Performance Management and Organisational Excellenceold.nasscom.in/sites/default/files/upload/66137/Venkat_rane.pdfCopyright © Rane 34 Thank You. Title: PowerPoint Presentation Author:

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Performance Management

and

Organisational Excellence

R Venkatanarayanan

Vice President – HR

Rane Group

5 March 2010

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About Rane

Performance Management through TQM

Performance Appraisal and Development System (PADS) in Rane

PADS Process

Agenda

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Leading Auto component manufacturers

7 manufacturing companies and 24 locations

4 Group companies have won the coveted Deming Application

Prize

Group turnover about Rs.1500 crores

About Rane

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Leading Auto component manufacturers

7 manufacturing companies and 1 holding company

4 Group companies have won the coveted Deming Application

Prize

Group turnover about Rs.1500 crores

Locations

About Rane

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through

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Create

value for customers

Total

Employee

Involvement

Continuous Improvements

TQM

Essence of TQM

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Create Value for customers

Educate and involve

employees

Continuously improve processes

Actualize stakeholder expectations

TQM in Action

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PM is a holistic process with a life cycle of 12 months

Goal

setting

thru

catch

balling

Dynamic Engagement

Phase

Performance outcomes,

Review, feedback, Mid

course correction

2008-2009 2009-2010 2010-2011

Appraisal,

Developm

ental Plan,

Rewards

Goal

setting for

next cycle

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LevelsSteps

Social Conditions

Top Management

Functional Heads

Manager Feedback Documents

P

Mission / Vision

Mid & Long term plan

President’s Policy

Fn. Head’s Policy

Mgr’s Policy

Executive’s

Action Plan

Implementation/Evaluation/Action

Functional Head’s Diagnosis

President’s Review

Self-Examination of Policy & Action Plan

Review of President’s Policy

D

C

A

Mission & Vision

Mid & Long term plan

PD form-1

Form 2

Form 2

Form-3

Form-4

Form-5

Executive

Review Once in a month at plants & Corporate office

Policy Deployment Process

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Policy Deployment Process

PD – Target Setting

PD targets should be challenging or breakthrough targets. PD targets

usually strive for not less than 30% improvement

“Catch-balling” process

Communicates targets and measures across the company

Secures ownership / commitment to targets

Reflects reality of the Gemba and ensures feasibility


Ref.No VISION 2010-2013

A To remain market leader in India

B To become a Global player

C Environment friendly Technology

D Develop People Competence

HOW ?

1. To achieve sales of Rs.3000M

2. Exports should be 10% of revenues

3. New products and Customers to generate 10% of Sales revenues

each year

4. To achieve zero customer returns & rejection levels of y%

5. To achieve PBIT/Net Operating Assets of x%

GOALS

CO

RR

EL

AT

ION

S

- Strong Correlation

- Some Correlation

Linkage between Vision and Goals


Performance Assessment &

Development System

(PADS)


PADS Objectives

Evaluative Purposes

Compensation

Promotions

Rewards

Learning

Job rotation

Succession Planning

Developmental Purposes


Self AppraisalOne on One review

with the Manager

Manager’s forum

for

normalisation

Comp, growth and

Development

decisions

PADS Process

Final Rating

&

forward plans

Roll out Individual

Communication

• Training in PADS

• Building Process

Skills


PADS Process‘HERE AND NOW’

A tool guide for Appraisers

TAKE CHARGE

A tool guide forUsing feedback to jump start your performance

Process skills

Two way dialogue

Coaching

Giving and receiving feedback

Trust, credibility

Interpersonal

Performance support


Section B

Long term and Improvement Orientation

(Ability to go beyond the role and plan for the future,Develop new initiatives, Creative responses to changingdemands, Ability to look at the big picture, Internalcustomer orientation)

Section C

Competencies

(Leadership, Team Work, Self Development, Maturity,Managerial Skills, Communication Skills )

Convergence to TQM

How (Means)What? (Results)

Section A

Performance against Managing Points

• MPs Related Results

• Planning

• DRM practice

PADS - Salient Features


Long term improvements

Competencies

Developmental needs

Performance/

Results

PADS – Review Discussion


PADS - Self Assessment

Describe your performance against Managing Points

Describe your performance on Long Term and Improvement

Orientation

Describe your performance on the Competencies

Describe other significant contributions, if any

Rate your overall performance

Below Expectations Exceeded Expectations

Achieved Expectations Outstanding


Assess performance against MPs but besides results achieved

also consider quality of :

Planning (eg., Form 3)

DRM practice (gap analysis, quality of root cause identification,

effectiveness of counter measures)

PADS – Section A



S.No. Managing Points Metric Target Actuals % Achievement

Rating on

a 4 point

scale

a Plant CFI *

b Plant Profits

c Employee Cost

d Manufacturing Quality

e Employee Morale

Sub-total – Sec.A (a+b+c+d+e)

Multiply by weightage 2

Total – Section A / 40

Delivery (Plant) Head

* Commitment Fulfillment Index

Section A (40%)



