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KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT
SIMULATION PROJECT
GORKHA BREWERY
Submitted To:
Animesh Kc
Course Facilitator
Submitted By:
Salim Lal Awale (17302)
Natasha Baidya (17303)
Naveen Neupane (17319)
In partial fulfillment of the requirements for the degree of
Master of Business Administration (MBA)
MARCH 23, 2018
ACKNOWLEDGEMENT
First of all, we would like to put forth our sincere appreciation and gratitude to Mr. Animesh
KC, our course facilitator for providing us with an opportunity to do this simulation project,
which has not only helped us in applying our theoretical knowledge in performance
management in the organization setting practically but also understand the essence of
working in a team. We are very thankful for your guidance, feedback and support in
completing this report and also other teams who were always there to guide us if we had
problems in the topics they have presented.
In this regard, we would also like to appreciate the HR manager of Gorkha Brewery Mr.
Bhuependra Pradhan for briefing about the company, their HR policies and performance
management system. He was very open to assist in the best way possible and his support in
this matter is highly appreciated.
The knowledge we have obtained in this project is immense and will be of great importance
in the days to come in whichever field we are in.
Regards
ContentsChapter 1: Introduction..............................................................................................................1
Chapter 2: Organization Structure.............................................................................................2
2.1 Organizational structure......................................................................................................................................2
2.1 The hierarchy of the Dealer In-charge...........................................................................................................2
2.3 Job Description.........................................................................................................................................................3
Chapter 3: Performance Management System in Gorkha Brewery...........................................5
Chapter 4: Performance Plan.....................................................................................................7
4.1 Key Definition...........................................................................................................................................................7
4.1.1 Planned Activities:.........................................................................................................................................7
4.1.2 Performance Measure:.................................................................................................................................7
4.1.3 Standards:..........................................................................................................................................................8
4.1.4 Feedback Source of Monitoring...............................................................................................................8
4.1.5 Performance Requirement.........................................................................................................................8
4.2 Annual Performance Plan for _____2018________.........................................................................................9
Chapter 5 Supervision Plan......................................................................................................12
5.1 Introduction............................................................................................................................................................12
5.2 Purpose of supervision plan............................................................................................................................12
5.3 Policy:........................................................................................................................................................................ 13
5.4 Key Definition:.......................................................................................................................................................13
Chapter 6: Other Supervision Activities..................................................................................17
6.1 Survey of clients/customers...........................................................................................................................17
6.2 Reports......................................................................................................................................................................17
6.3 Saleforce Automation.........................................................................................................................................17
6.4 Viber...........................................................................................................................................................................17
6.5 Critical incident.....................................................................................................................................................17
6.6 Cross-checking or Chadke.................................................................................................................................17
6.7 Daily logs or Attendance...................................................................................................................................18
Chapter 7: Management by Objective (MBO).........................................................................19
Chapter 8: Behaviorally Anchored Rating Scale (BARS).......................................................25
Chapter 9: 360 Degree Appraisal.............................................................................................30
9.1 Appraisal form for the supervisor:...............................................................................................................30
9.2 Appraisal form for the customer (Retailers):..........................................................................................32
9.3 Self-appraisal form:.............................................................................................................................................34
Chapter 10: Application of Performance Appraisal Score.......................................................37
10.1 Salary Administration.....................................................................................................................................37
10.2 Promotion.............................................................................................................................................................38
10.3 Retention and Termination...........................................................................................................................39
10.4 Training need identification.........................................................................................................................40
10.5 Transfer/Re-assign...........................................................................................................................................41
Chapter 11: PMS System Implementation Plan.......................................................................42
Chapter 12: Recommendation..................................................................................................45
Chapter 1: Introduction
Gorkha Brewery (P) Ltd. was established a joint collaboration between leading Nepali
business houses and the Danish multinational company Carlsberg A/S in 1989. It was and
continues to be one of the largest single foreign investments in Nepal. Gorkha Brewery
changed the Nepali beer industry forever. Over the past 15 years, it has grown to become the
market leader holding more than 80% share of Nepal's beer market. Today Khetan Group,
under the leadership of, Mr. M. G. Khetan, strives to fulfill its commitments towards quality
products and services.
This extraordinary success is the result of excellence in every arena: brewing to truly
international standards, stringent quality control, efficient and nationwide distribution, cutting
edge marketing and sales strategies and prudent financial management. Adding that extra bit
every time are the talented and dynamic people who work for Gorkha Brewery.
