HRM

1. HUMAN RESOURCE
MANAGEMENT
Jitendra Kumar Nanda
SDA, BOCCONI
IEMB-7
1

2. AGENDA
 Overview of HRM
 HRM System of ESSAR Group of Industries
 ESSAR Capabilities – PENNOC
 Performance Appraisal & MDG Process
 Summarize
2

3. OVERVIEW
 What is HRM ?
Human resource management is the
strategic approach to nurturing and
supporting employees and ensuring
a positive workplace environment.
Its functions vary across different
businesses and industries, but typically
include recruitment, compensation and
benefits, training and development,
and employee relations.
.
3

4. ESSAR GLOBAL KEY PORTFOLIO ASSETS
Downstream
United Kingdom
2011
Upstream
India, Vietnam, Nigeria
1999
Ports
India
2009
Shipping & Oil Drilling
Global Footprint
1976
Digital Integrator
Global Footprint
2010
Metals & Mining
North America
2007
Metals & Mining
India
2019
Metals & Mining
Indonesia
2010
Petrochemical integrated 10 mmtpa
capacity refinery. Amongst top 15%
European refineries by complexity and
top 40% by size
Pioneer of Coal Bed Methane in India.
Total unconventional gas reserves of ~15
TCF. One of the largest gas discoveries in
South East Asia with in place resources of
~5.4 BBOE.
Amongst largest private power sector
players in India. 3,275 MW existing
operational capacity;
Second largest private sector port operator
in India, Existing aggregate capacity of 110
MTPA
Diversified fleet of 12 vessels with
combined tonnage of 1.12 mn and 16
rigs(including 1 semi-submersible) Caters
to 1/5th of Indian coastal cargo in dry
bulk,
Providing services across Unified
communications, Data centres & Edge IT,
Cyber Security, Digital Transformation &
Applications
Iron ore reserve of 2.3 billion tons in
North America. Pellet plant with capacity
to deliver 7 MTPA under construction
Aries coal mine in East Kalimantan,
Indonesia, with 69.2 million tonnes in
reserves of one of the finest quality
thermal coal
TECHNOLOGY AND SERVICES
METALS AND MINING
INFRASTRUCTURE
ENERGY
Power Generation
India, Canada
1997
Terminal Operator
UK
2019
Largest Independent Bulk Liquid storage
provider in the UK with a capacity of 3m
cbm
EPC
Global Footprint
1969
Leading Engineering, Procurement and
Construction (EPC) company; $10bn+ of
projects executed
14MTPA greenfield iron pelletization
project and 8 MTPA integrated Steel Plant
with additional 14MTPA pellet plant in
development stage

5. ESSAR ENGAGEMENT AND EMPLOYEESHIP
Corporate Statement & Vision :
 “We at Essar strongly believe that the employee – organization relationship is a two-way street. That is,
both parties have an equal role to play in adding to the journey forward and making the experience
mutually and meaningfully beneficial. To this extent, we invest in identifying and addressing key drivers
of employee engagement such as career opportunities, learning, rewards and recognition and
employee welfare, among others. In the same breath, our employees are expected to display
fundamental employeeship behaviour of responsibility, loyalty and initiative. It is this mutual covenant
that binds the Essar family, taking individual and organizational growth forward, together.”
 Our vision for human capital: “emotionally Connecting people to +vely Engage in Value Creation”
 Our engagement initiatives at Essar are designed around the philosophy of Engage for Success under
two platforms : Essar-Beyond Work and Essar-Cares.
 You are Precious Girls : Our diversity and inclusion initiative - An initiative for women empowerment.
5

6. HRM SYSTEM - ESSAR GROUP OF INDUSTRIES
The Foundation of HRM aligns its vision with the larger vision of the conglomerate based on the four Ps
6

7. HR POLICES OF THE COMPANY
 HR STATEMENT :
At ESSAR we are committed to providing our employees world-class developmental
opportunities and a structured career path enabling them to actualize their potential as leaders.
 Excellent individuals build excellent companies.
 Each individual has unique talents and expectations from the organization.
 Flexible and well-planned recruitment process.
 freedom to be innovative, within a work culture that is non- bureaucratic and result
oriented.
 flexible individual plans for career growth.
 serious commitment to continuous training and development.
 unique opportunity to unlock your own potential and realize excellence.
7

