IHRM Assignment

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EPGDIB 2009– 2010

Souma Sankar Chakrabarti(093) Raja Narayanasamy

Rengarajan Kothandaraman Pramod Prasad

(Group 5)

Company Profile: Due to confidentiality the name of the company is changed to XYZ.XYZ is multi billion

US bases MNC. It has thousand of employee world wide and 34 different country.

XYZ has been present in India since 1992 (re-entry, after an exit in the 1970s). Since

inception, XYZ in India has expanded its operations considerably with regional

headquarters in Bangalore and offices in 14 cities including regional offices in New

Delhi, Mumbai, Kolkata and Chennai. Today, the company has established itself as one

of the leaders in the Indian Information Technology (IT) Industry.

XYZ has set the agenda for the industry with 'on demand business' - a kind of

transformation where an organisation changes the way it operates and reduces costs;

serving customers better, reducing risks and improving speed and agility in the

marketplace. XYZ is already working with customers to transform them into 'on demand'

businesses. XYZ is the only company in the world that offers end-to-end solutions to the

customers from hardware to software, services and consulting. Linux support further

enhances XYZ's e-business infrastructure enabler capability.

XYZ is the only IT Company in the world and also in India that offers end-to-end

solutions to customers from hardware to software, services and consulting.

PERFORMANCE APPRAISAL

Performance Appraisal refers to all those procedures that are used to evaluate the

personality, performance, potential, of its group member’s .XYZ follow mixture of trait

method and result method. XYZ uses Personal Business Commitments (PBC) as

Performance Appraisal instrument

Personal Business Commitments (PBC) The PBC program is the means by which all XYZ employees worldwide set their goals

for the year, receive feedback on their performance and development needs, and get

evaluated on their performance.

At the start of each year, all employees of XYZ are expected to set personal business

goals that align directly with XYZ's overall business goals and values. Each employee

goals should guide the respective employee throughout the year. Then, at the end of the

year, manager will evaluate what that employee have contributed against his goals and

how he made those contributions to give employee a PBC rating to reflect employee

performance. This rating will be a key factor in determining employee’s performance

bonus, pay increase, and career opportunities.

The entire PBC framework is designed to reinforce XYZ's high-performance culture and

effectively differentiate employees based on their contribution to the company. To sustain

marketplace leadership, XYZ must maintain an environment where every employee is

stimulated to perform at an exceptional level. The PBC program is the best way to

recognize top contributors, motivate above average and solid contributors to perform at

their peak, and identify low contributors who need to improve. Employees who make the

biggest contribution to the company get the biggest rewards, and those who are the

lowest contributors will know exactly where they stand.

PBC timetable Suggested calendar Responsibility

January • Senior manager establishes annual business goals.

January - March • Managers communicate department/team goals.

• Employees establish PBC goals that are aligned with department/team goals.

• Employees record PBC goals using the PBC tool and forward to manager.

• Managers meet with each employee to review and agree upon annual PBC goals and approve them in the PBC tool.

March - November • Managers and employees periodically check goals to

ensure that they continue to be relevant and aligned and update as needed.

December - January • Employees document their results against PBC goals in

the PBC tool, using informal input gathered during the year.

• Managers assess the accuracy of employee's documented results and make appropriate adjustments.

• Managers participate in Team Based Decision Making with peer managers and determine overall assessment and PBC rating.

• Managers review overall assessment and rating with reviewing manager.

• Managers review and discuss overall assessment and rating with employees.

• Managers initiate PBC processing with signatures and final comments in the PBC tool.

Ongoing throughout the year • Managers provide ongoing coaching and performance

feedback to employees.

• Managers initiate periodic reviews with new hires and ensure goals in place within 90 days of hire.

• Employees seek informal feedback and keep records of their results.

There are three steps in the annual PBC process.

Step1: Set employee’s goals

Step2: Document employee’s results

Step 3: Ratings and assessments

Step 1: Set employee’s goals

At the beginning of each year, all employees must set personal business goals and

document them in the PBC application. In addition, employees also need to document

one or two near-term development goals along with planned activities to help achieve

those goals. Managers (of employees) write an additional set of goals related to their

management responsibilities.