Gorkha Brewery, today, brews and markets products such as Carlsberg Beer, Tuborg Beer,
San Miguel Beer, Royal Danish Tuborg Strong Beer and Gorkha Beer and it has, since its
establishment, been successful in presenting itself as undisputed leader in the beer industry of
Nepal.
VISION
To become one of the leading beverage companies in South Asian region in terms of quality,
innovation and value to stakeholders.
1
Chapter 2: Organization Structure
2.1 Organizational structure
2
Managing Director
Marketing Director]
Channel Manager
Brand Manager
Sales Director
Sales Manager (4)
Regional Sales Manager (3)
Dealer in-charge(5-10)
HR Director
HR Manager
Supply Chain Director
Production Manager
Planning Manager
Finance Director
Controller Finance Manager
Account Manager
Corporate Affair
Manager
2.1 The hierarchy of the Dealer In-charge
3
Managing Director
Sales Director
Sales Manager
Regional Manager
Dealer In-charge
2.3 Job Description
Job description
Position / Title/ Name: Dealer-in-charge
Department: Sales
Work place Nepal, Gorkha Brewery
Reporting line: Regional Commercial Manager
Number of reports Team members
Grade: E2/E1/S2
Budget responsibility:
Main purpose of the
position:
Manage and supervise primary and secondary sales activities as per plan to
maintain the desired pipeline in the market and support to meet the targeted
volume and market share.
Personal qualifications /
competencies:
Knowledge of basic sales techniques
Result driven
Proactive
Good communication skills
Good networking and negotiating skills
Educational / minimum
requirements:
Bachelors in Business Studies/Business
Administration/Management/Commerce
Desired: Specialization in Marketing/Sales
Job responsibilities: Prepare the annual & monthly sales plans & programs for the
respective dealers to assist the RSM
Ensure proper inventory management and reconciliation for the
respective dealers
o Enable and monitor dispatches to respective dealers as per
the target (per brand per SKU)
o Ensure effective direct distribution to wholesalers, selected
channels including Key Accounts (if applicable) and ensure
4
sufficient inventory level in selected channels
o Physical verification of inventory and tracking of FIFO
system at respective dealer point
Maintain net due balance and Trade receivables of dealers to comply
with the system of GBPL
Settle monthly claim of dealers timely
Ensure proper planned visitation at wholesalers generating orders,
assessing pipeline and trends maximizing the sales of GBPL brands
(per brand per SKU)
Strictly monitor to ensure dealers sales within its defined territory.
Monitor effective pricing in designated Wholesale of GBPL brands
as well as competition
Evaluate dealer’s performance on quarterly basis and recommend
appropriate actions
Conduct relevant merchandising (posturing, carton display, etc.) and
housekeeping at all wholesale levels
Handle product and trade complaints in a responsible & professional
manner
Properly monitor the market as well as competitor’s activities
Ensure proper promotional (discount, scheme as well as any other
promotion activities) execution at wholesale
Build and maintain strong relationships with wholesalers in order to
derive mutually beneficial gains and to enable the sell in of our
various programs
Prepare & submit periodic sales report, monthly distributor sales
forecast & monthly sales report to RSM
Stakeholders & Relations
(Internal & External)
Internal: Team of sales and Marketing department, Supply Chain team
External: Dealers, Wholesalers, Transporters
5
Chapter 3: Performance Management System in Gorkha Brewery
Firstly, company objectives are cascaded down the departmental level. The department head defines the key performance indicators of each and every employee and objectives for the year. KPIs are set within 2 months of the start of the business year for all the positions from January to December (Poush –Mangsir). Objectives are frozen in our online performance management system which is similar across all the markets of Carlsberg group. For employees below, Managerial level they follow the same process but offline. Objectives for the year divided into four quarters Q1-Q2-Q-Q4 Employee KPIs are measured every quarter in order to measure their performance against agreed KPIs and objectives. High performers are given quarterly bonus, this is also a platform to revise the objectives and KPIs and set new target. Also, this is an opportunity for Managers and employees to sit down and discuss the way moving forward.Annual appraisal usually starts from December till Feb end annual appraisal forms are sent to all the Managers. Managers after discussing with employees, rates the employee's each and every objective in a scale of 1-5 (i.e. Requires improvement, typically meets, Achieved, Exceeds, Exceptional.) The employee rating is sent to HR department. Final rating is
6
Rating sent to the HR departrment
Mangers rate the employees after discuccing with the employees
High performers are given quarterly bonus. Set new targets
Employee KPIs are measured every quarter
Objectives for the year divided into four quarters
The department head defines the KPIs of each and every employee and objectives for the year
Company objectives are set and cascaded down the departmental level
discussed in a cross functional board of Leadership team (i.e. HOD of all the units). Final rating is decided by this board. After the final rating, employees are given the appraisal letter which states their overall performance of the year and their increment percentage. Objectives and KPIs for next year is agreed and developed and the same process is followed in a cycle year on year. Annual self-assessment is conducted which is reviewed by Immediate Supervisor and/or concerned Manager. They also provide performance feedback for better efficiency & job satisfaction of the employee, counseling, training need assessment and awards.
