Pms Assignment.pdf

INTRODUCTION Best Price Modern Wholesale is a Business-to-Business, Cash and Carry wholesale format, owned and operated by Walmart India Pvt. Ltd. Walmart is the world’s leading retailer renowned for its efficiency and expertise in logistics, supply chain management and sourcing. MISSION: The mission of Best Price is to “Enable small businesses to prosper.” We are committed to our mission by providing thousands of items at the lowest possible prices to our members comprising of: 

Resellers



Offices and Institutions (O&I)



Hotels, Restaurants and Caterers (HoReCa)

A Best Price store spans over 50,000 Sq. ft. offering more than 5,000 items, across product categories such as: 

Consumer Packaged Goods (Food & Non Food)



General Merchandise



Household Electronics



Appliances



Fresh (Fruits, Vegetables, Poultry, Mutton, Fish)



Dairy (Milk and Milk Products)

Many more other products are also available under one roof, at everyday low and transparent prices to business members. Over 90-95% of these products are sourced locally. This helps to keep costs to a minimum, add to the growth of the local economy and create job opportunities. Walmart India currently operates 20 Best Price Modern Wholesale stores in 9 states across India. The first wholesale Cash and Carry store was opened in Amritsar in May 2009.

The Balanced Scorecard is the measurement tool. It provides the management with a tool and a process to measure the performance of people practices and the HR function from multiple perspectives: 

Customer Perspective



Internal Process Perspective



Financial Perspective



Operational Perspective

1. Customer Perspective: This focuses on the effectiveness of HR from the internal customer viewpoint. 

Are the customers of HR satisfied with their service?



Are service level agreements met.



Do the customers think they can get better service elsewhere?

The three objectives are: 

Increasing average customer size of Wal-Mart, increasing customer rating of Wal-Mart, and reducing the number of customer complaints.



The Mission is to help save money so that they can live better. If Wal-Mart helps customers save money, the customers will buy more from Wal-Mart.



If Wal-Mart helps customers live better, they will give an improved rating to Wal-Mart. If the customer save money and live better, then there will be fewer complaints against Wal-Mart

Examples 

Employee perception of the company, as an employer



Customer/market perception of the company, as an employer. Etc

Objectives

Measures

Increase average

Average customer size.

Target Increase

Initiatives customer

Provide

a

wider

customer size of

size by 5% every

variety of products

Wal-Mart.

year for next five

to customers.

years. Increase

customer

rating of Wal- Mart

Customer

Increase

customer

The

prices

at

Rating

rating by 10% in

Walmart should be

one years’ time.

the lowest in the market.

Reduce number

Customer Complaints of

Reduce the number

Improve

of

control of products

customer

quality

customer

complaints received

stocked

and

complaints.

by 4% every year for

improve

customer

three years.

service.

2. Internal Process Perspective: The strategic perspective focuses on the measurement of the effectiveness of major strategylinked people goals. The objectives are:



Reducing administrative expense/total revenues, reducing lead time from online orders to delivery at Wal- Mart, and reducing waiting time for customers at counters.



The strategy of Wal-Mart is cost leadership; reducing administrative expense/total revenues will help Wal-Mart reduce costs.



If Wal-Mart helps customers live better, it must make faster deliveries and reduce waiting time for customers.



Reducing waiting time for customers frees their time and enables them to live better.

Examples 

Change management capability of the organization



Organization compensation and benefit package with respect market rate.



Organization culture survey



HR annual resource plan.



Skills/ competency level etc.

Objectives

Measures

Reduce administrative expense/total revenues.

Administrative expenses/total revenue.

Reduce lead time from online orders to delivery.

Average time

Reduce waiting time for customers at counters.

Average

taken.

waiting time.

Target Reduce administrative expenses/total revenue by 2% every year for next five years. Reduce time taken by 5 % in every year for next three years.

Reduce the average waiting time by 15% within one year.

Initiatives Train the employees so that they become more efficient. Use automatic packing and handling technology for speeding up. Change the layout of the store so that more checkout counters are opened.

3. Financial Perspective: This perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company. 

The three objectives are Increase revenues/total assets ; Increase revenues/employee and Increase return on investment.



The strategy of Wal-Mart is cost leadership; increasing revenues/total assets is a strong indicator of cost reduction. Further, increasing revenues/employee will also help maintain its cost leadership.



