitative research design is followed while identifying the best HR Scorecard for

Magma while the Quantitative research is followed in calculating the HR Efficiency

with the help of HR Scorecard.

Exploratory: The study is exploratory in nature because of the in depth study required

for calculating the HR Efficiency. This is the first project of its kind carried at Magma

Fincorp Ltd. therefore all the studies were done minutely.

[18]

Descriptive: The study is descriptive because HR Efficiency was calculated for

various KRAs (Key Result Areas) and then analysed through different years to

observe the current status of HR Department in Magma Fincorp Ltd.

3.4 COLLECTION OF DATA

Data collected is both primary & secondary in nature.

Primary Data – the data is collected for the first time & hence is fresh & original in nature.

Secondary Data – The data is collected from the company appraisal files LAN (Local Area

Network) of Magma Fincorp Ltd.

3.5 PROCEDURES

Following methodology approaches were undertaken to build an understanding & develop an

HR scorecard.

Articles and Blogs on the HR scorecard.

Interviews with the HR management team of the organization at the regional level.

Conversation and interview with employees in the organisation at the regional level.

Researching the established companies in the same domain by going through their HR

scorecard.

Researching the difference between the HR scorecard of private sector & government

sector organizations available online.

Studying the text book chapters related to HR scorecard and objective based

development of scorecard to prove its tangibility.

[19]

CHAPTER 4: HR SCORECARD AT MAGMA

4.1 INTRODUCTION

Though Magma Fincorp Ltd. is an old player in the Finance & Insurance industry but six

years before in 2009 Magma Fincorp Ltd. came up with its first HR Scorecard. Since then it

has been making changes in the scorecard to keep pace with the other organisations and to

evaluate timely its HR performance.

Only the scorecard for 2014-15 & 2015-16 fiscal years was made available to me. The

inference was drawn that in 2014-15 Magma used to have two scorecards namely

Talent Acquisition Scorecard meant for evaluating the performance of Talent

Acquisition part of HR department and,

Business HR Scorecard dealing with measurement of performance of activities

other than talent acquisition.

4.2 NEED FOR TRANSITION OF HR SCORECARD AT MAGMA

It was then on 20th

May, 2015 that Magma came up with only one HR Scorecard under the

name Business HR Goals 2015-16 by combining the two former scorecards of 2014-15.

When enquired for the reason behind this change my trainer provided the following

justifications :

Talent Acquisition contributes a major portion in the HR department

Most of the cost associated with the HR department is incurred during talent

acquisition

It was cumbersome to prepare two scorecards & then analyse them individually

Time was saved in collecting data

Overcame duplication of efforts

The organisation is more interested in the business made by the HR department

More focussed view

The HR department employees could now easily appraise the employees and the

branches

Thus, Magma is at present following the Business HR Goals 2015-16 Scorecard and will

keep on improving it with the passage of time and need of the hour.

[20]

4.3 METAMORPHOSIS OF HR SCORECARD AT MAGMA

BEFORE JUNE 2015

AFTER JUNE 2015:

Fig 7: TRANSITION OF HR SCORECARD AT MAGMA

HR SCORECARD

TALENT ACQUISITION SCORECARD 2014-15

BUSINESS HR SCORECARD

2014-15

HR SCORECARD

BUSINESS HR SCORECARD

2014-15

TALENT ACQUISITION SCORECARD 2014-15

BUSINESS HR GOALS 2015-16

[21]

4.4 TERMS USED IN THE HR SCORECARD OF MAGMA

The HR Scorecard of Magma rests on the following terms:

1. KRAs (Key Result Areas)

2. KPIs (Key Performance Indicators)

3. Weightages

KEY RESULT AREAS (KRAs) – These are the areas in the individual’s job where

results need to be achieve. They explain the significant responsibilities of the job

which are thrust areas dictated by the need of the business.

Eg. KRA - Existing application of management in IT.

KRA Statement – To ensure maintenance & enhancements of existing IT applications to

cater to the business/organisational need.

The above flow diagram shows that how the KRAs & KPIs are made & revised by the

administration of the organisation like the managers who mainly control a very crucial

& major workforce.

Fig 8: FLOWCHART FOR KRA & KPI SETTING AT MAGMA

The managers & direct reportees discuss KRAs,KPIs

& weightages offline

Direct reportees keys in KRAs/KPIs & assigns weightages & measures in the

web

Manager

approves

online

Managers asks direct

reportees to modify

KRA & KPI setting document is completed.

Process is finalised in web.

[22]

KEY PERFORMANCE INDICATORS (KPIs) – A performance indicator

or KPI evaluates the success of a particular activity in which it is engaged.

Eg. For the above example KPI would be: 1) percentage availability of existing applications.

2) Number of enhancements

MEASUREMENT CRITERIA (MC) – Are the scale against which KRA or

goal achievement is to be measured .Measures are defined in terms of quantity,

quality & timeliness of accomplishment or by cost/resource utilisation for a specific

goal.

Eg. – Continuing above example the MC would be: 1) 95% of availability of existing

application

2) 8 numbers of enhancements

WEIGHTAGES TO KRAs (W) – Weightages are assigned to KRAs or goals

to communicate the importance & prioritisation of the goals. It depends either on the

importance of the outcome or on the effort required to attain them .They are assigned

in (%).It emphasises on results.

Eg. W= 20% for the above mentioned KRA.

Table 1: FORMAT FOR KRA & KPI IN MAGMA

Ecode of

Employee

Name of

employee

KRA Details of

the

job/role

KPI(MEASUREMENTS) Weightage Self-

assessment

Manager

Feedback

Manager

Rating

KRA1

KRA2

KRA3

The above table shows the design & layout for mentioning KRAs, KPIs, weightages under common roof. The above table is also a result card for every employee’s performance.

[23]

4.5 PERFORMANCE APPRAISAL AT MAGMA USING HR SCORECARD

After identifying KRAs, corresponding KPIs & allocating weightages the major task of HR

department is to review of what an employee has achieved & how much ground is still to be

covered is extremely essential. To fulfil this purpose the HR team of Magma, appraises its

employees twice a year i.e. in Oct/Nov known as Mid-term review & in Apr/May known

as Annual Review.

At Magma Fincorp Ltd

The following flowchart shows that how the performance appraisal is done at Magma. The

structure of each department is discussed & finalised in the general meeting of National &

Departmental Heads. The job role of each department is laid depending upon which the

KRAs & KPIs are written in black & white & then uploaded on the LAN of Magma for every

employee. The employee is supposed to study the KRAs fill an e-appraisal form and upload it

again or send it to his/her reporting manager .

Fig 9: FLOWCHART SHOWING PROCESS OF APPRAISAL AT MAGMA

Joint Discussion with

Nationals Heads

/Departmental Heads

Finalisation of Department

Structure

Role Identification

KRA Finalisation for each

Year

KPI Identification

Upload KRA & KPI in web

Mid - term review in

Oct/Nov

Annual review in

April /May

Communication of

ratings to employees after

normalisation

[24]

CHAPTER 5: DISCUSSION OF DIFFERENT HR SCORECARD AT

MAGMA

As already stated, that Balanced Scorecard can be developed for any part of the organisation to

evaluate performance. But in this case, Magma till date has developed scorecards only for its HR

Department known as the HR SCORECARDS to find out that how its HR team is contributing to

the organisation. In Magma the review of HR department of different branches through HR

Scorecard is done four times a year after every three months. Here we will discuss three HR

Scorecards so far made & implemented in Magma. Data for Jan-Feb-Mar 2014-15 was collected.

1. TALENT ACQUISITION SCORECARD (TAS) 2014-15

2. BUSINESS HR SCORECARD (BHRS) 2014-15

3. BUSINESS HR GOALS (BHRG) 2015-16

5.1 TALENT ACQUISITION SCORECARD (TAS) 2014-15

5.1.1 INTRODUCTION

People are the assets on which competitive advantage is built, whether in public or

private sector, whether in the corporate world or in the world of education. In the words of the

latest theory of human resource management, people are an ’inimitable’ asset. People & their

skills is the one thing that competitor organisations cannot imitate. So, the human resource

management & the practices associated with it have become accepted by managers by all forms

of organisations as one of the strategic levels to ensure continuing success.

5.1.2 WHAT IS TALENT ACQUISITION?

Talent Acquisition means just not recruitment, selection, training, learning or

development but acquiring the right talent. To say more precisely it can be said as

attracting the talent through recruitment & selection. Hiring a suitable candidate not

fulfils the criteria but also retaining him to reduce the turnover & minimising “talent

drain”.

5.1.3 WHY SO IMPORTANT?

1. Corporations have started linking their Mission, Objective, Strategies & Tactics

(MOST) to the functions of recruitment & selection.

2. The economic liberalisations & consequent competition through quality & services

have necessitated the companies to search for & attract competent human resources.

[25]

3. Many companies still face a continuing unmet demand for skilled workers. “Indeed, in

the service sectors experiencing the most intense expansion- construction, healthcare,

engineering, consulting, finance, & education –the fight for talent continues.”

4. The most valuable asset of any large organisation is high-calibre employees.

5. Finding right people & putting them at the right jobs is the most important challenge

for any organisation.

6. Recruitment & selection have been found to have a greater correlation with employee

suitability & performance levels with the organisation’s needs.

