UNIT 3

CONTEMPORARY
ISSUES(KMBHR 04)
CONTENTS-

• Potential Appraisal
• Competency Mapping and its linkage with career development and
Succession Planning
• Balance Score Card: Introduction and applications, its advantages
and limitations
• Case Studies
Potential

Appraisal
What is Potential ?

Potential can be defined as ‘a latent but unrealised ability’. There are many people
who have the desire and potential to advance through the job they are in,
wanting the opportunity to operate at a higher level of competence in the same type
of work.

POTENTIAL APPRAISAL

Qualities that exist Evaluation

and can be developed

• Beyond the Present Role.

Review Appraisal At Cadbury:
Cadbury introduced its new performance appraisal system but it is also
moving towards potential appraisal.

As VP points out, “ The system is still evolving. One by one, we are taking
up other elements of the appraisal system.”

However, at present it obtains insights into the potentials of its people through
the review system conducted by immediate supervisors, departmental heads
or the functional, departmental heads or the functional VP.

The review process evaluates potential for growth, it also determines the
action plans for career development of its people.

Thereafter, attempts are made to rate the people on six generic

competencies which are presented in the next slide.
Review Appraisal At Cadbury: (cntd.)

Job Thinking Goal Setting

Relationships Leadership Innovation
knowledge Clarity and planning

These competencies are further rated on a 5 point scale.

The HR VP points out, “ We believe that a potentially good manager must

display certain behavioural characteristics which transcend job.”
Analyse a Case on Potential Appraisal:

Vybhav has formalised a system for employee potential survey that is carried out
once in every two year. The entire exercise is contracted to Hann Associates (HA),
a premier HR consulting firm. HA supports the survey with technology as well as
analysis of the findings and provides detailed reports generated for each manager
at Vybhav.

Every alternative year during the last two weeks of January, employees receive e-
mail alerts to log into survey tool called “Voices” to complete a 55 question on-line
form, that’s collects feedback on every facet of the employee’s potential, the way
the organisation conducts business and on the organisation itself.

All questions are rated on a 7 point scale and then clustered as favourable,
neutral and unfavourable. The survey ends on 31st Jan. HA then analyses the data
to provide detailed Voices scores on two key measures:
1. Leadership Excellence Potential (LEP)
2. Organisation Excellence Potential (OEP)
Analyse a Case on Potential Appraisal: (cntd.)

The reports are generated in the first week of April. The LEP is an important
metric that directly maps to manager and skip-level manager's leadership
capabilities. The OEP is a metric that reports organisation culture value items
with reference to business goals. It is a measure of the employee’s perception of
the organisation’s capabilities to meet its business objectives.

Any voices scores of less than 75% are identified as action areas for
improvement. Each people manager worked with the HR partner to identify 5 top
scores and bottom 5 scores to focus for the next 22 months before the next Voices
survey.

They work with the HR partners designated to the team to build focused action
plan and work closely with the team members in action planning and
implementation, to bring about an improvement in the low score areas/to
retain high scores in the strength areas.
Analyse a Case on Potential Appraisal: (cntd.)

Questions-

1. Comment on the employee potential survey carries out by

Vybhav. What do you think, what can be the best practices
of potential appraisal?

2. Work in group to frame a set of 05 questions that could help an

organisation measure its Leadership Excellence
Potential (LEP).

3. Work in group to frame a set of 05 questions that could help an

organisation measure its Organisation Excellence
Potential (OEP).
Ans 1. Modak’s Best practices of Potential Appraisal:
Incorporate the appraisal and reward of potential
in the assessment system.

Ensure to distinguish reward for potential

from reward for past performance.

Initiate evaluation of potential as early as possible

to identify the best talent.

Attributes used for evaluating potential must be

explained to all employees.

