Page 53 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes Hearing his views, all of them took some time before speaking. Anjali Mehta, the Human
Resource Chief said, ‘We are using a model for assessing human assets in our organisation.
Accordingly we have annual employee satisfaction survey and very effective performance
appraisal system. Besides this, we need to understand the dynamics of an organisation and
the industry we are operating in. Worldwide the turnover in software industry is higher
than the average. Also the compensation for software professionals is growing all over, at
astonishing rates. Even in such a dynamic environment, we have managed to retain our
people at very good level. I personally don’t see any need for another system of performance
evaluation specifically in human resources but I am open to any decision, taken jointly in
the interest of the organisation”.

Vijay however, still felt very strongly for this issue despite listening to his team. He
brought the topic again and again. His team eventually decided to go according to his plan
and sat down to develop a yardstick for performance. After many debates and discussions,
they decided to focus on the following issues:
1. Customers – The many issues related with this were how clients see the organisation.
their needs, reducing lead time and developing relationships.
2. The strengths, i.e. the competitive advantage the company has, their efforts in
marketing and product development and how they can build upon internal resources,
etc.
3. The financial perspective and the measures to improve their performance.
4. The perspective of learning, emphasis on training and development.
All these combined together would give a unified-report on all elements, that may affect
the overall performance of the company. It would also provide them a base for future
strategic planning and expansion.
Once the performance parameters were finalised, Vijay decided to seek an opinion from
his advisor and a practicing consultant, in a top consulting firm. He briefed him about
their initiative and asked for his advice.
“For an organisation like yours, is important to have such a tool. The business today is
more complexed than it was some years back and financial measures are no more considered
the only measurements of performance. You need wider indicators that measure the
critical factors that influence success.
I further suggest Eskewed, a readymade package for your organisation. This will cover all
these measures and also give you an easier way of implementation. However, you need to
take help of external consultants who can guide you through the implementation process,
the advisor wrote back.
Reading the views of his consultant, Vijay got into serious thinking. He finally decided to
go for the standard package Eskewed, but chose not to hire any consultant for
implementation.
Instead he asked his team to get more information on the subject and develop the expertise
by attending seminars, etc. on the package. In the next three months, after his three team
members had attended some workshops on the package, he started the implementation.
To ensure that the whole process didn’t loose its momentum, he linked the phases of the
implementation with the performance appraisal system. Within an year, his employee
turnover rose high and the software developers were worst hit. Six months after the
implementation, his chief strategist said to incharge, “The development technique of the
package is flawed. We get the same reports as we were getting earlier with our individual
divisional systems. The human resources and quality systems which produce monthly
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