There is quarterly appraisal and mid-year review to check the performance progress of the trainees and probationary employees. In the annual appraisal
Use of Carlsberg Group Performance Management & Talent Management tools•Performance Rating flow•Performance Rating scale•Assessing Potential •People Board Meetings- This is a cross functional team of Directors from different units•JD reviews & Individual KPI (Objective) setting
Rating Scale1- Requires Improvement2- Typically Meets3- Achieved4- Exceeds5- Exceptional
Gorkha Brewery uses sales force automation in order to track daily updates from the dealer in charge. It is then submitted to the area sales manager and regional sales manager. The area sales manager then prepares weekly report of the dealer in charge. Any deviation in weekly target is transformed to next week. However, monthly target has to be met and target cannot be transformed to next month. Performance appraisal is done manually on a quarterly basis linked with rewards.
Performance appraisal form consists of 2 key criteria’s:
a) 5 Key Performance Indicators (KPI’s) based on position
b) 5 Objectives e.g. Market Volume, Market share, Target
Reward & Promotion criteria:
Two-month bonus salary for employees exceeding two consecutive monthly targets. Back to back 2 year exceed performance to get promotion.
7
Chapter 4: Performance Plan
A performance plan is a formal procedure through which the expected goals are discussed,
identified and planed for every individual employee usually for the upcoming year. The
employee is expected to perform his/her task and achieve those goals and based on this plan
future performance appraisal of that employee is also carried out.
For our report, we have developed a performance plan for Dealer in-charge at Gorkha
Brewery. This performance plan has been prepared jointly by the Dealer in-charge and his
supervisor. The performance appraisal at Gorkha Brewery is done on quarterly and thus the
performance would be reviewed and any changes needed would be made thereof.
4.1 Key Definition
4.1.1 Planned Activities:
The actions that the job holder is expected to do as per the job requirements mentioned in the
job description. The activities are divided into three categories namely: Critical Performance
Elements (CPE), Non-critical Elements (NPE) and Additional Performance Elements (APE).
CPEs are those elements that are at the core of the activities that the position holder will be
performing and they are critical in determining how good or bad the employee has been able
to perform. They are assigned with the highest weightage and generally are performed
individually
NPEs are those elements those are e relatively less important than the CPEs yet integral part
of the job responsibilities of the employee. They are generally performed in groups or teams
and are assigned lesser weightage than CPEs
APEs are those elements that are not explicitly mentioned or prioritized yet the performance
of the employee is still evaluated on the basis of it. They are assigned with zero weightage.
4.1.2 Performance Measure:
It is the standard which the employee is expected to meet and on the basis of which the
performance is evaluated. The measures are classified into two categories. General Measure
8
which are Quality, Quantity, Satisfaction, Time and Cost effectiveness are the broader or the
general measures and Specific Measures are then used to describe those general measures.
4.1.3 Standards:Standards are the planed outputs that are used as benchmark to determine the level of success
of the performance. It is divided into three categories
Minimally Successful: The minimum output that the employee is expected to produce
Fully Successful: This is the output level when achieved by the employee is regarded as fully
successful. i.e. has been able to meet all the goals.
Exceeds Successful: This is the level above the fully successful when an employee is able to
achieve this level of output it is regarded as being exceptional. These are usually kept to push
employees to perform even better
4.1.4 Feedback Source of MonitoringIt is from where the data’s regarding the output of the performance is gathered from.
4.1.5 Performance RequirementThe skills those are essential for the employees to perform the job to the best of their abilities.
