What is Performance Management System? Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization.
ACTIONS INCLUDED PERFORMANCE MANAGEMENT SYSTEM <ul><li>Develop clear job descriptions. </li></ul><ul><li>Select appropriate people with an appropriate selection process. </li></ul><ul><li>Negotiate requirements and accomplishment-based performance standards, outcomes, and measures. </li></ul><ul><li>Provide effective orientation, education, and training. </li></ul><ul><li>Provide on-going coaching and feedback. </li></ul><ul><li>quarterly performance development discussions. </li></ul><ul><li>Design effective compensation and recognition systems that reward people for their contributions. </li></ul><ul><li>Provide promotional/career development opportunities for staff. </li></ul><ul><li>Assist with exit interviews to understand WHY valued employees leave the organization. </li></ul>
KEY FEATURES OF PMS <ul><li>Employee development </li></ul><ul><li>Salary and compensation review </li></ul><ul><li>Personal performance </li></ul><ul><li>Business performance objectives for individuals and teams </li></ul>
BENEFITS OF PMS <ul><ul><li>PM focuses on results, rather than behaviors and activities </li></ul></ul><ul><ul><li>Aligns organizational activities and processes to the goals of the organization </li></ul></ul><ul><ul><li>Cultivates a system-wide, long-term view of the organization. </li></ul></ul><ul><ul><li>Produces meaningful measurements </li></ul></ul>
<ul><li>Helps you think about what results you really want. </li></ul><ul><li>Helps ensure equitable treatment of employees because appraisals are based on results. </li></ul><ul><li>Optimizes operations in the organization because goals and results are more closely aligned. </li></ul><ul><li>Cultivates a change in perspective from activities to results. </li></ul><ul><li>Supports ongoing communication, feedback and dialogue about organizational goals. Also supports communication between employee and supervisor. </li></ul><ul><li>Performance is seen as an ongoing process, rather than a one-time, shapshot event. </li></ul><ul><li>Provokes focus on the needs of customers, whether internal or external. </li></ul>
About The Company… <ul><li>North Delhi Power Limited (NDPL) incorporated in July 2002. </li></ul><ul><li>Its a Joint Venture of Tata Power and Government of Delhi with majority control vested with Tata Power. </li></ul><ul><li>It is one of the few private power distribution utilities in India, in an otherwise state owned industry. </li></ul><ul><li>NDPL distributes electricity in North & North West part of Delhi. </li></ul><ul><li>It serves a population of about 4.5 million people spread across 510 sq kms. </li></ul><ul><li>It has a registered consumer base of about 1 million, a peak load of 1150 MVA and an annual energy consumption of around 6200 MUs. </li></ul><ul><li>NDPL is a member of the UN Global Compact Charter. It is also a certified ISO 9001, ISO 14001 and OHSAS 18001 company, with a commitment to safety and environment issues. </li></ul>
VISION To be the most trusted and admired provider of reliable and competitive power, and to be the company of choice for all stakeholders .
MISSION <ul><li>To deliver quality and cost-effective electricity. </li></ul><ul><li>To ensure excellence in consumer care. </li></ul><ul><li>To create a work environment which encourages safety, teamwork, learning and innovation. </li></ul><ul><li>To meet or exceed all stakeholder expectations. </li></ul><ul><li>To enrich quality of life in the society we operate in. </li></ul>
Awards & Recognition <ul><li>North Delhi Power Limited has become the first power distribution utility from India to have received the prestigious honor in the international category by winning the Edison Award. </li></ul><ul><li>NDPL has won the 'Asian Utility of the Year 2008' award at the recently held 'Asian Power Awards 2008' . Mr. Sunil Wadhwa, Chief Executive Officer, NDPL, has been conferred the prestigious 'Most Inspirational CEO of the Year' award. </li></ul><ul><li>NDPL bagged ‘Best Revenue Assurance Initiative’ (Metering Award) for 2008 `organized by Utility Planning Network Global AMI Utility Peer Group. NDPL has been awarded for its Revenue Generation Initiative. </li></ul><ul><li>NDPL won Enertia Awards 2008- Best Urban Utility for Adoption of Best Performance-Consumer Friendly Practices and e-governance. </li></ul><ul><li>NDPL’s CEO- Mr. Sunil Wadhwa has been awarded the ‘ Amity Leadership Award 2008 ’ for Sectoral Excellence in the Energy Sector . </li></ul><ul><li>NDPL won 'India Power Awards 2008' in recognition for Overall Utility Performance in Distribution. </li></ul>
Message from the CEO & ED Mr. Sunil Wadhwa “ It's been over 6 years since we first stepped into the electricity distribution scene in North & North West Delhi. The time which lie behind us has been quite eventful in terms of new achievements and recognitions from different quarters. It also saw us achieve quite a lot in consumer satisfaction by introducing several value added services for them.Our consumers have been beneficiary of the benefits of Reforms. The introduction of these services & more has put us on the world electricity distribution map and at par with some of the best utilities in the world. I am certain that Team NDPL will be replete with more success stories as we surge ahead in our quest for professional and personal growth, development and achievements. Most importantly, I am confident that we will continue to enjoy the support & affection of our consumers and our employees.”
