There is a main production process divided into five sub-processes. With proper division of work, each worker handles only one process in which he specializes. Wages are paid on a piece basis.
Quality of production and further improvement in quality depend on the process quality, specifically the skills and expertise of workers. The nature of the product is such that every improvement in process quality significantly enhances Value Addition. Indirectly, it is a process that has inherent R&D opportunities.
Can somebody suggest different types of effective and concrete incentive plans to ensure optimum value addition from workers individually and as a group?
From India, Surat
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5Quality of production and further improvement in quality depend on the process quality, specifically the skills and expertise of workers. The nature of the product is such that every improvement in process quality significantly enhances Value Addition. Indirectly, it is a process that has inherent R&D opportunities.
Can somebody suggest different types of effective and concrete incentive plans to ensure optimum value addition from workers individually and as a group?
From India, Surat
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Yes, It is gemstone and diamond cutting and polishing process. By, process efficiency maximum value addition is possible.
From India, Surat
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From India, Surat
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In diamond industry their might be less designations n more people of same class so the PMS process will not be difficult...
From India, Surat
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From India, Surat
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Yes, you are right. The ideal incentive plan is an important point to be considered. In each process, there used to be a large number of people without any designations except process supervisors, whose number depends on the strength of workers in their respective processes. However, evaluating the quality of each individual's performance at the micro-level is a tedious job, although performance at the lot-wise level in a particular process can be measured well. So, which plans at the macro level can enhance performance and, therefore, overall value addition?
I am interested in identifying general incentive plans that have proven successful in piece-rate manufacturing. A diamond is a product that remains a diamond even after manufacturing. What occurs is a change in value. Can you provide guidance?
From India, Surat
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I am interested in identifying general incentive plans that have proven successful in piece-rate manufacturing. A diamond is a product that remains a diamond even after manufacturing. What occurs is a change in value. Can you provide guidance?
From India, Surat
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Hi,
Performance Appraisal is a part of PMS. The following write-up would give you an insight into how you can go about establishing the PMS at your organization.
Performance management is an organization-wide program that provides a structured approach to:
- Identify performance standards
- Communicate standards
- Performance appraisal
- Facilitate common understanding of "what" is to be achieved and "how" is to be achieved
- Measure and motivate performance
- Provide a basis for compensation decisions, promotion decisions, training and developmental programs, feedback, and personal development of employees
An effective Performance Management System should achieve the following:
- Review the employment cycle of every employee, beginning with the recruiting process, employee development, and ending with effective exit interviews.
- Link employees' knowledge, skills, and abilities with the organization's human capital needs and business objectives.
- Provide managers and employees with the tools necessary to focus on short-term and long-term goals that contribute to both career and organizational success.
- Support the organization in developing and sustaining a culture that recognizes and rewards individual contributions and team performance.
- Promote a work climate that requires employees to remain flexibly focused. For instance, employees can manage current tasks and unit goals while keeping pace with, and adapting to, change in the work environment.
Highlights of the system:
- The appraiser and the appraisee jointly set the Key Result Areas (KRAs) and assign mutually agreed weightage expressed as a percentage. The achievement of the KRA is also expressed as a percentage.
- Simple mathematical relationship between set weightage and accomplishment gives a final numerical score on KRAs.
- To evaluate all management personnel on company values and leadership attributes, a new section has been added entitled "Values in Action".
Values in Action:
- Reliable and responsive
- Service to internal and external customers
- Drive for results
- Quality orientation
- Managing time
- Commands respect
- Learning, creativity, and innovation
- Communication
- Coaching
- Builds winning teams
- Inspires trust
- Business acumen
- Problem-solving and decision-making
- Strategic visionary
- Corporate citizenship
- Concern for safety and environment
What is a Key Result Area?
- A KRA refers to a target that needs to be achieved by the appraisee in a given time.
- KRAs are the set of performance expectations from the appraisee.
- The focus is on tangible outputs. However, this does not mean that tasks that have a qualitative output cannot form a KRA.
- KRAs are not job descriptions or routine activities. They do arise from job description but are not a collective 'whole' of all job activities put together.
KRA setting process:
- Key Result Areas for an employee emerge from the organizational objectives, departmental goals, and work unit goals. This facilitates congruency between individual and departmental goals.
- The process of setting KRAs is a top-down approach.
Setting KRAs in case of a functional reporting relationship:
- Functional reporting cases will require input from the functional superior in setting KRAs for the appraisee.
- The appraiser, the appraisee, and the functional superior will have to mutually agree upon the KRAs for the appraisee.
- In case of a disagreement, it will be the functional superior's responsibility to convince the administrative superior to reach an agreement on the KRAs and communicate the same to the appraisee.
- In some cases, functional goals could be superordinate to business goals.
