WEST BENGAL UNIVERSITY
OF
TECHNOLOGY
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Summer Project Report
On
ANALYSIS OF PERFORMANCE MANAGEMENT SYSTEM
At
Reliance Communications
New Delhi
By
Itisha Sharma
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WBUT REGN. NO. : 111360710034
WBUT ROLL NO. : 13600911034
CONTENTS
➢ Certificate from Guides
➢ Acknowledgement
➢ Executive Summary
➢ Chapter I : The Company
1.1 Company Profile
➢ Chapter II : The Project
2.1 Project Profile
2.2 Purpose & Scope of study
2.3 Limitation
2.4 Methodology
➢ Chapter III : Collection & Analysis of data
3.1 Data collection
3.2 Data Analysis
➢ Chapter IV : Finding & Recommendations
4.1 Findings
4.2 Recommendations
4.3 Conclusion
➢ Reference Matter
5.1 Bibliography
GUIDANCE -cum- COMPLETION
CERTIFICATE
This is to certify that Ms.Itisha Sharma, WBUT Registration Number of 20011-13, WBUT Roll Number had undertaken the project titled “ANALYSIS OF PERFORMANCE MANAGEMENT SYSTEM AT RELIANCE COMMUNICATION, New Delhi” under our guidance from 18th June, 2012 to 31st July, 2012 at Reliance Communications, New delhi and has completed the said project successfully.
External Guide’s Full Signature
[Organisation Seal]
Internal Guide’s Full Signature
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Ms. Shweta Prakash (Senior Manager, Talent Management), at Reliance Communications, New Delhi for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending her valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me at all stages of this project.
I would also like to thank Mr. Robin SenGupta, Internal Guide, Army Institute of Management, Kolkata) for guiding me to complete this project and providing me with necessary help on different aspects of the project.
(Signature of Student)
Itisha Sharma
EXECUTIVE SUMMARY:
Performance management involves thinking through various facets of performance, identifying critical dimensions of performance, planning, reviewing and developing and enhancing performance and relates competencies.
Performance has many dimensions: • Output or Result dimension • Input dimension • Time dimension • Focus dimension • Quality dimension • Cost dimension
Performance is what is expected to be delivered by an individual or a set of individuals within a time frame. What is expected to be delivered can be stated in terms of results or effort, tasks and quality. with specification of conditions under which it is to be delivered.
Performance management is a continuous process. Appraisals are periodic activities. Management is dynamic process while appraisals are static. Appraisals are a part of performance management. If the management involves improvements, the moment you assess where we stand there is an appraisal taking place. Therefore without some kind of appraisal management becomes difficult.
Performance management systems with the appraisal component built into them should mean improved performance , more motivated people , and more competent people.
CHAPTER 1:
COMPANY PROFILE
RELIANCE COMMUNICATIONS LIMITED
India is a booming trillion dollar economy. An overwhelmingly young country, with more than 55% of its population i.e. over 550 million people below the age of 30. Steady GDP growth rate in excess of 7% has translated into rising income levels, complementing India’s ongoing economic revolution coupled with the energy, dynamism and ambition of its youth. India’s future will be propelled by strategic drivers such as the quality of its human capital, their access to cutting-edge technology, availability of hi-quality products and services at a lower cost and their will power to make India shine on the world map. The Reliance Anil Dhirubhai Ambani Group, strongly believes that it has a pivotal role to play, in shaping the destiny of our great nation. Through its various consumer facing businesses, the group provides a robust platform to every Indian to realize his potential and shape his / her destiny, through its state-of-the art products and services. The group, barely three years in the making, now ranks among India’s top 3 business houses with respect to key financial parameters. Its dominant presence across a wide array of high- growth consumer facing businesses, range from telecom and financial services to infrastructure, entertainment and healthcare.
Across different companies, the group positively influences the lives of over 100 million customers or 1 in every 10 young and aspirational Indians every single day across 4.5 lakh villages and 20000 towns. It enjoys unparalleled trust, faith and confidence of nearly 12 million shareholders, the largest such family in India, perhaps even in the world. It is one of the largest employers in the country with a young, highly trained and motivated workforce approaching 100,000 strong. All this is focused towards achieving two goals. Building a great enterprise for its stakeholders and a great future for our country.
Reliance –Anil Dhirubai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubai H. Ambani (1932-2002), ranks among India’s top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Ventures Ltd.) to financial services (Reliance Capital Ltd.) to the generation and distribution of power (Reliance Energy Ltd.)
Reliance-ADA Group’s flagship company, Reliance Communication, is India’s largest private sector information and Communications Company with over 20 million subscribers. The company has established a pan-India, high-capacity, integrated (wireless and wire line), convergent (voice, data and video) digital network, to offer services spanning the entire RCom value chain.
Other major group constituents-Reliance Capital, Reliance Energy-are widely acknowledged as the market leaders in their respective areas of operation.
