ARUNODAYA UNIVERSITY

“A Study on Operations Management at HCL

Infosystems Ltd”

Submitted by

AMIT SHANTARAM DHAMALE

REG. NO: 25A121770827

IN PARTIAL FULLFILLMENT FOR THE AWARD OF THE DEGREE

of

NAME OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION (MBA)
OPERATIONS AND PRODUCTION (DUAL SPECIALISATION)

BRANCH OF STUDY
𝗢𝗣𝗘𝗥𝗔𝗧𝗜𝗢𝗡𝗦 𝗔𝗡𝗗 𝗣𝗥𝗢𝗗𝗨𝗖𝗧𝗜𝗢𝗡 (𝗗𝗨𝗔𝗟 𝗦𝗣𝗘𝗖𝗜𝗔𝗟𝗜𝗦𝗔𝗧𝗜𝗢𝗡)

ARUNODAYA UNIVERITY
ITANAGAR, A.P- 791110

MONTH & YEAR

06-2025
 ARUNODAYA UNIVERSITY

A Study on Operations Management at HCL

Infosystems Ltd

A Project Report Submitted In Partial Fulfillment of the Degree of MBA IN OPERATIONS &
PRODUCTION Degree in AU 2023-2025

By

AMIT SHANTARAM DHAMALE

REG. NO: 25A121770827

DEPARTMENT OF MANAGEMENT, AU, ITANAGAR, AP7911100

A Study on Operations Management at HCL
Infosystems Ltd
 Submitted to

ARUNODAYA UNIVERSITY

In partial fulfillment of the requirement for the award of -----------------------

Submitted by

AMIT SHANTARAM DHAMALE

REG. NO: 25A121770827

Under the Guidance of

AP - 7911100
 ARUNODAYA UNIVERSITY
ITANAGAR, AP- 7911100

DEPARTMENT OF MANAGEMENT

Date:

PROJECT CERTIFICATE

This is to certify that AMIT SHANTARAM DHAMALE

bearing the REG. NO: 25A121770827has successfully completed the

project work on A Study
on Operations Management at
HCL Infosystems Ltd”

The project report is submitted to the Arunodaya University

In partial fulfillment of the requirements for the award of during 2024-2025.

Department of Management ,
Arunodaya University,

Itanagar, A.P- 7911100

 ARUNODAYA UNIVERSITY
ITANAGAR, AP- 7911100

DEPARTMENT OF MANAGEMENT

APPLICATION FOR OBTAINING APPROVAL FOR TITLE OF THE

PROJECT AND WILLINGNESS OF THE GUIDE

NAME OF THE COURSE WITH

SPECIALISATION : MBA in Operations & Production (Dual)

ENROLLMENT NO : 25A121770827

NAME AND ADDRESS OF THE CANDIDATE : Amit Shantaram Dhamale,

J P And VP Landmark, Flat No.201, Next to
Vichumbe Police Station, Vichumbe, New Panvel
- 410206

CONTACT MOBILE NO : +91 8369979430

TITLE OF THE PROJECT (In Block Letters) : Study on operation management at

HCL management system

SIGNATURE OF THE CANDIDATE

 PROJECT REPORT

“A STUDY ON OPERATION MANAGEMENT”

At
HCL INFOSYSTEMS LTD.

Table of Contents
Acknowledgment................................................................................................................5
1. INTRODUCTION......................................................................................................7
1.1. HCL an overview....................................................................................................7
1.2. HCL DNA:.............................................................................................................12
1.3. Employer spotlight:..............................................................................................13
HCL in
India:...................................................................................................................13
1.4. About HCL............................................................................................................14
1.6. VISION STATEMENT.........................................................................................15
1.7. MISSION STATEMENT.....................................................................................16
1.8. QUALITY POLICY STATEMENT....................................................................16
1.9.
1.9. OUR OBJECTIVE...............................................................................................16
OUR MANAGEMENT
OBJECTIVE...........................................................................16 OUR PEOPLE
OBJECTIVE.........................................................................................16
1.10. CORE VALUES................................................................................................16
1.11. A SNAPSHOT OF HCL Infosystems Ltd.......................................................17
FRONTLINE DIVISION................................................................................................18
2. Literature Review.....................................................................................................19
Four Types of Focus Dimensions Used in Operations Management...........................20

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 Finance...........................................................................................................................20
Customers......................................................................................................................20
Internal Processes..........................................................................................................21
Learning and Innovation................................................................................................21
2.1. An Introduction of Operation Management......................................................45
2.1.1. What is Operation management?....................................................................45
2.1.2. Why is it important?.........................................................................................45
2.1.3. Critical factors for success................................................................................46
2.1.4. Who is involved?...............................................................................................46
2.1.5. Principles............................................................................................................46
2.1.6. Managing for results.........................................................................................47
2.2. Levels of Operation management........................................................................47
2.3. Value for money....................................................................................................48
2.4. Measures and metrics...........................................................................................49
2.4.1. Business processes can be distinguished by:...................................................49
2.5. Processes................................................................................................................
50
2.6. Objectives of a Operation Management
System................................................54
2.7. Overall Goal and Focus of Operation
Management.........................................55
2.8. Operation Improvement of the Organization or a Subsystem is an Integrated
Process...............................................................................................................................55
2.9. Ongoing Activities of Operation
Management...................................................55
2.10. Basic Steps.........................................................................................................56
2.11. Operation management mainly include following things:............................58
2.11.1. Planning..........................................................................................................59
2.11.2. Monitoring.....................................................................................................60
2.11.3. Developing Employees.................................................................................60
2.11.4. Rating.............................................................................................................61
2.11.5. Rewarding......................................................................................................61
2.12. Managing Operation Effectively......................................................................62
2.13. Features of a Good Operation Management System.....................................62

2
2.13.1. Competency-Based........................................................................................63
2.13.2. A Continuous Process....................................................................................64
2.13.3. Operation planning.......................................................................................65
2.13.4. Continuous coaching and development.......................................................65
2.13.5. Interim review................................................................................................66
2.13.6. Operation appraisal......................................................................................67
2.13.7. To maintain an open system.........................................................................67
3. PROJECT.................................................................................................................69
3.1. Objective of the Project – Introduction of the
Problem....................................69
3.1.1. Secondary
objective..........................................................................................69 3.2.
Significance of the
Project....................................................................................69
3.3. Definition - A Theoretical Perspective................................................................70
3.4. Preparation and Planning for Operation management....................................71
3.5. Operation Management and
Development........................................................71
3.6. Operation Assessment and Development Plan In HCL INFOSYSTEMS LTD. 72
3.6.1. Prior to filling the form please read carefully Instructions to the Appraiser
72
3.6.2. Operation appraisal guidelines........................................................................72
3.1.1.1.
Appraisal procedure...................................................................72
3.1.1.2. TheFormAndItsContents..........................................73
4. RESEARCH METHODOLOGY............................................................................76
Introduction.............................................................................................77
What approach should I take - qualitative or quantitative?......................77
Can my dissertation be entirely literature-based?...................................79
What is case study research?...................................................................80
What's an empirical study?......................................................................80
What is secondary analysis?....................................................................81
Where do I find existing research data?...................................................81

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 Collecting you own data - primary research.............................................81
Will my research be inductive or deductive?...........................................85
What's all this about research design?.....................................................85
Summary.................................................................................................86

Key Questions..........................................................................................87
4.1. Research Design....................................................................................................94
4.2. Data Collection Method.......................................................................................95
4.3. Analysis of PMS – Processes & Components.....................................................95
4.3.1. Planning.............................................................................................................95
4.3.2. Monitoring.........................................................................................................96
4.3.3. Developing Employees......................................................................................97
4.3.4. Rating.................................................................................................................98
4.3.5. Action Based Operation...................................................................................100
4.3.6. Analysis............................................................................................................100
4.3.7. Effectiveness......................................................................................................101
5. RECOMMENDATIONS......................................................................................101
5.1. Recommendations...............................................................................................102
6. CONCLUSION.......................................................................................................103

Acknowledgment

The project of this nature is arduous task stretching over a period of time, completing a
project like this one takes the effort and cooperation of many people.

Although this project report is being brought in my name, it bears an imprint of guidance
and cooperation of many individuals. Several persons with whom I integrated have
contributed significantly to the successful completion of the project study. In the successful

4
& trouble free completion of my final term project titled “OPERATION
MANAGEMENT”, I am graceful to Institute of Management and Technology, Ghaziabad
for helping us towards the completion of the project.

I extend my deepest and sincere thanks to my project guide, Mr. Ram Krishn and other HR
Executives HCL Info systems Ltd. for the unflinching support and guidance throughout
the project

I would also like to thank all the executives who shared their precious time and experience
with me.

Last but not the least, I extend my sincere thanks to all the staff members of HCL
Infosystems Ltd. for their cooperation.

Executive summary
Operation management is the process of bringing people in to the organization making very
sure that new entrants have the potential and willingness to contribute to organizational
success. In today’s scenario without effective Operation management the organization will
meet the considerable resistance when introducing change. Without organizational change
and development survival become very uncertain so in order to make the industry survive
it is very important to adopt the different Operation management practices in all
organizations so as to understand the employees or workers need and satisfy them. There
should be effective people utilization in every industry. All these practices in an
organization will make the organization to grow at a faster speed. The study will be
empirical and primary research will be done by using the questionnaire which will
administer to sales, service and support function employee. The date will be collected and
assimilated by using statistical tool like median and date will be analyzed by using Bar
Chart. The analysis will be to find the effectiveness of current PMS.

5
 1. INTRODUCTION

1.1. HCL an overview

Born in 1976, HCL has a 3-decade rich history of inventions and innovations. In 1978,
HCL developed the first indigenous microcomputer at the same time as Apple and 3 years
before IBM's PC. During this period, India was a black box to the world and the world was
a black box to India. This microcomputer virtually gave birth to the Indian computer
industry. The 80's saw HCL developing know-how in many other technologies. HCL's
indepth knowledge of Unix led to the development of a fine grained multi-processor Unix
in 1988, three years ahead of Sun and HP.

HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the
software services arena. During the last eight years, HCL has strengthened its processes
and applied its know-how, developed over 30 years into multiple practices - semiconductor,
operating systems, automobile, avionics, bio-medical engine HCL's R&D was spun off as
HCL Technologies in 1997 to mark their advent into the software services arena. During
the last eight years, HCL has strengthened its processes and applied its know-how,
developed over 30 years into multiple practices - semi-conductor, operating systems,
automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many
more.

Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest
BPO operation, and manages the network for Asia's largest stock exchange network apart
from designing zero visibility landing systems to land the world's most popular airplane.

6
 .

1976 Hindustan Computers Limited (HCL) born.

1977 Distribution alliance formed with Toshiba for copiers.

1978 HCL successfully ships in-house designed microcomputer at the same time as
Apple. The Indian computer industry is born.

1980 HCL introduces bit sliced, 16-bit processor based microcomputer.

1983 Indigenously develops an RDBMS, a Networking OS a Client Server

architecture, at the same time as global IT peers.

1986 HCL becomes the largest IT Company in India.

1988 HCL introduces fine-grained multi-processor Unix-3 years ahead of “Sun” and “HP”.

7
1990 Data Quest marks HCL No.1 amongst top ten computer giants.

1991 HCL Ltd. and Hewlett Packard, USA, partner to form HCL-Hewlett Packard Ltd.
JV develops multi-processor Unix for HP-heralds HCL’s entry into contract

1994 Distribution alliances formed with Ericsson Switches and Nokia Cell phones.

1997 HCL Info systems are formed. HCL's R&D spun-off as HCL Technologies- marks
advent into software services. JV with Perot Systems, stake divested in 2003.

1999 Initial Public Offering made by HCL Technologies Ltd.Formation of Global

Board of Directors.

2000 Large contracts won from Bankers Trust, KLA Tenor, Cisco, GTech, NEC among
others.

2001 JV with Deutsche Bank- DSL software formed. HCL BPO Incorporated.
Acquired British Telecom Apollo’s contact center in Belfast, Northern Ireland. HCL Info
systems become largest hardware company.

2002 Strong pursuit of nonlinear strategy to widen services portfolio; several JVs and
alliances formed. Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500
company. Infrastructure services division launched to address emerging global needs.
Software businesses of HCL Info systems and HCL Technologies merged.

2003 Largest BPO order ever outsourced to an Indian BPO firm, won from British
Telecom. Landmark deals signed with Airbus and AMD. HCL manpower crosses the
20,000 mark..

2004 Accorded leader status by Meta Group in Offshore Outsourcing. HCL is India’s
No.1 PC 4th year in a row.

8
2005

• HCL signs Software Development Agreement with Boeing for the 787 Dream liner
program.
• JV with NEC, Japan

• HCL sets up first Power PC architecture design center outside of IBM.

