Performance Management System (PMS)

PMS is a key process for measuring employees performance and facilitating employee development in the organization. The process intends to appraise past performance and plan for future development in terms of skills and abilities needed to move the individual to achieve higher levels of performance. The purpose of the appraisal system is to enable the employee focus on his/her role objectives, performance against these objectives and the overall impact of it on the organizational goals. The effectiveness of the process will depend on how well leaders are able to implement it within the organization. The PMS therefore intends to achieve the following five objectives for the employees: A clear understanding of their roles. A clear agreement of the deliverables in a given time frame.

Articulating a clear action path proposed to reach the objectives agreed upon. Joint assessment of performance with supervisor Identification of the future path/action plan for the next appraisal period

The PMS operates on the following basic principle :

Organization defines its " Mission " From the organization mission, the " Strategic-Business-Goals " for a given period (1year) are defined. Achievement of the Strategic Business Goals is possible with specific and defined " Functional/ Departmental Goals " Functional Goals have to be broken up further to " Team-Goals" Achievement of Team-Goals take place by the team members agreeing to deliver their individual " Key Performance Indicators" (KPIs). Achievement of KPIs takes place through " Action Plans " with clearly defined activities against agreed time lines.

It is necessary to engage in a formal appraisal process once a year. However, to ensure dialogue between the appraiser and the appraisee in a formal setting it is highly advisable to periodically review the progress made on the KPIs defined. The objective of these reviews is to share progress made on accomplishment of tasks, identification of developmental inputs, support needed and to spur on performance by reinforcing desired behaviour and counseling negative traits. Such a dialogue will help build trust and confidence among employees and remove discontentment arising out of ambiguity on tasks accomplished.
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THE PERFORMANCE APPRAISAL PROCESS : In the 1st week of January / 1st week of joining, (as applicable), every employee will receive a Performance Appraisal Docket from HR containing the Performance Appraisal form for the year. The docket will remain in the custody of the respective HOD through the year and it will be the responsibility of the appraisee & appraiser to ensure that the appraisals occur as per the process defined. New recruits will adhere to the same process from their date of joining. All employees who have joined in till June 30th will be eligible to be considered in the PMS process for that year. PROCESS STEPS : Key Performance Indicators From the role purpose will flow a set of statements of the key result objectives for the job. These are key outcomes expected from the job which will impact the overall organizational objectives. Overall organizational objectives or goals being defined as

Ability to close pre decided targets on or before time Ability to critically analyse all areas of present function and suggest improvements Employee Satisfaction Customer Satisfaction

The key performance indicators must be set at the beginning of each period based on the organizational goals and must be mutually agreed upon by the job holder and their reporting manager. Only a few key important objectives need to be focused on for the year. The key objectives defined must be clearly linked to the goals of the company and should be in the nature of critical activities to be targeted for the year rather than routine tasks performed as a normal course of the function. Performance against these objectives is to be assessed and recorded in the appraisal form. The reviews should focus on giving constructive feedback to the job holder and identifying developmental needs over the rest of the year. At the end of the year, a final assessment needs to be done and an overall performance rating given, keeping in view performance over the year.

Personality Traits Personality traits are to be rated at the end of each review. The personality traits must be borne in mind by the appraiser while summarizing the employees performance. The summary should bring out clearly the personality traits of the individual and its impact on the overall performance. The traits must be referred to help define strengths and weaknesses of the individual and to identify developmental inputs for the job holder. Where an
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individuals performance is being impacted by negative traits, the same needs to be identified and appropriate inputs in terms of coaching, counseling, training must be provided to the individual. Employee Development Program At the end of the year an employee development plan is to be drawn up to ensure continuity of development and career enhancement based on past performance and individual aspirations. The current years developmental plan must be reviewed and its impact on performance and attitude assessed. The development plan needs to take into cognizance the employees long term career objectives and align them with the organizations future requirements

Performance Ratings
The following definitions can be used for arriving at a performance rating :

A OUTSTANDING Score 91-100+%

Performance which exceeds the allotted responsibilities (where quantifiable) and expected standards in given time frame beyond maximum expected target. The Objectives have been met but the path adopted to reach them differentiated his performance in terms of savings, process improvement, higher efficiency and better quality etc which has led to acceleration of the tasks. Successfully completed tasks and initiatives beyond set objectives. In case of quantifiable objectives, a greater level/volume of performance was achieved. Performance which exceeds the allotted responsibilities (where quantifiable) and expected standards in given time frame upto 90% of expected target.. The Objectives have been met but the path adopted to reach them differentiated his performance in terms of savings, process improvement, higher efficiency and better quality etc which has led to acceleration of the tasks. Shown initiative to do more

B GOOD Score 71- 90%

C AVERAGE Score 51-70%

This implies performance of allotted responsibilities and achievement of expected standards in given time frame upto 70%.

D - BELOW AVERAGE Score below 50%

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Performance is below the allotted responsibilities (where quantifiable) and expected standards in the given time frame. Has not achieved the objectives despite resources being made available.

Performance Assessment : Assessment of performance is not possible unless the measurement criteria are defined. Quantifiable objectives have the measurement criteria inbuilt in their definition Qualitative objectives have quantifiable impacts which must be defined to assess the success of the team member's efforts. Periodicity : The PMS exercise will be conducted annually for all employees below the Assistant Manager grade and there would be six monthly appraisals for all employees in the Assistant Manager grade and above. For employees in the Assistant Manager grade and above, the cumulative total of both six monthly and annual appraisal would be their performance result at the end of the year. The SMART Principle : Measurement is the key to managing and planning performance. Without defined measurement criteria for KPIs, one cannot define what is it that is to be achieved, how much to achieve, and a stated point -of-arrival to know if it has been achieved! The SMART principle help you set SMART objectives.

