Performance Management Systems of Eveready Industries Ltd.

PERFORMANCE MANAGEMENT SYSTEMS OF EVEREADY INDUSTRIES LTD.

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Course Facilitator- Dr. Saleena Khan

Group 3

INTRODUCTION

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OBJECTIVES

• To learn about how the performance management system of Eveready Industries will be managed.
• To learn about the performance management process of the company.
• To learn about the rating scale used by the company.
• To learn about the motivation level, perception of an employee after the Feedback.
• To learn about the training and development of the employees on how to give feedback.

COMPANY ANALYSIS

Organizational structure and insights

Eveready is a Tall Organization where the hierarchy has many levels relative to the size of the organization. Research suggests that increase in the size of the managerial component of an organization is less than proportional to the increase in size of the organization as it grows. As Eveready is a firmly established organization with a timeless appeal and excellent positioning in the market, they should refrain from making the organization any taller. A tall organization also results in greater time consumed to facilitate and execute any command/idea. Communication process becomes painfully slower with more hierarchy.

• For example, the hierarchical order at Eveready Industries India (Marketing Department) in descending order are as follows:

1. Regional Sales Manager

2. Area Sales Manager

3. Branch Head

4. Deputy General Manager

5. Sales Officer

6. Tertiary Sales Officer

• As the number of levels of an organization, the control exhibited by a manager in a department decreases and so does their area of responsibility. It is always easy for managers to pass the buck and evade any sort of responsibility by transferring the responsibility to the manager above them.

• The number of subordinates managed by a manager at Eveready Industries India is quite large indicating that the span of control is perfectly in place. A tall organization hardly undergoes any trouble when the span of control of managers taking care of a department is increased.
• Eveready follows horizontal differentiation where an organization is divided into several sub-units.
• Every Industries India follows a centralized order of management ensuring that the managers and other employees enjoy job enlargement which contributes to the efficiency of the organization.

ANALYSIS ON THE BASIS OF INTERVIEWS

[pic 6]The key insights of this report are based on the Sales and Marketing department because we managed to interact mostly with employees of the aforementioned department.

Overview of the System in the Company

• The company follows rating based method.
• Employee is rated on the scale of 1 being the Best and 6 the Worst.
• Employees are rated on Goals/KRA(s) – Qualitative and Quantitative.
• Quantitative (Roles/Reports): Example; In case of Report, Monthly Report is taken into consideration say, if 1 report is missed then 11/12, 12 being the total months in a year. Hence, this becomes measurable. Roles, is the task assigned to them.
  Qualitative (Behaviour): This means supervisor‘s observation. The Supervisor rates employees on different aspects like – Leadership Skills, Management Skills, Decision Making, Team Work, Execution of Task, and Time Management.

Training and Development at Eveready

• Marketing Department:  All the employees who join the firm are required to undergo a common training programme wherein they are made to participate in an intensive 6-month, on-the-job training experience. It involves stints and assignments which are designed to test the problem-solving skills of the participants and their ability to achieve targets.
• After the training, participants take on key strategic or operational roles at middle management levels across the group's businesses.

GOAL SETTING

Marketing and Branding Department

• The company initiates the Goal Setting Process by taking into account KRAs – Key Responsibility Areas.
• Job Description is the key element for following the same i.e. if any new department or Goal is added then the employees tend to talk to their manager and get the same included in the Key Responsibility Area.
• Goal Setting takes place in the beginning of the year. The supervisor assigns the work and one is expected to be in tandem with the work.
• The company holds only 1 meeting at the maximum for Goal Setting and if negotiation takes more time than required there might be possibility of two meeting.

Sales department

The sales department has monthly targets, these targets are designed keeping a few things in mind: