HubTown - A_Designing a bottom up approach to Performance Management

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W16873
HUBTOWN (A): DESIGNING A BOTTOM-UP APPROACH TO
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PERFORMANCE MANAGEMENT
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I don’t know who my top performers are, and I don’t have the processes needed to identify them,
but if I want to grow, I need to know which people will help me take the organization forward!
Vimal Shah, managing director of Hubtown Limited
INTRODUCTION
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It was April of 2014. Vyomesh M. (Vimal) Shah, the managing director of Hubtown Limited (Hubtown),
had just sent a message to all employees regarding their annual performance appraisals. He was aware that
employees were unhappy about their appraisals and pay increments, and he had been thinking of ways to
implement a process to address this dissatisfaction.
Hubtown (formerly known as Ackruti City Limited) was one of India’s leading real estate development
companies. It was active in seven cities in western India, with a diversified business across residential and
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commercial spaces. The organization had witnessed slow growth in the past few years and was gearing up
for a leap forward. However, while it had been able to devise systems for managing operational processes,
it was finding it difficult to design and implement effective processes for managing people. As Geeta
Menon, head of human resources, mentioned, “We have tried to implement various performance
management and capability development processes in the past, but sustainability has always been an issue.
We need to have a system that will work and can be sustained.”
THE REAL ESTATE SECTOR IN INDIA