9
4.2 Annual Performance Plan for _____2018________
(This form is to be completed jointly by the employee and his/her supervisor before the start of the appraisal period. The annual performance planning session and yearly appraisal and feedback sessions must take place before or at the time of completing this form. At the time of yearly appraisal and feedback session, this plan must be reviewed and, if necessary, should be adjusted by using a new form.)__________________________________________________________________________________________________________________
Section A: Basic Information
Employee's Name: Job Title:
Level: Work Unit:
Work Domain:
Work Location
Supervisor's Name: Job Title:
Performance Period: From: To:
Completion Date: By Employee By Supervisor:
Date of Submission to HR Section: Date of Last Planning:
10
Gorkha BreweryAnnual Performance Plan for 2018 for the Position of Dealer In-charge
Performance Element General Measures
Specific Measures Standards Feedback Source of Monitoring
PerformanceRequirementsMinimally Successful Fully Successful Exceeds Successful
Meet the Commercial Target
CPE40 priority point
Quantity Number of beer cases sold. 750 cases/week 1000 cases/week 1200 cases/week Sales record Interpersonal skills
Marketing skillsQuality Net Sales Revenue per month Rs 750,000/- per month Rs. 1,000,000/- per month Rs. 1,200,000/- per month
Ensure collection of Cash Receivables
CPE30 priority point
Timeliness Collection period 11-15 days 10 days Less than 10 days Books of Account Negotiation skills
Account management skillsQuality Cash collection Less than 80% payment within
credit period.100% payment within credit
period.N/A
Execute Sales Force
NPE20 priority point
Quality Product availability Only few stock outs throughout the year.
Product is always available for sales
All the product lines are available for sale.
Sales for automation database
Interpersonal skills
Leadership skillsQuantity Minimum Inventory of beers to
be maintained at the stores
Number of visit to retailers
90-100% for Tuborg
50-70% for Carlsberg
20-30% for San Miguel
Once every week
100% for Tuborg
At least 70% for Carlsberg
At least 30% for San Miguel
N/A
100% for Tuborg
More than 90%for Carlsberg
More than 50% for San Miguel
N/A
Prepare and submit sales report
NPE10 priority point
Quality Accuracy and acceptance One to two errors in a year No errors at all N/A Sales for automation database
Writing skills
Accounting skillsTimeliness The average number of days for report submission
N/A Submission of report within the deadline.
Submission of the report before the dead line date.
Perform Competitor analysis and forecasting
APE0 priority point
Quantity Gain in market share in percentage
N/A Able to gain 1-15% of the market share
Able to gain more than 15% of the market share
Data Validation Analytical Skills
Information processing knowledge
Satisfaction useful N/A The analysis of competitor is useful in determining brand
future plans
N/A
Signature (employee) _____________ Date: ______________ Signature (supervisor) ___________________ Date: ___________
11
Guidelines for Individual Performance Plan Form
Refer to the job description of the employee while determining performance plan of
the employee.
Various performance measure to be filled are:
o Performance element to determine what needs to be done,
E.g. Cash receivables management
o General and special measures to determine what is expected from the
employees,
E.g. Timely cash collection
o Feedback and source of monitoring to know where to check their job
completion,
E.g. Books of account i.e. cash receipt book
o Performance requirement to ensure the job holder has required skills to
complete the task,
E.g. Negotiation and accounting skills
Performance element should contain at least five to six tasks based on job description.
List performance element on the basic of priority points with total of 100 points.
Provide higher weightage to critical performance elements, lower weightage to non-
critical performance elements, and no points to additional performance elements.
Provide at least two general measures with which performance can be measured.
Performance can be measured on the basis of quality, quantity, timeliness, cost
effectiveness, satisfaction, approval etc.
Provide each specific measure to the general measures i.e. how the task is to be
achieved.
The standards state different degree of task completion.
Feedback and source of monitoring should contain the areas in which the task
completion can be tracked.
Performance requirement should contain the skills required to complete the task of the
employees
Review the performance plan on a timely basis before signing the contract by both
employees and the supervisors.
12
Chapter 5 Supervision Plan
5.1 Introduction
Supervision plan is a plan to carry out supervision within a period of time (e.g. quarterly,
annual). The preparation of a supervision plan is on the basis of agreed performance plans
and regular supervision is conducted as per the supervision plan.
It is a framework that guides supervisory actions that might include
Review of the work, the process, the progress and the problems
Discussion of the overall context
Future planning and actions
Foreseeing potential difficulties and preventive measures
Guiding, supporting, informing, educating
Gaining commitment and encouraging
5.2 Purpose of supervision plan
1. To check inefficiencies in the subordinates’ performance and find out gaps in proper
functioning of the company and ensure they are bridged.
2. To develop and improve skills of the subordinates and to use this plan as a guide to
performance planning.
3. Provide better insight into the problems of the subordinates’ problems and insights to
avoid the problems on time.