• Completes buy-out of JVs with Deutsche Bank and British Telecom Apollo Contact
Center.
• HCL integrates all group employees under HCL in domain.
• Sets up a dedicated Offshore Design Center for leading Tier-1 Aerospace supplier,
Hamilton Sundstrand.
• HCL Info systems launches sub Rs.10, 000 PC. Joins hands with AMD, Microsoft
to bridge the digital divide.

2006

• 75,000+ machines produced in a single month.

• HCL Info systems in partnership with Toshiba expand its retail presence in India
by unveiling 'shop Toshiba'.

• HCL Info systems & Nokia announce a long-term distribution strategy.

• HCL the leader in Desktops PCs unveils India's first segment specific range of
notebooks brand - 'HCL Laptops'.
• HCL Info systems showcase Computer Solutions for the Rural Markets in India.

• HCL Support wins the DQ Channels-2006 GOLD Award for Best After Sales
Service on a nationwide customer satisfaction survey conducted by IDC.
• HCL AND ZEE - Dish TV team up to take DTH TV to its next level of growth in
India

9
 • HCL Info systems First in India to Launch the New Generation of High Operation
Server Platforms Powered by Intel Dual - Core Xenon 5000 Processor.
• HCL Forms a Strategic Partnership with APPLE to provide Sales & Service
Support for iPods in India.

HCL is one of the leading global Technology and IT enterprises with annual revenues of
US$ 4 billion. The HCL Enterprise comprises two companies listed in India, HCL
Technologies (http://www.hcltech.com/) and HCL Info systems
(http://www.hclinfosystems.in/)

The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups.
Its range of offerings span R&D and Technology Services, Enterprise and Applications
Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems
Integration and Distribution of Technology and Telecom products in India. The HCL team
comprises 45,000 professionals of diverse nationalities, operating across 17 countries
including 360 points of presence in India. HCL has global partnerships with several leading
Fortune 1000 firms, including several IT and Technology major.

10
1.2. HCL DNA:

Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous
microcomputer in 1978, at the same time as Apple. Since then, HCL has had a 3-decade
rich history of inventions and innovations. Entrepreneur is the term that best describes the
HCL employees. The TIME magazine has referred to HCL as an "intellectual clean room
where its employees could imagine endless possibilities."

Ever since HCL entered into an alliance in 1970s, partnerships and HCL have been
inseparable. Bonds have been forged with partners to co-create value. Strong inorganic
growth is a testimony to the spirit of partnerships.

This entrepreneurial and win-win relationship driven culture continues to guide HCL in all
its endeavors.

11
1.3. Employer spotlight:

HCL is one of India’s leading global IT Services companies, providing software-led IT

solutions, remote infrastructure management services and BPO. Having made a foray into
the global IT landscape in 1999 after its IPO, focuses on Transformational Outsourcing,
working with clients in areas that impact and re-define the core of their business. The
company leverages an extensive global offshore infrastructure and its global network of
offices in 16 countries to deliver solutions across select verticals including Financial
Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors,
Telecom and MPE (Media Publishing & Entertainment)

HCL in India:
HCL has evolved from a dream of eight youngsters in 1977 to the country's top IT group
today. Our well-balanced portfolio of turnkey solutions across equipments, software and

12
 services make our offerings end-to-end for all IT needs of the Indian customers. Our
recognitions speak of our dominant position in India. V&D100 2005, No. 1 Security
service provider in India by DQ Annual 2004, No.1 Infra service provider by CMP 2005,
and No.1 PC Brand recognize us as No.1 Network Management service provider in India
for the last 5 years in India.
HCL is known to be the harbinger of technology in the country. Our partnerships with
technology leaders like JDA, Oracle, SAP, KANA, Intel, and Microsoft go back to the time
when India was being recognized as a growing and strategic market. Along with global
capability, HCL has leveraged such relationships to create value for Indian customers - the
comprehensive integrated market surveillance solution for SEBI being one such example.
Our services are backed by an extensive direct support infrastructure spread across 170
locations nationwide, which offer 24-x7 support offering for critical sites. With more than
70 SAP implementations till date, HCL has been rendering service to key Indian players in
Banking, Retail and Government.
We are committed to the Indian Market and will continue to invest more to further enrich
our end-to end IT offerings for this market. Our flexible engagement models, rich heritage
of technology solutions and over 29 years of leadership across service areas give us a
strategic advantage to meet the nation's IT needs.
1.4. About HCL

HCL Enterprise is a leading Global Technology and IT enterprise that comprises two
companies listed in India - HCL Technologies & HCL Info systems. The 3-decade-old
enterprise, founded in 1976, is one of India’s original IT garage start-ups. Its range of
offerings span Product Engineering, Technology and Application Services, BPO,
Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT
products. The HCL team comprises approximately 42,000 professionals of diverse
nationalities, who operate from 16 countries including 300 points of presence in India.
HCL has global partnerships with several leading Fortune 1000 firms, including leading
IT and Technology firms. HCL Technologies is one of India’s leading global IT Services
companies, providing software-led IT solutions, remote infrastructure management
services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO,

13
 HCL Technologies focuses on Transformational Outsourcing, working with clients in areas
that impact and re-define the core of their business. The company leverages an extensive
global offshore infrastructure and its global network of offices in 16 countries to deliver
solutions across select verticals including Financial Services, Retail & Consumer, Life
Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing
& Entertainment). For the quarter ending 31st December 2006, HCL Technologies, along
with its subsidiaries had revenue (TTM) of US $ 1.155 billion (Rs.
5220 crore) and employed 38,317 professionals.

1.5. Strong SAP Capabilities:

HCL Technologies is one of the largest global SAP service providers in India, providing a
spectrum of SAP services. HCL Technologies has developed strong capabilities on the SAP
Net Weaver platform and drives market demand in the SAP world through unique market
propositions and upgrade offerings to my SAP ERP. HCL is a value added reseller and
services partner across multiple geographies. With a track record of successful engagement
in this space, HCL has received prestigious awards from SAP - distinguished partner award
2005, best my SAP HCM implementation award 2005, Sap’s "outstanding partner” award
for implementation/upgrade project 2004, and more. Forrester has lauded HCL
Technologies is one of a number of firms in this space and is a viable candidate for
multinational firms that are contemplating global outsourcing and are interested in SAP
implementation and maintenance services.

1.6. VISION STATEMENT

Together we create enterprises of tomorrow.

14
1.7.MISSION STATEMENT

To provide world class information technology solution and services to enable our customers
to serve their customer better’.

1.8.QUALITY POLICY STATEMENT

“We will deliver defect-free products, service and solutions to meet the requirements of our
external and internal customers the fist time, every time.’

1.9.OUR OBJECTIVE

OUR MANAGEMENT OBJECTIVE

To fuel initiative and foster active by allowing individuals freedom of action and innovation
in attaining defined objectives.

OUR PEOPLE OBJECTIVE

To help HCL Infosystem people share in the company’s success, which they make possible
to provide job security based on their Operation; to recognize their individual achievements
and to help them gain a sense of satisfaction and accomplishment from their work.

1.10. CORE VALUES

• We shall uphold the dignity of individual We shall honor all commitments.

• We shall be committed to Quality. Innovation and growth in every endeavor.

15
• We shall be responsible Corporate Citizens.

1.11. A SNAPSHOT OF HCL Infosystems Ltd.

• India’s leading IT company

HCL In say is India’s largest information technology (IT), transnational conglomerate.
With its-depth expertise in developing solution spanning diverse technologies.

• HCL Insys aims to propel its course on to the high growth Path total Technology
Integration. Towards capturing two Ends of market spectrum - enterprise solution and
PCs.

HCL Insys has made significant strategic infrastructure investments in the professional
services Organization (PSO), the Support Services Organization (SSO) and its
manufacturing plant at Pondicherry. Thus it is the manufacturer of general purpose
computer and provides services in the areas of IT Consultancy, system integration,
Software Development and Training.

• It makes true technology integration possible across multiple platforms, this was
possible because of the in-depth expertise in developing state-of-the-art indigenous
hardware solution; thorough understanding of networking technology.

• As a part of this plan to market more and more technology integration services
worldwide, HCL in sys has already taken a step in the direction of export by localizing
its service comprising software, hardware design and development, value added
support service networking abs repair services and overseas integration projects to meet
the demands of the global clients.

Company’s continuous and consistent anticipation of the requirement of the IT Industry

has led it to undertake the acquisition of the business of HCL Info solutions limited (now

16
known as Frontline Division), HCL Peripherals Limited (now known the acquisition of
Customer Support Organization (CSO) activities of HCL Office Automation Limited

(now know as office Automation Division)

FRONTLINE DIVISION

Frontline Division, formerly HCL Info solution Ltd. (HCL Insol) started with the aim of
increasing market penetration by handing segments not covered by HCL Insys and creating
new niches. Today it specializes.

17
2. Literature Review

Operations management is an area of management concerned with overseeing,

designing, and controlling the process of production and redesigning business operations
in the production of goods or services.

Four Types of Focus Dimensions Used in Operations Management

Every business operates along four basic focus dimensions: finance, customers, internal
processes, and learning and innovation. These theoretical divisions of operations
management come from the research of Robert S. Kaplan and David P. Norton. The
dimensions aren’t mutually exclusive. For example, employees who become more
competent through learning can improve the functioning of internal processes, according
to “Management Principles: A Contemporary Edition for Africa,” by P. J. Smit.

Finance

The heart of the financial dimension for most businesses is profit, though short-term
financial goals might entail sacrificing current profits to increase future capacity. For
example, a company might decide to reinvest all its profits into new and better machinery
to increase production capacity and efficiency, but the ultimate goal remains greater profit.
Managers must control the flow of money through the organization to ensure short-term
goals align with long-term goals.

Customers

Customers are the foundation of your business. Without the flow of their money through
your organization, everything grinds to a halt. Managers aim to maximize the flow of
customer money, but that doesn’t always mean securing as many customers as possible. A
boutique hotel, for example, might focus on serving relatively few high-paying customers,
while a chain hotel focuses on the wide swath of people who are unwilling to pay high

18
prices. Though each business targets customers who have different needs, meeting those
needs is equally vital to their profitability.

Internal Processes

Optimization of internal processes leads to greater profitability and customer satisfaction.

For example, a manager might focus on developing efficient communications within an
organization to ensure orders travel quickly from the customer service department to the
production line. The manager further expedites the order by ensuring the production
department syncs with the shipping department to get the order to the customer quickly.
Fine-tuning the process to make it maximally efficient keeps operating costs low and
pleases customers, leading to greater profits.

Learning and Innovation

Technology progresses and so must businesses. An invention that improves a

manufacturing process, for example, might be a game changer that forces factories to
upgrade their processes or lag behind competitors. A good manager stays abreast of
technological shifts; a great manager anticipates and initiates change by encouraging her
organization to focus on learning and innovation. Practically, this can mean anything from
having a well-funded research-and-development team to paying for continuing education
for employees. An organization that surmounts cognitive limitations stays one step ahead
of its competitors.

Understanding operations management Consider the ingredients of your breakfast this

morning. Unless you live on a farm and produced them yourself, they passed through a
number of different processing steps between the farmer and your table.

Every organization has an operations function, whether or not it is called ‘operations’. The
goal or purpose of most organizations involves the production of goods and/or services.

19
Operations in some form has been around as long as human Endeavour itself but, in modern
manufacturing and service industry at least, it has changed dramatically over time.

To some (especially those professionally involved in operations management!) operations

management involves everything an organization does. In this sense, every manager is an
operations manager.

Operations management definitions

There are many differing definitions of operations management; we have picked a range
for you to look at below. Depending on your specific area of operations management, some
may suit your role or understanding better, but overall they all make a similar point.

· The efficient and effective implementation of the policies and tasks necessary to
satisfy an organization’s customers, employees, and management (and
stockholders, if a publicly owned company)

· The management of systems or processes that create goods and/or provide services

"The on-going activities of designing, reviewing and using the operating system, to
achieve service outputs as determined by the organization for customers" (Wright, 1999)

· Management of main business activity: the organizing and controlling of the fundamental
business activity of providing goods and services to customers

· Operations management deals with the design and management of products, processes,
services and supply chains. It considers the acquisition, development, and utilisation of
resources that firms need to deliver the goods and services their clients want.

· The purvey of operations management ranges from strategic to tactical and operational
levels. Representative strategic issues include determining the size and location of

20
manufacturing plants, deciding the structure of service or telecommunications networks,
and designing technology supply chains.

· Tactical issues include plant layout and structure, project management methods, and
equipment selection and replacement. Operational issues include production scheduling
and control, inventory management, quality control and inspection, traffic and materials
handling, and equipment maintenance policies.

· Operations management is an area of management concerned with overseeing, designing,

controlling the process of production and redesigning business operations in the production
of goods and/or services. It involves the responsibility of ensuring that business operations
are efficient in terms of using as few resources as needed, and effective in terms of meeting
customer requirements. It is concerned with managing the process that converts inputs (in
the form of materials, labor and energy) into outputs (in the form of goods and/or services).

IOM would like to thank Derek Thomason FIOM, Unipart Expert Practices, for
sharing examples and information contained in this section for the benefit of IOM
members and those interested in learning more about what operations management
is.

So what does it means?

What exactly does this mean in real terms? What kinds of tasks, roles and responsibilities
do people working in operations management have?

Forecast demand

– Market product

– Adapt to comply with customer demand

– Understand what the customer wants

– Understand how much the customer wants

21
– Set targets (timescales)

– Know product demand

– Measuring standards

– Produce sales invoices / solve customer disputes

– Measure outputs

– Plan production and timescales

Sourcing and procurement

– Order materials

– Negotiate price

– Check delivery with order

– Reconcile invoice with correct supplier statement

– Pay on time

– Buy supplies

– Order materials

– Stock control

– Buying resources and allocating

– Inventory / stock control

– Schedule suppliers

– Managing stock (getting it in the right place at the right time)

22
– Locating and procuring supplies

– Pay suppliers

Creation of output

– Managing budgets

– Cost implications

– Buy cost effective materials

– Replenish inventories

– Arrange for necessary equipment

– Schedule material / staff / equipment to produce goods and services

– Plan ‘work order’

– Produce product

– Produce goods

– Converting supplied materials (adding value)

– Quality control

– Measure conformance / quality

Delivery

– Customer satisfaction

– Deliver finished products

– Consider logistics / delivery

23
– Arrange delivery to customer

– Dispatching the goods or service to the customer

– Arrange packaging / presentation

Managing people <sub heading>

– Employ people

– Train people

– Implementing and timescales

– Outsource

– Delegation

– Managing people

– Recruit and train staff

– Schedule labour

Brief history of operations management

Pre 18th century

Agriculture was the predominant industry in every country

Industrial Revolution 1770–1830

– Economy based on manual labour was replaced by one dominated by industry and
themanufacture of machinery

24
– The development of all-metal machine tools in the first two decades of the 19th
centuryfacilitated the manufacture of more production machines powered by steam or
wate (James Watt, 1785)

Second Industrial Revolution (around 1850)

– Development of steam-powered ships, railways, and later in the nineteenth century

withthe internal combustion engine and electrical power generation

– Introduction of Frederick W. Taylor's systematic approach to scientific management atthe

beginning of the twentieth century (1911)

– Henry Ford, father of the moving assembly line, brought the world into an age
centredaround the mass production of goods (1920)

Post WWII

– Leverage of management science techniques that were developed in the war

– Growth in power of computers

– Japanese Toyota Production System (TPS) based on three principles:

1. Quality

2. Continual Improvement

3. Elimination of waste

Late 1950s and early 1960s

– Move from industrial engineering and operations research into

productionmanagement

25
 – Production management becomes a professional field as well as an
academicdiscipline

– Major world economies evolving into the service arena:

o service jobs outnumber manufacturing jobso productivity

increases much more difficult to achieve

– Operations techniques begin to be incorporated into services -the

termproduction/operations management comes into use

Today

– Environmental and social awareness

Types of operations management

Every organisation has an operations function, whether or not it is called ‘operations’. The
goal or purpose of most organisations involves the production of goods and/or services.
These pages provide you with an idea of the sorts of tasks and processes that relate to
operations management within each of the following industry types.

– Manufacturing products

– Providing insurance cover

– Providing healthcare

– Government

– Armed Forces – peace keeping

– OXFAM – bringing relief

Manufacturing products

26
Managing operations

– Receiving requirements

– Procuring raw materials

– Recruiting and retaining staff

– Budgeting and cash management

– Meeting Health, Safety and Legal requirements

– Planning resources

– Improving quality, cost and delivery

– Procuring / managing assets

– Defining policies and procedures

– Making products

– Storing and distributing products

– Negotiations

– Provide training

– Plan raw materials

– Process raw materials

– Make intermediates

– Process copy (for Control)

– Printing

27
 – Quality control

– Recycling / rework

Providing insurance cover

Managing operations

– Receiving requests for cover

– Assessing / reassess risk

– Answering customer enquiries

– Undertaking competitor reviews

– Processing claims

– Making payments

– Recruiting and retaining staff

– Budgeting and cash-flow management

– Meeting Health, Safety and Legal requirements

– Planning resources

– Improving quality, cost and delivery

– Customer care process

– Accredit repairers

– Forecast demand

– Process applications

28
 – Process renewals

– Calculate no claims bonuses

– Arrange repairs

– Send out certificates / reminders

– Send out claims forms

Providing healthcare

Managing operations

– Obtaining finance

– Project / programme Management

– Recruiting and retaining staff

– Sourcing and procuring supplies

– Responding to emergencies

– Scheduling patient operations

– Controlling infection

– Providing post operative care

– Capacity planning (bed / theatre management)

– Quality control / track and trace

– Dispatch ambulance

– Inform hospital of arrival

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 – Inform stakeholders

– Contact theatre team

– Provide interim care – stabilise patient

– Prepare resource (theatre)

– Kitting for operations

– Resource planning (ITU / ward)

– Plan diagnostics resources

– Liaise with other department

– Deploy ambulance

Government

Managing operations

– HMRC

o Process tax formso Investigate errors o Prosecute offenders

o Labour planning

– Social Services

o Assessing risko Providing support services

– Emergency Serviceso Capacity planning o Resource deployment

– Central Governmento Generate new laws o Influence people o Process claimants

o Allocate resources according to need o Educate and train people

30
Armed Forces

Managing operations

– Training and development

– Contingency planning

– Capital investment and programme management

– Logistics (soldiers and materials)

– Supply chain management

– Returns management

– Deployment

– Measurement and control

– Manage budgets and costs

– Stakeholder management

– Manage people

– Manage resources (equipment and materials)

– Management of maintenance

OXFAM

Managing operations

– Generate funds

– Contingency planning

31
– Material and labour planning

– Forecast demand

– Source and procure non-perishables

– Response time management

– What-if and scenario planning

– Deploying aid (people and materials)

– Transport to site of disaster

– Enabling sustainability

– Distribute to people in need

– Plan for short term and longer term sustainability

– Conduct risk assessment

– Skills assessment / training– Manage shops

– Run collections / donations

– Receive goods and price in shops

32
What do operations managers do?

Strategic (long term) Level---Responsible for, and decisions about:

o What to make (product development)o How to make it

(process and layout decisions) – or should we buy it?

o Where to make it (site location)o How much is needed (high

level capacity decisions)

Tactical Level (intermediate term)

– Address material and labour resourcing within strategy constraints, for example:

o How many workers are needed and when (labour planning)

o What level of stock is required and when should it be

delivered
(inventory and replenishment planning)

o How many shifts to work. Whether overtime or

subcontractors arerequired (detailed capacity planning)

Operational Level

– Detailed lower-level (daily/weekly/monthly) planning, execution and

controldecisions, for example:

o What to process and when (scheduling)o The order to

process requirements (sequencing) o How work is put on

resources (loading)

Who does the work (assignments)

33
What skills do operations managers need?

Have knowledge of:

– advanced operations technology and technical knowledge relevant to his/her industry

– interpersonal skills and knowledge of other functional areas

– the ability to communicate effectively, motivate other people, manage projects, andwork
on multidisciplinary teams

Multi-disciplinary working, for example:

– Supply chains – management of all aspects of providing goods to a consumer

fromextraction of raw materials to end-of-life disposal

– The interface with marketing – determining what customers' value prior

toproduct/service development

– Operations management/finance interface – capital equipment and inventories comprisea

sizable portion of many firms' assets in addition to normal operating costs

– Service operations – coping with inherent service characteristics such as

simultaneousdelivery/consumption, performance measurements, etc

– Operations strategy – consistent and aligned with other strategies and legalrequirements

– Process design and improvements – managing the innovation process

Issues facing operations managers Major

issues are:

– Environmental sustainability, recycling , reuse

– Counter terrorism / risk management

34
– Globalisation of supply and demand

– Reducing time to market

– Achieving and sustaining high quality while controlling cost

– Integrating new technologies and control systems into existing processes

– Obtaining, training, and keeping qualified workers and managers

– Working effectively with other functions to accomplish the goals

– Integrating production and service activities at multiple sites in

decentralizedorganisations

– Working effectively with suppliers and customers

– Strategic alliances

All these are critical issues. Operations management is at the very core of most
organisations. We can no longer focus on isolated tasks and processes but must be one
of the architects of the overall business operating model.

Another language???

There are lots of words and terms used in operations management, many of which are
explained in full in the IOM’s Knowledge Bank. Members can login to the members’ area
to find out what these terms mean in full.

– World class

– S&OP (Sales and Operations Planning)

– Six Sigma

– Lean vs agile

35
– KPIs

– Master scheduling

– MRP

– Processes

– TPS (Toyota Production System)

– Theory of constraints

– Balanced scorecard

– DRP

– Kaizen

– TPM

– Change management

– Continuous improvement

– Planning and scheduling

– ERP systems

36
Operations management is an area of management concerned with overseeing,
designing, and controlling the process of production and redesigning business operations
in the production of goods or services. It involves the responsibility of ensuring that
business operations are efficient in terms of using as few resources as needed, and effective
in terms of meeting customer requirements. It is concerned with managing the process that
converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form
of goods and/or services). [1] The relationship of operations management to senior
management in commercial contexts can be compared to the relationship of line officersto
highest-level senior officers in military science. The highest-level officers shape the
strategy and revise it over time, while the line officers make tactical decisions in support
of carrying out the strategy. In business as in military affairs, the boundaries between levels
are not always distinct; tactical information dynamically informs strategy, and individual
people often move between roles over time.

37
Ford Motor car assembly line: the classical example of a manufacturing production system.
Post office queue. Operations management studies both manufacturing and services.
According to the United States Department of Education, operations management is the
field concerned with managing and directing the physical and/or technical functions of a
firm or organization, particularly those relating to development, production, and
manufacturing. Operations management programs typically include instruction in
principles of general management, manufacturing and production systems, factory
management, equipment maintenance management, production control, industrial labor
relations and skilled trades supervision, strategic manufacturing policy, systems analysis,
productivity analysis and cost control, and materials planning.[2] [3]Management, including
operations management, is like engineering in that it blends art with applied science.
People skills, creativity, rational analysis, and knowledge of technology are all required for
success.
History
The history of production and operation systems began around 5000 B.C. when Sumerian
priests developed the ancient system of recording inventories, loans, taxes, and business
transactions. The next major historical application of operation systems occurred in 4000
B.C. It was during this time that the Egyptians started using planning, organization, and
control in large projects such as the construction of the pyramids. By 1100 B.C., labor was
being specialized in China; by about 370 B.C., Xenophon described the advantages of
dividing the various operations necessary for the production of shoes among different
individuals in ancient Greece .

38
In the Middle Ages, kings and queens ruled over large areas of land. Loyal noblemen
maintained large sections of the monarch’s territory. This hierarchical organization in
which people were divided into classes based on social position and wealth became known
as the feudal system. In the feudal system, servants produced for themselves and people of
higher classes by using the ruler’s land and resources. Although a large part of labor was
employed in agriculture, artisans contributed to economic output and formed guilds. The
guild system, operating mainly between 1100 and 1500, consisted of two types: merchant
guilds, who bought and sold goods, and craft guilds, which made goods. Although guilds
were regulated as to the quality of work performed, the resulting system was rather rigid,
shoemakers, for example, were prohibited from tannin hides.

The industrial revolution was facilitated by two elements: interchangeability of parts and
division of labor. Division of labor has always been a feature from the beginning of
civilization, the extent to which the division is carried out varied considerably depending
on period and location. Compared to the Middle Ages, the Renaissance and the Age of
Discovery was characterized by a greater specialization in labor, one of characteristics of
growing European cities and trade. It was in the late eighteenth century when Eli Whitney
popularized the concept of interchangeability when he manufactured 10,000 muskets. Up
to this point in history of manufacturing, each product (e.g. each gun) was considered a
special order, meaning that parts of a given gun were fitted only for that particular gun and
could not be used in other guns. Interchangeability of parts allowed the mass production
of parts independent of the final products in which they will be used.