Finally, Increase return on investment will be possible only if Wal-Mart controls its costs. Each of the financial objectives is related to the strategy of Walmart

Objectives

Measures

Target

Initiatives

Increase revenues/total assets.

Revenue/total assets percent. .

Increase Revenue/total assets by 8% during the next year.

Increase revenues; make a more thorough use of assets.

Increase revenues

Revenue/employee

Increase revenue/employ ee by 5 % during next two years.

Increase employee efficiency through training and technology.

Return on investment

Increase return on investment by 2% every year for three years. .

Reduce operating costs, and achieve economies of scale through bulk purchases.

employee.

Increase return on investment.

4. Learning and Growth Perspective: This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.



The three objectives are Increase training hours per employee at Wal-Mart; Reduce employee turnover rate at Walmart and Increase use of employee’s view .



The strategy of Wal-Mart is cost leadership; reducing employee turnover rate will lead to cost reduction.



Further, Increasing training hours per employee will make employees more efficient and so will lead to cost reduction and better prices to customers.



Finally, Increase use of employee’s view will provide greater initiative from employees to reduce costs.



Empowered employees will be motivated employees and will help Wal-Mart control its costs

Examples 

Cost per recruitment promotions



Absenteeism by job category



Training cost per employee



training hours per employee



Average employee tenure in the company .



Attrition rate

Objectives

Measures

Target

Increase training hours per employee.

Average training hours per employee.

Increase training hours per employee by 5% each year for the next three years.

Reduce employee turnover rate.

Employee turnover rate.

Reduce employee turnover rate by 3% each year for next thee years.

Increase use of employee’s view

Empowerment index.

Increase empowerment index by 5% every year for at least 3 years.

Initiatives Hire outside trainers. Managers should increase their time spent for training. Increase employee participation in decision making also, increase job rotation. Give more decision making authority to employees.

All four components of the scorecard are used to define and measure the effectiveness of peoplemanagement activities and how the HR function executes them. This provides a strategic measurement and management process to show the connection between a company’s business strategies and goals and its HR strategies, activities, and results. The Balanced Scorecard can provide an ideal approach to measure the contribution that human resource management makes to business success. With the HR Balanced Scorecard in place, it can assist organizations to easily monitor the workforce indicators that are key to their business success. Such solutions enhance HR’s ability to provide counsel to line management and deliver results that make a difference to the achievement

of

their

goals

and

strategy

and

thereby

to

shareholders.

The apparent and inherent values that the HR Balanced Scorecard brings include: Measurement provides the data and facts to support business decisions, giving credibility to HR recommendations and initiatives. Key Result Area or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA. Identifying KRAs helps individuals: ·        

Clarify their roles Align their roles to the organization’s business or strategic plan Focus on results rather than activities Communicate their role’s purposes to others Set goals and objectives Prioritize their activities, Improve their time/work management Make value-added decisions

Description of KRAs Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation). 1. Position: HRM ( Human resources manager)  Position reports to: Chief Executive



Primary objective : Plan, develop and direct Human Resource policies for the organisation and implement procedures to achieve the most effective use of human resources to achieve profitability and business objectives.

Specific accountabilities/ responsibilities: 

Plan, make recommendations and devise personnel and industrial relations policy, in consultation with other senior management.



Establish and direct the organisation's HR procedures and strategies, taking account of the operating environment.



Develop, and direct the setting of performance targets, and participate in business planning and strategy determinations to ensure HR specifications meet the business objectives. Prepare budgets, and other management plans.



Monitor industrial relations developments to prevent and settle disputes. Direct negotiations with unions, industry groups and industrial authorities to determine agreements and minimize the possibility of industrial dispute.



Control and coordinate activities such as personnel administration, staff selection and training, employee relations, wage and salary administration, security, health and safety, employee benefits and remuneration strategy.



Direct and maintain a corporate workforce plan and initiate appropriate action in relation to the organization’s use and development of employees.



Represent and direct the organisation in dealings with other organisations, employer groups, industry associations, unions, government authorities and other relevant bodies as required.



Control the collection, maintenance and interpretation of management information and records to monitor performance, control the preparation of reports (including Affirmative Action) and authorize the release of information.



