Softpro Systems Inc

A PROJECT REPORT
ON
Assignment on Role of Human Resource in an
Organization
Organization: Softpro Systems Inc

A project submitted to Osmania University in partial fulfillment of

the requirement for award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
G.HARITHA RAJ
(ROLL NO.098-06- 144)

ST.PAULS P.G COLLEGE,

OSMANIA UNIVERSITY, HYDERABAD
(2006-2008)

Softpro Systems Inc

DECLARATION

hereby

declare

that

this

Project

Report

titled

__________________________________________ submitted by me to
the Department of Business Management, O.U., Hyderabad, is a bonafide
work undertaken by me and it is not submitted to any other University or
Institution for the award of any degree diploma / certificate or published
any time before.

Name and Address of the Student

Signature of the Student

Softpro Systems Inc

INDEX
Page No: 4
Organization Profile (Softpro Systems
Inc)
Page No: 5-6
Organization Structure
Page No: 7-19
Job tasks for various people in
various departments
Page No: 20-27
Job task for Human Resource
Manager
Page No: 28-34
Tra i ni ng an d D e vel op ment
Programmes in the Organization
Page No: 35-40
Performance appraisal system and the
appraisal system followed in Softpro
Systems Inc
Page No: 41-46
Performance appraisal Form
Page No: 47-50
Motivational Theories and the
Motivation theory followed in Softpro
Page No: 51-56
Determination of wages, salaries and
compensation in Softpro
Page No: 57
Bibliography

Softpro Systems Inc

1. HISTORY OF THE COMPANY

SOFTPRO - PROFILE
SOFTPRO has been set up at the Software Technology Park, Hyderabad (STPH), India in 1994.
Hyderabad is in the central region of South India and is well connected to all the major cities of
India by road, rail and air.
SOFTPRO was established to execute overseas software projects and provide on-site support to its
customers world-wide. Marketing is carried through the strategic tie-ups and marketing associates
based in U.S, Europe and SE Asia, currently.
SOFTPRO's philosophy is to provide high quality software solutions and professional assistance to
its clients in managing their Information Technology growth in an optimized and cost effective way.
The technical team at SOFTPRO is committed to excellence of services to its clients. This
commitment emanates from corporate philosophy and reflects in the care with which the
professionals are selected and developed. Through a combination of the expertise, hard work and
total commitment to customer satisfaction, SOFTPRO ensures highest quality levels in all its
services.
SOFTPRO offers the complete range of software services to its customers around the world. Some
of the areas include: Systems Feasibility and Requirements Studies, Design and Development of
both applications and systems software, Conversion, Migration and Maintenance of software across
different platforms and Computer Systems.
SOFTPRO's professionals possess a wide spectrum of skills. These professionals are recruited
through rigorous testing and selection processes. SOFTPRO augments its human resources base and
skills spectrum at different levels from time to time.
SOFTPRO places great emphasis on training and developing its professionals on a continuous basis
to meet the skill demands of its projects and also to improve the quality and productivity of its
services to its customers. To accomplish this, SOFTPRO has established a training group. The
training programs are designed and implemented so as to ensure
Proper induction of the new employees.
Compliance with the skill proficiency requirements of the project teams.
Continuous updating of the skills in the state-of-the art technologies and
methodologies.
SOFTPRO employs state-of-the-art computers and communication technology and is committed to
upgrading the same to effectively satisfy its clients.

Softpro Systems Inc

2. ORGANIZATION STRUCTURE
SOFTPRO SYSTEMS INC
Chief Executive Officer (CEO)
The CEO of the organization reports to the board of directors of the Company. He is the overall incharge of the organization. All functional heads report to him directly.
Management Representative (MR)
MR has the overall responsibility for the entire spectrum of activities in the Quality Assurance area
as per the ISO 9001 requirements.
Customer Relations Executive (CRE)
The responsibility of CRE is to communicate with the client time to time during the execution of the
project.
Quality in Charge (QI)
The QI is responsible for the implementation of the QMS and extends all the support required for the
projects to adhere to the QA activities. He reports to the CEO.
Audit in Charge (AI)
He manages the Audit Function. He is supported by the Audit Coordinator and a pool of trained
Auditors. He reports directly to the CEO. His main responsibilities include planning, scheduling,
conducting the Internal Audits.
Project Manager (PM)
He is nominated by the CEO and is the overall in charge for the projects. He manages the project
teams, project execution and customer interactions and is supported by the Project Leader (PL),
Team Member (s) and Project Quality In charge (PQI). He reports to the CEO.
Human Resources in Charge (HRI)
He is nominated by the CEO and provides the required direction to HRPA and Training Groups
keeping the overall business goals in focus. He is supported by the Training In charge (TI) and
Human Resource Planning and Allocation In charge (HRPAI).
Facilities Management in Charge (FMI)
He is nominated by the CEO. He is overall responsible for planning & procuring the Hardware and
Software resources for the organization ensuring that reliable resources are available for meeting the

Softpro Systems Inc

project needs in a timely manner. He is supported by the Purchase In charge (PI) for purchasing
activities, System Administration In charge (SAI) for allocating and & maintaining the resources in
good condition, Physical Facilities In charge (PFI) for providing required workspace, seating
arrangement and other administrative services.
Accounts in Charge (AAI)
He is responsible to maintain accounts for the organization related tasks like payments, billing the
projects etc.

Softpro Systems Inc

3. JOB TASKS FOR VARIOUS PEOPLE IN VARIOUS DEPARTMENTS

A) Chief Executive Officer (CEO)
Appointed by Managing Director.
Reports to Board of directors, Softpro Systems Ltd.
Handles the responsibilities of MR and heads of other functional units
in the absence of designated persons for these roles.
Responsible for
Setting overall Quality Objectives, metrics and Policy.
Organizational development and management controls.
Reviewing Quality System implementation for effective implementation and
achievement of the Quality Objectives, through regular Management Reviews of all
the functional units and the projects.
Ensuring that corrective and preventive actions are taken as and when necessary.
Maintaining customer relations and initiate steps to improve the customer satisfaction
levels
Giving inputs to Customer Relations Incharge on customer complaints received
directly by the management.
Participating as auditee Incharge in the Internal Audits.
Nominating the committee's and personnel holding the roles defined in the QMS.

Authorized to
Nominate the staff who will play the roles shown in the organizational structure
and discharge the responsibilities prescribed for the roles. In the event of absence
of any such nominated staff CEO or any other person designated by CEO will
handle their responsibilities.
Nominate someone to represent him in his absence, to discharge the specific
responsibilities as per QMS requirements.
Approve Quality System Manuals, and the distribution list for issue of copies of
Quality System Documents / Manuals.
Identify and appoint appropriate personnel for management, performance of work,
verification and validation activities in the organization.
Delegate project management, contract review operations and Quality System related
responsibilities to appropriate personnel.
Approve initiation of Projects & Assign project(s) to Project Manager(s).
Approve work ahead when needed.
Ultimate authority for giving the approvals in the event of the designated person not
being present or happens to be the request originator.

Softpro Systems Inc

B)

MANAGEMENT REPRESENTATIVE (MR)

Nominated by CEO.
Overall responsibility for development, implementation and
continuous improvement of the QMS
Reports to CEO
Ensures building up of customer focus and the importance of meeting
customer requirements and improving customer satisfaction levels at
all levels in the organization
Consolidates the performance metrics of the QMS at organization
level and reports to CEO to initiate the required corrective and
preventive actions.
Schedules and coordinates the Management Review meetings.

Responsible for:

Acting as Management Representative under ISO 9001:2000 Standards

Formulating Quality Policy and Quality Plan in consultation with Management (CEO)
Establishes the processes for improvement of Quality Awareness in the organization.
Developing and maintaining QMS & Monitoring the effective implementation of
Quality System
Giving thrust to the areas that are identified as focus areas in MRCM or are identified
as weak in the organization
Participating in the Internal Audits.
Initiating and conducting Management Reviews
Providing feedback on Quality Metrics in the Management Reviews.
Further analysis of the Internal Audit Reports and QMS Implementation Reports
received from AI and QI respectively to identify the needs of the QMS and initiating
the necessary actions and process improvements.
Ensuring that the corrective and preventive actions agreed upon during MRCM
reviews are taken at organization level in processes, procedures and the documented
Quality System.
Liaison with External bodies on matters related to QMS.
Reviewing the effectiveness and continued suitability of the Quality Objectives, Plan
and updating them when needed.

Authorized to:
Approve changes to and release of QMS documents.
Identify reviewers for QMS Documents.
Interact with the project teams on matters related to QMS Implementation.

Softpro Systems Inc

C) QUALITY INCHARGE (QI)
Nominated by CEO
Heads the QA Group
Is supported by the Quality Coordinator (QACO) nominated by
HRPAI
Reports to CEO.

Responsible for:
Involving in development of QMS
Implementation of the QMS.
Ensuring that all personnel have been trained on the Quality System and the
standards.
Providing guidance and support in implementing the Quality System to projects and
support activities.
Conducting organization wide causal analysis taking inputs from implementation
feedback, audits and review meetings.
Initiating corrective and preventive actions for problems detected.
Providing feedback on Quality System implementation and effectiveness in the
Management Review meetings, periodic review meetings and through reports to GM
and MR.
Handling the EQA requirements for the projects.
Maintaining QMS quality records and document control system.
Participating in the Internal Audits.
Collecting, analyzing, and reporting on Customer Complaints, Satisfaction reports,
and effectiveness of customer interaction at the organization level in the absence of
any other person designated for the purpose.
Participating in the PMR's to review the Projects w.r.to Quality related Issues.

Authorized to:

Assign the tasks related to the QA Group & QMS to QACO.

Issue additional hardcopies of controlled QMS documents.
Give recommendations for Work ahead requested.
Identify reviewers for EQA requirements received.

D) AUDIT INCHARGE (AI)

Nominated by CEO
Manages the audit function
Is supported by the Audit Coordinator (AUCO) nominated by
HRPAI, and a pool of trained auditors.
Reports to CEO

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10

Responsible for
Planning and scheduling the internal audits for all audit areas.
Conducting Internal Audits with the help of trained internal auditors.
Reviewing action taken on the reported non-conformities from internal and external
audits and closing them formally.
Analyzing the non-conformities reported across the organization.
Reporting the status of audit findings to the management.
Providing audit findings as inputs for management reviews.
Providing feedback on audit process as inputs for process improvement.
Participating in the internal audits.

Authorized to
Nominate the Lead Auditors and Auditors for the Internal Audits scheduled
Assign the tasks related to the audit function to AUCO.
D) CUSTOMER RELATIONS EXECUTIVE (CRE)
Nominated by CEO
Preferably an independent person who does not directly involve in project
activities.
Reports to CEO.

Responsible for:
Promotes throughout the organization the importance of meeting customer
requirements, improving customer satisfaction levels
Reviews customer satisfaction from time to time seeking inputs directly from the
customer.
Ensures that customer complaints are addressed satisfactorily.
Provides inputs on customer complaints, customer satisfaction and related metrics in
the management review committee meetings.
Reviews customer interactions from time to time to provide inputs on improving the
same.

Authorized to:
Have access to all channels of customer interactions in projects
Receive a copy of the customer complaints and customer satisfaction reports from all
projects.

F) PROJECT MANAGER (PM)

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11

Nominated by CEO
Heads a set of projects and/or lines of business as assigned by CEO
Overall responsible for meeting project commitments and customer
satisfaction.
Manages the project teams, project execution and customer
interactions.
Is supported by the PL and team members.
Reports to CEO
Responsible for
Planning and initiating process for acquisition of resource and skill requirements for
projects.
Handling the responsibilities of Project Leader (PL) till such a time a PL is designated.
Finalizing the roles and responsibilities of PM/PL/PQI specifically for the project in
consultation with the PL and reviewing and updating the same depending on the
changing status of the project or change in personnel holding these positions in the
project.
Suggesting methods, tools, methodologies, and techniques to improve the process in
consultation with the client when needed.
Ensuring that the projects are meeting the contractual commitments.
Ensuring effective implementation of Quality System in the projects.
Establishing the processes for collecting the project metrics, analyzing the collected
metrics, and achieving the organizational targets in the metrics identified for the
project.
Reviewing the training requirements for the projects.
Reporting on the status of the projects and issues to the management.
Forwarding, follow-up, and tracking the work-aheads issued for the projects.
Initiating and Participating in the Joint reviews with the Clients.
Ensuring that the causes for non-conformities in the projects (both internal and field
complaints) are analyzed and corrective and preventive action are initiated.
Participating in the MRCM to give feedback on Quality related issues in the projects.
Giving inputs to Customer Relations Executive on customer complaints, customer
satisfaction reports, and joint review meetings from time to time.
Participating in the internal and external audits & PMR's.
Bringing the projects to a formal closure and handing over the project related quality
records, software and other material to the CEO's Office or any other entity designated
by CEO.
Participating in the performance appraisals of the personnel involved in the project.

Authorized to
Coordinate with the customer.
Initiate formal process for allocation of the Project Leader (PL).
Assign/delegate responsibility and authority to the PL.

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12

Review and approve the detailed plans for the project.

Approve changes in requirements after due evaluation of their impact.
Approve the project-related documents and deliverables.
Approve a non-conforming Item for delivery through proper channel.
Use and provide access rights for use of the FTP, Email etc. for project purposes.
Conduct progress reviews with the PL.
Initiate the joint reviews/ conference calls with the client.
Maintain required level of customer liaison for the projects.

G) PROJECT LEADER/PROJECT INCHARGE (PL)

Nominated by HRPAI
Plans and executes the project in compliance with the plan, ensuring
the required product quality and process compliance is maintained.
Gives the required technical support to the team.
Is supported by project team in carrying out the project.

Responsible for
Planning the project in consultation with the PM at required detail and requesting the
required resources for the project.
Executing the project as per the plan.
Ensuring that the training requirements for the project are identified and required
training is given. Every member is inducted into the project after briefing them on the
project's processes, standards to be followed and plans.
Implementing the Quality System in the project.
Maintaining the configuration management in the project.
Providing technical support to the team.
Interacting with team continuously and conducting the team meetings as planned.
Allocating the tasks to the team and monitoring the schedules for the tasks allocated.
Ensuring verification and maintenance of project quality records.
Ensuring use of tools and techniques in the projects.
Coordinating client activities including acceptance.
Analyzing the cause for non-conformities (both internal and field complaints) with
Project Quality Incharge and taking the required corrective and preventive actions by
initiating checklists, work instructions etc. and updating them on continuous basis.
Analyzing the changes required for project documentation and deliverables
Reviewing the project related documents and work done by the team.
Bringing the issues in the project to PM's notice for further escalation to the
management.
Reporting to the PM, client, and Management on the status of the project.
Collecting and analyzing the planned metrics for the project and reporting to the
management.

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13

Participating in the joint reviews for the project.

Participates in internal audits and PMR's, and joint reviews of the project.
Participating in the performance appraisals of the personnel involved in the project.
Winding up the projects and handing over the records and documents to PM for further
action.

Authorized to

Assign/delegate responsibility and authority to the team.

Co-ordinate with the customer.
Represent the project in the internal and external audits & PMR's.
Review the roles and responsibilities of the project team members and request a
reorganization, if found necessary depending on the status of the project.
Initiate the joint reviews/ conference calls with the client to resolve the technical
issues in the project.
Use and provide access rights for use of the FTP, Email etc. for project purposes.
H) PROJECT QUALITY INCHARGE (PQI)
Nominated by PM after allocation by HRPAI
Directly reports to PL.
Ensures product and process compliance in the project.
Is supported by the team members in carrying out the QA activities.
Is supported by the QI (on request) in establishing the processes for
the project.