4. To ensure that the subordinates perform as per the plan and always deliver fully
successful performance as per the performance plan.
5. To help the supervisor conduct the supervision activities on time.
6. The documentation of this form will also help in
a. Very vital for efficient resource allocation.
b. Developing training and development plans for the future.
c. Providing counseling and coaching whenever necessary.
d. Recruitment and selection decisions as to what type of person to select and
what type not to select
13
e. Very essential for performance appraisal
5.3 Policy:
1. The supervision plan should be done on a semi-annual basis.
2. There will be participation of the supervisor.
3. The supervision plan needs to be reviewed and accepted by the Sales Manager.
4. The supervisor needs fill his month wise plan of supervision activities. However, if he
wants he can include a week wise or daily plan as per his convenience.
5. He needs to include all the performance elements and supervise each activity under it
6. He needs to document the completion of each activity as per the plan and send it to
the sales manager within 1 week of the completion of the last activity
5.4 Key Definition:
1. Performance element in our supervision plan we have listed the performance
elements of the dealer in charge that was developed in the performance plan. The
performance elements are part of the job through which the outputs are produced like
achieving the target, collecting cash on time etc. The supervisor will monitor the
performance on the employee on the basis of these key elements.
2. Supervision activities: Similarly, after the key supervision area has been identified
under each performance element then supervisor needs to note down how they are
going to supervise all the job elements to ensure that effective performance takes
place every time. These are the activities he will be conducting as a supervisor.
3. Key Supervision area: The key supervision area lists the number of areas the dealer
in charge should be focusing on as per his role demands.
14
Gorkha Brewery Supervision Plan for the position of Dealer In-charge Performance Elements Key Supervision areas Supervision Activities
Meet the Commercial Target Sales Execution Month 1 Introduction about company policies, strategies and training. Tag in with other dealer in-charge to understand his roles and responsibilities
Month 2 Observe his activities Provide immediate feedback in areas where he is going wrong
Month 3 Allot suitable areas and route plan Provide sales and revenue target Track sales weekly to check if he is able to meet the target Check if he is able to handle the device and the update the sheets properly Provide feedbacks
Month 4 Monthly review if the sales target and revenue target have meet met Check if the feedbacks have been used for improvement Evaluate and compare their performance from the previous month
Month 5 Check the amount of revenue he is able to generate especially from the high range products Check the way he is approaching the stores and selling His relation building and negotiating skills
Month 6 Provide another high selling area if he is not able to cater the allotted area Provide semi-annual bonus if he is meeting the target every month Provide trainings or transfer if target is not met for 3 consecutive months
Ensure collection of Cash receivables
Revenue and cash collection Month 1 Negotiation training Accounting training Accompany a dealer in-charge on the field
Month 2 Allot suitable areas and route plan Provide cash collection target Track cash collection within 11 days of sales Check if he is able to update sales account and daily sheets properly Provide immediate feedback in areas where he is going wrong
Month 3 Monthly review if the revenue target has been met Provide feedbacks
Month 4 Monthly review if the revenue target has been met Check if the feedbacks have been used for improvement Evaluate and compare their performance from the previous month
Month 5 Monthly review if the revenue target has been met Accompany him when he visits or deals with the retailers to understand where he is going wrong Provide feedbacks
Month 6 Check the areas where he is lagging behind in cash collection till date Provide semiannual appraisal and feedback addressing his strengths and weaknesses Retrain on negotiation skills if necessary
Execute Sales Force Outlet visit, sales, stock and order
Month 1 Sales force automation and handheld device handling training Tag in with other dealer in-charge to understand his roles and responsibilities
15
Month 2 Assign him/her the responsibility of sales force executionMonth 3 Check the number of visits and the task performed via the handheld device
Provide feedbacksMonth 4 Follow up with the stores and take feedbackMonth 5 Follow up with the stores and take feedbackMonth 6 Review of how well the dealer in-charge has been able to perform his job.
Provide feedback, and training if necessaryPrepare and execute
sales reportMeet target sales and
revenueMonth 1 Orientation and training on the report style, format and other requirements
Assist a dealer in-charge with report preparationMonth 2 Assign the task of preparing the report
Review the weekly reports and provide feedbackMonth 3 -----Month 4 Sit down with the dealer in-charge and discuss any shortcomings if any
Ask for his suggestions and insights to increase the salesMonth 5 -----Month 6 Appraise the job and provide feedbacks
Perform Competitor analysis and forecasting
Information quality and authenticity
Month 1 Provide insights about the competitors in the market Provide training on analytical skills
Month 2 Check if the dealer in-charge has any new information on report.
