Performance Management - the Crompton Greaves perspective by NS Srinivas

PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT

10th July 2009

THE STORY OF THE BUILDERAn elderly carpenter was ready to retire. He told his employer-contractor of his plans to leave the house building business andp glive a more leisurely life with his wife enjoying his extended family.He would miss the pay check, but he needed to retire. They couldget by.get by.

The contractor was sorry to see his good employee go and askedif he could build just one more house as a personal favor. The

t id b t i ti it t th t hi h tcarpenter said yes, but in time it was easy to see that his heartwas not in his work. He resorted to shoddy workmanship and usedinferior materials. It was an unfortunate way to end his career.

When the carpenter finished his work and the builder came to inspect the house, the builder handed the front-door key to the carpenter. “This is your house ” he said :”My gift to you”

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“This is your house,” he said, :”My gift to you”.

THE STORY OF THE BUILDERWhat a shock! What a shame! If he had only known he wasbuilding his own house, he would have done it all so differently.Now he had to live in the home he had built none too wellNow he had to live in the home he had built none too well.Think of yourself as the carpenter. Think about your house. Each day you hammer a nail, place a board, or carpet, or erect a wall. Build wisely. It is the only life you will ever build. Even if you live it for only one day more, that day deserves to be lived graciously and with dignity. The plaque on the wall says,”Life is a do-it-yourself project”.Who could say it more clearly? Your life today is the result of your attit des and choices in the past Yo r life tomorro ill be res ltattitudes and choices in the past. Your life tomorrow will be result of your attitudes and the choices you make today.

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Business Vs. PeopleBusiness Vs. People

CultureCulture

PEOPLE

FinanceMarketing

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g

ORGANIZATIONS OF THE PASTORGANIZATIONS OF THE PAST

Structure

StabilityStability

Consistency

Rules

Rigidity

Linear

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ORGANIZATIONS OF THE FUTURE

Exploration

Adjustment

Dynamics

Innovation

Exploration

Change UncertaintyUncertainty

Growth

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Deploy yourself. Strike hard. Try everything. : Warren Bennis

DEFINITION OF PERFORMANCE APPRAISALAPPRAISAL…

The overall objective of performance appraisal is toimprove the efficiency of an enterprise by attemptingto mobilise the possible efforts from employees. Suchto mobilise the possible efforts from employees. Suchappraisals achieve four objectives:

• Development and training• Planning job rotation• Assistance promotions• Salary reviews• Salary reviews

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PERFORMANCE MANAGEMENT :PERFORMANCE MANAGEMENT : WHAT IS IT?

Performance Management is an ongoingcommunication process, undertaken inpartnership, between an employee and hisor her immediate superior, which has twosub-sets :1. Involves establishing clear expectations;g p2. Understanding about the jobs to be

done.done.

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PERFORMANCE MANAGEMENT : WHAT IS IT?WHAT IS IT?

The essential job functions the employee isexpected to do;p ;How the employee’s job contributes to the goalsof the organization;What “doing the job well” means in concreteterms;How employee and supervisor will work togetherHow employee and supervisor will work togetherto sustain, improve or build on existingemployee performance;How job performance will be measured; andIdentifying barriers to performance and removingthemthem.

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PERFORMANCE MANAGEMENT : WHAT IS IT?WHAT IS IT?

Performance Management is a means ofti f d kipreventing poor performance, and working

together to improve performance.

Is a ongoing process with two wayg g p ycommunication between the performancemanager and the staff member.g

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PERFORMANCE MANAGEMENT : WHAT ISN’T?WHAT ISN T?

Performance Management isn’t :1. Something a manager does to an employee;2. A club to force people to work better or

harder;3. Used only in poor performance situations;4. About completing forms once a year.

Key point : it is about people working with people to makeevery one perform better and you have a much greater

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every one perform better and you have a much greaterchance to succeeding. Everyone wins.

OBJECTIVE OF PERFORMANCE APPRAISAL

Performance Appraisal is concerned with encouraging the BEST possible level ofPerformance Appraisal is concerned with encouraging the BEST possible level of Performance from an Executive through the provision of appropriate Management Support

Employee knows what they are expected to do and can determine how well theyEmployee knows what they are expected to do and can determine how well they have done it

Employee is involved in establishing objectives which raises their commitment to achieving themachieving them

Employee understands how his/her performance is measured and can monitor themselves

Employee feels that the results are important and attainable

Four main components of Performance Appraisal :

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Four main components of Performance Appraisal :

Plan ==> Act ==> Monitor ==> Review

PERFORMANCE APPRAISAL -NEEDSNEEDS

ORGANIZATIONAL EMPLOYEE

• To ensure the appraisal is fair & objective

• To Develop competent, trained &

• To discuss my performance

• To discuss plans for futureTo Develop competent, trained & motivated employees

• To identify Training & Development opportunities

• To get a fair hearing

• To provide ideas / feedback on roleopportunities

• To achieve organizational objectives

• To improve the flow of information

To provide ideas / feedback on role

performed

• To understand my role better• To improve the flow of information

• To raise performance standards

• To understand my role better

• To develop working relations

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HISTORY OF PERFORMANCE APPRAISALAPPRAISAL…

Early references of Performance Appraisal were over ahundred years back.

Merit Rating System – Federal Civil Service Commission :1887.

1914, Lord & Taylor introduced performance appraisal.

Initial Performance Appraisals were more focused onindividual’s personality and traits than actualp yachievements.

1950 Peter Drucker’s Management by Objectives (MBO)1950, Peter Drucker s Management by Objectives (MBO)and Douglas McGregor’s book The Human Side ofEnterprise led to a formal Performance Appraisal System.14

NEW MODELS OF PERFORMANCE APPRAISALAPPRAISAL…

A Job Performance Model A Performer; In a givenSituation; Engages in certain behaviours; that producesresultsresults.

A Situation Analysis.

Traits based Performance Appraisal.

Behaviorally Anchored Rating Scales (BARS) Appraisalon a specific job.

Essay-type Performance Appraisals

Balance Scorecard MethodologyBalance Scorecard Methodology.

