SELECT A COMPANY OF YOUR CHOICE.

DESIGN A PERFORMANCE
APPRAISAL SYSTEM FOR 2 DIFFERENT LEVELS OF EMPLOYEES

PERFORMANCE EVALUATION FOR RELIANCE

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and progress of
an employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and potential
of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and
an important rating of an employee’s excellence in matters pertaining to his present job and
his potential for a better job.” It is a structured method of formally and objectively evaluating
employees’ performance with respect to their objectives.
For an organization the aim should not be just to have the best people, but also to retain them
and get best out of them. Employee Performance management includes planning work and
setting expectations, developing the capacity to perform, continuously monitoring
performance and evaluating it.

An effective Performance Management System should achieve the

following:-

 Review the employment cycle of every employee,

 Beginning with the recruiting process,
 Employee development,
 Ending with effective exit interviews.
 Employee’s knowledge, skills, and abilities with the organization's human capital
needs and business objectives.
 Provide managers and employees with the tools necessary to focus on short-term and
Long-term goals that contribute to both career and organizational success.

ABOUT THE COMPANY

Reliance Limited formerly is an Indian multinational automotive manufacturing company
headquartered in Mumbai, India and a subsidiary of the Tata Group. Its products include
passenger cars, trucks, vans and coaches. It is the world's eighteenth-largest motor
vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus
manufacturer by volume. Reliance was ranked as India's 3rd Most Reputed Car
manufacturer in the Reputation Benchmark Study - Auto (Cars) Sector, launched in April
2012.Reliance has been ranked 314th in the Fortune Global 500 rankings of the world's
biggest corporations for the year 2012. Reliance is a cross-listed company. Its stock trades on
the Bombay Stock Exchange and the New York Stock Exchange as TTM. Tata also has
franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and
Senegal .Tata has dealerships in 26 countries across 4 continents. Though Tata is present in
many countries it has only managed to create a large consumer base in the Indian
Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing
consumer base in Italy, Spain and South Africa. Reliance has more than 250 dealerships in
more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest
Sales and Service Network after Maruti Suzuki and Hyundai.
In 2004, Reliance acquired Daewoo Commercial Vehicle Company of South Korea. To
expand the product portfolio Reliance recently introduced the 25MT GVW Tata Novus from
Daewoo’s (South Korea) (TDCV) platform. Tata Daewoo is the second-largest heavy
commercial vehicle manufacturer in South Korea. Reliance has jointly worked with Tata
Daewoo to develop trucks such as Novus and World Truck and buses including GloBus and
Star Bus. In 2012, Tata started developing a new line to manufacture competitive and fuel
efficient commercial vehicles to face the competition posed by the entry of international
brands like Mercedes-Benz, Volvo and Navistar into the Indian market.

2 LEVELS TO EVALUATE THE PERFORMANCE

APPRAISAL TECHNIQUES ARE:
 SALES EXECUTIVE
 SENIOR MANAGER

SALES EXECUTIVE:
For the sales executive different methods can be used as follows:
1) Field review method
2) MBO

Field review method-In this method evaluation is done on the basis of 2 phases so as
to to reduce the biasness and to reach at the consensus. Phase I: Interviewing the line
managers to evaluate their respective employees. This phase is handled by HR functionary.
Phase: II: HR functionary, generally, appoints a small group of rater to rate the each and
every employee for every managerial unit.

MBO- It is a system wherein the superior and subordinate managers of an organization

jointly define their common goals, define each individual’s major areas of responsibility in
terms of results expected to him and use these measures as guides for operating the unit and
assessing the contribution of each of its members. It establish a link between organizational
and individual performance and it is easy to implement and measure. Employees feel
motivated and it enhances the performance.