Month 3 Check if the dealer in-charge has any new information on report.Month 4 Check if the dealer in-charge has any new information on report.Month 5 Check if the dealer in-charge has any new information on report.Month 6 Appraise the report and acknowledge any relevant information with incentives.
16
GUIDELINES
The major points to be considered while developing a supervision plan by the supervisor are:
1. Analyze the job description and key performance indicator of the dealer in charge
thoroughly.
2. The duties and responsibilities for the required job position can be the performance
elements while developing the supervision plan. Similar duties can be listed under one
performance element.
3. The timeframe can be monthly, weekly or daily as per the supervisor’s convenience.
4. The supervision activities should be precise, goal oriented and doable. For e.g
“monthly review of the sales target is directly oriented towards the sales goal”
5. He should estimate how much time is required to perform each activity beforehand
and then plan accordingly.
6. He should be completing all the activities on time as mentioned in the plan.
7. If he is unable to perform the activities due to certain circumstances it should be
immediately informed to the sales manager.
8. The supervision activities should be stricter and more efficient as the time goes.
9. The activities should be based on the results and data of the sales force automation
and it should be reviewed daily.
17
Chapter 6: Other Supervision Activities
6.1 Survey of clients/customers
An employee’s performance can also be monitored through customers or clients survey. this
would be different perspective of an employee’s behavior, he/she may act differently in the
office and or outside the office when his/her superior is not around.
6.2 ReportsMonitoring can also be done through the reports that the employee submits. Reports can be
weekly, fortnightly, monthly, quarterly and annual, thus the monitoring can be done all year
round.
6.3 Saleforce AutomationAnother useful way of monitoring the dealer incharge’s performance is through the device
that the dealer incharge use at Gorkha Brewery. Any transaction or business they do is to be
instantly reported back to the office via. the device. This makes it easy to keep track on all the
sales they make.
6.4 ViberAt Gorkha Brewery, the dealer incharge needs to send picture of the dealership that he/she
has visited and the product sold or any poster he/she has put up in that shop for marketing
purpose. So, viber is also one way to monitor the dealer incharge’s activity
6.5 Critical incidentThe critical incident method of performance appraisal or monitoring involves identifying and
describing a specific event where the employee did something good or bad. Although it might
be demanding as it not ticking on a form instead the managers have to write down things out,
it still is very useful in helping employees improve as it is very specific and detailed than the
usual rating methods.
6.6 Cross-checking or ChadkeChadke or Cross-check is a surprise visit of an evaluator in the workplace or work setting. If
an employee is found not doing his/her work, or if he/she is not present at his desk, then
he/she might face actions. Because of the uncertainty on time or day of the checking,
employees are always alert and on their toes in the work.
18
6.7 Daily logs or Attendance
Supervisors can monitor the punctuality of an employee with the help of the daily logs or the
attendance register.
19
Chapter 7: Management by Objective (MBO)
Management by objectives (MBO) is a management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization. The term was first outlined by management guru Peter Drucker in his 1954 book, "The Practice of Management."
Peter Drucker set forth several principles.
Objectives are laid out with the help of employees and are meant to be challenging, but
achievable.
There is daily feedback, and the focus is on rewards rather than punishment.
Personal growth and development are emphasized, rather than negativity for failing to
reach the objectives.
Section A: Basic Information (to be completed by HR section)
Employer’s Name: Job Title:
Band: Manager Level: Service Group:
Section: Division/School:
Appraiser’s Name: Job Title:
Reviewer’s Name: Job Title:
Review Period From: To:
Completion By Employee: By Appraiser:
Date of Report Submission to HR Section: Date of the Previous Review:
Section B: Performance Review against Set Objectives (to be completed by the employee, appraiser, and reviewer)
Key Performance Objectives Weightage
(a)
B1 By Employee
(b)
B2 By Appraiser
(c) Points
a * b
Points
a * cNI
1
MS
2
FS
3
ES
4
NI
1
MS
2
FS
3
ES
4
20
Meet commercial Target 0.40
Ensure Collection of Receivables 0.25
Maintain Inventory Level 0.15
Prepare and submit sales report 0.15
Train newly hired dealer In-charge 0.05
Total (D) (E)
*NI = Needs Improvement; MS = Minimally Successful; FS = Fully Successful; ES = Exceptionally Successful.