7. In the present business environment, organisations are faced with the pressure to

produce more with fewer resources. Employees, on whom an organisation’s profitability

depends, comprise the largest fixed cost that an organisation occurs.

8. Acquiring the right person simultaneously keeping costs down is an issue of concern.

5.1.4 ROLE OF HR IN TALENT ACQUISITION

On the human resources front, productivity can be improved by ensuring that the

organisation attracts the best talent at lowest possible cost. This objective translates into the

adoption of the best recruitment & selection methods & instituting measures to retain & develop

them. Leading a corporate recruitment or staffing function is not easy. The HR has to find out the

right number & quality of employees required. Once determined the management has to find the

places where required human resources are or will be available. Lastly, find the means to attract

them towards the organisation before selecting suitable candidates for jobs. The HR must aim at

increasing the “Selection Ratio” i.e. increasing the number of applicants per job. It is very much

important to distinguish between high performers, high potentials & high effort, while designing

the strategies to attract & retain the employees.

5.1.5 NEED FOR TALENT ACQUISITION SCORECARD

A quantitative measurement of recruitment & selection effectiveness has to be conducted to

prove one’s point. With respect to quantitative measure to improve HR effectiveness the talent

acquisition scorecard works best and displays the quantitative results. It shows that up to what

extent the HR management has succeeded in cutting down the recruitment costs while

hiring & retaining the employees for the company without compromising on the talent

area.

5.1.6 TALENT ACQUISITION SCORECARD AT MAGMA

Magma formulated its TAS in May 2014. It contains many KRAs which are the foundation of

this scorecard. These KRAs help in evaluation of performance of Talent Acquisition task of HR

department. Since any organisation is run by its employees therefore a pipeline of talented

candidates must be maintained to continue the smooth working of organisation. After reading

this chapter the reader will develop an understanding of how talent acquisition not only

[26]

contributes to HR Scorecard but to the organisation as well. The reader will also be clear in how

the empirical judgments are made through the illustrations given for the calculation of each

KRA. The ratings are given monthly & at the end of the year are averaged out with the

number of months.

5.1.7 KRAS OF TALENT ACQUISITION SCORECARD 2014-15

In Magma, the TAS is based on four KRAs known as (TA Recruiters KRA) listed below-

1. Fill rate – The number of candidates employed against the number of vacancies

created in the organisation & hence the number of profiles closed.

2. Turn Around Time (TAT) – The time allotted for completing any task. This time

limit is decided by the higher management of the organisation.

3. Compliance – It refers to all the documents & company formalities which are

necessary to be produced at the time of offer of employment which if failed will not

be considered for the job.

4. Qualitative – It refers to the degree of a talent of a candidate hired for a job. It

includes several attributes of a candidate like performance, tenure of service,

behaviour with colleagues, stability.

Table 2: KRAs & THE RESPECTIVE ASSIGNED WEIGHTAGES

S. No. Parameters Weightage (%)

1 Fill Rate 35

2 Compliance 35

3 TAT 20

4 Qualitative 10

The above table shows the parameters or KRAs for TAS which determine the criteria for

judgment of performance.

Table 3: RATING MODEL

Ratings Abbreviated Rating Score

FEE Far Exceed Expectation 5

EE Exceed Expectation 4

ME Meet Expectation 3

BE Below Expectation 2

FBE Far Below Expectation 1

The above table shows that what will be the ratings given to the Talent Acquisition department

for each KRA. If the target achieved is par excellence then rating of FEE is given, if the target

[27]

achieved a little excess then rating of EE is given, if the target is equal to the marks set then

rating of ME is given, if the target achieved is little less than the set marks then rating of BE is

given & if the difference between the target achieved & the set marks is quite large then rating of

FBE is given.

5.1.8 CALCULATION OF KRAs & THEIR EVALUATION CRITERIA

1) EVALUATION OF FILL RATE

Formula for calculation of Fill Rate

*TAT due positions = TAT due positions of previous month + TAT due positions falling

in the present month

Illustration 1: for calculation of Fill Rate (%)

Number of employees on-boarded in December = 16

Number of vacancies not filled in previous month (November) or (TAT due of previous

month) = 3

Number of vacancies to be filled in December or (TAT due falling in the present

month) = 17

TAT due positions = 3 + 17 = 20

Fill Rate (%) = (16 / 20) × 100

= 80 %

Hence, as per table 4, the FRRS (Fill Rate Rating Score) for December will be = 2 as

the fill rate percentage is 80% which falls in the fourth slab as per the table 4 given below.

Table 4: SLABS FOR FILL RATE

Fill Rate percentage Fill Rate Rating Score(FRRS)

˃=100 % 5

95% - 99% 4

90 % - 94 % 3

80 % - 89% 2

˂ 80 % 1

Fill Rate % = (No. of on-boarding ÷ TAT Due positions*) × 100

[28]

The above table shows the percentage of fill rate with their corresponding rating scores. Based

on the target achieved the scores are awarded which are then averaged at the end of the year.

Illustration 2: for calculating Fill Rate Rating

Jan Feb Mar Apr May Jun

Fill Rate (%) 90 120 80 95 125 93

Fill Rate Achievement till June also known as [Year to Date (YTD) Achievement]

= (90+120+80+95+125+93)/ (Number of months i.e. 6)

= 100.50 %

Hence, as per table 4, YTD Fill Rate Rating Score (FRRS) will be = 5

Hence, as per table 3 an overall rating of FEE is given for the period of six months.

2) EVALUATION OF TAT

Formula for the calculation of TAT

Table 5: SLABS FOR TAT

TAT percentage TAT Rating Score( TRS)

˃= 85 % 5

80 % - 84 % 4

70 % - 79 % 3

60 % - 69 % 2

˂ 60 % 1

The above table shows the percentage of TAT which is met by the Talent Acquisition

department & their corresponding scores which are averaged at the end of the year by the total

number of months.

Illustration 3: for TAT

TAT = (TAT due of previous month + TAT due falling in the present month)

[29]

Case 1:

If the profiles to be closed in the month of December = 17

Number of profiles closed in December (successful on-boarding) = 15

TAT (%) = (15 / 17) × 100

= 88.23 %

As per table 5, the TRS for December will be = 5

Hence, as per table 3, the rating of BE will be given to the concerned HR for December.

Case 2:

Number of profiles closed in December (successful on-boarding) = 17

TAT (%) = (17 /17) × 100

= 100 %

As per table 5, the TMRS for December will be = 5

Hence, as per table 3, the rating of ME will be given to the concerned HR for December.

Case 3:

Number of profiles closed in December = 19

TAT % = (19 / 17) ×100

= 111.76 %

As per table 5, the TRS for December will be = 5

Hence, as per table 3, the rating of FEE will be given to the concerned HR for December.

3) EVALUATION OF QUALITY OF HIRING

Quality Hiring has no such formula for calculation but is maintained & judged on the basis of

KRAs & Rating scales listed in table 6 & table 7 respectively.

Table 6: CRITERIA FOR QUALITY MEASUREMENT

Parameters Rating Scale Number of escalations/appreciations

(from line only )

(+1,0,-1)

Non-base location/ Responsibility handled (+1,0,-1)

Pro-active communication/Action taken (+1,0,-1)

People Management(not applicable to SBUHR) (+1,0,-1)

The above table shows the KRAs like the promotions done from the line level, managed

responsibility other than their own assigned tasks, actions taken apart from the routine work &

how well managed the people or employees working under one’s span of control.

[30]

Table 7: RATINGS OF QUALITY HIRING

Rating Scale Rating Score 2 & more 5

1 4

0 3

-1 2

-2 & less 1

The above table derives its value from table 6.

4) EVALUATION OF COMPLIANCE

Compliance remains a very important & integral part of talent acquisition. Certain rules laid

down by the organisation are to be followed strictly while hiring.

Table 8: SLABS FOR COMPLIANCE RATING

Compliance Failure( per month) Compliance Rating Score(CRS)

0 – 1 5

2 – 3 4

4 – 5 3

6 – 7 2

8 & above 1

The above table shows the slabs for how many times the talent acquisition department failed to

adhere to the compliance policies as laid down by the organisation.

[31]

Talent Acquisition Scorecard based on the below listed KRAs their corresponding KPIs and the

weightages assigned gives the overall result about the performance of talent acquisition

department of various branches of Magma.

Table 9: TABULATED KRAs & KPIs WITH THEIR WEIGHTAGES

The above table shows the KRAs, KPIs and the weightages of Talent Acquisition Scorecard

2014-15 of Magma Fincorp Ltd.

S. No. KRA KPI Weightage

1 Fill Rate 1)Number of profiles closed

2)Number of profiles due

3)Number of new profiles introduced & filled

35 %

2 Compliance 1)Letter of experience

2)Identity verification documents

3)Proof of leaving the former company

35 %

3 TAT 1)Number of profiles closed within time

2)Fraudulent cases resolved within time

3)Regional level transitions

20 %

4 Qualitative 1)Number of promotions

2)How many times handled different jobs

10 %

5.1.9 TALENT ACQUISITION SCORECARD CRITERIA

2014-15

[32]

The table below shows the exact design of Talent Acquisition Scoring Criteria of Magma.

Fig 10: COMBINED RATING SCORES OF KRAs

Fill Rate Score

˃=100% 5

95-99% 4

90-94% 3

80-89% 2

˂80% 1

The above tables for different KRAs are used while calculation of combined rating scores.