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TRENDS IN PERFORMANCE APPRAISALItem Former Emphasis Present Emphasis

Terminology Merit Ranking Employee AppraisalPerformance Appraisal

Purpose Determine qualifications for wage increase, transfer, promotion, lay-off

Development of the individual, improved performance on the job; and to provide emotional security

Factors Rated Heavy emphasis upon personal traits

Results, accomplishments, performance

Techniques Rating scales with emphasis upon scales. Statistical manipulation of data for comparison purposes

Mutual goal-setting, critical incidents; group appraisal; performance standards; less quantitativequantitative

Post Appraisal Interview

Superior communicates his rating to employee and tries to sell his evaluation to him; seeks to have

Superior stimulates employee to analyze himself and set own objectives in line with job

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;employee conform to his view

j jrequirements; superior is helper and counselor

EFFECTIVENESS OF PERFORMANCE APPRAISAL

As an example company GE has used MBO / Theory Y approach in1960. Scientific Study results are :y

Criticism has a negative effect on achievement of goals.

Praise has little effect one way of the other.

Performance improves most when specific goals are established.

Defensiveness resulting from critical appraisal produces inferior performance.

Coaching should be a day-to-day, not a once a year activity.

Mutual goal setting, not criticism, improves performance.

Interviews designed primarily to improve a man’s performance.

Participation by the employee in the goal setting procedure helps produce favorable results

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favorable results.

Even today the above findings are equally relevant as they were in 1960.

HOW FORTUNE 100 COMPANIES USEHOW FORTUNE 100 COMPANIES USE PERFORMANCE APPRAISAL DATA

Improving work performance.

Administering merit pay.

Advising employees of work expectations.g p y p

Counseling & Motivating employees.

Making Career Decisions & career goalsMaking Career Decisions & career goals.

Assessing employee potential.

Development plansDevelopment plans.

Better working relationships.

V lid ti hi i d i i

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Validating hiring decisions.

Source : Steven Thomas and Robert Bretz “Research & Practice in Performance Appraisal.

PERFORMANCE EXCELLENCE

Is about reviewing and raising the.. Is about reviewing and raising theperformance threshold, for self and aspart of a team for competitive edge;part of a team, for competitive edge;setting and meeting stretch targets;accomplishing and exceedingaccomplishing and exceedingperformance commitments. It meansdiscouraging mediocrity in others anddiscouraging mediocrity in others andourselves and confronting status quo.

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Performance Excellence

• Pursues results with

Positive Indicators Negative Indicators

Frequently fails onPursues results withprofessionalism

• employee engagement andrespect to system / process

• Frequently fails oncommitments.

• Accepts mediocrityDi f il• Encourages Performance

Culture• Uncompromising

responsibility

• Disowns failure• Creates hurdles in the way

of performanceresponsibility

• Quality with speed• Proactively builds systems &

processes

• Transfers negative emotions• Indecisive even when

adequate data & authorityp• Nurtures calculated risks• Resolves conflicts in favour of

larger interests

exists.

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PHILOSOPHY

• To build a Performance sensitive Organizationg• To create a culture of measures for achievements – across all

functions.• To differentiate and identify star performers, consistent y p ,

performers, and “below expectations performers”• Driven around Organization Values & Competency Model

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Transformation towards a Great Place to Work …

THRUST:

• Build a Value-driven Leadership• Build a Value-driven Leadership• Develop a Performance sensitive Organization• Create an Engaged Culture amongst Employees

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Transformation towards a Great Place to Work …

Diff ti tiDifferentiating…

Apples from

Oranges

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UNDERSTANDING CAPACITIES AND COMPETENCIESCOMPETENCIES

PotentialCapacity

CompetencyCapacity

Capacity = Demonstrated competencies+ U li d t ti l+ Unrealized potential

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Capacity to Learn

Willingness to look

Observing one’s own thoughts, actions and emotions/feelings and g

back and learn; ability to learn from mistakes and identify areas of

improvement

emotions/feelings and using the awareness to

improve further and perform better

Ability to get into a new y gexperience with an open mind and flow with the

experience. The child like ability to derive joy out of

learning

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learning

Capacity to ThinkCapacity to Think

Capacity to think comprises of analysis creativity &Capacity to think comprises of analysis, creativity & innovation and a combination of both i.e. judgment

Analysis is about asking the right

Creativity and Innovation is about questions and

breaking complex things into simpler

things Judgment requires a combination of both, this is what

Innovation is about generating new

thoughts and breaking the existing patterns of

thought

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,helps us take quality decisions

Capacity to Relatep y

Ability to Listenwith warmth and

Empathizingis the ability to with warmth and

respect. Active listening is free of biases,evaluation and pre-conceived

ti

Trust requires a combination of both

is the ability to put oneself in

someone else’s shoes(by getting out of our own

h )notions empathizing and listening. It’s about authenticity,

openness and genuineness

shoes)

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Capacity to Act

Organizing one’s time and

delegation,attention to detail and focus on the right process build capacity to and

resources so that we convert our intentions into reality

Working under pressure and time constraints and the ability to handle multiple tasks without

build capacity to implement

into reality handle multiple tasks without negative stress

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BASIC CORE COMPETENCIESBASIC CORE COMPETENCIESManaging RelationshipsDirection SettingP l St lPersonal StyleGetting ResultsManaging Change

ENABLERS

High Learning Quotient

Professional Conviction

P f E ll29

Performance Excellence

PERFORMANCE MANAGEMENT : BENEFITSBENEFITS

For Managers :

1. Reduce your need to be involved in everything thatgoes on (micromanagement).

2 S ti b h l i l k d i i2. Save time by helping employees make decisions ontheir own (knowledge building and clearunderstanding).g)

3. Increases role clarity among employees.4. Reduces mistakes and errors (and their repetition).

PMS is an investment upfront for the Manager can just let theiremployees do their jobsp y j

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For Employees :

1. Know their performance during the year (Discusswork progress; receive feedback.

2. Enables degree of empowerment – make decisionsab es deg ee o e po e e t a e dec s o s3. Clear role clarity.4. Identifies the improvement areas.5 O t it t d l kill5. Opportunity to develop new skills.6. Reduces mistakes and errors (and their repetition).

Employee benefit from better understanding their jobs and their jobresponsibilities and enable them to act freely within the definedp yparameters.

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For Organization :

1. Every employee understands how their workcontributes to the success of the companycontributes to the success of the company.

2. Increases Productivity.3 High Morale among all employees3. High Morale among all employees.4. Documenting performance problems on timely

basisbasis.5. Tracking communication and YOY performance.6 Legal Perspective6. Legal Perspective.

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PERFORMANCE MANAGEMENT : KEY SUCCESS FACTORSKEY SUCCESS FACTORS

PMS should provide :1 A means of work that aims to achieve the goals1. A means of work that aims to achieve the goals

and objectives of the organization.2 Identify the critical processes remove bottle-2. Identify the critical processes, remove bottle

necks and improve processes that keep theorganization more effective.

3. Clear integration of other HR sub-processes suchas promotions, employee development etc.

4. A method of providing regular, ongoing feedbackto employees in a way that supports theirmotivation.

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PERFORMANCE MANAGEMENT : KEY SUCCESS FACTORSKEY SUCCESS FACTORS

PMS should provide :5 A means of preventing mistakes by clarifying5. A means of preventing mistakes by clarifying

expectations, establishing shared understandingof what employees can and cannot do on theirp yown;

6. Showing how each employee’s job fit in theorganization context.

It is very important to think PMP as system; focus on theoverall purpose.

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PERFORMANCE MANAGEMENT : EFFECTS OF POOR DESIGN AND EXECUTIONEFFECTS OF POOR DESIGN AND EXECUTION

1. Undermines the credibility of management.2. Employees consider the process as “waste of

time”.3. Hurts morale.4. Bring employee and manager in a confrontational

positions that damages motivation.5. Poor systems and execution can provide a false

f isense of security.6. Managers may suddenly find themselves caught

i it ti i hi h th h l l t d lin a situation in which they are helpless to dealwith performance problems. 35

THE CONTEXT OF MEASUREMENT

Performance Measurement is a process by which anagency / program / function / outlet office objectivelyassesses and evaluates the extent to which it isaccomplishing a specific objective, goal, or mission.accomplishing a specific objective, goal, or mission.Performance measurement alone is incomplete.

Performance Management is a systemic link betweenPerformance Management is a systemic link betweencompany strategy, Investments, and processes.Performance Management is a comprehensivemanagement process.

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WHY MEASURE PERFORMANCE?

Enables decision makingManage by resultsManage by resultsPromote accountabilityDistinguish between program success and failureAllow for organizational learning and improvementAllow for organizational learning and improvementJustify budget requestsOptimize InvestmentsProvide means of performance comparisonProvide means of performance comparisonFulfill mandatesEstablish catalysts for changeAnd so onAnd so on…

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WITHOUT MEASURING, DECISION MAKERSHAVE NO BASIS FOR:

Knowing what is going on in their enterpriseEffectively making and supporting decisions regarding

HAVE NO BASIS FOR:

Effectively making and supporting decisions regarding Investments, plans, policies, schedules, and structureSpecifically communicating performance expectations to subordinatessubordinatesIdentifying performance gaps that should be analyzed and eliminatedProviding feedback that compares performance to a standardProviding feedback that compares performance to a standardIdentifying performance that should be rewarded

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TYPES OF MEASUREMENTS

Definition ExampleIntermediate outcomes that predicts or

Measure Type

Leading

Lagging

Intermediate outcomes that predicts or drive bottom-line performance results

Bottom-line performance results resulting from actions taken

Employee turnover rate

Employee satisfaction rating

Input

Output

Amount of Investments, assets, equipment, labor hours, or budget dollars used

Units of a product or service rendered Number of Value Meal orders fulfilled

Number of cashiers

Output

Outcome

- a measure of yield

Resulting effect (benefit) of the use or application of an output

Number of Value Meal orders fulfilled

Customer satisfaction rating

Objective / Quantitative

Empirical indicators of performance

Subjective / Q alitati e

Perceptions and evaluations of major customers and stakeholders

Wait time

Customer complaints received as a % of total customers servedQualitative customers and stakeholders of total customers served

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EXAMPLES OF MEASUREMENTS BY PERSPECTIVE

Stakeholder / CustomerStakeholder / Customer Internal ProcessesInternal ProcessesC t t ti f ti l l • Number of unscheduled maintenance calls

• Production time lost because of maintenance problems

• Percentage of equipment maintained on schedule

• Current customer satisfaction level

• Improvement in customer satisfaction

• Customer retention rate

• Frequency of customer contact by customer i • Average number of monthly unscheduled outages

• Mean time between failures

service

• Average time to resolve a customer inquiry

• Number of customer complaints

Learning and GrowthLearning and Growth InvestmentsInvestments• % of facility assets fully funded for upgrading

• % of IT infrastructure investments approved• Percentage employee absenteeism

H f b t i • % of IT infrastructure investments approved

• # of new hire positions authorized for filling

• % of required contracts awarded and in place

• Hours of absenteeism

• Job posting response rate

• Personnel turnover rate

• Ratio of acceptances to offers

• Time to fill vacancy

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A MULTIPLE CHOICE QUESTION –APPROPRIATE MEASUREMENT ??APPROPRIATE MEASUREMENT ??

The measurement, % of employees following ai d t d l ld tsupervisor approved competency model, would most

likely be placed in which perspective of the BalancedScorecard?

a. Stakeholder / Customerb Learning and Growthb. Learning and Growthc. Agency Investmentsd. Internal Processes

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MULTIPLE CHOICE QUESTION –AND THE ANSWER ISAND THE ANSWER IS . . .

b – this measurement relates to helpinggrow the workforce and this would mostglikely fit with the Learning and Growthperspective of the Balanced Scorecard.

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SOME BASIC GUIDELINES FORGOOD PERFORMANCE MEASURES

• You should have at least one measurement for each

GOOD PERFORMANCE MEASURES

• You should have at least one measurement for eachobjective.

• Measurements define or explain objectives intifi bl tquantifiable terms:

Vague => We will improve customer servicePrecise => We will improve customer service byPrecise We will improve customer service by

reducing response times by 30% byyear end.

• Measurements should drive change and encourage• Measurements should drive change and encouragethe right behavior.

• Should be able to influence the outcome.

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SELECTION CRITERIA FOR PERFORMANCE MEASUREMENTSPERFORMANCE MEASUREMENTS

MEANINGFUL - related significantly and directly to organizations g y y gmission and goal

VALUABLE – measure the most important activities of the organizationorganization

BALANCED – inclusive of several types of measures (i.e. quality, efficiency)

LINKED - matched to a unit responsible for achieving the measure

PRACTICAL – affordable price to retrieve and/or capture data

COMPARABLE – used to make comparisons with other data over time

CREDIBLE - based on accurate and reliable data

TIMELY d t d t i bl ti fTIMELY - use and report data in a usable timeframe

SIMPLE -- easy to calculate and understand44

WHAT IS PERFORMANCE PLANNING?

Performance Planning is a DiscussionProcess.

A First Step of an Effective PerformanceA First Step of an Effective PerformanceManagement Process.

