“A Project report on PMS of Reliance Industries”

Project Report Submitted in Partial Fulfillment of The Requirements

Of The Degree Of

Master of Business Administration

Under the supervision of

Dr. Swetalina Mishra

Subject Name: - Performance Management

Subject Code: - MGHR2317

Submitted By

Jawed khan (210402100003)

L S Mithlesh Nayak(210402100005)

Deepak Jyoti Kar (210402100012)

Abhijit Satapathy (210402100023)

CENTURION UNIVERSITY OF TECHNOLOGY & MANAGEMENT

Dist. Khordha, Bhubaneswar, Odisha, Pin-752050

INTRODUCTION
Reliance Retail is the retail initiative of Reliance Group. It has built up valuable
relationships with customers in a short span of time by providing them with
outstanding services, superior quality, and exceptional experiences across all stores.
Since its initiation 2006, Reliance Retail has developed to take into account a number
of clients, and a great many agriculturists and merchants. Reliance Retail serves more
than 2.5 million clients consistently, and its dedication program, Reliance One, has the
support of more than 6.75 million clients. Our across-the-nation system of retail outlets
conveys a world-class shopping environment and unmatched client experience fueled
by our best-in-class innovation and consistent production network framework.

Employee studying and development begins to happen:

Given that most overall performance management structures require managers and
employees to decide on a development plan, personnel enjoy real non-public
improvement and end up more engaged with the enterprise. They sense a part of the
organization and start to remember the fact that they and the organization are
interdependent. The corporation is growing the worker and the employee is working
closer to developing the corporation with the aid of accomplishing its dreams. The
majority of overall performance management structures are capable of providing
graphical compliance reviews. Consequently, the placing of objectives and
improvement plans for personnel can now be not noted. Employees see real planning,
are concerned with placing significant objectives and feature input into personal
improvement plans which gain both themselves and the corporation. In all, these
consequences result in an engaged body of workers who are extraordinarily committed
to achieving real results for the business enterprise.
Performance Management System:-

Performance management is a procedure with the aid of which managers and personnel work
collectively to devise, screen, and evaluate an employee’s work targets and general contribution
to the enterprise. Extra than just an annual performance assessment, performance management is
the continuous technique of putting targets, assessing development, and offering ongoing
education and comments to make certain that employees are meeting their targets and
professional dreams

A powerful overall performance control system will:-

● Be job specific, masking a vast variety of job with in the business enterprise

● Align along with your agency’s strategic route and tradition

● Provide an accurate image of each employee’ performance

● Encompass a collaborative procedure for placing goals and reviewing performance

based totally on two-manner communication among the employee and supervisor

● Display and degree outcomes(what)and behaviors(how)

● Discover areas of improvement and establish plans for enhancing overall

performance

● Aid personnel in attaining their work and professional desires by figuring out

education wishes and development possibilities

Management support to behave upon the results of the overall performance management system
is also necessary to make sure that proper overall performance is recognized, inadequate overall
performance consequences within the essential aid and/or schooling to enhance performance and
continuously negative overall performance consequences in an alternate of duties or termination,
as appropriate.
By performing common performance critiques, visibility is accelerated dramatically.
Areas of non-overall performance get hold of lots of extra consciousness and attention
and troubles may deepen plenty faster. Adjustments to objectives or methods can then
be made to make sure expectations may be met. Alternatively, expectations can be
modified as suitable. By reviewing extra often, all managers and personnel start to
devise and execute to certainly concept out goals. This affects higher resource control
and allows managers to work at the enterprise, nonvoting the enterprise.

Mission

● To provide the best and most value-adding advice within our advisory

expertise areas

● To be an independent sparring partner and to provide excellent advice for our

clients within our advisory expertise areas

● Reliance’s activities shall be of benefit for both our clients – first and foremost

– and for our collaboration partners and employees.

Vision

● To be our client’s first call and preferred collaboration partner within our

advisory expertise areas

● To consistently exceed our client’s expectations for professional and value-

adding advice

● Our objective is long-standing and trustful client relationships created via

excellent advice and service.

Values
We are governed by our fundamental values:
Quality: We do not compromise – we have a passion for the best quality
Innovation: We are innovative and wish to enthuse our clients
 Ambition: We set high objectives and push to achieve the best results
Honesty: We are honest towards our clients, also when it may be unpleasant to hear
our true advice
Integrity: We keep our word, guard confidentiality, and maintain a high level of
integrity

PERFORMANCE APPRAISAL SYSTEM AT RELIANCE

Employees want to be appreciated for the hard work they have put in and too like
performance evaluation provides the mechanism for creating a pay-for-performance
culture within an organization which further ensures the creation loyal, result-oriented,
and motivated workforce

At Reliance Retail, Performance Evaluation is the formation process through which an

employee’s contribution (performance, competencies) is appreciated with reference to
established goal sunder taken over a period of time to establish the employee’s
performance, the needs of his development and suggest improvement through a
structured process

Objectives

➢ To assess the performance of employees against goals

➢ To identify the training and developmental needs of the employees

The performance management cycle of Reliance Industries consists of the

following steps:-

Goal Setting: The first step in the performance management cycle is goal setting. The company
sets specific, measurable, achievable, relevant, and time-bound (SMART) goals for each
employee based on their role, responsibilities, and individual capabilities.
Performance Planning: Once the goals are set, the next step is performance planning. In this
step, the company defines the key performance indicators (KPIs) for each employee, which will
be used to measure their performance.

