Beruflich Dokumente
Kultur Dokumente
SUBMITTED BY:-
DEEPAK AGGARWAL.
2009-2011
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IndianOil operates the largest and the widest network of fuel stations in the country,
numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also
started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over
47.5 million households through a network of 4,990 Indian distributors. In addition,
IndianOil's Research and Development Center (R&D) at Faridabadsupports, develops
and provides the necessary technology solutions to the operating divisions of the
corporation and its customers within the country and abroad. Subsequently, IndianOil
Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a vision to
market the technologies developed at IndianOil's Research and Development Center. It
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has been modeled on the R&D marketing arms of Royal Dutch Shell and British
Petroleum.
Founded 1964
[Chairman]
Products Oil
Petroleum
Natural gas
Petrochemical
Fuel
Lubricant
Revenue
272,689.95 crore (US$59.17
billion)(2009-10)[1]
History
IndianOil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil
Corporation was formed in 1964, with the merger of Indian Refineries Ltd.
Products
IndianOil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel,
lubricants, naphtha, bitumen, paraffin, keroseneetc. Xtra Premium petrol, Xtra Mile
diesel, Servo lubricants, Indane LPG, Autogas LPG, Indian Oil Aviation are some of its
prominent brands.
Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied
natural gas) by cryogenic transportation. This is called "LNG at Doorstep". LNG
headquarters are located at the Scope Complex, Lodhi Road, Delhi.
Refineries
Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It
was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6
MMTPA.
Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km
downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was
commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been
increased to 5.8 MMTPA
Panipat Refinery is the seventh refinery of IndianOil. The original refinery with 6
MMTPA capacity was built and commissioned in 1998. Panipat Refinery has
doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of
its Expansion Project.
IndianOil Technologies Ltd : IndianOil Technologies Ltd. is the marketing arm of
IOCL which markets the entire range of technologies developed at the IndianOil
R&D Centre,Faridabad. IndianOil Technologies Ltd. headquarters is located at the
IndianOil R&D Centre.
IndianOil (Mauritius) Ltd.
Lanka IOC PLC - Group company for retail and storage operations in Sri Lanka.
It is listed in the Colombo Stock Exchange. It was locked into a bitter subsidy
payment dispute with Sri Lanka's Government which has since been resolved. [citation
needed]
IOC Middle East FZE
Chennai Petroleum Corporation Limited
Bongaigoan Refinery and Petrochemicals Ltd.
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Green Gas Ltd. - a joint venture with Gas Authority of India Ltd. for city-wide gas
distribution networks.
Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tonnes per
annum of FCC (fluidised catalytic cracking) catalysts & additives in India.
Numerous exploration and production ventures with Oil India Ltd., Oil and
Natural Gas Corporation
International rankings
Indian Oil is the highest ranked Indian company in the Fortune Global 500 listing, the
116th position(in 2008) based on fiscal 2007 performance. It is also the 18th largest
petroleum company in the world and the number one petroleum trading company
among the National Oil Companies in the Asia-Pacific region. IOCL was featured on the
2008 Forbes Global 2000at position 303. It is fifth most valued brand in India according
to an annual survey conducted by Brand Finance and The Economic Times in 2010.
Loyalty programs
XTRAPOWER Fleet Card Program is aimed at Large Fleet Operators. Currently it has 1
million customer base. XTRAREWARDS is a recently launched loyalty program for
retail customers where customers can earn reward points on their purchases.in the org
Competitors
Concerns
The volatility in the crude market & subsidy burden on the IOCL has dented the
company performance like other PSU oil companies. This is also reflected in its
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FORTUNE rating this year. Moreover, bureaucratic hurdles in projects are hurting
company advancement. IOCL has one of the best technical manpower for execution of
jobs.
India has begun the development of a strategic crude oil reserve sized at 37.4 million
barrels, enough for two weeks of consumption. Petroleum stocks have been
transferred from the Indian Oil Corporation(IndianOil) to the Oil Industry Development
Board (OIDB).[5] The OIDB then created the Indian Strategic Petroleum Reserves Ltd
(ISPRL) to serve as the controlling government agency for the strategic reserve.
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Values
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Indianoil nurtures the core values of Care, Initiative, Passion & Trust across the
organization in order to deliver value to its stakeholders.