At the end of the year, manager will evaluate what employee has contributed against

employee’s business and people management goals and how employee made those

contributions to give employee a PBC rating to reflect employee’s performance relative

to employee peers. This rating will be a key factor in determining employee performance

bonus, salary, and career opportunities. While employee will not be evaluated based on

attainment of employee annual development goals and activities, attainment of those

goals should have a positive impact on attainment of employee business and people

management goals.

Set personal business goals Employees are responsible for writing a set of personal business goals that align with

XYZ's overall business goals and core values.

Employee should work with employee’s manager to mutually agree on a set of goals that

is appropriate for employee’s position and level of responsibility. Since employee’s

performance will be evaluated based on employee’s contribution, employee should set

goals that focus on the most significant contributions employee can make.

Employee’s goals must align with XYZ's business objectives

Employee’s goals are tightly aligned with XYZ's strategy, employee’s unit and

department strategies, and employee’s cross-XYZ team strategies. To excel as a

company, every employee at every level of the organization must be working

collaboratively toward the same cohesive vision and overarching business goals.

Employee’s PBC rating is based on how much employee contributed to XYZ's success

for the year, so it's crucial that employee’s goals -- and the actions employee take to

achieve them -- clearly support XYZ's business goals.

At the start of each year, XYZ's senior management team establishes the company's

annual business objectives. Then, each successive level of management sets goals that

support those above it. Employee’s manager will communicate employee’s department's

goals for the year so employee can tie directly into them.

But even before employee know the business goals from employee’s department, teams

and across the company, start working on employee’s own goals and share them with

employee’s manager in the first weeks of the year. Goal alignment flows from the

bottom-up as well as the top-down. Employee can work with employee’s manager to

fine-tune them and make sure they line up with the company's goals.

Remember to check employee’s goals throughout the year and regularly seek feedback

from employee’s manager and others to make sure employee’s performance is on track.

Employee’s goals must support XYZ's values

Employee’s performance assessment is not based only on what employee has contributed,

but also on how employee made those contributions. To be considered a top performer at

XYZ employee must not only achieve results that contribute to XYZ's success, but

employee must do so according to XYZ's values. While XYZ is a results-oriented

company, we are also a company that puts a great deal of weight on our values:

dedication to every client's success, innovation that matters - for our company and for the

world; and trust and personal responsibility in all our relationships.

When setting employee’s goals, make sure they align with XYZ's core values. If

employee failed to live up to XYZ's values while pursuing employee’s goals -- no matter

how great the results may be -- it will be reflected in employee’s PBC rating.

Set development goals and planned activities

XYZ relies on its employees to continue to grow to meet the ever-increasing challenges

of the marketplace. That is why it is important for each employee to identify the ways

that he or she can improve to meet his or her business goals. Development goals and

activities should align with business unit priorities. Performance will continue to be

evaluated based on the achievement of employee’s business goals.

In the development goals and activities section of the PBC application, employee need to

identify and document one or two near term development goals and associated activities

to enhance employee’s ability to meet employee’s business goals and people

management goals (if applicable). Employee’s plan should foster growth in employee’s

current job assignment as well as longer term career aspirations. While business goals

focus on the current year and employee’s current job, employee can build skills and

experiences in employee’s career over time by growing capabilities using the XYZ

CareerSmart Framework.

People managers must set additional goals

People manager in XYZ acts as staff manager ,People manager come from technical

background. People manager acts as interface between HR and the employees.

If employees have people management responsibilities, along with employee’s business

goals employee need to write two to four goals related specifically to employee’s role as

manager. Managers have this additional goal-setting requirement because XYZ

understands that good people management is vital to the company's success and its ability

to maintain a high-performance workforce.

While people managers won't receive a separate rating at the end of the year just for

people management, they can only receive a top overall PBC rating of 1 if they rate

above average on all seven expectations of outstanding people managers. If a manager

does not perform well in his or her people management role, he or she cannot viably be

considered a top performer overall.

Employee is considered to have people management responsibilities if employee is

responsible for direct supervision of two or more individuals, including conducting their

annual performance evaluation.

Step 2: Document employee’s results

It's important to keep an ongoing and accurate record of employee’s results throughout

the year so that employee can incorporate them into employee’s year-end results

summary. Employee’s manager will assess employee’s results when giving employee

employee’s PBC rating.