Responsible for
Planning the Quality Assurance activities, processes, and control mechanisms to
ensure product quality & assisting the PL in the preparation of Software Quality
Assurance Plan for the project.
Planning the process control mechanisms to ensure compliance with the planned
processes.
Establishing the processes needed with support from QA Group if needed.
Implementing the quality plans as planned for the project.
Preparing the induction manual for the project.
Providing the required guidance and support for the team members in following the
established processes.
Ensuring that the personnel are following the established processes and are making
use of the checklists etc. activated as a preventive and corrective measure and
updating the processes where needed.
Providing inputs on quality related issues in the team meetings.
Assisting in collecting and analyzing the defect related metrics for the project.
Being aware of the baselines of all the configurable items in the project, their
dependencies etc. so that they can individually visualize the impact of changes in the

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14

items.
Release control in the project by ensuring that all effected items are verified after
every change and only the controlled copies are released for use.
Participates in the internal and external audits.
Coordinating all the planned reviews & inspections in the project at all stages.

Authorized to

Propose to PL, any QA activity for allocation to other team members in the project.
Coordinate with external QA Group for all EQA requirements for the projects.
Initiate corrective and preventive actions in the project.
Represent the project in the PQI meetings with the QI.
Approve the changes done on project items.
Use the FTP, Email etc. for data transfer and uploading and downloading the files
when required by the project.

I) TEAM MEMBERS - TM
Allocated by HRPAI
Reports to PL
Carries out all the activities assigned throughout the projects life
cycle.

Responsible for
Carrying out analysis, design, construction, testing and validation, and any other task
assigned as per plan and reporting on the status.
Involving in the QA activities, maintaining the systems for the project as allocated.
Complying with the defined Quality System in all their activities.
Adhering to standards, rules, practices and conventions.
Generating the project quality records that are complete and correct, and for handing
over the approved records to the PL/ Person Incharge
Participates in the team meetings.
Taking timely and appropriate corrective actions for non-conformities found in their
work products, and the non conformances reported in their areas of activities.
Involving in the project management tasks that are allocated to them.

Authorized to
Use suitable tools, methodologies, and techniques identified for the projects.
Use the FTP, Email etc. for data transfer and uploading and downloading the files when
required by the project.

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J) HUMAN RESOURCES INCHARGE (HRI)

Nominated by CEO
Provides the required direction to HRPA and Training Groups
keeping the overall business goals in focus.
Is supported by the Training Incharge (TI) and Human Resource
Planning and Allocation Incharge (HRPAI).
Reports to CEO

Responsible for
Planning for human resources and skills requirements.
Developing and implementing performance appraisal system.
Identifying the strengths and weaknesses of the individuals and initiating
remedial actions.
Generating job descriptions.
Reviewing and initiating actions to bridge the gap between skills available
and project needs.

Authorized to
Select and recruit trained/experienced personnel.
Review and approve training & HR plans for the organization.

K) TRAINING INCHARGE (TI)

Nominated by CEO
Heads the Training Function
Is supported by the Training Co-Ordinator / Training Officer (TRCO)
nominated by HRPAI.
Reports to HRI

Responsible for
Identifying the training needs with respect to Quality, Quality System, and all other
project related skills.
Planning the training plan for the organization based on the training needs.
Implementing the training plan ensuring the quality of the training imparted.
Evaluating the effectiveness of the training imparted.
Taking the necessary corrective and preventive actions for ensuring that the quality of
the training is maintained and further improved.
Collecting, analyzing and reporting the training metrics at organization level.
Maintaining the Training Records.

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Authorized to
Assign the tasks related to the Training Function to TRCO.
Identify the faculty for conducting the training.

L) HUMAN RESOURCES PLANNING AND ALLOCATION INCHARGE (HRPAI)

Nominated by CEO.
Plans and allocates the human resources to the Projects as needed.
Plans and allocates workspace for personnel.
Collects and Reports the HR metrics to HRI for further planning.
Is supported by the HR Co-Ordinator (HRCO) nominated by HRPAI.

Responsible for
Maintaining the skills database, qualification, experience related records of the
employees.
Monitoring the skills and human resources requirements for projects and matching
them with the available resources.
Bringing the HRPA related resource requirements, issues etc. to the notice of HRPA
Committee in the HRPA Meetings and resolving the same.
All HR nominations and allocations to Projects and Support Functions.
Allocating proper workspace enabling the personnel to carry out the designated
activities smoothly.

Authorized to
Plan and allocate human resources to a projects and support functions
Decide on the workspace allocation in consultation with the management (if required).
Assign the tasks related to the HRPA Function to HRCO.

M) FACILITIES MANAGEMENT INCHARGE (FMI)

Nominated by CEO
Over all responsible for planning & organizing all the infrastructure
facilities which includes, Hardware and Software resources and
physical facilities like work environment, seating and transportation.
Is supported by the Purchase Incharge (PI) for purchasing activities.
Is supported by System Administration Incharge (SAI) for allocating
& maintaining and the resources in good condition.
Is supported by Physical Facilities Incharge

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Responsible for
Facilities acquisition, management and disposition.
Ensuring that the purchased hardware, software and other resources conform to
specified requirements.
Ensuring that the essential working environment is provided for proper functioning of
the HW equipment.
Establishing appropriate systems and procedures for the maintenance and effective
utilization of the resources acquired, and monitors their implementation.
Performing vendor evaluation from time to time in consultation with SAI and PI.

Authorized to
Plan and initiate steps to acquire the hardware, software and other infrastructure
resource requirements for the projects.
Recommend addition or deletion of vendors from the approved vendor's list.
Approve inclusion or removal of vendor's from/to the approved vendor list in
consultation with CEO when two independent persons handle the FMI and PI roles.

N) PURCHASE INCHARGE (PI)

Nominated by CEO
Is supported by the Purchase Co-Ordinator (PCO) nominated by
HRPAI.

Responsible for
Procuring the required Hardware/Software resources from reliable sources.
Receiving the in-coming goods and handing over to the system administration after
preliminary verification.
Ensuring compliance with the purchase procedures.
Maintaining the database of vendors and their performance.
Maintaining the purchase records and data as per the established norms.
Participating in the vendor performance reviews at periodic intervals and give
recommendations on their performance.
Follow up and reporting the status of Purchase Operations to the management & FMI.

Authorized to
Validate and certify the purchased hardware and software products as cleared from
inspection.
Suggest vendors who could be added/ removed to/from the approved vendor's list.
Assign the tasks related to the Purchase Function to Purchase Coordinator (PCO).

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O) SYSTEM ADMINISTRATION INCHARGE (SAI)

Responsible for

Nominated by CEO
Heads the System Administration Group.
Ensures that the resources are allocated to the projects as requested
and are maintained in good working condition and brings the resource
requirements to the notice of FMI for further planning.
Is supported by the System Administration Co-Ordinator (SACO)
nominated by HRPAI.

Inspecting the in-coming goods or co-ordinating the same with the vendors.
Installing System software and packages as per the requirements of projects.
Resource allocation and release as requested.
Maintaining the data related to the available Hardware/Software.
Handing over the software to the Software librarian.
Establishing and maintaining the Network.
Ensuring that the planned maintenance is done for the resources so that they are
maintained in reliable working condition.
Providing support/ coordinating with external parties in rectifying the problems
reported on Hardware/ Software
Reports to the management in status of the hardware / software resources.
Participating in the vendor performance reviews at periodic intervals and give
recommendations on their performance.
Conducting the Goods Inspection for the received goods and ensuring that only the
passed goods are used for project purposes.

Authorized to
Organize installation and testing of purchased hardware, software products and
network systems.
Interacts with vendors on Resource installation and issues related to maintenance.
Assign the responsibility to carry out the incoming goods inspection and Testing to
suitable person.
Suggest vendors who could be added/removed to/from the approved vendor's list.
Assign the tasks related to the System Administration Function to System
Administration Coordinator (SACO).

P) PHYSICAL FACILITIES INCHARGE (PFI)

Nominated by CEO
Provides support for general administration, accounts and other
Liaison for the organization and facilities management.