In 1883, Frederick W. Taylor introduced the stopwatch method for accurately measuring
the time to perform each single task of a complicated job. He developed the scientific study
of productivity and identifying how to coordinate different tasks to eliminate wasting of
time and increase the quality of work. The next generation of scientific study occurred with
the development of work sampling and predetermined motion time systems (PMTS). Work
sampling is used to measure the random variable associated with the time of each task.
PMTS allows the use of standard predetermined tables of the smallest body movements
(e.g. turning the left wrist by 90°), and integrating them to predict the time needed to
perform a simple task. PMTS has gained substantial importance due to the fact that it can

39
predict work measurements without actually observing the actual work. The foundation of
PMTS was laid out by the research and development of Frank B. and Lillian M. Gilbreth
around 1912. The Gilbreths took advantage of taking motion pictures at known time
intervals while operators were performing the given task.

The idea of the production line has been used multiple times in history prior to Henry Ford:
the Venetian Arsenal (1104), Smith pin manufacturing in the Wealth of Nations (1776) or
Brunel's Portsmouth Block Mills (1802). Ransom Olds was the first to manufacture cars
using the assembly line system, but Henry Ford developed the first auto assembly system
where a car chassis was moved through the assembly line by a conveyor belt while workers
added components to it until the car was completed. During World War II, the growth of
computing power led to further development of efficient manufacturing methods and the
use of advanced mathematical and statistical tools. This was supported by the development
of academic programs in industrial and systems engineering disciplines, as well as fields
of operations research and management science (as multi-disciplinary fields of problem
solving). While systems engineering concentrated on the broad characteristics of the
relationships between inputs and outputs of generic systems, operations researchers
concentrated on solving specific and focused problems. The synergy of operations research
and systems engineering allowed for the realization of solving large scale and complex
problems in the modern era. Recently, the development of faster and smaller computers,
intelligent systems, and the World Wide Web has opened new opportunities for operations,
manufacturing, production, and service systems.

Malakooti (2013) states that production and operation systems can be divided into five
phases:[6]

1. Empiricism (learning from experience)

2. Analysis (scientific management)

3. Synthesis (development of mathematical problem solving tools)

40
 4. Isolated Systems with Single Objective (use of Integrated and Intelligent Systems,
and WWW)

5. Integrated Complex Systems with Multiple Objectives (development of

ecologically sound systems, environmentally sustainable systems, considering
individual preferences)

Industrial Revolution

Before the First industrial revolution work was mainly done through two systems: domestic
system and craft guilds. In the domestic system merchants took materials to homes where
artisans performed the necessary work, craft guilds on the other hand were associations of
artisans which passed work from one shop to another, for example: leather was tanned by
a tanner, passed to curriers, and finally arrived at shoemakers and saddlers.

The beginning of the industrial revolution is usually associated with 18th century English
textile industry, with the invention of shuttle by John Kay in 1733, the spinning jenny by
James Hargreaves in 1765, the water frame by Richard Arkwright in 1769 and the steam
engine by James Watt in 1765. In 1851 at the Crystal Palace Exhibition the term American
system of manufacturing was used to describe the new approach that was evolving in the
United States of America which was based on two central features: interchangeable parts
and extensive use of mechanization to produce them.

Henry Ford was 39 years old when he founded the Ford Motor Company in 1903, with
$28,000 capital from twelve’s investors. The model T car was introduced in 1908, however
it was not until Ford implemented the assembly line concept, that his vision of making a
popular car affordable by every middle-class American citizen would be realized. The first
factory in which Henry Ford used the concept of the assembly line was Highland Park
(1913), he characterized the system as follows:

"The thing is to keep everything in motion and take the work to the man and not the man
to the work. That is the real principle of our production, and conveyors are only one of
many means to an end"

41
This became one the central ideas that led to mass production, one of the main elements of
the Second Industrial Revolution, along with emergence of the electrical industry and
petroleum.
Although productivity benefited considerably from technological inventions and division
of labour, the problem of systematic measurement of performances and the calculation of
these by the use of formulas remained somewhat unexplored until Frederick Winslow
Taylor. Frederick Taylor early work focused on developing what he called a "differential
piece-rate system" and a series of experiments, measurements and formulas dealing with
cutting metals and manual labor. The differential piece-rate system consisted in offering
two different pay rates for doing a job: a higher rate for workers with high productivity
(efficiency) and who produced high quality goods (effectiveness) and a lower rate for those
who fail to achieve the standard. One of the problems Taylor believed could be solved with
this system, was the problem of soldiering: faster workers reducing their production rate
to that of the slowest worker. In 1911 Taylor published his "The Principles of Scientific
Management", in which he characterized scientific management (also know as Taylorism)
as:

1. The development of a true science;

2. The scientific selection of the worker;

3. The scientific education and development of the worker;

4. Intimate friendly cooperation between the management and the workers.

Taylor is also credited for developing stopwatch time study, this combined with Frank and
Lillian Gilbreth motion study gave way to time and motion study which is centered on the
concepts of standard method and standard time. Frank Gilbreth is also responsible for
introducing the flow process chart. Other contemporaries of Taylor worth remembering are
Morris Cooke (rural electrification in the 1920s and implementer of Taylor's principles of
scientific management in the Philadelphia's Department of Public

42
Works), Carl Barth(speed-and-feed-calculating slide rules ) and Henry Gantt (Gantt chart).
Also in 1910 Hugo Diemer published the first industrial engineering book: Factory
Organization and Administration.

In 1913 Ford W. Harris published his "How Many parts to make at once" in which he
presented the idea of the economic order quantity model. He described the problem as
follows:

"Interest on capital tied up in wages, material and overhead sets a maximum limit to the
quantity of parts which can be profitably manufactured at one time; "set-up" costs on the
job fix the minimum. Experience has shown one manager a way to determine the
economical size of lots"

This paper inspired a large body of mathematical literature focusing on the problem of
production planning and inventory control.

In 1924 Walter Shewhart introduced the control chart through a technical memorandum
while working at Bell Labs, central to his method was the distinction between common
cause and special cause of variation. In 1931 Shewhart published his Economic Control of
Quality of Manufactured Product, the first systematic treatment of the subject ofStatistical
Process Control (SPC).

In the 1940s methods-time measurement (MTM) was developed by H.B. Maynard, JL

Schwab and GJ Stegemerten. MTM was the first of a series of predetermined motion time
systems, predetermined in the sense that estimates of time are not determined in loco but
are derived from an industry standard. This was explained by its originators in a book they
published in 1948 called "Method-Time Measurement".

Up to this point in history, optimization techniques were known for a very long time, from
the simple methods employed by F.W.Harris to the more elaborate techniques of
thecalculus of variations developed by Euler in 1733 or the multipliers employed by
Lagrange in 1811, and computers were slowly being developed, first as analog computers
by Sir William Thomson (1872) and James Thomson (1876) moving to the

43
eletromechanical computers of Konrad Zuse (1939 and 1941). During World War II
however, the development of mathematical optimization went trough a major boost with
the development of the Colossus computer, the first electronic digital computer that was
all programmable, and the possibility to computationally solve large linear programming
problems, first by Kantorovich in 1939 working for the Soviet government and latter on in
1947 with the simplex method of Dantzig. These methods are known today as belonging
to the field of operations research.

From this point on a curious development took place: while in the United States the
possibility of applying the computer to business operations led to the development of
management software architecture such as MRP and successive modifications, and ever
more sophisticated optimization techniques and manufacturing simulation software, in
post-war Japan a series of events at Toyota Motor led to the development of the Toyota
Production System (TPS) and Lean Manufacturing.

In 1943, in Japan, Taiichi Ohno arrived at Toyota Motor company. Toyota evolved a unique
manufacturing system centered on two complementary notions: just in time (produce only
what is needed) and autonomation (automation with a human touch). Regarding JIT, Ohno
was inspired by American supermarkets: workstations functioned like a supermarket shelf
where the customer can get products they need, at the time they need and in the amount
needed, the workstation (shelf) is then restocked. Autonomation was developed by Toyoda
Sakichi in Toyoda Spinning and Weaving: an automatically activated loom that was also
foolproof, that is automatically detected problems. In 1983 J.N Edwards published his
"MRP and Kanban-American style" in which he described JIT goals in terms of seven
zeros: zero defects, zero (excess) lot size, zero setups, zero breakdowns, zero handling,
zero lead time and zero surging. This period also marks the spread of Total Quality
Management (TQM) in Japan, ideas initially developed by American authors such as
Deming, Juran and Armand V. Feigenbaum. TQM is a strategy for implementing and
managing quality improvement on an organizational basis, this includes: participation,
work culture, customer focus, supplier quality improvement and integration of the quality
system with business goals. [14] Schnonberger [18] identified seven fundamentals principles
essential to the Japanese approach:

44
 1. Process control: SPC and worker responsibility over quality

2. Easy able -to-see quality: boards, gauges, meters, etc. and poka-yoke

3. Insistence on compliance: "quality first"

4. Line stop: stop the line to correct quality problems

5. Correcting one's own errors: worker fixed a defective part if he produced it

6. The 100% check: automated inspection techniques and foolproof machines

7. Continual improvement: ideally zero defects

In 1987 the International Organization for Standardization (ISO), recognizing the growing
importance of quality, issued the ISO 9000, a family of standards related to quality
management systems. There has been some controversy thought regarding the proper
procedures to follow and the amount of paperwork involved.

Meanwhile in the sixties, a different approach was developed by George W. Plossl and
Oliver W. Wright,[19] this approach was continued by Joseph Orlicky as a response to the
TOYOTA Manufacturing Program which led to Material Requirements Planning (MRP)
at IBM, latter gaining momentum in 1972 when the American Production and Inventory
Control Society launched the "MRP Crusade". One of the key insights of this management
system was the distinction between dependent demand and independent demand.
Independent demand is demand which originates outside of the production system,
therefore not directly controllable, and dependent demand is demand for components of
final products, therefore subject to being directly controllable by management through the
bill of materials, via product design. Orlicky wrote "Materials Requirement Planning" in
1975,[20] the first hard cover book on the subject. [19] MRP II was developed by Gene Thomas
at IBM, and expanded the original MRP software to include additional production
functions. Enterprise resource planning (ERP) is the modern software architecture, which

45
addresses, besides production operations, distribution, accounting, human resourcesand
procurement.

Recent trends in the field revolve around concepts such as:

• Business Process Re-engineering (launched by Michael Hammer in 1993[21]): a

business management strategy focusing on the analysis and design of workflows and
business processes within an organization. BPR seeks to help companies radically
restructure their organizations by focusing on the ground-up design of their business
processes.

• Lean Manufacturing: a systemic method for the elimination of waste ("Muda") within
a manufacturing process. Lean also takes into account waste created through
overburden ("Muri") and waste created through unevenness in work loads ("Mura").
The term lean manufacturing was coined in the book The Machine that Changed the
World. [22]

• Six Sigma (an approach to quality developed at Motorola between 1985-1987): Six
Sigma refers to control limits placed at six (6) standard deviations from the mean of
anormal distribution, this became very famous after Jack Welch of General Electric
launched a company-wide initiative in 1995 to adopt this set of methods. More recently,
Six Sigma has included DMAIC (for improving processes) and DFSS (for designing
new products and new processes)

• Reconfigurable Manufacturing Systems: a production system designed at the outset for

rapid change in its structure, as well as its hardware and software components, in order
to quickly adjust its production capacity and functionality within a part family in
response to sudden market changes or intrinsic system change.

46
 2.1. An Introduction of Operation Management

2.1.1. What is Operation management?

Operation management is the activity of tracking Operation against targets and identifying
opportunities for improvement - but not just looking back at past Operation. The focus of
Operation management is the future - what do you need to be able to do and how can you
do things better? Managing Operation is about managing for results.
Operation-based management at any level in the organization should demonstrate that

• You know what you are aiming for

• You know what you have to do to meet your objectives
• You know how to measure progress towards your objectives

• You can detect Operation problems and remedy them

2.1.2. Why is it important?

The Modernizing Government agenda sets challenging new Operation objectives for
organizations, from the delivery of high quality services that meet the needs of their
customers and stakeholders, to doing more within the constraints of available resources,
through to continuous improvement in how the organization itself operates. Operation
management underpins the operations and processes within a strategic change program
framework. Sound practices and targets, which are both flexible and reactive to change,
are needed to achieve Operation improvement.

The effective Operation of your organization depends on the contributions of activities at

all levels - from top management policy development through to efficiently run operations.

47
 In response to the pressures and opportunities for improving organizational Operation, you
need to understand how to define and measure Operation as part of a concerted strategy
for relevant, successful and cost-effective operations.

2.1.3. Critical factors for success

• Focusing on outcomes that meet business objectives, rather than outputs

• Managing Operation by cascading down from the top and building bottom-up
• Defining and using measures that evolve over time

• Using a mix of short and long term measures, and selecting measures that link cause
and effect
• Measuring effectiveness (doing the right things) and efficiency (doing things right)
in parallel
• Relating individuals' reward and remuneration with achievement of outcomes.