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The real estate sector played an important role in the Indian economy; it contributed around 6.5 per cent to
the gross domestic product (GDP) in 2012 and 6.3 per cent in 2013. This contribution was expected to
increase to 13 per cent by 2028. Of this contribution, housing made up the largest share, contributing around
This document is authorized for educator review use only by Momo Kromah, Other (University not listed) until May 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
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5–6 per cent of the GDP.1 Studies had found a high correlation (i.e., correlation coefficients of 0.9 and
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above) between GDP and real estate activity worldwide. India had seen relatively low GDP growth, high
interest rates, and negative consumer and business sentiments in the last few years. By financial year (FY)
2012–13, annual economic growth had slowed to its lowest in a decade.2 However, there had been a
continuous increase in the migration of people from rural to urban areas as they looked for jobs and growth
opportunities. For example, a survey conducted in India found the urban migration rate to be 35 per cent in
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2011;3 thus, there was significant room for the housing industry to grow. In a country like the United States,
despite housing needs being mostly satisfied, the industry contributed about 15.5 per cent to the GDP.4 In
India, the government was making efforts to reduce the shortage of housing through various development
schemes, including a slum rehabilitation scheme.5 However, about 70 per cent of Indians lived in rural
areas; the urban housing shortage was expected to continue as more people migrated to cities from rural
areas. One study indicated that the housing shortage in the beginning of 2012 affected 18.78 million people.6
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The real estate sector was gridlocked, with a plethora of rules and regulations at state and local levels, and
these were often opaque and at cross purposes. The start and completion of projects were dependent on
multiple regulatory requirements. Meeting these and obtaining various sanctions in time could significantly
affect the success of a project. For example, a project could not start until the land had undergone a clear
title transfer and ownership was unambiguous, and construction could not start until the local government
had sanctioned the building drawing.
While the sale of units was linked to the economic environment, sufficient cash flows were important for
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project continuity. Milestone completion by building contractors was linked to their receipt of timely
payments and the consistent availability of materials. Issues with local communities sometimes also arose
and delayed projects. For example, in slum rehabilitation projects, it was sometimes difficult to identify the
actual residents, and multiple residents often claimed the same slum tenement. For some projects,
restiveness related to environmental disturbances led to work stoppage.
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The real estate sector was traditionally dominated by small regional players with relatively low levels of
expertise and financial resources, who primarily operated in a seller’s market. Historically, this sector had
attracted high-net-worth individuals and other informal sources of financing, which had led to low levels
of transparency. However, the challenges of large and complex projects meant that the industry had slowly
consolidated. Now, instead of being highly fragmented, it had only a few major players. The industry
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1
“New Avenues in India’s Real Estate Sector,” Ernst & Young Global Limited, accessed July 27, 2014,
www.ey.com/in/en/industries/real-estate/ey-our-policy-environment-and-its-impact-on-indias-real-estate; KPMG, “Indian Real
Estate—Opening Doors,” 2014, accessed July 27, 2014, www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/
Documents/Indian-real-estate-Opening-doors.pdf.
2
Cushman & Wakefield, Housing: The Game Changer, January 13, 2014, accessed July 27, 2014,
www.cushmanwakefield.com/~/media/reports/india/HousingTheGameChanger.pdf; Hubtown’s financial year was from
April 1 to March 30.
3
Shirish Sankhe, Ireena Vittal, Richard Dobbs, Ajit Mohan, Ankur Gulati, Jonathan Ablett, Shishir Gupta, Alex Kim, Sudipto
Paul, Aditya Sanghvi, and Gurpreet Sethy, “India’s Urban Awakening: Building Inclusive Cities, Sustaining Economic
Growth,” McKinsey Global Institute, April 2010, accessed June 04, 2015,
www.mckinsey.com/insights/urbanization/urban_awakening_in_india; Sangita Kumari, “Rural–Urban Migration in India:
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Determinants and Factors,” International Journal of Humanities and Social Sciences 3, no. 2 (2014): 161–180.
4
Sanjay Dutt, “Can Housing Sector Lead India Back to Double Digit Growth?” moneycontrol.com, accessed July 27, 2014,
www.moneycontrol.com/news/real-estate/can-housing-sector-lead-india-back-to-double-digit-growth_1036482.html.
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Slum rehabilitation schemes had been introduced by corporations, notably in Mumbai. Land in urban slums was illegally
occupied by squatters. Under these schemes, developers constructed free housing for slum dwellers on a portion of land
and developed the rest for residential and commercial use. “Slum Rehabilitation,” Slum Rehabilitation Authority, Mumbai,
accessed July 27, 2014, www.sra.gov.in/pgeSlumRehabilitation.aspx.
6
KPMG, “Real Estate and Construction: Bridging the Urban Housing Shortage in India,” 2012, accessed November 7, 2016,
http://naredco.in/notification/pdfs/Urban-housing-shortage-in-India.pdf.
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responded to shifts in consumer preference and rising investor interest; leading companies had become
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more organized and transparent to leverage opportunities in the market.
The increasing complexity of projects required a higher level of sophistication in terms of project execution.
Managers needed new competencies in areas such as sourcing, contracting, project management, and value
engineering. Increasingly affluent customers demanded quality and value. Changing customer expectations
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led real estate companies to effectively leverage the talents, skills, and experience of their employees to
create more value for their customers. Thus, it was important for such companies to be able to compete for
talent. They also needed to retain, reward, and promote talent using appropriate systems and processes for
managing people.
HUBTOWN LIMITED
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Hubtown, incorporated in 2007, had been in existence for more than three decades. Vimal Shah and his
brother Hemant M. Shah began their partnership firm in 1977. Initially, they undertook civil engineering
jobs for government and defence services, and in 1986, they ventured into residential construction projects.
In 1995, they undertook their first slum rehabilitation project. Hubtown was listed on the Bombay Stock
Exchange and the National Stock Exchange in 2007.7 By FY 2013–14, it had 45 ongoing projects taking
up a total of 72 million square feet.
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A slowdown in the Indian economy led to increases in project debt service costs, sluggish demand, and
slower receivables, which narrowed profit margins (see Exhibit 1).8 Vimal Shah explained the challenges
faced by the industry and his company by noting, “We are in an industry where we control almost nothing.
If the economy improves, there is demand for residential and commercial space.”
To cope with the challenges of the changing business landscape, by 2014, Hubtown had consolidated its
businesses—which had been spread across many smaller projects—into a few larger and more complex
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projects so that it could better manage the external environment of opaque regulations and political and
non-state interference. The company expected that, in the next five years, it would double its revenue from
the previous ten years. The steps needed to sustain growth—through cost optimization, process
improvements, and the efficient management of working capital—had already been initiated by the
organization.
One of the major challenges the company faced was to ensure that it had adequate and capable employees
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to partner with during the consolidation and growth phase. Employees at lower levels were expected to
appropriately support the senior and top management, provide a new set of competencies that would be
required in the future, and rise to fill senior roles.
PEOPLE-MANAGEMENT CHALLENGES IN HUBTOWN
Vimal called Hubtown a technical company, in which specific engineering and project-management
skillsets were paramount. According to him, there were three major domains in the construction business.
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One was designing and constructing buildings. Another was obtaining timely government approvals. This
expertise was needed because almost 250 approvals were required from the government at various stages
of a construction project. The final domain, if the company was operating in a slum rehabilitation space,
7
Hubtown Limited was part of the Hubtown Group of companies, many of which were unlisted.
8
“Hubtown Limited Chairman Statement,” accessed August 14, 2014,
http://hubtown.co.in/pdf/Chairman%20Speech%2030.09.2013.pdf.
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was managing rehabilitation. Rehabilitation involved dealing with various stakeholders, such as the
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community, political parties, and local bodies, and managing the expectations of all these stakeholders
within each project’s time and cost budgets.
The senior management team was made up of about 30 people who had grown along with the company and
were considered technically competent. They were well established in the company, knew their jobs well,
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and frequently interacted with top management. They had dealt with the challenges of exponential growth
for a few years and were now dealing with urgent issues as the market declined. Thus, senior managers had
not found the time to hone their people-management skills.
As the company grew in size and complexity, the need to institute formal people-management processes
also grew. When there were fewer people, everyone’s performance was visible to everyone else, and
managers could manage by simply walking around. Now, there were layers of management, and the top
managers (the two brothers who had founded the company and three members of the next generation) were
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no longer in continuous touch with junior management. Work had to be delegated. However, because
people were used to working on their own, they found it difficult to delegate and let go. According to Vimal,
While we knew who was doing what when we were a 100-person company, we suddenly exploded
into a more than 600-person company, but we continued to operate as a small firm. Senior managers
felt that without them, a task would not be satisfactorily completed; hence they were hesitant to
delegate. No one knew how to delegate.
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There was no formal performance management system, and many problems began to appear due to this
rapid expansion. Employees’ performance had been treated as a matter of subjective interpretation and had
been related to their visibility to senior management, rather than to objective measures. Salary increments
had been based on these interpretations and perceptions. Employee who were perceived to be good workers
would receive higher increments than employees who were perceived to be less valuable workers. Even the
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definitions of good and poor workers were subjective; thus, employees could not predict whether their work
would be acknowledged or not. Visibility was very important to obtain increments and promotions.
The employees were spread over eight management levels (see Exhibit 2), and most of the employees (about
300) were concentrated in the lower three job categories (levels), L6–L8 (see Exhibit 3). Because Hubtown
was looking forward to consolidation and an upcoming growth trajectory, Vimal was conscious that he did
not know much about the company’s human capital. As he put it,
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I want to know who is promotable in my company. Competencies for tomorrow are different from
the current ones. We do too many things that are redundant for the current times. We deliver
through the personal heroics of some staff members and obtain results today, but this approach
cannot deliver volume. This is where the L6 roles become very important. I want to build
accountability and a results orientation across the organization. One of our major challenges has
been to create second and third levels of management, which is what L5 and L6 are. These are the
levels where the number of employees will grow. Because the focus at these levels is primarily
execution, without appropriate direction, people at these levels feel ignored.
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Performance Management Process: First Intervention
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In 2013, the organization engaged a consultant to design a competency model. The model had a set of core
competencies that were relevant to the entire organization. It also had sets of functional competencies that
were pertinent to each department. Three levels of proficiency were defined for each competency. However,
there were no rating scales to evaluate people against these competencies. The proficiency levels were more
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like descriptors for the three levels of management (senior, middle, and junior). Some assessments based
on this model were conducted for the senior-level management, but the output was not used for any purpose.
The performance management process (PMP) was expected to be based on key result areas (KRAs) with
measurable outcomes. Senior managers were expected to identify their own KRAs, which would then
cascade to the junior levels. However, supervisors were reluctant to set KRAs because, according to them,
they had very little control over output. For example, one project had been stalled due to interference by
local politicians. Setting project completion as a KRA would not have been successful because the matter
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required sensitive handling and prolonged negotiation at various levels.
The senior management had preferred to deliver results via personal heroics, opaque processes, and hazy
accountability, including many improvised decisions and actions. This work style had evolved when the
company was much smaller and every decision was cleared by the managing director. The notion of
spending time to plan work; define targets; and coach, mentor, and assess junior managers with the intention
of developing them had not been given much credence because this was not how senior management had
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grown into their own positions. As Vimal said, “They have poor people-management skills, and at their age
and given their stature in the company, they do not see the need to change.” However, the senior managers
were valuable to the company because of their technical expertise, and the company needed to find a
solution to train them regarding the people-related aspect of their jobs.
This initial version of the PMP could not be satisfactorily implemented, and there was no formal
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performance appraisal for FY 2012–13. Every employee had variable pay as a part of their cost to the
company. A bell curve was used to disburse performance-linked payouts, but there was no clear
understanding of which employees were the better performers. As a result, there was much dissatisfaction
in the organization. In order to address this matter, Vimal issued a letter explaining the criteria to be used
to revise salaries for FY 2014 (see Exhibit 4).
Performance Management Process: Second Intervention