*Rate the level of performance considering the quantity and quality of work, timely completion, and cost-effectiveness. Indicate rating by cross marks (⨯).
Score by Employee = D * 25
Score by Appraiser = E * 25
B3 Self-Review (By Employee)
Significant Tasks/ Contributions Not Covered Above:
Objectives/ Tasks Not Achieved/ Completed: Reasons:
Important Factors Facilitating Performance Important Factors Hindering Performance:
Skills/ Competencies Needed for Better Performance: Training Required:
Section C: Appraisal of critical attributes and job behaviors (to be completed by the appraiser)
S.N. C1 Critical Attributes and Job Behavior NS
1
IN
2
ME
3
EE
4
OS
5
21
1 Ability to empathize and respond
Identified and responded accurately to the behavior and needs of customers
Was able to build the connection with people and value relationship
2 Fair and transparent
Provided verifiable daily sales update and report on time
Reported any performance inconsistencies with valid reasons timely
Gave equal treatment to all the dealers
3
Attention to detail and goal oriented
Made minimal to no errors at work
Showed determination to achieve quality results
Was able to set his own goals aligned with the company’s goal
Was to achieve the set personal goals
4 Ability to work in a team
Built strong relationships with the team members
Displayed a cooperative and harmonious nature
Showed flexibility in making plans and was open to ideas
Proactively shares expertise with the rest of the team
5 Interpersonal Skills
Built effective professional relationships with assigned dealers
Built effective working/professional relationships with retailers and wholesalers
Built on understanding and mutual reliance
6. Analytical and problem-solving ability
Communicated competitors’ course of action and strategies
Was able to monitor the market and provide information
Provided valuable suggestion and insights for strategy building
Was proactive and solution focused
7. Professional Competencies
Understood his responsibilities and key result areas well
Applied professional knowledge and skills required for the job
Demonstrated a sense of accountability and responsibility for results
22
Sum (a) (b)
(c) (d)
(e)
Total (a + b + c + d + e)
*NS = Not satisfactory, IN = Improvement needed, ME = Meets Expectation, EE = Exceeds Expectation, OS = Outstanding
*Rate employees on critical attributes and behaviors by putting a cross (⨯) in the appropriate box.
Total Score = (A+B+C+D) / (N*5/100)
Where, N= Number of job behaviors in the appraisal form
C2 Areas of Strengths and Improvements (By Appraiser)
Major strengths of employee observed:
Improvements made by employee since last review:
Areas of improvement for effective performance:
Potential areas for growth:
C3 Recommendations for Actions (By Appraiser)
Recommendations for training and development (be specific):
In-house External
HR Actions: Salary Increment
Promotion Replacement Disciplining Others None
Appraiser Signature …………………….
Section D1: Reviewers score
Appraisal Component NS1
IN2
ME3
EE4
OS5
Score
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Fulfillment of overall departmental objectiveCoordination with top management & other departmentsDiscipline in the organization
Total (a)Score by Reviewer = (a *100/15)
Reviewer's Signature …………………….
Section E: Appraisal Score (to be completed by HR section)
Appraisal Component Weight Score Remarks
1 Employee’s rating on performance objectives/tasks (B2)
10
2 Appraiser’s rating on performance objectives/tasks (B3)
40
3 Appraiser’s rating on attributes and behaviors (C1) 40
4 Reviewer's rating on performance objectives/tasks (D1)
10
5 Total Score 100
HR Manager Signature ………………………
24
GUIDELINES
This guideline has been developed for the purpose of aiding the appraiser and the employee
to fill out the performance appraisal form. The form is divided into four parts:
A. Basic information
B. Performance Review against Set Objectives
C. Appraisal of Critical Attributes and Job Behaviors
D. Appraisal Score
Part A: Basic Information
This section is to be completed by HR department.
Define the basic information about the employee and appraiser in Part A along with
review period and completion date.
Mention the date of previous review as well.
Part B: Performance Review against set objectives
This section deals with the functional aspects of the employee performance and is to be
filled by employee and appraiser.
In Section B, the employee needs to follow the following instructions:
- List at-least five key performance objectives or assigned tasks based on priority.
- The priority points are to be assigned to each task and the total point is to be 100.
- Be brief and precise in stating the actual results achieved and precise manner
In section B1 and B2
- B1 is to be filled by the appraise
- B2 is to be filled by the appraiser
- Rate the task as Improvement needed (IN) if the result achieved is of minimum
level
- Rate the task as Meets Expectation (ME) if the result meets the requirement to
satisfy the objective of key performance activity
- Rate the task as Exceeds Expectation (EE) if the result is greater than required or
expected
- Rate the task as outstanding if the result is more than expected or creates
additional value to the key performance activities.