Care Stands for
Concern
Empathy
Understanding
Co-operation
Empowerment
Innovation Stands for
Creativity
Ability to learn
Flexibility
Change
Passion Stands for
Commitment
Dedication
Pride
Inspiration
Ownership
Zeal & Zest
Trust Stands for
Delivered promises
Reliability
Dependability
Integrity
Truthfulness
Transparency
Performance management
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Performance management (PM) includes activities to ensure that goals are consistently
being met in an effective and efficient manner. Performance management can focus on
the performance of an organization, a department, employee, or even the processes to
build a product or service, as well as many other areas.
Application
This is used most often in the workplace, can apply wherever people interact —
schools, churches, community meetings, sports teams, health setting, governmental
agencies, and even political settings - anywhere in the world people interact with their
environments to produce desired effects. Armstrong and Baron (1998) defined it as a
“strategic and integrated approach to increasing the effectiveness of organizations by
improving the performance of the people who work in them and by developing the
capabilities of teams and individual contributors.”
It may be possible to get all employees to reconcile personal goals with organizational
goals and increase productivity and profitability of an organization using this process. It
can be applied by organisations or a single department or section inside an
organisation, as well as an individual person. The performance process is appropriately
named the self-propelled performance process (SPPP).
First, a commitment analysis must be done where a job mission statement is drawn up
for each job. The job mission statement is a job definition in terms of purpose,
customers, product and scope. The aim with this analysis is to determine the
continuous key objectives and performance standards for each job position.
Following the commitment analysis is the work analysis of a particular job in terms of
the reporting structure and job description. If a job description is not available, then a
systems analysis can be done to draw up a job description. The aim with this analysis is
to determine the continuous critical objectives and performance standards for each job.
Benefits
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Motivated workforce
Optimizes incentive plans to specific goals for over achievement, not just
business as usual
Improves employee engagement because everyone understands how they are
directly contributing to the organisations high level goals
Create transparency in achievement of goals
High confidence in bonus payment process
Professional development programs are better aligned directly to achieving
business level goals
Organizational Development
A performance problem is any gap between Desired Results and Actual Results.
Performance improvement is any effort targeted at closing the gap between Actual
Results and Desired Results.
Other organizational development definitions are slightly different. The U.S. Office of
Personnel Management (OPM) indicates that Performance Management consists of a
system or process whereby:
Performance measurement
This process of measuring performance often requires the use of statistical evidence to
determine progress toward specific defined organizational objectives.
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2. To Control How can managers ensure their subordinates are doing the right
thing.
David Norton) Business has control bias. Because traditional measurement system
sprung from finance function, the system has a control bias.
Organisation create measurement systems that specify particular actions they want
execute- for branch employess to take a particular ways to execute what they want-
branch to spend money. Then they want to measure to see whether the employees
have in fact taken those actions. Need to measure input by individual into organisation
and process. Officials need to measure behavior of individuals then compare this
performance with requirements to check who has and has not complied.
Often such requirements are described only as guidelines. Do not be fooled. These
guidelines are really requirements and those requirement are designed to control. The
measurement of compliance with these requirements is the mechanism of control.
At the macro level, elected officials deciding which purpose of government actions are
primary or secondary. Political priorities drive macro budgetory choices. Once elected
officials have established macro political priorities, those responsible for micro decisions
may seek to invest their limited allocation of resources in the most cost-effective units
and activities.
Almost-real-time output (faster, the better) compared with production targets. Quick
response required to provide fast feed-back so workforce could improve and adapt.
Primary aim behind the measures should be output, managers can not motivate people
to affect something over which they have little or no influence.
To convince citizens their agency is doing good, managers need easily understood
measures of those aspects of performance about which many citizens personally care.
However if there is too many performance measures, managers might not be able to
learn anything. (Neves of National Academy of Public Administration 1986)
Also there is an issue of “black box” enigma (data can reveal that organisation is
performing well or poorly, but they don’t necessarily reveal why). Performance
measures can describe what is coming out of “black box” as well as what is going in,
but they do not reveal what is happening inside. How are various inputs interacting to
produce the output. What more complex is outcome with “black box” being all value
chain.
Measurements that are used for learning act as indicators for managers to consider
analysis of performance in measurement’s related areas by revealing irregularities and
deviations from expected data results.