Ensure the organisation's training activities are planned to meet current and future organisation and employee needs, and satisfy government training requirements.



Review regularly the organisation's remuneration policy, including its market competitiveness, benefit and reward structures, and internal relativity and equity.



Make policy decisions as appropriate, and accept responsibility for operations, performance of staff, achievement of objectives and adherence to budgets.



Establish lines of control and delegate responsibilities to subordinate staff; control the selection and training of staff. May train and advise other managers in Human Resources or industrial relations matters.



Ensure all activities undertaken by Human Resource department employees comply with relevant Acts, legal demands and ethical standards.

Name o the Appraisee

Name of the Appraiser

Job Title

Job Id

Date Commenced Service Date Appointed to Job

Job Title Performance Discussion Date Performance Review Period

Job Id

Overall Rating Purpose of the Job

Sl. KR A 1. 2.

KRA Recruitment/ selection Workforce planning/

W. (%)

Sl. KPI

20

1

20

2

25

3

diversity

3.

Performance management

4.

Reward management

20

4

5.

Workplace

10

5

5

6

management and

Outstanding Superior Good (on target) Marginal Unsatisfactory KPI Description Target

5 4 to 4.99 3 to 3.99 2 to 2.99 1 to 1.99 Rating Achieved KPI KPI

Average time taken per employee 2 months maximum Absenteeism [ KPI =maintain absent rate at 5%] Turnover [ KPI = control turnover rate at 7%] Performance appraisals [KPI = all staff to be appraised at least once annually] Market oriented salary structuring [ KPI = total compensation to sales 12%] Job evaluations [ KPI = 600 lower staff , below grade 4 to be evaluated

relations 6.

Building capabilities and organization learning

Training [ KPI = average training hours per employee annually= 3 days or 24 hours] Weightage total

KRA Achieved

2. Position: Marketing Manager 

Position reports to: Chief Executive



Primary objective : Develop, direct and control the organization’s marketing business strategies and activities to achieve revenue, sales and profit targets.

Specific accountabilities/responsibilities: 

Direct all marketing activities for the achievement of short and long term business objectives, increased profit, and market control.



Establish and coordinate the marketing objectives, policies and programs within the context of the overall corporate plan and, where appropriate, recommend standards and set targets and quotas.



Communicate with the sales group in the preparation of the reports, budgets, and forecasts and ensure they are compatible with support sales plans.



Appraise the activities of the staff according to overall marketing strategies. Monitor and evaluate the performance, and the efficiency of staff and procedures.



Coordinate subordinate staff to optimize the use of human and material resources to achieve goals. Consult with subordinate staff and review recommendations and reports.



Direct marketing activities by setting product mix.



Control and monitor marketing methods, key customer strategies and other arrangements.



Direct and control marketing by planning or coordinating advertising campaigns and promotional activities, product management, market analysis and research and other consulting work.



Direct the development of initiatives such as new products, new marketing techniques, new advertising campaigns, incentive bonus schemes and the dropping of unprofitable products.



Maintain necessary contact with major suppliers, customers, industry associations and government representatives to achieve the objectives of marketing.



May direct merchandise methods and distribution policy.



Select, or approve the selection and training of senior staff. Establish lines of control and delegate responsibilities to staff.



Ensure all the activities of the sales and marketing group comply with relevant Acts, legal demands and ethical standards.

Name o the Appraisee

Name of the Appraiser

Job Title

Job Id

Job Title

Date Commenced Service Date Appointed to Job

Job Id

Performance Discussion Date Performance Review Period Overall Rating

Purpose of the Job

Sl. KRA 1.

KRA Market New

5 4 to 4.99 3 to 3.99 2 to 2.99 1 to 1.99 Target Rating KPI

Wt. (%)

Sl. KPI

20

1

Improve market share by 15% minimum

15

0

25

2

At least 3 new products

30

0

20

3

Improve gross profit by 20%

20

0

20

4

Market oriented pricing

20

0

15

0

share 2.

Outstanding Superior Good (on target) Marginal Unsatisfactory Wt. KPI Description (%)

Achieved KPI

product launches success 3.

Gross profit contribution

4.

Pricing

[ KPI = increase by net 12%] 5.

Promotions

15

5

Effectiveness [ KPI = improve effectiveness by 15%] Weightage total

0

KRA achieved

0