2.1.4. Who is involved?

Business managers are responsible for setting targets and managing Operation against those
targets; contract managers monitor service Operation from the customer viewpoint; service
providers supply Operation information.

2.1.5. Principles

Operation management should be an integrated part of a business lifecycle helping an

organization to mature through evolving and changing Operation measures, from their
definition through to monitoring and review in addition, by including the IS/IT component
throughout this lifecycle, rather than just considering it as a 'downstream' cost of provision,

48
 there should be enhanced benefits from an increased and more effective contribution from
any investment made in IS/IT.

You will need to ensure that you have adopted sound practices in commissioning and
acquiring IS/IT services to achieve Operation improvement. Operation management
identifies opportunities for maximizing improvements in managing service delivery in the
future. Operation management helps you to make decisions about investment routes,
affordability and setting investment priorities in the face of competing demands for
resources.

2.1.6. Managing for results

Managing for results requires the organization to focus on the outputs of the processes and
activities undertaken by the organization at varying levels. Together these outputs will
contribute to the achievement of the outcomes desired by the organization and those of the
government as a whole.

2.2. Levels of Operation management

1. The effective Operation of your organization depends on the contribution of activities

at all levels - from top management policy development through to efficiently run
operations. There are three or four levels of Operation management in the model
framework below, some organizations may combine the strategic level with the
organization’s priorities level.

2. Organization’s priorities: at the highest level Operation management is rooted in the

organization’s long term business strategy. Measures at this level are of impact,
resource utilization and public service improvement.

3. Strategic level Operation management: at this level the management concern is from
an "outside in" as well as an internal perspective. Measures are of outcome, such as

49
 volume and value of service take-up, upward trends for inclusion, staff and users'
satisfaction.

4. Program level Operation management: Operation management at this level is focused

on the desired results of programs of change, to demonstrate what has been
accomplished. The measures used would include those stated in individual business
cases. Benefits management would help to determine if these are achieved.

5. Tactical or operational service level Operation management: here the management

focus is concerned with service delivery and outputs, using conventional service level
agreement approaches and related measures of aspects such as volumes and quality.

Although Operation measures and indicators may be different at each level, they will need
to be.

• Directional - to confirm that you are on track to reach the goals.

• Quantitative - to show what has been achieved and how much more is to be done.

• Worthwhile - adding more value to the business than they cost to collect and use.

2.3. Value for money

You must be able to demonstrate that you have achieved value for money in your
operations. Value for money is taken to cover three measures of Operation:

• Economy - Minimizing the cost of resources used for an activity, having regard to
appropriate quality
• Efficiency - the relationship between outputs, in terms of goods, services or other
results and the resources used to produce them
• Effectiveness - the extent to which objectives have been achieved, and the relationship
between the intended impacts and actual impacts of an activity.

50
 2.4. Measures and metrics

You should use these evaluation criteria for measures and metrics:

• Are you measuring the right thing?

• Do you have the right measures?

• Are the measures used in the right ways?

• Do you determine the quality of a particular Operation metric using the SMART test
(Specific, Measurable, Attainable, Relevant, Timely)?

The procedures and measures used in Operation management will depend, among other
factors, on the type of business process which is being measured. A business process is
assumed to be made up of a number of activities which transform inputs into outputs and
contribute to the realisation of outcomes. The customers for a process may be external (for
example, members of the public) or internal, within the same organisation or elsewhere in
the public sector.

2.4.1. Business processes can be distinguished by:

• The extent to which the activities involved are people-oriented as opposed to automated
• Whether the activities are primarily 'front-office' or 'back-office' - that is, the amount
of direct contact which the staff have with the customers or recipients of the process
• Whether the process itself is the important feature of the activity - for example, in
delivering consultancy - or whether the activities are concerned primarily with the
generation of defined outputs
• The extent to which the activity is customized or tailored to the needs of each customer,
as opposed to being routine and procedural

• The amount of discretion which needs to be exercised in the activities The duration
of the contact with the customer.

51
2.5. Processes

You will need to review the effectiveness of your procedures for:

• Setting Operation targets

• Designing measures of Operation relevant to the targets

• Systematically and accurately measuring outcomes

• Assessing the Operation of external service providers

• Using results for informed decision-making Improving Operation.

Research shows that most organizations have the components of Operation management
in place, but they are not always used to overall advantage. A possible five-step approach
that could help organizations in improving the Operation management of the IS/IT
contribution is outlined below, with suggested techniques.

Step 1: Identify your level of maturity in Operation management

• Look at how the organization is performing in all its aspects of Operation management
- from direction setting through to review and measurable improvement.
• Do an assessment; this will help to identify your organization’s maturity and the
strengths and weaknesses.
• Establish where you are now as a series of baselines, looking at Operation management
at strategic program, tactical and operational levels.
• Bottom-up measures of economy and efficiency are likely to be reasonably strong and
have good management. This may not be so well developed for effectiveness measures

• Innovation, process improvement, customer satisfaction, and contribution to policy

objectives. Most organizations have a good understanding of financial measure; this
level of understanding needs to be developed for other measures.
• Techniques: Assessment; baseline

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Step 2: Identify where Operation management is important to your organization

• Is it in setting direction or ensuring the delivery of required benefits or improving the

alignment, Operation and contribution of the internal and external resources used by
the organization?
• Identify the values for your organization.

• Key values for safety critical operational services are speed and integrity of
information. A different organization might place high value on information flows or
on single points of access to information at a contact/call centre.
• Techniques: Value chain analysis; benchmarking with other organizations (which may
identify things you had not thought of)

Step 3: Resolve any mismatch between steps 1 and 2

• Review Operation management at each of the four levels - (organization, strategic,

program and tactical). Are there weaknesses in areas that are important to your
organization?
• Techniques: to become more outward looking and customer-focused, use the well
established balanced scorecard and EFQM® techniques.
• To answer questions about where IT makes a contribution, use Goals, Questions and
Metrics (GQM) to identify and define measures.

Step 4: Establish where you want to be and begin to build Operation management
into business processes and into the culture

• The aim is to have target, measurement and review processes for those things that the
business considers important such as product, process, service and staff.
• You will have lots of measures which need to be prioritised against your particular
perspective on effectiveness, efficiency and economy and against your values.
• establish benefits management as a norm

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• Use databases to collect Techniques Operation information and analyse trends
• Include Operation management in the business, programme and project lifecycle

Step 5 : Feed information back into Operation improvement Monitor

and take action on:

• We achieve what we set out to do?

• Where are the opportunities to improve?

• What can we do to improve? You are seeking answers to:

• What is achievable?
• What is important for our organization?

• What was achieved?

Techniques: Process assessment; your own targets, looking at benchmarks from the outside
world.

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The process of Operation management

55
2.6. Objectives of a Operation Management System

Operation management is an integral part of a comprehensive human resource management

strategy. Its objective is to maximize individuals' Operation and potential with a view to
attaining organizational goals and enhancing overall effectiveness and productivity.

A staff Operation management system aims at: -

To help achieve departmental objectives through staff

Departments formulate strategies and objectives to support their vision, mission and
values. To achieve these broad objectives, departments have to turn them into specific
objectives and targets for the divisions, sections, units and subsequently individual job
objectives and targets for implementation. As individual job objectives are linked to those
of departments', the Operation of individual officers contributes to the delivery of
departmental objectives.

To evaluate Operation and improve communication between managers

and staff on managing Operation

The staff Operation management system provides a mechanism to monitor and evaluate
staff Operation. Operation objectives are set at the beginning of the Operation management
cycle through open discussion between the supervisors and the appraisees. Progress is

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 monitored regularly and feedback from staff and supervisors is collated to help clarify
objectives and output expectation; and to enhance Operation.

To provide opportunities for development

The staff Operation management system serves as a multi-purpose management tool. It

provides valuable information to help identify individual training needs so as to enhance
Operation and to develop the potential of the staff for further advancement.

The following figure provides an illustration of how Operation management links with
other human resource functions.

2.7. Overall Goal and Focus of Operation Management

The overall goal of Operation management is to ensure that the organization and all of
its subsystems (processes, departments, teams, employees, etc.) are working together in an
optimum fashion to achieve the results desired by the organization.

2.8.Operation Improvement of the Organization or a Subsystem is an

Integrated Process

Note that because Operation management strives to optimize results and alignment of all
subsystems to achieve the overall results of the organization, any focus of Operation
management within the organization (whether on department, process, employees, etc.)
should ultimately affect overall organizational Operation management as well.

2.9.Ongoing Activities of Operation Management

Achieving the overall goal requires several ongoing activities, including identification and
prioritization of desired results, establishing means to measure progress toward those
results, setting standards for assessing how well results were achieved, tracking and

57
 measuring progress toward results, exchanging ongoing feedback among those participants
working to achieve results, periodically reviewing progress, reinforcing activities that
achieve results and intervening to improve progress where needed. Note that results
themselves are also measures.

Note: these general activities are somewhat similar to several other major approaches in
organizations, e.g., strategic planning, management by objectives, Total Quality
Management, etc. Operation management brings focus on overall results, measuring
results, focused and ongoing feedback about results, and development plans to improve
results. The results measurements themselves are not the ultimate priority as much as
ongoing feedback and adjustments to meet results.

The steps in Operation management are also similar to those in a well-designed training
process, when the process can be integrated with the overall goals of the organi zation.
Trainers are focusing much more on results for Operation. Many trainers with this priority
now call themselves Operation consultants.

2.10. Basic Steps

Various authors propose various steps for Operation management. The typical Operation
management process includes some or all of the following steps, whether in Operation
management of organizations, subsystems, processes, etc. Note that how the steps are
carried out can vary widely, depending on the focus of the Operation efforts and who is in
charge of carrying it out. For example, an economist might identify financial results, such
as return on investment, profit rate, etc. An industrial psychologist might identify more
human-based results, such as employee productivity.

The following steps are described more fully in the topics Operation Plan,
Operation Appraisal and Development Plan, including through use of an example application.
The steps are generally followed in sequence, but rarely followed in exact sequence.
Results from one step can be used to immediately update or modify earlier steps. For

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example, the Operation plan itself may be updated as a result of lessons learned during the
ongoing observation, measurement and feedback step.

NOTE: The following steps occur in a wide context of many activities geared towards
Operation improvement in an organization, for example, activities such as management
development, planning, organizing and coordinating activities.

1. Review organizational goals to associate preferred organizational results in terms of

units of Operation, that is, quantity, quality, cost or timeliness (note that the result itself
is therefore a measure)
2. Specify desired results for the domain -- as guidance, focus on results needed by other
domains (e.g., products or services need by internal or external customers)

3. Ensure the domain's desired results directly contribute to the organization's results
4. Weight, or prioritize, the domain's desired results.
5. Identify first-level measures to evaluate if and how well the domain's desired results
were achieved
6. Identify more specific measures for each first-level measure if necessary
7. Identify standards for evaluating how well the desired results were achieved (e.g.,
"below expectations", "meets expectations" and "exceeds expectations")
8. Document a Operation plan -- including desired results, measures and standards
9. Conduct ongoing observations and measurements to track Operation
10. Exchange ongoing feedback about Operation
11. Conduct a Operation appraisal (sometimes called Operation review)
12. If Operation meets the desired Operation standard, then reward for Operation (the
nature of the reward depends on the domain)
13. If Operation does not meet the desired Operation standards, then develop or update a
Operation development plan to address the Operation gap* (See Notes 1 and 2)
14. Repeat steps 9 to 13 until Operation is acceptable, standards are changed, the domain
is replaced, management decides to do nothing, etc.

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 Note 1: Inadequate Operation does not always indicate a problem on the part of the domain.
Operation standards may be unrealistic or the domain may have insufficient resources.
Similarly, the overall strategies or the organization, or its means to achieving its top-level
goals, may be unrealistic or without sufficient resources.

Note 2: When Operation management is applied to an employee or group of employees, a

development plan can be initiated in a variety of situations E.g.

a. When a Operation appraisal indicates Operation improvement is needed, that is, that
there is a "Operation gap"

b. To "benchmark" the status of improvement so far in a development effort

c. As part of a professional development for the employee or group of employees, in

which case there is not a Operation gap as much as an "growth gap”

d. As part of succession planning to help an employee be eligible for a planned change in

role in the organization, in which case there also is not a Operation gap as much as an
"opportunity gap"

e. To "pilot", or test, the operation of a new Operation management system.

2.11. Operation management mainly include following things:

Operation management is the systematic process by which an agency involves its

employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and goals.

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 • Planning work and setting expectations,

• Continually monitoring Operation,

• Developing the capacity to perform,

• Periodically rating Operation in a summary fashion, and Rewarding good Operation.