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Is supported by the Accounts Coordinator (ACCO) nominated by

CEO.
Is supported by the Administration Incharge (ADI) nominated by
CEO.

Responsible for:
Organizing work space arrangements ( number of seats and locations)
Administrative services ( telephone & communication systems)
Arranging for Transport facilities to visit the client place.
Q) Management representative

Management Representative reports directly to CEO and

Ensures that Quality System is established, implemented, maintained and continuously
improved in accordance with the standards (ISO 9001).
Reports on the performance of the Quality System to the management for review and as a
basis for improvement of the Quality System.
Interacts with the external parties on matters relating to Quality System.
Customer Relations Executive (CRE) will have the responsibility of promoting awareness of
customer requirements throughout the organization.

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4. JOB TASK OF HR
HRM
AN OVERVIEW
The Human Resources Planning and Allocation (HRPA) process comprises of the
following procedures:
Human Resources Requirement Planning
Human Resources Skills Data Maintenance
Human Resources Allocation, Extension and De-allocation
HUMAN RESOURCES REQUIREMENT PLANNING
A.

Purpose
To plan the requirement of human resources and skills at different levels, for a given
period of time and to prepare a Human Resources Requirement Plan.

B.

Scope
This procedure covers assessing of the human resource and skills requirement over a
given period, as realistically as possible for them to be feasible, taking into account the
existing project requirements and planned business growth. This planning exercise is
carried out once a year, and is reviewed every quarter.

C.

Entry Criteria

Beginning of a year or Beginning of the Quarter.

D.

Responsibilities
Activity

Responsibili
ty

Obtain the human resource requirements projections

HRPAI

Consolidate the human resource requirement projections

HRPAI

Finalize the Human Resources Requirement Plan (HRRP)

HRI/HRPAI

Review the HRRP quarterly and update

HRI/HRPAI

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E.

21

Procedure
The Human Resources Requirement Plan (HRRP) is prepared at the beginning of every
year.
This annual plan is reviewed, at the beginning of every quarter, for its continuing
suitability and updated, if necessary. Following activities are carried out:
Obtain the human resource requirements projections
Obtain requirement projections for the on going projects, new projects to be
started and planned activities in consultation with the senior personnel in-charge
of projects and functional groups.
Interact with the MR/QI to work out the quality objectives relevant for the group
and targets specified. These could be related to recruitment process, academic
and experience profile of human resources to be maintained and other factors
such as making available the needed resources etc. The quality objectives for the
group can be a part of the organizational quality objectives or can be designed
to ensure a high quality service by the group to the other internal users.
Obtain from management the business growth planned and corresponding
projections for human resources.

Compile the human resource requirements projections

Review the details of HR requirement projections
Seek clarifications and modify, if needed, in consultation with the concerned.
Consolidate the requirements projected quarter wise, skill wise
Assess the additional requirements of human resources quarter wise taking into
account: skill wise staff available, likely staff movements (resignations,
deputations, returning from deputations etc.).
Prepare the draft version of the consolidated human resources requirements plan
(HRRP) for further review and approvals.

Finalize the annual Human Resources Requirement Plan (HRRP)

Present the draft HRRP to the HRPA committee, other concerned management
members for review and suggestions on strategies to be implemented to meet the gaps
in the requirements and availability. The strategies may specifically address issues on
how to get additional/new skills, identifying potential staff internally to move on to
new roles, sourcing the requirements externally.
Prepare the final HRRP incorporating the suggested changes during the review
process. The finalized plan will include: quarter wise , skill wise, level wise number
of staff required, number of staff available, additional staff to be recruited, strategies
for recruitment and acquiring skills that do not exist in the organization .
Get the approval of the HRRP from the HRI or other designated management
member.
Obtain the HRI's and CEO's approval for the consolidated Human Resources
Requirement Plan.

Review the HRRP quarterly and update

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F.

22

Organize review of the HRRP by HRPA committee for the ensuing quarter and
incorporate the recommended changes. The review should take into account the
business needs in the ensuing quarter and other factors considered while preparing the
annual HRRP and arrive at the changes needed, if any, in the HRRP for the
remaining quarters.
Obtain the approval of the HRI and CEO's for the updated HRRP.

Verification and Validation

Review of the HR Requirement Projections by HRI.

G.

Exit Criteria
Approval of Human Resources Requirement Plan.

HUMAN RESOURCES SKILLS DATA MAINTENANCE

A.

Purpose
To outline the activities involved in maintaining skills data of all human resources that
are available for software projects.

B.

Scope
This procedure covers all project

C.

Entry Criteria

D.

personnel of the organization.

On receipt of latest skill data from an employee or training in-charge or project incharge.
Once in a quarter.

Responsibilities
Activity

Responsibility

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E.

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Receive the latest skill data of human resources

HRPAI

Prepare/ update the HR Skills Summary Report

HRPAI

Maintain the updated skills data and resumes

HRPAI

Procedure
Skills information of employees is maintained in two forms in C.V form and in an
abstract form as Employee Skills Data. This data is updated regularly once in a quarter.
Information becoming available between the regular updates is kept track at employee
level separately.
Following activities are carried out:
Receive the latest skill data of human resources

Obtain the latest resume or the skills update information of an employee when ever :
- A new recruitment takes place.
- A person completes a project / returns from on site deputation.
- A person completes a training programme/ acquires some new skills
- Once in a quarter for all those in the ongoing projects

Prepare/ update the HR Skills Summary Report

Analyze the skills acquired by the employee, to decide on the Proficiency Index in the skills,
discussing with the employee and the PL/PM concerned.
Prepare the Skills Summary Reports giving the employee wise available skills and skill wise
employees details.
Update the Skills summary Report at least once a quarter.
Maintain the updated skills data and resumes:

F.

Maintain the latest skills data of an employee, updated on quarterly basis. This can be done
by contacting all employees or in consultation with the PMs / PLs keeping a track of the
skills being acquired by the employees.
Keep track of update information received during a quarter, employee wise, and ensure that
the latest updated skill profile of an employee is available

Verification and Validation

None.

G.

Exit Criteria
Updated Skills Summary Report.
GUIDELINES FOR DECIDING PROFICIENCY INDEX IN A SKILL AREA
Proficiency Index

Experience Profile of the Person in the given Skill Area

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Limited to Academic Exposure or Training
Has Familiarity with Subject, Technology
Cannot be assigned Independent Work

Has Hands on Experience

Carried out Projects that are Case Study based or Internal Projects
Exposure to formal Software Engineering Methodologies is
doubtful
Needs some Supervision at work

Has Adequate Project Experience, ie, Customer Projects, formal

Software Development Methodologies
Does not need Supervision. Can handle work independently
Meets requirements of Skill Profile under evaluation

Has good accomplishments in Skill set

Can perform beyond defined Responsibilities
Will be an Asset to the team
Can Lead and Guide other members of team

Possesses Expertise in the Field

Has Wide Exposure to Technology. Can assimilate New
Technologies
Can handle Projects independently

Note: The proficiency index is an approximate quantitative expression of relative

strength of a professional in a particular skill . It is intended to help in the work
allocation process.

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The index is arrived at by personal discussions with the concerned professional and
his/her supervisor.
HUMAN RESOURCE ALLOCATION / EXTENSION AND DE-ALLOCATION
A. Purpose
To outline the steps involved in managing the allocation and de-allocation of human
resources to projects.
B. Scope
This procedure covers effective utilization of human resources, assigning right resources
to right projects and pursuing of release of resources from projects.
C.

Entry Criteria
Request for Allocation/ Extension
Intimation of De-allocation
Requirement for withdrawal of personnel from project.

D.

Responsibilities
Activity

Responsibilit
y

Evaluate request for allocation/extension of

allocation

HRPAI

Allocation/Extension of the Human Resources

HRPAI

De-allocation of human resources

PL/ HRPAI

Release of human resources

PL/PM

Up date the Status and reports

HRPAI

E. Procedure
Request for allocation/extensions of human resources are raised by PM/PL or in charges
of functional areas like Training, Marketing etc., for management approved projects or
other initiatives. All such requests are processed by HRPAI in close coordination with
HRPA committee to ensure optimal and effective utilization of human resources in the
organization. Following activities are carried out
Evaluate request for allocation/ extension of allocation of human resources:
Review the request considering the skills required and numbers required.

