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Designing a performance management and reward system for Ansh Systems Pvt. Ltd., an SME in BPO activities in Pune, India

Kosters, M.J. (2011) Designing a performance management and reward system for Ansh Systems Pvt. Ltd., an SME in BPO activities in Pune, India.

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Abstract:Ansh Systems is an Indian-Dutch company that focuses on Business Process Outsourcing of accounting and software engineering activities to Dutch small to medium-sized enterprises. The company has recently been through a growth of personnel, and expects more growth in demand for products and personnel for the future. Because the company’s evaluation system is not prepared for more employees, and there is no clearly defined reward system, a need is identified for these systems to be re-designed into a new software application. In this research, the designing cycle of Verschuren & Hartog (2005) is put into use to design a new performance management & reward system for Ansh Systems. The model structures the design project, and evokes an overview of the criteria for the system, divided into functional, user and contextual requirements. This methodological line of thought gains insight into the designing phase of a new system. The main theoretical criteria that are found can be best described per concept. Abilities, motivation and opportunities can be seen as dimensions that make up a performance, and comparative approaches of performance appraisal are more valid to companies instead of a ‘best practice’ approach. Performance management is different from performance appraisal, and is accomplished through a stage model that includes a clear setup, planning, delivering & monitoring, review and finally reward of performances. Rewards are a motivational tool for performance, and can be divided into individual, transactional, relational and communal rewards. Justice in the system is accomplished through consistent application of rules, making rules free of bias, accurate, representative of stakeholders and consistent with ethics in the organisation. Formalisation of rules is a way to accomplish justice. Formalisation of processes, clear communication of structures, objectives and strategies are methods of handling threats to the performance of employees in Small to Medium-sized Enterprises in the branch Business Process Outsourcing in India. The result of the design is a set of criteria, requirements and assumptions that lead to a set of competencies that can be assessed in the company’s employees. The specific operationalised competencies are assigned to abilities, which are again assigned to main groups, in order to create a hierarchical evaluation structure. The four main groups are Quality, Planning, Business Logic and Internal Discipline. Employees will be appraised on these competencies on function-specific and not-function-specific subjects, and are given a rating, which is coupled to an overall performance grade. This performance grade is linked to the reward policy, which is set up according to current salary standards in the company. Systemization is made possible as a formula for the calculation of a salary is feasible in a software application. A web-application is created with the results of the research, which is meant for internal use in Ansh Systems. The software provides information and calculations to managers and their subordinates, combining the information gathered from evaluations with the salary calculation application. The system is therefore useful for both employees as well as managers, and makes the company’s performance management and reward system insightful and accessible to all people involved in the process.
Item Type:Essay (Master)
Clients:
Ansh Systems Pvt. Ltd., Pune, India
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/63022
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