The revisions made in 1995 to the Government wide Operation appraisal and awards
regulations support sound management principles. Great care was taken to ensure that the
requirements those regulations establish would complement and not conflict with the kinds
of activities and actions practiced in effective organizations as m after of course.

Additional background information on Operation management can be found in the

following

2.11.1. Planning

In an effective organization, work is planned out in advance. Planning means setting

Operation expectations and goals for groups and individuals to channel their efforts
towards achieving the organizational objectives. Getting employees involved in the

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 planning process will help them understand the goals of the organization, what needs to be
done, why it needs to be done, and how well it should be done.

The regulatory requirements for planning employees' Operation include establishing the
elements and standards of their Operation appraisal plans. Operation elements and
standards should be measurable, understandable, verifiable, equitable, and achievable.
Through critical elements, employees are held accountable as individuals for work
assignments or responsibilities. Employee Operation plans should be flexible so that they
can be adjusted for changing program objectives and work requirements. When used
effectively, these plans can be beneficial working documents that are discussed often, a nd
not merely paperwork that is filed in a drawer and seen only when ratings of record are
requirement

2.11.2. Monitoring

In an effective organization, assignments and projects are monitored continually.

Monitoring well means consistently measuring Operation and providing ongoing feedback
to employees and work groups on their progress toward reaching their goals.

Regulatory requirements for monitoring Operation include conducting progress reviews

with employees where their Operation is compared against their elements and standards.
Ongoing monitoring provides the opportunity to check how well employees are meeting
predetermined standards and to make changes to unrealistic or problematic standards. And
by monitoring continually, unacceptable Operation can be identified at any time during the
appraisal period and assistance provided to address such Operation rather than wait until
the end of the period when summary rating levels are assigned.

2.11.3. Developing Employees

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 In an effective organization, employee developmental needs are evaluated and addressed.
Developing in this instance means increasing the capacity to perform through training,
giving assignments that introduce new skills or higher levels of responsibility, improving
work processes, or other methods. Providing employees with training and developmental
opportunities encourages good Operation, strengthens job-related skills and competencies,
and helps employees keep up with changes in the workplace, such as the introduction of
new technology.

Carrying out the processes of Operation management provides an excellent opportunity to

identify developmental needs. During planning and monitoring of work, deficiencies in
Operation become evident and can be addressed. Areas for improving good Operation also
stand out, and action can be taken to help successful employees improve even further.

2.11.4. Rating

From time to time, organizations find it useful to summarize employee Operation. This can
be helpful for looking at and comparing Operation over time or among various employees.
Organizations need to know who their best performers are.

Within the context of formal Operation appraisal requirements, rating means evaluating
employee or group Operation against the elements and standards in an employee's
Operation plan and assigning a summary rating of record. The rating of record is assigned
according to procedures included in the organization's appraisal program. It is based on
work performed during an entire appraisal period. The rating of record has a bearing on
various other personnel actions; such as granting within-grade pay increases and
determining additional retention service credit in a reduction in force.

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 Note: Although group Operation may have an impact on an employee's summary rating, a
rating of record is assigned only to an individual, not to a group.

2.11.5. Rewarding

In an effective organization, rewards are used well. Rewarding means recognizing

employees, individually and as members of groups, for their Operation and acknowledging
their contributions to the agency's mission. A basic principle of effective management is
that all behavior is controlled by its consequences. Those consequences can and should be
both formal and informal and both positive and negative.

Good Operation is recognized without waiting for nominations for formal awards to be
solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the
actions that reward good Operation — like saying "Thank you" — don't require a specific
regulatory authority. Nonetheless, awards regulations provide a broad range of forms that
more formal rewards can take, such as cash, time off, and many no monetary items. The
regulations also cover a variety of contributions that can be rewarded, from suggestions to
group accomplishments.

2.12. Managing Operation Effectively

In effective organizations, managers and employees have been practicing good Operation
management naturally all their lives, executing each key component process well. Goals
are set and work is planned routinely. Progress toward those goals is measured and
employees get feedback. High standards are set, but care is also taken to develop the skills

64
 needed to reach them. Formal and informal rewards are used to recognize the behavior and
results that accomplish the mission. All five-component processes working together and
supporting each other achieve natural, effective Operation management.

2.13. Features of a Good Operation Management System

A good staff Operation management system normally consists of the following features:

• Fair and open Objective -The system designed should aim to facilitate objective and
fair assessment by the management and encourage frank and constructive feedback of
appraises. These can be achieved through:

• Setting clear targets and standards;

• Providing opportunities for supervisors to inform appraises of their Operation

regularly, to be accompanied by timely coaching and counseling;

• Permitting the appraise to have access to the entire report and to review the appraisal
before the appraisal interview; and

• Where necessary an assessment panel should be formed to ensure fairness in Operation

rating.

Adopting such an open system for staff Operation also supports the spirit of the Personal
Data (Privacy) Ordinance.

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2.13.1. Competency-Based

Competency refers to the knowledge, attributes, attitude and skills required to perform a
job effectively. There are two broad categories of competencies: core competencies and
functional competencies. Core competencies are the generic competencies associated with
effective Operation required by a group of job holders in a department across different
divisions/sections. An example is managerial competencies required for staff in managerial
positions. Functional competencies are the competencies specific to certain job functions,
such as computer programming skills for programmers in the Computer Section and
classroom skills for trainers in the Training Division of a department.

Competencies are reflected in a set of desirable behavior patterns which are observable,
measurable and can be tracked and monitored.

Developing and using a competency-based approach enables departments to use a common

language and structured way to define and describe appropriate job behaviors at different
ranks as officer’s progress through the grade. The approach help to assess staff's potential
and promo ability to the next higher rank and identify development needs of the staff. It
also enhances the objectivity and transparency of Operation assessment.

When core competency-based approach is adopted, departments need to ensure that the
competencies are developed properly by :

• Aligning individual Operation objectives with departmental ones,

• Securing senior management's commitment, and Involving staff

in the process.

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Furthermore there should be a clear differentiation in competency descriptions among
different ranks in the same grade. An unduly long list of competencies may adversely affect
the effectiveness of the system.

For competencies to effectively serve the needs of a department, they should be

department-specific and reflect the missions, values and culture of the department. Any list
of competencies cannot be exhaustive. It only provides the common language and
understanding of the key dimensions and descriptions that warrant attention.

Upon implementation, there should be proper and adequate training for the staff on the
implementation of the Operation management system

Operation planning starts with a session between the appraising officer and the appraisee
to agree on the list of objectives/responsibilities for the coming appraisal period. The
agreed list will include the objectives of the section/unit and the broad areas of
responsibilities of the appraisees, that is key result areas (KRAs).

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2.13.2. A Continuous Process

Staff Operation management cycle is a continuous process which involves :

• Operation planning

• Continuous coaching and development

• Interim review

• Operation appraisal

2.13.3. Operation planning

Operation planning starts with a session between the appraising officer and the appraise to
agree on the list of objectives/responsibilities for the coming appraisal period. The agreed
list will include the objectives of the section/unit and the broad areas of responsibilities of
the appraises, that is key result areas (KRAs).

Examples of KRAs are:

• Timely completion of caseloads

• Customer satisfaction and relations

• Staff development

• Resource management

• Project management

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 Specific, measurable, achievable and time bound targets will then be set on the basis of the
KRAs. The appraising officer should ensure that these targets are in alignment with the
overall departmental objectives and that they are clearly understood by the appraisee.

Depending on the nature of the job, appraising officers may alternatively agree with
appraises a list of key responsibilities with specific Operation results. This list provides the
appraisees and the appraising officers with the yardstick to objectively discuss, monitor
and assess Operation. The list should be kept under frequent review and be revised
whenever there are changes in the job.

2.13.4. Continuous coaching and development

The Operation management system is a on-going process. After work targets and standards
have been decided and Operation objectives agreed upon, the appraising officer should
start the coaching and development process which threads through Operation planning,
regular feedback and guidance, interim reviews and Operation appraisal.
Coaching is about providing regular feedback to staff on their Operation. It aims at:

• Giving recognition to encourage and reinforce good Operation; and

• Providing advice and counseling to help improve Operation, and where appropriate,
take corrective action.

Through the coaching sessions, training needs should also be identified and followed.

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2.13.5. Interim review

An interim review is a scheduled, formal discussion between the appraising officer and the
appraisee to review the latter's progress in meeting the agreed objectives/responsibilities.
This usually takes place in the middle of the appraisal period.

An interim review should take the form of a structured session to provide an opportunity
for additional coaching, for problem solving, and for updating objectives/responsibilities.

An interim review aims to:

• Identify Operation results that are below, on or above target and determine appropriate
responses on corrective measures. Supervisors should use this occasion to recognize
and encourage good Operation. On the other hand, Operation below targets is to be
pointed out and guidance for improvement to be given;

• Assess and follow up development or training need of staff to assist them in achieving
their objectives/responsibilities;

• Ascertain whether there are potential problems that may affect the appraiser’s
Operation in the latter half of the reporting cycle and put in place preventive measures;
and

• Review whether adjustments to the agreed objectives/responsibilities are required.

2.13.6. Operation appraisal

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 Operation appraisal is the formal assessment on the appraisee’s Operation for the appraisal
period. It covers the following aspects:

• How effectively the agreed objectives/responsibilities have been carried out and targets
met;

• Whether the effectiveness has been adversely affected by any constraints or obstacles;

• The strengths and weaknesses of the appraisee which affected or will affect the officer's
further development;

• And what sort of personal/career development and training actions should be taken.

2.13.7. To maintain an open system

• The appraisee should be shown the assessment by the appraising and countersigning
officers before the appraisal interview.

• Countersigning officers are encouraged to complete the appraisal form before the
appraisal interview is conducted; and

• An interview record has to be prepared and signed by both parties.

For training and career development proposals put forward in the appraisal, the grade
management must take the initiative to ensure any necessary follow up actions are taken
in a timely and appropriate manner. These proposals will also provide useful reference for
the supervisors to develop the staff's competencies. Common themes on training and

71
development identified should be consolidated for incorporation into the training and
development plans of the department and the grade.

To ensure consistency in assessment standards and fairness in Operation rating in staff

appraisals, heads of departments/grades may consider if an assessment panel should be set
up. An assessment panel is a management tool to help departments cross moderate
appraisal ratings.

An assessment panel is usually chaired by the head of branch/division or head of grade

with members drawn from section/unit heads. At the start of a reporting cycle, the
assessment panel will meet to discuss the marking criteria and standard. Staff will be
informed of these criteria and standard and clear guidelines will be issued to appraising
officers.

The assessment panel will review the completed reports on the basis of panel members'
knowledge about the Operation of the appraisees. If the assessment panel disagrees with
the assessment of a report, the reviewing officer and the appraising/countersigning officer,
where necessary, may be requested to explain before the panel. Amendments may be made
to the appraisal reports to ensure parity of assessment, if necessary.

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 3. PROJECT

3.1.Objective of the Project – Introduction of the Problem

Primary Objective
To understand the basic features of Operation management plan or Operation assessment
in HCL and their contribution in the success of HCL Info systems Ltd. within a short span
of previous years.

3.1.1. Secondary objective

To identify which of the functional aspects/ Parameters are low and which dysfunctional
aspects/ Parameters are high in order to put some suggestion for increasing the former and
reducing the latter in other words to move from dysfunctional to functional Operation
assessment.

3.2.Significance of the Project

The six weeks of summer training at HCL Infosystems Ltd. gave me a complete exposure
to the organizational work life. It was unique opportunity to explore the realities of India’s
leading companies as a researcher and gather knowledge from its vast repertoire of
experience.

It was great learning experience to know the duties performer, responsibilities taken and
the skill regained by the executives of the organization to reform heir jobs effectively and
efficiently. The project not only helps me to enhance my practical knowledge but it also
help me to understand how Operation management work into the organization and how
executives assess their own employee into the organization.

The summer project, also made me realize the worth of an HR manager. I got to know the
importance of employee assessment and communication and interpersonal skill in getting

73
 things done from other. In a net shell, it was a very fulfilling and fruitful period of my life
as a management student.

3.3.Definition - A Theoretical Perspective

Operation Management is the process of crating a work area setting in which people are
enabled to perform to the best of their abilities. Operation Management is a whole work
system that begins when a job is defined as needed. System includes the flowing actions-

1. Development job description

2. Select appropriate people with an apply selection process.

3. Negotiate requirement and accomplishment based Operation standards

4. Outcomes measures.

5. Provide effective orientation training.

6. Provide ongoing coaching and feedback.

7. Conduct quarterly Operation development discussions.

8. Design effective compensation and recognition systems that reward people for their
contribution.

9. Provide promotional/crier contributions.

10. Assist with exit interviews to understand why valuable employees leave the
organization.

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3.4.Preparation and Planning for Operation management

Much work is invested, on the front end, to improve a traditional employee appreciate
process, Infect managers can feel as if the new process is too time consuming ones the
function of developmental goal is in place however time to an administrator the system
decreases. Each of these steps to taken with the participation and cooperation of the
employee for best results.

