Page 145 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes 2. Organizational level: Profit, market share, customer satisfaction, employee satisfaction,

achievement index of one thrust area to be declared every year exceptional events like new

product launch, export award, crossing a significant milestone etc. should be celebrated.
3. Unit/Department level: Internal customer satisfaction, innovations leading to effi ciency,
achievement-index-of one thrust area to be declared in advance, quality, culture building,
team work, creativity, internal customer service, cost reduction, strategic initiatives, etc.
Any of these could also become annual thrust areas or some other thrust areas could be
declared by the organization or the unit/department like export, energy saving, wastage
reduction, zero defect, safety, breakthrough in chronic problems. A few Chairmen’s shields
may be constituted, given each year to the units/departments/being judged as the best
units for the year’s thrust area, and other aspects to be promoted by the organization.

4. Speed and effi ciency: Ericsson Falcon Award is given for Speed and efficiency to promote

fast, urgent work pace with speed and efficiency. The Qualifiers are: Increase in effi ciency;

cost savings for the company; Earnings/rewards for the company. Demonstrated
Behaviours for the award are:
(a) Exceeds timelines consistently
(b) Completes projects in record time
(c) Always withstands pressures
(d) Does not wait for assignments, decides what is needed to be done
(e) Respond promptly to sudden/unexpected problems in own unit/department

5. Loyalty: When employees complete their first year with Hughes Software they are
presented a watch; when they complete five year, they (and their families) are given a

company paid holiday. Ernst & young also reward people who stay in the company in
considerable time.
6. Innovation: Gujarat Gas gives “innovation helps” reward for an idea given by an employee

who has resulted in cost reduction/improved efficiency. Philips Software Centre rewards

innovation `5,000 for sending an idea to head office and $750 when it is filled for patent. So

far more than 1,400 ideas have been filed and in the last two years 12 patents were granted.
At Texas Instruments (India) Development Centre, employees feel that they really don’t do
peripheral work. This fact comes out quite clearly in the patent data. Over the last 16 years.

TI’s India centre has filed 225 patents out of India. That is more than two and a half times
the next company on the list, IBM, which has 85 patents filed from India in 10 years.

7. At Ericsson: India Ericsson Innovator Awards are given for Innovation, Creativity and
Functional Excellence. The purpose is to promote: Innovation, creativity and performance
excellence; Initiative taking and doing an extra yard; a climate of experimentation and
learning that focus continuously on new ways to create added value for customers and
shareholders. Nominations for this award should consider visible and concrete value

addition in the form of increase in revenue; increase in efficiency; cost reduction; functional
value addition. The following are the demonstrated behaviors for this reward:
(a) Uses opportunities to develop new and better ways of doing things.

(b) Challenges the status quo.
(c) Puts generated ideas into implementation.
(d) Explores innovative and new ideas in problem solving.

(e) Reflects on past experiences to learn.
(f) Approaches problems in generally curious and open minded manner.

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