Performance Management System At North Delhi Power Ltd.
PMS At NDPL <ul><li>PMS is the primary tool in NDPL for inculcating a high performance work culture. </li></ul><ul><li>FACTORS ON WHICH PERFORMANCE OF AN EMPLOYEE IS MEASURED: </li></ul><ul><li>KRA’s </li></ul><ul><li>Additional task </li></ul><ul><li>Ratings given on the basis of the Core Values of the company </li></ul><ul><li>Ratings given on the basis of the TATA Leadership Attributes </li></ul><ul><li>Employee’s potential </li></ul><ul><li>Pen Picture given by reporting officer. </li></ul>
APRIL KRA’s Employee – Reporting officer & Reviewing officer Mid Term Review On Track Off Track Annual appraisal Mid Course Correction
<ul><li>The annual corporate objectives are cascaded to the departmental Balance Score Cards (BCS) from where the goals of individuals are derived. </li></ul><ul><li>The Individual Performance Management System ( IPMS ) which tracks employee’s performance against the set KRAs remains aligned to the Departmental and Organizational objectives. </li></ul><ul><li>The targets for goals assigned to executive employees are defined at the beginning of the financial year through the goal setting process which involves the Appraiser and their subordinates at all levels. </li></ul>Contd ..
Contd… <ul><li>The strategic objectives contained in Departmental BSCs are cascaded as individual Key Responsibility Areas (KRAs) in the goal sheet and weight ages are assigned to each goal. </li></ul><ul><li>A set of mandatory goals which are people-oriented are assigned to Managers at all levels. </li></ul><ul><li>The achievement of targets is periodically reviewed and midcourse corrections are done. </li></ul><ul><li>In case of non-achievement of targets at the year-end, the IPMS process also captures the factors which hindered performance. </li></ul><ul><li>Apart from evaluating performance based on goals which indicates the engagement level of individuals, their training needs, leadership capabilities, core value profiles and potential for growth are also captured through the IPMS. </li></ul>
Contd.. <ul><li>The Self Appraisal portion of the IPMS enables capture of employees’ engagement beyond the assigned goals. It is stated in terms of participation in CSR activities and various improvement initiatives such as ISO, 5S, TBEM, SHINE etc. </li></ul><ul><li>Assessment of leadership competencies using the TLP framework is done by the Reporting Officers. Competency Gap Analysis helps in defining the training and developmental need of the executive. </li></ul><ul><li>Technical and Management training needs are evolved through interaction between the executive and his/her Reporting Officer and this leads to the individual’s Development Plan. </li></ul>
Contd.. <ul><li>Individual’s rating on Core Values facilitates identification of values which are low at different levels of employees. Improvement is achieved through leadership interaction in different fora and through personal counseling. </li></ul><ul><li>The potential of all executives for filling up higher level positions is captured as an input to the succession planning processes. Executives with high potential are put through development centres as a part of their grooming process. The overall rating awarded to an individual in IPMS takes into account his/her performance and leadership potential. Based on this rating, the performance patterns are identified both of the organisation and departmental levels. Yearly trends are plotted to evaluate the maturity of the IPMS process. For employees belonging to the Supervisory and Workmen categories, the IPMS captures their performance and developmental needs which becomes an input to their training plans. </li></ul>
TABLE – Tata Leadership Practices Competencies Competency Applicable Levels Functional Excellence All executives Drive For Results All executives Customer Focus All executives Timely Decision Making All executives Taking Ownership All executives People development All executives Interpersonal effectiveness All executives Dealing with ambiguity Assistant Managers & above Building Effective Teams Assistant Managers & above Withstanding Pressure Assistant Managers & above Business acumen Senior Managers & above Innovation management Senior Managers & above Managing Vision & Purpose DGM & above Strategic capabilities DGM & above
Workforce compensation, reward, recognition, and incentive practices