8. HR PROCESS OF THE COMPANY
8

9. HRM DEVELOPMENT : LEARNING PROGRAM
LEARNING PROGRAM
Essar Corporate University (ECU) Essar Learning Systems (ELS)
Gurukul: Learning @ Essar Self-Directed Learning at Essar
1.Managerial Capability
Programs
2.M.Tech (Research)
Program
3. Integrated Leadership
Development Program
(ILDP) for Essar
Businesses
9

10. HRM DEVELOPMENT –TRAINING PROGRAM
Management
trainee
programmes
Essar
Academy
Program for
Graduate
Engineers
Essar
Academy
Program for
Diploma
Engineers
Essar
Academy for
Steel
You are
Precious Girl:
Our diversity
and inclusion
initiative
10

11. 11

12. HRM MOTIVATION –APPRAISAL AND PROMOTION
Managing Performance and Talent – the SAP
Success Factors e-compass way
• Balanced Scorecard methodology for measuring,
managing and monitoring performance.
• The Balance score card is driven down from the
CEO level and drop down to every dept and
individual Goal Setting & development planning.
• Balance Score card is reviewed Quarterly
followed by Mid Year Review and Year –end
Review.
• Balance Score Card is prepared based on the
Business plan for the year and goals and target
set for every individual as a waterfall system
starting CEO to HOD & all Managers.
• Yearly Performance of every individual being
assessed by immediate reporting manager and
by Dept Head.
• Promotion and Increments are basis final ratings.
12

13. PENNOC – COMPANY’S CAPABILITY AND COMPETENCY FRAMEWORK
PENNOC:
• The Six Abilities &
• 12 Anchor
Competencies
• Company’s Capability
and Competency
Frame Work basis
which the employees
are accessed for their
performance and
need based training
in the interest of their
development and
competency.
13

14. PERFORMANCE REVIEW
Managing Performance and Talent – the SAP
Success Factors e-compass way
• The Balance score card is driven down from the
CEO level and drop down to every dept and
individual Goal Setting & development planning.
• Balance Score card is reviewed Quarterly
followed by Mid Year Review and Year –end
Review.
• Balance Score Card is prepared based on the
Business plan for the year and goals and target
set for every individual as a waterfall system
starting CEO to HOD & all Managers.
• Yearly Performance of every individual being
assessed by immediate reporting manager and
by Dept Head.
• Promotion and Increments are basis final ratings.
Goal Setting &
Development
Planning based on
Company’s
Business Plan
Quarterly
Review
Mid Year
Review and
Calibration
Annual
Review and
Promotions
A Sample format of PMS is attached how the
process is followed for individual manager. 14

15. PERFORMANCE REVIEW & MDG PROCESS FOR PROMOTION
Philosophy
 To ensure that only
the “Right” and most
deserving candidate
are promoted to
position of higher
responsibilities in the
organization
 To ensure the quality
of people moving into
leadership and senior
role.
Purpose of MDG
 T
o have a uniform
assessment process
for promotions across
all businesses /
locations
 To reinforce a culture
of meritocracy where
performance is valued
above all,
 To re-verify the
supervisors
recommendation for
promotion.
Eligibility Criteria
 A minimum rating of 3
of the 5 point scale
 Rating eligibility
should total to 9 over
3 consecutive years
 .For exceptional
performers a two year
period can be
considered provided
their total comes to
the minimum 9
required.
 Availability of a higher
/larger role.
MDG Process
 Philosophy
 Eligibility
Criteria
 Process
 Feedback
Report
 Scoring
 IDP
Bell Curve is more prominently used for the final ratings of the Employees in the Organization.
15

16. Assessment MethodologiesUsed
In the above MDG Process, a HRM Consultant is appointed to carry out the Independent assessment basis the
above methodology and process whose final report is taken into consideration for the promotion.
16