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Employees liked working for Hubtown because of the opportunity to learn new skills and grow in their
fields. However, there was a strong feeling that merit did not necessarily translate into rewards. One
employee, whose job was to liaise with local government authorities to obtain appropriate land-use
permission,9 had this to say when asked about the last time he was appreciated:
I am seen as a rock-solid pillar of my department. We buy small parcels of land from individuals
and combine them to create required project sites of 100–200 acres. Because changes of ownership
in land sales are not always recorded in government records, in most cases, multiple owners turn
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up. This mess has to be cleaned up, the actual owner paid, and the others deftly handled. All such
work requires diligent application, constant liaison with the original title holders and government
officials, and immense perseverance. I have saved a great deal of money for the company by saving
on unnecessary litigation and back taxes. I am always commended for my job, but when it comes
to money, I am yet to see any.
9
In India, conversion of agricultural land to non-agricultural uses and purposes is a lengthy process.
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Vimal wanted an objective system for measuring people’s performance against set criteria so that they could
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be rewarded accordingly. As he said, “Those close to seniors, those with good networking skills, and those
who have given one-off smart deliverables in the recent past were likely to be rated more highly than others.
However, my business needs diligent application, not heroics.” He was also aware that earlier attempts at
a top-down, quantified approach to performance appraisal had not been successful. The organization needed
a process that would either address or bypass the challenges met by previous attempts to implement a formal
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PMP and that would drive a performance culture in the organization.
For these reasons, a bottom-up approach was considered appropriate. That is, Vimal thought those who had
been most affected by the company’s previously opaque performance management system would be more
likely to adopt an objective process than those who had very little stake in making the process successful.
Thus, Vimal decided that the PMP would first be implemented for employees at the L6–L8 levels—the
majority of employees. Senior managers would be trained to evaluate these people, but their own positions
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would not be affected. It was hoped that a process-based approach to managing and assessing performance
would gradually be accepted. Over time, this approach could then be extended from the junior levels to the
upper levels of the company.
DEVELOPING A PERFORMANCE MANAGEMENT PROCESS
While the company needed to bring objectivity to the system, most roles, especially at the lower levels,
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involved routine, activity-based tasks. For example, a document controller’s job was to ensure that
documents were stored and retrieved according to the rules. The employee in this role had to ensure that
documents such as architectural drawings did not become lost and were returned when they were lent out.
Similarly, the job of a computer operator (in the L7 category) was to enter data into an Oracle database and
other IT systems, prepare letters as per drafts, file hard and electronic copies of documents, photocopy and
retrieve documents, attend to calls and queries, coordinate with other departments for data, follow up on
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payments, and perform other miscellaneous work that was assigned from time to time. There were rarely
any exceptions, and no targets could be given for this type of job. As another example, a construction
supervisor (in the L6–L7 category) supervised day-to-day building activities, invited quotes from vendors
for various construction materials, ensured equipment maintenance for buildings was performed according
to project-management plans, coordinated with various departments, prepared reports, and addressed clients
grievances.
It was felt that, even if objective evaluation measures were identified, these measures would not be able to
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comprehensively assess performance in these roles. Given the challenges faced by the construction industry
and the difficulty in connecting employee behaviours with project success, Hubtown chose to adopt a
behaviour-based approach to performance management. This model emphasized both outcomes and
behaviours; while results might be specified at an organizational, team, or individual level, individual
behaviours could be monitored, appraised, and coached through a standardized process. Vimal decided to
enlist external assistance to develop a competency framework for use in performance management at the
junior levels.
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Identifying Enabling Behaviours
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Competencies, or enabling behaviours, were identified based on the various processes that required
employees to demonstrate distinctive behaviours. Because multiple designations within the same
department tended to follow similar processes, the Hubtown competency framework aggregated all profiles
conducting similar processes instead of designing a competency profile for each role. The following initial
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set of questions was raised:
 What does the employee do?

 What does the employee have to know in order to do it?
 How does the employee perform these jobs?
 Can the skills and competencies required to do these jobs be acquired within a reasonable time frame?
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All 304 employees at the L6, L7, and L8 levels were compared against a role analysis matrix (see Exhibit 5).
The organization initially identified 20 unique roles through this comparison and a discussion with Menon.
Then, 33 employees who were seen as superior performers in these roles were interviewed, using the
behavioural event interview technique,10 to collect data on roles, responsibilities, and behavioural indicators
of superior performance. To validate the data and understand the expected roles, responsibilities, and
behavioural indicators, a repertory grid technique11 was used in interactions with 13 reporting authorities
and subject matter experts. An interview with the managing director and top management team provided
input about the company’s future plans and challenges.
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Developing a Competency Framework
These interactions yielded a huge mass of data regarding the behaviours that were seen and desired in each
role. Analysts identified key phrases that indicated superior or negative behaviour, and these indicators
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were grouped based on behavioural or competency themes (see Exhibit 6). The detailed behavioural
indicators extracted from the collected data were used to develop a behaviourally anchored rating scale
across three levels of performance: level 1 (needs improvement), level 3 (desirable behaviours), and level 5
(superior behaviours). Care was taken to ensure that the language in the indicators was clear, direct, and
represented phrases that were frequently heard in the relevant interactions (see Exhibit 7).
Linking Role Profiles and Competencies

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The initial exercise was performed with the 20 identified roles, which were further grouped to form seven
role profiles (see Exhibit 8). All departments and designations in levels L6, L7, and L8 were linked to one
of these role profiles. While all the competencies were deemed important, competencies were prioritized
based on their relevance to given roles, and weights were assigned to the competencies based on their
priority. This created an evaluation framework that could be used to assess each employee as per the defined
role and competencies.
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10
This is a structured interview technique designed to identify behaviours that lead to outstanding performance and behaviours
that lead to typical performance. David C. McClelland, “Identifying Competencies with Behavioral-Event Interviews,”
Psychological Science 9, no. 5 (September 1998): 331.
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This is a technique in which people are asked to compare subordinates and colleagues to identify what differentiates them
from each other. The respondent is asked to label these qualities as positive or negative. Multiple comparisons yield a list of
positive behaviours that contribute to superior performance and a list of negative behaviours that hamper performance. Neil
Anderson, “Repertory Grid Technique in Employee Selection.” Personnel Review 19, no. 3 (1990): 9–15.
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Validating the Evaluation Framework
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The evaluation framework, role profiling, clustering, and capability weighting framework were presented
to about 45 reporting authorities, heads of departments, and top managers, who used the competency
framework to assess two employees across two distinct role profiles in order to evaluate the framework and
assess its usability first hand. Overall, the feedback was extremely positive. The assembly was divided into
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seven groups to discuss and identify appropriate competencies and weights across role profiles. For
example, there was a great deal of discussion regarding the appropriate weights to be assigned to various
roles in marketing, such as the sales team, marketing team, sales coordinators, and customer care team. The
nephew of the managing director, who was in his late twenties and headed the department, took the lead to
close the issue based on the actual expectations for each of these roles.
Feedback from this validation workshop led to some role profiles being subdivided, creating a total of 11
role profiles. A matrix was developed to link competencies and respective weights across each role profile
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(see Exhibit 9). The organization was advised to revisit this capability-weight matrix and redefine some
weights, if required, after the first round of appraisals.
Linking the Competency Framework to the Performance Management Process
Issues discussed in the workshop included whether to implement a 180-degree system (using both self-
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evaluations and supervisor evaluations) or to use supervisor evaluations alone. The importance of
performance diaries, linking the daily report system12 to quarterly appraisals, and performance
conversations in the form of discussions and feedback between supervisors and subordinates—both before
and after evaluations—were also discussed. Raters were encouraged to hold calibration discussions to
ensure evaluations were standardized, an escalation system was designed, and similar evaluation systems
were created across all levels.
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The participants in the workshop agreed that the availability of a competency framework would help them
understand the expectations of the organization and align their work behaviour with these expectations. It
would also provide both reporting authorities and the candidates with standardized expectations regarding
performance levels, which would increase the perceived fairness of the system. Participants also discussed
the likelihood of linking the competency framework to other human resources processes such as recruitment
and selection, training and development, career charting, and succession planning.
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Implementing the System
At this point, the performance management program had to be implemented within three weeks—by the
end of July 2014—so that the new process could be used to assess the performance of employees for the
first quarter of the year, April–June. Process corrections would be made before the program was used for
the second quarter.
Although buoyed by the feedback received during the workshop, Menon now had to design an
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implementation process for this system. She was aware of the failure of earlier systems, and she was
determined that the system should succeed this time. She had to design a performance management system
that appropriately mixed results orientation and competency orientation for each role profile. The
contextualized process and format had to be user friendly and easily automated, and both appraisers and
12
An electronic daily report system was introduced in early 2014. All employees were expected to submit their daily work
activities to their reporting supervisors, who were expected to sign off on these.
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those being appraised had to be trained to ensure acceptance and internalization of the process. User
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feedback would need to be sought after the first round of appraisals in order to make corrections as required.
However, Menon felt that the biggest challenge would be obtaining acceptance of a qualitative approach to
measuring employee performance. While she was convinced of the rationale behind this approach, she also
wondered if perhaps a more results-oriented approach, with clear measures, could have been used. Such an
approach would have been met with greater acceptance and would have been easier to explain and
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implement.
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EXHIBIT 1: PROFIT AND LOSS ACCOUNT OF HUBTOWN (IN MILLION ₹)
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Mar 2013 Mar 2012 Mar 2011 Mar 2010 Mar 2009
Income
Sales Turnover 3,140.8 2,648.6 2,877.8 4,410.3 4,371.9
Other Income 2,248.8 1,644.2 1,864.5 729.2 306.0
Stock Adjustments 0 0 1,048.4 1,908.0 1,504.9
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Total Income 5,389.6 4,292.8 5,790.7 7,047.5 6,182.8
Expenditure
Employee Cost 132.9 210.9 271.8 183.9 237.5
Other Manufacturing Expenses 619.1 −185.0 1,812.6 2,980.4 1,757.6
Selling and Admin Expenses 0 0 313.6 251.0 311.9
Miscellaneous Expenses 958.6 1,094.3 136.7 124.2 64.2
Preoperative Expenses Capitalized 0 0 −150.1 −125.3 −823.2
Total Expenses 1,710.6 1,120.2 2,384.6 3,414.2 1,548.0
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Operating Profit 1,430.2 1,528.4 1,541.6 2,904.1 4,328.8
Profit before Depreciation, Interest, and Tax 3,679.0 3,172.6 3,406.1 3,633.3 4,634.8
Interest 3,344.4 2,809.5 1,638.2 1,207.2 1,624.7
Depreciation 57.3 70.3 48.4 31.1 40.5
Other Written Off 0 0 162.7 9.7 36.2
Profit Before Tax 277.3 292.8 1,556.8 2,385.3 2,933.4
Reported Net Profit 306.6 398.5 1,714.8 1,737.9 2,702.5
Note: ₹ = INR = Indian rupee; all currency amounts are in ₹ unless otherwise specified; US$1 = ₹66.7 on November 3, 2016.
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Source: Adapted from “Profit and Loss Account of Hubtown,” moneycontrol, accessed October 3, 2016,
www.moneycontrol.com/financials/hubtown/profit-lossVI/AC24.
EXHIBIT 2: HUBTOWN GRADE LEVEL DESCRIPTORS FROM L1 TO L8 (MANAGEMENT)
Grade Title Levels of Contribution