When appraisee states the need for further discussion:
- The reviewer meets the appraiser to investigate the point of disagreement.
- The reviewer decides to meet the appraisee to hear his/her views.
- The reviewer examines the case and communicates his/her decision to the appraiser.
- The appraiser communicates the decision of the reviewer to the appraisee.
Moderation and normalization process:
- The reviewer and Divisional Head will moderate each of the KRA and the Values in Action scores of an individual employee.
- Under moderation if the scores change, the reviewer/appraiser will revert to the appraisee and explain the specific changes made in each score and the reason/rationale behind the change.
- Following this, the KRA and Values in Action scores may undergo normalization if required.
Further links emerging from the PMS:
- Rewards and Recognition
- Training and Development
- Potential Appraisal
- Career and Succession Planning
360-Degree Feedback – The most widely used tool for Performance Appraisal:
In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.
The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."
Hope this helps!
From India, Surat
Acknowledge(0)Amend(0)
Performance Appraisal is a part of PMS. The following write-up would give you an insight into how you can go about establishing the PMS at your organization.
Performance management is an organization-wide program that provides a structured approach to:
- Identify performance standards
- Communicate standards
- Performance appraisal
- Facilitate common understanding of "what" is to be achieved and "how" is to be achieved
- Measure and motivate performance
- Provide a basis for compensation decisions, promotion decisions, training and developmental programs, feedback, and personal development of employees
An effective Performance Management System should achieve the following:
- Review the employment cycle of every employee, beginning with the recruiting process, employee development, and ending with effective exit interviews.
- Link employees' knowledge, skills, and abilities with the organization's human capital needs and business objectives.
- Provide managers and employees with the tools necessary to focus on short-term and long-term goals that contribute to both career and organizational success.
- Support the organization in developing and sustaining a culture that recognizes and rewards individual contributions and team performance.
- Promote a work climate that requires employees to remain flexibly focused. For instance, employees can manage current tasks and unit goals while keeping pace with, and adapting to, change in the work environment.
Highlights of the system:
- The appraiser and the appraisee jointly set the Key Result Areas (KRAs) and assign mutually agreed weightage expressed as a percentage. The achievement of the KRA is also expressed as a percentage.
- Simple mathematical relationship between set weightage and accomplishment gives a final numerical score on KRAs.
- To evaluate all management personnel on company values and leadership attributes, a new section has been added entitled "Values in Action".
Values in Action:
- Reliable and responsive
- Service to internal and external customers
- Drive for results
- Quality orientation
- Managing time
- Commands respect
- Learning, creativity, and innovation
- Communication
- Coaching
- Builds winning teams
- Inspires trust
- Business acumen
- Problem-solving and decision-making
- Strategic visionary
- Corporate citizenship
- Concern for safety and environment
What is a Key Result Area?
- A KRA refers to a target that needs to be achieved by the appraisee in a given time.
- KRAs are the set of performance expectations from the appraisee.
- The focus is on tangible outputs. However, this does not mean that tasks that have a qualitative output cannot form a KRA.
- KRAs are not job descriptions or routine activities. They do arise from job description but are not a collective 'whole' of all job activities put together.
KRA setting process:
- Key Result Areas for an employee emerge from the organizational objectives, departmental goals, and work unit goals. This facilitates congruency between individual and departmental goals.
- The process of setting KRAs is a top-down approach.
Setting KRAs in case of a functional reporting relationship:
- Functional reporting cases will require input from the functional superior in setting KRAs for the appraisee.
- The appraiser, the appraisee, and the functional superior will have to mutually agree upon the KRAs for the appraisee.
- In case of a disagreement, it will be the functional superior's responsibility to convince the administrative superior to reach an agreement on the KRAs and communicate the same to the appraisee.
- In some cases, functional goals could be superordinate to business goals.
When appraisee states the need for further discussion:
- The reviewer meets the appraiser to investigate the point of disagreement.
- The reviewer decides to meet the appraisee to hear his/her views.
- The reviewer examines the case and communicates his/her decision to the appraiser.
- The appraiser communicates the decision of the reviewer to the appraisee.
Moderation and normalization process:
- The reviewer and Divisional Head will moderate each of the KRA and the Values in Action scores of an individual employee.
- Under moderation if the scores change, the reviewer/appraiser will revert to the appraisee and explain the specific changes made in each score and the reason/rationale behind the change.
- Following this, the KRA and Values in Action scores may undergo normalization if required.
Further links emerging from the PMS:
- Rewards and Recognition
- Training and Development
- Potential Appraisal
- Career and Succession Planning
360-Degree Feedback – The most widely used tool for Performance Appraisal:
In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager.
The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."
Hope this helps!
From India, Surat
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Performance Management System.doc