INTRODUCTION OF THE ORGANISATION and why it was chosen? Manpower Inc.

(NYSE: MAN) is a world leader in innovative workforce solutions; creating and delivering services that enable its clients to win in the changing world of work. With over 60 years' experience, Manpower offers employers a range of solutions and services for the entire employment and business cycle including permanent, temporary and contract recruitment, employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower's worldwide network of 4,000 offices in 82 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. Manpower Inc. operates under five brands: Manpower, Manpower Professional, lan, Jefferson Wells and Right Management. Manpower helps companies anticipate and benefit from changes happening now and next in the contemporary world of work. With a global network of over 4,000 offices in 82 countries and territories allows them to meet the needs of their clients in all industry segments, whether they are global, multi-national or local companies. By offering a complete range of services, they can help any company - no matter where they are in their business evolution - raise productivity through improved strategy, quality, efficiency and cost reduction across their total workforce. MANPOWER has expertise in the following practices for permanent hire, to provide clients with specialized and value added recruiting solutions.

Manufacturing (Engineering | Process| R&D) Infrastructure & Energy Healthcare Information Technology IT Enabled Services Telecom Retail Financial Service Consumer

The reason as to why we chose this company for our project is the fact that it deals with Manpower which relates significantly to Human Resource Management. As Manpower provides solution to its client for workforce management we were quite interested to know how it deals with the same. On our assumption that a company which solves various workforce related problems of its clients must have employed creative techniques of performance appraisal itself. Thus we were very interested to understand how such a well accomplished organization solves its own employee problems and what methods of appraisal do they adopt.

Performance appraisal
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individuals performance. It helps to align the individual performances with the organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees

Types of performance appraisal techniques

Performance appraisals are a way to provide feedback on an employee's performance to both the employee and the management of the organization. The benefits to the organization are that it can base major decisions like promotions, terminations, transfers, wage hikes and training needs on this information. The employees get an opportunity to find flaws in performance and rectify them. The basic aim of any appraisal system is to have a smooth and open flow of communication within the organization. Each has its relative merits and demerits. 1. Confidential Reports This technique of appraisal is an individual form and is perhaps the oldest method. Prepared by the employee's senior in a confidential manner, the employee's highs and lows in performance during the past year are evaluated. As this information is kept secret and confidential, the employee is not given a chance to improve upon his performance as he is not notified of the shortcomings in performance. 2. Critical Incident Technique This, too, is a type of appraisal for the employee alone. Here, the employee's best and worst incidents of behavior are analyzed annually. These events are the ones that are the most critical in appraising the employee. 3. Checklist Technique This is an individual person appraisal form. The superior is given a checklist to mark answers as "Yes" or "No." Typical questions are on the performance and behavior of the employee. The inherent flaw here is that this method allows no scope for subjectivity. 4. Management by Objectives The superior here examines measurable and tangible goals at the end of the year. This appraisal form is a multiple person form and measurement of performance of any employee is against her peers. At the beginning of the year, the superior lets his team know of key result areas and results expected. After which, the work is delegated and definition of the authorities and responsibilities takes place. 5. Paired Comparison All the employees working in a team are compared against one another. The analysis of their performance is then ranked. The rankings could be either in ascending or descending order of performance. 6. 360 Degree All the persons who interact with any employee during the course of her work are taken as stakeholders in this method. The stakeholders comprise of the immediate boss, the immediate subordinates, top management and all the people with whom the employee interacts for work. All these people provide feedback on her work and working style. The feedback thus obtained helps the employee improve her performance. 7. 180 Degree

180 degree performance appraisal means that employees are appraised by two people (self and boss/manager). OBJECTIVES OF PERFORMANCE APPRAISAL Salary Increase Performance appraisal plays a role in making decision about salary increase. Normally salaryincrease of an employee depends upon on how he is performing his job. There is continuousevaluation of his performance either formally or informally. This may disclose how well anemployee is performing and how much he should be compensated by way of salary increase. Promotion Performance appraisal plays significant role where promotion is based on merit and seniority.Performance appraisal discloses how an employee is working in his present job and what his strong and weak points are. In the light of these, it can be decided whether he can be promoted to thenext higher position.

Training and Development Performance appraisal tries to identify the strengths and weakness of an employee on his presentjob. This information can be used for devising training and development programs appropriatefor overcoming weaknesses of employees. Feedback Performance appraisal provides feedback to employees about their performance. A person worksbetter when he knows how he is working. This works in two ways, firstly, the person getsfeedback about his performance. Secondly, when the person gets feedback about hisperformance, he can relate his work to the organizational objectives.

Pressure on Employees Performance appraisal puts a sort of pressure on employees for better performance. If theemployees are conscious that they are being appraised in respect of certain factors and theirfuture largely depends on such appraisal.