Business Manager/Chief Executive Officer/Chief
L1 Senior President/President
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Operating Officer/Chief Financial Officer

L2 Executive Vice-President/Senior Vice-President Functional Manager
Sub-functional Manager/Managing Others
Where all three criteria are rated high:
1. Span of control
L3 Vice-President
2. Financial implications and sensitivity
3. Criticality/complexity of the role
4. Single point control/accountability
Managing Others
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Where any one criterion is rated high:

1. Span of control
L4 Assistant Vice-President
Managing Others
Where all criteria are rated medium or low:
1. Span of control
L5 Senior Manager/Manager
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L6 Deputy Manager/Assistant Manager Managing Self (Independently)

L7 Senior Executive/Management Trainee Support
Assistant/Computer Operator/Executive/
L7 Support
Receptionist/ Supervisor/Junior Engineer/Trainee
L8 Office Assistant/Driver/Pantry Staff Staff
Source: Company documents.
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EXHIBIT 3: TOTAL NUMBER OF HUBTOWN EMPLOYEES IN LEVELS L6–L8
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Level Designation Number of Employees
L8 Drivers and Office Assistants 55
Computer Operator/Document Controller/Assistant 32
Executive 71
Guest Relations Executive 6
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L7 Senior Executive/Management Trainee 20
Supervisor 40
Junior Engineer 4
Assistant Engineer 18
Deputy Engineer 14
L6 Assistant Manager 35
Deputy Manager 13
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EXHIBIT 4: HUBTOWN MANAGING DIRECTOR’S EMAIL POST-2013–14 APPRAISAL PROCESS
Dear All,
It gives us immense pleasure to announce salary revisions, effective 1/4/2014. We believe that all of us have performed
our roles as per our capabilities and dedication. We appreciate and applaud each and everyone’s effort in putting their
best foot forward.
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The following parameters are taken into consideration while deciding on the revisions:
 Education, depending on the need and nature of job/role