Also you need to have a feedback loop to assess compliance with plans to achieve
improvements and to determine if those processes created forecasted results
(improvements).
Improvement process also related to learning process in identifying places that are
need improvements.
Develop understanding of relationships inside the “black box” that connect changes in
operations to changes in output and outcome.
They need to observe how actions they can take will influence operations, environment,
workforce and which eventually has an impact on outcome.
After that they need to identify actions they can take that will give them improvements
they looking for and how organisation will react to those actions ex. How might various
leadership activities ripple through the “black box”.
If we don’t measure ……
Practice
Several performance measurement systems are in use today, and each has its own
group of supporters. For example, the Balanced Scorecard (Kaplan and Norton, 1993,
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1996, 2001), Performance Prism (Neely, 2002), and the Cambridge Performance
Measurement Process (Neely, 1996) are designed for business-wide implementation;
and the approaches of the TPM Process (Jones and Schilling, 2000), 7-step TPM
Process (Zigon, 1999), and Total Measurement Development Method (TMDM)
(Tarkenton Productivity Group, 2000) are specific for team-based structures. With
continued research efforts and the test of time, the best-of-breed theories that help
organizations structure and implement its performance measurement system should
emerge.
Although the Balanced Scorecard has become very popular, there is no single version
of the model that has been universally accepted. The diversity and unique requirements
of different enterprises suggest that no one-size-fits-all approach will ever do the job.
Gamble, Strickland and Thompson (2007, p. 31) list ten financial objectives and nine
strategic objectives involved with a balanced scorecard.
too subjective
Solutions
EVOLUTION ON PERFORMANCE
MANAGEMENT
The term performance management gained its importance from the times when the
competitive pressures in the market place started rising and the organizations felt the
need of introducing a comprehensive performance management process into their
system for improving the overall productivity and performance effectiveness.
First Phase: The origin of performance management can be traced in the early
1960’s when the performance appraisal systems were in practice. During this
period, Annual Confidential Reports (ACR’s) which was also known as
Employee service Records were maintained for controlling the behaviors of the
employees and these reports provided substantial information on the
performance of the employees. Any negative comment or a remark in the ESR or
ACR used to adversely affect the prospects of career growth of an employee.
The assessments were usually done for ten traits on a five or a ten point rating
scale basis. These traits were job knowledge, sincerity, dynamism, punctuality,
leadership, loyalty, etc. The remarks of these reports were never communicated
to the employees and strict confidentiality was maintained in the entire process.
The employees used to remain in absolute darkness due to the absence of a
transparent mechanism of feedback and communication. This system had
suffered from many drawbacks.
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Second Phase: This phase continued from late 1960’s till early 1970’s, and the
key hallmark of this phase was that whatever adverse remarks were
incorporated in the performance reports were communicated to the employees
so that they could take corrective actions for overcoming such deficiencies. In
this process of appraising the performance, the reviewing officer used to enjoy a
discretionary power of overruling the ratings given by the reporting officer. The
employees usually used to get a formal written communication on their identified
areas of improvements if the rating for any specific trait used to be below 33%.
Third Phase: In this phase the term ACR was replaced by performance
appraisal. One of the key changes that were introduced in this stage was that the
employees were permitted to describe their accomplishments in the confidential
performance reports. The employees were allowed to describe their
accomplishments in the self appraisal forms in the end of a year. Besides
inclusion of the traits in the rating scale, several new components were
considered by many organizations which could measure the productivity and
performance of an employee in quantifiable terms such as targets achieved, etc.
Certain organizations also introduced a new section on training needs in the
appraisal form. However, the confidentiality element was still being maintained
and the entire process continued to be control oriented instead of being
development oriented.
Fourth Phase: This phase started in mid 1970’s and its origin was in India as
great business tycoons like Larsen & Toubro, followed by State Bank of India
and many others introduced appreciable reforms in this field. In this phase, the
appraisal process was more development driven, target based (performance
based), participative and open instead of being treated as a confidential process.
The system focused on performance planning, review and development of an
employee by following a methodical approach. In the entire process, the
appraisee (employee) and the reporting officer mutually decided upon the key
result areas in the beginning of a year and reviewed it after every six months. In
the review period various issues such as factors affecting the performance,
training needs of an employee, newer targets and also the ratings were
discussed with the appraisee in a collaborative environment.
culture building, team appraisals and quality circles were established for
assessing the improvement in the overall employee productivity.