Compliance Failure Score

0-1 5

2-3 4

4-5 3

6-7 2

8 & above 1

Qualitative Score

2 & more 5

1 4

0 3

-1 2

-2 & less 1

TAT Score

˃=85% 5

80-84% 4

70-79% 3

60-69% 2

˂60% 1

5.1.10 TAS SCORING GRID 2014-15

[33]

5.1.11 Formula for calculation of Cumulative or Combined Rating

Score(CRS)

Illustration 4:

FRRS (Fill Rate Rating Score) = 2

FRW (Fill Rate Weightage) = 35

CRS (Compliance Rating Score) = 5

CW (Compliance Weightage) = 35

TRS (TAT Rating Score) = 4

TW (TAT Weightage) = 20

QRS (Qualitative Rating Score) = 4

QW (Qualitative Weightage) = 10

Cumulative Rating Score = (2 *35) + (5 *35) + (4*20) + (4*10)

= 365 / 5

= 73 %

In the above way the Combined Rating Score of talent acquisition department for various

branches of Magma is calculated. On the basis of percentage calculated as 73% in

illustration 4 the performance is judged and the various branches are then ranked.

Cumulative Rating Score = Fill Rate Rating Score (FRRS) ×Fill Rate Weightage (FRW) +

Compliance Rating Score (CRS) ×Compliance Weightage (CW) + TAT Rating Score (TRS) ×

TAT Weightage (TW) + Qualitative Rating Score (QRS) ×Qualitative Weightage (QW)

[34]

5.2 BUSINESS HR SCORECARD (BHRS) 2014-15

5.2.1 INTRODUCTION

In Magma, the BHRS rests on eight KRAs or Key HR Deliverables listed below

1.Induction & On-boarding- Induction is the welcoming of the new employees to make the

new employee feel at home& generate in him a feeling of belongingness to the organisation. It is

the fusion of organisational & personal goals of the new employee. It can be viewed as the

socialisation process. In Magma, an informal induction program is carried out by immediate

supervisor.

After the induction program is over the employee is given a specific job in the company. This is

called on-boarding or placement. With changing times we are entering have a whistle blower .

In Magma, the BHRS rests on nine KRAs or Key HR Deliverables listed below

1. Induction & On-boarding- Induction is the welcoming of the new employees to make the

new employee feel at home& generate in him a feeling of belongingness to the organisation. It is

the fusion of organisational & personal goals of the new employee. It can be viewed as the

socialisation process. In Magma, an informal induction program is carried out by immediate

supervisor.

After the induction program is over the employee is given a specific job in the company. This is

called on-boarding or placement. With changing times we are entering the age when applicants

must be considered for several jobs rather than one. In Magma, the placement of the new

employee is done through Assessment-Classification Model & Employee Placement.

2. Regional Leadership Team (Content & Quality) RLT(C&Q) and RLT-TAT( Turn

Around time)- It is a team of Departmental Heads & State Heads of HR which meet in every

month to discuss business issues & problems being faced by the organisation. In Magma, this

team is known as RLT Forum. They discuss business agendas trying to come up with solutions &

innovations. They then send the reports of their meet to the Head Office in the format as laid

down by the management. The number of times the meeting is held & on the basis of the quality

& format of report the HR managers are evaluated.

3. Branch Visits (BV) - It refers to the number of branches visited by the HR managers in their

span of control. In Magma, atleast three branches must be visited in a month to be rated as 100.

This visit is totally an HR Audit.

4. Impressions received (Impr.)- In Magma, impressions received means the feedback/

responses received after the new employees have completed their one month on job. It is a kind

of Follow up interviews.

5. Performance Improvement Plan (PIP) Tracker+ Confirmations (Conf.) pending+ F&F

(Full & Final) Pending- In Magma, PIP is a check on those employees whose performance is

[35]

less than fifty percent. Such employees are checked & are asked to improve on the performance

scale else they will be laid off. This PIP is done after every three months. Confirmations refer to

the number of employees who have been a tiro in the organisation but have successfully received

the confirmation from the organisation for their job. The probation period in Magma for all

employees is six months except for management trainees which is 1 year. F&F refers to the

formalities which are to be completed by the employees & the company itself.

6. Attrition- It refers to the tension between employees or the employee & administration. In

Magma, the rate of attrition is measured by the number of employees leaving the organisation

over a period of time.

7. Retention- It refers to the process of retaining the talent in the company. In Magma, the

talented employees are tried to stay back in the organisation either by understanding their

problems, increasing pay, giving a higher span of control etc. Even the low performing

employees are retained on the request of the employee by demotion. It is done rarely.

8. Employee Engagement- It refers to the methods & techniques adopted for rewarding good

employees for their better performance. These engagement activities help in motivation of

employees towards their work & the organisation. In Magma, Rendezvous is a popular

engagement activity, apart from many forums or interactive sessions with senior leaders.

9. Sensing & Fraud Control ( Staff Governance/Disciplinary issues)- Frauds either by the

employees or by the customers both are a great harm to the company’s financial performance &

disrupts the goodwill of the company as well. In Magma, an eye is kept over fraudulent

activities & if detected actions are implemented through proper channel .For this purpose they

[36]

The table below shows the exact design of Business HR Scorecard (BHRS) of Magma for 2014-

15 listing the KRAs, KPIs and the allocated weights.

Table 9: TABULATED KRAs & KPIs OF BHRS

In Magma, the judgement of Business HR scorecard is guided by the below KRAs (Key

Result Areas) & their respective KPIs (Key Performance Indicators) in accordance to the

Weightages assigned.

S.No. KRA KPI Weight

1 Induction & On-boarding Averaged Feedback Score given by the Trainees on a 5 point

Rating Scale

20

2 RLT Quality of issues discussed & Reports

10

3 Branch Visits Impressions Number of branches visited (min. 3 per month)

10

4 Impressions Feedback score for the region derived from “Impressions”

Analysis 10

5 PIP Tracker Confirmations completed

10

6 Attrition Monthly attrition score of the region based on a grid

Retention score which would reflect the actions taken post

resignations

10

7 Employee Engagement All Engagement Activities, Rendezvous, forum for interaction

with senior leaders etc. 10

8 Sensing & Fraud Control Detection & proper channelling of the issue

TAT of actions taken

Staff Governance(Staff GOV)

20

5.2.2 BHRS JUDGEMENT CRITERIA 2014-15

[37]

In Magma, the KRAs of Business HR Scorecard are divided into slabs depending on which they

are given scores. These scores signify the level of work done or target achieved. The following

KRAs with their respective scores are given below.

Induction Coverage Score

˃80 % 100

61%-80 % 75

31%-60 % 50

1%-30 % 30

0 % 0

Attrition Score

˃=60 % 25

˃=40% but ˂60% 50

˃=25% but ˂40% 75

˂25 % 100

Retention Score

Retention through changes 100

Retention through higher role 50

Retention through increased CTC 25

Demotion -25

No. of branches visited(per month) Score

0 0

1 25

2 50

3 100

5.2.3 BHRS SCORING GRID 2014-15

[38]

The following figure comprising of various tables of KRAs with their scores is used for the

calculation of combined rating score of HR department of any branch of Magma .

Fig 11: COMBINED RATING SCORES OF KRAs

RLT-Content & Quality of Report Score

Covers all agendas & in format 100

In previous format 50

No format 0

RLT – TAT Score

Within same month 100

Within 5th

of next month 75

Within 10th

of next month 50

Within 15th

of next month 25

After 15th

of next month 0

Impressions- Response Received Score

˃90% 100

75%-90% 70

60%- 76% 40

˂60% 0

Confirmations Pending Score

0%-19% 100

20%-29% 80

30%-39% 60

40%-49% 40

50%-59% 20

˃=60% 0

[39]

Since Magma operates in 15 states & a Union Territory, thus it prepares its HR Scorecard

Region-wise for better comparison of its branches spread all over India.

Table 12: REGION WISE HR RANKING

Cont…

S.No. Region Induction RLT-content

& quality of

report

RLT RLT

(TAT) (Avg)

(i+ii)/2

BV Confirm. Impr. Engagement

I i ii II III IV V VI

1 Bihar 100 100 100 100 100 100 40 80

2 Chattisgarh 50 50 100 75 100 100 100 90

3 NCR 50 0 100 50 58 100 100 85

4 Nagpur 100 100 100 100 100 40 100 90

5 Karnataka 100 100 75 88 100 100 100 85

6 W.B 100 50 75 63 100 0 70 85

7 Haryana 100 0 25 13 100 60 70 90

8 Punjab 50 0 50 25 50 100 100 85

9 U.P 100 0 100 50 100 40 0 80

10 Kerala 75 100 75 88 100 100 70 85

11 A.P 75 50 100 75 58 40 40 85

12 Jabalpur 50 100 100 100 33 80 0 80

13 Indore 50 100 75 88 67 60 0 90

14 T.N 30 0 50 25 100 80 100 95

15 Orissa 50 50 50 50 33 20 0 80

16 Gujarat 30 50 100 75 75 40 0 80

17 Rajasthan 75 50 100 75 100 0 0 85

18 Maharashtra 50 50 75 63 83 0 0 85

5.2.4 REGIONAL BHRS 2014-15(Q III )

[40]

*Note- All the marks are given out of 100.