Documented results are factual statements about what employee have achieved against

employee’s stated goals. Employee’s documentation should address such matters as

quality, quantity, costs/savings, meeting schedules or targets, and the impact employee’s

results have had on employee’s team or department.

All employees need to document how they achieved their personal business goals as well

as the impact their development goals had on achieving their business goals. People

managers must also document their people management-related results, as well as the

impact their development goals had on their people management goals.

Employee can document employee’s results year-to-date in draft mode within the PBC

tool. In early November employee’s manager should ask employee to draft employee’s

results so that employee’s documentation can be used when beginning to review relative

performance of employees across employee’s organization. Make it a point to

periodically update employee’s records. In addition, take advantage of opportunities

throughout the year to get informal feedback from employee’s manager, team leader,

colleagues, and customers to check whether employees’ on track in meeting employee’s

goals

At the end of the year, record all employee’s results in the PBC tool and send the form to

employee’s manager. Be sure to include all relevant information, including any

performance feedback employee received during the year.

Step 3: Ratings and assessments

At the end of the year, employee’s manager will evaluate employee’s achievements and

rate employee’s performance. Employee will receive a year-end rating that takes into

account employee’s full year performance, including any job changes or promotions.

Employee’s performance is evaluated on two factors. First, on what employee achieve

against employee’s goals and employee’s contribution to XYZ's success. And second, on

how employee make employee’s contributions and the computability of employee’s

behavior with XYZ's values. Both factors are considered as employee’s contributions are

assessed relative to employee’s peers (known as "relative contribution").

Employee’s ability to show results can be greatly influenced by employee’s acumen in

XYZ's XYZ Competencies, such as creative problem solving, teamwork and

collaboration and other behaviors. While crucial to employee’s success, however,

employee will not be rated specifically on employee’s competencies or the related

development goals employee set early in the year. It's the end results and how employee

achieved them that count the most.

When assigning employee’s PBC rating, employee’s manager will take additional factors

into consideration including employee’s band level, feedback from others, and his or her

own observations.

A year-end PBC assessment and rating is required for employees who have completed

more than 90 work days during the assessment year.

The following sections explain ratings and assessments in more detail:

The PBC rating scale

Employee’s PBC rating is characterized in terms of employee’s relative contribution to

XYZ's success for the year and reflects the degree to which employee supported XYZ's

goals and lived the company's values.

It is important to remember that no matter how impressive employee’s results may seem,

if they did not link to the company's success or if employee achieved them in a manner

that is not consistent with XYZ's values, employee’s rating will be affected accordingly.

1 Among the top contributors this year

Achieves exceptional results; as a 1 performer, clearly stands out from the

rest; is a role model for the XYZ values.

2+ Above average contributor

Goes above and beyond job responsibilities; outperforms most peers; finds ways

to grow scope and impact.

2 Solid contributor

Consistently meets job responsibilities; is reliable in doing job; demonstrates

appropriate level of knowledge, skill, effectiveness and initiative.

3 Among the lowest contributors this year, needs to improve

When compared to others:

• does not fully execute all job responsibilities, or executes

responsibilities, but with a lower degree of results, and / or

• does not demonstrate as high a level of knowledge, skill, effectiveness,

or initiative

Consecutive PBC 3 ratings are unacceptable in XYZ's high performance

culture. Improvement is required and separation from XYZ will result, if

performance is not improved.

4 Unsatisfactory

Does not demonstrate or utilize knowledge and skill required; does not execute

against job responsibilities, and/or shows no significant improvement after

consecutive ratings at a PBC 3 level

Immediate, significant and sustained improvement must be demonstrated,

otherwise separation from XYZ will result.

Relative contribution

Employee’s manager will consider many factors in evaluating employee’s performance,

but in the end employee’s "relative contribution" to XYZ's success will determine

employee’s PBC rating.

Employee’s manager will evaluate how much employee contributed to XYZ's overall

success for the year relative to employee’s peers in the same band and similar job roles.

Individuals who made the biggest relative contribution will get the highest rating and top

rewards.

Essentially, the "relative contribution" factor allows managers to determine who has truly

performed at the highest levels for the year. Given the caliber of XYZ's workforce, there

are many employees in every band who meet their goals, show results, and perform at a

high level. But when compared to one another, it becomes evident that some of these

individuals clearly outperformed their colleagues and contributed more to XYZ's success

-- and they deserve the highest recognition.