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OBJECTIVE OF PERFORMANCE PLANNING

Coming to agreement on the individual’s key jobComing to agreement on the individual s key jobresponsibilities.

Developing a common understanding of the goalsand objectives that need to be achieved.

Identifying the most important competencies thatthe individual must display in doing the job.the individual must display in doing the job.

Creating an appropriate individual developmentgplan.

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IMPORTANCE OF PERFORMANCEIMPORTANCE OF PERFORMANCE PLANNING

It is the bedrock of an effective PMSIt is the bedrock of an effective PMS.

Gives Manager the chance to talk about his/heri hi h i l i i hexpectations which are genuinely important in the

individual’s job.

Gives Individual a clear operating charter so thathe can go about doing the job with the fullcertaintycertainty.

Individual’s working on the highest priorityresponsibility and operating in a way that theorganization expects. 47

GOAL SETTING A KEY ELEMENT OFGOAL SETTING – A KEY ELEMENT OF PERFORMANCE PLANNING

It identifies the key responsibilities of theIndividual’s jobIndividual s job.

The competencies or behaviours that theporganization expects every one to display.

S tti i t l f th i ( )Setting appropriate goals for the upcoming year(s).

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GOAL-SETTING FUNDAMENTALS

KPA – principle of prioritizing, concentrating – What h bit d I d t lti t t ti thihabits do I need to cultivate to practice this principle?Goals Objectives Targets Outputs DeliverablesGoals, Objectives, Targets - Outputs, Deliverables.Measures of Performance –

choosing appropriate meas reschoosing appropriate measures, using multiple measures,line and service measuresline and service measures.

Time Standards for each deliverable.Detailing Aligning and CascadingDetailing, Aligning, and Cascading.

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GOAL SETTING RESULTSGOAL SETTING – RESULTS

It forces the identification of critical success factorsIt forces the identification of critical success factorsin the job.

It mobilizes individual and organizational energy.

It forces concentration on highest priority activitiesIt forces concentration on highest priority activities.

It increases probability of success.It increases probability of success.

It generates increases in productivity.

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CG’S PMS JOURNEY : INSIGHTS &

EXPERIENCESEXPERIENCES

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CG’s PMS JOURNEY- KEYLLEARNINGS

• Role Clarity for an Individual• Role Clarity for an Individual.• Employee started feeling & seeing that they

are part of Company / Business Performanceare part of Company / Business Performance.• Employees have taken ownership of their

goalsgoals.• Interdependency to achieve goals.

E l f l PMS b f i• Employees feel new PMS to be fair.• Pushed individual performance to higher

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level.

CG’s PMS JOURNEY- KEYLEARNINGS

• Institutionalized culture of meticulous planningt hi l

LEARNINGS

to achieve goals.

• Subjectivity in appraisal of performance reduced.j y pp pGiving way to objectivity.

• Performance Counseling sessions got kicked off• Performance Counseling sessions got kicked off.

• Linkage between Business performance andIndividual Performance got established.

• Automation of process lead to speedy tracking

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Automation of process lead to speedy trackingand execution of Appraisal.

FEATURES OF CG’S APPRAISAL

Align the Business objectives, Individual Objectives & CG Values

FEATURES OF CG S APPRAISALSYSTEM

Values. Achieve Clarity on:

Roles (Principal Accountability)GoalsPerformance StandardPerformance Review Process.

Aspire towards a culture of “Performance Excellence”.

H l i E ti t F i iti ithi th i j b i th fi t tHelping Executives to Focus on priorities within their jobs is the first stepin managing performance at CG

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APPRAISEE’S OBJECTIVEAPPRAISEE S OBJECTIVEWhy I am Doing?What I am Doing?By When I am Doing?How am I doing ?

Getting feedback about:Getting feedback about:

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Strengths Opportunities for improvement

APPRAISEE’S OBJECTIVEAPPRAISEE S OBJECTIVE

Opportunity to express one’s point of view

Prepare an improvement /rectification plan

Check concern on individual growth anddevelopment & Have the achievementsacknowledged.

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acknowledged.

PURPOSE :GOAL SETTING PROCESS

Greater alignment of goals, performance measures and targets

Company and divisions

Company and support functions

Divisions and support functions

Cascading the same…from Company to Division/ function to departmentto individuals KPIs.

A system to clearly articulate performance expectations.

Raise the bar on company, division/ function and individualp y,performance.

Differentiate between performance and great performance

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Create ownership of the process

GOAL SETTING PROCESS

Individual

Top Management Team

VISIONGoal Setting

10

15

20

25ROCESales Growth

Goal Setting TeamSetting Process

0

5

Y1 Y2 Y3

Business Plan Goal settingFramework

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SBU1

VISIONBusinessPlan

SBU 2

VISION PlanProcess1

Process2

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GOAL SETTING PROCESS- CASCADING GOALS

Str.Business Unit Goal

BP Goals &

Process GoalsProd. Supply,

Sub function Goals

pp yMarketing

New Products

Production S l

Group Goals

SalesR&DHRDFIN Plant, Division

Key Performance

Key Influencers

,

Factory Manager,Production Manager,Divisional Manager,

Indicatorsg ,

Area Sales Manager

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GOAL SETTING PROCESS -WHAT DOES GOAL SETTING TEAM DO?WHAT DOES GOAL SETTING TEAM DO?

Define goal setting principles (approach, stretch, goalselection criteria, cascade principles etc)

Review goals at each level to check conformance togoal setting principles

Reviewing goals for conformance to Business Plan

Vetting functional goals and individual performanceplans

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Goals for each SBU and function shall be set in the realm of Goal Setting Framework OK’d by the Top Management Team and cascaded from the Corporate Vision

Process DescriptionCorporate

• Goal Setting Principles to include approach to goal setting, principles on cascading, stretch, review of goals, relativity etc

Process Description

Corporate Vision

1 2 3

Operating Goals

6

Translate Translate LinkGoal Setting

Principles

Goals

relativity etc

• Goal Setting committee may consist of• A representative from the Top Management

• Head of HR

SBU Goal s

4SBU

Business Plan

5SBU

Operating Goals

7SBU

Translate Link

Link LinkAssign

• VP IT & Strategic Planning

• Goal setting to be done for SBU, Function, Sub‐function and Group Level Function

Operating

8Function Link

SBU Goal Setting

l

5

Link

• Individual KPAs are derived from goalsGoalsPrinciples

Goals at each level will be set, following principles on selection of goals, stretch, benchmarks etc.

