SUMMER TRAINING REPORT
on
EROS GROUP
PERFORMANCE MANAGEMENT SYSTEM
Submitted in partial fulfilment of the requirements of the two year
Post Graduate Programme (PGP).
Submitted by
AMIT DAHIYA
Roll No: PGP20095160
Batch: 2009-2011
IILM Institute for Higher Education
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SIP REPORT
DECLARATION FORM
I hereby declare that the Project work entitled,
PERFORMANCE MANAGEMENT SYSTEM (write the title in Block Letters) submitted by me for
the partial fulfillment of the Post Graduate Program (PGP) to IILM Institute for Higher
Education, is my own original work and has not been submitted earlier either to IILM or to any
other Institution for the fulfilment of the requirement for any course of study. I also declare
that no chapter of this manuscript in whole or in part is lifted and incorporated in this report
from any earlier / other work done by me or others.
Place :
Date :
Signature of Student
Name of Student: _AMIT DAHIYA
Address: RZ-589 GOPAL NAGAR NAJAFGARH NEW DELHI-43
ACKNOWLEDGEMENT
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I owe a great many thanks to a great many people who helped and
supported me during the writing of this book.
My deepest thanks to Lecturer, [Mrs.VANADANA
SRIVASTAVA] the Guide of the project for guiding and correcting
various documents of mine with attention and care. He has taken pain to
go through the project and make necessary correction as
and when needed.
My deep sense of gratitude to [MR.SUKHPAL SINGH] (HR
MANAGER),[EROS GROUP] support and guidance. Thanks and
appreciation to the helpful people at [EROS GROUP], for their support.
I would also thank my Institution and my faculty members without
whom this project would have been a distant reality. I also extend my
heartfelt thanks to my family and well wishers
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PREFACE
The project is about the performance management
system of the Eros group.It explains the present system
maintained in the service industry and its defects. It
also finds the loop holes in the system and how can
they be filled.Many different ways are suggested
through this project research to enhance the efficiency
of the system.This was possible through the help of my
seniors. All the recommendations given for the
improvement of the system are very practical and
applicable. It was a great experience for me to work in
this company.
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TABLE OF CONTENTS
Industry Study 6
Organization Structure 16
Financial Profile of Company 17
Products & Services 18
Clients 20
Introduction 21
Statement of Problem 22
Objectives 23
Methodology 24
Results / Findings & Analysis 27
Conclusion & Recommendation 28
References.
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INDUSTRY STUDY
The country’s core sector, comprising six key infrastructure industries,
accelerated by 5.1 per cent year-on-year in April 2010, compared with
3.7 per cent in April 2009, according to the data released by the Union
Ministry of Commerce and Industry. The growth was primarily led by
an increase in the production of cement, which stood at 18.87 million
tonnes (MT), compared to 17.36 MT during April 2009.
Electricity production grew by 6 per cent in April 2010, as against 6.7
per cent in the same month of the previous fiscal. Finished steel
production registered a growth of 4.7 per cent during the month,
against a decline of 1.3 per cent in the corresponding period of 2009.
Among other industries, production of crude petroleum rose by 5.2
per cent, as against minus 3.1 per cent, while production of petro-
products registered an increase of 5.3 per cent, as compared to a
contraction of 4.5 per cent during April 2009.
Infrastructure investment in India is set to grow dramatically. As per
Union Minister for Finance, Mr Pranab Mukherjee, India would
require to develop a rupee-denominated long-term bond market for
funding the infrastructure sector that requires an investment of
around US$ 459 to US$ 500 billion by 2012.
Further, investment in the infrastructure sector is expected to be
around US$ 425.2 billion during the Eleventh Five Year Plan (2007-12),
as against US$ 191.3 billion during the Tenth Plan. Meanwhile, private
investment into the sector is also projected to increase to US$ 157.3
billion in the Eleventh Plan, as compared to US$ 47.84 billion in the
Tenth Plan. This investment is likely to be fulfilled through public-
private-partnership (PPP) projects that are based on long-term
concessions.
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Clearance has been given to nine new investment proposals of around
US$ 1.05 billion by the State Level Single Window Clearance Authority
(SLSWCA). Out of these nine proposals, five were from the cement
sector, two for setting up aluminium conductor units, and one each
for developing a petroleum coke plant and a maize processing unit.