Performance Review: After the performance planning, the company conducts periodic
performance reviews, typically on a quarterly or half-yearly basis. During the review, the
employee's performance is evaluated against the set goals and KPIs. The employee is given
feedback on their performance and areas for improvement.

Performance Appraisal: Based on the performance review, the employee is appraised, and their
performance is rated on a predefined scale. The rating is used to determine the employee's
compensation, bonuses, promotions, and other rewards.

Performance Development: Once the appraisal is completed, the company develops a

performance development plan for the employee. This plan includes training, coaching,
mentoring, and other development programs to help the employee improve their performance.

Performance Renewal: The final step in the performance management cycle is performance
renewal. In this step, the employee's goals and KPIs are renewed or modified based on the
changing business requirements. The cycle starts again from step 1, and the process repeats.

Overall, the performance management cycle of Reliance Industries is a well-structured and

effective process that helps the company align its employees with its goals and objectives, and
enables them to continuously improve their performance.

The performance management process at Reliance Industries includes: -

Goal Setting: At the beginning of each performance cycle, employees set SMART (specific,
measurable, achievable, relevant, and time-bound) goals that align with the organization's
objectives.
Mid-Year Review: Halfway through the performance cycle, managers and employees meet to
review progress against the set goals, identify areas of improvement, and make any necessary
adjustments.

Performance Evaluation: At the end of the performance cycle, managers evaluate employees'
performance against the set goals, using a performance rating scale.

Feedback and Coaching: Managers provide employees with constructive feedback on their
performance and offer coaching and development support to help them improve.

Rewards and Recognition: High-performing employees are recognized and rewarded for their
contributions to the organization through various incentive programs.

Reliance Industries also uses a performance management system that enables managers to track
and analyze employee performance data, identify trends, and develop strategies for improving
organizational performance.

Components of the Performance Management System:

The performance management system at RIL is made up of several components,
including:

Performance Planning: This involves setting performance goals and objectives for
employees, and aligning them with the company's strategic objectives. The goals are
SMART (specific, measurable, achievable, relevant, and time-bound) and are set in
consultation with the employee's manager.

Performance Monitoring: Regular monitoring of employee performance is essential

to ensure that employees are on track to achieve their goals. At RIL, performance
monitoring is conducted on a quarterly basis, and employees are provided with regular
feedback on their progress.
Performance Evaluation: At the end of each year, a formal performance evaluation
is conducted, which is based on the goals and objectives set at the beginning of the
year. The evaluation is conducted by the employee's manager and takes into account a
range of factors, including the employee's performance against their goals, their skills
and knowledge, and their overall contribution to the company.

Performance Improvement: If an employee's performance is below expectations, a

performance improvement plan is developed to help the employee improve their
performance. The plan includes specific goals and objectives, as well as a timeline for
improvement. Regular monitoring and feedback are provided to ensure that the
employee is making progress.

Performance Rewards: At RIL, employees are rewarded for their performance

through a range of mechanisms, including salary increases, bonuses, and promotions.
The rewards are linked to the employee's performance against their goals, as well as
their overall contribution to the company.

Benefits of the Performance Management System:

The performance management system at RIL has several benefits, including:

Increased Alignment: The performance management system ensures that employee

goals and objectives are aligned with the company's overall strategic objectives. This
helps to ensure that employees are working towards the same goals, and that their
efforts are contributing to the success of the company.

Improved Performance: Regular monitoring, feedback, and evaluation of

performance help to identify areas where employees can improve. This helps to ensure
that employees are performing at their best, and that they are continuously developing
their skills and knowledge.

Increased Engagement: The performance management system helps to create a

culture of continuous learning and improvement, where employees are encouraged to
take ownership of their own development. This helps to increase employee
engagement and motivation.

Improved Decision-Making: The performance management system provides

managers with the information they need to make informed decisions about employee
performance, development, and rewards. This helps to ensure that decisions are based
on objective criteria and that they are fair and transparent.

Increased Accountability: The performance management system helps to ensure that

employees are accountable for their performance. By setting clear goals and
objectives, and regularly monitoring and evaluating performance

Design of the Performance Management System

RIL's PMS is designed to be comprehensive and integrated, with a focus on ensuring
that individual goals are aligned with the company's strategic objectives. The system
is based on a balanced scorecard approach that includes financial and non-financial
measures of performance. The balanced scorecard approach helps RIL to assess its
performance from multiple perspectives, including customer, financial, internal
processes, and learning and growth.