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ACTIVITY RESPONSIBILITY

Annual Planning Committee

Level 1, The Annual Planning

Committee

Annual Planning Committee

Annual Plan

Derive SBU level goals Level 2: SBU heads

Derive Functional goals Level 3: SBU, Function heads

SBU/Functional goals

Verify SBU goals, functional goals for conformance to annual plan, principles of goal setting,

verify lateral linkages for functional goals

Goal Setting Committee

g ,

verify lateral linkages for functional goals

A 63


ACTIVITY RESPONSIBILITY

A

Cascade functional goals down to team & individual goals Level 4: Function Heads and all Managers

Sub-functional & Group goals

Function Heads to verify Sub-function goals and Sub-function Heads to verify all individual goals for

conformance to annual plan, principles of goal setting, and lateral linkages

Functional, Sub-functional Heads

Goals tie up linearly to annual plan,or laterally across functionsNo

Yes

Rework Goals

Finalize Performance Plans Goal Setting Committee64

CG’s GOAL SETTING FRAMEWORK

1. Goal Setting framework - basis on which goals are set by all the Units in CG.

Various bases/references used are:

G l S tti F k M if t tiGoal Setting Framework Manifestations

Vision focused Goals commensurate with corporate vision

Historical basis Growth/Improvement over last year

Market linked eg. Industry growth + 4%

Value focused Goal setting to achieve objectives of acertain level of TSR/EVA/other valuecreation objectivescreation objectives

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CG’s GOAL SETTING FRAMEWORK

2. Bases are interactive and not mutuallyexclusive Recommended that the goal settingexclusive - Recommended that the goal settingprocess takes into account all the abovefactors.factors.

3 Goal setting committee provides the framework3. Goal setting committee provides the frameworkat all levels of goal setting,i e strategic objectives improvement expectationsi.e. strategic objectives, improvement expectations,benchmark peer companies and value creationexpectations, if any

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1. Inputs 2. Process 3. Outputs 4. Outcomes 5. Goals

GOAL SETTING PROCESS- A Performance planning Framework

Skilled

Design of products/ services

P d ti fMotivated, Engaged Employees

Customer Requirements

Delighted Customers

Production of Products

Performanceof services

Products

ServicesA B C

Repeat Business

Requirements

Raw materials & Equipments

Customers’ Needs Met

Delivery/ Distribution of products/ Services

Services

Financial Results

A B DC Long Term

Survival

Capital Servicing Products

A B C DInput Measures

Process Measures

Output Measures

Outcome Measures

1. Employee Engagement

2. Supplier

1. Processes/ operational Measures

2 Safety/ Environmental

1. Product/ Service Quality Measures

2 Financial

1. Customer Satisfaction

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Performance3. Financial Measures

2. Safety/ Environmental Measures

3. Financial Measures

2. Financial Performance Measures

PERFORMANCE TREE

RoS

a3% Exp

RoCE(PBIT)

a3% Exp.

a4 % Deprn.(+)a1 %

(X)

a5 % FC

(+)P % a2

(X)

OrganizationOrganizationCap Turns a6 % WC

( )gPerformance

gPerformance

Market‐Old/New

SALES Growth New Products

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Cascading Measures : IllustrationCorpora Key Financial Key Operational Outcomes Key Influencers

•Sales from unexplored markets

[Different countries,Different categoriesNew ProductsNew Services] •End Customer /Dealer

S i f i I d

te visionKey Financial

IndicatorsKey Operational Outcomes Key Influencers

GM Manufacturing

P&S Manager

Sales growth

ExistingMarket Share/Segments

]Satisfaction Index

•Revenue from New Products (Cutting edge products) •Target number of

vendors per item

•Brand Profitability

Profits

Costs

• ‘A’ class item procurement lead time

• ‘A’ class item inventory turns‘A’ class item cost / cost

Vision

•Supply chain cost s- Inventory Turns- Transportation costs/Sales- Direct Material cost/Cost of production

Di t l b t/C t f d ti

•Reduction in RM cost and Cycle time due to formulation efficiency

•Reduction in raw material costs (Vendor participation in Cont.

•Direct material cost/cost of production•RM, PM, FG inventory turnsT t ti

• ‘A’ class item cost / cost of production

R0CE

•Selling costs-media spend-promotion costs- MR-Salaries & overheads

- Direct labour cost/Cost of production- Direct expenses/Cost of production

improvement)•No. of items under VMI

•Transportation costs/Sales

•Value of RejectsI t f t k t•Debtors turnover ratio

Capacity utilization

Capital•Stockouts of RM, PM•Plant Uptime

•Instances of stockout of RM

•Value/volume supplied by self certified vendors69

IT &STRAT. PLANNING•Internal customer satisfaction inde

Corporate i i

Fin Measures

Functional measures

Sales growth

•Sales from unexplored markets

•End Customer /Dealer Satisfaction Index

satisfaction index- Information- IT Infrastructure•Cost & time overruns in ERP implementation

•Process Efficiencies

vision

Vi i

ExistingMarketshare

•Revenue from new products (Cutting edge products)

ENGG. SERVICES•Process cost reduction•Additional capacity created on account of improvement projects

•Time & Cost overruns of projectsProfits

Vision

HR•Ratio of HR operating expense to total operating expense

•Percent of workforce having desired competencies

Processes

projects•Brand Profitability

Costs

•Supply chain cost s

•Reduction in RM cost and Cycle time due to formulation efficiency

ROC

•Attrition rate/staffing rate•Reduction in manpower costs through redeployment of staff

•Training inputs/employee

FINANCE , CORPORATE AFFAIRS

•Supply chain cost s- Inventory Turns- Transportation costs/Sales- Direct Material cost/Cost of production- Direct labour cost/Cost of production- Direct expenses/Cost of production-Cost of reprocessing

E•Selling costs-media spend-promotion costs- salaries & overheads•Debtors turnover ratio

AFFAIRS•Timeliness of preparation of financial statements and MIS

•Cost of Funds-Procurement of funds against targets

- Returns from surplus fundsCash/fund flow managementCapital

Capacity utilization

- Cash/fund flow management•Successful negotiation mergers & acquisitions

•Instances of significant savings on account of interpretation of statutes

Capital

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The Goals need to be Understood as:

Objectives

Measures

Targets

71


Objectives

• Objectives are statements of intent to achieve specific business

results or critical outcomes

• For Example:

Reduce throughput timeImprove unit price realizationBenchmarking against the bestI k t hImprove market reachManage investor relationsMove to systems oriented product delivery parametersImprove plant and manpower productivityStandardi e IT sol tions and implement ERP

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Standardize IT solutions and implement ERP Increase operating efficiency for the department Achieve accelerated sales growth through exports


Measures

• Measures are specific quantifiable parameters by which to measure

th hi t f bj tithe achievement of an objective

• For Example:

Reduce throughput timeImprove unit price realizationBenchmarking against the bestImprove market reachImprove market reachManage investor relationsMove to systems oriented product delivery parametersImprove plant and manpower productivityStandardize IT solutions and implement ERP

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Targets

• Measures are specific quantifiable parameters by which to measure

th hi t f bj tithe achievement of an objective

• For Example:

Reduce throughput timeImprove unit price realizationBenchmarking against the bestImprove market reachImprove market reachManage investor relationsMove to systems oriented product delivery parametersImprove plant and manpower productivityStandardize IT solutions and implement ERP

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CHARACTERISTICS

• It is a step by step processIt is a step by step process• It examine the employee strengths and

weaknessesweaknesses• Scientific and objective study• Ongoing and continuous process• Secure information for making correct g

decisions on employees

75

HOW PA CONTRIBUTE TO FIRM’S COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES

Improving performance

Making correctdecisionValues and behavior

Competitive advantage

Ensuring legalcompetence

Minimizing dissatisfactionAnd turnover

76

FORCED DISTRIBUTION METHODFORCED DISTRIBUTION METHOD

No. of employees

10% 20% 40% 20% 10%

employees

poor Belowaverage

average good Excellent

Force distribution curve77

LINKAGES OF PMS

Rewards & Recognition

s

Performance Management

System

Career Management

Job Rotation System

Based on Balanced Scorecard Approach

gRotation

ApproachDevelopment

Plans

78

Focus of Performance MManagement

Progress and successtoward goal achievementtoward goal achievement

79

Assessing NeedsAssessing Needs

• Your goals

Th l ’ l• The employee’s goals

• The department’s goalsThe department s goals

• The organization’s goals

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ConsiderationsConsiderations• Focus on • Knowledge

performance issues• Clear expectations

g• Ongoing • Detailed

• Improvement • Productivity

• Monitored• Consistent

• Objectivity• Accuracy

P f

• Fair• Timely

• Performance, not person

• Motivational

81

Why Do Performance M t?Management?

• Communicate goals, mission, values, g , , ,purpose

• Improve working relationships• Improve management• Identify and communicate strengths and

f i tareas for improvement• Provide feedback• Develop• Develop• Monitor• Support

82

• Support

Reflecting on Performance Di iDiscussions

Think about your last review:Think about your last review:

Wh t th ht t i d?- What thoughts come to mind?- What went right, what went wrong?

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What Do Employees Want?What Do Employees Want?• Clear expectationsClear expectations• Positive/constructive

feedback on regular • Accurate job

descriptionsgbasis

• Understand • Be treated fairly and

consistentlyevaluation criteria

• Involvement in goal

• Sharing of info and resourcesJ b/ i h tsetting • Job/career enrichment opportunities

84

Elements and OutcomesElements and OutcomesElements OutcomesElements• Listening

Outcomes• Better performance

• Coaching • Improved morale, trust and loyalty

• Feedback

trust, and loyalty• Commitment

85

Listening SkillsListening Skills

• Active listeningActive listening• Expression

V b l/ b l• Verbal/non-verbal cues• Distractions• Retention

86

Active ListeningActive Listening

• ReflectionReflection• Reiteration/Paraphrase

B d L• Body Language• Elaboration• Acknowledgement

87

Coaching SkillsCoaching Skills

• Observation • SolutionsObservation• Counsel

C diti

Solutions • Agreement

F ll th h• Condition• Criteria

• Follow through• Adjustment

• Response • Follow-up

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FeedbackFeedback

• Purpose • AccuratePurpose• Setting

Ti i

Accurate• Balanced

R l t• Timing• Forward focused

• Relevant • Comprehension

• Two-way• Responsive

• Agreement• Follow-upResponsive Follow up

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Giving Feedback

• Professional• Purpose

• Start with positive• “I” vs “you”Purpose

• Listening vs. talkingP f t

I vs. you statements

• Factual• Performance, not personality

• Factual• Strategize

• Support • Privacy

• Goal setting focus• Resolution

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y

Receiving FeedbackReceiving Feedback

• Have an open mindHave an open mind• Avoid defensiveness

Li t f i• Listen for meaning• Seek out resolution• Give guidance• Utilize effectivelyUtilize effectively

91

Communicating EffectivelyCommunicating Effectively

• Preparation Preparation • Professionalism

M t hi b d l t• Matching body language to message• Tone awareness• Scripting• FocusingFocusing• Responsiveness

92

Problem SolvingProblem Solving

• DefineDefine• Brainstorm alternatives

Id tif• Identify causes• Collect/analyze info• Consensus• Action planAction plan

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ConflictConflictDestructive Conflict

• Adversarial iti

• Issues/problems not

Destructive Conflict

positions• Right vs. wrong

N li t i

defined• Breakdown in

• No listening• No alternatives

offered

communication• Win/lose, lose/lose

offered• Unyielding

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ConflictConflictConstructive Conflict

• Focus on issueA k l d

• Allow reflectionR b k

Constructive Conflict

• Acknowledge • Allow for venting

• Repeat back• Brainstorm

lt ti• Separate feelings from issues

alternatives• Obtain agreement

/• Active listening • Win/win

95

COACHINGCOACHING

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• “Coaching is a solution–focused, results–orientated systematic process in which the Coach facilitates the enhancement of performance, self–directed learning and personal growth of

other indi id als”other individuals”

Coaching is• Coaching is…

– A means for learning and development.

About the Coach guiding the coachee towards his or her goals– About the Coach guiding the coachee towards his or her goals.

– About the mutual sharing of experiences and opinions between

the coach and the coachee to create agreed-upon outcomesthe coach and the coachee to create agreed-upon outcomes.

– About the Coach inspiring and supporting the coachee.

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Coaching is NOT…

– An opportunity for the coach to correct the

coachee’s behaviors or actions.coachee s behaviors or actions.

– About the coach directing the coachee to meet

goals.

– About the coach being the expert or supervisorAbout the coach being the expert or supervisor

with all the answers.

– About the coach trying to address personal

issues of the coachee.