Communicate potential appraisal to all employees

regularly.
Ans 2. Leadership Excellence Potential
Questionnaire:

Leadership Excellence Potential

Persuading and Has presence and authority, enjoys being in charge, takes
influencing the lead.
Motivating and Empowers and motivates team members, delegates tasks
empowering effectively.
Coaching others Coaches and develops team, gives regular feedback.
Coping with
Handles pressure and stress, stays calm and in control.
pressure
Learning and Exploits opportunities for self-development, energetic, self-
developing aware.
Ans 3. Organisational Excellence Potential:

Organisational Excellence Potential

Consideration to If I have an idea for a new and better ways of doing things, I
employees have a means of proposing it for consideration
I rate executive management (the Director and his direct
Communication reports) on their level of open and honest communication
with employees as
Work Management in my unit fosters an engaging and positive work
Environment environment.
Risks at I know what the greatest risks are for my work unit to
workplace be successful
Creativity and Creativity and innovation are encouraged or rewarded in my
innovation unit.
Potential Appraisal at Maruti Suzuki:

Part III of the Performance Appraisal form of Maruti Suzuki. Solicits

information to assess the future potential and ability.

Group effectiveness (Maintaining and improving morale of group and

helping its identification with organisational objectives; optimal utilisation of
available manpower resources; directing and co-ordinating efforts an
effective follow up action to ensure accomplishment of planned objectives).

OUTSTANDING VERY GOOD GOOD STATISFACTORY UNSATIFACTORY

Ability to develop subordinates (Sensitivity to develop subordinate’s mental skills;
ability to provide professional guidance to produce group
results)

Outstanding Very Good Good Satisfactory Unsatisfactory

Potential Capability (Overall rating for managerial capability to head

department based on your
a assessment related to the above two
points)

Outstanding Very Good Good Satisfactory Unsatisfactory

Steps of Potential Appraisal System:

Qualities
Role needed to Rating Organizing
perform the Feedback
Descriptions Mechanisms the system
roles
 PROBLEM STARS
HIGH CHILDREN
P
O
T
E
N
The Philips Hi-Lo Matrix T
I
?
PLANNED SOLID
A CITIZENS
L LOW
SEPERATION

LOW HIGH

PERFORMANCE
Techniques of Potential Appraisal

• Self Appraisal
• Peer Appraisal
• Superior Appraisal
• MBO
• Psychological Tests
• Management Games
• Leadership Excercises
Benefits of Potential Appraisal:

Data
storage

Career planning
and Manpower
development planning

Potential
Appraisal

Feedback Job rotation

and and
counseling enlargement

Training &
development
Succession Planning
 Succession Planning:

The basic purpose of succession planning is to identify and develop people to

replace current job holders in key positions.

Through succession planning organisations ensure a steady flow of internal talent

to fill important vacancies. Succession planning encourages “hiring from
within” and creates a healthy environment where employees have careers and not
merely jobs.

It should be noted here that career planning (which covers executives at all
levels), by its very nature, includes succession planning (which covers key
positions at higher levels).

Career And Succession Planning

 Succession
Planning and
Management
Five-Step Process

Succession management
focuses attention on
and creating
candidates with high leadership
stocking pools
potential. It assures
of that key
people are not just identified
but also nurtured and
developed into future
leadership roles
Strategies to adopt for Succession Planning
Succession or failure: Why succession planning
is key to long-term success

GE is well known for its exhaustive and systematic approach to identifying and
cultivating its business leaders. Yet it’s not just the CEO and Chairman whose roles
are important to the success of the company. Succession planning is an integral
part of the business continuity plan throughout GE and leaders help grow other
leaders, and are expected to aid in the cultivation of their own replacements.
Competency mapping
 Competency mapping
• Human beings are the most important assets
of an organization

• HR professionals have generated lot of

interest in the notion of competencies as a key
element and measure of human performance
 Competencies
• It includes the collection of success factors
necessary for achieving important results in
specific job or work role in an organization.

– Steve Garette
 Competency
• It is underlying characteristics required to
perform a given task, activity, or role.
Competency has the following forms-
Knowledge, skills and attitude

• Competency (Ability of an individual)

• Competence (Area)
 Thus, Competency has the following
forms- Knowledge, skills and attitude
and other personal characteristics that
• Affects a major part of one’s job
• Correlates with performance on the job
• Can be measured against well-established
standards
• Can be improved via training and
development
 Competency Mapping
• It is a process of identifying key competencies
for a particular position in an organization and
then using it for a job evaluation, recruitment,
T & D, Performance management, succession
planning which results in talent induction,
management development appraisals and in
identifying training needs