The above table shows data which was collected from various branches

located in 18 locations for (Jan-Feb-Mar) 2014-15

S.No. Region Attrition

Retention Staff GOV Average

Score

Current

Rank

Previous Rank

VII VIII IX (I+II+III+IV+

V+VI+VII+

VIII+IX)/9

Jan+ Feb+

March

(2014-15)

Oct+ Nov+

Dec

(2013-14)

1 Bihar 50 100 100 86 2 8

2 Chattisgarh 75 50 100 82 4 12

3 NCR 100 50 100 77 6 17

4 Nagpur 100 25 0 73 10 7

5 Karnataka 50 50 50 80 5 1

6 W.B 100 50 100 76 7 13

7 Haryana 25 50 50 62 12 2

8 Punjab 100 100 100 88 1 13

9 U.P 25 100 100 74 9 15

10 Kerala 100 100 50 85 3 11

11 A.P 100 25 100 75 8 6

12 Jabalpur 100 25 100 63 11 9

13 Indore 50 25 50 53 16 5

14 T.N 25 50 0 55 15 4

15 Orissa 75 25 88 47 17 3

16 Gujarat 50 50 100 56 14 16

17 Rajasthan 100 50 0 58 13 10

18 Maharashtra 50 50 0 42 18 18

[41]

CHAPTER 6: GRAPHICAL REPRESENTATION OF BHRS (JAN-FEB-

MAR) 2014-15

In this chapter the reader will witness a statistical view of data collected for different KRAs of

Business HR Scorecard 2014-15. The data represented in table 12 is shown graphically to develop a

better understanding of scores earned by different branches of Magma.

INDUCTION:

Graph 1(a): REGIONAL SCORES FOR INDUCTION COVERAGE

Graph 1(b): ZONAL SCORES FOR INDUCTION COVERAGE

0

20

40

60

80

100

Stat

e 1

Stat

e 2

Stat

e 3

Stat

e 4

Stat

e 5

Stat

e 6

Stat

e 7

Stat

e 8

Stat

e 9

Stat

e 1

0

Stat

e 1

1

Stat

e 1

2

Stat

e 1

3

Stat

e 1

4

Stat

e 1

5

Stat

e 1

6

Stat

e 1

7

Stat

e 1

8

100

50 50

100 100 100 100

50

100

75 75

50 50

30

50

30

75

50

SCO

RES

OU

T O

F 1

00

REGIONS

0

20

40

60

80

100

East Total West Total North Total South Total

83

55

75 70

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

[42]

Graph 1I: REGIONAL PERCENTAGE OF INDUCTION

Pie Chart 1(d): AVERAGE ZONAL PERCENTAGE OF INDUCTION

90%

56% 56%

90% 90% 90% 90%

56%

90%

78% 78%

56% 56%

29%

56%

29%

78%

56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

State

1

State

2

State

3

State

4

State

5

State

6

State

7

State

8

State

9

State

10

State

11

State

12

State

13

State

14

State

15

State

16

State

17

State

18

% In

du

ctio

n in

3 m

on

ths

Regions

79%

57% 74%

69%

OVERALL INDUCTION COVERAGE IS 70 %

East Total

West Total

North Total

South Total

[43]

BRANCH VISITS :

Graph 2(a): REGIONAL SCORES FOR BRANCH VISITS

Graph 2(b): ZONAL SCORES FOR BRANCH VISITS BETWEEN (JAN-FEB-MAR 2014-15)

100 100

58

100 100 100 100

50

100 100

58

33

67

100

33

75

100

83

0

20

40

60

80

100

120

SCO

RES

OU

T O

F 1

00

REGIONS

0

10

20

30

40

50

60

70

80

90

East Total West Total North Total South Total

78

60

82 90

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

PAN INDIA BRANCH VISITS IS 78.

[44]

ACTUAL FIGURES FOR BRANCH VISITS BETWEEN

(JAN-FEB-MAR 2014-15)

Table 11: AN INSIDER ON SCORES OF BRANCH VISITS FOR (JAN-FEB- MAR 2014-15)

The above table shows the number of branches visited by the HR department in a

month as a part of HR Function. Graph 2(a) & 2(b) draws data from this table.

Region Branch

visits in

Jan’15

Corresponding

(Corr.) Scores

for Jan’15

Branch

visits in

Feb’15

Corr.

Scores for

Feb’15

Branch

visited

Mar’15

Corr.

Scores for

Mar’15

Avg. Scores

of Branch

Visits for

(QIII)

(I+II+III/3)

I II III

EAST

Bihar 3 100 6 100 6 100 100

W.B 4 100 4 100 4 100 100

Orissa 2 50 0 0 2 50 33

WEST

Jabalpur 2 50 1 25 1 25 33

Indore 0 0 3 100 3 100 67

Mumbai 3 100 3 100 2 50 83

Nagpur 3 100 4 100 3 100 100

Gujarat 1 25 3 100 5 100 75

Chattisgarh 3 100 3 100 3 100 100

NORTH

Delhi 1 25 2 50 3 100 58

U.P 3 100 3 100 3 100 100

Haryana 3 100 3 100 4 100 100

Punjab 0 25 3 100 2 50 58

Rajasthan 3 100 3 100 3 100 100

SOUTH

T.N 4 100 4 100 5 100 100

Karnataka 3 100 3 100 3 100 100

Kerala 3 100 4 100 3 100 100

A.P 2 50 1 25 3 100 58

[45]

RLT-Content & Quality of report(C&Q)

Graph 3(a): AVERAGE ZONAL SCORES FOR RLT(C&Q)

RLT-TAT

Graph 3(b): AVERAGE ZONAL SCORES FOR RLT-TAT.

0

20

40

60

80

East Total West Total North Total South Total

67 75

10

50

AV

ERA

GE

SCO

RES

ZONES

OVERALL COMPLIANCE WITH CONTENT & QUALITY OF REPORT IS 51.

0

10

20

30

40

50

60

70

80

90

100

East Total West Total North Total South Total

75

92

75 81

AV

ERA

GE

SCO

RES

ZONES

OVERALL RLT-TAT COMPLIANCE IS 81.

[46]

PIP TRACKER/CONFORMATIONS PENDING

Graph 4(a): REGIONAL SCORES FOR CONFIRMATIONS PENDING

Graph 4(b): AVERAGE ZONAL SCORES FOR CONFIRMATIONS PENDING

100 100 100

40

100

0

60

100

40

100

40

0 0

100

0 0 0 0 0

20

40

60

80

100

120

SCO

RES

OU

T O

F 1

00

REGIONS

0

10

20

30

40

50

60

70

80

90

East Total West Total North Total South Total

57

23

60

85

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

OVERALL SCORE IS 56.

[47]

PIP TRACKER/CONFIRMATIONS PENDING

Graph 4(C): REGIONAL PERCENTAGE OF CONFIRMATIONS PENDING

Graph 4(d): ZONAL AVERAGE PERCENTAGE OF CONFIRMATIONS PENDING

18% 19% 17%

45%

19%

70%

33%

16%

36%

19%

34%

73% 69%

15%

79% 80%

66%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% O

F C

ON

FIR

MA

TIO

NS

PEN

DIN

G

REGIONS

0%

10%

20%

30%

40%

50%

60%

East Total West Total North Total South Total

56% 60%

34%

22%

AV

ERA

GE

% C

ON

FIR

MA

TIO

NS

PEN

DIN

G

ZONES

OVERALL PIP COMPLIANCE IS 43%.

[48]

IMPRESSIONS RECEIVED

Graph 5(a): REGIONAL SCORES FOR IMPRESSIONS RECEIVED

Graph 5(b): AVERAGE ZONAL SCORES FOR IMPRESSIONS RECEIVED

Cont…

40

100 100 100 100

70 70

100

0

70

40

0 0

100

0 0 0 0 0

20

40

60

80

100

120

SCO

RES

OU

T O

F 1

00

REGIONS

0

10

20

30

40

50

60

70

80

East Total West Total North Total South Total

37 33

54

78

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

OVERALL IMPRESSIONS RECEIVED IS 51.

[49]

IMPRESSIONS RECEIVED

Graph 5(C): REGIONAL PERCENTAGE OF IMPRESSIONS RECEIVED

Graph 5(d): ZONAL AVERAGE PERCENTAGE OF IMPRESSIONS RECEIVED

60%

100% 100% 100% 100%

89%

80%

100%

50%

80%

69%

17%

0%

100%

10%

43% 40%

14%

0%

20%

40%

60%

80%

100%

120%

% IM

PR

ESSI

ON

S R

ECEI

VED

REGIONS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

East Total West Total North Total South Total

53% 46%

74%

84%

AV

ERA

GE

% IM

PR

ESSI

ON

S

ZONES

OVERALL IMPRESSIONS RECEIVED IS 65%.

[50]

ENGAGEMENT

Graph 6(a): REGIONAL SCORES OF ENGAGEMENT

Graph 6(b): ZONAL AVERAGE SCORES FOR EMPLOYEE ENGAGEMENT

70

75

80

85

90

95

80

90

85

90

85 85

90

85

80

85 85

80

90

95

80 80

85 85

SCO

RES

OU

T O

F 1

00

REGIONS

79

80

81

82

83

84

85

86

87

88

East Total West Total North Total South Total

82

86

85

88

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

OVERALL EMPLOYEE ENGAGEMENT IS 85.