Performance appraisal at manpower

Manpower follows a 180 degree appraisal system. There are two parties to the appraisal: Self( appraise) Reporting manager(appraiser)

The reporting manager sits together and has a discussion about what are the areas in which an employee needs to work upon, and what they are good at. The company doesnt allow the juniors to sit with them as they have this restriction of juniors attending to this discussion. Self-evaluation forms are given to employees in whom they have to rank themselves out of 5 on 10 different parameters, (rank 1 is very bad and 5 is very good). If you rank yourself with 5 then they will ask you the reason why you have done so. And the boss will rank you on the same scale as well. The whole process is transparent between your boss and you, they don't hold back anythingwhatever they feel your good at and whatever you need to work on. They share among each other and try to work accordingly. The appraisal system is done annually by the company, usually towards the end of the year. The system is same for all the levels of the organisation (i.e. from the top level to the lower most level) The appraisal system is carried out broadly in 5 steps, through which the employee and his reporting manager rate the employee and suggest the areas of improvement for the employee.

Steps in appraisal: A)Self-Appraisal Performance Review & Planning I.Appraise write his view over the actual achievement for the Key performancearea / Task and Target assigned to him for the year. II.Comments on fulfillment ofKPA / Task and Target are written by the ReportingOfficer,taking account of time frame also. III.Special Jobs other than tasks given and normal routine work are written byAppraise

B)Performance Review Discussion I.Both appraise and reporting officer sit together. II.Comment over Strengths and weaknesses and areas for development are writtenwhich is undersigned by both. III.Appraise can help the reporting officer by giving examples which shows hisstrength or weakness. He also tells what training he wants to undergo.

C) Performance Assessment I.Ratingbetween 1 to5 are given to the appraise by the Reporting Officerand Reviewing Officer individually on the basis of Performance Factors andPotential Factors. Performance Factors: Quantity of output Quality of output Job Knowledge and Skill Team spirit and Lateral Coordination Discipline Development & Quality of assessing subordinates

Potential Factors: Communication Initiative Commitment and sense ofResponsibility Problem Analysis and Decision making Planning and Organizing Management of Human resources II. Different weightage are given to each factor. III.Final scores are calculated by multiplying rating and weightage . IV.Comments on Overall Performance and Potential are written by bothReporting and Reviewing Officers individually.

D)Suggestions for Job Rotation and Job Enrichment I.Both reporting and reviewing officers write their suggestions whether the appraise should be transferred to other department. Either a good employee istransferred so that he can acquire knowledge of all the departments, or a worstperforming employee is transferred so as to improve his performance.

E) Final Assessment I.Total Factor Score by both Reporting and reviewing officers is written and average is calculated. II.Final Grading between O / A / B / C is given. III.If Final Grade is C, indicate whether to promote or not to promote the appraise. IV.If not to promote give reasons. V.Meeting with non-promotable appraise

Analysis
The employees of the company feel that as the pitfalls of both the boss and the subordinates remain, and one cannot get a fair feedback. But still, it is better than having only boss doing the

appraisal. As in any feedback method, it must not be used as a mode for promotion and punishment, but for improvement. They feel that 360 degree feedback which includes an individual receiving feedback from all aspects of their working life, i.e. peers, direct reports, line manager, customers, suppliers and comparing this to your own self-perception, should be used by the company for appraisal process. Advantages of using 180 degree appraisal systems Benefits for Self-opportunity to express your own assessment and review with Reporting Manager for performance expectation alignment. Benefits for company-Helps in systematically plan future career growth/competency enhancement.

Drawbacks of using 180 degree appraisal system The appraisal system is full of biasness, as the appraisal fully depends upon the relationship the employee shares with his reporting manager. The feedback is given just by the reporting manager so the relation of employee with his subordinates and peers and with the customer is unknown to the organisation.

How it can be improved The performance appraisal system of Manpower Inc. is yearly based. It should be conducted more frequently than that like perhaps quarterly or half yearly basis. In our opinion job of a manager is to pay attention to an employees behaviour and performance on a consistent basis and to praise when appropriate. Unfortunately that seldom happens. Hence, Frequent, regular discussions of performance should occur on an on-going basis. Secondly it was observed that same method of appraisal is followed for all the levels. We believe as the levels of the employees and their roles and responsibilities change the criteria for measuring performance must also change. As an example the following criteria can be looked at when evaluating performance at different levels.

For top level management

Degree of organizational growth and expansion Extent of achievement of organizational goals Contribution towards the society Profitability and return on capital employed

For middle level managers

Performance of the departments or teams Co-ordination with other departments Optimal use of resources Costs Vs. revenues for a given period of time The communication with superiors and subordinates

For front line supervisors

Quantity of actual output against the targets Quality of output against the targets Number of accidents in a given period Rate of employee absenteeism Thirdly, the company follows 180 degree appraisal system whereas there is a much more effective system called 360 degree appraisal that could be followed by the company. Then the view of all the stakeholders who interact with the employees can be taken which would help in better analyzing employees performance. The company should adopt a 360 degree appraisal system as the appraisal is done by different level of employees in the hierarchy of the organization; includes managers, peers, subordinates and staff, apart form the internal sources, the feedback can also source form the external relevant relations like customers and suppliers. Since the result is concluded from multi-groups inside and outside the company therefore it also known as 'multi-rater feedback'

Location of office and the person we met

Nishtha Dixit Senior Associate- Marketing

Manpower Services India Pvt. Ltd. Ground Floor, Tower A Global Business Park MG Road, Gurgaon 122002 Haryana, India T: +91124 4213640 D : +91124 4213666 F : +91 124 4213641 nishtha.dixit@manpower.co.in