1. Kusum Jain
Module 4
• PERFORMANCE EVALUATION AND CONTROL PROCESS – Method of
performance evaluation – Feedback – Industry practices. Promotion,
Demotion, Transfer and Separation – Implication of job change. The
control process – Importance –Methods – Requirement of effective
control systems grievances – Causes – Implications– Redressal methods.
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• Identify the need
• Job offers
• Attract
• Recruitment process
• Position in organizationACQUIRE
ENABLERELEASE
• Contract for
recruitments
• Job responsibility
• Compensations
• Educating Co
goals
• Performance evaluations
• Appraisals
• Promotions
• Trainings
• Career management
• Establish Identity
• Separation
• Retirement
• Pension
• Exit interviews
EMPLOYMENT LIFE CYCLE
MOTIVATION
GROW
PLANNING
EMPLOYEE VALUE PREPOSITION
SELF DRIVE
SUPPORT
HUMAN CAPITAL
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Scope of performance evaluation:
• highest relevance with all the employees whose job / work is NOT time
bound but Objective / target / responsibility based-
• required for knowledge job – Project managers , Project head, Design
engineers
• Like the construction industry are not practicing performance
evaluation and reward system for the labors and the workmen who are
having time bound job.
• There could be the organizations (other than government or semi –
government) who would have the salary linked with the Dearness
Allowance may not find full relevance to it.
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Purpose:
From Employer Perspective:
Tool of motivation: Performance evaluation along with adequate
appraisal system
encourage loyalty and retention.
basis for pay raises, promotions, and legal disciplinary actions.
Recognize Intellectual human capital central to competitive
advantage.
Need to sustain / retain and leverage intellectual human capital
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From Superior Perspective:
• keep employee informed for how well one is performing their job /
duty.
• Decide the rise of salaries
• decision making regarding the promotions, demotions, transfers,
terminations, and even layoffs
• Inculcate disciplinary purposes
• to reinforce the attitudes and behaviors employees
• identifying employees’ training need.
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From Employee Perspective
• helps employees to improve their performance
• add more value to job
• Helps decide sensible annual targets for performance evaluation
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MBO method of performance evaluation
• managers and employees together identify, plan, organize, and
communicate objectives to focus on during a specific appraisal period
• set objective/goal should be
• specific,
• aligning organization goals
• measurable,
• achievable,
• realistic,
• time-sensitive.
• periodically discuss the progress made to control and debate on the
feasibility of achieving those set objectives.
• Reward or appraise in terms of promotions ,demotions, salary hike, variable
salary, appraise ,transfer, need for training
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Example from Construction industry CEO
Project
head-1
Clearances
Sr
Engineer
Quantity
estimator
Jr Engineer
Je
Engineer2
Quantity
estimator
Project
head-2
Project
head-3
Purchase
Manager
HR
Manager
Finance
Head
IT Head
Real Estate
head
Legislative
head
Design
Engineer
Jr.
Designer
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CEO- Setting Goal for Project Head
• Staff under Project head-40 Engineer
• Estimate of work he can take to complete in year 2019
• Assume 150crore worth of project completion planned / Total project of
300crore with the project head
• Target based on statistics of last 5 years
• Analyze the work done in last 5 years
• Challenges faced
• Resources available
• Priority for organization goal.
• Higher returns for a particular project
• Handling over of facilities possible in particular sequence help
release money from costumers
• Like marking needs a sample house done so prioritizing completion
of finishes at least in one flat
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• Decide Indexing parameters:
• Completion of targets
• Time
• Cost
• Resources
• Completion of work
• Quality of work carried out
• Internal and External Quality Audits- 4audits conducted
• Accident/Casualties - death should be 0
• Safety Audits
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• Prepare activity chart with approximate calculations of quantities
• Excavation …..15%
• Laying footings…. 30%
• Framework for first 7 floors…40%
• Start of masonry work…5%
• Prepare a sample house ….10%
• Working out resources required for completion of target
• Sr Engineer-5 bldgs. Handled- Discuss and give them objectives
• Jr Engineers
• Labours
• Inventory
• Steel
• Cement
• Water
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• Identify critical activities
• Clearances from municipalities
• Non availability of raw material
• Non availability of funds
• Labor shortage
• Identify probable hurdles
• Covid hurdle in many projects in Mumbai surveyed
• Carrying our before rain activities for the projects-Utilization of
cement bags/ create suitable store for them
• Excavated pockets for footings may cause severe casualties during
rain
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• Monitor project progress
• Intermittently review
• Work on parameters fixed
• Senior Prepares Performance review for appraisal
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360-degree feedback
• Multidimensional- different attributes evaluated
• Uses feedback collected from the employee’s circle of influence
• managers,
• peers,
• customers,
• direct reports.
• Eliminate bias in performance reviews offer a clear understanding of an individual’s
competence.
• This appraisal method has five integral components :
1. Self-appraisals
2. Managerial reviews
3. Peer reviews
4. Subordinates Appraising manager (SAM)
5. Customer or client reviews
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360
DEGREE
FEEDBACK
• Structured forms filled up by employees
• Employees view point for the same situation
accounted for
• Questions related to
• Performance
• Identifying need for training
• Challenging situations
• Dealings with different departments
SELF APPRAISAL
• traditional and basic
form of appraisals.
• include individual
employee ratings
awarded by supervisors
• evaluation of a team or
program done by senior
managers.
MANAGERIAL REVIEWS
• Structured forms filled up by
employees
• Employees view point for the same
situation accounted for
• Questions related to
• Performance
• Identifying need for training
• Challenging situations
• Dealings with different
departments
PEERS REVIEW
• Reporters tend to have the
most unique perspective
from a managerial point of
view.
• reluctance or fear of
retribution can skew
appraisal results.
SUBORDINATE APPRAISAL MANAGER
• The client component is either internal customers
such as users of product within the organization
• external customers who are not a part of the
company but interact with this specific employee
on a regular basis.
• Customer reviews can evaluate the output of an
employee better,
CLIENT/ CUSTOMER’S REVIEW
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Peer reviews-360 degrees feedback
• Within organization third person review
• Reviewer needs to
• Be accurate – Referring to your peer’s job description can be helpful
before assessing their performance.
• Be objective – Reducing objectivity by protecting your peer’s career, or
if you are too scared to be honest, makes the whole task pointless,
• Neglecting office politics –professionalism from everyone involved.
• Confidentiality – The whole process will be ruined if individuals are
aware of what has been said by who and hence maintaining
confidentiality is crucial to it being a success.
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Assessment centers in Asia
• selecting project leaders for the entrepreneurship development
programme in Gujarat (Rao, 1975).
• L and T did a lot of work on job profiling but never got to the stage of
developing an assessment center for potential appraisal.
• Crompton Greaves attempted to use an assessment center approach
for selecting their general managers from within.
• ensure competent people manning strategic positions.
• A large number of Asian companies have established assessment
centers and many others are exploring. The companies that are trying
out include : RPG Group, Escorts, TISCO, Aditya Birla Group, Eicher,
Cadburys, Castrol (India), Glaxo, Grindwell Norton, ONGC, Mahindra
and Mahindra, SAIL, Siemens, Wipro, Wockhardt, and J and J.
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Team competence exercise Matrix
Engineers/OKP Meet Dwarik Darshan Tejas Reema Bharat Henil
Know How
Reporting Completion task
Filling gap bet site and admin
Dealing with labours
Dealing with co team
Overall health
Problem solving
Total
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Behavioral anchored rating scale
• BARS compares employee performance with specific behavioral
examples that are anchored to numerical ratings.
• Each performance level on a BAR scale is anchored by multiple BARS
statements which describe common behaviors that an employee
routinely exhibits.
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Psychological Appraisals
• Analyzing future performances
• IN depth interviews, psychological tests, discussions with supervisors
and review of other revaluations
• Industrial psychologist perform this
• Works on
• interpersonal skills,
• cognitive abilities,
• intellectual traits,
• leadership skills,
• personality traits,
• emotional quotient,
• Other skills-
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Human-Resource (Cost) Accounting Method
• Through the monetary benefits he/she yields to the company
• comparing the cost of retaining an employee (cost to company) and
the monetary benefits (contributions) an organization has ascertained
from that specific employee
• unit-wise average service value, quality, overhead cost, interpersonal
relationships
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Industrial Practices for Performance evaluations
• The most common and effective way is to have the KPI for every employee. KPI is Key
Performance Indicators.
• Individual Comparisons. This method of evaluation is more suitable when the number of
employees are relatively low and the majority of the performance indicators are
intangible in nature.
• Absolute Approach: Where employees are not compared relatively but there are absolute
standards. And performances are compared against these standards.
• Attribute or Behavior Based Approach where the ratings to the various attributes of an
employee is given.
• Result/Objective based Approach which is by and large similar to KPI system but having all
indicators as tangible.