The rating scale method offers a high degree of structure for appraisals. Each
employee trait or characteristic is rated on a bipolar scale that usually has several
points ranging from "poor" to "excellent" (or some similar arrangement).
The traits assessed on these scales include employee attributes such as cooperation,
communications ability, initiative, punctuality and technical (work skills) competence.
The nature and scope of the traits selected for inclusion is limited only by the
imagination of the scale's designer, or by the organization's need to know.
The one major provision in selecting traits is that they should be in some way relevant
to the appraisee's job. The traits selected by some organizations have been unwise and
have resulted in legal action on the grounds of discrimination.
Advantages
The greatest advantage of rating scales is that they are structured and standardised.
This allows ratings to be easily compared and contrasted - even for entire workforces.
Each employee is subjected to the same basic appraisal process and rating criteria,
with the same range of responses. This encourages equality in treatment for all
appraisees and imposes standard measures of performance across all parts of the
organization.
Rating scale methods are easy to use and understand. The concept of the rating scale
makes obvious sense; both appraisers and appraisees have an intuitive appreciation for
the simple and efficient logic of the bipolar scale. The result is widespread acceptance
and popularity for this approach.
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Disadvantages
Trait Relevance
Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is
inevitable that with a standardised and fixed system of appraisal that certain traits will
have a greater relevance in some jobs than in others.
For example, the trait "initiative" might not be very important in a job that is tightly
defined and rigidly structured. In such cases, a low appraisal rating for initiative may not
mean that an employee lacks initiative. Rather, it may reflect that fact that an employee
has few opportunities to use and display that particular trait. The relevance of rating
scales is therefore said to be context-sensitive. Job and workplace circumstances must
be taken into account.
Systemic Disadvantage
Rating scales, and the traits they purport to measure, generally attempt to encapsulate
all the relevant indicators of employee performance. There is an assumption that all the
true and best indicators of performance are included, and all false and irrelevant
indicators are excluded.
Perceptual Errors
This includes various well-known problems of selective perception (such as the horns
and halos effect) as well as problems of perceived meaning.
Selective perception is the human tendency to make private and highly subjective
assessments of what a person is "really like", and then seek evidence to support that
view (while ignoring or downplaying evidence that might contradict it).
This is a common and normal psychological phenomenon. All human beings are
affected by it. In other words, we see in others what we want to see in them.
An example is the supervisor who believes that an employee is inherently good (halo
effect) and so ignores evidence that might suggest otherwise. Instead of correcting the
slackening employee, the supervisor covers for them and may even offer excuses for
their declining performance.
On the other hand, a supervisor may have formed the impression that an employee is
bad (horns effect). The supervisor becomes unreasonably harsh in their assessment of
the employee, and always ready to criticize and undermine them.
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The horns and halo effect is rarely seen in its extreme and obvious forms. But in its
more subtle manifestations, it can be a significant threat to the effectiveness and
credibility of performance appraisal.
Perceived Meaning
Problems of perceived meaning occur when appraisers do not share the same opinion
about the meaning of the selected traits and the language used on the rating scales.
For example, to one appraiser, an employee may demonstrate the trait of initiative by
reporting work problems to a supervisor. To another appraiser, this might suggest an
excessive dependence on supervisory assistance - and thus a lack of initiative.
As well, the language and terms used to construct a scale - such as "Performance
exceeds expectations" or "Below average skill" - may mean different things to different
appraisers.
Rating Errors
The problem here is not so much errors in perception as errors in appraiser judgement
and motive. Unlike perceptual errors, these errors may be (at times) deliberate.
The most common rating error is central tendency. Busy appraisers, or those wary of
confrontations and repercussions, may be tempted to dole out too many passive,
middle-of-the-road ratings (e.g., "satisfactory" or "adequate"), regardless of the actual
performance of a subordinate. Thus the spread of ratings tends to clump excessively
around the middle of the scale.
This problem is worsened in organizations where the appraisal process does not enjoy
strong management support, or where the appraisers do not feel confident with the task
of appraisal.
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• The Rating Scale is a form on which the manager simply checks off the employee’s
level of performance.
• This is the oldest and most widely method used for performance appraisal.
