Performance Management in Pepsico

Performance Appraisal in TATA Motors

Performance Appraisal is the organized analysis of the overall performance of employees and to realize the capabilities of an individual for further growth and development. Performance appraisal is generally done in systematic ways which are as The supervisors measure the pay of individuals and compare it with targets and plans. The supervisor examines the factors behind work performances of employees. The employers are in position to guide the employees for a much better performance. in this paper we will discuss about the performance appraisal in Tata motors. Key Words: Performance Appraisal, overall performance, work performances. Preface: Performance Appraisal may be accomplished with following objectives in mind: To maintain records in order to determine compensation packages, salary structure, wages raises, etc.

To recognize the strengths and weaknesses of employees to place right men on appropriate job. To maintain and assess the potential present in a person for further growth and improvement. To give a feedback to employees regarding their performance and related status. To provide a suggestion to employees regarding their overall performance and related status. It serves as a basis for impacting on working behavior of the workers. To evaluate and maintain the promotional and other training programmes. Advantages of Performance Appraisal It will be said that performance appraisal is an investment for the organization

Tata Motors Appraisal System

The appraisal model which is followed on annual basis starting from the month of April till March has been extremely effective for the employees of Tata Motors. Half yearly appraisal system, was started a year ago. This activity was started keeping in mind the dynamic behavior of the industry. With a half yearly appraisal system, the employee gets feedback twice a year, which gives him/her a chance to re-look at his/her approach of working. Necessary steps are also undertaken for employees who deviate from their goals. They have introduced a comprehensive system of quarterly appraisals‟ where an employee selects his/her own goals or Key Result Area (KRAs) every quarter and him/her self assesses his/her own performance against these parameters. At Spice jet while formally the process is annual, for several of the frontline employees, there are performance related quarterly payouts designed to reward them with incentives for their performance.

 This has resulted in quarterly assessments which are aligned overall to annual KRAs. Tata Motors have a midterm review for all those who have been performers, thereby creating an expectation amongst the employees of an increase in salary twice a year if they perform well. They used to have annual appraisals earlier, but then they felt that the incentives are not enough to motivation the sales department, which generates major revenues or the organization. they do give monetary increments and designation hikes, according to the performance. If the employee deserves both, they give him/her both the advantages otherwise at least one of them. Designation hikes are given annually. These are proportional to effort of the individual, team and the department. Designation changes are given keeping in mind the immense responsibility one has to shoulder in a high rank

PROCESS The process of performance appraisal:

 1. Establishing performance standards

 2. Communicating the Standards

 3. Measuring Performance

 4. Comparing the actual with the standards

 5. Discussing the appraisal 6. Taking Corrective Action

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Goal-Setting Model

 A goal setting program in an organization requires careful planning. As shown in the figure, the first three factors in goal setting process are establishing the goal, achieving goal commitment, and overcoming resistance to goal acceptance. Goals can be established in a variety of ways. Best way is to set by joint participation between the employee and the supervisor. This method often leads to employee commitment, a crucial ingredient in effective goal setting.

S.M.A.R.T.* Goals • Specific – precise and detailed • Measurable – with criteria for determining progress and success • Achievable – attainable and action-oriented • Realistic – relevant and aligned • Time-related – grounded within a time-frame For this purpose, an online template is circulated in the organization. Superiors fill out that form keeping in view the performance of their subordinate over the year. This feedback becomes the basis of the promotion of the employees.

Some key practices of Performance Appraisal

Promotion: Performance Appraisal assist the supervisors to chalk out the promotion programmes for effective employees. In this regards, inefficient workers can be dismissed or demoted in the case.

Compensation:  Performance Appraisal helps in chalking out compensation packages for employees. Merit ranking is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high wage rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

 Employees Development: The methodical procedure of performance appraisal helps the supervisors to framework training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient workers. It also helps in framing future development programmes.