Evaluate the availability of candidates with the required skills for allocation,
other pending requirements / plans and the personal constraints (if any) of the
resources being considered.

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Shortlist the suitable candidates /options. In case, the requirements are not met
completely, evaluate the impact of the gaps in consultation with the requestor and
arrive at the best possible options (like retraining, outsourcing, recruitment etc).
Review all the requests for extension of allocated human resources from the
criticality of the tasks in progress, plans and the likely impact of such extensions.
Discuss with HRPAI Committee the details on these requests to finalize
identifications

Allocation and Extension of Human Resources

Brief the identified resources and the concerned in charges about the new
allocations/ extension.

Discuss the gaps, if any, in the skills requested and allocated to let the
requester plan for a strategy to bridge the gaps by appropriate initiatives like
training etc. Keep track of any allocations are agreed upon to be made at
subsequent dates so that the same can be satisfied.
Plan for the completion/ handover of the currently assigned tasks if any for
the identified resources and a formal release.
Issue the allocation letter indicating the from' and to' dates of the
allocation/extension Copy it to the requester, individual allocated,
PM/functional head concerned and QA in- charge.

De- allocation of the human resources:

This can happen when

PL/PM communicate to HRPAI on the early release of an allocated resource, using the
form
When the allocated resource completes the period of allocation, and there is no request for
extension in the project. HRPAI to log the HR Release request in this case and inform the
PL/PM.
HRPAI Committee decides under a compelling organizational need to release a resource
from the allocated activity, before the expiry of the allocation. HRPAI informs the PL/PM
in charge, requesting them to plan for the release using the form duly referring the minutes of
the meeting where the decision is made.
Inform the concerned employee, PM, PL.

Release of Human resources:

Release of the human resources takes place either due to de allocation of the resource
before the due date or on completing the period of allocation and no request for
extension of the resource is received. In all such cases, the person being released is
required to properly handover the activities being done.

PL/PM arranges for completion of tasks on hand, documentation and hand

over to the identified person.

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Ensure that pending commitments to customer, made by the person being

released, are made note of, for further follow up and customer relations are
taken care of.

PL/PM complete the formal release form and release the resource

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Update Status

Update the human resources allocation status whenever an allocation, or release takes
place.
Maintain the minutes of the HRPA committee meetings, record of all requests received,
action taken on them, allocations made
Ensure that information on the updated skills of the employee is received from the PL.

F. Verification and Validation

Skills update information of the released employee should be received.
Allocation and release communications are conveyed to all concerned (PL, PM,
individual)
Allocation status of employees is updated.
G. Exit Criteria
Allocation/Extension/De-allocation of resources.

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5. TRAINING AND DEVELOPMENT PROGRAMMES IN THE ORGANIZATION
TRAINING Procedures
AN OVERVIEW
Training is an integral part of the software project environment at Softpro. Training
function provides support to realize the business objectives by training the professionals
with necessary skills related to the relevant technologies, project execution, quality
system and other personal and management areas.
The training needs are identified with reference to the business needs, project needs and
staff needs. Training programs are organized to realize these needs.
The training programs are categorized as category 1 and category 2.The category 1
programs are designed and conducted to develop specific skills / knowledge. These will
follow formal training process outlined in this manual including evaluation of the
proficiency gained by the participants in the program area and maintain this information.
Category 2 programs will be of awareness type like seminars by visiting experts or
knowledge sharing etc. for which the course material, evaluations etc. are not mandatory.
The training process would typically comprise of the following procedures:
Training Requirements Planning
Scheduling the Training programmes
conducting the Training Programme
The following subsections describe each of the above, and Work products. In addition,
the Common Procedures applicable for all Project / Support Groups are included in of
this manual.
The following records are generated:

Training Requirements Projection

Training Requirements Plan (Created/Updated).
Training Request
Training Nomination
Attendance Sheet.
Training Programme Participants Feedback Form
Faculty Feedback Form
Training Evaluation Sheet
Skills Update
Summary of the feedback.
Training Material (Prepared/Updated).

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TRAINING REQUIREMENTS PLANNING

A.

Purpose
To plan the training requirements for a given period and prepare Training Requirements
Plan.

B.

Scope
This procedure covers assessing the training requirements for a period, as realistically as
feasible, taking into account the existing project requirements and planned business
growth. This planning exercise is carried out once a year, and is reviewed every quarter
for continuing suitability.

C.

Entry Criteria
Beginning of the Year.
Beginning of the Quarter.

D.

Responsibilities
Activity

E.

Responsibility

Compile the training and skills requirements

projections

TI

Analyze the training requirements projections

TI

Prepare the training requirements plan

TI / HRI

Re-Validate the training requirements plan

TI /HRI

Procedure
Training and continuous learning are important activities forming an integral part of the
SoftPro business operations. An annual plan is prepared for these activities dovetailing
it into the plans of other groups like business groups, HR, QA and management vision
and business goals.
The Training Incharge (TI) compiles the skills and training requirements at different
levels across the organization in consultation with the HRI, PMs, functional heads and
others suggested by HRI. The various options to meet these requirements are analyzed
and assessed by the TI.
The TI interacts with MR/QI and works out the quality objectives for the group for the
year along with the targets for their metric. These objectives can be directly or indirectly
supporting the organization's quality plan. These objectives will guide and ensure the
quality of the training services provided by the training group to the other users in the
organization.
The Training Requirements Plan is then prepared and submitted for approval, to the HRI.

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The plan need to ensure meeting the quality objectives At the beginning of every quarter,
the TI and HRI will review the Training Requirements Plan for validating its continuing
suitability to the organizational goals and requirements, and updates the plan.
The following tasks are carried out:
Compile the Training and skills Requirements Projections

Obtain from management (and the HRPA review committee), for the period under
consideration, the projections of skills requirements, at various levels.
Obtain from the in-charges of functional groups and projects, the details of training programs
(subject areas, numbers &levels of staff to be trained, period by when the training is needed)
required for
Ongoing project activities,
Business needs
To strengthen the identified weak areas
Quality system requirements
Staff career progression requirements
Note: The staff requirements can be got from the annual appraisals or directly from the
staff, as applicable.

Consolidate the Training Requirements Projections quarter wise.

Analyze the Training Requirements Projections

Analyze the requirements compiled with reference to priorities, quality objectives and
relevancy.
Identify the programs, based on its priority and the number of staff to be trained,
Which need to be organized internally
For which staff can be nominated to external programs
Which can be organized as self-directed training using video, CBT, Manual study
resources
Update the compiled requirements projections
Prepare the Training Requirements Plan

Prepare a report giving details of the following

Number of staff that need to be trained, quarter wise, skill-wise.
Quality objectives for the year
Number of training programs required, quarter-wise.
Programs for which faculty skills are available with in the organization and for which
external sources need to be mobilized
Programs for which staff to be nominated to outside programs
Programs that can be conducted as self directed training
Additional training resources like videos, CBT s etc. requirements.
Present the report to HRI and other designated management staff for review and suggestions
before finalization.
Update the Training Requirements Plan with the suggestions and obtain approval from
HRI/CEO

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Re-validate the Training Requirements plan

The training requirements plan compiled is a projection of annual training requirements.
Due to the business priorities and projects on hand, these requirements may change.
Hence, the training in-charge shall re-validate the training needs at the beginning of
every quarter. The TI shall make required updates to the plan and get approval from
HRI/CEO.
F.

Verification and Validation

None.

G.

Exit Criteria
Approval of Training Requirements Plan.

H.

Work products
Training Requirements Projection
Training Requirements Plan

SCHEDULING THE TRAINING PROGRAMMES

A.

Purpose
To outline the steps involved in scheduling the training programmes at SOFTPRO.

B.