• The scales may specify five points, so a factor such as job knowledge might be rated
1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the
job).
2. Content of appraisal
3. Rating scales
• Good
• Outstanding
• Different supervisors will use the same graphic scales in slightly different ways.
• One way to get around the ambiguity inherent in graphic rating scales is to use
behavior based scales, in which specific work related behaviors are assessed.
• More validity comparing workers ratings from a single supervisor than comparing two
workers who were rated by different supervisors.
The Critical Incident Technique (or CIT) is a set of procedures used for collecting
direct observations of human behavior that have critical significance and meet
methodically defined criteria. These observations are then kept track of as incidents,
which are then used to solve practical problems and develop broad psychological
principles. A critical incident can be described as one that makes a significant
contribution—either positively or negatively—to an activity or phenomenon. Critical
incidents can be gathered in various ways, but typically respondents are asked to tell a
story about an experience they have had.
CIT is a flexible method that usually relies on five major areas. The first is determining and
reviewing the incident, then fact-finding, which involves collecting the details of the incident
from the participants. When all of the facts are collected, the next step is to identify the issues.
Afterwards a decision can be made on how to resolve the issues based on various possible
solutions. The final and most important aspect is the evaluation, which will determine if the
solution that was selected will solve the root cause of the situation and will cause no further
problems.
not result in a similar loss. There are both advantages and disadvantages to using this
method, as shown below. In all, however, CIT has been demonstrated to be a sound
method since first presented in 1954. Relatively few modifications have been suggested
to the method in the more than 50 years since it was introduced, and only minor
changes have been made to Flanagan's original approach. This indicates a certain
robustness.
Advantages
Flexible method that can be used to improve multi-user systems.
Data is collected from the respondent's perspective and in his or her own words.
Does not force the respondents into any given framework.
Identifies even rare events that might be missed by other methods which only
focus on common and everyday events.
Useful when problems occur but the cause and severity are not known.
Inexpensive and provides rich information.
Emphasizes the features that will make a system particularly vulnerable and can
bring major benefits (e.g. safety).
Can be applied using questionnaires or interviews.
Disadvantages
A first problem comes from the type of the reported incidents. The Critical
Incident Technique will rely on events being remembered by users and will also
require the accurate and truthful reporting of them. Since critical incidents often
rely on memory, incidents may be imprecise or may even go unreported.
The method has a built-in bias towards incidents that happened recently, since
these are easier to recall.
Respondents may not be accustomed to or willing to take the time to tell (or
write) a complete story when describing a critical incident.
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BALANCED SCORECARD
Characteristics
The core characteristic of the Balanced Scorecard and its derivatives is the
presentation of a mixture of financial and non-financial measures each compared
to a 'target' value within a single concise report. The report is not meant to be a
replacement for traditional financial or operational reports but a succinct summary
that captures the information most relevant to those reading it. It is the method by
which this 'most relevant' information is determined (i.e. the design processes used
to select the content) that most differentiates the various versions of the tool in
circulation.
The first versions of Balanced Scorecard asserted that relevance should derive
from the corporate strategy, and proposed design methods that focused on
choosing measures and targets associated with the main activities required to
implement the strategy. As the initial audience for this were the readers of the
Harvard Business Review, the proposal was translated into a form that made
sense to a typical reader of that journal - one relevant to a mid-sized US business.
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Modern Balanced Scorecard thinking has evolved considerably since the initial
ideas proposed in the late 1980s and early 1990s, and the modern performance
management tools including Balanced Scorecard are significantly improved - being
more flexible (to suit a wider range of organisational types) and more effective (as
design methods have evolved to make them easier to design, and use).
History
The first balanced scorecard was created by Art Schneiderman (an independent
consultant on the management of processes) in 1987 at Analog Devices, a mid-
sized semi-conductor company.[2] Art Schniederman participated in an unrelated
research study in 1990 led by Dr. Robert S. Kaplan in conjunction with US
management consultancy Nolan-Norton, and during this study described his work
on Balanced Scorecard. Subsequently, Kaplan and David P. Norton included
anonymous details of this use of balanced scorecard in their 1992 article on
Balanced Scorecard.[3] Kaplan and Norton's article wasn't the only paper on the
topic published in early 1992 But the 1992 Kaplan and Norton paper was a popular
success, and was quickly followed by a second in 1993. [5] In 1996, they published
the book The Balanced Scorecard.[6] These articles and the first book spread
knowledge of the concept of Balanced Scorecard widely, but perhaps wrongly have
led to Kaplan and Norton being seen as the creators of the Balanced Scorecard
concept.