Meanwhile, a committee on infrastructure under Prime Minister Dr
Manmohan Singh will conduct quarterly review of development of
power, road, ports, civil aviation and railways sectors, announced the
Planning Commission of India recently. Further, the cabinet
committee on infrastructure (CCI) will handle specific infrastructure
cases that may require necessary policy correction or solving issues
affecting projects.
Notably, truck sales, a key indicator of goods movement, registered a
growth of 74 per cent during May 2010, as per the data released by
the Indian Foundation for Transport Research and Training (IFTRT).
The increase in the demand for cargo transportation from the
agricultural and manufacturing sectors was one of the contributing
factors in the increase in the truck sales.
In order to develop eco-friendly infrastructure for new cities in the
Delhi-Mumbai Industrial Corridor (DMIC), Japan-based consultants
such as Nikken Sekkei, Mitsubishi and IBM Japan would work along
with DMIDC and three state governments. The project, expected to be
completed by 2018, as per Mr Anand Sharma, Union Minister for
Commerce and Industry is “by far the world’s biggest infrastructure
project.”
Ports
The major ports in India handled 45.8 million tonnes cargo in February
2010, as compared to 45.2 million tonnes in February 2009. The cargo
growth during April-February 2010 registered an increase of 5.5 per
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cent as compared to the corresponding period in the 2009 fiscal, as
per data released by the Indian Ports Association (IPA).
The annual combined capacity of the major and non-major ports in
the country will be 1.5 billion tonnes by 2012, stated by Minister of
Shipping, Mr G K Vasan, while speaking at the Logistics Outsourcing
Summit organised by the Confederation of Indian Industry (CII).
The Union Cabinet has given the approval to the Shipping Ministry for
declaring Andaman and Nicobar ports as major port, stated Union
Minister of Shipping, Mr G K Vasan.
The Cabinet Committee on Infrastructure (CCI) has approved a
proposal to develop the fourth container terminal at the Jawaharlal
Nehru Port (JNPT), the country's busiest port, at an estimated cost of
US$ 1.44 billion. The government also cleared a proposal to build
standalone container handling facility at Mumbai port at a cost of US$
129.6 million. The project would be implemented within two years
from the date of the award of the project.
Airports
The domestic airlines flew about 4.78 million passengers in May 2010,
an increase of almost 22 per cent over the number carried in the same
period in the previous year.
The Union Minister of State for Civil Aviation, Mr Praful Patel, stated
that the country will become the top-five civil aviation markets in the
world in the next five years. India is the ninth largest civil aviation
market in the world at present.
The Airports Authority of India (AAI), the agency responsible for civil
aviation infrastructure, is likely to spend over US$ 1.01 billion on the
modernisation of non-metro airports in the current year.
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Aircraft manufacturing companies, Boeing and Airbus, remain upbeat
over India's aviation growth potential. Airbus has forecast that India
will need 1,032 new aircraft worth US$ 138 billion by 2028, while
Boeing has forecast that the country will require 1,000 aircraft worth
US$ 100 billion over the next two decades.
Mumbai Airport posted its highest ever monthly passenger traffic in
its history in December 2009. According to Mumbai International
Airport (MIAL), the Chhatrapati Shivaji International Airport (CSIA)
saw a record 2.53 million passengers in December 2009. This number
is the highest-ever passenger volume handled by the airport in its
history, with the previous high standing at 2.38 million passengers in
January 2008.
The government has mandated MIAL with the task of upgrading and
modernising CSIA, which is a joint venture between the Airports
Authority of India and the GVK-SA consortium.
Railroads
During the first month of the 2010-11 fiscal, the Railways reported an
increase of 9.69 per cent in its total earnings at US$ 1.62 billion, as
compared to US$ 1.5 billion in the same month last fiscal. The
Railways garnered US$ 459 million in total passenger earnings in April
2010, compared to US$ 411.6 million in April 2009.
According to the Department of Industrial Policy and Promotion
(DIPP), the foreign direct investment (FDI) inflow into railways related
components has been US$ 109.56 million from April 2000 to March
2010.