Scope
It covers all the training programmes conducted for SOFTPRO personnel. These include
short duration or long duration courses, workshops and seminars.

C.

Entry Criteria
Approved Training Requirements Plan,
Training Request
Management's decision to conduct a training programme.

D.

Responsibilities
Activity

E.

Responsibility

Schedule Training Programmes

TI

Obtain Nominations

TI

Organize Training resources

TI

Procedure
The training programs are organized on a monthly basis as per a pre-fixed schedule. The
updated Training Requirements Plan is used as the basis for working out the monthly
schedule.
Programs which are not part of the Requirements Plan but are requested on priority

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basis to meet project/ business needs, shall also be organized taking management
approval.
The following tasks are carried out:
Schedule Training Programmes

Schedules are usually prepared for the month and communicated before the first week of the
month.
Review the Training Requirements Plan with respect to the priorities, updating the same, if
necessary, and identify the programs to be scheduled.
Review the priority requests received, not included in the Requirements Plan, and obtains
HRI approval.
Assess the availability of the faculty, instructional resources, support facilities like
conference room, projection needs, software and hardware requirements etc. and ensure their
availability by the date to be scheduled.
Seek the support from HRI / management / functional heads, if necessary, while identifying
and mobilizing the resources from other organizational groups.
Prepare the schedule of the programs for the month clearly noting the category, dates,
timings and venue.
Obtain approval from HRI

Note:- First two steps are not applicable for the priority programs, not forming a part of the
Requirements Plan.
Obtain Nominations

Communicate the schedule to all PLs/Support Function In-charges to send in, formal
nominations. For certain programmes, management may decide the participants.
Review all the nominations to ensure:
that the nominee has the concurrence of the supervisor
the nominee meets the pre-requisites for the program, if any.
The nominee fulfils over all management policy guidelines with respect to imparting
training to the staff.
Finalize the nominations and inform all concerned

Organize the Training Resources

F.

Identify the faculty for the program scheduled.

Brief the faculty on the course requirements, hand-over the available instructional Resources,
and identify, if any instructional resources needs to be developed or updated.
Inform the SAI about requirements of software / hardware for the course to ensure their
availability for the program.
Ensure the availability of the venue with adequate space and projection equipment for the
program.
Verification and Validation
Review the Training Requirement Plan and the training schedules.
Review the training needs and the nominations finalized.
Review the resources requirement and their availability

G.

Exit Criteria

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Training Program is scheduled and resources organized.

H.

Work products
Training Schedule
Training Nominations

CONDUCTING TRAINING PROGRAMME

A.

Purpose
To describe procedures for conducting scheduled training programmes at SOFTPRO.

B.

Scope
It covers the activities involved in conducting the scheduled training programmes.

C.

Entry Criteria
Training programme is scheduled.

D.

Responsibilities
Activity

E.

Responsibility

Prepare for conducting the training

TI/ Faculty

Conduct the Training

TI/ Faculty

Evaluate Participants Performance

TI/ Faculty

Obtain Training feedback

TI

Provide Skills Update

TI

Procedure
Prepare for conducting the training
Preparing to conduct the training program shall involve following tasks

Understand the course objectives, skills to be acquired by participants.

Understand the participant's profile
Design the course structure to develop the material. Follow the
guidelines given.
Obtain the feedback from earlier trainings, if available.
Obtain available training material and review its suitability.
Prepare / enhance the training material, if required, based on the earlier
feedbacks, program needs and participant's profile.
Request for necessary replication of training material.
Request for any additional resources required.

Conduct the training

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The faculty shall ensure that the following activities are done while conducting training
Adhere to the timings and to the schedule.
Discuss the Course Details like tests/work sessions planned with all
participants.
Inform the TI about any additional requirements that arise during the
training program in advance.
Record the attendance of the participants everyday
Conduct the sessions professionally and enthusiastically. Remember that
the participants are working professionals.

Evaluate Participant's Performance

Conduct quizzes/ tests appropriately, depending on the course and training
Objective.
Evaluate the tests, share the performance of the participants with them and
clarify the doubts.
Hand over the evaluation to the TI

The answer scripts can be returned back to the participants unless the
training group specifically advises otherwise.

Obtain Training Feedback

Obtain participants' feedback on the training program. Obtains Faculty's feedback (where applicable)
Review the feedbacks received and discuss with faculty on specific issues, if
any, pointed out in the feedbacks.
Summarize the feedbacks received and the discussions, and the training groups
action points.
Submit the summary report to HRI and other management staff specified by
HRI, if any.

Provide Skills Update to HRPAI

F.

Analyze the performance evaluation of the participants given by the

faculty.
Identify the participants, whose performance is above the acceptable level
and inform HRPAI for skills update to the identified staff.

Verification and Validation

Review of training coverage to meet the requirement planned.
Evaluation of participant's performance.

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G.

Exit Criteria
Training has been completed.

H.

Work products
Attendance Sheet(s)
Training Programme Participants feedback form.
Summary of the Feedback.
Faculty feedback form.
Training Evaluation Sheet.
Training Material (Prepared/Updated).

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6. PERFORMACE APPRAISAL METHODS AND THE METHOD THE FOLLOWED IN

SOFTPRO SYSTEMS INC
Introduction to Performance Appraisal:
The purpose of the appraisal process is to inform employees of how they are doing and how they
can improve the quality of their performance.
Properly conducted performance appraisals are motivational and help employees grow and
develop.
Preparing for and conducting performance appraisals are among the most important things a
supervisor does
Why Appraisals Are Important
Recognize Accomplishments
Guiding progress
Improving performance
For organization to be successful, all of us need to be able to perform to the best of our abilities. We
can only do so if we have adequate feedback and clearly defined goals. Performance appraisals are
an essential tool for accomplishing these tasks. They offer a formal and official way to:
Recognize accomplishments:
Every company will define recognizable accomplishments differently, but its important to have a
reward system in place.
Guide employee progress:
Effective performance appraisals continue to refine the initial job description of what is expected of
employees as they learn new skills and gain experience.
Improving performance.
Whether making good performance better or correcting poor performance, performance appraisals
are an important step in identifying the situation and laying out the course for
Improvement.
Reviewing performance
Setting goals
Identifying problems
Discussing career advancement
Performance appraisals also provide the opportunity to:
Review how well employees have met job requirements and goals.
Set new performance goals, including additional responsibilities.
Identify areas in which performance needs to be improved.
Discuss career advancement, including training opportunities and

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Appraisal Benefits:
Appraisals offer the company:
Documentation
Employee development
Feedback
Legal protection
Motivation system
Appraisals offer employees:
Direction
Feedback
Input
Motivation
Performance appraisals offer many of the same benefits to employees, including:
Clear direction in their work regarding whats expected of them and of their role in the companys
overall goals
A regular outlet in which to receive feedback on performance and expectations
A regular time in which to give input on their job, their department, or the company
Motivation to perform their best because they know they will be recognized and/or rewarded
Appraisal Forms
Defining performance expectations
Describing measurement tools
Using a rating system
Covering specific examples
Setting measurable goals
In order to be most effective, performance appraisal forms need to be well constructed and easy to
understand. They should include the following items.
Well-defined performance expectations in areas that include adaptability, communication skills,
cooperation, dependability, initiative, innovation, job knowledge, organization, productivity, and
quality of work
Clearly described measurement tools
A concrete rating system
Space to write down specific job examples
A section for setting timely, measurable performance goals Measure Performance
Process of appraisal:

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Step1: Identifying criteria for assessment

Step 2: Preparing an appraisal report
Step 3: Carrying out an appraisal interview
Step 4: The assessors supervisor reviews the report
Step 5: Preparing and implementing an action plan
Step 6: Following up the progress of action plan
Appraisal Techniques:
a. Overall assessment:
In this technique the managers write in narrative from their judgments about the appraises.
b. Guided assessment:
In this method assessors are required to comment on a number of specified characteristics and
performance elements. This method is more precise but still rather vague
c. Grading:
This is also called as rating scale method where the managers are asked to select a level of
degree to which an individual in question displays the given characteristic
Behavioral incident methods:
This technique depends on employee behavior which depends upon the unsuccessful and successful
job behavior of the individual which is reported by the manager
Result oriented schemes:
This technique reviews performance against specific targets and standards of
agreed in advance by manager and subordinate together

performance

Measurement systems need to be:

Specific
Fair
Consistent
Clear
Useful
There are many ways to measure performance, but the main thing to remember is that the more
objective the measurement, the better.
Using specific rating scaleswhether numbers or termswhen assessing performance.
Using a system that is fair and flexible in assessing workplace situations
And performance.