While the "balanced scorecard" concept and terminology was coined by Art
Schneiderman, the roots of performance management as an activity run deep in
management literature and practice. Management historians such as Alfred
Chandler suggest the origins of performance management can be seen in the
emergence of the complex organisation - most notably during the 19th Century in
the USA.[7] More recent influences may include the pioneering work of General
Electric on performance measurement reporting in the 1950s and the work of
French process engineers (who created the tableau de bord – literally, a
"dashboard" of performance measures) in the early part of the 20th century. The
tool also draws strongly on the ideas of the 'resource based view of the firm' [8]
proposed by Edith Penrose. However it should be noted that none of these
influences is explicitly linked to original descriptions of Balanced Scorecard by
Schneiderman, Maisel, or Kaplan & Norton.
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Kaplan and Norton's first book, The Balanced Scorecard, remains their most
popular. The book reflects the earliest incarnations of Balanced Scorecard -
effectively restating the concept as described in the second Harvard Business
Review article. Their second book, The Strategy Focused Organization, echoed
work by others (particularly in Scandinavia) on the value of visually documenting
the links between measures by proposing the "Strategic Linkage Model" or strategy
map. Since then Balanced Scorecard books have become more common - in early
2010 Amazon was listing several hundred titles in English which had Balanced
Scorecard in the title.
Popularity
In 1997, Kurtzman found that 64 percent of the companies questioned were
measuring performance from a number of perspectives in a similar way to the
Balanced Scorecard.
Many of the variations proposed are broadly similar, and a research paper
published in 2002[12] attempted to identify a pattern in these variations - noting three
distinct types of variation. The variations appeared to be part of an evolution of the
Balanced Scorecard concept, and so the paper refers to these distinct types as
"Generations". Broadly, the original 'measures in boxes' type design (as proposed
by Kaplan & Norton) constitutes the 1st Generation Balanced Scorecard design;
Balanced Scorecard designs that include a 'strategy map' or 'strategic linkage
model' (e.g. the Performance Prism, later Kaplan & Norton designs, the
Performance Driver model of Olve & Wette) constitute the 2nd Generation of
Balanced Scorecard design; and designs that augment the strategy map / strategic
linkage model with a separate document describing the long-term outcomes sought
from the strategy (the "Destination Statement" idea) comprise the 3rd Generation
Balanced Scorecard design. Examples of the 3rd Generation Balanced Scorecard
design include the Third Generation Balanced Scorecard itself, and the
performance management elements of the UN's Results Based Management
model.
Criticism
The Balanced Scorecard has always attracted criticism from a variety of sources.
Most has come from the academic community, who dislike the empirical nature of
the framework: Kaplan and Norton notoriously failed to include any citation of prior
art in their initial papers on the topic. Some of this criticism focuses on technical
flaws in the methods and design of the original Balanced Scorecard proposed by
Kaplan and Norton, and has over time driven the evolution of the device through its
various Generations. Other academics have simply focused on the lack of citation
support. But a general weakness of this type of criticism is that it typically uses the
1st Generation Balanced Scorecard as its object: many of the flaws identified are
addressed in other works published since the original Kaplan & Norton works in the
early 1990s.
Another criticism, usually from pundits and consultants, is that the balanced
scorecard does not provide a bottom line score or a unified view with clear
recommendations: it is simply a list of metrics. These critics usually include in their
criticism suggestions about how the 'unanswered' question postulated could be
answered. Typically however, the unanswered question relates to things outside
the scope of Balanced Scorecard itself (such as developing strategies).
There are a few empirical studies linking the use of Balanced Scorecards to better
decision making or improved financial performance of companies, but some work
has been done in these areas. However broadcast surveys of usage have
difficulties in this respect, due to the wide variations in definition of 'what a
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Balanced Scorecard is' noted above (making it hard to work out in a survey if you
are comparing like with like). Single organization case studies suffer from the 'lack
of a control' issue common to any study of organizational change - you don't know
what the organization would have achieved if the change had not been made, so it
is difficult to attribute changes observed over time to a single intervention (such as
introducing a Balanced Scorecard). However, such studies as have been done
have typically found Balanced Scorecard to be useful.