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Reliance Mutual Fund Harmony
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Relince Infrastructure Reliance Health
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Reliance Big Entertainment Reliance Capital
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Reliance Life Insurance
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Reliance General Insurance Reliance Communications
GROUP STRUCTURE:
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HISTORY:
Reliance Communications is the outcome of late Dhirubai Ambani’s dream of bringing about a digital revolution in India that will bring to every Indian’s doorstep an affordable means of information and communication.
“Make the tolls of RCom available to people at an affordable cost. They will over come the handicaps of illiteracy and lack of mobility”, was how Dhirubai, as he was fondly called spelt out Reliance Communication’s mission in late 1999. He firmly believed the country could use information and communication technology to over come its backwardness and underdevelopment.
It was with this belief that Reliance Communications began laying its 60,000 route kilometers of pan India fiber optic backbone in 1999. The backbone was commissioned on December 28, 2002, Dhirubai’s 70th birth anniversary, first since his sad demise on July 6, 2002. Reliance Communication’s network is a high-capacity, integrated (wireless and wire line), and convergent (voice, data and video) digital network. The network is designed to offer services that span the entire RCom value chain- infrastructure, services, both for enterprises and individuals, applications and consulting. The network is designed to deliver services and Applications that will change the way we Indians live. It will harbinger New India Reliance Communications works with a single-minded vision, to change India by helping it emerge as a leading RCom country. The company has geared to provide integrated end-to-end telecom and data solutions along with nationwide broadband connectivity and unmatched state-of-art infrastructure.
To achieve this, the company has put into action concrete plans for covering the entire country to provide services and products that include fixed line as well as mobile telephony, national and soon international long distance telephony, as well as a full bouquet of data, multi media and other value added services. Reliance Communications Limited is in process of building a world-class broadband/IP backbone, connecting India’s top 186 cities with 60,000 route kilometers of fiber with terabit capacity. This integrated business model will provide a sustainable competitive advantage, while enhancing our returns and minimizing risk.
RELIANCE-BRINGING RCOM TO MASSES:
Availability and affordability of telecom services have been the key cause of low density in India. The company has planned to leverage cost, capacity and quality advantages of CDMA technology to offer the most competitive wireless voice and data services nationwide. The company has already got the licenses for providing basic telephone services in 18 out of 21 circles covering approximately 95 percent of India’s population and also proposes to provide limited mobility wireless services under these licenses by deploying advanced CDMA 2001Xi technology. With the induction of high quality and affordable limited mobility wireless services on a nationwide basis, the company will contribute significantly towards achieving the tele-density targets of 7% in 2005 and 15% in 2010, as outlined by the government of India in its Telecom Policy Documents. The company is working towards realizing our plans to cover all major cities/towns in India in different circles to provide a bouquet of RCom services. The focus will be on providing end-to-end integrated data and voice services to the Indian users in next two or three years.
REALITY:
Reliance India Mobile, the first of RCom initiatives was launched on December 28, 2002, the 70th birthday of Reliance group founder Shri. Dhirubhai H. Ambani That marked the beginning of Reliance’s dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aimed to achieve that by putting the power of information and communication in the hands of the people of India at affordable costs.
PRESENT PROFILE:
Reliance Communications offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that enhances productivity of enterprises and individual Reliance Communications extends its efforts beyond the traditional value chain to develop and deploy telecom solutions for India’s farmers, businesses, hospitals, government and public sector organizations. Reliance Communications disseminates information at a low cost. “Make a telephone call cheaper than a postcard”. These prophetic words, of Dhirubai Ambani are a metaphor of profound significance for Reliance Communications.
FUTURE PLANS:
Reliance Communications envisions a digital revolution that will sweep the country and bring about a new way of life. A digital way of life for new India.
With mobile devices, net ways and broadband systems linked to powerful digital networks, Reliance Communications will usher fundamental changes in the social and economic landscape of India. Reliance Communications enables citizens to reach out to their work place, home and interests, while on the move. It will enable people to work, shop, educate and entertain themselves round the clock, both in the virtual world and physical world. It will make available television programmes, movies and news capsules on demand. It will unfurl new-stimulated virtual worlds with exhilarating experiences behind the screens of computers and tele Users of Reliance Communication’s full range of services would no longer need audiotapes and CDs to listen to music.
Videotapes and DVDs would not be necessary to see movies. Books and CD ROMs would not be needed to get educated. Newspapers and magazines would not be required to keep abreast of events. Vehicles and wallets will become unnecessary for shopping.
Reliance Communications will transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance Communications will pave the way to make India a global leader in the knowledge age.
Today, Reliance ADA group is the second largest group in India after Bharti Airtel, on all major financial parameters, with a market cap of nearly Rs. 1,00,000 crore, group assets in excess of Rs. 80,395 crores .
“We have over 126 million customers, the largest for any group in India; over 8 million shareholders, the largest for nay group in the world.
Not many realize that we touch the lives of over 10 per cent Indians every single day. And have a business presence that extends to over 4,500 towns and 3, 00,000 villages in India and 5 continents across the globe.