Roads
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An in-principal approval for converting 10,000 km of state roads to
national highways has been given by the Empowered Group of
Ministers (EGoM). It is estimated that around US$ 3.3 billion would be
required over the next five years to undertake this project.
Further, the Cabinet Committee on Infrastructure (CCI) has approved
four highway projects of about US$ 543.8 million on June 10, 2010.
These projects would cover states such as Gujarat, West Bengal,
Bihar, Uttar Pradesh and Madhya Pradesh.
Anil Dhirubhai Ambani Group (ADAG)’s flagship company Reliance
Infrastructure Ltd (R-Infra) won a US$ 197.3 million project from the
National Highways Authority of India (NHAI). It is the tenth road
project it won from the NHAI.
Earlier, R-Infra won a US$ 218.3 million road project from the Gujarat
government, within a week after winning the US$ 380 million Pune-
Satara Road project from the National Highway Authority of India
(NHAI). The project is to execute a 71 kilometre four-six lane corridor
connecting the ports of Mundra and Kandla in Gujarat.
Recently, the elevated expressway between Silk Board junction and
Electronic City junction, built for US$ 165.5 million, was opened to
public use. A consortium comprising Soma Enterprise Ltd, Nagarjuna
Construction Company and Maytas Infra Ltd constructed the 9.985 km
long elevated road project. The project, executed through a special
purpose vehicle, Bangalore Elevated Tollway Ltd, was built on a build
operate transfer basis for the NHAI.
Investments
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The infrastructure sector seems to have emerged as a favourite for
the private equity (PE) in 2010. According to Venture Intelligence
data, so far in 2010, there have been 19 deals in this sector at an
approximate investment of US$ 1.1 billion, as compared to 14 deals
with an investment of US$ 257.5 million during the same period last
year.
JSW Energy (Bengal) Limited, a special purpose vehicle (SPV) for the
Bengal power and coal project, plans to invest around US$ 423.6
million in coal mine development.
Sembcorp Utilities, a Singapore-based company, has bought 49 per
cent stake in Thermal Powertech Corporation India Ltd, a SPV and
subsidiary of Gayatri Projects Ltd, for US$ 235.1 million.
An investment of around US$ 425 million has been made by a
consortium of investors led by Morgan Stanley Infrastructure Partners
along with Goldman Sachs Investment Management, General Atlantic
LLC (GA), Everstone Capital, Norwest Venture Partners and others in
Asian Genco Pte (AGPL), an infrastructure company.
Larsen & Toubro (L&T), the country’s largest engineering company,
will invest around US$ 5.46 billion to build its thermal power business
in the next five years. L&T Power, the wholly-owned subsidiary of
L&T, will have a generation capacity of 5,500 MW, including hydro
power, by 2015. Larsen and Toubro Ltd also formed a joint venture
with Malaysia-based SapuraCrest Petroleum to install pipelines and
construct offshore rigs and platforms in India, the Middle East and
South East Asia.
Tata Power has lined up investments of US$ 5.19 billion for its
upcoming plants in Mundra, Maithon and Jojobera over the next
three years. Tata Power and Reliance Power are coming up with
UMPPs with a combined generation capacity of close to 16,000 MW.
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Jindal Steel & Power, which has a production capacity of 1,000 MW,
plans to add another 4,380 MW thermal power and 6,100 MW hydro
power capacity in the next five years.
Government Initiatives
The infrastructure finance companies (IFC) are being included in the
category of non-banking finance company (NBFC) by the Reserve Bank
of India (RBI). The IFCs would require a capital adequacy ratio of 15
per cent and the similar criteria of NBFCs would be applied to IFCs as
well. Further, RBI stated that at least 75 per cent of the assets of these
institutions should be used in infrastructure and their net owned
funds should be US$ 64.6 million or more.
While presenting the Union Budget this year, the Finance Minister has
announced the allocation of US$ 37.7 billion, around 46 per cent of
the total plan outlay of US$ 81 billion for 2010-11 to infrastructure
sectors. In the last fiscal, this proportion was about 30 per cent.