SMART objectives are : S M A R T Specific Measurable Achievable Realistic Time Bound

Setting SMART objectives requires pre-planning by the team member and his supervisor.

APPRAISAL METHOD
The employees will be assessed on Performance parameters as defined when setting up the KPIs. We will be following the Bell Curve principal in assessing the Performance of each employee. The Bell Curve will follow the following distribution
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The bell curve distribution of the performance parameters will be as follows -

A BCD-

10% of the Total 50% of the Total 30% of the Total 10% of the Total

Departmental/ Team strength Departmental/Team strength Departmental/ Team strength Departmental/ Team strength

APPRAISAL GUIDELINES
1. Be precise and to the point in appraisal comments.
2. 3.

No more than four/five most important Key Performance Indicators have to be defined. KPI setting will be done at the beginning of the appraisal cycle ( jointly with the Appraiser )

4. Rating on Personality Traits needs to be given at the end of each appraisal cycle. These are to be used as indicators for structuring developmental inputs/interventions for Appraisees. 5. A final rating of Annual Performance is to be arrived at only at the year-end. 7. HR will provide each Manager with the total number of employees in his/her department and also the distribution that needs to be followed.

PROMOTION
A recommendation for Promotion must be made only for a candidate who has been rated as Outstanding A. Promotion necessarily must result in an increase of role and span of activities that will be handled by the individual and just not only a change of job title. All Promotion recommendations have to be discussed with the DIC and necessary justification for the same needs to be furnished.

REVIEW
All increment / promotion recommendations will be reviewed by the CMD and DIC(s) and will be processed only post their signed approval.

A - PERFORMANCE MANAGEMENT FORM 2011 Company/Division

EMPLOYEE NAME: Date of Joining : KEY PERFORMANCE INDICATORS (At the beginning of the performance year) Total Weightage 80%
Weightage

Department: HOD : Period : ACHIEVEMENT (At the end of the performance year )
Self

RATINGS
Appraiser

1.

2.

3.

4.

5.Training Participation TOTAL

10% 80%

Training Participation

Employee _____________________ Supervisor _______________________ HOD ______________________ Date :

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Employee ___________________ Supervisor ________________________ HOD ________________________ Date :

ANNUAL SUMMARY (to be filled at the end of the year) Immediate Supervisor Comments :

Employee Comments :

Overall Performance - A
OUTSTANDING GOOD AVERAGE BELOW AVERAGE HOD

Employee

Supervisor

B - PERSONALITY TRAITS
Personality Traits Rating guidelines Every A - Outstanding will carry 2% weightage Every B - Good will carry 1.5% weightage Every C - Average will carry 1% weightage Every Below Average D - will carry 0.5% weightage

Weightage 20%

1. Communication: Presents ideas clearly and in an organized manner. Communicates well laterally, upwards and downwards. Good listening skills. Requests clarification when needed. Demonstrates innovative presentation skills. Does not give scope for misinterpretation of communication. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

2. Team Work: Develops and maintains harmonious & efficient working relationship with peers, subordinates and superiors. Willing to align individual goals to organizational goals. Is appreciative and tolerant to the needs of team members. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

3. Decision Making: Has a clear-cut understanding of priorities. Takes inputs from relevant sources and makes appropriate and timely decisions. Handles crisis calmly and competently. Has a great deal of maturity. OUTSTANDING GOOD AVERAGE
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BELOW AVERAGE

4. Initiative & Innovativeness: Is creative, enterprising and enthusiastic in solving problems. Comes out with innovative ideas for improving efficiency & productivity. Has the interest and willingness to shoulder additional responsibility OUTSTANDING GOOD AVERAGE BELOW AVERAGE

5. Dedication: Reliable and dependable for commitments made and is appreciative of the business needs. Delivers results within cost parameters. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

6. Adaptability: Able to take decisions and suggest solutions in spite of insufficient data. Comes up with alternatives to tackle uncertain situations. Plans for contingency in the face of uncertainty. Splits complex situations into more manageable components and then deals with them. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

7. Analytical Ability: Is a fast paced learner; grasps new ideas / concepts. Has the ability to derive generic knowledge from specific experience and apply in new situations. Is able to derive meaningful information from unstructured, unorganised data. OUTSTANDING GOOD AVAERAGE BELOW AVERAGE

8. Planning: Ability to prioritise tasks and suitably schedule them in the available time. For any given goals, identifies tasks, sets milestones, mobilises resources and controls progress. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

9. Quality Commitment: Understands / Emphasises the need to deliver quality products and /or Services. Defines standards for quality & evaluates products /processes/services against those. Does a quality job on time. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

10. Positive Attitude: Flexible, open minded and receptive to new ideas. Enthusiastic and able to energise others. OUTSTANDING GOOD AVERAGE BELOW AVERAGE

Overall Performance - B
OUTSTANDING GOOD AVERAGE BELOW AVERAGE

Employee

Supervisor

HOD

SUMMARY OF ANNUAL PERFORMANCE

(To be filled by Appraiser at the end of the Appraisal year, linking in with Performance during the year, and Personality Traits. Please enumerate on strengths and weaknesses as determined through job performance and personality traits.)

A + B (Weight age) =
Overall Annual Performance OUTSTANDING GOOD

AVERAGE

BELOW AVERAGE HOD

Employee Date: ___________ _______________________ CMD/DIC(s)

Supervisor

Date: __________

TRAINING NEEDS : Employee Identified Needs : Supervisor/HOD identified needs ;

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