It is an enviable foundation for us to build a great global enterprise, and to deliver on our values and our brand promise…
Our founder, the legendary Dhirubhai Ambani, gave us a simple mantra for growth: “Think Big. Think Fast. Think Ahead…and…Think Better.”
Think bigger! Think Better! -That is our commitment, our driving force…
That’s our mantra, our way of life- across the reliance- Anil Dhirubhai Ambani Group…
Chairman’s profile:
Anil D. Ambani [pic]
Regarded as one of the foremost corporate leaders of contemporary India, Shri. Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years.
He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to rise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.
He is a member of:
• Wharton Board of Overseers, The Wharton School, USA
• Central Advisory Committee, Central Electricity Regulatory Commission
• Board of Governors, Indian Institute of Management, Ahmedabad
• Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006.
Awards and Achievements:
• Conferred the ‘CEO of the Year 2004’ in the Platt’s Global Energy Awards
• Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004
• Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001
• Selected by Asia-week magazine for its list of ‘Leaders of the Millennium in Business and Finance’ and was introduced as the only ‘new hero’ in Business and Finance from India, June 1999.
Short Biographic Profile
Anil Dhirubhai Ambani
Born on: June 4, 1959
Birthplace: Mumbai, India
Father's name: Dhirubhai Hirachand Ambani
Mother's name: Kokilaben Dhirubhai Ambani
Education: Bachelor of Science from the University of Mumbai
MBA from The Wharton School, University of Pennsylvania, USA
Family: Married to Tina and has two sons Jai Anmol and Jai Anshul
Business address: Reliance Communications Limited, I Block, 2nd Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai - 400710, India
RELIANCE - A DREAM COME TRUE:
The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will over come the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance RCom) started laying 60,000 route kilometers of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubai's 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire RCom (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life. Reliance Communications (formerly RCom), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company. Reliance RCom is an Indian telecommunications company. It is the flagship company of the Reliance- Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance RCom is currently managed by Anil Dhirubhai Ambani. It uses CDMA2000 1x technology.
RELIANCE HISTORY – A JOURNEY TOWARDS GLOBAL LEADERSHIP.
RCom was founded by Dhirubhai Ambani. Between 1999 to 2002 .RCom built 60,000 km of fibre optic backbone in India. This network was commissioned on December 28, 2002.
1999- RCom begins Project Planning.
"Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians" - Dhirubhai Ambani
2000 – Jamnagar Petrochemicals and integrated refinery commissioned.
2000 – RELIANCE COMMUNICATIONS plans announced.
2001- First Media Convergence Node made "Ready for Electronics" at Jaipur
2002 – Reliance RCom launched.
2003 – Largest Mobile services company in India.
2003- (Asia Pacific) award at the Asia Pacific Technology Awards instituted by Frost & Sullivan.
2004- Reliance RCom receives the Most Promising Service Provider of the Year.
2005- Apollo Hospital and Reliance RCom join hands to provide top class healthcare service to millions of Indians in over a hundred Indian cities.
2006- Reliance RCom becomes India’s first telecom operator to launch seamless inter-standard international roaming service - 1World.1Number, with single number on international CDMA and GSM networks.
2007- Reliance Communications adjudged World’s Top CDMA Operator at the Global CDMA Industry Achievements Awards Fete
2008 – Reliance global comm., stealth communications forge strategic alliance to extend via network across 50 countries.
2008 - Reliance Communications announces world’s largest customer experience programme and launches GSM service in over 11,000 towns all over India .
2009 - Reliance Communication launches "Net connect Broadband Plus" - India's fastest wireless Internet service
2010- Reliance Communications has entered into a pact with Polycom Inc, the global leader in tele-presence, video and voice solutions, in order to introduce world's first wireless, high-resolution video conferencing service.
- Reliance Communications (RCom) has inked an alliance with GetJar. Under the alliance, GetJar will offer Reliance Communications its extensive catalogue of over 65,000 free mobile applications.
- Reliance Communications, today announced an unlimited internet access plans called -MobileNet Plan, under which, the subscribers of both post paid as well as pre paid can access unlimited mobile internet at Rs 99 per month.
2011-3G license in 13 circles; Pan-data leadership
FOOTPRINT:
Reliance's CDMA services are available in 19 states and cover about 65% of the country, state wise. RCom also offered for the first time in India, mobile data services through its R-World mobile portal. This portal leverages the data capability of the CDMA 1X network.
RCOM BUSINESS:
A revolution is taking place in the Information and Communication Industry. Reliance Communications is spearheading this revolution by offering the best technology and infrastructure covering all areas of telecommunication, data management, networking, hosting and numerous applications that ride on our infrastructure.
VOICE SERVICES:
These include telecom services such as mobile/wireless and wire lined telephony brings forth an affordable option to almost every Indian to connect with the rest of the world on the extensive optic fiber network that has been laid across the length and breadth of the country.