The Government of India has envisaged capacity addition of 100,000
MW by 2012 to meet its mission of power to all. Recently, a
ministerial group discussing large power plants with a capacity to
generate 4,000 MW of power has approved, in principle, a proviso
requiring such plants that will be awarded in the future to use local
power generation equipment. The move is expected to provide a fillip
to domestic manufacturing. The decision on so-called ultra mega
power plants, or UMPPs, will also benefit domestic power generation
equipment manufacturers such as state-owned Bharat Heavy
Electricals Ltd (Bhel) and Larsen and Toubro Ltd (L&T), which has a
joint venture with Mitsubishi Heavy Industries Ltd (MHI) of Japan. At
least three joint ventures, between Toshiba Corp. of Japan and JSW
Group; Ansaldo Caldaie SpA of Italy and GB Engineering Enterprises
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Pvt. Ltd; and Alstom SA of France and Bharat Forge Ltd are looking to
start manufacturing power equipment in India.
Further, the government is also implementing the National Solar
Mission, aimed at setting up 20,000 MW of solar power capacity by
2020.
The Asian Development Bank (ADB) has approved a financial
assistance for US$ 200 million under the Assam Power Sector
Enhancement Investment Programme. The project has some
innovative features like franchisee-based distribution, off-grid
electrification with renewable energy, reduction in CHG emissions
through efficiency gains.
The road transport and highways ministry has proposed priority
sector status for road development, allowing private highway
developers more funds from banks.
Exchange rate used:
1 USD = 45.02 INR (as on May 2010)
1 USD = 47.03 INR (as on June 2010)
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ABOUT EROS GROUP
EROS GROUP, a company, which needs no introduction! The
real estate giant in India with special strength in and around
Delhi, exuberates quality and excellence with over half a
century of expertise and experience. It has created some of
the most pioneering episodes of real estate promotion and
town planning for a period of over 50 impressive years.
With transaction of properties worth Rs.13000 in 1940s,
currently the group has projects worth over 1000 crores in
the pipeline.
From a very modest beginning to the accomplishment of
numerous projects in varied sectors. The group has left
an indelible mark in the real estate industry and
technology. The different projects under the Eros group's
crown - in residential sector ( well known townships like
Charmwood Village, Eros Garden, and Lakewood City over
200 acres at the southern fringe of Delhi and theatres like
Vishal Cineplex at Rajouri Garden with maximum seating
capacity in Delhi,
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Eros Cinema in Jangpura, New Delhi, a futuristic multiplex
(under construction ), business centres ( International Trade
Tower, American Plaza, Corporate Tower with multi-storey
parking in Nehru Place, at par with the best in the world )
and hospitality industry ( 5 star deluxe hotel
Intercontinental Eros and Hotel Shangri-La at Connaught
Place - city's most prestigious 5 star deluxe hotel ) - are an
absolute spectacle of immaculate architecture.
With more than six decades as a leading maestro in real
estate promotion and town planning, the Eros Group ranks
as the natural choice for smart decision makers like you.
With Eros Group one can take excellent complex
environment for granted.
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ORGANISATIONAL STRUCTURE
Mr. J.R. Sood
Founder of the Eros Group of Companies, a diverse multi faceted
Rs.5000 crore family owned entity with a primary business focus on
Hospitality, Real Estate, Family Entertainment Business, Mr. J. R. Sood,
has a simple yet strategic corporate philosophy, " slow and steady wins
the race." The chairman believes in gradual and consistent growth as
the foundation of every successful venture. It is on this platform that
fast tracked activities take place.
Mr. J. R. Sood has been instrumental in making the Eros Group, one of
the most trusted names. Having started operations in 1940 in Lahore
and then moved to India, Mr. J. R. Sood has been instrumental in
making the Eros Group, one of the most trusted names in its core
business activities, being real estate development, five - star hotels,
residential buildings, cinemas, commercial complexes and shopping
plaza's. The group has dedicated and diverse professional management
in place who manage few of the biggest wealth generating business
models along with quality human resource of over 800 employees.
Mr. J. R. Sood started the India operations with a humble beginning, the
acquisition of Eros Cinema and ever since then the company has
witnessed increasing fortunes in all their projects. From the 1990's
when it hit the limelight with the completion of the up - market
Charmwood Village, With up market residential continuum called Royal
Retreat, the hotels InterContinental Eros, and hotel Shangri - La New
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Delhi, the Eros Corporate Tower, to the upcoming Eros MarketPlace, till
now, Mr. J. R. Sood has continued to spear head the operation believing
the
"analyzing and taking important decisions of the companies give not
only immense pleasure but also the confidence to take decisions. The
strategy has always been to grow and spread within the family itself."
