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Performance Management Project

Performance management and reward systems are used to ensure organizational goals are met effectively and efficiently. Performance management can focus on the performance of an organization, department, employee, or processes. Reward systems are programs set up by companies to motivate employees through monetary or other rewards based on individual or group performance. Larsen & Toubro is an engineering conglomerate that uses performance appraisal methods like critical incident reporting and a rating system to determine performance-linked bonuses. Companies are changing performance management by moving away from annual reviews and ratings towards more frequent informal check-ins and feedback to continuously guide employee performance.

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Tania Mukherjee
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59 views11 pages

Performance Management Project

Performance management and reward systems are used to ensure organizational goals are met effectively and efficiently. Performance management can focus on the performance of an organization, department, employee, or processes. Reward systems are programs set up by companies to motivate employees through monetary or other rewards based on individual or group performance. Larsen & Toubro is an engineering conglomerate that uses performance appraisal methods like critical incident reporting and a rating system to determine performance-linked bonuses. Companies are changing performance management by moving away from annual reviews and ratings towards more frequent informal check-ins and feedback to continuously guide employee performance.

Uploaded by

Tania Mukherjee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Performance Ankita Misra - 004

Chirag Saha - 066


Management Juhi Bhattacharjee - 074
Tania Mukherjee - 168
Project
PERFORMANCE MANAGEMENT AND REWARD SYSTEM

Performance Management is a process of ensuring that set of activities and outputs meets an
organization's goals in an effective and efficient manner. Performance management can
focus on the performance of an organization, a department, an employee, or the processes in
place to manage particular tasks.

Reward System refers to programs set up by a company to reward performance and motivate
employees on individual and/or group levels. They are normally considered separate from
salary but may be monetary in nature or otherwise have a cost to the company. It is a tool to
lure top employees in a competitive job market as well as to increase employee performance.
It also helps to attract talented individuals, motivate and retain them.
ABOUT THE COMPANY
● Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services
conglomerate, with global operations.

● L&T addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power, Process Industries and
Defence - for customers in over 30 countries around the world.

● L&T is engaged in core, high impact sectors of the economy and our integrated capabilities span the
entire spectrum of ‘design to deliver’.

● Every aspect of L&T's businesses is characterised by professionalism and high standards of corporate
governance.

● Sustainability is embedded into their long-term strategy for growth.


L&T FOCUSES ON

● Deliver results and impact organisational performance

● Constantly scan the rapidly changing environment and equip employees at all times with the required
knowledge, skills and qualities

● Leadership development

● Develop corporate citizens

● Deliver a global MNC and global leaders

● Focus on action-oriented training

● Synergise & optimise efforts - avoiding overlap and duplication and build a uniform curriculum.
Performance appraisal Method

Lorem 1 Lorem 2 Lorem 3

Every urter, company company follows the Based on the performance


encourages the employees Critical Incident Method of the employee, training
to give feedback to the where the manager keeps a would be given to the
management record of positive and employee for improvement,
negative contribution of if required.
the subordinates' work
If the employee fails to
related behaviour.
meet the minimum
standards of the company,
appropriate action is taken.

In cases of serious
misconduct or breach of
policy, the employee may
be dismissed by the
company.
CRITICAL INCIDENT METHOD
ADVANTAGES :
● The supervisor reviews the performance throughout the year

● It provides examples of good and poor performance that the supervisor can use to explain the person’s rating.

● It helps in setting the organisational and departmental goals.

● Define expected results.

DISADVANTAGES :
● The manager cannot use this for comparing employees’ performance with others.

● Standards may be unclear and biased.

● Difficult to develop and time consuming.

● Can cause disagreement among employee and may be unfair.

● Difficult to rate or rank employees relative to one another.


Recognition & Motivation
REWARD SYSTEM IN L&T
There is a rating system in
place at L&T similar to
the system based upon bell
curve used in most of the
MNC's. An employee's rating is
dependent upon his
performance in that year & also
on his previous year’s ratings.
Performance Linked Reward i.e.,
bonus is given each year based
upon his rating.
How companies have changed the performance
appraisal process?
New Performance Measurement Trends
Lafargeholcim Group
They have joined the world-class organizations in rethinking their performance measurement approach
because years of research have found that performance management practice is ineffective at boosting
performance. However, the focus areas now are; identifying what to do and how to do it, the how is linked
to employees behavior expected to exhibit in achieving the what to do. The new thing is the introduction of
how to do it. This is yielding a positive result on performance. The second changes is the introduction of
regular informal conversations (Individual Check-ins and Team Touch Point) between an employee and
his/her line manager (Individual Check-ins), and between team and their line manager (Team Touch Point)
this development is impacting positively on the business as employees know where they stand and can
adjust.

Cargill
Cargill, the US food producer and distributer, started to transform its traditional performance management
processes back in 2012 when it introduced what it called ‘Everyday Performance Management’. It
removed performance ratings and annual review forms and instead focused on managers having
frequent, on-the-job conversations and giving regular, constructive feedback

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