DATA DRIVEN SERVICES:
Broadband connectivity will open up a completely radical progress in the arena of online entertainment. Some of the exciting broadband services will include video on demand, on line gaming, interactive shopping etc. Banking, transportation, stocks and weather conditions will all be at your fingertips.
MOBILE MESSAGING:
It has taken a development path from short messaging service to enhanced messaging service. Wireless Internet has taken the internet to another level altogether. It will not only ensure instant connectivity at all times, but also ensure that information and data transfers now move at lightning speeds like never before.
VIDEO SERVICES:
These services enable our customers to schedule a video conference, in addition to storage and delivery of video content. Due to significant higher bandwidth capacities, there are tremendous opportunities for the businesses to integrate such applications in day-to-day business processes. Reliance Communications offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that will enhance productivity of enterprises and individuals.
INITIATIVES:
This marks the beginning of Reliance’s dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hands of the people of India at affordable costs.
Reliance Communications will extend its efforts beyond the traditional value chain to develop the telecom solutions for India’s farmers, businesses, hospitals, government and public sector organizations.
• WIRELESS New generation technologies, the future of communication, make wireless communication seamless. Crystal clear voice communication, coupled with high-speed data, is now possible. And Reliance Communications is bringing such a communication to through its digital networks.
• BROADBAND WIRELINE A telephone line that enables you to just talk to someone in the country, data-driven communications have become a prerequisite in doing business effectively and the communication line must be capable of handling that as well. This data communication is the backbone of most businesses today-needed for all critical business applications.
However, the communication infrastructure in use currently is proving to be severely inadequate in catering to such communication demands, primarily because it was designed for simple voice call.
• LONG DISTANCE Powered by state of the art equipment, Reliance Communications fiber optic cables
Across over 60,000 kilometers of the country’s geography are capable of carrying millions of concurrent phone calls. Such infrastructure ensures that the highest quality of voice and data communications is maintained at a high level. No more busy signals, no more calls that cut off midway.
• INTERNET SERVICES The Internet has become an integral component of business communications nowadays. It helps manage critical business processes as well as access and disseminate information. There are about 130 operational internet service providers (ISPs) in India, but internet quality still remains inadequate.
• INTERNET DATA CENTRES Reliance Communications has a vision to provide world-class convergent services to its customers. In pursuance of that, it has set up its first-state-of-the-art IDC- Internet Data Center of 5000+ sums in Mumbai with an equivalent disaster recovery site in Bangalore. Reliance has partnered with global technology leaders-Cisco, Sun, HP, Lucent, and Nortel etc. for the data centers. IDC users HP open view, web trends enterprises and SUN ray for client based system monitoring. Remedy suite of product is used for service desk (help desk) and change management. Reliance provides an end-to-end digital data solutions with single point accountability and SLA commitments.
• RELIANCE WEB WORLD Reliance Web World is the retail interface initiative if the RCom juggernaut and a part of Reliance’s strategy of vertical integration. To service and support Customers who will subscribe to the RCom wave are the genesis of Reliance Web World, the largest retail chain in the history of India and Indian retailing.
TECHNOLOGY:
RCom is the synergy of information and communication services brought about by the digitalization and convergence. In the fast moving and competitive knowledge era, RCom is not only the driver of growth but also competitiveness. Reliance Communications is revolutionizing telecommunications in India by provisioning services that would match with the leading operators of the most developed countries. These services are the outcome of state-of-the-art network technology that has been inducted in the Reliance Communications Network. The switching technology deployed in our network is based on a combination of wire line and wireless switches. While state-of-the-art digital features-rich wire line switches will meet the growing needs of Indian Corporate, the CDMA 1X based wireless switches are advanced enough to provision not only quality spectrum efficient voice services but also 144 kbps of data rates besides SMS and MMS services. CDMA 1X provide an in-built connectivity to internet, which gives user the power of accessing internet and data services anytime. These switching technologies will enable us to provide high quality of voice and data
ORGANISATION STRUCTURE:
The organization structure defined various levels of organization i.e. businesses, work centers, functions, circles, cities, etc. the Reliance Communications organization structure includes:
BUSINESS UNITS: Enterprise, consumer, wholesales & web store.
WORK CENTERS: network(O&M – wire line , O&M –NLD/ILD, O&M – IDC, O&M –OSP, EWC – Long distance, EWC- wireless, EWC- wire line, OSS, ITC,NOC) Call centre, BSS,(CRM,RA), Billing & Collection, Applications & Solution group
FUNCTIONS: HR, Commercial, Purchase/ Logistic, IT Infrastructure, Corporate Staff function
RCom operations are spread over 673 cities in the following circles:
• Andra Pradesh • Assam & North-East • Chhattisgarh • Maharashtra & Goa • Gujarat • Haryana • Himachal Pradesh • Jammu and Kashmir • Bihar & Jharkhand • Karnataka • Kerala • Madya Pradesh • Orissa • Punjab • Rajasthan • Tamil Nadu • Uttaranchal • Uttar Pradesh (East & West) • West Bengal • Chandigarh • Delhi • Mumbai
SWOT ANALYSIS OF RELIANCE COMMUNICATION LIMITED
CHAPTER 2:
THE PROJECT
PROJECT PROFILE:
PERFORMANCE MANGEMENT SYSTEM :
A transparent and unique method is adopted for performance measurement of employees on the basis of-
• Performance through : Key Result Areas (KRAs), Individual Contribution Areas (ICAs) , Core Responsibilities (CR) • Quarterly Assessment • Annual Performance review
Key Result Areas
• Areas of performance that support the organization’s goals which are to be accomplished during the performance year in terms of identified targets.