<ul><li>Compensation and recognition depends both on individual and team performance. </li></ul><ul><li>The compensation for employees recruited after 2002 is market–based and includes a variable component driven by performance, both as an individual and as a part of the team. </li></ul><ul><li>Compensation benchmarking is carried out through external agencies to fine-tune the existing pay structure as per the prevailing trends both in the power sector and allied industries. The inputs for the comparable companies and industries are also obtained from analysis of exit data. </li></ul><ul><li>The variable component of the compensation and annual increments are directly linked to PMS. Exceptional performers are given potential pay coupled with fast track career growth. </li></ul><ul><li>Various performance ranges of the Organization are calibrated with increments and performance pay brackets to reward the top performers and motivate others to move into the higher brackets. </li></ul>
Following matrix is the performance pay matrix of NDPL. Here, ‘x’ indicates the basic pay of the employee. Level/Rating Excellent Very Good Good Average Below Average GM 11x 10x 9x x No PP DGM 10x 9x 8x x No PP AGM 9x 8x 7x x No PP Sr. Manager 8x 7x 6x x No PP Manager 7x 6x 5x x No PP Asst Manager 6x 5x 4x x No PP Sr. Executive 5x 4x 3x x No PP Executive 4x 3x 2x x No PP
NDPL has a bouquet of rewards for recognizing high performance and exceptional calibre, both at the team and individual levels. The R&R bouquet is publicized through a handbook and the rewards are given in public functions held at different locations across the company. The R&R policy is revisited annually and new awards are introduced commensurate with business focus and to reinforce desired behaviours. Awards for Safety and SHINE were added during the last two financial years to reinforce thrust on safety and engagement.
TABLE – R&R BOUQUET Name of the Award Description of the Award Frequency Eligible Designations Award Details Shining Star of the Quarter Employee of the Quarter Quarterly All Executives Gift Coupons + Certificate Quarterly Supervisors Quarterly Workman Champion Workman of the Year Best Workman / Lady Workwoman Award 1 per Year Workmen for 2+2 Champion Officer of the Year Best Officer Award 1 per Year Officers Champion Manager of the Year Best Manager Award 1 per Year Middle Management International Package for 2 Samridhi Merit Award Best Lady Workman Award 1 per Year Female Employees Gift Voucher Suraksha Samman For timely reporting of any ‘Near Miss’ and / or ‘Possible Hazard’ at workplace. Anytime All Employees Certificate Consumer Confidante Award Customer Service Recognition Award 1 Bi-Annually Employees of Consumer Care Cells Dinner for the employees of the Cell and their Spouses, with GM (Comm.) Breakthrough Idea Employee Suggestions Award On merit of Suggestion(s) received All Employees Flexible Scheme Awards, Commensurate with the impact of the suggestion and a Certificate of Recognition Catalyst Award Focus Group of the Year 1 per Year TBEM Focus Group Visit to a TATA Group of Company Change Agents Award Quality Initiative Award 1 per Year Employees who have undertaken QIP Books / CDs / Cassettes, a Certificate and Medal Sterling Performance Impromptu Recognition As and when on merit Managers and below Dinner for Two Shabash Award Recognize the sincere efforts and work done by employees. Anytime TBEM Focus Group Gift Voucher Best Engineer Trainee (ET) / Management Trainee (MT) / Technician Trainee (TT) of the year Focusing on first three in overall performance in the batch 2 ETs, 2MTs & 2 TTs on yearly basis All ETS, MTs & TTs Gold and Silver Medals respectively and a letter of commendation
Questions asked <ul><li>How would you rate your organization’s current performance management system? </li></ul><ul><li>Do you think that your performance appraisal system is time consuming & costly? </li></ul><ul><li>What do you think about the way with which the performance management system is conducted in your organization? </li></ul><ul><li>Are you satisfied with your organization’s performance management system? </li></ul><ul><li>How much this performance management system helps in enhancing your performance in the future? </li></ul>
<ul><li>Does your performance management system clarify you what is expected out of you? </li></ul><ul><li>Are you satisfied with the rewards, incentives & promotions you get on the basis of the performance management system? </li></ul><ul><li>Is there any feedback given to you on your performance? </li></ul><ul><li>How frequently is the performance appraisal done? </li></ul><ul><li>Does your organisation give you any training programme on the basis of your performance? </li></ul>