• Self Appraisal System where employee will fill up to the pre-defined format. And the same
format will have a concluding part being filled up by his / her immediate superior.
• Customer evaluation approach where the employee is dealing more with the customers
like in Hotels, tourism, Customer service centers, call centers, etc. Here customer’s
feedback is determinant for evaluating the performance.
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Industries with multiple skills in lateral horizon
• Let us take the example of construction industry. There could be the a
firm where the function of architect, structural engineer, legal
procedure, civil engineers, quality control, survey, audit apart from
MIS, accounts, finance are all within the same firm and not out-
sourced.
• These kind of organization normally practices the KPI monitoring
system.
• Where the KPIs are decided for every grade and category of people at
the start of the year along with their targets.
• By the end of the year, the performance of every individual is
compared against the KPIs.
• Based on the performance, every employee is given the rating.
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Industries with similar skill in lateral and vertical horizon
• organization dealing with any one single or few functions.
• An Architect firm or the structural engineering firm. And such firms
have relatively small team.
• In these kind of Companies, normally the owner is also the Principal
worker.
• Owner / Director is directly dealing with every day to day matters with
every individual employee on daily basis.
• Being so, he / she knows the capability and contribution of every
employee. And he / she will also know the need of individual
employee.
• And accordingly the evaluation of performance is made.
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• Promotion:
• Promotion is an upward movement of employee in the organization to
higher position, higher in organization's hierarchy.
• In the new position, the employee finds a change in salary, status,
responsibility and grade of job or designation.
• If it is just the salary rise without the change in job responsibility or
position or job grade, it is call ‘Upgrading’ or ‘Increment’
• Conversely, if there is change in job responsibility or position or job
grade but no change in salary or pay, it is call ‘Dry Promotion’
• It is the responsibility of the HR manager to lay down a sound
promotional policy and ensure its implementation.
• The well established bases of promotion are seniority and merit.
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• Seniority based promotion:
• Advantages
• It is easy to administer.
• It is easy to measure the length of service and judge the seniority.
• With the base of seniority there is no scope for favoritism,
discrimination and subjective judgement.
• By seniority everyone is sure of getting promotion one day.
• Subordinates are more willing to work under an older boss who has
given many years of service to the company.
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• Disadvantages
• The learning capabilities of senior (older) employees may diminish.
• It de-motivates the younger and more competent employees and it
results in more employee turnover.
• The organisation is deprived of external talent which is very necessary
due to technological advancements and multi-culture organisation.
• Judging the seniority is highly difficult as the problems like job
seniority, company seniority, regional seniority, service in different
organizations, trainee experience, research experience, etc., will crop
up.
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• Merit or competence based promotion:
• Advantages
• Promotion by merit is a reward to encourage those employees who
make a successful effort to increase their knowledge or skill and who
maintain a high level of productivity.
• It helps the employer to focus on talented employees recognize their
talent and reward their contributions.
• Efficiency is encouraged, recognized and rewarded.
• Competent people are retained as better prospects are open to them.
• It inspires other employees to improve their standards of performance
through active participation in all activities and putting in more efforts.
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• Disadvantages
• It is not easy to measure merit. Personal prejudices, biases, and union
pressures may come in the way of promoting the best performer.
• When young employees get ahead of senior employees in the
organization this creates frustration among senior employees .They
feel insecure and may also quit the organization.
• The past performance may not guarantee future success of an
employee.
• Loyalty and length of service is not properly rewarded
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• Demotion: Demotion is the reverse of promotion. It is the downward
movement of an employee in hierarchy with lower status, salary and
decreased responsibilities. It is generally used as a punitive measure for
incompetence or a preliminary step to dismissal. It is a downgrading process
where the employees suffer considerable emotional and financial loss.
Causes for demotion
• The employee may be unable to meet the challenges posed by a new job.
• He may have low administrative skills.
• Due to poor business conditions and continuous losses, a firm may decide to
layoff some and to downgrade others.
• It is sometimes used as a disciplinary tool against offending employees.
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TRANSFERS
TRANSFERS
• Movement
• Company Initiated
• Self Initiated
Reason: Structural Changes in industry
Promotions Demotions
Merger of 2 co/Take over Rationalization of departmental
head
Initiation
Reason-
Responsibility
Absentism
Vacation
Ill health
Shift of
responsibility
Rationalize strength
&skills of employees
Lead to
45. Kusum Jain
Transfer (Job Change) and its implications
• Transfer means the movement of an employee in the hierarchy of
positions with the same or different pay and status.