S.No. Managing Points Metric Target Actuals % Achievement

Rating on

a 4 point

scale

a Plant CFI * % 90 88 98 3.5

b Plant Profits PBT% 16.6 16 96 3.5

c Employee Cost TEC / Sales% 16.7 17 98 3.5

d Manufacturing Quality Internal

Rejections %

1.80 2 90 2.5

e Employee Morale EOS Score % 80 78 98 3.5

Sub-total – Sec.A (a+b+c+d+e) 16.5

Multiply by weightage 2

Total – Section A 33 / 40

Delivery (Plant) Head

* Commitment Fulfillment Index


Section A (40%)


Section B

Score for maximum of 15 %

Assess at the end of the year holistically the Assessees:

Ability to go beyond the role and plan for the future

Develop new initiatives & breakthrough kaizens

Creative responses to changing demands of marketplace and customers

Ability to look at the big picture

Internal customer orientation

Long Term & Improvement Orientation


Section B

• Ability to go beyond the role and plan for the future

• Develop new initiatives & breakthrough kaizens

• Creative responses to changing demands of

marketplace and customers

• Ability to look at the big picture

• Internal customer orientation

Indicative Assessment Factors

3

a

Rating on a 4 point scaleS.

No.

11.25 / 15

3.75

Total – Section B

Multiply by weightage



Section B


Ability to look at the big picture

While negotiating productivity norms, looking at impact on other plants, industry

norms

In negotiating prices with customers, looking at overall portfolio of business with

customers, profitability, potential to enhance long term presence


Section C

Competencies

Score for maximum of :

45% for Senior management

25% for Middle and Junior management

Assess employee on 6 competencies as demonstrated in his / her

behaviour / performance

List of competencies considered

Leadership

Team Work

Self Development

Maturity

Managerial Skills

Communication Skills


Assess employee on the following Competencies as demonstrated in his / her behaviour /

performance.

2

2

Indicators for assessment

• Leads by example

• Coaches others to maximize potential

• Supports reportees’ personal and professional

development

• Effectively flexes leadership styles to suit situations

and people

• Provides Vision and Direction

• Motivates and guides team members; encourages new

ideas from others at all levels

• When goals are set can lead and realize targets

Rating on a 4 point

scale

Leadershipa

CompetenciesS.No.

Score (a)

Section C

Competencies


S.No. Competencies

b Teamwork Rating on a 4 point

scale


• Works well with superiors and peers

• Blends people into teams when needed

• Is able to put organizational goals above departmental

goals

3

3

c Self Development Rating on a 4 point

scale


• Is a continuous learner of hard & soft skills

• Brings to work situations new learnings

• Works actively to overcome / minimize weaknesses

3

3

Score (b)

Score (c)

Section C


performance.

Competencies


S.No. Competencies

d Maturity Rating on a 4 point scale


• Is self-aware; understands own emotions and how they

influence his / her behaviours

• Understands and accommodates different points of views

without compromising on major goals

• Effectively handles interpersonal relationships

3

3

e Managerial Skills Rating on a 4 point scale


• Thinks through goals and plans actions

• Allocates work, resources and authority for effective

accomplishment of goals

• Ensures adherence to plan through follow-ups

3

3

Score (d)

Score (e)

Section C


performance.

Competencies


S.No. Competencies

f Communication Skills Rating on a 4 point scale


• Expresses ideas, thoughts and feelings clearly and

precisely (verbal & written)

• Is a good listener

• Encourages open communication

• Is sensitive to non-verbal clues

• Responds to others promptly

• Makes presentations with impact and clarity

4

4Score (f)

Sub-total – Sec.C (a+b+c+d+e+f) 18

Multiply by weightage 1.875 *

Total – Section C 33.75 / 45

Add Totals of Section A & B 44.25 / 55

Grand Total (Sections A+B+C) 78 / 100

* 1.04 for SEs – Mgrs

Section C


performance.

Competencies


Section D

Critical Incidents (Record Critical Incidents with respect to overall

assessment)

Demonstrated extra-ordinary resilience and determination when there was a

quality crisis at MUL in September 2008

Training

Although he has completed all major tasks assigned, there were gaps observed

in his functional knowledge and leadership abilities. Needs training inputs in

DOE and LCA. Also training to develop leadership skills

Summary


Signature of Reviewer: Signature of Assessor : Signature of Assessee:

Name: Name: Name:

Designation: Designation: Designation:

Date: Date: Date:

Job Rotation / Developmental Interventions

Job Rotation not applicable as he holds a specialist position

CFT membership to be encouraged

Overall rating (By the committee)

Has achieved an overall score of 78

He is rated _______

Section D

Summary


PADS – Final rating

Population

05

10152025303540

30 50 60 70 80Scores

No

of

pe

rso

ns

5% - 4

Persons

40% -30

Persons

45% -34

Persons10% -8

Persons

Normalization process done before determining final cut-off

scores for overall rating

Critical incidents recorded with respect to overall assessment

Final distribution of scores across 4 categories:

BE - 5% of population

AE - 40% of population

EE - 45% of population

O - 10% of population


PADS - Feedback

Assessor gives qualitative feedback on all aspects and also

actively seek feedback from the Assessee

Training needs to be met over the coming year and Job Rotation

plans, if any, will also be discussed & noted

The assessment rating, increments/promotion etc., would be

communicated


Thank You