These 'prompt questions' illustrate that Kaplan and Norton were thinking about the
needs of small to medium sized commercial organizations in the USA (the target
demographic for the Harvard Business Review) when choosing these topic areas.
They are not very helpful to other kinds of organizations, and much of what has
been written on Balanced Scorecard since has, in one way or another, focused on
the identification of alternative headings more suited to a broader range of
organizations.
Measures
The Balanced Scorecard is ultimately about choosing measures and targets. The
various design methods proposed are intended to help in the identification of these
measures and targets, usually by a process of abstraction that narrows the search
space for a measure (e.g. find a measure to inform about a particular 'objective'
within the Customer perspective, rather than simply finding a measure for
'Customer'). Although lists of general and industry-specific measure definitions can
be found in the case studies and methodological articles and books presented in
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We have all seen cartoons depicting the owl that can turn his head 180 degrees to
the left and 180 degrees to the right. But in reality, an owl can only turn his head
270 degrees — not in a full circle. Full circle or not, it's still a good range of vision.
I'm sure you're wondering what this has to do with your business. But consider this.
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This can be a powerful tool. Each of wants to know how we're doing in our work.
This method of collecting evaluative input is an excellent source of motivation for
employees because it provides a truly honest assessment of how the employee
and her performance are viewed by a variety of constituents.
This type of feedback helps employees see themselves as others see them and
allows them to seriously examine their behavior. It can reveal areas in which
employees are performing particularly well and those areas in which there is room
for improvement. It provides information of which neither the employee nor the
supervisor may be aware. Specific input allows employees to adjust their
performance.
Typically, employees will find this methodology to be more fair. When they consider
this process as opposed to being evaluated by an individual supervisor who has
limited knowledge of what they do, they will begin to see the value in this type of
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evaluation. They will conclude that the 360-degree feedback is more accurate and
equitable than other traditional approaches and puts all employees on a level
playing field.
This review process is also helpful for the supervisor. It can provide a more
accurate assessment of an employee's performance and help eliminate
accusations of favoritism. The 360-degree process provides greater objectivity.
And because the feedback is submitted anonymously, it provides a supervisor with
the most unbiased and accurate information from which to draw performance
conclusions.
Most people are not able to see clearly how their performance is either enhancing
the work situation for others or detracting from it. This performance evaluation
method can help reveal these areas and allow us to improve the way we do our
job, thereby creating greater harmony and better productivity in the workplace. The
360-degree evaluation will help employees identify their strengths so they can build
on them at the same time it addresses their skill gaps. It is a process that leads to
continuous learning, team building, growing self-confidence and improved
productivity.
Sounds like a winning system, right? It can be, but your organization must be ready
to accept the change from the traditional method of employee evaluation. Your
formal and informal leaders must buy in to this idea and see the value of its
adoption. Some questions you should ask yourself include the following:
What is the level of trust in your organization? Will your culture support
honest feedback?
Is upper level management willing to lead the way and volunteer for 360-
degree evaluation?
If you cannot answer "yes" to these and similar questions, then your organization
may not be ready for 360-degree evaluations. While this can be a powerful and
positive tool when tied to strategic goals and individual development, you might
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Further support is available from your local Small Business & Technology
Development Center to help you with human resource and other business
management issues.
MANAGEMENT BY OBJECTIVES
,
The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set. Ideally
when employees themselves have been involved with the goal setting
and the choosing the course of action to
Clarity of goals – With MBO, came the concept of SMART goals i.e.
goals that are:
Specific
Measurable
Achievable
Realistic, and
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Time bound.
The goals thus set are clear, motivating and there is a linkage
between organizational goals and performance targets of the
employees.
The focus is on future rather than on past. Goals and standards are
set for the performance for the future with periodic reviews and
feedback.
Motivation – Involving employees in the whole process of goal setting
and increasing employee empowerment increases employee job
satisfaction and commitment.
