Performance Management System

Step 1: Planning or Goal Setting

Importance of the Performance Plan

Aligned objectives create focus for the team Measures for Performance Assessments Assigning work and delegation

Team members to take ownership

S-M-A-R-T
Specific Measurable,

Achievable,
Relevant,

Time-bound.

Specific

What exactly are we going to do, with or for whom?

Objective is clearly defined & leaves no room for misinterpretation of what will be delivered..

Measurable How will I measure it (whats the source of measurement)? Outcome stated in quality, numbers, percentages, frequency activity, etc

Exercise PTO

Exercise
. You have recently taken over as the CEO of a diversified business group with presence in FMCG, Automobiles, Telecom, Pharma, Financial services etc. How will you go about seting up performance measures for following departments under you:

Advertising & Marketing Sales Finance Accounts

Purchase
Production HR & IR IT Support

Measurement Directory

Achievable/Realistic Consider proposed

Timeframe
Current environment Resources available Budget?

Relevant Relevant to Organisation

Time-frame
When will we accomplish this objective?

Example:
Organization GOAL-99% Safety Record

Departmental Goal To improve the safety environment for all employees in the Mill and Corporate Office

Individual Objective Be a positive contributor to reduce safety incidents from 3 to 0 in the Mill and sustain 0 incidents in the Corporate Office by 31 December 2006

Individual Milestones or deliverables 1 Attend the Corporate Safety Awareness Training Program 2. Identify & report 2 safety hazards in the Mill 3. Maintain and pass housekeeping audits to the required standard

Example: By 1 June 2006 all Operations staff will have completed the corporate safety awareness training program and will be able to demonstrate the ability to identify and report at least 2 safety hazards in the workplace
The objective is specific because it identifies defined events: will complete the corporate safety awareness training program. The objective is measurable because it specifies a quantity all Operations staff and quality of change i.e. able to demonstrate the ability to identify hazards. The objective is achievable (in the eyes of the writer) because it is realistic given the number of staff to be trained, complexity of the training and the large number of safety hazards. The objective is also relevant because it relates to the improvement of the safety environment a key organisation goal. Finally, the objective is time-bound because it provides a specified time by which the objectives will be achieved 1 June 2006.

Group Assignment : Present in next session

Develop a Goal Sheet for an HR Manager for:

Small Size Start-Up Company Established Multinational Company

Use the following Format for the same-PTO

Group Assignment : Format

Key Result Area- an Aspect or Particular Area of business -Could be a Business Function (Marketing, Sales, Engg, Purchase etc) or a Business Process (Knowledge Mgmt, Communication, Outsourcing etc) Goal- A specific action with a measurement (measurement can be quality, cost, time, quantity etc) Milestone- A specific step that supports the achievement of the broader goal. Helps to assess progress in the interim. Weightage-Proportion of overall time/effort to be spent on this goal. Total weightage of all goals should equal 100%

KRA

Goals (with Measurement)

Milestones (with Timelines)

Weighta ge (%)

To implement the in-process inspection of major activities by Aug-09 which will include preparing and To improve Quality implementing a checklist Introduction of gauges for inspection of incoming Quality & & Reliability of Reliability machines by 40 % materials /components / sub-assemblies by July-09 20% of by next year with Capacity verification of vendors -new and existing for machines reference to new 30 vendors minimum by Oct-09 supplies in the year Defect Analysis & investigation of customer complaints about quality leading to reduction in customer complaints by 5 %