• Cascaded from the Business / Function scorecard and aligned to it.
• Based on Role and Function of an individual , KRAs are designed.
• Measurement Perspectives are:
1. Financial parameters
2. Customer parameters
3. Innovation/ Process
4. Employees- Learning and Development
Individual Contribution Areas
• Measures the contribution that goes beyond the realms of performance. • Outcome based and measurable. • Could be special projects, developmental activities / lead indicators or other job responsbilities.
Core Responsibilities • On-going tasks or outcome based on day-to-day work on an individual , helps in accomplishing the KRAs. • Do not have any pre-determined targets at the beginning of a performance period. • Qualitative and quantitative. • Provides opportunity to measure how well the job / responsibility assigned is performed.
Targets
Targets are goals set against the KRAs prior to the beginning of the appraisal year. These shall be specific and measurable within the fixed time frame. Set targets shall be assessed and reviewed every quarter during appraisal year.
KRA/CR Setting
• The KRAs are role based and designed to align them with the business and the functional scorecards. The KRAs for the role are vertically aligned and interlinked to achieve the business and organizational goals. • Role based KRAs will be set by the Business HR Heads in consultation with the Business Heads/ Functional Head. • The KRAs can be set under four perspectives as given below-
|Sr. No. |Perspective |Brief descriptions |
|1. |Financial |KRAs which have financial impact |
|2. |Customer |KRAs which have customer impact |
|3. |Process |KRAs which directs process improvements |
|4. |Learning and development |KRAs which state about developing the |
| | |subordinates or personal growth |
ICAs and CRs are set by the individuals in consultation with the appraiser.
The Balanced Scorecard (BSC) is a strategic performance management tool - a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. It was given by Kaplan and Norton
Target Setting
• The target setting is done in the beginning of the Financial Year. Yearly target shall be aligned to and cascade from- 1. Business Scorecard: Business Heads design the business scorecard in consensus with the Management and shall be aligned to the Vision of the organization. Business HR facilitates the process of designing the Business scorecard. 2. Functional Scorecard: Functional scorecards are designed by the Functional Heads depending on the Business Scorecard and in discussion with the Business Heads. Business HR facilitate the process of designing the Functional Scorecard. 3. Individual KRA/CR targets: After the formation of Business and Functional Scorecards the employees set their KRA/CR targets in the beginning of the year in accordance with the respective Business and Functional Scorecards. Reporting and Review Manager approves the KRA/CR set targets by the employees, after ensuring the vertical and horizontal alignment with Business and Functional Scorecards.
Performance Appraisal
The Performance Appraisal consists of 3 tier evaluation process –
1. Self Appraisal – The Appraisee details out his contribution and achievements for the year against the set KRAs / targets at the beginning of the year. The Appraisee can also mention the ICAs / CRs , Training Needs and Career Aspirations at the time of Self Appraisal. 2. Performance Evaluation by Appraiser – The Appraiser evaluates the Performance of the employees and determine the Training and Developmental Needs. 3. Performance Review by Reviewer – The Appraiser presents the evaluated performance of his Appraisee to the Reviewer.
Quarterly Assessment
• Yearly targets are split into quarterly targets and thus the quarterly assessment is carried out based on achievement of Quarterly targets. • Helps determining the pace at which the target accomplishment is taking place. • It is conducted after every three months – JUNE, SEPTEMBER, DECEMBER, and MARCH. • The appraiser and the reviewer finalize an overall assessment score along with the qualitative comments, which are only for the performance feedback, counseling and developmental measures.
|Sr No. |Quarterly Review Comments |Performance Targets |
|1. |Exceeds Expectations |Demonstrates exemplary knowledge, skills and |
| | |attributes consistently in all situations, far above|
| | |that required for effectiveness in the current role.|
| | |Deliver outstanding results. |
|2. |Meet Expectations |Demonstrates adequate knowledge. Skills and |
| | |attributes at the level required for effectiveness |
| | |in current role. |
| | |Displays the required level of performance. |
|3. |Below Expectation |Does not sufficiently demonstrate knowledge, skills |
| | |and attributes required for the effectiveness in the|
| | |current role and immediate improvement is needed in |
| | |the performance. |
• Outcome of the Quarterly Assessment (Assessment Score) are used as a necessary input for Annual Review. Contribution/ Weightages of all the Quarters in the Annual Review are decided and communicated by Corporate HR.