Self Appraisal
Performance appraisal feedback
Performance Review - Preparation
Performance Consulting: Moving
Performance Review - The Beyond Training
Meeting
Writing performance appraisal
How to Complete a Performance
Appraisal Form Performance Appraisal Training
Performance period
PMS follows an April-March annual cycle aligned to the financial year. The cycle
consists of three phases, namely, Performance Planning, Mid-Year Review, and
Final Performance Review. The critical calendar months and the sequence of
events for these phases are represented in the following figure:
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Cascading process
Performance planning is undertaken from April to June. Once the MOU between
the Organization and MOP&NG is finalised, these targets are cascaded to the
divisions. The division heads then cascade them down to their subordinates. This
process is followed at all levels at which this is possible. At each stage of cascade,
some other targets which may not necessarily be cascaded down, may also be
added- these would be specific to specific roles, and may be in respect of ongoing
projects and carried forward from the previous year. This stage involves discussion
between Appraisers and Appraisee’s to set and agree on the contents of the
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Appraisee’s performance plan parameters for the coming year. Once approval is
obtained from the Reviewer, the performance plan is considered final.
Unique Roles
Definition of Performance
PMS allows the Appraisee to define his/her performance measures using the three
categories of KRAs defined in the following section.
Additionally, to be able to focus and prioritize on the basis of importance, each KPI
also has a weightage. This would be assigned by Appraisee and Approved by the
Appraiser
KRA:
Definition - Key Result Areas (KRAs) are “Critical outcomes towards which effort
is directed to support achievement of desired business results”. Each KRA in a role
profile would fall in one of the following buckets
(b) Financial: KRAs pertaining to direct impact on top line (revenue) or bottom
line(cost) at a decision making level.
Select KRAs
Once the Appraisee has finalized the list of KRAs and corresponding KPIs, s/he
will propose weightages and 5 levels of targets for each KPI.The Appraiser will use
the stretch tool to determine the stretch involved in the targets at level 3.
Performance plan submission will be possible for Appraiser and reviewer only after
90% of the plans are submitted. The appraiser would be provided with dynamic
display of Weighted Average Stretch for the Plan and Grade-wise Weighted
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Average
Stretch for Reporting Group; Plan Weighted Average would be Sum of Product of
Individual KPI Weight and stretch Assigned to the KPI. Weighted Average Stretch
for plans under an Appraiser / Reviewer group will be limited at 0.90 through
system intervention.
If the Appraiser is not in agreement with the choice of KRA/KPI or the weights and
assigned by Appraisee, the Appraiser can send the plan back and it is suggested
that the Appraiser and the Appraisee should attempt to achieve a consensus
through a
Note: The Appraiser will finally view and accept/ discuss/ ‘refer to Reviewer’ the
performance plan. In case the Appraiser feels the need, he/she can approach the
Reviewer for appropriate
inputs. The Reviewer and Appraiser would arrive at a solution through a process of
discussion that would align the points of view of the Appraiser and Appraisee. The
Appraiser would discuss the same with the Appraisee to close the issue.
In the unlikely event of the need for further escalation, the issue can be taken to
the Reviewer on a case to case basis. The Reviewer would have a joint discussion
with the Appraisee and the Appraiser where the decision taken by the Reviewer
would be final. It is mandatory for the Reviewer to view and approve all plans,
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phase is closed.
Competencies
Definition – Behavioral Competencies are defined as “Skills and abilities described
in behavioral terms that are coachable, observable, measurable, and critical to
organizational performance. Competencies form the foundation of “what”
capabilities are required for the successful execution of roles and responsibilities,
thereby driving functional, unit and organization performance”
The list of generic/ behavioural and leadership competencies are appended to this
document. Functional competencies include technical skills and know-how required
to
discharge duties. The list and detailed models for functional as well as generic
competencies are available on the IndianOil Intranet.
Based on the varying demands of each role, competencies and their manifestation
degrees vary. Therefore, for each role, applicable competencies from this list & the
desired proficiency level for these have been identified and included in each UR.
Although the Appraisee does not have the option to select competencies defined
for his role, s/he may view the competencies and proficiency levels which are
applicable to his role and he is expected to demonstrate on the job.
Values
Following are the core values which have been defined by the organization as
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essential
• Care
• Innovation
• Passion
• Trust
their feedback in correcting the performance level of the Appraisee, and the
consequent benefit to the Appraisee’s career.
• Positive feedback
• Corrective feedback
REFRENCES
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