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• Coaching is about individual change and continuous improvement.

I di id l h i l th h• Individual change involves three phases:

Phase One: Awareness and AcceptanceAwareness and Acceptance

A clear understanding and assessment of current behaviors that lead to effective leadership

Phase Two:Action and Application

A clear personalised plan to

Phase Three:Support, Maintain and

Measure A clear personalised plan to address specific behaviour

gaps with measures of success

A support framework that comprises key stakeholders that will help bring about change and

monitor progress

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In the Coaching process, the Coach acts as a Personal Facilitator wherein s/he takes shared ownership of

the key behavioral and performance outcomes of the coachee.

The Coach provides a high level of supportive behavior which includes frequent (monthly) contact,

collaborative idea generation, ongoing feedback on progress, suggestions for action. The Coach indulges

in a low level of directive behavior. This means that the coachee must take primary responsibility of

thinking through options, arriving at plans, executing plans and reflecting on behaviors.

2Coach as

3Coach as

Trainer/Teacher

Psycho‐educational. Explain and teach models and methods for change.

Personal Facilitator

Shared ownership. Collaborative brainstorming. Creation of personal reflective space.

4Coach as Mentor

Infrequent contact.e Be

haviou

r

1Coach as Consultant

Frequent contact.qMinimal direction.

High degree of self‐directed learning from coachee

Level of Sup

portive q

Coach leads and directs process, may set agenda.

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Level of Directive Behaviour

Adapted from : Chapman, T., Best, B., & Van Casteren, P. (2003)

An Effective CoachWhile there are several attributes and definitions to define a good coach, an effective coach must do the following:

• Display a genuine interest in the coachee’s development• Build a good rapport with the coachee • Establish trust• Inspire Energize and Motivate• Inspire, Energize and Motivate• Help the coachee ‘find the answer’• Maintain focus on results

Maintain focus on resultsThe coach must practice ‘tough love’ with the coachee The coach must ensure thatthe coachee. The coach must ensure that the coachee never loses sight of his/her goals.

Managing

Focus on:

Telling

Di ti

Coaching

Focus on:

Exploring

F ilit tiManager as a CoachFor a Manager to make a transition from Managing people to Coaching people, it is important that s/he traverses the

Directing

Authority

Immediate needs

Typically want one

Facilitating

Partnership

Long–termdevelopment

101

is important that s/he traverses the following continuum:

Typically want onespecific outcome Open to many possible

outcomes

There are five key steps in the Coaching process. Each step is detailed further:

SET AGENDA

1 2

ENROLL STAKEHOLDERS

MONITOR PROGRESS

COACHINGCOACHING

35

COACHINGCOACHING

GET FEEDFORWARD SUGGESTIONS

REVIEW ACTION

PLAN4

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• Session structure is a crucial factor in the success of the coaching relationship as it provides a t t d f t i t ti b t th C h d th C h

Structuring a Coaching Session - GROW modelstructure and focus to every interaction between the Coach and the Coachee.

• The GROW model, devised by Sir John Whitmore, is a recommended coaching model as it offers a way of structuring coaching sessions to facilitate a balanced discussion:

– GOAL - Defining what the coachee wants to achieve REALITY E l i th t it ti l t hi t d f t t d– REALITY - Exploring the current situation, relevant history and future trends

– OPTIONS - Coming up with new ideas for reaching the goal – WRAP-UP - Deciding on a concrete plan of action

• In practice, since most coaching is driven by questions, this means that different types of question areIn practice, since most coaching is driven by questions, this means that different types of question are used at each stage:

– GOAL - Questions to define the goal as clearly as possible and also to evoke an emotional response

• What do you want to achieve? What will be different when you achieve it? What's important y y pabout this for you?

– REALITY - Questions to elicit specific details of the situation and context• What is happening now? Who is involved? What is their outcome? What is likely to happen

in future?– OPTIONS - Open-ended questions to facilitate creative thinking

• What could you do? What ideas can you bring in from past successes? What haven't you tried yet?

– WRAP-UP - Focused questions to get an agreement to specific actions and criteria for success

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• What will you do? When will you do it? Who do you need to involve? When should you see results?

The Coaching Process• Given the highly contextual nature of coaching, the contracting process is highly critical for

success. Here’s what the process looks like.

Agrees On Takes Responsibility For

• Coachee is valued as a high performer in my team • Setting expectations of ‘breakthrough

f ’ ith th hManager of Coachee

y ea

• I am keen to help the coachee achieve a ‘significant breakthrough’ in performance as a leader

performance’ with the coachee

• Working with the coach to provide feedback and support to the coachee

• I am keen to achieve a ‘significant

Coachee

I am keen to achieve a significant breakthrough’ in my performance as a leader

• I am open to accepting and working on feedback from my peers, subordinates,

• Achieving the ‘significant breakthrough’ in performance

• Working on own behaviors and actions as decided during the processy

manager and coachg

Stakeholders

• I am keen to help the coachee achieve a ‘significant breakthrough’ in performance

• I will be honest and helpful in my feedback

Providing feedback and suggestions to the coacheebe o es a d e p u y eedbac

and suggestions

C h

• I am committed to helping the coacheeachieve a ‘significant breakthrough’ in performance • Setting up, facilitating and managing all

conversations during the process

104

Coach• I will treat all conversations during the

process as strictly confidential with the individual involved

conversations during the process

• Reporting progress to process owner

104

COUNSELINGCOUNSELING

105

COUNSELINGCOUNSELING

Subordinate-centered communication thatoutlines actions necessary for subordinatesto achieve individual and organizationalgoals.