The bottom line is that in order to get a top PBC rating, employee cannot just meet

employee’s goals and show results. Employee must do so in a way that makes a bigger

contribution to XYZ than employee’s peers.

In the end, this is the fairest way to ultimately recognize and reward top performers in a

company that is filled with smart, talented high-achievers.

Ratings distribution

When it comes to performance, there is a natural distribution of achievement levels.

During the assessment process, XYZ provides guidance to senior management on the

distribution of ratings.

Without distribution guidance, there can be a tendency to put too many people in the top

category. That diminishes the whole idea of being at the top and dilutes XYZ's ability to

properly recognize and reward its best people. Generally speaking, in a large population

like XYZ, as many as 10-20% of employees might be a PBC 1, 65-85% might be PBC 2

or 2+, and as few as 5-15% of our people could receive a PBC 3. These ranges are only

meant as general guidance to managers, not prescribed outcomes. This guidance helps

ensure that a top rating really means something.

At the other end of the spectrum, there is also a tendency to avoid addressing the lowest

contributors. This is counterproductive to creating a high-performance workforce that

continues to raise its level of performance to meet ever-changing marketplace demands.

Even in an organization filled with many talented people, there are those individuals

whose contributions are weak relative to others. Management is expected to identify

those who are among the lowest contributors who need improvement.

PBC ratings for people managers XYZ believes that people management is so vital to the company's success that if

employees are not excelling in employee’s people management role, employee cannot

reasonably be performing at a top level overall. Managers can get the top overall PBC

rating of 1 only if they are above average in performing their people management

responsibilities.

Employees are considered to have people management responsibilities if employees are

responsible for direct supervision of two or more individuals, including conducting their

annual performance evaluation.

The rating and review process Employee’s PBC rating is based on the results employee achieve (what) and the

compatibility of employee’s behaviors with XYZ's values (how) relative to employee’s

peers. During the year-end appraisal cycle, employee’s manager will participate in a

meeting, facilitated by employee’s second-line manager, called a team-based decision

making session.

During this session, employee’s manager, working with his or her peer managers, will

consider both what employee have achieved and how employee made employee’s

contributions for the employees in that organization. The managers will reach consensus

on which employees are the top and lowest contributors for the year. These assessments

are done by using the performance criteria developed for the organization to compare the

contributions of employees in the same band and who have similar job responsibilities.

In preparation for team-based decision making, employee’s manager will ask employee

to draft employee’s results in the PBC tool. Employee’s manager may modify the

documentation or ask employee to do so, where appropriate, for accuracy or clarity.

Later, employee’s manager will have employee finalize employee’s results in the PBC

tool.

After considering all relevant information, employee’s manager will give employee a

rating and provide a rationale for the rating. Employee will be asked to acknowledge

reviewing the assessment and rating, and two levels of management will sign the final

PBC.

It is important to remember that each year employee will earn a new rating based on an

overall assessment of employee’s performance for that year. With each passing year,

however, the expectations for employee’s performance will rise, which means employee

will have to perform at a higher level to achieve the same rating as the year before.

Appeals If employee disagree with employee’s overall assessment and rating or if employee

believe employee have been unfairly treated as a result of an incorrect administration of

the PBC process, employee may appeal.

Employee should first speak with employee’s second-line manager, who must review and

sign employee’s PBC. If employees are unable to resolve the issue with employee’s

second-line manager, employee may use one of XYZ's internal appeal channels. The

nature of employee’s appeal will determine who addresses employee’s concern and the

timeframe for resolving it.

Under normal circumstances, employee’s PBC appeal should be brought to the attention

of management within 90 days after the date employee receive employee’s rating. Only

on an exception basis will the Concerns & Appeals process consider issues older than 90

days. The Concerns & Appeals Program Manager will be responsible for determining if

an issue is raised in a timely manner and whether it can be accepted for appeals review.

Information regarding the appeal channels is available in the Concerns and Appeals

section of Employee and XYZ - Global, from employee’s manager, or by contacting the

HR Service Center Support team for employee’s specific region.

PBC tool

PBC is software tool used to collect the information related to the performance appraisal.

