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    Performance Appraisal in TISCO

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    anandita28
    Tata Steel (TISCO) implemented several unique HR practices to improve performance and cut costs in the 1990s-2000s, including: 1) Implementing a Performance Ethic Programme (PEP) to introduce performance-based promotions and compensation instead of seniority-based systems, and reduce hierarchical levels. 2) Introducing a three-component performance management system including self-appraisals, objective assessments of goals, and feedback from subordinates and peers. 3) Using feedback and assessments from subordinates, peers, and internal customers to provide managers a more well-rounded view of their performance beyond just annual reviews from their own managers.

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    Performance Appraisal in TISCO

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    anandita28
    4K views33 pages
    Tata Steel (TISCO) implemented several unique HR practices to improve performance and cut costs in the 1990s-2000s, including: 1) Implementing a Performance Ethic Programme (PEP) to introduce performance-based promotions and compensation instead of seniority-based systems, and reduce hierarchical levels. 2) Introducing a three-component performance management system including self-appraisals, objective assessments of goals, and feedback from subordinates and peers. 3) Using feedback and assessments from subordinates, peers, and internal customers to provide managers a more well-rounded view of their performance beyond just annual reviews from their own managers.

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    Tata Steel (TISCO) implemented several unique HR practices to improve performance and cut costs in the 1990s-2000s, including: 1) Implementing a Performance Ethic Programme (PEP) to introduce performance-based promotions and compensation instead of seniority-based systems, and reduce hierarchical levels. 2) Introducing a three-component performance management system including self-appraisals, objective assessments of goals, and feedback from subordinates and peers. 3) Using feedback and assessments from subordinates, peers, and internal customers to provide managers a more well-rounded view of their performance beyond just annual reviews from their own managers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    4K views33 pages

    Performance Appraisal in TISCO

    Uploaded by

    anandita28
    Tata Steel (TISCO) implemented several unique HR practices to improve performance and cut costs in the 1990s-2000s, including: 1) Implementing a Performance Ethic Programme (PEP) to introduce performance-based promotions and compensation instead of seniority-based systems, and reduce hierarchical levels. 2) Introducing a three-component performance management system including self-appraisals, objective assessments of goals, and feedback from subordinates and peers. 3) Using feedback and assessments from subordinates, peers, and internal customers to provide managers a more well-rounded view of their performance beyond just annual reviews from their own managers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 33
    At a glance
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    The case examines unique HR practices, change and performance management practices, and retention strategies adopted by TISCO.

    TISCO implemented programs like TOP and PEP to focus on reducing costs, improving quality and throughput, and shifting focus from volumes to costs. They also adopted modern technologies as recommended by consultants.

    Between 1996-2000, TISCO reduced its workforce from 78,000 to 40,000 employees through communication and a performance-based promotion system. They also planned to cut management staff through a new performance management system.

    BEST HR PRACTICES

    IN
    Pradnia Bhalerao C-03
    Anandita Singh C-34
    Jayashree Prabhu C-43
    Sanchi Gaikwad P- 07
    Abstract
    This case examines :

