1.

Does the organisation analyse its strategic and operational plans to identify
objectives for their performance management system?
Yes, organizations do analyze its strategic and operational plans to identify
objectives for their PMS. The comprehensive and analytical factors describe the
strategic planning which is often for long term.
Strategic plans focuses on the dynamic factors which in turn keeps the industrys
mission and vision alive. It is the way in which organisation think about the questions
such as:
what it is doing?
why it is doing?
For whom it is doing?
In Infosys, to keep the track of the organisations mission, company keeps on
updating its day to day plans to meet the rigours of the market by operational
planning.
Company thinks about the things which an organisation should be doing but
due to some reason is not doing or not able to do.
Several issues such as staff capabilities, training etc. are re-examined and are
acted upon. Changes in the current working environment is something which
is opposed by many, so proper leadership skills are required to keep the
difficulties and obstacles out of way.
The strategic planning process involves environmental scan of the
organisation to identify the issues related to political, social, and local factors.
Scanning also helps to identify the SWOT (Strength, Weakness, Opportunity
and threats) of the organisation.
After the scanning, proper direction (strategy) is set up facing such challenges
or use of an opportunity is made, if exists. The company then modifies its
working processes to keep itself going towards its operational goals which are
supposed to be very specific, measurable and realistic as per the situation.
Few more criteria such as action plans, which are to be executed as per
different ongoing situations, timely evaluations of various parameters and
budget planning must be taken into account to trace the organisations
working.
Considering an example of strategy and its operation in Infosys, the companys
inbuilt system Performagic needed some changes that was the inclusion of quality
management to gauge the companys quality of services offered. For that proper
strategy was developed over a period with several key issues in place, tested and
was then put into operation. Its performance was checked at regular intervals and
once it was fully tuned with the system and operational it became the permanent
part of that system (Performagic). So this way company looks after the strategic and
operational plans to identify objectives of its performance management system.
2. How does the organization develop KPIs and how do they measure and assess their
achievement?
KPIs considers the various business processes of the company and hence defines the
ways to measure the performance of these processes.

In Infosys the KPIs present the summarized or aggregated view of the performance
and hence one can easily identify the problem and its root to work on it.
Once having the optimal KPIs matrix and its analysis trail defined, company can
view the information that is intuitive to it with right information being available to
the right people without having lost much efforts and time in getting these
information.
In Infosys, Business Intelligence reporting tools are exploited to make it
comfortable and easy for the user.
Goals and KPIs are defined across various functions which need to be aligned to
measure the achievement of the business goals.
Also, cycle time for creating and approving budgets can be considerably reduced
by using the collaborative top down and collaborative bottom down approach,
For the growth of the company, management of the master data, business rules for
data integration and governance of data which includes business intelligence
organization structure are important.
Infosys uses PMKF (Performance Management KPIs Framework) approach

Performance measurement KPI framework (PMKF)

Following chart is to define the PMKF.
It has build linkages between:
Management KPIs Operational PIs
Mnagement Reports Opertaional/ functional reports
Operational Transactional reports

Following figure is of Infosys multiple transactional systems of which KPI matrix is a

part.

It may be appropriate to focus selection of KPIs on statutory and regulatory

requirements and obligations.
KPI development Approaches:
Lifecycle Approach : KPIs may be developed using the record lifecycle. KPIs
would be developed for each life cycle stage:
Record Lifecycle : Usage of record lifecycle approach to develop KPIs makes sure that
a firm or an agency considers KPIs at all stage of life that id from starting (creation) to
the end (disposal). So in a way every stage is a lifecycle in its own and hence a
separate life cycle can be considered for that specific stage.

 Risk Based Approach : As the heading suggests that its risk based approach,
services, functions or activities which have negative or detrimental impacts can
be easily be identified which an agency undergoes.

Reference: http://www.infosys.com/SAP/news-events/Documents/sapphire-orlando09/business-intelligence-handbook.pdf

3.How often do they engage employees in formal performance management

sessions?
Performance management system is of utmost importance to an organization for its
success. As good employees are the key factor in any companys good performance,
there is scarcity of such employees most of the time. So one does not want to lose
ones talent. Hence, performance monitor results in active personal growth for an
employee.
In Infosys, performance monitor sessions are goal setting and goal evaluation
(Appraisal) sessions and yearly sessions called CRR (Consolidated Relative
Ranking) Evaluations.
Infosys has an inbuilt tool Performagics in which employee and manager put up
employees ratings as per their evaluations.
There is one to one session held between manager and employee every 6
months. In this manager set up the goals for the employee and these goals are
freezed.
The employee work on these goals and records the same.
After 6 months another session is conducted and evaluation of the employee or
appraisal is carried out. The goals which were set earlier are checked and
discussed with the employee.
Again goals are set for next 6 months and a final annual performance is checked.
This annual performance is the basis of employee promotion.
In annual performance, the employee is given a CRR. This CRR is checked
within the same band and few employees are chosen.
Now all the managers of different categories sit on the call and they put up their
employee forward for the best employee selection.
The employee who are chosen as best employees are informed by their
respective managers and are given performance bonus and promotion as
appreciation.
The process is followed at all the rank and is totally unbiased.
In my view, this process is very important and should be carried out with sincerity and
rigorous efforts. The process can be changed from 6 monthly to quarterly to get more in
depth analysis of the employee performance. Also employee will be keen to work once
the time period is reduced and will try to perform better than before. Employee will be

able to judge oneself every quarter and will come to know ones strengths and
weaknesses at a frequent interval.