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Being consistent in using the same measurement systems for all employees.
Making sure the measurement system is clear about what is being measured. Also make sure it is
understood by all employees.
Measurements need to be a useful tool that enables you to give a meaningful assessment as well as
enabling employees to know exactly how their performance measures up.
Measuring performance Systems can be:
Numerical
Textual
Management by
Objective (MBO)
Behavior oriented
One of the most common rating scales is numerical because numbers are perceived to be the most
objective. Its a good idea to also attach words describing what each number means, however, to
make sure the numbers are used consistently. For example, on a 1 to 5 scale, 1 could mean well
below standard, 3 means meets standards, and 5 means
well above standard.
Measurement terms can also be used as long as they are specific, meaningful, and distinct from one
another. A typical spread goes from unsatisfactory through satisfactory to outstanding.
Management by Objectives (MBO) is a system of ratings that measure how well an employee
reached specific goals or objectives, such as producing x number of pieces per shift or making x
number of calls per hour.
Systems can also measure effort or results with behaviors you can observe and track, such as
attendance or initiative.
Set Goals
Based on job requirements
Realistic
Measurable
Observable
Challenging
Prioritized
Since goal-setting is central to an effective performance appraisal, its crucial to get it right.
Performance goals should be set with employees and meet the following criteria.
Goals must be based on actual job requirements. Use the job description when setting performance
goals.
Goals must be realistic and achievableotherwise they will frustrate rather than motivate
employees. They should account for changing conditions and priorities.
They must also be measurable, which means that they are specific and practical.
Goals need to be observable in any number of areas, including time spent or results produced.
Goals must remain challenging. They need to evolve with time. Once previous standards are met,
raise the bar.
Goals must be clearly prioritized so that employees know which are most important to you and the
organization.

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Employee Input
Employees take an active role
Setting goals
Designing action plans
Identifying strengths and weaknesses
Employees participate in the performance appraisal meeting
For the performance appraisal process to be most effective, you need to get your employees involved
from the beginning.
Employees must be encourage to take an active role in
Setting their performance goals
Designing the action plans to help them achieve their goals
Identifying their professional strengths and weaknesses, and giving their input about how to
improve these identified areas of their performance
Employees also need to be very involved in the performance appraisal meeting from preparation
through the final report. Employees are much more fully invested in their performance when they
play a large part in designing and guiding
Preparation for performance appraisals involves both the employer and employees. Employees need
to prepare for their performance appraisal meeting by:
Reviewing their performance during the evaluation period as objectively as possible, considering
their achievements and how well they have met their goals.
Thinking about new performance goals for the next evaluation period.
Laying out agenda
Talking about money
Encourage input
Give good news first
Ask trainees how they typically start an appraisal meeting and put
Employees at ease, encouraging involvement. Have two volunteers role-play
The opening of an appraisal meeting.
Performance appraisal technique followed in Softpro Systems Inc:
The performance appraisal technique which is followed in Softpro systems is the Grading method
the managers are asked to select a level of degree to which an individual in question displays the
given characteristic

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7. PERFORMANCE APPRAISAL FORM

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8. MOTIVATIONAL THEORIES
Various motivational theories are
1.
2.
3.
4.
5.
6.

Lockes goal setting theory of motivation

Vrooms theory
McClelland theory
Hertzberg theory
Maslows theory
Theory X and Theory Y

Lockes Goal setting theory

Goal-setting theory states that individuals make calculated decisions about their desired
goals.
Once individuals determine the goals they intend to achieve these goals and intentions direct
and motivate efforts to attain them.
Thus, setting goals affects behavior of the individuals and their job-related performance.
As people work on a task they compare their current performance with the goal. Selfevaluations of progress strengthen self-efficacy and sustain motivation.
Goals themselves are not reinforcing. The motivation to work harder comes from the
dissatisfaction with discrepancies between what was achieved and what was originally hoped
for. The discrepancies motivate people to work harder next time.
Effective goal setting requires that people set a long-term goal, break it into short-term,
attainable sub goals, monitor progress and assess capabilities, adjust the strategy and goal as
needed, and set a new goal when the present one is attained.
This multi-step plan is a key to promoting healthier human functioning, higher motivation
and perceived self-efficacy, and self-regulated learning and performance across the lifespan.

Vrooms Theory:

Examines motivation from the perspective of why people choose to follow a particular
course of action. There are three variables which he calls Valence, Expectancy and
Instrumentality.
This theory of motivation is not about self-interest in rewards but about the associations
people make towards expected outcomes and the contribution they feel they can make
towards those outcomes.
Valence is the importance that the individual places upon the expected outcome of a
situation.
Expectancy is the belief that output from the individual and the success of the situation are
linked, e.g. if I work harder then this will be better.
Instrumentality is the belief that the success of the situation is linked to the expected outcome
of the situation, e.g. it's gone really well, so I'd expect praise

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McClelland theory:
Each of us have three fundamental needs that exist in different balances. These affect both how
we are motivated and how we attempt to motivate others.
N-ach: Need for achievement:
Seeks achievement, attainment of goals and advancement. Strong need for feedback, sense of
accomplishment and progress
N-affil: Need for affiliation:
Need for friendships, interaction and to be liked.
N-pow: Need for power
Strong need to lead and to increase personal status and prestige.
Achievement motivated people set goals that are balanced between challenge and realism.
They feel they can influence goals where they feel that they can influence the outcome.
An achievement motivated person sees the achievement of a goal as the reward; it is more
satisfying than praise or monetary reward.

Money is the feedback. This idea of feedback is essential to the achievement motivated
person. Money is seen as good only in that it is seen as a measure of their achievement.

Feedback needs to be informative to enable them to use it to improve their achievement.

In addition there is an element of competition - it is important for the individual to be able to

compare their achievement against others.
The key differentiator between this group and others is that achievement motivated people
frequently spend time thinking how things could be improved

Hertzberg Theory:

Theory of motivation based on the idea that some factors motivate and some demotivate.
Hygiene factors are basic and include interpersonal relationships, work conditions, salary,
status, promotion, freedom of speech etc
Motivation factors include things such as challenging work, achievement, opportunity and
growth, self-learning, and crucially work itself.
Hygiene factors caused dissatisfaction by their absence, but did not cause motivation by their
increased presence.

