PMS Assign 1

ABOUT ITC
ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata,

West Bengal. Established in 1910 as the Imperial Tobacco Company of India Limited, the
company was renamed as the Indian Tobacco Company Limited in 1970 and later to I.T.C.
Limited in 1974.
■ The company now stands renamed to ITC Limited, where "ITC" today is no longer an
acronym or an initialized form. ITC has a diversified presence across industries such
as Cigarettes, FMCG, Hotels, Packaging, Paperboards & Specialty Papers
and Agribusiness. The company completed 100 years in 2010 and as of 2019–20, had an
annual turnover of US$10.74 billion and a market capitalization of US$35 billion. It employs
over 36,500 people at more than 60 locations across India and is part of the Forbes 2000 list.
VISION
Sustain ITC’s position as one of India’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the company’s
stakeholders.
MISSION
To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder.
Performance appraisal
What is -
To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Provide information to assist in the HR decisions like promotions, transfers etc.
• Provide clarity of the expectations and responsibilities of the functions to be performed by

the employees.
• To reduce the grievances of the employees.
Performance appraisal methods ITC-
 Balance score card

 360-degree method
 MBO
 BARS
Let me tell you more about these methods-
1)360 -degree method-
This is a new concept in performance appraisal, where the feedback is collected from all
around the employee, the superior, the subordinates, the peer group, and the
customers. The evaluation is very comprehensive in terms of the employee’s skills,
abilities, styles, and job-related competencies.
This system has the following advantages:
a) Higher validity and reliability of the evaluation.
b) Self-evaluation by the employees gets compared with the perception of others.
c) Helps in maximizing employee potential in the face of challenges.
ADVANTAGES:
• Ratings are likely to be accurate because these are done by experts.
• The method is more reliable and valid as it is job specific and identified observable and
measurable behaviour.
• Ratings are likely to be more acceptable due to employee participation
• The use of critical incidents is useful in providing feedback to the employee being
rated.
LIMITATIONS:
➢ It is very time consuming and expensive to develop BARS for every job.
➢ Behaviours used are more activity oriented than results oriented.
2) MBO-
▪ Set Organization Goals
▪ Defining Performance Targets
▪ Performance Reviews –
Feedback ADVANTAGES:
➢ Ends –means chain
➢ Role clarity
➢ Objective appraisal
➢ Motivation and commitment
➢ Management development
➢ Co-ordination
LIMITATIONS:
➢ Difficulty in goal setting
➢ Problem of participation
➢ Lack of understanding
➢ Time-consuming and expensive
➢ Inflexibility
3) BARS- Behavioural Anchored Rating Scales
This method combines graphic rating with critical incidents method. BARS are
descriptions of various degrees of behaviour relating to specific performance
dimensions. Critical areas of job performance and the most effective behaviour for
getting results are determined in advance. The rater records the observable job
behaviour of an employee and compares these observations with BARS. In this way an
employee’s actual behaviour is judged against the desired behaviour.
These steps involved are:
➢ Identify Critical Incidents - Persons with knowledge of the identify job to be appraised
describe specific examples of both effective and ineffective job behaviours.
➢ Select Performance Dimensions - The persons then cluster the behavioural incidents
into a smaller set (usually 5-10) of performance dimensions.
➢ Retranslate the Incidents - Another group of knowledgeable persons assign each

incident to the dimension that it best describes. Incidents for which there is less than
75% agreement with the first group are not retranslated.
➢ Assign scales to incidents - The second group rates each incident on a 7- or 9-point
scale. Rating is done on the basis of how well the behaviour described in the incident
represents the performance on the appropriate dimensions. Means (average) and
standards deviations are then calculated for the scale values assigned to each incident.
➢ Develop Final Instrument - A subset of the incidents that meets both the retranslation
and standard deviation criteria is used as a behavioural anchor for the final performance
dimensions. A final BARS instrument typically comprises a series of vertical scales that
are endorsed by the include incidents. Each incident is positioned on the scale according
to its mean value.
STEP BY STEP PROCESS
1. Establishment of performance standards are as per their service industry. For this one
should be derived from company’s strategic goals and job analysis and job goals.
2. Communication of performance standards to employee who are working in the service

industry.
3. Measure performance by using information from, personal observation, statistical reports,
oral reports, written reports, comparison of actual performance with standards in service
industry.
4. Discuss appraisal system with employee and identification of corrective action where
necessary in-service industry.
Conclusion -
Performance Appraisal framework is vital to survey preparing necessities to impact advancements,

and to give pay increment. There are two techniques in execution Appraisal framework, those are
current and custom strategy. The visit to the ITC Ltd – ILTD DIVISION has been an extraordinary
advantage for me to find out with regards to numerous perspectives. A viable information has been
achieved by me. As per me, ITC Ltd – ILTD DIVISION is a beneficial organization which focuses more
on the clients and their fulfilment. On the off chance that the organization shows more compassion
towards its workers, it would acquire and more benefits. And furthermore, the organization should
focus on the nature of the items. Evaluation of execution continues in a bunch of examples; the
means included are characterizing Appraisal targets, setting up work assumptions, planning the
examination software engineers', conduction execution meeting, and utilizing examination
information for various HR activities.

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ABOUT ITC

ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata,

To enhance the wealth generating capability of the enterprise in a globalizing environment,

To review the performance of the employees over a given period of time.

• To help the management in exercising organizational control.

• Provide information to assist in the HR decisions like promotions, transfers etc.

• Provide clarity of the expectations and responsibilities of the functions to be performed by

• To reduce the grievances of the employees.

Performance appraisal methods ITC-

 Balance score card

1)360 -degree method-

This system has the following advantages:

a) Higher validity and reliability of the evaluation.

b) Self-evaluation by the employees gets compared with the perception of others.

c) Helps in maximizing employee potential in the face of challenges.

• Ratings are likely to be accurate because these are done by experts.

• Ratings are likely to be more acceptable due to employee participation

➢ Behaviours used are more activity oriented than results oriented.

▪ Set Organization Goals

▪ Defining Performance Targets

➢ Ends –means chain

➢ Motivation and commitment

➢ Difficulty in goal setting

➢ Time-consuming and expensive

3) BARS- Behavioural Anchored Rating Scales

These steps involved are:

➢ Retranslate the Incidents - Another group of knowledgeable persons assign each

STEP BY STEP PROCESS

2. Communication of performance standards to employee who are working in the service

Performance Appraisal framework is vital to survey preparing necessities to impact advancements,

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