[51]

ATTRITION

Graph 7(a): REGIONAL PERCENTAGE FOR ENCOUNTERED ATTRITION

Graph 7(b): ZONAL PERCENTAGE FOR ATTRITION

0%

10%

20%

30%

40%

50%

60%

70%

80%

44%

36%

16% 12%

40%

16%

76%

20%

72%

24%

14%

20%

40%

72%

28%

40%

24%

44%

% A

TTR

ITIO

N

REGIONS

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

East Total West Total North Total South Total

29% 32%

42%

38%

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

OVERALL ATTRITION IS 35 %.

[52]

ATTRITION

Graph 7(C): REGIONAL SCORES OF ATTRITION

Graph 7(d): AVERAGE ZONAL PERCENTAGE OF ATTRITION

0

10

20

30

40

50

60

70

80

90

100

50

75

100 100

50

100

25

100

25

100 100 100

50

25

75

50

100

50

SCO

RES

OU

T O

F 1

00

REGIONS

0

10

20

30

40

50

60

70

80

East Total West Total North Total South Total

75 71

60

69

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

OVERALL ATTRITION SCORE IS 69.

[53]

NUMERICS OF ATTRITION ON DIFFERENT GROUNDS

(JAN-FEB-MAR 2014-15)

Table 12: HIGHLIGHTS OF SCORES FOR ATTRITION

Regions Voluntary

Resignations

Termination Total

Attrition

(I+II)

Manpower

(approx.)

Attrition %

(III/IV)×

100

Annualised

Attrition %

(V×4)

Scores

as per

slabs of

attrition

I II III IV V VI

EAST

Bihar 56 4 60 536 11% 44% 50

W.B 38 1 39 1007 4% 16% 100

Orissa 21 0 21 318 7% 28% 75

WEST

Jabalpur 39 0 39 722 5% 20% 100

Indore 40 0 40 414 10% 40% 50

Mumbai 45 2 47 434 11% 44% 50

Nagpur 26 1 27 790 3% 12% 100

Gujarat 26 0 26 252 10% 40% 50

Chattisgarh 60 0 60 650 9% 36% 75

NORTH

Delhi 20 1 21 560 4% 16% 100

U.P 63 0 63 353 18% 72% 25

Haryana 84 0 84 446 19% 76% 25

Punjab 20 1 21 449 5% 20% 100

Rajasthan 27 0 27 478 6% 24% 100

SOUTH

T.N 73 0 73 410 18% 72% 25

Karnataka 32 2 34 354 10% 40% 50

Kerala 43 0 43 710 6% 24% 100

A.P 29 1 30 702 4% 14% 100

[54]

RETENTION

Graph 8(a): REGIONAL SCORES FOR EMPLOYEE RETENTION

Graph 8(b): ZONAL SCORES FOR SUCCESSFUL EMPLOYEE RETENTION

-40

-20

0

20

40

60

80

100100

50 50

25

50 50 50

100 100 100

25 25 25

-25

25

50 50 50

SCO

RES

OU

T O

F 1

00

REGIONS

0

10

20

30

40

50

60

70

East Total West Total North Total South Total

50

67 70

38

AV

ERA

GE

SCO

RE

S

ZONES

OVERALL EMPLOYEE RETENTION IS 63.

[55]

AN OVERVIEW OF EMPLOYEE RETENTION THROUGH DIFFERENT MEANS

(JAN-FEB-MARCH 2014-15)

Regions Retention through no

change in role/CTC

Retention by

giving higher

role

Retention by

increasing CTC

Retention through

demotion

Total

EAST 100 50 25 0 100+50+25=175

Bihar 100

W.B 50

Orissa 25

WEST 150 75 0 150+75=225

Jabalpur 25

Indore 25

Mumbai 50

Nagpur 25

Gujarat 50

Chattisgarh 50

NORTH 200 150 0 0 200+150=350

Delhi 50

U.P 100

Haryana 50

Punjab 100

Rajasthan 50

SOUTH 100 50 25 -25 100+50+25-25=150

T.N -25

Karnataka 50

Kerala 100

A.P 25

Table 13: AN INSIDER ON ZONAL SCORES FOR EMPLOYEE RETENTION

[56]

STAFF GOVERNANCE

Graph 9(a): SCORES FOR STAFF GOVERNANCE

Graph 9(b): ZONAL SCORES FOR STAFF GOVERNANCE

0

20

40

60

80

100100 100 100

0

50

100

50

100 100

50

100 100

50

0

88

100

0 0

SCO

RES

OU

T O

F 1

00

REGIONS

68

68.5

69

69.5

70

70.5

71

East Total West Total North Total South Total

71 71

70

69

AV

ERA

GE

SCO

RES

OU

T O

F 1

00

ZONES

OVERALL SCORE FOR STAFF GOVERNANCE IS 70.

[57]

CHAPTER 7: JOURNEY OF DIFFERENT KRAs THROUGH 2009-2014

In this chapter the reader will come across the performance of HR department from 2009-2014.

This chapter shows the graphical representation of KRAs according to regions that are east, west,

north & south. Each graph shows that on the particular KRA stated above each graph which

region or zone has scored how many marks which in turn gives an idea about their ranking for

that respective year.

INDUCTION:

Graph 10: COMPARISON OF ZONES ON INDUCTION PARAMETER

BRANCH VISITS:

Graph 11: COMPARISON OF ZONES ON NUMBER OF BRANCH VISIT PARAMETER

2009 2010 2011 2012 2013 2014

East 63 64 71 53 73 83

West 78 72 66 42 70 55

North 55 73 83 65 79 75

South 80 83 74 63 80 70

0

10

20

30

40

50

60

70

80

90

SCO

RES

OU

T O

F 1

00

2009 2010 2011 2012 2013 2014

East 67 100 90 33 50 78

West 100 75 50 67 33 60

North 75 96 100 33 50 82

South 100 75 58 75 33 90

0

20

40

60

80

100

120

SCO

RES

OU

T O

F 1

00

[58]

RLT(C&Q)

Graph 12: COMPARISON OF ZONES ON RLT(C&Q) PARAMETER

RLT-TAT

Graph 13: COMPARISON OF ZONES ON RLT-TAT PARAMETER

2009 2010 2011 2012 2013 2014

East 63 80 56 75 39 67

West 42 33 59 68 73 75

North 30 58 49 72 50 10

South 56 67 73 66 75 50

0

10

20

30

40

50

60

70

80

90

SCO

RES

OU

T O

F 1

00

2009 2010 2011 2012 2013 2014

East 90 87 89 76 63 75

West 93 45 68 55 87 92

North 63 56 49 58 66 75

South 98 72 60 59 65 81

0

20

40

60

80

100

120

SCO

RES

OU

T O

F 1

00

[59]

CONFIRMATIONS PENDING

Graph 14: COMPARISON OF ZONES ON CONFIRMATIONS PARAMETER

IMPRESSIONS RECEIVED

Graph 15: COMPARISON OF ZONES ON IMPRESSIONS RECEIVED PARAMETER

2009 2010 2011 2012 2013 2014

East 78 56 66 43 35 57

West 90 87 43 50 32 23

North 73 75 70 53 40 60

South 66 90 88 78 60 65

0

10

20

30

40

50

60

70

80

90

100

SCO

RES

OU

T O

F 1

00

2009 2010 2011 2012 2013 2014

East 78 85 43 32 20 37

West 87 56 44 82 33 33

North 70 43 42 32 66 54

South 54 30 89 54 60 78

0

10

20

30

40

50

60

70

80

90

100

SCO

RES

OU

T O

F 1

00

[60]

EMPLOYEE ENGAGEMENT

Graph 16: COMPARISON OF ZONES ON ENGAGEMENT PARAMETER

EMPLOYEE ATTRITION

Graph 17: COMPARISON OF ZONES ON ATTRITION PARAMETER

2009 2010 2011 2012 2013 2014

East 56 58 87 79 50 82

West 56 87 88 83 88 86

North 90 86 75 76 81 85

South 66 72 75 67 79 88

0

10

20

30

40

50

60

70

80

90

100

SCO

RES

OU

T O

F 1

00

2009 2010 2011 2012 2013 2014

East 56 75 63 60 88 75

West 76 45 33 78 56 71

North 50 68 58 29 59 60

South 40 67 53 49 65 69

0

10

20

30

40

50

60

70

80

90

100

SCO

RES

OU

T O

F 1

00

[61]

EMPLOYEE RETENTION

Graph 18: COMPARISON OF ZONES ON RETENTION PARAMETER

STAFF GOVERNANCE

Graph 19: COMPARISON OF ZONES ON STAFF GOVERNANCE PARAMETER

2009 2010 2011 2012 2013 2014

East 19 87 76 78 43 50

West 34 45 32 29 87 67

North 88 33 56 23 75 70

South 54 50 60 75 45 38

010

2030

40

5060

7080

90

100

SCO

RES

OU

T O

F 1

00

2009 2010 2011 2012 2013 2014

East 59 63 45 65 56 71

West 37 58 80 77 87 71

North 54 49 84 66 59 60

South 80 73 68 32 58 69

0

10

20

30

40

50

60

70

80

90

100

SCO

RES

OU

T O

F 1

00

[62]

Magma also prepared its BHRS 2104-15 according to zones represented below.

Table 14: ZONAL HR RANKING

Cont…

The above table shows the Zonal ranking of Magma’s branches of two consecutive fiscal

sessions 2013-14 & 2014-15. This comparative data representation gives a better idea about

the performance of the company’s HR department.