 Experience, indicating the skill levels required in the role
 Attitude, predisposition and inclination to take things positively
 Interaction with the external customers, giving a professional touch and keeping up the image and values of
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the company
 Building interpersonal relationships and network within the Hubtown ecosystem; reaching out to the other
teams, inter and intra departments, and resolving matters without too much dependency on e-mails
 Commitment and accountability, ownership towards his/her job
 Clarity of goals in job, purposeful engagement to one’s job
 Initiative, ability to start and end a task on one’s own and take responsibility
 Belongingness, exhibiting the value and sense of pride in being a part of this entity
 Unlearning and relearning, learning new ways of doing the job smartly and efficiently, leveraging technology

No
Cohesiveness and team spirit, ability to see the larger frame and leverage each other’s strengths
 Emerging contextual company priorities and adaptability to the changing market forces have also been taken
into consideration
180-degree feedback on the above parameters from the significant people working with you, internal and external customers
to whom you provide services, has been taken. A relative comparison among the peers has been done.
Going forward also, the above parameters will be sacrosanct, and each of us should exhibit all of the above qualities in our
professional interactions.
A performance matrix on the above parameters will be developed, depending on the level and roles occupied by each one of
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us, with relevant weightings. This will be reviewed quarterly and documented for the next review.
For us, all of you are important members of the team. There is no limit to what one can learn and achieve, and we are always
there to support you and trust you to do the best for the organization.
With best regards,

Chairman and Managing Director
Page 12 9B16C053
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EXHIBIT 5: HUBTOWN ROLE ANALYSIS MATRIX
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1. Department
2. Subdepartment
3. Designation
4. Role description in terms of:
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work activities/responsibilities and
 job context, including the following:
(a) impact and contribution in the job
(b) authority
(c) communication ambit (e.g., only within organization or also with externals? only transaction oriented or
involving negotiation and impacting?)
(d) span of control
(e) innovation and complexity (e.g., does the job require out-of-the-box thinking or following established
rules and procedures?)
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(f) knowledge and its application (e.g., accounting knowledge is applied in the job or no apparent
professional knowledge is used in the job?)
(g) exceptions in the job (e.g., routine job with few exceptions or non-routine job with multiple exceptions
that require thinking and planning?)
(h) job complexity (e.g., limited set of repetitive tasks or multiple tasks requiring competencies of teamwork
and initiative?)
 skill, knowledge, experience, and licenses required to deliver appropriate performance
 likely performance and applicable behavioural standards (e.g., accuracy, in case of data collection; collation
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and reproduction job versus influencing and negotiating with site workers in execution jobs; timely delivery
of reports versus effectiveness in delivery; target output versus quality of liaising activities)
EXHIBIT 6: HUBTOWN COMPETENCY FRAMEWORK—CAPABILITY THEMES AND

CAPABILITY DIMENSIONS
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Capability Theme Capability Dimension

Individual Effectiveness  Proactiveness
 Ownership and Accountability
Managing Organizational Ecosystem  Customer Focus
 Vendor Management
 Relationship Building
 Communication
No
Business Acumen and Analysis  Business and Technical Acumen

 Analytical Thinking
 Planning and Organizing
Performance Orientation  Process Orientation
 Result Orientation
Adaptability and Learning  Adaptability
 Openness to Learning
People-Management Skills  Supervisory Skills
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Page 13 9B16C053
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EXHIBIT 7: HUBTOWN COMPETENCY FRAMEWORK—EXAMPLE OF COMPETENCY
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Vendor Management: Manages vendors (e.g., suppliers, contractors, and consultants) such that
deliverables are implemented as per defined standards. Manages relationships with vendors so that they
go the extra mile to help, if required.
Level 1 2 Level 3 4 Level 5
rP
(Needs Improvement) (Desirable Behaviours) (Superior Behaviours)
Does not understand the Has an understanding of the Has superior understanding of
terms and conditions of contract and is able to the contract—can compare with
the contract communicate the past contracts and identify
understanding to others differences for the benefit of the
organization
Has little understanding of Has a reasonable Has superior understanding of
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key performance understanding of key key performance standards like
standards like quantity, performance standards like quantity, quality, time,
quality, time, milestones, quantity, quality, time, milestones, service, and
and technical criteria milestones, and technical technical criteria applicable to
applicable to work criteria applicable to work work delivery, and is able to
delivery. Unable to delivery, but may find measure vendor performance
measure vendor measuring vendor against these criteria
performance against performance difficult
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defined standards
Is unable to get work Manages to get work done Accepts personal responsibility
done by vendor, takes no by vendors to reasonable for the performance of vendor,
responsibility for vendor satisfaction of seniors, but resolves issues through mutual
performance, and seniors may have to step in discussion and agreement, and
frequently escalates to ensure delivery ensures performance is as per
matters contract
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Is unable to help identify Can give qualitative inputs Gives superior inputs regarding
dependable vendors regarding dependable vendors based on own research
vendors of market, e.g., understanding
cost drivers and market structure
Finds it difficult to Maintains good relationships Maintains superior relationships
maintain relationships with vendors; seniors rarely with vendors, treats them with
with vendors have to step in respect, engages with them to
No
protect the interest of the