• Transfers may be either company initiated or employee initiated.
Transfer is a change in job assignment.
• It may involve a promotion, demotion or no change at all in status and
responsibility.
• Transfers from one job to another may be either temporary or
permanent. Transfers may be due to:
• Temporary absenteeism or Vacations or ill-health of the employee
• Shifts in the workload
• Vacancies requiring the special skill of the transferred employee
46. Kusum Jain
• Industry Practices: Apart from the above given reasons, the Job
transfers in industries happen for following practical reasons.
• When there is a merger of 2 departments and to rationalize the
strength and skills of both these departments, employees, normally at
the junior levels are transferred between the departments.
• When the department heads are rationalized. More specifically, say, 1
department head is given the additional responsibility of another
department. And he would like to transfer within these 2 departments
so as to replicate good practice of one department to another.
47. Kusum JainCOMPANYDECIDES
• Definition
• Employee
separation occurs
when employees
cease to be a
member of an
organization.
SEPERATION
VOLUNTRY
NON
VOLUNTRY
QUITS
RETIREMENT
DISCHARGE -co decide
to terminate
LAYOFF- Temporary or
permanent termination for
unfavorable condition
RETRENCHMENT- Making
and Employee redundant-
in response to economic
difficulty
VRS-voluntary retirement service
offered to employees above 10yrs
exp and 40+ to reduce strength
Procedure
• Job charge Handover
• Exit Interview
• Exit form
• NOC forms from different department
• Verify Assets/ facilities and take charge
• Gratuity, PF accounts, Super Annulation,
Welfare funds
• Relieving letter
• Duration of job
• Code of conduct
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Formalities for Separation
• Types of Resignation From a Job
• Resignation:
• A resignation occurs when an employee decides to leave a job of
their own accord.
• Submitting your resignation is an official notice that you are ending
the relationship between yourself and the company.
• Resignation etiquette varies by organization and job type, but
typically, written notice at least two weeks in advance of your
official last day is commonplace.
• Forced Resignation:
• A forced resignation means that an employer has offered an
employee an ultimatum -- either resign or be fired.
• sometimes falls under the “constructive dismissal” umbrella.
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• Retirement:
• Retirement is a separation from employment whereby an employee opts to
cease working once they have met the age and tenure stipulations laid out
by the employer or negotiated by the employer and a union.
• Mandatory Retirement:
• Mandatory retirement rules are limited to a few occupations where workers
are deemed a risk to the public or themselves as they experience
diminished capacities after a specified age.
• Examples include air traffic controllers, law enforcement officers, and pilots.
• Phased Retirement:
• occurs when older employees are allowed to steadily reduce their work
hours over time, often months in advance of their official retirement date..
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• Furloughs
• During a furlough, an employee is still considered employed.
A furlough is considered a temporary unpaid leave from a job.
• If the worker is eligible for unemployment benefits, they may be able
to collect.
• In addition, many employers continue health insurance and other
benefits for furloughed employees.
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• Identify the need
• Job offers
• Attract
• Recruitment process
• Position in organizationACQUIRE
ENABLE
• Contract for
recruitments
• Job responsibility
• Compensations
• Educating Co
goals
• Performance evaluations
• Appraisals
• Promotions
• Trainings
• Knowledge management
• Career management
• Establish Identity
• Separation
• Retirement
• Pension
• Exit interviews EMPLOYMENT LIFE CYCLE
MOTIVATION
GROW
PLANNING
EMPLOYEEVALUE
PREPOSITION
SELFDRIVE
SUPPORT
HUMANCAPITAL
VALUESERVICE
SHAREEXPERIENCE
RELEASE
55. Kusum Jain
5 STAR JOURNEY OF EACH MANAGEMENT FUNCTION
SETTING OBJECTIVE
PLANNING
ORGANISING/ RESOURCING
ACTION / DIRECTION
CONTROLLING
56. Kusum Jain
PRACTICING CONTROL
METHODS OF
CONTROL
ORGANISATION
STRUCTURE
BEHAVIOURAL CONTROL
THRU POLICIES OF
ORGANISATIONPERFORMANCE MEASURE
MECHANISM
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Control Systems
• Sustaining the functions of management system by defining forms of
control between organization and systems within.
• Classify Objectives of Management functions
• Find how they interact with each other
• Identify the measuring parameter
• Study the impact of independent function on goals of organization
• Identify key functions
• value Assessment of key functions
• Study the influence
59. Kusum Jain
Control Systems
• Classify Objectives of
Management functions
• Find how they interact
with each other
• Identify Performance
indicator in different HR
functions.