3.5.Operation Management and Development

• Define the purpose of the job, job duties.

• Define the Operation goals with measurable outcomes.

• Define the each job responsibilities a goal.

• Define the Operation standards for key components of the job,

• Hold interim discussions and provide feedback abuts employee Operation.

• Maintain a record of Operation through critical incident reports.

• Provide opportunity for broaden feedback. Use 360` Operation feedback system.
• Develop administer a coaching and implement plan if the employee is not meeting
expectation

3.6.Operation Assessment and Development Plan In HCL INFOSYSTEMS

LTD.

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3.6.1. Prior to filling the form please read carefully Instructions to the
Appraiser

• Appraise the employee in related to the positions held during the period under
appraisal.
• Be objective, Avoid any personal prejudice.
• Do not evaluate on the basis of isolated incidents, but base your judgment on the entire
period under review.
• Consider each independently, uninfluenced by the rating given for other factors.

• This from will not be treated as complete and processed further until all selections are
filled up.

3.6.2. Operation appraisal guidelines

3.6.2.1. Appraisal procedure

Operation appraisal encompasses the on-going work-related discussions, which take place
between appraisals and appraisees throughout the year. The formal Operation appraisal
meeting is normally attended by the employee and manager only; but when relevant,
another manager will also participate (e.g. functional head / HR person).

3.6.2.2. The Form And Its Contents

The guide for the Operation / achievement rating is as follows.

Outstanding – Consistently exceeds the requirement of job.

Exemplary Operation - Far exceeds the requirement of job. Growth potential unlimited.

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Very good: - Handle assignments with thoroughness and perfection, effective discharge of
responsibilities to the satisfaction of superiors completes assignment in time. With a little
more initiative could have performed better.

Good: - Just meets the normal requirements of the job, needs substantial improvement in
all areas of work to meet requirement of complete employee.

Not Up to the Expectation - Not likely to meet the requirements of complete employee.

Section 1 : Quarterly Self appraisal forms:

a) General notes on goals /target setting

Key responsibility areas relate to the key result area on going and inherent in the
achievements and Operation again each one. Targets and achievements are also to be filled
after discussing with the manager. Target related to the priority activates normally are
within the key responsibility areas. Target must be agreed between the manager and the
subordinate. Each target should be specified in such a way that it will be clear when it is
met and must include the time frame in which it elements to ensure consistence as
summarized in the acronym SMART (S-specific, M-measurable, A-achievable, Rrelevant,
T-timer related). Although it is anticipated the Operation against the target will be assessed
quarterly, it is responsibilities are reviewed at appropriate in travels every quarterly. The
manager should ensure that at all times the subordinate has a clearly defined set of agreed
Target.

Target for the period under review: -

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In section 1 KRA/ assignment for the period under review should be stated. In some cases
it will be necessary for the objective to be amplified on a separate sheet and this documents
should be referenced on the form..

b) Achievement against Target

Were the target / expectations for the period under review achieved? Comments and
reasons for the success or failure should be given at the end of the review quarter period.

c) Target for the next quarter

At the beginnings of the quarter the target should be decided in Section –1. The aim is to
achieve sustainable improvement in the subordinate’s Operation. Enter the date by which
the target should be achieved.

d) Overall View Of Operation

This is the Appraisee/manager’s view of the overall Operation. Assessment must be made
on the overall rating listed above and in terms of the trend in Operation.

Section – 2 : Annual Appraisal Form

To the filled up by the appraisee at the end of the annual review year.

Section – 3 : Potential And Qualitative Assessment

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The objective is to provide an opportunity to the employee and the manager to discuss the
strengths that the individual brings to the job and examine the limitations, which may
require attention. The aim is to improve Operation and development of the individual.

Section – 4 : Overall Operation / Potential Assessment

Space for other comments by the manager (if required for any issues with regard to
constraints to effective Operation and / or supporting actions to achieve target).

a) Ratings / Final Recommendation

Rating has to be given by the Regional Manager / General Manager / Functional Head after
a through appraisal of the Operation of the employee and in accordance with the parameters
given. Mention if any promotion / salary discrepancy / rewards / movement is
recommended.

b) Signature
The managers and employees should sign the form at the end of the discussion
acknowledging that the objectives of the appraisal have been achieved and emphasizing a
joint commitment to implement and actions agreed upon. Signatures are to confirm that
the form has been read and the key points have been noted.

Section- 5 : Assessment For Development And Growth

Training for improvement and career development the training plan for the employee for
the coming year should be discussed.

The training identification form has to be filled and returned to the HR department. In the
month of the April for the preparation of the training calendar for the forth coming year.

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The manager should return the complete field form within ten days hence from the
completion of the Annual Review period to the HRD Dept. in order to attain consistency
of the appraisal standards and relevant follow – up action.

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4. RESEARCH METHODOLOGY
This project requires a detailed understanding of the concept – “Operation
Management”. Therefore, firstly we need to have a clear idea of what is Operation
Management, how it is managed in HCL Info systems, what are the different ways
in which the financing of Operation is done in the company.

The management of Operation Management involves managing inventories,

accounts receivable and payable and cash. Therefore one also needs to have a sound
knowledge about cash management, inventory management and receivables
management.

Then comes the financing of Operation Management requirement, i.e. how the
Operation Management is financed, what are the various sources through which it
is done. And, in the end, suggestions and recommendations on ways for better
management and control of Operation are provided.

Introduction
The way you approach your question will have a profound effect upon the way you
construct your dissertation, so this section discusses the types of research you might
undertake for your dissertation. The use of literature and case studies is considered and the
merits of primary research are debated and advice is given on the use of existing research
data. You may not be fond of statistics, but the potential relevance of a quantitative
approach should be considered and similarly, the idea of qualitative analysis and
conducting your own research may yield valuable data. The possibilities of using
quantitative and qualitative data are also discussed.

What approach should I take - qualitative or quantitative?

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Your approach, research design, and research question are all connected. 'Approach' means
something more than the type of data you use – it refers to your overall orientation to
research and the type of claims you will make for your study. Dissertations can be based
on either quantitative or qualitative data, or on a combination of both. How you choose this
may depend on your preferences and abilities, and the suitability of particular approaches
to your topic. You need to be able to justify why you have chosen to use such data.
Quantitative data is particularly useful when you wish to discover how common particular
forms of behaviour such as illegal drug use are for a particular age group. Qualitative data
is particularly useful when you wish to find out why people engage in such behaviour.
Think about the Research Methods modules you have taken so far. Think about the different
kinds of studies you have read for other modules. There is plenty of scope to use the
approaches and methods that you are most comfortable with. You need tojustify your
approach and methods and to cite appropriate literature to help you do this.

What if I want to find out about social trends, or the measurable effects of particular
policies?
You will probably want to use large datasets and undertake quantitative data analysis, and
you will be adopting a realist approach to the topic studied. Quantitative dissertations are
likely to be nearer to the lower end of the range of approved lengths for the dissertation
(e.g. if the length is to be 5,000-8,000 words, dissertations based on quantitative analysis
are likely to be closer to 5,000 words in length). They will also include tables and figures
giving your important findings. Remember that all tables must be carefully titled and
labelled and that sources of your data must be acknowledged.

What if I want to record people's views on an issue, and give them a 'voice'?
You will probably want to use in-depth qualitative data, and you may wish to adopt a realist,
a phenomenologist, or a constructionist approach to the topic. Qualitative dissertations will
include descriptive material, usually extracts from interviews, conversations, documents or
field notes, and are therefore likely to be nearer to the upper limit of your word range (e.g.
8,000 words). The types of method suitable for a dissertation could include content
analysis, a small scale ethnographic study, small scale in-depth qualitative interviewing.

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Whether you choose qualitative or quantitative analysis will depend on several things:

• Your preferred philosophical approach (realist, phenomenologist or

constructionist).

• Your skills and abilities with methods of data collection (if needed) and analysis.

• The topic or issue you are interested in.

• How you frame your research question.

Can I combine qualitative and quantitative methods?

There are many ways in which qualitative and quantitative data and analysis can be
combined. Here are two examples.

• You may be interested in doing an analysis that is primarily quantitative, looking at

social trends, or policy implications. However you also want to introduce a 'human
touch' by conducting one or several interviews asking what these trends mean to
people or how particular individuals experience events. After doing your
quantitative analysis, you should include a chapter or section on the qualitative data
you have collected. In your discussion of findings you can use the qualitative data
to help you understand the patterns in the quantitative analysis.

• You may be interested in doing an evaluative case study of a process or policy. You
will have a particular focus – a 'case' that you are looking at. You will triangulate
methods – i.e. collect data in several different ways, and some of these data may be
quantitative. You will analyse each type of data and describe this, and then write a
discussion that shows how each piece of analysis contributes to the overall picture
of what is going on.

Your supervisor or research methods tutor may be able to give you detailed examples of
these or other ways to combine methods.

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Can my dissertation be entirely literature-based?
Yes. If you decide to do a primarily theoretical dissertation, it is almost certain that your
dissertation will be entirely literature-based. This is likely to be the methodology of
theoretical analysis: selection and discussion of theoretical material and descriptive
material, in context, and detailed comparison of theories in terms of their applicability. You
might ask how useful certain concepts or theories are for understanding particular patterns
of behaviour. How useful is the concept of institutional racism? Is objectivity in the media
possible? How useful is subcultural theory for understanding virtual communities? Here,
the focus of attention is not so much to discover something about the social world, for
example virtual communities, as to reach a judgement about the value of key concepts or
theories in understanding that world. How the study is approached and how contrasting
approaches are drawn upon needs to be stated very clearly. A library-based or theoretical
study is not necessarily 'easier' than an empirical study, indeed, it may well be harder.
Remember that theoretical studies, like data-based studies, need to have their research
design spelled out from the start.
But even if your dissertation is more empirically focused, it could still be entirely literature-
based. You might choose to conduct a review of a field of work. What does the research
literature in this field tell us about x? While all dissertations will include a literature review,
it is possible to produce a dissertation that is entirely based on a review of the literature. If
you do this, it is important to review the literature from an explicit angle and identify some
themes to make the review distinctive. You might, for example, explore empirical debates
in your chosen field across different countries or time periods.

What is case study research?

Whilst it is possible for dissertations to be entirely literature-based, the most common form
of dissertation takes the form of a case study. Here the focus of attention is on a particular
community, organisation or set of documents. The attraction of this kind of dissertation is
that it stems from empirical curiosity but is at the same time practical. You may be
interested in a wider question but a case study enables you to focus on a specific example.
A major challenge in case study dissertations is connecting your own primary research or

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re-analysis with the broader theoretical themes and empirical concerns of the existing
literature.

What's an empirical study?

Most dissertations demand either primary or secondary research. In other words, you
usually have to analyse data that you have either collected yourself or data that is already
available. The reason for this is that the questions dissertations usually address take the
following form: Is x happening? Is x changing? Why is x happening? Why is x changing?
These questions demand primary or secondary analysis of data.
Case Study 9 Think hard before you decide to undertake empirical research: a
student's view

What is secondary analysis?

Secondary analysis is when you analyse data which was collected by another researcher. It
allows the researcher to explore areas of interest without having to go through the process
of collecting data themselves in the field. The problem with using fieldwork methods in an
undergraduate dissertation, however, is that they are costly in terms of time (which is
relatively scarce in your final year!) and possibly your own financial resources too. You
may choose, therefore, to undertake secondary research, analysing existing data.

Where do I find existing research data?

There are a range of documents that already contain research data that you can analyse.

You may, for example, be interested in exploring whether gender stereotypes in the media

are changing. This might entail content analysis of newspapers, magazines, video or other

media over different time periods. Here you would not be collecting your own data but

instead would be analyzing existing documents.

Collecting you own data - primary research

Quantitative data may also result from non-participant observations or other measurements

(e.g. in an experimental design). Also, sometimes data that are collected through qualitative

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processes (participant observation, interviews) are coded and quantified. Your research

methods tutor can give you further information on these types of data, but here are some

common quantitative data collection methods and their definitions:

A series of questions that the respondent answers on their own.

Selfcompletion questionnaires are good for collecting data on relatively simple topics, and
for gaining a general overview of an issue. Self-completion
Questionnaires need to have clear questions, an easy to follow design,
questionnaires and not be too long.

