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Case study
Functions Of Boards HR Committee: Make recommendations for maintaining a sound HR system in the company(employee development, sound compensation program and specific succession plans for senior management positions) Recruitment of non-management staff Improvisations of existing PAS Training and development of employees Avoid wasteful expenditure

As an HR manager, HR committee is focusing on improvisation of performance appraisal system and this is a good thing to basically evaluate the performance of employees. This is to improve the performance standards in reality not to discourage the employees. PAS should also be updated from time to time to meet the present company needs. There are reasons for appraising employee performance. Along with appraising training is also important to improve performance standards of employees review and monitor executive development programs for members of senior management also. HR committee is taking measures to avoid wasteful expenditure. This is also in a sense to improve performance standards. We should follow the rule the right person at the right job, which decrease cost and increase efficiency. This action is beneficent for the sake of the company. The Human Resources Committee will review and monitor succession plan for senior management. In this way they may carry on diversity in work.

In order to achieve strategic objectives management of SNGPL need to evaluate its employees against these objectives and for that an effective performance appraisal system would be essential.

Factors: To build a strong performance appraisal system PAS should be based on business objectives and key tasks assigned to an employee. If our PAS should not be in accordance with the companys objectives this will not be much beneficent for the company and may also lead to employee de-motivation. Our standard of performance and appraising should cope up with the requirements of the job to meet the efficiency. PAS also serves a source of most of the current employee information. Performance appraisal was done first at the departmental level leading to functional teams level and lastly at the organizational level. This is because every thing should be followed in a sequential manner. Firstly we have to focus on our departments, when we do something for departmental improvement this will gradually lead to functional teams and then at the end we will focus on improving and evaluating at organizational level. This is a step by step procedure in order to improve efficiency and effectiveness of job. The management had instituted this system thinking that in this way it could assess the value addition to organizational performance at various levels- individual, team and department. Performance appraisal system should focus on continually improving employee performance It should also focus on identify training and development needs. A strong PAS should set effective performance appraisal standards