Performance Management and Strategic Planning at Servis Industries

Servis Group is among most the honored corporate citizen of our state. It has an extended history of above 50 old ages. Established in 1958 Servis group is now the largest exporter, retail merchant and maker of tubings & A ; Surs and pes wears in Pakistan. The group presently employees 9000 employees and the overall gross revenues of the group are above 12 Billion PKR. Servis Group is fundamentally divided into two classs. ( Fig1 appendix )

Servis Industries Limited ( SIL )

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Servis Gross saless Corporations ( SSC )

For the range of this assignment the public presentation direction system of Servis Industries Limited ( SIL ) is reviewed.

Performance Management

“ Performance direction is a procedure whereby we devise and implement motivational schemes, with an aim to change over the rough potency of houses human resource into public presentation ” ( Kandula 2007 ) . In Pakistan, appraisal systems are non really mature. In early yearss, ACRs were normally used for assessments of employees. Then it was transformed into American Appraisal System. But once more, that was non really successful. New techniques were devised. Nowadays, MBO systems are normally practiced in industry which is presently predominating in SIL every bit good.

Management Style at SIL

SIL has late adopted specific direction manner known as Management by Objectives ( MBO ) . MBO is a procedure of holding upon aims within an organisation so that direction and employees agree to the aims and understand what they are in the organisation. Harmonizing to SIL direction, the kernel of MBO is participative end scene, taking class of actions and determination devising. An of import portion of the MBO is the measuring and the comparing of the employee ‘s existent public presentation with the set criterions. As per HR trough of Servis, when employees themselves have been involved with the end scene and the taking the class of action to be followed by them, they are more likely to carry through their duties.

Performance Management System & A ; Strategic Planning at SIL

Servis Industries Limited has implemented MBO based system but it is non decently implemented and in transformational stage. A brief glance of how their system works is given below.

SIL has some defined company aims and missions. Top direction defines company objectives, missions, visions, ends and aims on one-year footing. These aims and missions are decently documented and communicated to different section caputs through HR section. The section caputs define their strategic programs, annual ends and their ain aims which are in coherency with overall SIL ends. These aims and annual ends are so communicated to the line directors and line staff. And line directors define the single ends for workers. Employees at section degree, unit degree and single degree give their feedback ; suggest some additions/deletions and negociate them with their supervisors and so communicated in contrary order in the hierarchy. HR section so eventually document aims and measuring criterions at all degrees for all employees and so sent back to all sections. HR section prepares the assessment forms consequently for each employee to measure his public presentation, strengths, failings, behavior and developmental demands at the terminal of financial twelvemonth. ( Figure 2, appendix )

Throughout the twelvemonth, employees work and strive hard to accomplish their marks and at the terminal of financial twelvemonth, the assessment signifiers are sent by HR section to the section caputs and supervisors for accessing employees ‘ public presentation. Supervisors fill up the signifiers and direct them back to HR section. HR officers compare get downing mentioned ends with the existent public presentation and excavation out the lacks and fluctuations in the public presentation. If some serious spreads are identified, they call an employee and inquire him for the grounds and justifications in the presence of immediate supervisor. If HR officers find the carelessness of an employee, he is given warnings or if he lacks some accomplishments to execute a occupation, he is sent for the preparations. Developmental programs and preparations are non for all employees at all degrees but is restricted merely for the proficient occupations like for production etc.

Reward System at SIL

SIL has implemented consequence based wages system. Increases and wagess are given on the footing of accomplishment of marks. But these increases or fillips are non pre specified but are tied with the production and gross revenues units and the fiscal state of affairs of the company as harmonizing to HR director, this peculiar manner of apportioning increases is easy to provide. As SIL is in transformational stage of following MBO system, so it is besides looking frontward to see behavioural wages system in add-on to ensue based wages system. SIL is inclined to concentrate on positive support instead than giving penalties.

Tradition of feedback @ SIL

Harmonizing to HR director at SIL negative or positive feedback is mandatory because it creates motive and makes them recognize their duties and sense of association and consequences in improved public presentation.

SIL has a civilization where they promote communicating but as their HR system is in transformational system so proper webs are non defined.

Conflict Management @ SIL

Like all organisations sometimes conflicts arises at SIL. They have proper manner of deciding struggles. Supervisors and line staff send their ailments to HR director. HR director arranges a face to confront meeting and calls supervisor, section caput and employee and decide the issue through dialogues but it happens rare. Although the policies are defined, but it is practically non applicable at all times.

Performance Dimension & A ; public presentation Measurement Approach @ SIL

SIL is presently focused on undertaking public presentation as its direction system is in transformational stage but the company is inclined to set concentrate on contextual public presentation every bit good. There are three attacks to mensurate public presentation. Trait attack, behavior attack and consequence attack. SIL is more focussed on consequence attack as other two are non easy to mensurate. SIL uses consequence attack because it incurs lesser clip, lesser cost and objectiveness is maintained.

Performance Measurement System @ SIL

SIL uses absolute system of mensurating public presentation as compared to the comparative system of comparing the top low degree performing artists. They have their ain predefined criterions they grade all their employees on the footing of those defined criterions.

Personal developmental Plans in SIL

Personal developmental programs specify classs of action to be taken to better public presentation. In SIL, harmonizing to the HR director, they have small focal point on the personal developmental program of employees at this point of clip as they are in the execution phase of “ public presentation direction system ” in their organisation. They are merely concentrating on accomplishment based preparation plans ( Table 1, appendix ) .




Figure 1

Documentation & A ; Communication

Documented by HR




Figure 2

Developmental activities



Employees are paired with a coworker or supervisor who designs a formal on-the-job preparation class.



Mentoring as a one-on-one relationship between a senior ( wise man ) and junior employee is practiced in SIL.


Attending a conference

Another manner SIL to get required cognition and accomplishments is to patronize an employee ‘s attending at a conference or trade show.


Job rotary motion

To guarantee employees gain necessary accomplishments is SIL uses the technique of revolving its employees on a impermanent footing





Impermanent assignments

The chance to work on a ambitious impermanent assignment.

Membership or leading function in professional or trade organisation

Organizations distribute publications to its members and besides holds formal and informal meetings through which employee learn about the best patterns and other utile information for their occupation.

The developmental activities used by SIL for employee development are ON-THE-JOB preparation and MENTORING. As they are concentrating more on accomplishment development of employees sing gross revenues and production.


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