Data Analysis <ul><li>The analysis is done on the data collected from a sample size of 11 employees. The data was collected through a survey in which questionnaire was given to be filled up where various questions were asked to understand the current performance system, their viewpoints and suggestions. </li></ul><ul><li>The data collected through this project is an attempt to understand the process and how effective is the current performance system in NDPL, Delhi. </li></ul>
<ul><li>Through various questions we had tried to identify </li></ul><ul><li>How employees rate their current PMS. </li></ul><ul><li>The way in which PMS is conducted. </li></ul><ul><li>Satisfaction level of employees in regard to compensation & reward management. </li></ul><ul><li>Expectations of employees from PMS. </li></ul><ul><li>Feedback given to them. </li></ul><ul><li>Their training & development needs. </li></ul>
<ul><li>The performance management system of an organization </li></ul><ul><li>is developed through five key components- </li></ul><ul><li>Planning- setting of goals and measures to establish and communicate elements and standards </li></ul><ul><li>Monitoring- Measuring performance, providing feedback and conducting progress reviews. </li></ul><ul><li>Developing- Addressing of poor performance by empathizing with the traders and steps to improve good performance. </li></ul><ul><li>Rating- Summarizing performance through rating and keeping record. </li></ul><ul><li>Rewarding- Recognizing and rewarding good performance. </li></ul>Interpretation
Contd.. <ul><li>The performance appraisal cycle of NDPL is on ANNUAL basis where employees are appraised on the basis of their performance every year. </li></ul><ul><li>It was seen that the sample size of 11 employees believe that their individual objectives for continual growth in performance is very much aligned with organizational goal. </li></ul><ul><li>In NDPL, 80% of the sample size feels that their PMS practiced in the organisation is unbiased & is not very time consuming. </li></ul><ul><li>The data interprets that around 57% of the employees feel that proper feedback is given on the basis of the performance and also 77% of the employees feel that training programmes are conducted on the basis of the performance. </li></ul><ul><li>Majority of the employees feel that they have a good rewards, incentive & promotion system. </li></ul>
Areas of PMS that employees at NDPL Would like to enhance. <ul><li>Feedback from reviewing officers & reporting officers. </li></ul><ul><li>Time Management </li></ul><ul><li>Use of MIS for identification of focus areas. </li></ul><ul><li>Feedback & transparency in appraisals. </li></ul><ul><li>Training need identification </li></ul><ul><li>Turnaround Time </li></ul><ul><li>Appraiser Training </li></ul><ul><li>Timely completion of KRA’s </li></ul>
Suggestions given by Employees <ul><li>KRAs should be defined in the beginning of the year and no modification to be allowed in KRA at the end of the year. </li></ul><ul><li>Feedback along with appraisals should be considered. </li></ul><ul><li>Transparency and counseling after appraisals are over. </li></ul><ul><li>PMS should be less time consuming & should reduce duplication. </li></ul><ul><li>Overall time taken by HR to complete the process should be reduced to one month. </li></ul>
<ul><li>SUGGESTIONS AND RECOMENDATIONS </li></ul><ul><li>Frequency of performance appraisal can be increased. </li></ul><ul><li>Addition on criteria of evaluation to more specific targets. </li></ul><ul><li>Personal Interaction between management and employees should be twice a month. </li></ul><ul><li>Opportunities arising within the organization should be given to the </li></ul><ul><li>internal employees before going out for external talents. </li></ul><ul><li>In addition to the employee’s individual performance other factors like contribution towards the organization should also be considered during the appraisal. </li></ul><ul><li>Flexible timings </li></ul>
S INCERE THANKS TO .. Mr. Sunil Wadhwa, CEO & ED- NDPL , for sparing his valuable time to share his knowledge. Ms. Dipanwita Ray , AM(HR)- NDPL, for giving us an insight of the PMS in their company. And Dr. Jaya Yadav , Faculty (PMS)