17. PI –Personal Interview
⚫ Individual exercise
⚫ Primarily CBI’s (Competency Based
Interviews)
⚫ Participants will be interviewed by a
panel consisting of three senior Essar
Executives
⚫ 1 of the interviewers will be an HR
person
⚫ 2 interviewers will be line managers
either from the same business or from
a different business from the
participant
⚫ The Interview could take between 45
minutes to an hour plus
During the PI you’re being assessed
on…
⚫ Communication skills.
⚫ Interpersonal Ability
⚫ Listening skills.
⚫ Presence of mind
⚫ Ability to express a view point
⚫ Leadership and decision making
⚫ Analytical skills & Problem solving
skills
⚫ Attitude and confidence.
And most importantly Manager’s
“PENNOC” ability
17

18. BELL CURVE – HR APPRAISAL PROCESS
 The bell curve system is widely
followed for many years by
the company to grade
employee performance.
 It is based on the idea that
employees are placed in
categories of below average,
average, and excellent based on
their performance.
 Supervisor/ Managers are
advised to follow the bell curve
at the end of the Annual Review
and give the ratings accordingly.
 Based on the final ratings,
the reward benefits and
recognition and promotion
process are initiated by HR.
 Use of Bell Curve in
Performance Appraisals –
Good or Bad?
18

19. USE OF BELL CURVE IN PERFORMANCE APPRAISALS – GOOD OR BAD ?
Pitfall of Bell Curve:
Generic view irrespective of the department
 The overall performance of an employee should be measurable on an individual basis. When we compare the
performance rating of the employees, we considerably remove the basic deciding factors- that is the department, the
role, and the daily tasks of the employee.
 It is natural that if these factors are different for each employee, the expectations ought to be different. Hence,
comparing that rating on an overall basis is unfair to the employees.
Lack of active feedback
 When we rely on the bell curve for performance management, we remove the practice of active feedback. We have
to ensure that the employees get feedback regularly and not once a year.
One-dimensional feedback
 A bell-curve appraisal system gives a very shallow view of the employee’s capability. Instead, employee performance
needs to be assessed personally based on their role and factors like their team coordination, empathy, business
excellence, adaptability, and more.
 A bell curve performance review does not take into account their competencies.
19

20. USE OF BELL CURVE IN PERFORMANCE APPRAISALS – GOOD OR BAD ?
Too Rigid
 This system of ranking the employees is pretty rigid. Company simply use it because it is more convenient and
quick. Putting them into different categories is unfair to the hard work employees are putting in every day Using the
bell curve model in performance management is considered as a rigid approach for rating employees.
 Many time Supervisor /Managers need to put employees in specific gradients just for the sake of bell curve
requirements and forced by company HR process. This happens more often when the teams are small and working
in the portfolio assigned to the team and managers.
Loss of Morale
• When the bell curve formula for appraisal fails to show accurate results for your employees, the lower rating might
lead to a loss of morale. In addition, it might lead to hampered productivity and lowered performance.
 The bell curve appraisal creates anxiety in the mind of employees who may worry about the possibility of an exit
during tough job market conditions.
 This may lead to further deterioration of job performance and de-motivation.
Great performers remain average
 An employee must be great in his role, but according to the curve, he will be in an average position as it considers all
other employees together.
 This way, great performers remain average while the average performers might end up in a better position. It leads to
an unfair measurement of performance, and employees might resent the functioning of the review system. 20

21. ALTERNATIVE TO BELL CURVE APPRAISAL
To build an inclusive culture, it is important to bring transparency and fairness in all employee related
processes, such as goal setting, performance appraisals, feedback, compensation management and
more. Keeping your workforce motivated, engaged and empowered is equally crucial. This can be
achieved with the implementation of the right HR technology tools like 360-degree performance reviews
within the organization to keep them in sync and give them a chance to improve. The tools and software
helps in building a holistic and inclusive work culture, where no one is left behind. It further assists
in eliminating bias in managers, workflows, and talent management processes.
 Clear and mutually discussed goals are set for the employees
 Frequent and meaningful interactions are carried on
 Feedback is solicited from multiple sources
 Employee up skilling and development is promoted
 Each employee is enabled to contribute meaningfully
 Diverse talent is recruited and on boarded
 Employees are energized and provided with rewards and recognition
 Focus is on career path, transparency and risk management 21

22. THANK YOU
22