Name : Abhishek Sadana
ID NO : 2018HB74046
Action Research Project: Performance Appraisal, PMS Implementation & Training for skill enhancement in HAVELLS INDIA LIMITED
Submitted as part of course MBA ZG511( Managing People & Organisations) 1st semesterBackground:
Havells India Limited is fast moving electrical goods (FMEG) company & major power distribution equipment manufacturer. HAVELLS has 12 manufacturing plants, 40 branch offices, strong dealer network of 7575 no’s , 4000 professionals ; has products ranging from Home ; Kitchen appliances, LED Lighting , Fans, Water Heaters, Air Coolers, Personal Grooming, Air Purifier , Water Purifier , Pumps, Switches, Switchgears, Cables , Motors ; Solar Lighting.
In 1958 founder ; chairman Shri Qimat Rai Gupta started trading operations in Delhi in name of Gupta jee ; Co in Delhi.
In 1971 HAVELLS brand was acquired ; started HAVELLS Industries.
In 1983 Havells India Ltd got incorporated ; acquired Towers ; Transformers Ltd ; turned into a profitable company manufacturing Energy meters.

HAVELLS INDIA owns some brands such as Havells, Standard, Crabtree, Lloyd ; Promptec.
Values of HAVELLS: –
Customer Delight
Leadership by example
Integrity ; Transparency
Pursuit of Excellency
Below image shows HAVELLS Journey so far:

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Problem Statement:-
Performance Appraisal may be defined as an objective assessment of an individual performance against well-defined bench marks. Job Analysis sets out work ; personnel requirements for particular job which are translated into levels of acceptable or unacceptable performance standards which form basis of performance appraisal.
In Havells India Limited there was no performance evaluation mechanism for assessing employee’s performance. This resulted in number of problems as mentioned below:-
Reporting manager used to assign grades to employees reporting to him & performance appraisal would happen on basis of grades granted by reporting manager. So pay hikes could not be justified by reporting manager & employees could not know where they stand so far in comparison to others when performance is concerned.

No KRA (Key Result Area) was defined for employees that resulted in employees not able to know the objective / target that they need to achieve. So evaluation of employee performance was extremely difficult as every employee was performing same task as no objectives/targets were defined.

Under one reporting manager close to 8 employees are reporting & promotions used to get affected as reporting manager was not having clear picture of each employee performance & competence.
Training needs could not be identified by reporting manager as roles were not defined & no skill matrix was available for critical operations.
No identification of individual strengths & development needs was possible.
Employees used to get emotional & frustrated if they perceived that grading’s that they got were unfair ; incorrect.

Poor performers could not be identified by reporting manager.

Theoretical Causes of Problem
Organizational goals could not be achieved ; hindrance was there with success of organization.

Infrequent feedback
No integration ; effectiveness matrix was not defined.
Bias is likely to influence evaluation ; biases are pronounced on subjective criterion such as co-operation, attitude ; initiative.
Us e of personality criteria in place of performance criteria for grading employee performance.

Large chunk of employees leaving organization as employees not getting rewarded for their hard work ; effort.

Time consuming process
Inconsistency across reporting managers.
Organisation structure was there but hierarchy was not defined
Initiatives of Havells India Limited (To solve problem)
Havells India Limited started Annual Performance Evaluation through Online Performance Management System (PMS). Evaluation to be done against KRA set in beginning of the year. This was implemented on 30.03.2018.
When assessment, feedback, archiving ; use of data are carried on systematically the process becomes performance management system (PMS)
Process includes :-
Performance evaluation ; development feedback that includes self-assessment ; Employer – Manager discussion
Screen shot attached that shows PMS Evaluation process.

Employee does self-assessment at end of year. Employee himself or herself evaluates his or her own performance.

Employee updates actual achievement against each KRA in system. PMS System gives default system rating against each KRA. Employee provides Self rating against each KRA, overall rating ; identify his training need.

Individual development plan though training needs identification in PMS process. Training can be based upon functional or behavioral category. Employee identifies training needs ; maximum of 3 trainings can be selected for the year.

Manager completes performance discussion ; provides his rating against each KRA ; Overall Rating.

Manager reviews training needs ; gives his recommendations. Manager can edit / delete ; add new trainings as per the requirement.

With a focus on increasing people skills and empower them to interact better with internal and external customers, regular, need-based training programmes are conducted for HAVELLS employees at branch, head office and plant level. During the year 2016-17, 1,800 employees were trained on sales efficiency. A total of 11,748 man days of training were conducted in technical and functional areas, while a few training programmes were held on 5S, Kaizen, Supervisory and negotiation skills.
To simplify and streamline the training process HAVELLS also introduced an online product training portal and induction module for all existing and new employees.

Challenges confronting PMS are mounting. One major challenge is assessment of self – managed teams. Another challenge is that both individual ; team performance needs to be measured. Another problem relates to Performance Improvement Plans (PIPs). Performance appraisal reveals employees whose performance is disappointing. Such employees are closely monitored ; are assigned with clear measurable targets. They are then given feedback ; are given facilities to meet targets. Still if some are lagging then they need to be exited.
PMS has helped in improving employee performance ; development of employees in Havells India Limited. PMS has helped in making correct decisions, ensuring legal compliance, minimizing job dissatisfaction ; employee turnover ; ensuring consistency between organization strategy ; behavior.
Training improves job knowledge ; skill at all levels of organization. Training aids in organizational development, improves morale of workforce, increases productivity and / or quality of work , helps in developing leadership skills, motivation, loyality,better attitudes ; other aspects that successful workers ; managers usually display.
Training fosters authenticity, openness ; trust.
References: –
Havells – Internal mail communication People ; Organization by K Aswathappa


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