Employee submits the goals in the PBC tool .The goals are reviewed and approved by

people manager. Mid term review of the goals are also done in PBC tools and review date

and comments are uploaded in the tool. At the end of the year the result and

achievements are documented in 2000 word in the tool by the employee. The results are

evaluated with respect to the goals and rating will be awarded to the employee. The

performance and appraisal discussion will also be recorded in the tool. The PBC tool

show the employee performance history.

Roles and responsibilities

The PBC program is the foundation of XYZ's performance management system, so it's

important that all employees and managers understand and follow through on their PBC-

related roles and responsibilities. By fully participating in the PBC process, you'll help

XYZ build and maintain the best workforce in the world while ensuring that every

employee is fairly recognized and rewarded for his or her performance each year.

Participation of the PBC program is a condition for continued employment for regular

employees at XYZ.

All employees are expected to:

• Have your business goals and your development goals and activities in place and documented in the PBC tool by March 31. Your final goals are subject to your manager's input and approval.

• Seek informal feedback on your performance throughout the year.

• Document your final results in the PBC tool.

All people managers are expected to:

• Have your goals, including your people management goals in place by March 31, and document your final results in the PBC tool at the end of the year.

• Communicate XYZ's annual business goals, as well as your unit and department's goals, to all your employees.

• Provide employees with the performance criteria to be considered during the assessment process by March 31.

• Assist employees with their goal setting and ensure alignment with XYZ's business goals and values. Approve/modify their goals as necessary.

• Provide ongoing feedback, guidance, and counsel to employees.

• Ensure that your employees' final documented results are accurate.

• Prepare for and participate in a team-based decision making session hosted by your manager.

• Determine and communicate each employee's overall assessment and rating.

• Discuss plans for expected improvement with your employees, as needed.

All reviewing managers (second line managers and above) are expected to:

• Implement the PBC program.

• Host and facilitate a team-based decision making session with your direct reporting managers.

• Ensure fair and equitable administration of the PBC process across the organization.

• Review employee goals to ensure alignment with XYZ's business goals and values.

• Review overall assessments and ratings.

Demonstrated all capabilities with Moderate supervision

Questions to Consider

.1 Demonstrated technical knowledge of one major platform, process, sub-module or architecture to develop solutions

1. What IT platform, process, sub-module or architecture have you demonstrated technical knowledge of? 2. How did you demonstrate your knowledge? 3. What were you responsible for? 4. What functionality did you use/acquire? 5. What depth of technical knowledge has been demonstrated

.2 Provided analytical support to develop or implement solutions

1. What solution did you develop or implement? 2. What analytical support did you perform to contribute to the solution? 3. How did your contribution influence the solution?

.3 Delivered quality work products, that met client specific needs, in two of the following areas of a system lifecycle: - analysis - design - construction - testing - implementation - support and maintenance

1. What work products did you deliver? 2. How did you ensure they were quality work products? 3. What two areas of the systems lifecycle were you involved in? 4. How did the work product meet the client's needs?

.4 Used common processes shared across XYZ and/or client organizations, disciplines and cultures and developed relationships outside immediate team to effectively complete tasks

1. What organizations, disciplines and cultures have you interacted with on the project? 2. What common processes did you use? 3. What relationships outside the immediate team did you develop? 4. How did these relationships help to effectively complete tasks?

.5 Used methodologies in solution development/ implementation

1. What solution development/ implementation were you responsible for? 2. What methodologies did you use? 3. How was the result perceived by the team/client?

.6 Analyzed technical problems and created solutions using existing tools and techniques in area of expertise

1. What is your area(s) of expertise? 2. What methodologies, tools, training courses, techniques and knowledge resources have you used? 3. What technical problems did you analyze and how did you use the tools and techniques to analyze technical problems? 4. What solutions did you create and how did you use the tools and techniques to create solutions?

Mid term review

Mid term review is done every middle of the year. The employee have to submit there

results in PBC tool. Manager evaluates the results with respects to the goals and gives

advice or step required to achieve the goal.

Self assessment: Before submitting final PBC employees are asked to go through the self assessment. In

Self assessment a questionnaire is given to the employee. The employees have to fill the

answer to the question and submit it to the manager; the above table is an example of the

same. Self assessment does not effect the appraisal. It helps the manager know what the

employee has done.

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