HR ERP : P erformance M anagement M ODULE

1. HR ERP : Performance Management MODULE Group III Nilesh Jain (26) Fazeel Kazi (29) Prashant Kokare (31) Sumeet Kudal (32) Ajay Patel (62) Milind Walke (65)

2. HR ERP – An Intro • Human Resources is a fundamental part of the scheme of every successful enterprise, • as the information received by this area needs to have a continuous follow-up and correct evaluation for the professional development and the social welfare of the workers.

3. HR ERP – The need • However, due to the large quantity of information that is handled in this area, the job is becoming more difficult everyday. • ERP is represented like a useful tool to help and orient the users to focus their work in the direct relationship with the staff, and to link the personal skills and aspirations of the personnel related to the objectives and goals of the company.

4. Various Modules of a Typical ERP • Enterprise planning (Defn. job reqs.) • Staff selection process • Employee record management • Payroll management • Performance Management • Learning & Development • Reporting • Employee Self Service • Manager Self Service

5. Performance Management

6. Performance Management System Model • Performance Planning • Establish and define • Key responsibilities • Objectives • Expected outcomes • Priorities • Behavioral factors • Development & Follow Up • Identify interests and needs to enhance performance • Establish training plan • Review job description • Identify new challenges • Performance Monitoring • Timely, relevant feedback • Maintain log • Mid-Year review • Refine responsibilities/objectives • Revisit priorities • Performance Appraisal • Compile/review data • Request self-appraisal • Prepare draft appraisal • Review with next-level supervisor • Finalize appraisal • Meet with employee

7. CASE – I: GAMMON INDIA LIMITED

8. Process of Performance Appraisal System Individual Development Plan Career Advancement Potential Final Rating by Reviewer Assessment by Moderation Committee Final Results of Performance Appraisal

9. Start Initialization of Performance Appraisal Process—Notice to all departments at HO and Sites Check for applicability (Applicable or Not-Applicable) P R O C E S S Employees joining before 30th September No Probation Period Appraisal Yes Step 1- Identification of Category 1. LEVEL A 2. LEVEL B 3. LEVEL C 4. LEVEL D

10. Pre- Appraisal Meetings Step 2- Self-Appraisal Step 3- Appraisal by Appraiser P R O C E S S Step 4- Appraisal by Reviewer Calculation of overall ratings of the employee Review by the Accepting Committee Assessment by the Moderation Committee Decisions to be taken on increments, incentives and Promotions. Conveyance of Results Implementation of Results

11. OVERALL ASSESSMENT SCORE • Overall rating is to be filled by the appraiser and reviewed by the reviewer. • Rating scales have been developed in descending order as follows

12. Conclusion Traditional – Typical Paper-Pencil approach. Data cannot be used for further processing. Not integrated real time to other functions such as Training/Finance. Overall the process just looks as a formality.

13. CASE – II: L&T and PACE JOURNEY: PACE s/w was started in 1997. It goes through yearly improvement. It helps in better alignment.

14. Online Performance Management System (PMS) • The system that has been developed currently facilitates the following: • Performance Planning (PP) • Performance Oriented Development Plan (PODP) • Performance Appraisal (PA) • Moderation • Performance Feedback

15. Online Performance appraisal System

16. Performance Plan

17. Review by IS (Performance Plan)

18. Performance oriented development plan (PODP)

19. Annual Performance Appraisal

20. Reporting • Bell curve distribution is as per the Industry average • Bell curve reflects Overall company’s growth

21. Pros & Cons Working software in place – some seriousness in impl. Online – ease of track and access. The process brings in more involvement. Not linked to other functions of organization Organization Wide view missing. Difficulty in querying and reporting Redundant data

22. ERP case: Atlantic Manufacturing

23. General Features • HR information enables management of diverse workforce • Supports managerial decision making through query and reporting tools • Operational level controls • Maintain and update employee files • Job analysis files • Design files • Regulatory files • Skills inventory files • Strategic level controls • Human capital inventory for tracking employees • Position control linked to budgeting • Labor/management relationships • Business intelligence tools for predicting trends • Module integration is significant benefit

24. Employees’ Performance Issues • What are the benefits of automated time and attendance records? • What advantages might accrue to employees using these systems?

25. Tracking Employees’ Performance • Employees’ attendance, time at work, and skill levels • Most companies uncertain • If tracked, usually manual • Records usually neglected • Often piece-meal, no end-to-end solution • Benefits of automating • Eliminates manual process • Time-consuming • Error-prone • Better analysis • More control

26. Advantages • Uses Workbrain Inc.’s ERM3, SAP financial applications, and PeopleSoft payroll processing • Web-based employee-relationship management software • Optimized scheduling and tracking of employees • Interfaces with PeopleSoft applications • Time- and labor-management • Accessible from web, phone, badge terminals • Information available in real-time • Allows for quick staffing adjustments • Financial benefits to employees, company

27. Summary • ERP systems include HR modules that offer records management, benefits administration, and payroll • Offer integrated operational and strategic level controls • Scalable and very flexible