PERFORMANCE MANAGEMENT SYSTEM

AT BHARAT HEAVY

ELECTRICALS LIMITED (BHEL)

BHARAT HEAVY ELECTRICALS LIMITED

Largest engineering and manufacturing enterprise in India in the energy- related/infrastructure sector.

One of the nine large Public Sector Undertakings known as “Navratnas” or “nine jewels”.

Manufactures over 180 products under 30 major product groups.

Caters to core sectors of the Indian Economy viz., Power Generation & Transmission Industry, Transportation, Telecommunication, Renewable Energy, etc.

HUMAN RESOURCES AT BHEL

Every employee is given an equal opportunity to develop himself and grow in his career.

Continuous training and retraining, career planning, a positive work culture and participative style of management have engendered development of a committed and motivated workforce.

The greatest strength of BHEL is its highly skilled and committed 43,636 employees.

OBJECTIVES OF PMS AT BHEL To recommend new KRAs. To identify specific training and development

requirements of individual employees. To assess the overall organisational performance. To identify the better performing employees who

should get the majority of available merit pay increases, bonuses, and promotion.

To identify the poorer performers who may require some form of counseling.

To identify and communicate performance expectations and goals and then ensuring the realization of those goals.

PERFORMANCE

MANAGEMENT

SYSTEM AT BHEL

NON- EXECUTIVESThrough ACR

EXECUTIVESThrough eMap

PERFORMANCE APPRAISAL FOR NON-EXECUTIVES Performance appraisal for non executives

is done by using Annual Confidential Reports (ACR).

This report is prepared by a controlling officer.

Controlling officer rates the performance on a 4 point scale –

Poor Good Very good Outstanding

1 2 3 4

CONTD… Rating is done on overall job related

parameters like attitude towards work, punctuality, sincerity, etc.

This report is then approved by the Head of Department.

HOD has the authority to change the rating given by the appraiser, if desired.

PERFORMANCE APPRAISAL FOR EXECUTIVES The performance appraisal done in BHEL for

executive is called MAP (moving ahead with performance) system of performance appraisal. MAP was introduced in BHEL in the financial year 2002-2003.

eMap is for BHEL employees to do performance appraisals for the current performance cycle (March – April).

IMPORTANT FEATURES OF MAP It addresses the objectivity, transparency and

consistency across various units of BHEL around the country, through normalization process.

It reduces subjectivity and individual biasness. It focuses on the growth and development of the

employee. The development plan is build with careful thought process using:

Training of the employee Well defined appraisal system Review process (mid and year end)

NORMALIZATION Normalization is the process of aligning the distributionof individual performance scores to the performancelevel of the department, unit and company in a definedPerformance Cycle.Process – Corporate HR will input the final scores into the MAP

Normalization software to generate the Final Performance Rating for Appraisees

Final Score data of all Appraisees      Table of Distribution by Performance Level     The Final Performance Rating will be communicated to

each Departmental Head and  all Appraisees will be informed of their Final Performance Rating.

Unit / Business Sector Draft Budget End February

Off-line Performance Planning

March – Mid April

Appraiser ONGOING FEEDBACK Appraisee

Mid Year Review

September- October

On – LinePerformance PlanningMid April- End April

Normalization and scoreMay

Final Review and Feedback

April

PERFORMANCE CYCLE AT A GLANCE

KEY PEOPLE

The key people involved in the process of emapping are: Appraisee Appraiser Reviewer HOD

Role Overview (Appraisee) Identify appropriate KRAs, request for new KRAs (if

required), Propose an action plan for achievement of each KRA and Assign a weightage for each KRA.

Conduct self-appraisal to evaluate performance on KRAs

If required, initiate request for Edit Plan Discuss performance with Appraiser and seek

feedback on performance Finalize with Appraiser actual achievement against

targets.

Role Overview (Appraiser) Every executive who assesses the performanceof one or more Appraisees that report tohim/her is an Appraiser. Role: Identify appropriate URR for Appraisee , Approve

weightages for KRAs and Discuss action plan defined for each KRA by Appraisee.

Review the self-appraisal submitted by Appraisee.

If Edit Plan has been requested for by Appraisee, evaluate the request and forward it to Reviewer

Appraise Behavioral Traits. Discuss performance with Appraisee and provide

feedback and coaching.

Role Overview (Reviewer)

Appraisers’ Appraiser, who is responsible for reviewingthe entire performance process, is the Reviewer. Role: Resolve any conflicts between Appraisee and

Appraiser. Forwarding request for ‘Edit Plan’ to concerned Head

of Product/ Function, if reviewer agrees to it. Review appraisal by the Appraiser on Appraisee’s

Performance and Development. Provide final sign-off on actual achievement against

targets. Review appraisal of Behavioral Traits of Appraisee

done by Appraiser.

Role Overview (HOD)

Approve request for new KRA’s.

Edit Plan (mid – year review).

PERFORMANCE APPRAISAL PROCESS

PERFORMANCE PLANNING

Workflow of Performance PlanningPhase :   Unit HR maps appraisee to suitable URR. Appraisee makes plan for the year. Submission by Appriasee. Appraiser sees plan and accepts OR Appraiser

Discusses plan with Appraisee. Appraiser Accepts and Submits plan. Reviewer Approves Plan. Plan Submitted.

Creating the Performance Plan The Performance Plan of an individual essentially

consists of one section – KRAs. This includes:

1. Selecting the KRAs

2. Action Plans for KRAs

3. Assigning Weightage

MID YEAR REVIEW PHASE

Workflow of Mid-Year Review Appraisee does self appraisal and identifies

competencies for development Submission by Appraisee Appraiser sees plan and gives his

comments/feedback Appraiser submits Mid year Review completed

FINAL REVIEW PHASE

Workflow of Final Review   Appraisee does self assessment of KRAs and

gives the achievement Appraisee submits Appraiser gives his assessment of KRAs and rates

the appraisee on Behavioral Traits Appraiser submits Plan goes back to Appraisee for acceptance/

rejection of Appraiser’s Review.

Contd… Appraisee accepts or requests for discussion with

Appraiser After Discussion, Appraiser and Appraisee submit

the Final Review Final Review goes to Reviewer for Final Approval Reviewer gives his final assessment on KRAs and

Behavioural Traits Reviewer submits Final Review Complete and Final Score gets

calculated in the system

WHY PERFORMANCE APPRAISAL? Directly related with the promotions of the

employees. To relate employee’s performance with

PRP (performance related pay) while giving Plant Bonus.

To identify training and development needs, if any.