– Nedunchezhian & Prabhakar, 2007

 Categorization of competencies
• Entry Level
• Junior Management
• Middle Management
• Top Management
 Methods of competency mapping
1) Past Performance based approach
(behavioural event interview- BEI)

- Identifying the position to be mapped

- Identifying outstanding performers, below avg
and avg performers
- Interviewing them by using BEI
- Generating the list of competencies needed
 2)Job focused Method

• Understanding the purpose of job

• Asking incumbents to list down the job’s
major activities and accountability
• Mapping each accountability
 3)Value based method
• Normative
• Cultural
• Traditional values to construct competencies
 Competency mapping and its linkage
to performance planning
• It provides structured and documented
procedures which aids in R&D, T&D
• Reduces costs of performance development
programme
• Helps in benchmarking
• Creating individual learning plans
• Helps in gap analysis
 Design of competency mapping
• Map skills, personal attributes
Map Competencies

Identify • Conduct competency test

Competency

Analyze
Competency gaps

Decide
Competency Development Matrix
PHASE1 PHASE2
Unconsciously consciously
Incompetent Incompetent

PHASE3 PHASE4
Unconsciously consciously
competent competent
Career Development
Introduction:

Career is an occupation undertaken for a significant period of a person's life

and with opportunities for progress.

The Concept
Of Career

Objective Subjective
View View
 • A career may be defined as all the
positions occupied by a person
during his/her working life. It
Objective View comprises series of work related
activities.

• A career consists of the changes in

values, attitudes and motivation that
occurs as a person grows older.
Subjective View There is subjective element in terms
of where a person going in his/her
work life.
 Career Stages:
A career includes many positions, stages and transitions just as a person’s
life does.
High
Exploration Establish- Mid career Late career Decline
ment
Performance

From college First job Will performance The elder

to work Preparing and being increase or
statesperson for accepted
begin to retirement
decline?

Low 25 35 50 60 70
Age
Career And Succession Planning
 Career Development:

Career development consists of the personal actions one undertakes to

achieve a career plan. The actions for career development may be
initiated by the individual himself or by the organization.

Career And Succession Planning

Career Development Model:
Career Development Initiatives:
Career Development Initiatives
Individual Career
Development
• Performance
• Exposure
• Networking
• Leveraging
• Loyalty to career
• Mentors and sponsors
• Key Subordinates
• Expand Ability
Organisational
Career Development
• Self-assessment tools
• Individual Counselling
• Information Services
• Job Posting
• Skills Inventory
• Career Ladders and Career Paths
• Employee Assessment Programme
• Employee Development Programme
• Career Programme for special
groups like dual career couple.
BALANCED SCORE
CARD
David Norton Robert Kaplan
Balance Score Card
• The BSC is a lead and indicators of
lag
performance that demonstrates how
changes in one operation can cause or
are balanced by changes in others.
 Financial
Perspective

Customer Internal
Perspective Vision & Process
Strategy Perspective

Learning &
Growth
Perspective
Customers Perspective

Cost

“Number
Service Tim
One in delivering
Value to e
Customers”

Quality
Internal process perspective

Process
Control

Supplier Internal process Process

satisfaction perspective alignment

Process
automation
Learning & Growth Perspective

Employee
Turnover

Learning Training &

Job
& learning
satisfaction
Growth opportunities
perspecti
ve

Access to
strategic
information
Financial perspective

Cash
flow

Financial
Return on Financial results
investment perspective (Quat/year)

Optimum cost
efficiency of
operations
 Balance Score Card
• Four key Business Perspectives

• Internal & Business process of Organization

• Short Run & Long Run

Why are companies Adopting BSC?

• Change

• Growth
Balanced Scorecard example:
Strategic map for a Craft Brewery

56
 Advantages Of BSC
 It is used to align the business activities
to vision and strategy
 It improves Internal & External
communications
 It is used to monitor organizations
performance
 It provides management with comprehensive
picture of operations
 It provides strategic feed back
 It improves decisions & better solutions
 Disadvantages
 It Doesn’t provide Recommendations

 It is not fully Efficient

 It takes time

 It is High Implementation of cost

Thank
You