Maslow Theory:

Some needs are very fundamental, like warmth or food, and some are less fundamental like
the need for a beautiful environment

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The crucial point is that you will always experience needs; furthermore, the needs
experienced are dependent on those already fulfilled - hence hierarchy of needs

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Theory X and Theory Y

Douglas Mc Gregor an American social physiologist proposed this famous Theory X & Y in in
famous book The Human side of Enterprise, he said that theory Y was the preferable model and
management method
Theory X

Theory Y

Humans inherently dislike working and will try

to avoid it

People view work as being as natural

as play and rest. Humans expend the
same amount of physical ad mental
effort in their work as in their private
lives

Because people dislike work, they have to be

coerced or controlled by management and
threatened so they work hard enough

Provided people are motivated, they

will be self directing to the aims of the
organizattion.Control and punishment
are not the only mechanisms to let
people perform

Average employees want to be directed

Job satisfaction is key to engaging

employees and ensuring their
commitment

people dont like responsibility

People learn to accept responsibilty

and seek responsibiltiy,average
humans under proper conditions, will
not only accept, but even naturally
seek responsibilty

Average humans are clear and unambiguous

and want to feel secure at work

People are imaginative and creative,

Their ingenuity should be used to
solve problems at work

Shop floor, mass manufacturing, production

workers

Professional services, knowledge

workeres,managers and professionals

Large scale efficient operations

Management of professionals,
participative complex problem solving

Authoritarian, hard management

Participative, Soft management

Assumptions

Application

Conductive to
Management
style

Lockes goal setting theory of motivation is followed in softpro systems Inc

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9. DETERMINATION OF WAGES AND SALARIES,COMPENSATION IN SOTPRO

SYSTEMS INC
Key Terms in Compensation management:
commission

A commission is compensation based on a percentage of sales in units

or dollars.

competency-based
pay

A combination of skill-based, knowledge-based, and credential-based pay.

cost-of-living
adjustment (COLA)

Wage increase or decrease pegged to the rise and fall in the cost-of-living
index

differential piece rate

(Taylor plan)

A piecework plan that pays on the basis of two separate piecework rates: one
for those who produce below or up to standard and another for those who
produce above

feedback pay

Based on aligning pay with strategic business objectives and then

establishing a direct connection between the job

gain sharing plans

Companywide group incentive plans that, through a financial formula for

distributing organization-wide gains,

guaranteed annual
wage (GAW)

A plan in which the employer guarantees the employee a certain number of

weeks of work at a certain wage after the worker has passed a probation
period

knowledge-based
pay

Knowledge-based pay rewards employees for acquiring additional knowledge

both within the current job and in new job categories.

Merit pay

Individual pay increases based on the rated performance of the individual

employee in a previous time period.

open system

A pay system where pay ranges and even an individual's pay are open to the
public and fellow employees.

pay compression

A situation in which employees perceive too narrow a difference between their

own pay and that of their

production bonus
system

An individual incentive system that pays an employee an hourly rate plus a

bonus when the employee exceeds the standard

Profit sharing plans

Profit-sharing plans distribute a fixed percentage of total organizational profit

to employees in the form of cash deferred bonus amounts.

Salary

Pay calculated at an annual or monthly rate rather than hourly

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secret system

A compensation system where pay is regarded as privileged information

known only to the employee, the supervisor, and staff employees such as
HRM and payroll

severance pay

An income bridge from employment to unemployment and back to

employment, provided by some employers.

skill-based pay

An alternative to job-based pay that sets pay levels on the basis of how many
skills employees have or how many jobs they can do.

spot gain sharing

A gain sharing system that focuses on a specific problem in a specific

department rather than on performance improvements for the whole
organization

standard-hour plan

An individual incentive plan that sets wages on the basis of completion of the
job or task in some expected period of time.

straight piecework

An individual incentive plan where pay fluctuates on the basis of units of

production per time period.

suggestion system

A formal method of obtaining employees' advice for improvement in

organizational effectiveness; it includes some kind of reward based on the
successful application of the idea.

supplementary
unemployment
benefits (SUB)

The employer adds to unemployment compensation payments to help the

employee achieve income security

total compensation
approach

Total compensation is made up of base pay, variable pay, and indirect pay
(benefits).

variable pay

Any compensation plan that emphasizes a share focus on organizational

success, broadens the opportunities for incentives to nontraditional groups
(such as no executives or non-managers), and operates outside the base pay
increase system

Wage

Pay calculated at an hourly rate

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Way how wages and salaries are determined in Softpro Systems Inc
1. Determination of individual pay
a. pay differentials are based on:
Individual differences in experience, skills, performance
Expectations that seniority and higher performance deserve higher pay
B. reasons for choosing to pay employees at different rates for doing the same job include:
Pay differentials allow firms to recognize that different employees performing the same job make
substantially different contributions to meeting organizational goals
Differentials allow employers to communicate a changed emphasis on important job roles, skills,
knowledge, etc
Differentials provide organizations with an important tool for emphasizing norms of the enterprise
without having employees change jobs
without differentials, the pay system violates the internal equity norms of most employees,
reducing employee satisfaction with pay and making attraction and retention of employees more
difficult
pay differentials allow firms to recognize market changes between jobs in the same grade without
requiring a major overhaul of the whole compensation system
2. Methods of Payment
a. flat rate
Single rate in unionized firms (treating everyone equally)
b. recognizing individual differences
assumes workers are not interchangeable/equally productive
C. payment for time worked
i.

wage (calculated on hourly basis)

ii.

Salary (calculated on monthly/annual basis)

Pay adjusted upwards through four types of increases:

Softpro Systems Inc

General across-the-board increase

Merit increase
Cost-of-living-adjustment (COLA)
Seniority
D.variable pay: incentive compensation
based on shared organizational success
Available to nontraditional groups & operates outside base pay
Plans need to be based on clear goals, unambiguous measures
Key design factors need to include:
Management support
Employee acceptance
Supportive organizational culture (teamwork, trust)
timing (minimal risk of economic downturn)
Total compensation approach includes:
Variable pay puts a percentage of employee's paycheck at risk
Pay rate will not rise above lower base pay if goals aren't met
Flexibility can be built into the system of total compensation
Base pay: matched closely with the competition
Variable pay: methods like gain sharing, lump-sum bonuses
Indirect pay: like benefits
E. merit incentives
Study shows merit needs to be 6-7%; less (unmotivated) more (demotivate)
In practice merit pay systems fail because:
Employees fail to make the connection between pay & performance
Secrecy of reward is perceived by other employees as inequity
Size of merit award has little effect on performance
F. individual incentives
Straight piecework
Differential piece rate
Standard hour plan
Production bonus system

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Softpro Systems Inc

Straight sales commission
Variation
(Salary plus commission)
(Salary plus draw)
G. team/group incentives (used when :)
There is a strong dependence among individuals in a group
It is hard to determine which individual is responsible for the level of Achievement because of
interrelated work
The organization wishes to reinforce teamwork, group planning and problem Solving
h. organization-wide incentives
i.

suggestion systems

ii.

gain sharing incentive plan

Scanlon plan
Rucker plan
ImproShare
Winsharing

iii.

spot gain sharing

iv.

profit-sharing incentive plan

Lincoln Electric plan
Cash & deferred bonuses
I. ownership
Defined contribution plans vs. defined benefits

J. people-based pay (alternative to job-based pay)

i. skill-based pay (breadth of skills)
ii. knowledge-based pay (depth of skills)
iii. credential-based pay (qualification dependent)
iv. Feedback pay (fulfill strategic goals research bonus ex. NDSU)
v. competency-based pay (skills + knowledge + traits + motives)

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Softpro Systems Inc

K. executive pay
i. executive salaries
ii. Bonuses
iii. Stock options
iv. Executive perquisites
Executive pay package dependent on comparative performance
Pay design has five underlying principles:
i.

compensation committees consist of stockholders & directors who link CEO

Compensation to shareholder returns

ii.

variable performance-based pay is emphasized over guarantees (bonuses)

iii.

CEOs are encouraged to invest in company stock (stock options)

iv. Performance yardsticks are linked to actual key productivity indices or to Competition
v. CEOs are held responsible for cost of capital, forcing them to look for
Vehicles of growth rather than amassing wealth
3. Issues in Compensation Administration
A. pay secrecy or openness
B. pay security
guaranteed annual wage (GAW)
Supplementary unemployment benefits (SUB)
COLAs
Severance pay
c. pay compression
Solutions for pay compression
re-examining how many entry-level people are needed
reassessing recruitment itself
focusing on the job evaluation process emphasizing performance
basing all salaries on longevity
giving first line supervisors the authority to recommend equity adjustments for victims of pay
compression

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Softpro Systems Inc

Bibliography:
1. www.softprosystems.com
2. eportal.softprosys.com
3. www.google.com
4. Softpro systems Inc, Hitech city, Hyderabad
5. Class Notes and slides
6. Natwar Sharma, HR Head-Softpro systems
7. Sandhya Rani, HR-Executive- Softpro Systems
8. Kiran, Asst Manager RMG-Softpro Systems
9. www.sugar-crm-softprosys.com
10. www.netmba.com

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