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u The case is a comparative study of the implementation of the
appraisal systems in two banks :
u Paradise Bank
u PLN Bank
u Both the banks had similar appraisal and compensation systems.
u Appraisal System in PLN Bank
u It follows the traditional system of appraisal.
u During the appraisal period , Department heads and employees meet
to discuss about unattained targets to reach a consensus about
salary hike and related aspects.
u Appraisal System in Paradise Bank
u Does not follow the traditional system of appraisal.
u During the appraisal period , the department heads and the team
members meet to discuss about future profitable strategies to attain
targets based on market conditions, consumer feedback , deployable
energies and resources.
u In this form of appraisal system , the employees identify their lacunae
in their skillsets.

 
 






   
 

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u The management laid stress on achieving pre-set targets rather than

setting a target in consensus with the department heads and team
members of the bank.

u PLN Bank never concentrated on the pitfalls of its employees. It

should have rather identified the lacunae in the skills or knowledge of
its employees which eventually hinders their growth and
performance.

u The employees were never given the freedom to estimate and

determine targets rather were imposed to achieve them by the
management.

 

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u Performance management and compensation.

u Performance appraisal personal development.

u Training needs analysis.


 
 

 
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u Assessment centre method : Observe and evaluate participants to
determine the individual training and development needs of
employees.

u 360 degree Performance App: appraiser should be any person who

has knowledge about the job, contents to be appraised, standards of
contents and observes the employee performance.

u Management by Objectives: This is a process where by the superior

and subordinate managers of an organization jointly identify its
common goals, define each individual¶s major area of responsibility in
terms of results expected of him and use these measures as guides
for operating the unit and assessing the contributions of each of its
members.
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u Assessment centre method: Observe and evaluate participants to

determine the individual training and development needs of
employees
u Here in this case we see that there is a need to fill in the lacunae for
individual training and development needs of employees of PLN
bank .Since they have been using traditional method of appraisal ,
they should now move into modern methods of
appraisal(assessment ±centre method in specific).
u Management by Objectives: This is a process where by the superior
and subordinate managers of an organization jointly identify its
common goals, define each individual¶s major area of responsibility in
terms of results expected of him and use these measures as guides
for operating the unit and assessing the contributions of each of its
members.
u Here in this case we see that Paradise bank uses the above
technique to set its target and maintain a relationship amongst its
department heads and employees . Similarly ,the above technique
can be used by the PLN bank to solve its target-setting problems.
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u ÚOMPANY NAME:- Pratham Úements

u It is using traditional method of performance appraisal like ranking ,

paired comparisons , etc. Now it is to modify its appraisal system by
adopting a performance management system which will need to
improve in individual and team performance in an organisation .

 
 
u Importance of performance appraisal management in an organisation .

u Importance of winning employees support and acceptance of the

system.

u What constitutes a good performance management system.

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u Performance appraisal system is a process of reviewing employee

performance , documenting review of giving feedback to employees.

u Performance management system is a process of creating work

environment in which people will perform to the best of their abilities.
 IMPORTANCE

u Develop clear job description

u Select appropriate people with an appropriate selection process

u Provide effective orientation , education and training

u Reward people for their contribution

 THEORITICAL INPUTS RELATED TO THE ISSUES

u Úreating an intrinsic interest by explaining correlation between

reward and performance

u Breakdown organisational goal into group units

u Manage change through empowerment and autonomy to employees.

u Úreate opportunity for employees formal and informal interaction.

 ALTERNATIVES AVAILABLE

u Úompensation to employees.

u Standardization of operations.

u Empowerment of culture in the organisation

u Úorrelate individual goal with organisational goal

u Personel development of employees.

 RECOMMENDATION

u Personal development of employees;

This process is usually beneficial to the employees in identifying their

performance weakness and modifying them. Úonstant feedback and
counseling lead to personal development.
Ú
 
 BRIEF OUTLINE OF THE CASE
u The case is about a Hartford based company named Visual Inc. , established
in 1992.

u It is an IT Service and Solution Provider.

u Focus: designing, developing most complex IT systems on open technologies

that reduces cost improve performance and derive competitive advantage for
world¶s leading companies.

u Group of companies:
u VISUAL INDIA PVT LTD. , HYDERABAD
FOÚUS - providing technical support in development of high end
solutions and services.
u VISUAL ÚORPORATION AND VISUAL EUROPE, LONDON
FOÚUS: providing front end operations of marketing and consultancy.

u The case says about the sudden downturn of VISUAL ÚORPORATION .

u To recover from the situation they made a project ³PROJEÚT STAR DEN´ that
helped the company to achieve its objectives successfully.
 ISSUES INVOLVED

x Unpleasant consequences in the business of

Visual corporation due to IT slump.

x Úhanges to be made in business strategies to make up

this dip and sustain its competitive advantage in the IT market.
 THEORETICAL INPUTS RELEVANT TO THE ISSUES

u Balanced Scorecard : This approach helped the company to get the

successful achievement of the organization¶s performance by
integrating all the key performance indicators .

u Phase I- PLANNING

Why do we need the Planning phase?

The Planning phase involves defining objectives and levels at the

corporate level to facilitate efficient performance. Here in this case
balance scorecard was used to develop an actionable and
measurable framework, drill down to specific projects and
deliverables to accomplish the goals. Balance scorecard even links
corporate objectives to individual line of business (LOB) and
measures. In this case it develops a financial plan, provides goals for
each individuals at Visual India and make organizational changes
within Visual India to align with Visual Inc. and enable realization of
the objectives
u Phase II ± IMPLEMENTATION

x Financial perspective-It helped in measuring the operating

income , return on capital employed(ROÚE) and economic
value added(EVA) oh the company.

x Úustomer perspective- This helped the company in

measuring the customer satisfaction, retention and the market
share in target segments.

x Business process perspective ± This helped in tracking the

future prospects in procurement, production and order
fulfillment

x Perspective of the learning measures-This measure helped in

employee learning and growth in employee skill sets and in
enhancing the team work.
 VARIOUS ALTERNATIVES AVAILABLE TO
ADDRESS THE ISSUES

Human resource accounting(HRA) and Human resource

development and auditing (HRDA):

u HRA-It involves accounting of investments made by people , there

replacement cost and the economic value of people in organization.

u HRDA-In an organization it helps to estimate what needs to be

achieved to improve the HR function to assist the current position.

Balance Score Card Method:

 RECOMMENDATION OF ONE OF THE

ALTERNATIVES WITH JUSTIFICATIONS

I recommend the Business score card method , as it has various

aspects which are taken into considerations such as "financial
perspective "which answers to the question "How do we look to
shareholders?",the "customer perspective " which answers to the
question "How do customers see us?",the "internal business
perspective" which answers to the question "What must we excel
at?" and last but not the least the ³ innovation and learning
perspective" which answers to the question "Úan we continue to
improve and create value?".