KRAs

Zone Induction RLT

(C&Q)

RLT

TAT

BV Confirm. Impr. Engagement Attrition

I II III IV V VI VII VIII

East Total 83 67 75 78 57 37 82 83

West Total 55 75 92 60 23 33 86 71

North Total 75 10 75 82 60 54 85 75

South Total 70 50 81 90 85 78 88 75

KRAs

Zone

Retention Staff

Governance

Average Score

(I+II+III+IV+

V+VI+VII+

VIII+IX+X)/10

Current Rank

Jan+ Feb + March

(2014-15)

Previous Rank

Oct+ Nov +Dec

(2013-14)

IX X

East Total 50 77 69 Second Fourth

West Total 67 71 63 Fourth First

North Total 70 70 66 Third Second

South Total 38 69 72 First Third

7.1 BUSINESS HR SCORECARD-ZONE WISE 2014-15

[63]

7.2 MAGMA’S TWIN YEAR COMPARISON

Ups & downs of HR performance on grounds of different KRAs through two consecutive years.

The graph below borrows its data from table 14.

Graph 20: COMPARISON OF MAGMA’S HR PERFORMANCE ACROSS 2013 & 2014

0 10 20 30 40 50 60 70 80 90

Induction

Branch Visits

RLT(C&Q)

RLT-TAT

PIP Tracker

Impressions

Engagement

Attrition

Retention

Staff Governance

76

42

59

70

42

45

75

67

63

65

71

78

51

81

56

51

85

69

63

70

InductionBranchVisits

RLT(C&Q) RLT-TATPIP

TrackerImpressio

nsEngagem

entAttrition

Retention

StaffGoverna

nce

2014 71 78 51 81 56 51 85 69 63 70

2013 76 42 59 70 42 45 75 67 63 65

[64]

7.3 OUTCOME OF HR’S TOIL & EFFORT

Graph 21: PERFORMANCE OF MAGMA’S HR DEPARTMENT IN TWO YEARS

The above graph shows the performance of Magma’s HR department for two years.

60

68

10

20

30

40

50

60

70

2013-2014 2014-2015

[65]

CHAPTER 8: DATA ANALYSIS & FINDINGS

1. East zone is highest on induction KRA with a score of 83, followed by North with a score of

75 on a 100 point scale. Refer graph 1(a)

2. Overall induction for Magma’s HR department is 71 for 2014-15. Refer graph 1(b)

3. Overall induction score was 76 for FY 2013-14, which indicates that the current year has

shown a 5 point drop in the induction of employees/trainees. Refer graph 20

Inference: Thus, we can say that the HR department has proved inefficient on this Key HR

Deliverable, which is a matter of discussion as Induction is like a boon for a new employee

who perceives his new or first office as UFO & himself as an alien to other staff. To

overcome this dilemma & fear Magma’s management team must pull up the scores.

4. South zone has bagged first position in the class of Branch visit with a score of 90 followed

by North with 82 points. Refer graph 2(b) & Table 11

5. Combined Zonal HR efforts on BV, gives a score of 78. Refer graph 2(b)

6. In 2013-14, the BV score was 42 which show that Magma’s HR professionals have improved

considerably on this key HR deliverable. Refer graph 20.

Inference: Hence, we can say that the HR department has well calculated the significance of

Branch visits. This parameter ensures that an idea is aired among the area branches that they

are being observed & can be inspected anytime. Visiting branches & interacting with the

employees inculcates a feeling of belongingness & concern which ultimately motivates them

to work.

7. West Zone ranks highest on RLT(C&Q) KRA with a score of 75 followed by East with

67.Refer graph 3(a)

8. Overall compliance with RLT(C&Q) is 51. Refer graph 3(a)

9. The overall score of RLT(C&Q) for 2013-14 is 59 which implies a dip of 8 points for

Magma’s HR Department as compared to 2014-15.

Inference: The above results for RLT(C& Q) speak that the reports submitted by the

departmental heads & State heads do not meet the standards format or content & quality

have not submitted their reports of RLT forums/meetings either not in the proper format or in

in no format paying little heed to important business issues.

10. West Zone stands first in the queue of RLT-TAT with a score of 92 succeeded by South with

81.Refer graph 3(b)

11. Overall RLT-TAT compliance is 81.Refer graph 3(b)

INFERENCES DRAWN FROM THE

STUDY OF BHRS 2014-15

[66]

12. The overall RLT-TAT score is 70 for 2013-14 which calls for a good news for Magma as its

HR Professionals have put in their toil & effort to create a positive difference of 11 points.

Refer graph 20.

Inference: Therefore, from the above scores & a potential difference we can say that, HR

Professionals have worked actively & geared their pace in organising a regular RLT meeting

in order to discuss the current problems & work out a solution for them.

13. The average Zonal score for confirmations pending is highest for South Zone with 85 score

followed by North with 60.Refer graph 4(b)

14. The overall score of this KRA for FY 2014-15 is 56.Refer graph 4(b)

15. For FY 2013-14, confirmations pending scores 42 on a 100 point scoring grid. Thus, HR

department has quickly worked in settling F&F(Full & Final), in confirming the

appointments on hold & in closing many profiles. Refer graph 20

Inference: Steep rise in the scores of Confirmations suggest that the HR managers have

worked hard in ensuring that most of the employees recruited have completed their six

months of probation & thus have received confirmations from the company for their job. The

scores also indicate that all the document formalities of the employees who have left the

organisation have also been settled.

16. Impressions received in 2014-15 amounts to a score of 78, followed by North with 54.Refer

graph 5(b)

17. The overall impressions received is 51 for FY2014-15.Refer graph 5(b)

18. The overall impressions received for FY 2013-14 is 45 which is 6 points less than 2014-15.

Refer graph 20

Inference: This dip in points implies that the HR department have failed to confirm to

receive the impressions/responses/feedback of the employees recruited at & above AM

positions in time.

19. On Employee Engagement KRA South with a score of 88 is preceeded by West with 86.

Refer graph 6(b)

20. Overall successful Employee Engagement for 2014-15 is 85. Refer graph 6(b)

21. Total Employee Engagement score for FY 2013-14 is 75.Refer graph 20

Inference: Employee engagement is a step towards employee motivation. Continuous

increase in these scores is good for the performance of the company & Magma’s HR

managers have done this.

22. East Zone witnesses lowest Attrition & thus scores the highest points of 75 succeeded by

West with 71.Refer graph 7(d) & Table 12

23. Overall Attrition score is 69 for 2014-15.Refer graph 7(d)

24. Overall attrition for FY 2013-14 is 67. Refer graph 20

Inference: Attrition is not good for any organisation be it any sector. It negatively charges

the employees either towards their colleagues or towards the administration. This should be

kept as low as possible which Magma’s HR managers need to set a watchdog.

[67]

25. Score of Retention is highest for North Zone with a score of 70 on a 100 point scale while

West ranks second with 67 points. Refer graph 8(b) Table13

26. Overall Retention score is 63 for FY 2014-15.Refer graph 8(b)

27. Overall Retention score is 63 for FY 2013-14.Refer graph 20

Inference: The scores for retention are same for both the Fiscal years which indicates that

Magma’s HR department have been successful in retaining most of its human capital.

28. East & West share the first position with a score of 71 on Staff Governance KRA, with North

occupying the second position with 70 points. Refer graph 9(b)

29. Overall Staff Governance score is 70 for the FY 2014-15.Refer graph 9(b)

30. Overall Staff Governance score is 68 for the FY 2013-14.Refer graph 20

Inference: The decrease in the staff governance scores do not reveal a good message

regarding Magma’s HR department as they have failed to keep a check on fraudulent actions

& if detected proper actions have not been taken in time.

31. Overall performance of HR at Magma scored 68 for the FY 2014-15 as compared to that of

60 for 2013-14, which undoubtedly shows the improvement of HR Department. Though

there are some areas which require be focusing & taking care of to become one of the best

departments in the organisation.

[68]

5.3 BUSINESS HR GOALS (BHRG) 2015-16

5.3.1 INTRODUCTION

The HR management team at Magma introduced a new HR Scorecard in June 2015 for aligning

its HR function with the firm’s strategy. This scorecard is now being implemented in Magma.

Below is the list of HR Goals for 2015-16 or to say in previous terminologies used so far these

are the Key HR Deliverables or KRAs sent from top to bottom in Magma. These KRAs represent

the objectives which are to be targeted & achieved for the FY 2015-16. These KRAs are aligned

with the Magma’s strategy to achieve its new resolutions for the coming Fiscal year. The KRAs

for 2015-16 are given below which are common for every branch of Magma -

1. Quality Staffing

2. On-boarding Employees successfully-Induction & creating wow factor

3. Enabling performance- drive a positive performance culture

4. Developing talent for the future – build talent pipeline, retain good talent

5. Creating the right culture – Culture of pride & satisfaction

6. Manage wage costs

This year Magma has set up its KPIs separately for each of its organisational unit be it Head

Office HR, Zonal/Regional HR or State HR. This change is for good as now the work of HR

managers will be more focussed & KPI centered. After this makeover each HR manager at each

level will have a clear idea as to what their policies, procedures & strategies will lead to. This

new pattern of HR Deliverables shows the linkages between each unit & the effect of the same

on each other.

Though for a better understanding the KPIs of all the units have been shared but as my respected

trainer was the Senior HR Manager for UP which comes under the category of State HR, thus we

will be discussing in detail only the KPIs set up for State HR.

5.3.2 INTRODUCTION TO KRAS OF BHRG 2015-16

Quality Staffing: This KRA is similar to what was discussed under the heading of

qualitative KRA in Talent Acquisition Scorecard 2014-15. The HR department must fill

the positions in its branches with the right talent by giving due importance to quality &

not to quality hiring.

On-boarding employees successfully: This KRA is similar to the induction KRA

as discussed in the Business HR Scorecard 2014-15. The success of HR department is

counted by the victorious joining of a new employee. This on-boarding of new employee

can be done by the HR department through different strategies like it can be formal or

informal & Collective or individual.

[69]

Enabling Performance: The HR department must from time to time take steps to

motivate the employees towards their work by employing employee engagement

techniques like Rendezvous.

Developing talent for the future: Since in any organisation employee turnover is

major inevitable problem which one cannot mitigate so the HR department must always

keep updating & discovering new recruitment avenues. There must always be pool of

candidates with the HR department which can be made available to the company when

called for.

Creating the right culture: The HR department must ensure that it inculcates a

feeling of belongingness among employees & discourage the fraudulent activities.

Manage wage costs: The HR department must manage the costs & benefits

associated with it wisely so that it does not create overheads for the company.

5.3.3 DESIGN & DISCUSSION OF KPIs OF BHRG 2015-16

1. STAFFING THE ORGANISATION

Fig 13: KPIS FOR QUALITY STAFFING

Manpower Plan versus actual: What number of employees were planned by the organisation & what number were

actually recruited gives the difference between the two & shows the efficiency of HR department.

TAT: It is similar to the Turn Around Time as already discussed in the Talent Acquisition Scorecard.

Sourcing mix & Cost: What different methods of hiring are used and the cost associated with them.

•Manpower Plan versus Actual

•Yield

•Percentage of positions filled internally

•Cost of Hiring

•Audit Score

Head HR

•Manpower Plan versus Actual

•Yield

•Offer TAT

•Hiring Grid

•Audit Score

Zonal HR •Manpower Plan versus Actual

•TAT

•Sourcing mix & Cost

State HR

[70]

2. ONBOARDING

Fig 14: KPIs FOR SUCCESSFUL ON-BOARDING OF EMPLOYEES

Joining TAT: The time period given to employees for joining the organisation. The HR department must take care

that the new as well as the employees who are transferred internally must join within the given time.

On boarding rating: This rating is given on the basis of number of employees joining the organisation

successfully.

Feedback Score: After successful on boarding feedback must be collected from the new as well as the experienced

employees towards the induction or orientation programme.

3. ENABLING PERFORMANCE

Fig 15: KPIs FOR PERFORMANCE MANAGEMENT

•Induction coverage within TAT

•Onboarding Score

•Training Score/ Coverage

Head HR

•Joining TAT

•Yield on Joinings

•Induction delivery

•Induction feedback Score

Zonal HR •Joining TAT

•Onboarding Rating

•Feedback Score

State HR

•Performance management(Udaan/pinnacle/Zenith)

•KRA/KPI upload

•Annual PMS closure

Head HR

•Udaan Scheme Implementation

•PIP Compliance

•KPI upload TAT

•Annual PMS closure

Zonal HR

•High Performer

•Attrition

•PIP Compliance

State HR

[71]

High Performer: The HR department must identify employees who are high on performance

scale.

Attrition: To improve the performance of employees the HR department must reduce the

attrition.

PIP Compliance: The HR department must ensure that every employee fulfils the criteria of

performance and meet the standards.

4. DEVELOPING TALENT FOR THE FUTURE

Fig 16: KPIs FOR TALENT PIPELINE

Sourcing Mix: It refers to the number of options used by the HR department to acquire talent. In Magma, the

different sources of recruitment are career portal named jobrapido, consultants, reference hiring, walk-in.

5.CREATING THE RIGHT CULTURE

Fig 17: KPIs FOR DEVELOPING A RIGHT CULTURE

•Percentage positions filled internally(IJP)

•Retention of top talent

Head HR

•IJP closure

•ADC

•Spotting the right talent

Zonal HR

•Sourcing mix

State HR

•Engagement Score

•Pride & Belongingness

Head HR

•Engagement Score

•RLT Forums

•Reachout/Branch visits

Zonal HR

•Branch visit Score

State HR

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Fig 18: KPIS FOR DEVELOPING A RIGHT CULTURE

Branch visit score: Number of branches visited in a month by the HR department as a part of audit.

MSD Closure within TAT: It refers to the number of complaints seen & closed within the time set.

6.MANAGING COSTS

Fig 19: KPIs FOR COSTS MANAGEMENT

•Fraud control percentage reduction

•Grievance rate

•MSD Compliance

Head HR

•Fraud Control actions

•Grievance rate

•Actions implemented

Zonal HR

•MSD Closure percentage within TAT

State HR

•Wage Costs

Head HR

•Team delivery

•PIP Conception

•Compliance to hiring grid

•Yield

•Span

Zonal HR

•Plan versus Actual

•PIP Compliance

State HR

[73]

Fig 20: KPIs FOR COSTS MANAGEMENT

Fig 21: KPIs FOR COSTS MANAGEMENT

Costs associated with sourcing mix, engagement, attrition & manpower hiring must be

maintained.

• Recruitment

Costs

Head HR

•Team Delivery

•Yield

•Span

Zonal HR

• Plan versus Actual

• Sourcing mix

• Attrition

State HR

• Engagement effectiveness & Cost

Head HR

• Percentage participation

• Effectiveness

Zonal HR

• Event Calendar

State HR

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5.3.4 BHRG (2015-16) SCORING GRID CRITERIA

Magma for its financial year 2015-16 has made performance measurement signals under three

indicators listed below-

RED (Below Standard),

YELLOW (Marginal),

GREEN (Meets Standard)

These slabs can be decided by the management of the organisation as per its strategy &

calculations.

HR Budget Plan versus Actual ˃=90% closure of hiring mandates

Wage costs 100% adherence to hiring cost band

Recruitment Costs Plan versus Actual (Average % hike & average replacement hiring cost

upto national average)

SPANS –All verticals (100% compliance as per plan)

F&F Initiated & settled within TAT (˃=90%)

Confirmations pending (˂=20%)

Actions implemented on fraud governance cases within TAT

Attrition of top talent ˂=10%

Retention

Sales PIP% (upto national average)

MSD Query resolution within TAT (˃=90%)

Branch Visits (˃=3 per month)

Employee engagement

Induction coverage /Feedback Score (˃=90%)

KPI upload within TAT (˃=90%)

New initiatives

SCORECARD GREEN

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HR Budget Plan versus Actual (˃=75% but ˂90%) closure of hiring mandates

Wage costs(˃=75% but ˂90%) adherence to hiring cost band

Recruitment Costs Plan versus Actual (Average % hike & average replacement hiring cost

upto national average)

SPANS –All verticals (˃=75% but ˂90% compliance as per plan)

F&F Initiated & settled within TAT (˃=75% but ˂90%)

Confirmations pending (˂=40%)

Actions implemented on fraud governance cases within TAT

Attrition of top talent ˂=20%

Retention

Sales PIP% (upto national average)

MSD Query resolution within TAT (˃=75% but ˂90%)

Branch Visits (˂=2 per month)

Employee engagement

Induction coverage /Feedback Score (˃=75% but ˂90%)

KPI upload within TAT (˃=75% but ˂90%)

New initiatives

SCORECARD AMBER

[76]

HR Budget Plan versus Actual ˂75% closure of hiring mandates

Wage costs ˂75% adherence to hiring cost band

Recruitment Costs Plan versus Actual (Average % hike & average replacement hiring cost

upto national average)

SPANS –All verticals ˂75% compliance as per plan)

F&F Initiated & settled within TAT ˂75%

Confirmations pending (˂=60%)

Actions implemented on fraud governance cases within TAT

Attrition of top talent ˂=30%

Retention

Sales PIP% (upto national average)

MSD Query resolution within TAT ˂75%

Branch Visits (˂=1 per month)

Employee engagement

Induction coverage /Feedback Score ˂75%

KPI upload within TAT ˂75%

New initiatives

SCORECARD RED

[77]

CHAPTER 9: RECOMMENDATIONS

Below is a list of suggestions which Magma must implement in order to make its

HR Scorecard more robust & vital simultaneously gaining competitive

advantage over its competitors like:

1. Magma should separate its HR Doables form HR Deliverables.

2. To show HR Efficiency is “an Achilles’s heel” for HR managers but once proved gives

management a proof for its significance not as an overhead cost but as an important

supporting function in the organisation. HR Efficiency measures are an HR Doable. After

deciding HR Efficiency measures the architects of HR Scorecard must clearly demarcate

Strategic efficiency measures form core efficiency measures. Magma may include some of the

efficiency measures listed below.

i. Average employee tenure ( by performance level)

ii. Benefit costs as a percentage of payroll or revenue

iii. Benefit costs/Competitor’s benefit costs ratio

iv. Cost of HR related litigation

v. Cost per grievance

vi. HR expense per employee

vii. HR Expense to total expense ratio

viii. Selection Ratio

ix. Number of applicants per recruiting source (by quality)

x. Number of hires per recruiting source (by quality)

xi. Offer to acceptance ratio

xii. Total compensation expense per employee

xiii. Percentage of performance appraisals completed on time

xiv. Speed of salary action processing

xv. Total HR investment /earnings

xvi. Total HR investment/revenue

xvii. Turnover rate by job category & job performance

xviii. Percentage of employees whose pay is performance contingent

xix. Percentage of total salary at risk

xx. Firm salary/competitor salary ratio

xxi. Incentive

xxii. Incentive compensation differential

xxiii. Number of persons attending RLT Forums

xxiv. Cost of Branch visits

xxv. Money spent on training

xxvi. Wage bill to income ratio

xxvii. Wage bill to expenses ratio

xxviii. Wage bill to intermediation cost ratio

xxix. Marketing expense to volume of business

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xxx. Business per Employee

xxxi. Profit per employee

xxxii. As Magma, has mentioned ENGAGEMENT EFFECTIVENESS in its HR

Scorecard (2015-16) so it must measure employee engagement effectiveness by

Chi-square Test.