Evaluation of the Measurement System

 Reliance should conduct the performance appraisal in the month of April annually.
Employee need to set goals yearly in the month of April.
 Employee has to select all 4 verticals and under each vertical, choice of objectives and
challenge's are given and employee has to choose.
 One of the additional goal can be set by the employee.
 Quarterly Meeting will be done by immediate manger and it will be of purely
“Professional Discussion”. Employees has to take initiative of its own and invite
manager for this discussion.
 Quarterly Meeting will be in June, September and December. In meeting, Graph
Representation of employee performance will be shared by manager quarterly. And
Guidelines and problem faced in the critical situation to be discussed.
 Based on their performance, increments will be given in their pay.
 If an employee achieves or exceeds the target given along with their team will be
provided with attractive cash and incentives.
 They should specifically targets working women and men who could be the potential
consumers.
 They should have its own training division for its entire employee Development.
Employees will be given 20 days of training to enhance their skills requirements.

APPRAISAL & REWARDAPPRAISAL

 New Appraisal System based on KRAs & Targets·

 Review of Targets at regular Intervals·

REWARD
o Promotions based on Performance·

o Productivity & Profit-linked Incentive Schemes·

o Mainly involved monetary incentives

Suggestion’s
From my point of view, adoption of “Management by Objective” and “Field review
Method” is perfect for RELIANCE SALES EXECUTIVE POSITION because –
It believes in Employee Driven Process.
Transparent Process
No partiality will be seen in the whole process. Fair decision will be made.
Employee can stand of his own words for its objectives and goals.

SENIOR MANAGER:
For the senior manager different methods can be used as follows:
Balance scorecard method
1.
360 Degree appraisal method
2.
Balance scorecard method-
The balanced scorecard (BSC) is a management system that enables organizations to enhance the clarity of their
vision and strategy and enables them to translate the same into action. It is a management methodology that
uses a range of performance measures to define business goals and monitor performance drivers to achieve
strategic objectives.

360 Degree appraisal method-

Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for
pay increases. Most 360 Degree Feedback system contains several common features.
Appropriate parties – peers, supervisors, subordinates and customers, for instance –
complete survey, questionnaires on an individual. 360 degree feedback is also known
as the multi-rater feedback, whereby ratings are not given just by the next manager up
in the organizational hierarchy, but also by peers and subordinates. Appropriates
customer ratings are also included, along with the element of self-appraisal. Once
 gathered in, the assessment from the various quarters are compared with one another
and the results communicated to the manager concerned.

Evaluation of the Measurement System

1. In 360 degree appraisal technique: SELF and MANGER EVALUATION FORM is

also there which is known as Employee Performance Review Form. In this, goals
are given with percentage weightage like –

a. Achieve Excellence in Project Delivery 50%

b. Achieving Excellence in Client Facing Skills 25%

c. Standardized Processes & Methodology for Key Service Offerings 25%.

2. Senior employees are judged from different perspectives and it helps them to
identify the changes required to be more acceptable, and it also helps them to
enhance their skills.
3. It reduces the biasness as subordinates as well the peers can judged the performance
of the senior level employees.
4. Appraisals that are based on Balanced Scorecard, can tracks the achievement of
employees at four levels -
 Financial perspective - contribution in terms of revenue growth, cost reduction
and improved asset utilization.
 Customer perspective - Looks at the differentiating value proposition offered
by the employee.
 Internal perspective -Refers to the employee’s contribution in creating and
sustaining value.

Learning and growth – are self-enhancing motivators.

APPRAISAL & REWARDAPPRAISAL

 People Development an important KRA

 Build & Sustain Relationships Idea Leadership
 Handling Complexity
 Superior Execution
 Drive for Results
REWARD

 Promotions based on Performance

 Both monetary as well as non-monetary incentives are involved(mainly non-
monetary)

Suggestion’s
From my point of view, adoption of “Balance scorecard” and “360 degree appraisal method”
is perfect for RELIANCE SENIOR MANAGER POSITION because:

• BALANCE SCORECARD is a good method. It give the clear picture of how performance
management process is done.

• 360 DEGREE APPRAISAL provides feedback from every perspective and reduces the
biasness at each and every level

Though 360 degree is not effective in India as people still hesitate to use this method because –

 The organizations are ruled as per hierarchy

 Subordinates do not open up about their boss.
 Managers Nature
 Power and Politics exists in organization
 Majorly, vertical communication (Top to Down).
But it could be one of the most effective methods for evaluating the performance of the senior
level employees.