The PMS has several components, including goal setting, performance monitoring,
feedback and coaching, and rewards and recognition. The goal-setting process begins
with the identification of strategic objectives, which are cascaded down to individual
business units and departments. Individual goals are then set based on the strategic
objectives and are reviewed periodically to ensure that they remain relevant and
aligned with the company's goals.
Performance monitoring is done through regular check-ins and performance reviews.
Check-ins are informal discussions between managers and employees to track
progress toward goals and provide feedback. Performance reviews are formal
evaluations that are conducted annually and are based on a comprehensive assessment
of the employee's performance over the past year.

Feedback and coaching are an integral part of the PMS and are aimed at helping
employees improve their performance. Managers provide regular feedback to
employees on their progress toward goals and identify areas for improvement.
Coaching is provided to help employees develop new skills and improve their
performance.

Rewards and recognition are based on the employee's performance over the year and
are designed to promote a culture of accountability and performance excellence. The
rewards include monetary incentives, promotions, and opportunities for development
and growth.

Implementation of the Performance Management System:-

RIL's PMS is implemented through a top-down approach, with senior management
setting the strategic objectives and cascading them down to individual departments
and employees. The system is supported by a robust technology platform that enables
goal setting, performance monitoring, and feedback.

The goal-setting process is facilitated through an online system that allows employees
to set and track their goals. The system also provides managers with visibility into
their employees' goals and progress toward achieving them.

Performance monitoring is done through regular check-ins and performance reviews,

which are also facilitated through the online system. The system provides managers
with a comprehensive view of their team's performance and enables them to identify
areas for improvement.

Feedback and coaching are provided through regular interactions between managers
and employees, as well as through formal coaching sessions. The coaching sessions
are designed to help employees develop new skills and improve their performance.
Rewards and recognition are based on the employee's performance over the year and
are facilitated through the online system. The system enables managers to evaluate
their employees' performance and recommend rewards and recognition based on their
performance.

Impact of the Performance Management System : -

RIL's PMS has had a significant impact on the company's performance. The system
has helped to align individual goals with the company's strategic objectives and has
fostered a culture of accountability and performance excellence.

The PMS has also helped to promote continuous learning and development, with
employees receiving regular feedback and coaching to help them improve their
performance. The system has also enabled employees to track their progress toward
their goals and has provided managers with a comprehensive view of their team's
performance.

PERFORMANCE APPRAISAL PROCESS

This is the point at which the execution of the employee survey demand is talked about
in an intensive subtle element, with the supervisor imparting the shortcomings and
qualities seen in the employee thus, furthermore recognizing open doors further
representative to grow professionally.
Pre-Appraisal Process Steps:

● Employee signs onto R Connect and clicks on the PMS link

● Proceeds with validation of basic information,

● If any errors in the data are observed, the respective TE manager is formed

about the same. The data is corrected and a new form with the correct details is
sent

● Employee begins with the Self Appraisal

Performance Appraisal process

At this stage, Reliance Industries has a unique step to conduct self-appraisal first and
part appraiser if required in the process. Only after getting confirmation from the
Supervisor’s supervisor, the normalization process begins

OUTPUTS OF PERFORMANCE APPRAISAL SYSTEM:-

Training and development

After the complete appraisal process theoretical ways a need for conducting training
need analysis for each and every employee of the organization

As per the performance assessment and comp gaps, the training programs are drafted
which can be into three stages

● Job Rotation/Job Reassignment:He/she is given a period of a week to perform

different role in relation to their current job profile so as to make them

competent to perform a new role and adjust to a new environment

● Coaching: This type of formal/ informal training is essential for entry-level/mid level
 o Employees who establish a healthy and competitive environment for
work inside the organization.

● Training Programs/seminars: These programs help in motivating employees to

o perform at par and develop the required skill set which will enhance
their current and future performances

Salary Increments As per the performance review and discussion with the supervisor(s) the
employees on the basis of positioning on the contribution matrix are given some monetary
benefits which are extended with additional rewards.

LIMITATIONS IN RELIANCE FRAMEWORK

● Forced distribution system

o Employee caliber is not dependent on results achieved but the presence

amongst peers and it can degrade teamwork spirit and creativity which
will critically impact the Organizational performance.

● Bias by the direct reporter since there is no mechanism to check if the reason

discrepancies or any kind of prerequisites in the mind of the manager

● Part Appraiser bias

o This is a clear case of “Halo effect “on the mind of the employee

● Post discussion stage there is no discussion of the results with the employees

because of which they are unknown to their performance ratings

Conclusion: -

The performance management system used by Reliance Industries is a comprehensive

framework that aligns employee performance with the organization's goals and objectives. The
PMS comprises several components, including goal-setting, performance feedback, performance
appraisal, performance improvement plan, and career development. The implementation of the
PMS involves several steps, including designing the PMS, communicating the PMS, goal-
setting, performance feedback, performance appraisal, performance improvement plan, and
career development. The PMS is evaluated regularly to ensure its effectiveness, and necessary
adjustments are made based on feedback and performance data.