Page 149 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes 2. “ATI Fellow is like being a Don at Oxford. Only 0.6% of the TI population is fellows. These
are the chaps who are the ‘brains’ – people who help TI meet its most diffi cult technical
challenges. Becoming a fellow is difficult. Your peers and seniors evaluate your work to see

if you have been innovative in your thinking right through… Staying there is even harder.
You are re-assessed every year. If you fall behind you can lose your fellowship as the total
number cannot be more than 1% at any given time.”

3. Career Growth: An excellent way to reward people is to provide career growth to deserving
people.

Example: 1. In Federal Express an employee started as a receptionist, oved on to
operations, and then to customer service. There each employee can tailor his/her career
path.
2. Texas Instruments has a “technical ladder”, communicating to people that it does
not matter even if they want to remain technical gurus all their lives. They would still
be rewarded on par with people who move into management. The tool is the “technical
ladder’. It is a parallel career path to the management ladder.

3. Eli Lilly (India) career growth is promoted through cross-functional competencies. ELI
recently introduced one of parent Eli Lilly’s interventions – a technical competency model
(TCM) – to help those employees who want to develop deep technical expertise and also
want to progress in their specialized function. TCM was introduced after it was debated
heavily in the cross functional teams set up to assess the pros and cons of the model.

4. Development: Developing people, raising their competence and qualifications is a great
reward for them. Value is added to them, and their ability to carry higher responsibility
increases. Several companies are increasingly investigating in employee development.
Employees get more mobility and opportunities for career growth.

Example: 1. Texas Instruments have set up Development Centre, so have Aditya
Birla Group, Gyanodaya, a learning Centre.
2. Johnson & Johnson have tied up with various business schools for MBA courses for
deserving employees.

3. In Jindal Iron and Steel Company shop floor workers are routinely moved and trained.

The company trains them before they are given a new function. They can get `10,000
allowance once in two year to pay for tuition fees. The result: productivity per worker has
increased from 300 tonnes in 2000 to 575 tonnes in 2003.
5. Celebrating and Fun: As already discussed, rewards should be celebrated. This may be in
many forms. Having a party is one of celebration. In fact, more and more emphasis is being
given on developing fund and joy at work place.

Example: Wipro Spectramind has a budget of `150-200 per employee per month
to have a party either on the premises or outside or a weekend party. The company also
believes in immediate rewards. `25,000 to 30,000 a month are spent on on-the-spot rewards
as watches, pens, caps, T-shirts, travel bags, etc. This is called Pragati initiative.

Task Discuss the reward system used in HDFC bank.

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