Structured Similar to a self-completion questionnaire, except that the questions interviews

that are asked by an interviewer to the interviewee. The same questions are read out in the

same way to all respondents. There will typically be a fixed choice of answers for the

respondents.

Watching people and recording systematically their behaviour. Prior to

Structured the observation, an observation schedule will be produced which observation

details what exactly the researcher should look for and how those

observations should be recorded.

If you are conducting a qualitative analysis you are likely to wish to use at least some

original material. This may be collected through in-depth interviews, participant

observation recordings and fieldnotes, non-participant observation, or some combination

of these. Below are some data collection methods that you might want to use for your

dissertation:

A way of asking questions which allows the interviewee to have more control

of the interview. The interview could be semi-structured, which uses an

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 interview schedule to keep some control of the interview, but also allows for

some flexibility in terms of the interviewee’s responses. The interview could

be unstructured, here the aim is to explore the

In-depth interviewee’s feelings about the issue being explored and the style of interviews
questioning is very informal. Or the interview could be a life history where the interviewer
tries to find out about the whole life, or a portion of the person’s life.

Focus groups A form of interviewing where there are several participants; there is an

emphasis in the questioning on a tightly defined topic; the accent is on

interaction within the group and the joint construction of meaning. The

moderator tries to provide a relatively free rein to the discussion.

This involves studying people in naturally occurring settings. The Participant

researcher participates directly in the setting and collects data in a observation systematic

manner. The researcher will observe behavior, listen to

conversations, and ask questions.

Spend some time looking at general books about research - they will give you an overview

of the data collection methods available and help you to make the best choice

for your project. Bryman (2004) would be a useful starting point. For any piece of research

you conduct, be it empirically based (quantitative or qualitative) or library based, its

methods must be justified. You need to show in the final dissertation how you have given

consideration to different methods, and why you have chosen and eliminated these.

STUDENT VOICE: Findings from our research

In our study, supervisors saw part of their role as someone who draws out students’ reasons

for choosing a particular research approach. Often in early supervision meetings they ask

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students to justify their reasons for choosing a library-based or an empirical study. (Todd,

Smith and Bannister 2006, p167).

Your supervisor will want you to offer convincing reasons as to why you’ve chosen the
approach you have - so be ready!

If you’re having difficulty making that choice, don’t be afraid to ask your supervisor for
their advice. This was particularly useful for one of our respondents:

STUDENT VOICE

It's been a valuable experience for me it's so different from other stuff. With other essays
you can rush them if you have to ... but this is so much work, you can't rush it. It demands
more. (Todd, Bannister and Clegg, 2004, p340)

….My reasons for data collection is literature based as my research question involved
sensitive subjects which would have been unsuitable for primary data collection. (Level 6
students at Sheffield Hallam University)

I chose primary data because it would enable me to build skills that would be useful for
postgraduate study. (Level 6 students at Sheffield Hallam University)

It will involve primary data, secondary data, quantitative and qualitative research methods,
lit reviews, theory and policy studies and an exploration of alternatives. My dissertation is
to be based around the experience of 'poverty', as poverty is the experience. Theories and
policies are not. However, to do justice to the subject, theories and policies will be included
so Iam able to demonstrate where failures in the system may exist.
(Level 6 students at Sheffield Hallam University)

Note: Research must be conducted in a sensible and ethical manner; data must be analysed
and presented in a rational manner. It is important that students do not expose themselves
or others to dangers or risks when conducting research. Students need the approval of their

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dissertation supervisor before embarking on any type of fieldwork (see the section on
Research Ethics for more information).

Will my research be inductive or deductive?

In general, deductive research is theory-testing and inductive research is theorygenerating.
Often people link deductive research with quantitative experiments or surveys, and
inductive research with qualitative interviews or ethnographic work. These links are not
hard and fast – for instance, experimental research, designed to test a particular theory
through developing a hypothesis and creating an experimental design, may use quantitative
or qualitative data or a combination. If your research starts with a theory and is driven by
hypotheses that you are testing (e.g. that social class background and social deprivation or
privilege are likely to affect educational attainment), it is, broadly speaking, deductive.
However much research combines deductive and inductive elements.

What's all this about research design?

Research design is vital to conducting a good piece of work. At the start of your research
you need to set down clearly:

• Your research focus and research question.

• How you propose to examine the topic:

o approach

o methods of data collection o methods of data

analysis

• The types and sources of information you need.

• How you will access these sources of information (be they people, existing datasets,
biographical accounts, media articles or websites, official records).

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 • The proposed outcome of this research (in your case, a dissertation) and the form it
will take.

• A time-frame for all this.

You and your supervisor will discuss your design and decide whether the research is
'doable'. Your university may require you to produce a report (e.g. an 'interim framework
report' or a short 'research proposal') that specifies your research design. Other people may
have to look at the design to ascertain whether there are ethical issues that affect your
research.

Summary

• Quantitative or qualitative? A quantitative approach will mean you will need

substantial datasets, as well as the inclusion of tables and statistics in your final
submission. This information could come from a variety of sources - remember to
acknowledge them! A qualitative approach will probably mean conducting
interviews or focus groups or observing behaviour. Ask yourself if you are prepared
to do this, and think about the best way of getting the answers you want from
people. Will you stop people in the street? Will you conduct telephone interviews?
Will you send out survey forms and hope that people return them? Will you be a
participant or non participant observer?

• Deductive or inductive? Deductive research is theory-testing, which is often

linked to datasets, surveys or quantitative analysis. Inductive research is
theorygenerating, and is often linked to qualitative interviews.

• Empirical or theoretical? An empirical study could involve close analysis of

statistics or some form of qualitative research. However, a theoreticalstudy brings

its own challenges, and you may be called upon to compare theories in terms of
their applicability.

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 • Once you have decided upon your approach, you can write out a research design,
i.e. how you are going to approach the project.

• Now look a little at the research methods that you have studied. Apart from
matching your research to your general sense of objective/subjective reality, it is
important to ensure that you match your methodology to the problem you are
pursuing.

• What kind of data do you need to answer your question/test your hypothesis? How
would you best be able to collect that data?

• Again, consider time and feasibility of the exercise. The ability to manage your
time will be directly related to your ability to control the boundaries of the study –
especially if it is closely linked to your workplace.

• Now that you have got so far, try to write up your research proposal as far as you
can. Make sure that you identify where your proposal needs further work and, at
the same time, where you will have to put your maximum effort. It may be helpful
to draw a critical path so that you are clear which actions you need to take and in
what sequence. You will find it helpful to plot your research questions on the chart
on the next page and ensure that your plans for collecting data really answer the
question as well as avoiding ethical problems.

• At this stage you must be really ruthless with yourself. How viable is it? What are
the threats to the study? Try some 'what if?' questions on yourself. It will be better
to go back to the drawing board now, than once the project is underway.

• IMPORTANT: Whatever approach you settle on, you MUST be able to justify its
appropriateness to your topic and question.

Key Questions

• Does the data required to answer your question already exist or will you have to
generate your own data?

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• Can you combine quantitative with qualitative methods? e.g. a survey which
includes interviews or a case study that looks at a situation from numerous angles.

• What factors may limit the scope of your research? (time, resources, etc.)

• Which method(s) best suit the questions and time you have available to do this
study?

• Do you know the differences between types of data, and types of analysis?

• Does your project have clear links between theory and practice?

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4.1.Research Design

In general terms research methodology is the process of carrying out research in a

formalized and scientific way. It is one manner in which one proceeds with his research

design adopted. The research done is exploratory and analytical in nature. The major

emphasis in studies was on discovery of new ideas and insights. Research is done as

Firstly to understand the concept of Operation management.

• What is the area of Operation management?

• How it is being implemented in HCL?

• What is the assessment process of Operation management?

• Did questionnaire survey with the sample size of 30.It was conducted for three main
departments-Sales, Support and Service?

• Did analysis and prepared Column charts according to the questionnaire survey
response?

The assessment is then done to bring out what is the process being followed in HCL
Infosystems Ltd. regarding Operation management.

4.2.Data Collection Method

a. Secondary Data - It refers to the data that has already been collected, the secondary
data, which has been used to carry out this study, are as follows:

* Operation assessment and development plan manual.

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 * Company’s Internet site (www.hcl.in) * Other relevant study
materials and websites.

evidence, in the form of a hypothesis test, indicates otherwise — that is, when researcher has
a certain degree of confidence, usually 95% to 99%, that the data does not support the null
hypothesis. It is possible for an experiment to fail to reject the null hypothesis.

H0 = the null hypothesis

Assumption: The Operation Management System in HCL Infosystems is not effective.

4.3.Analysis of PMS – Processes & Components

4.3.1. Planning

In an effective organization, work is planned in advance. This includes setting Operation

expectation and goals for individual in order to channel effort towards achieving the
organizational objectives. Involvinng employee in planning process is essential to their
understanding of the goals of the organization, what needs to be done, why it needs to be
done, and expectation of accomplishing the goals.

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 The PMS in terms of planning in HCL fairs around average, where they need to put
planning system in a very scientific way. They need to design the entire planning session
taking into consideration the aspiration and need of the people whose Operation needs to
be planned.

4.3.2. Monitoring

Designing effective feedback into a Operation management programme will improve

individual and team Operation and will make your organization more effective. With
effective feedback process, employees can see their progress and that motivates them to
reach their Operation goals effectively.

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 The PMS of HCL stand in between for monitoring, where they need to develop a feedback
channel into the system, which will capture the feedback in holistic way and must be part
of organizational culture.

4.3.3. Developing Employees

Providing employees with training and development opportunities encourages the good
Operation, strengthen job related skills and competencies , and help employee keep up with
changes in the work place.

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 The Employee development in HCL is fairly better, where the feedback from PMS is
implemented by the way of training and development. Where the organization equips
people with the skill which will be required in future.

4.3.4. Rating

Within the context of formal appraisal Operation requirement, rating means evaluating the
employee Operation against the element and standard in an employee Operation appraisal
plan and assigning a rating of record.

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The rating of Operation appraisal system in HCL is satisfactory , ratings are more objective
for sales , which people in service and support don’t view as more subjective.

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4.3.5. Action Based Operation

A Basic principle of effective management is that all behavior is controlled by its

consequences. Those consequences should be both formal and informal and both positive
and negative. Positive consequences include rewards and recognition.promotion.Negative
consequences means may include counseling, reassigning, removing or downgrading.

The PMS in HCL fairs in terms of action based Operation. HCL administers positive and
negative consequences with apt.

4.3.6. Analysis

If we look at the following graph, which measures the effectiveness of PMS in HCL, we
find out that it is quite effective and are continually achieving the purpose of enhanced
Operation.

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4.3.7. Effectiveness

Sign of a good system is that, it achieves what it has been designed to achieve. The principle
of execution achieves the end with best means and delivers the best result.

The effectiveness score of HCL is fairly high where the employees seem to be happy with
current PMS system .HCL need to work for sales, where they need to design the new PMS
system.

The PMS of HCL is very effective on action based Operation and developing employees,
which clearly shows that as an organization HCL is highly progressive organization which
continually develop people and provides negative and positive feedback.

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 While, it need to work in the area of planning, monitoring and rating , where they have to
get into more systematic and have a separate session on planning , mid year review , and
need to teach appraiser how to provide rating objectively. They need to plan and devise
KRA sessions for each employee by taking an objective of getting all the KRA in Month ,
which need to discussed jointly and must be agreed between the Appraiser and Appraisee

5. RECOMMENDATIONS

5.1.Recommendations

1. Though the employees are free in all respects, there should be more Employee
Empowerment.

2. Employees should be encouraged to do work creatively and innovate to improve the

growth rate of organizations.

3. While posting employee in different departments their personal choices should also be
taken into consideration.

4. Executives must be given jobs where they are creative rather than following orders of
the boss and obeying them willingly.

5. The career growth of employees should be planned on the long-term basis.

6. The (candidates) not considered for promotion, should be informed about their
weaknesses so that they can work on it.

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7. Separate session on planning the KRA should be taken up and must be discussed and
signed jointly between the appraiser and the appraisee.

8. HCL should introduce mid year review into the system and must rate the employee and
provide them with necessary training and development.

6. CONCLUSION

HCL Infosystems Ltd. though seems to be an open organization but has a conservative
approach towards its Operation management policies. There are many worker policies
provided for them. Besides this, their policies are quiet rigid.

There is no proper formation of grievance cell. Only basic amenities are being provided to
workers. Thus the strengths and weaknesses of the organization can be listed below.

Strengths

• High concern for excellence in Operation.

• Continuous development of workforce.

• No place for displacing personnel power.

• A strong desire for making an impact on others for the well being of the
organization.
• A good teamwork.
• A desire to change adverse situations.
• Under utilization of decision-making power.
• Rigid hierarchy level.

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.

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