    Unique HR practices.
    The change and performance management
    practices.
    Some of the retention strategies adopted by the
    company.
    WE ASPIRE TO BE THE
    GLOBAL STEEL INDUSTRY
    BENCHMARK FOR VALUE
    CREATION AND CORPORATE
    CITIZENSHIP.
    TISCO – UNDER THE
    CHANGE
    • In the early 1990s, TISCO appointed McKinsey and
    Booz-Allen & Hamilton to study its operations and
    suggest ways to cut costs.
    • To focus on various components affecting the cost
    of steel.
    • Included cost of raw materials, cost of conversion,
    fuel rate in the blast furnace and mining of coal.
    • Advised to use the most modern technologies to cut
    costs further.
    • In the second half of 1998, in association with
    McKinsey, TISCO implemented TOP program at
    its G blast furnace .
    • TOP - Maximum positive impact to the bottom-
    line, with minimum investment, required in
    minimum time.
    • Aimed achieving large improvements in
    throughput, quality and cost in the short term.
    • In the long run, TOP was expected to enable the
    TISCO to achieve high rates of performance
    improvement.
    • Helped TISCO to shift its focus from just producing
    volumes to costs and quality.
    • Enabled TISCO to improve customer satisfaction
    and loyalty.
    • TISCO also took steps to reduce its manpower costs.
    • Between 1996 and 2000, TISCO reduced its
    workforce from 78,000 to 40,000 employees.
    • Cutting its workforce by 38,000 employees was
    not an easy job.
    • Company was able to do it with a lot of
    communication with employees.
    • TISCO had adopted Performance Ethic
    Programme (PEP).
    • It planned to promote hardworking young
    people to higher positions depending on their
    performance, rather than following the
    convention of seniority.
    • This exercise was expected to cut the
    management staff from 4000 to 3000.
    pep
    Two core elements -
    • Proposed a new organizational structure:
    expected to foster growth businesses,
    introduce more decision-making flexibility,
    clear accountability, and encourage
    teamwork among the managers and the
    workforce.
    • Proposed to introduce a Performance
    Management System (PMS).
    Objectives of pep
    • It would identify and reward strong performers,
    and also offer development opportunities for
    each employee.
    • PMS would also ensure that every employee's
    job profile was clearly defined.
    • By introducing PMS, TISCO wanted to make
    performance appraisals transparent and fair and
    reward the good performers.
    • The company also planned to introduce a new
    compensation package based on performance
    from November 2001.
    BENEFITS OF PEP
    • Youngsters are getting higher salary than
    some of the seniors, and after the
    restructuring, the average age of the
    managers has fallen by 10 years.
    • Through PEP, TISCO also reduced the
    hierarchical levels from 13 to 5.
    • In a bid to reduce costs further, TISCO used
    IT as a strategic tool.
    • After SAP solutions were introduced in
    TISCO, the business processes became
    more efficient.
    • It also improved customer service and
    productivity, and reduced costs.
    • The introduction of SAP also decreased
    manpower cost from more than US $ 200
    per ton in 1998 to about US $ 140 per ton in
    2000.
    Component 1:
    Conventional
    Appraisal
    Coincides with FY

    Preceded by Annual Business Plan

    Three components

    Three components
    The THREE components

    Self-appraisal
    • The work done
    • Difficulties
    • Major achievments
    • Developmental needs
    Objective assessment
    • Assesment of KRA’s fulfilment
    • Done against concrete goals

    Subjective assessment
    • In what manner the work is done?
    • Decision making
    • Managerial capabilities/traits
    • Transparent & open

    • Rewards, annual increment for promotion,


    postings, job rotation are linked with appraisals

    • Feedback but tool for administrative decision


    making
    Component ii:
    MANAGERIAL
    STYLE FEEDBACK
    How it started ?
    • Subordinate must get chance to
    assess their bosses.
    • Started with critical group –
    divisional managers and higher.
    Procedure
    • HR dept. selects who will give the
    feedback.
    • Random sampling.
    • Managerial Style feedback Questionnaire.
    • Identity of people giving feedback is kept
    confidential.
    • All data is collected, analyzed.
    Managerial style
    feedback ??
    • Subordinates – did not have
    expertise or wisdom
    • Confidentiality
    • Perception
    Advantages
    • Johari Window - Blind
    • the boss get a reflection of what his
    employees think about him
    • Management Style
    Component iii:
    INTERNAL
    CUSTOMERS
    ASSESSMENT
    Internal Customer Assessment

    • TISCO extended their feedback system.


    • Evaluate to what extent one meets the
    expectations of internal customers
    • Provide peers with third set of data
    Sample of appraisers
    Procedure:
    • List of 15- 20 from a wide set of
    functions
    • The HR dept.
    • Work on appraisers & merge the list
    • Again pick random sample each year of
    10- 12 names
    Contd…
    • Separate questionnaire is developed
    • 10 questions
    • Space for writing open ended responses
    • Anonymous feedback
    • Summarizing of report
    • Report goes back to an individual in
    detailed form
    Contd..
    Observations :
    • Assessment by subordinate is tougher than
    the assessment by peers & colleagues
    • Some bosses are assessed very stringently
    by subordinates but far more positively by
    their peers & colleagues
    • This process goes up to CEO level & he too
    goes through entire process
    Observation & Learning
    TISCO chose to do three components
    separately
    Sequence
    Time gaps
    Anonymity is practiced
    Counseling people
    Contd..
    • Problems in dropout rate
    • Feedback is taken seriously
    CONCLUSION
    bibliography
    • Performance Management & Appraisal
    System – HR Tools for Global
    Competitiveness – By T.V. Rao.
    • www.icmrindia.com
    • www.tisco.com
    THANK YOU

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