3. Some of the suggested performance drivers which Magma may incorporate in HR

Scorecard are:

i. Access to business information to facilitate decision making

ii. Adherence by the workforce to core values, such as cost consciousness

iii. Degree of financial literacy among employees

iv. Diversity of race & gender by job category

v. The ratio of HR employees to total employees

vi. Success rate of external hires

vii. Percentage of intern conversion to hires

viii. Percentage of repatriate retention after one year

ix. Performance of newly hired applicants

x. Trace reasons for Turnover

xi. Should place each turnover in the four distinct categories mentioned below:

xii. Should develop the technique of Benchmarking

xiii. Must calculate separation costs

xiv. Trace whether the separation was voluntary or involuntary

Undesirable Controllable (Average to high performing employees

leave,& the firm missed an opportunity to keep them.This is

"bad" turnover.

Desirable Controllable (Low performing employees leave, with

your assistance . This is "good" turnover.

Undesirable Uncontrollable (Average to high performing employees leave, but the firm had no control over the

situation. This type of turnover is unfortunate, but it is also

unavoidable.

Desirable uncontrollable (Low -performing employees leave by their

own choice. This is also "good" turnover; however , in this category

the firm was not aware of the employees' intentions or their

performance levels & thus had no control over the departuress.

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4. Some of the HPWS which Magma may employ are:

i. Can use the Becker-Huselid approach for calculating the economic value of high & low job

performer.

ii. Should develop an HR Alignment system to understand the financial impact of employee

performance.

iii. Must segregate the employees into percentiles according to their appraisal.

iv. Performance level can be indicated as toggle in their appraisal form as good, satisfactory &

unsatisfactory.

v. Difference must be calculated that how above an employee is making above his/her above

wages.

vi. Calculate how much the high performers have impact on firm performance for this we can

calculate the ratio of impact on firm’s performance to the high & low performers.

vii. Should identify potential costs & potential benefits for each new program & overall as well.

vii. Since Magma once used to give Gold Loans but now it has stopped so it must calculate

Transition Costs whenever it plans to shift from one business process to another.

Viii .Can calculate economic benefits of additional recruiting.

ix. Should calculate the above potential costs & potential benefits in their present value as most

of the HR investments are such that their profits are reaped in future.

x. Compare costs & benefits in point(ix) to determine the ROI.

xi. As Magma has mentioned NEW INITIATIVE in its latest HR Scorecard(2015-16), thus

before implementing any such innovation it should calculate the breakeven for each.

xi. Growth in skilled employees.

xii. Magma should try to calculate relative performance for each indicator by using

econometric technique.

5. Some suggestions on the HR Alignment aspect are :

i. It should take into account the problems & mistakes which are generally overlooked while

creating a Scorecard.

ii. Feedback collected by the Retailer employees of the company on customer needs, priorities,

expectation & loyalty.

iii. Percentage of employees receiving training

iv. Percentage of employees appraised

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v. Employee satisfaction

vi. Employee stability

vii. How many employees left & joined another organisation or the competitors at a better

designation & salary. This can be a part of learning & growth as experience with Magma made

him capable to get a better job

vii. Customer satisfaction

viii. Hours spent with customers

ix. Should increase the boundary of circulation of Scorecard within the organisation.

x. Through forums for interaction it must find out how far the personal goals of the employees

are aligned with the goals of the company, & accordingly calculate the number of interactive

sessions held & percentage of participation.

xi. Must conduct exit interviews & their number.

6. Magma should increase the level of literacy of its HR Managers in terms of Scorecard & the

terms used in it.

7. It must also motivate its HR Managers to go through the Scorecards of their competitors in the

industry to gain an insight on their own.

8. Magma may include from a variety of Scorecard software available.

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9.1 RECOMMENDED BALANCED HR SCORECARD 2015-16

Fig 22: BALANCED HR SCORECARD

BALANCED HR SCORECARD FOR MAGMA

FINANCIAL

Cost of hiring

recruitment costs

Profit per employee

Business per employee

Wage costs

Sourcing Cost

Team Yield

HR litigation costs

HR expense per employee

Compensation cost

CUSTOMER

MSD compliance

TAT

Grievance rate

INTERNAL BUSINESS PROCESS

Manpower planned Vs

Actual

Sourcing Mix

wage bill to total expenses ratio

Audit Score

Positions filled internally

Onboarding rating

KPI upload TAT

Fraud Actions

Branch visits

LEARNING & GROWTH

Expenditure on training of employees

Employee engagement

cost

Training Score/ Coverage

PIP Compliance

[82]

CHAPTER 10: CONCLUSION & LIMITATIONS

10.1 CONCLUSION

Designing a single Scorecard for any organisation is a very difficult task. Magma, being a

financial service organisation, design & implementation of the HR Scorecard, becomes not only

difficult but complicated as well. Still, it emerges to be useful all-inclusive tools, encompassing

various aspects of financial performance. It helps in understanding the complementarities among

various performance indicators for a service organisation & makes the strategy designing &

implementation process more efficient. With the financial reforms in full-swing & influx of

private sector & multinational finance enterprises into the economy, it is necessary for Magma to

adopt such system of performance measurement if they aim at designing business strategy that

ensures better performance in future. Since, Magma introduced the HR Scorecard one & a half

years back when most of the organisations have already gained experience in this domain, thus

it’s a high time to continuously improve its HR Scorecard & ensure that it is implemented at its

best by the employees of the company.

In addition, Magma may draft an Employee Scorecard as well as the HR Department deals with

the human capital of the organisation.

10.2 LIMITATIONS

The study was first of its kind done in the company. All the possible measures were taken

to study the project in-depth and minutely, but still the study is bounded by the following

limitations as mentioned here:

The terminology used in the subject was highly technical in nature.

Time constraint was a hindrance.

Confidentiality of management was the strongest hindrance to the collection of data &

scientific analysis of study.

The BHRG 2015-16 was not properly explained as it was newly introduced in the HR

department, thus only its design & superficial explanation was provided.

The exact strategy for each department was not disclosed by any employee.

The HR department is yet to understand the criticality of Balanced HR Scorecard.

[83]

APPENDIX

YTD (Year to Date) - It means total business or scores earned from previous date of calculation

till date when it is calculated.

FY- Financial or Fiscal year

IJP (Internal Job Posting) - It was a method used by the HR department of Magma for the

internal recruitment of candidates amongst its already working employees. The job is posted on

the company’s LAN (Local Area Network) & any person qualifying the eligibilities can apply.

PIP (Performance Improvement Plan) - This a technique practised at Magma to motivate the

employees who scored less in their appraisals by providing them training or organising forums.

On boarding- It means joining of employees after their orientation or induction programme.

TAT Due positions of previous month- It means the number of vacancies which were supposed

to be filled in a particular month prior to the current month still remain unfilled.

TAT Due positions falling in present month- It mean the number of vacancies which are to be

filled in the current month but still remain unfilled.

UFO- Unidentified Foreign Object

TAS- Talent Acquisition Scorecard

BHRS- Business HR Scorecard

BHRG- Business HR Goals

[84]

BIBLIOGRAPHY

1. www.magma.co.in

2. www.citehr.com

3. www.slideshare.com

4. www.workday.com

5. Becker Brian E, Huselid Mark A., Ulrich Dave, “The HR Scorecard- Linking people, strategy

and Performance” ,Harvard Business School Press, Boston, Massachusetts

6. Dr.Dave Sagar R, Dr.Dave Swati R, “Applying Balanced Scorecard in Indian Banking Sector:

An Empirical study of the State Bank of India” Pacific Business Review International, Volume 5

Issue 6(December 2012)

7. Kaplan R.S, Norton D.P (1992), “The Balanced Scorecard- measures that drive performance” ,

Harvard Business Review, P.71-79

8. Panicker Sunita, Seshadri Vinita, “Devising a Balanced Scorecard to determine Standard

Chartered Bank’s performance :A Case Study “ International Journal of Business Research &

Development “, Vol 2 No. 2, p.35-42 (2013)

9. Quinn Susan, “From reactive to proactive- High Impact strategic HR” Susan Quinn & Ventus

publishing Aps, 2011, p. 27,28,41-44

10. Mahapatro Bhusan Bibhuti, “Human Resource Management” New Age International(P)

Limited Punlishers, Chapter 4, p.62-78 ,Chapter 6, p.1118-123.

11. One can send any query related to the report on siddiquijaziba453@gmail.com