Annual Review • It is carried out in April. • The performance measured in the Annual Review forms the basis of Rewarding the employess which includes increments and Performance Linked Incentives. • The appraiser evaluates the appraisee’s targets achieved on the basis of set of KRAs and make observations for the Performance discussion i.e. accomplishments of targets, constraints, and additional contributions if any. • Depending on the degree of achievement of the set targets, appraiser rates the appraisee on his performance. • This performance evaluation and rating by the appraiser is sent to the reviewer. • After the approval of the reviewer, the evaluation and rating go to the respective Functional Heads. • Functional Heads approves the evaluation and rating and send to the HR administrators. • HR administrator collate the ratings of all the employees and send for further approvals.
Normalization
Normalization of ratings is done by the Business / Entity HR to ensure-
1. Alignment of Individual performance to respective Circle or Business Performance. 2. Alignment of Circle or Business Performance to Company’s Performance.
Performance Feedback to the employee for the entire year
Appraiser gives comprehensive and structured feedback to the Appraisee on his strengths and areas of improvements.
Appraiser helps to improves the Appraisee’s performance by making future plan for by addressing the gap between actual performance and expectations about performance.
PURPOSE:
The purpose of the project is to find the loopholes in the current Performance Management System and recommend ways so it is more efficient and proper in nature.
SCOPE:
The scope of this study is limited to the Reliance Communications Head office floor having not more than 50 employees.
METHODOLOGY:
In this project data is collected from various sources like online employee portal, questionnaire filled by the employees and various websites and then analysed to get the conclusion .
CHAPTER 3:
COLLECTION AND ANALYSIS OF DATA
Data Collection
To obtain the data free from errors, I performed every step carefully while collecting and recording information and tried to get complete, comprehensible and consistent data The data for the present research study was collected through two methods:
1. Primary data collection method
2. Secondary data collection method
PRIMARY DATA COLLECTION
The primary data are those which are collected afresh and for the first time. These data are obtained by a study specifically designed to fulfill the data needs of the problems at hand. Such data are original in character.
Collected through:
Methods of primary data collection:
The primary data has been collected through following methods:
1. Interview method:
Direct personal interview method was used to collect the information from the respondents (employees) by personally visiting and meeting the people from whom data have to be collected. This method was used because the project includes an intensive study of a limited field. Moreover, the data needed for the purpose is more of personal nature which can be collected through directly communicating with the employees in order to increase its reliability. The information thus collected is original, accurate and in depth.
The interview was unstructured as it was characterized by flexibility of approach to questioning and did not follow a system of pre-determined questions and standardized techniques of recording information. The method of unstructured interview was chosen so as to have greater freedom to ask, in case of need, supplementary questions or at times to change the sequence of questions.
2. Questionnaire method:
In this method, a questionnaire was made consisting of a number of questions to be answered and filled by the respondents (employees) on their own. This method was used in order to enable the respondents to answer the questions as per their convenience and to provide those adequate to give well thought out answers. Thus this further increases accuracy.
SECONDARY DATA COLLECTION:
The secondary data are those which have already been collected by someone else and which have already been passed through the statistical processes. Thus such data is not originally collected rather obtained from published or unpublished sources.
Methods of secondary data collection:
Company Journals, Magazines, Internet, Books and newspapers. . The collection of the secondary data was done through published sources and Unpublished sources of Performance management.
The methods of collecting primary and secondary data differ since primary data are to be originally collected, while in case of secondary data the nature of data collection work is merely that of compilation.
DATA ANALYSIS
1. Tenure with organization:
[pic]
We can find from the pie chart that most of the employees (80%) have worked in the organization for 1-10 years. This shows that employees are not very much experienced. Employees having above 10 years of tenure were very less (4%).
2. The present goal setting mechanism:
[pic]We can clearly see from the pie chart that most of the (92%) employees were satisfied with the present goal setting mechanism. But some people (8%) were not satisfied.
3. Key performance areas:
[pic]
From the responses, the pie chart illustrates that most of the employees (84%) were aware of the key performance areas. So employees were capable to self assessment. But very less (8%) person didn’t know about the KPA. That’s why, they were not capable to check them selves.
4. Company’s goals and objective:
[pic]
From the response, the pie chart illustrates that most of the (80%) employees knew the company’s goals and objective. So they fulfill it very easily and give their best performances. But (12%) employees didn’t know about the company’s goals and objective, and (8%) employees were doubtful. Here was a need to make everyone aware of the company’s goals and objectives.
5. Relation of KPA to company’s goals and objectives:
[pic]
This pie chart shows that according to most of the employees (84%), KPAs were related to their company’s goals and objectives. So they achieve the goals very easily. But according to some (12%) people, KPAs were not related to their company’s goals and objectives. So their performances were very poor. They couldn’t achieve the goals. Here was the requirement of improving the KPAs.
6. Performance management system:
[pic]
As we can see from the responses of the employees that most of the
(80%) employees knew the performance management system. It means that they knew very well about the methods of performance appraisal. But some (12%) employees didn’t know about the PMS. So they didn’t perform well. Here was the requirement of providing the knowledge of PMS.
