performance appriasal - human resource subject (TYBBA)

1. Performance Appraisal

2. Rank & Yank strategy involves comparing and ordering
employees into predefined categories
Forced
Distribution Forced
Ranking
This system places pre-determined % of
employees into performance category.
• 20% - Excellent performers
• 70% - Average performers
• 10% Low performers
Assigns a numerical score to each
employee and lists them from higher
performer to the lowest performer

3. “Rank & Yank "system is good for differentiating employees,
but can be troublesome for HR
Situation
Mr Jack Welch had
the vision of a large
company with the
agility of lean
organization and high
performance staff.
Action
GE implemented forced
ranking to identify their
superstars, vital workers
and the weakest links. The
ranking systematically
eliminated the below
average performers.
Result
GE has made forced
ranking a part of their
performance based
culture. Employee accept
the program and are
motivated to increase
their rank
10% 70%
20%
Weakest Link Vital Performers Superstars

4. “There is merit in forced ranking, but it has to be
done in an intelligent way”
- Vice President, Professional Service
Rank based on objective measure
Be prepared for some star performers to leave.
Fits with departmental culture
Keep ranks private when they are being used for salary,
promotion, bonus, or termination decisions

5. The score & ranks for all employees
are publicly available to everyone
1. Can embarrass
bottom performers
2. Demoralize
employees
3. Competition can
turn unfriendly.
1. Encourages
friendly
competition
2. Recognizes top
performers.
3. Sets standard for
other employees
1. Avoids the cons of
public ranking.
2. Employees know
where they stand.
3. Improvement
objectives can be
set.
1. The ranking may
not be a true
reflection of
performance.
The scores & ranks are shared between
employees and their manager
1. Employees are
unaware that a
ranking is being
applied
2. Avoids defensive
reaction from
employees.
Employees don’t
know where they
stand .
2. Reward decisions
are not transparent
The scores & ranks are shared among
the management team

6. Balanced Scorecard
• Introduced by Robert Kaplan and David Norton
• Evolved to become more workable in practice
• Performance management tool
• Used to keep track of the execution of activities
• One of the best known of several such frameworks.

8. How it is used
Translating The Vision
Communicating and Linking
Business Planning
Feedback and Learning

9. Pros & Cons of Balanced Scorecard
1. Presents organizational goals
in a single page
2. Bridge the gap between
goals and how day to day
activities
3. Raises innovation and
process improvement methods
4. Straightforward enough to
be used by managers
1. Direct financial analysis of
economic value or risk
management.
2. Easy to reach but hard to
quantify.
3. The goals may be re-
interpreted to the current state
of affairs to meet success or
avoid failure.

10. Mahindra & Mahindra
Mahindra & Mahindra Limited is an Indian multinational
automobile manufacturing corporation headquartered in Mumbai.
It is one of the largest vehicle manufacturers by production in India
and the largest seller of tractors across the world

11. Performance Management System In
M&M Ltd
Strategy, Vision, Mission & Budget
Business Goals
Organizational Objective
Departmental/ Functional Objectives
Role/ Individual Objective
Key Result Area (KRA)

12. Departmental Goal Setting
“Balanced Score Card approach”
• Customer
• Internal Processes
• Learning & Development
• Financial
• How do customers see us? (Customer perspective)
• What must we excel at? (Internal processes perspective)
• Can we continue to improve and create value? (Learning and Development
perspective)
• How well do we look to our stakeholders? (Financial perspective)
It provides answer to four basic questions

13. Individual Goal Setting
Communication
Workshop
KRA
Setting
Mid-Term
review
Performance
Appraisal
(Review)
Feedback
&
Counseling

14. Thank you
(Group 7)