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PRODUCTS AND SERVICES
• Eros Group is in Real Estate and Constructions business from last
more than 60 years and has built many residential / commercial
projects in Delhi and NCR.
Eros Group is in Hospitality industry also with two prestigious five
star hotels like hotel Intercontinental Eros at Nehru place and
Hotel Shangri - La at Cannaught place with its name and two more
hotels are coming soon in Delhi and Faridabad
• Eros Group is also in entertainment business with cineplexes like
Vishal Cineplex and Eros cinema. Two prestigious Malls like EF3 at
Faridabad and Eros MarketPlace are coming soon. Eros Group
has created some of the most innovative chapters in real estate
promotion and town planning for an impressive 60 years. A
leading corporate house, it has deep interests in Real Estate
Development, having developed townships and housing projects
in and around Delhi . The Group's landmark projects in the
residential sector include Charmwood Village, Lakewood City and
Rosewood City.
• International Trade Tower makes the 'Eros' presence felt in the
corporate sector. Apart from these renowned landmarks, The Eros
Group has many other challenging projects currently in hand.
These include the recently acquired Hotel Shangri-La at
Connaught Place and Eros Corporate Towers , a one-of-its-kind
sixteen storeyed tower with an interconnected seven-storeyed
car parking, at Nehru Place .
With each successful foray, Eros Group has been translating many
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a dreams into reality. Today Eros Group is a force to reckon with,
with its proven track record of maintaining high standards of
quality, safety and futuristic planning
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OUR CLIENTS
McDonald's
Thai Airways
Unocol Bharat Services
Gold Star»
Hero Motors
Shell India
Westling House
Data Access India Ltd
Pentasoft Communication Ltd
National panasonic India Ltd
Mafatlal Industries Ltd
Trade Offices Of Luxembourg
Bhushan Steels & Strips Ltd
Indusind Bank
Subway
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INTRODUCTION
THE PROJECT IS ABOUT THE CURRENT
PERFORMANCE SYSTEM OF THE EROS
GROUP.IT DEALS ABOUT THE
PROBLEMS IN THE PMS AND THE
RECOMMENDATIONS THAT CAN
IMPROVE THE COMPANIES CURRENT
PMS.EACH ASPECT OF THE PMS IS
BEING BRIEFLY OBSERVED AND
CONCLUDED IN THIS PROJECT.
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STATEMENT OF PROBLEM
THE PRESENT PERFORMANCE APPRAISAL SYSTEM IS :
(a) ANNUAL
(b) TARGETS ARE NOT SET IN ADVANCE
(c) BACKWARD WORKING WHILE APPRAISING
THE PERFORMANCES.
(d) FOCUS IS TO DECIDE INCREMENTS AND
PROMOTIONS ONLY
(e) SUBJECTIVE
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OBJECTIVE
TO INTORDUCE A NEW PERFORMANCE MANANGEMENT SYSTEM
WHICH IS :-
• QUARTERLY
• KRAs AND TARGETs BASED
• FOCUSED ON PERFORMANCE
• OBJECTIVE INCREMENTS AND PROMOTIONS
• ORGANISATIONAL NEED-BASED TRAINING
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METHODOLOGY
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KRA SETTING PROCESS
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AREAS OF SETTING TARGETS
QCDSM
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RESULTS
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CONCLUSIONS AND RECOMMENDATIONS
CLOSE & REGULAR MONITORING OF
PERFORMANCE.
MID-COURSE CORRECTION IS DONE.
KRAs & TARGETS REVISITED IF
REQUIRED.
ONE BAD QUARTERLY PERFORMANCE
NOT REFLECTED
IN THE NEXT QTR IF
IMPROVEMENTS TAKE PLACE.
PERFORMANCE IS MANAGED AND NOT
APPRAISED.
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TARGETS SHOLD
BE…….
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CHECKPOINTS FOR GOOD TARGET SETTING
Are the goals challenging & stretching?
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REFERENCES
www.google.com
www.erosgroup.com
www.wikipedia.com
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