7. PMS identify and address employees development need:
[pic]
The pie chart shows that the current performance management system was able to identify and address the employees developmental needs, but according to (28%) employees PMS was not able to do so, which could cause high attrition. So, there is a need to identify this and it is possible only when we go through the Current PMS and identify, its shortcomings and try to work upon it.
8. Present PMS meet employee’s career advancement:
[pic]
According to the pie chart, most of the (84%) employees met their career advancement in present performance management system. But some (16%) people were doubtful.
9. Rating of PMS on the basis of fairness of equity;
[pic]
We can clearly see from the graph that it was satisfactory according to (32%) employees. We should try to increase it more by training programs and other activities like appreciation, motivational and behavioural programs for these employees which will give them value addition to their job and it should happen just after the appraisal process then the employees will take it in the Positive sense. There should be one on one guidance given to the under performers. According to very less (12%) employees, it was not fair.
10. Satisfaction level from the present performance management:
[pic]
As per pie chart , most of the (44%) employees were highly satisfied and satisfied and (16%) were not at all satisfied, so, it is an area of deep concern and should be taken it carefully.
11. Employee assessment:
[pic]
According to most of the (48%) people, Top management believed in multirater assessment and second preference (44%) was 3600 feedback. Both methods are useful for assessment of the employees.
12. Communication:
[pic]
We can clearly see from the chart that most of the (68%) employees follows the horizontal communication and some (16%) employees followed the diagonal communication.
In simple words here was the requirement of the communication between the employees.
13. Performance appraisal has measure of competencies separately for each individual level:
[pic]
We can clearly see from the pie chart according to most of the (80%) employees performance appraisal had measure of competence separately for each individual level. But (16%) employees said that performance appraisal had not measure of competencies separately.
14. Encourage innovation and scientific ways of doing things:
[pic]
We can clearly see from the pie chart, most of the (76%) employees said that organization encouraged innovation and scientific ways of doing things. But according to some (8%) employees, it was not true and (16%) employees were doubtful.
In simple words, organization has to be encouraged innovation and scientific ways of doing things because it is necessary for improving the performance of the employee in the organization.
15. Incentives:
[pic]
We can clearly see from the chart that according to (76%) employees, they get both types of incentives monetary and non monetary. 16% employees said that they get monetary incentives and 8% get non monetary.
In simple word, according to the majority, they get both types of incentives. It was the beneficial for increasing the performance.
16. Team work;
[pic]
We can clearly see from the chart, most of the (76%) employees believed in the team work. It was helpful for improving the performance and get new ideas. Some (16%) employees did not believe in team work. They preferred individual work. Here was the requirement of improving the team work.
17. Integrated roles of the top level managers:
[pic]We can clearly see that most of the (94%) employees said that the top level managers are capable of performing their integrating roles well but some (4%) employees were doubtful for it.
In simple words, in this organization, top level managers believe in integrated roles.
GAPS
The performance Appraisal process working for a large organization like Reliance communications is fine but it do have some shortcomings which if taken into account could lead to serious imbalances in the organization so it is better to find ways to work upon it. To reduce or eliminate these shortcomings and it be the perfect system to rely upon and maximum efficiency and output is there in it. Certain gaps you would have come to know through the pie charts but there are more, which I am listing it down.
1. Documented PMS Policy
a. Assessment on characteristics instead of KPA’s
b. Characteristics redefined as competencies
2. Potential Assessment
3. Job Rotation
4. Additional Qualification
5. Stretch Target
6. Training need identification
CONCLUSION
The training period was of 6 weeks. In this period, following conclusion has been drawn: • RCom has a strong Performance Management System and Training & Development programmes which makes it a sought after employer. • The key points of RCom charter are: Every employee of the RCom would be an important member of RCom family. • The RCom family will always strive to attract, retain and reward the best talent in the industry. • The RCom family would commit itself to formal communication channels, which would foster transparency. • Speak of the strategic alignment of the organizational goals with the individual goals of the employees. • The Balance score card and the corresponding initiatives are formed after a detailed study of all the results brought forward from the previous year and the targets achieved. Based on the BSC the KRAs are formed which act as targets for the current year and are also taken as a big criteria for promotions and bonus payment. • The employees are given an unbiased platform to express their true opinions about the working of the organisation and its major drawbacks etc… through the Employee Satisfaction Surveys. • The organisation pays a special emphasis on training and development and takes it as an integral part of its operations. RCom follows the simple policy of developing with its employees, thus training needs are identified from time to time with forms like Training need identification sheets. • The PMS and training programmes together work for attaining the ultimate goal of CDP through various initiatives which have been mentioned earlier in the report. The CDP’s are planned in such a manner so that the employee has a holistic growth and has opportunities to reach heights at various levels of hierarchy of the executive level , highest being E1. • One very important aspect of Human Resource Management is to consider the employees as asset of the organization. The same philosophy is followed in the organization and employees regard themselves as a member of RCom family. • At the same time, the norms and policies followed in the organization reveal that discipline and cordial behavior is expected from all the employees. • Finally, the overall observation of the organization leads to the conclusion that RCom considers Human Resource Management and Training and Development its key strength.