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Value addition to the goals of co
• Study the impact of
independent function on
goals of organization
• Identify key functions
• value Assessment of key
functions
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Working on critical function – control measure
• Study the influence of
key functions on
Objectives
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APPROACHING AND SOLVING A PROBLEM
PROBLEMS
ANALYSE THE CONTEXT
ANALYSE THE IMPACT
STRUCTURAL
CULTURAL
APPROACH
SOLUTIONS
SOLUTION
COST OF SOLUTION
DESIGN/
IMPLEMENT
OTHER IMPACT
MINIMISE EFFECT
AND LIVE
68. Kusum Jain
5 STAR JOURNEY OF EACH MANAGEMENT FUNCTION
SETTING OBJECTIVE
PLANNING
ORGANISING/ RESOURCING
ACTION / DIRECTION
CONTROLLING
DEVELOPING
LEADER
69. Kusum Jain
• Township
• Required to Make houses and sell
• How much land do we have ?
• Will we have an in-house design team or hire outside
• Cash flow assessments
• When do we target to start the construction
• When will we start selling the houses
70. Kusum Jain
Human resource planning for a township
• Planning:
Define the activity:
Core works
• Acquiring land
• Getting clearances
• Preliminary surveys & Test
• Layouts
• Tests & Surveys
• Planning:
Supporting work
• Recruiting people
• Managing DB
• Accounting
• Arranging finances
• Purchase
• Customer Handling
• Sale & Marketing
• Legal
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Benchmarks in time line
INCEPTION
Sourcing
arranged,
cash flows
decided
Primary
project
team
PHASE -1
LAUNCHED
FOR SALE
PHASE -1
HANDED
OVER-1
PHASE -3
LAUNCHED
FOR SALE
PHASE 2-
PARTIAL
HANDED
OVER
May’2020
July2020
Jan2021
Oct2021
May2022
Nov2024
May2025
may2027
PHASE -2
LAUNCHED
FOR SALE
Commercial
Space+
Residential
APPROX
2 BLDS
COMMON
FACILITES
PROJECT
OFFICE READY
Common
facilities build
Club House ,
Project site
office,
Sample Flat,
Township
planning
layout,
Water,
sewage,
Electricity ,
2 Bldgs.
handed over,
Common
Football
ground,
Shopping Area
sale started
Bungalows,Rel
igious places
opened up,
Shopping Area
waiting to
strat
72. Kusum Jain
Preliminary Project team formation
• Directors Mainly
contributing to the
project
• These appointments
from known people,
shifting from other
project from internal
sources, head hunting
Owner
Director-1
Director-2
Partnership
Project Head Consultant
74. Kusum Jain
Preliminary Project team formation
• Key positions-
• Identified from Internal
team
• Identified from similar
ongoing projects
• Head Hunting
• Within 2 monthsOwner
Director-1
Director-2
Partnership
Project Head Finance Head Legal Advisor
Engineers
Accounting Team Officer
HR head
SALES AND
MARKETING
75. Kusum Jain
Preliminary Project team formation • News Paper adds,
• From the known
circle
• Within 2 months
FROM jULY2020
Project Head
EXECUTION HEAD
DESIGN HEAD
ESTIMATOR
ARCHITECT
LANDSCAPRE
DESIGNER
URBAN DESIGNER STRUCTURAL HEAD
DRAFTSMEN-2 DRAFTSMEN-1 DRAFTSMEN-2 ENGINEER-2
ENGINEER-2
76. Kusum Jain
Activities Prevalent
• Layouts
• Urban planning
• Landscaping
• Residential plans
• Rough designs foe estimation
• Preliminary surveys
• Soil tests
• Tentative quantity estimates, Price estimates
• Recruitments
• Identifying Sale strategies
• Temporary sale offices
• Site clearing
• Costing worked out
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• sale of phase 1 started
• Branding strategies
• Division of zones
• Sales cost decided
• Identify segment of people
SALES AND MARKETING HEAD
CREATIVE SALE
HEAD
MARKETING HEAD
SALES PERSONNEL-5
DESIGNERS-AD
MAKING
78. Kusum Jain
• Construction
strategies
• Stage wise planning
•
EXECUTION HEAD
Senior Engineer
Jr Engineers-5
Skilled labour-50 Unskilled labor-70
Contractors