106

Counseling Cycle Continuous Process

ARRIVE AT UNIT

OER/ NCOEREXIT

INTERVIEW

- Reception and Integration

UNIT

PATHWAY TOSUCCESS

Initial OER /NCOER Counseling (30

- Sponsorship

Quarterly CounselingNCOER ChecklistPersonal Issues

SUCCESS Counseling (30 days)

Quarterly CounselingNCOER Checklist

Periodic Reviewof OER Support

Form (R t / SR R t )

Event: Non-select for school /

promotion

(Rater/ SR Rater)Quarterly Counseling

NCOER Checklist

MIDPOINT6 MONTHS

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THE COUNSELING PROGRAM

– A company level leader’s responsibility

– A dynamic system of skilled leaders helping subordinates to develophelping subordinates to develop

Takes time energy and effort to build and– Takes time, energy, and effort to build and sustain

– An investment in leader development and the unitthe unit

108

THE EFFECTS OF COUNSELING ON THE ORGANIZATIONTHE ORGANIZATION

– Develops subordinatesDevelops subordinates

– Strengthens the chain of command

– Provides opportunity for leader growth

109

A COUNSELING PROGRAM SHOULD:

Strengthen the Chain of CommandStrengthen the Chain of CommandClarify policies and proceduresReinforce standardsReinforce standardsPrevent rumorsPraise successPraise successAvoid surprisesDevelop responsible subordinatesDevelop responsible subordinates

110

COUNSELING AND LEADER GROWTH

Through counseling, leaders:

- Learn about their own effectiveness- Learn more about “leadership”p- Gain an appreciation for the diversity of those they

lead

111

SUBORDINATE-CENTERED (TWO-WAY) COMMUNICATION

Subordinates assume an active role in theSubordinates assume an active role in thecounseling sessions and maintain responsibilityfor their actions. The following skills assistleaders in subordinate-centered counseling:

– Active listening– Responding– Questioning

112

THE LEADER AS A COUNSELOR

1 Leaders have a responsibility to1. Leaders have a responsibility todevelop their subordinates.

2. During counseling, the leader actsprimarily as a helper, not a judge.

113

THE LEADER AS A COUNSELOR (CON’T)

Th f ll i liti h l th l d tThe following qualities help the leader to assume an effective role during a counseling session:counseling session:

Respect for subordinates– Respect for subordinates– Self and cultural awareness

Credibility– Credibility– Empathy

114

THE REASON FOR COUNSELING

– To help subordinates develop in order to achieveorganizational goals and objectives.organizational goals and objectives.

– This overriding theme of “subordinateThis overriding theme of subordinatedevelopment” includes helping subordinates toimprove (or maintain) performance, solve problems,or attain goals.

C– Counseling requirements are also integrated into theevaluation system.

115

TWO CATEGORIES OF COUNSELING

Event-Oriented Counseling

Performance Counseling

Professional Growth Counseling

116

Event-Oriented CounselingCounseling centers around a specific event

or situation and is personal in natureExamples include:

Reception and Integrationp gPromotion Counseling

Corrective Trainingg

Referrals

SeparationSeparation

Crisis

Positive PerformancePositive Performance

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PERFORMANCE COUNSELING

IncludesPerformance improvement counseling;outlines values, attributes, skills, and actions;establishes performance indicators for the leadershipcompetencies.competencies.

PROFESSIONAL GROWTH COUNSELINGPROFESSIONAL GROWTH COUNSELING

Includes Pathway to Success and Career counselingIncludes Pathway to Success and Career counseling

Counseling is future oriented based on anestablished time lineestablished time line

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PREPARATION FOR COUNSELINGO O COU S G

1 Select a suitable place1. Select a suitable place2. Schedule the time3. Notify the subordinate well in advancey4. Organize the information 5. Outline the components of the counseling

session6. Plan a counseling strategy7 Establish the right atmosphere7. Establish the right atmosphere

Why should a leader prepare an outline?What is a counseling strategy?

119

THE STAGES OF A COUNSELING SESSION

1. OPEN THE SESSION

Identify the purpose and establish a constructive and subordinate-centered tone

2. DISCUSS THE ISSUE

H l th b di t d l d t di f th i d i bl

centered tone.

Help the subordinate develop an understanding of the issues and viablegoals to effectively deal with them.

3. DEVELOP A PLAN

Develop an action plan with subordinate. The plan that evolves fromthe counseling process must be action-focused and facilitate bothleader and subordinate attention toward resolving the identifieddevelopmental needs.

4. CLOSE THE SESSION

Discuss the implementation, including the leader’s role in supporting thes bordinate’s effort Gain the s bordinate’s commitment to the plansubordinate’s effort. Gain the subordinate’s commitment to the plan.Ensure plan is specific enough to drive behaviors needed to affect thedevelopmental needs

120

DEVELOP A PLAN OF ACTION

1. Actions should facilitate the attainment ofgoals.

2. Plan may entail contacting a referral agency.3. Actions should be specific enough to drive

behavior.

121

CLOSE THE SESSION

- Summarize the counseling session.- Discuss implementation of the plan; check for

understanding and acceptance.- Identify leader’s responsibilities- Identify leader s responsibilities.

What is follow-up and why is it necessary?p y yDescribe the assessment of the plan of action.Why is it

i t l t f th li ?an integral part of the counseling process?

122

APPROACHES – BLUE COLLAR

123

APPROACHES – BLUE COLLAR

SkillSkill

Productivity against standard norms

124

MEASURING PERFORMANCE

Individual Based : Grade Seniority linked with skillIndividual Based : Grade Seniority linked with skill

and Attendance

Team Based : Re-work, Rejections, Throughput

Combination : Of both the above factors.

Payments links to the above

125

ROLE OF IT IN PMS

126

ROLE OF IT - PMS

Integrated across the Company.

Uniform approaches and practices.

Timeliness : Initiation, Completion and Decision. , p

On-time tracking of Process.

Speed of Execution.

127

ROLE OF IT - PMS

System should provide for:System should provide for:

1. Development, reporting, and interpretation of key measures and indicators related to the quality,

f ftimeliness, accuracy, and usefulness of products and services.

2. Identification of significant performance trends to find successes and address deficiencies.

3. Useful and meaningful information and feedback for forecasters, managers, partners, and

t

128

customers.

A FINAL THOUGHT

The conventional definition ofThe conventional definition ofmanagement is getting work doneth h l b t l tthrough people, but real managementis developing people through work.

Agha Hasan Abedi- Agha Hasan Abedi

129

PERFORMANCE CRITERIA FOR EXECUTIVESEXECUTIVES

• For top managersFor top managers– Return on capital employed

Contribution to community development– Contribution to community development– Degree of upward communication from

middle-level executivesmiddle-level executives– Degree of growth and expansion of

enterpriseenterprise.

130

FOR MIDDLE LEVEL MANAGERSFOR MIDDLE LEVEL MANAGERS

• Departmental performanceDepartmental performance• Coordination among employees• Degree of upward communication fromDegree of upward communication from

supervisors• Degree of clarity about corporate goals andDegree of clarity about corporate goals and

policies

131

FOR SUPERVISORSFOR SUPERVISORS

• Quality and quantity of output in a given period Q y q y p g p• Labor cost per unit of output in a given period• Material cost per unit in a given periodp g p• Rate of absenteeism and turnover of employees• No of accidents in a given period

132