LIMITATIONS
The constraints and limitations faced during the study were as follows:
1. Due to confidentiality norms some of the data was not allowed to be included in the report.
2. The project duration was insufficient for the analysis of the performance management system in depth and to understand the techniques of assessing and grading and individuals KRAs.
3. During the term of the project the organization was going through a
Assessment programme which included employee satisfaction survey, thus few employees were not too keen on filling the survey form.
4. Some of the questions were sensitive so there was a little bit of apprehension. RECOMMENDATION
After doing the research on Performance Management System and done its analysis it is very clear what are the Gaps and what should be done though I would like to suggest something that the Performance Management System should be fair enough so that the employee doesn’t say a word or discuss regarding the same.
The Performance Management System should be made robust in order to avoid the loopholes as it looks good on paper it should be done practically also.
People should be made aware regarding their Target and Goals so they try to achieve the same.
Past data should not be there in the appraisal form otherwise it makes biased opinion regarding the employee at that point of time.
Employees should be given performance benefits by being promoted to upper level if they do get a higher qualification.
There should be potential assessment and employee should be moved from one job to another on the basis of the calibre and moreover should be given a chance so it will not create monotonous environment in the eye of the employee.
QUESTIONNAIRE
Personal Details:
Name :
Department :
Date of entry :
Education :
Sex :
Please answer the following questions; your response will be confidential.
1. How long have you been working in the organization?
a. Less than one year
b. 1-5 years
c. 5-10 years
d. Above 10 years
2. Is there a goal setting?
a. Yes
b. No
3. If yes, then the present goal setting mechanism satisfactory.
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
4. Do you have clear understanding of the key performance areas?
a. Yes
b. No
c. Doubtful
5. Do you know about your company’s goals and objectives?
a. Yes
b. No
c. Doubtful
6. Is the key performance area related to your company’s goals and objectives?
a. Yes
b. No
c. Doubtful
7. Do you know about the performance management system?
a. Yes
b. No
c. Doubtful
8. Does the performance management system identify and address your development need?
a. Yes
b. No
c. Doubtful
9. Does the present performance management system meet your career advancement?
a. Yes
b. No
c. Doubtful
10. How would you rate present performance management system on th basis of fairness of equity?
a. Not fair
b. Satisfactory
c. Good
d. Fair
e. Highly fair
11. What is your satisfaction level from the present performance management?
a. Highly satisfy
b. Satisfied
c. Average
d. Less satisfied
e. Not satisfied
12. What types of your assessment your top management believe for employee devt?
a. 360 degree feedback
b. MBO
c. Multirater assessment
d. Any other please specify
13. Does your manager discuss any mid-term chances in your tasks?
a. Yes
b. No
c. Doubtful
14. Which types of communication follow in the organization?
a. Horizontal
b. Vertical
c. Diagonal
d. Any other
15. Does your performance appraisal have a measure of competencies separately for each individual level?
a. Yes
b. No
c. Doubtful
16. Does your organization encourage innovation and scientific ways of doing things?
a. Yes
b. No
c. Doubtful
17. Do you get incentives for your performance?
a. Yes
b. No
18. If yes, which types of incentives do you get for increasing the performance?
a. Monetary
b. Non Monetary please specify
c. Both
19. Is the team work in your organization of high order?
a. Yes
b. No
c. Doubtful
20. Are the top level managers capable of performing their integrating roles well (roles that link one department to other)?
a. Yes
b. No
c. Doubtful
21. Is there any short coming in the performance management?
a. Yes
b. No
22. If yes than what these are?
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
23. Please give suggestion for improvement in the current organization?
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BIBLIOGRAPHY
BOOKS:
• HUMAN RESOURCE MANAGEMENTT. -VSP RAO
• HUMAN RESOURCE MANAGEMENT ` -K ASWATHAPA
WEBSITES:
▪ WWW.GOOGLE.COM
▪ WWW.CITEHR.COM
▪ WWW.HRDNETWORK.COM
▪ WWW.AIMA-IND.ORG
▪ WWW.STANFORD.EDU
▪ WWW.IGNOU.AC.IN
▪ WWW.HRCOMMUNITY.COM
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|Strength |Weakness |
|Low Entry Cost |Branding Image |
|Commission Structure |Distribution problem |
|Fast Activation Process |Limited product portfolio- Only Mobile |
|Network |Lack of Competitive Strength |
|Connectivity |Limited Budget |
|Data GPRS | |
|Opportunity |Threat |
|Preference of GSM over CDMA |Political destabilization. |
|New Specialist Application |New Entrants |
|Rural Telephony |IT Development |
|New Market, Vertical, Horizontal |Market Demand |
|Competitors` Vulnerabilities | |
| | | 