company and go the extra mile
Does not properly Properly maintains Maintains documents regarding
maintain documents documents regarding work work done, expenditures
regarding work done, done, expenditures incurred, incurred, or any deviation from
expenditure incurred, or or any deviation from contract to a superior standard,
any deviation from contract, ensuring timely ensuring minimal time is required
contract, making invoice sanction of invoice for the to review and sanction invoice
sanction difficult vendor
Finds it difficult to Negotiates as and when Negotiates independently and to
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negotiate, even minor required, but needs the satisfaction of seniors

things assistance from seniors
Page 14 9B16C053
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EXHIBIT 8: HUBTOWN COMPETENCY FRAMEWORK—ROLE PROFILES
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FOR LEVELS L6, L7, AND L8
1. Engineering professionals: Those who have an engineering degree and/or work as expected for
engineers; responsibilities include site supervision and conceptualization of work contracts, including
defining expected technical and quality standards, and certifying work delivery.
2. Professional knowledge holders: Those whose work requires application of professional knowledge,
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which they have acquired through professional certification and/or through experience, for example,
chartered accountants and lawyers.
3. Sales and marketing personnel: Those whose role requires extensive interaction with external
customers to sell products and services and provide after-sales support.
4. Supervisors: Those whose role requires extensive supervising of workers—internal or external—who
provide primarily physical labour.
5. Liaison personnel: Those whose role requires extensive liaising with external entities, especially
government bodies.
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6. Office support personnel: Those whose role requires primarily data collection, collation, storage,
retrieval and interalia support.
7. Service support personnel: Those whose role requires support through service rendered by their own
effort, mostly through physical labour.
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EXHIBIT 9: COMPETENCIES IDENTIFIED AS IMPORTANT FOR SAMPLE ROLE PROFILE—
ENGINEERING PROFESSIONALS
Capability Weighting
Proactivity 10
Ownership and Accountability 20
Customer Focus
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Vendor Management 5
Relationship Building
Communication 10
Business Acumen
Analytical Thinking 5
Planning and Organizing 15
Process Orientation 15
Result Orientation
Adaptability 5
No
Openness to Learning
Supervisory Skills 15
Total Weighting 100

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HUBTOWN (A): DESIGNING A BOTTOM-UP APPROACH TO

Copyright © 2017, Richard Ivey School of Business Foundation Version: 2016-12-21

Vimal Shah, managing director of Hubtown Limited

THE REAL ESTATE SECTOR IN INDIA

PEOPLE-MANAGEMENT CHALLENGES IN HUBTOWN

Performance Management Process: Second Intervention

DEVELOPING A PERFORMANCE MANAGEMENT PROCESS

 What does the employee do?

Linking Role Profiles and Competencies

Linking the Competency Framework to the Performance Management Process

Implementing the System

EXHIBIT 2: HUBTOWN GRADE LEVEL DESCRIPTORS FROM L1 TO L8 (MANAGEMENT)

Grade Title Levels of Contribution

Operating Officer/Chief Financial Officer

Where any one criterion is rated high:

L6 Deputy Manager/Assistant Manager Managing Self (Independently)

Source: Company documents.

Source: Company documents.

 Education, depending on the need and nature of job/role

With best regards,

Source: Company documents.

Source: Company documents.

EXHIBIT 6: HUBTOWN COMPETENCY FRAMEWORK—CAPABILITY THEMES AND

Capability Theme Capability Dimension

Business Acumen and Analysis  Business and Technical Acumen

Source: Company documents.

Level 1 2 Level 3 4 Level 5

protect the interest of the

negotiate, even minor required, but needs the satisfaction of seniors

Source: Company documents.

Source: Company documents.

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