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In section B3, the employee needs to fill the form based on personal reviews, assumptions
and analysis.
- Mention the significant activities that need to be considered for appraisal that is
not included in section B1
- Mention the activities that are not completed and support it with valid reasons.
- Identify the factors contributing to the success and failure of performance
- List the skills or competencies that employee feel would help to perform better.
- Mention any training that he/she feels would help in improving his performance
and help in individual as well as organizational growth.
Part C: Appraisal of Critical Attributes and Job Behaviors
This section deals with the attitudes and behavior aspects of an employee which is to be
completed by the appraiser.
In section C1, rate the critical attributes and job behavior/dimensions of an employee
under the four criterion of IN, ME, EE and OS as mentioned above.
Critical attributes on attitudes and behavior are listed based on which employees are to be
rated to determine the level of their competency.
In section C2, provide suitable recommendations for trainings and development based on
functional and behavioral performance of an employee.
Support administrative decisions by suggesting corrective actions for either promoting
good behavior or minimizing bad performance.
Provide additional recommendations or remarks on the evaluation in the comment
section.
Part D: Reviewer Score
Reviewer may not have direct supervision over the appraise. So, rating is to be done on
the basis of overall departmental goal accomplishments, number of complaints received
from the employee and coordination of activities with other departments and top
management.
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Part E: Appraisal Score
This section deals with the evaluation and calculation of the score obtained by an
employee which is completed by HR department
Assign weightage to functional and behavioral sections for final evaluation.
Calculate the score as per the formula provided
Provide remarks for high or low marks.
Note: If the scores provided by employee and supervisor deviates by more than 50% then
a meeting should be organized to discuss the reasons for the deviation and scores should
be provided accordingly
The reviewer should have relevant knowledge about the employee's job and should be
able to observe and measure all facets of the work for which they should conduct
routine/random investigations
The contents of the completed form are CONFIDENTIAL. Ensure that proper care is taken to
protect the privacy of the employees and with minimum error in evaluation.
27
Chapter 8: Behaviorally Anchored Rating Scale (BARS)
Behaviorally Anchored Rating Scale (BARS) is a scale used to rate the performance of
employees. It is an appraisal mechanism that seeks to combine the benefits of narratives,
critical incidents and quantified ratings by anchoring a quantified scale with specific
narratives of performance ranging from good, satisfactory and poor performance.
Please select the option that best describes the overall performance standard of the concerned
employee in the given behavioral criteria. The appraiser should carefully read all the
behavioral components mentioned in the form before selecting the most appropriate option.
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Behaviorally Anchored Rating Scale (BARS)
To be filled by the evaluator
Employee’s Name: Employee’s Job Title:
Band: Level:
Company: Date of the Previous review:
Supervisor’s Name: Supervisor’s Job Title:
Review Period:From: To:
Review Completion Date:
Job and behavioral dimensions:
Below mentioned is a list of behavioral criteria under which are mentioned certain behavioral
dimension that should be performed by the Assistant Administrator. For each behavioral
criteria supervisor should tick one option (behavioral dimension) that best describes the
employee on the scale of 1 to 5 (1 meaning outstanding and 5 meaning poor).
Negotiation: This section deals with how one prepares and plans for the negotiation and has the knowledge of the subject matter being negotiated. Includes factors like thinking clearly and rapidly under pressure and uncertainty and expressing thoughts verbally.
Performance Points Behavior
Outstanding 5 Is able to collect cash on the same day of the sales and ensure further business
Excellent 4 Is able to collect cash on the same day of the sales
Satisfactory 3 Is able to collect cash within the collection period
Marginal 2 Use of forceful and coercive ways to collect the dues
Unsatisfactory 1 Says receivables have been collected when it had not been in reality
Interpersonal skills: This section deals with how one behaves with their peers or any other staff in the organization.
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Includes factors like humility, respect and other working relationship with the people in the organization
Performance Points Behavior
Outstanding 5 Is very respectful and reverent to the clients
Excellent 4 Is very polite to clients and does not discriminate among them
Satisfactory 3 No instances of conflict with dealers
Marginal 2 Is inconsiderate while dealing with others and often uses inappropriate words
Unsatisfactory 1 Disrespectful while dealing with clients and does not listen to their grievances.
Leadership skills: This section deals with how one provides direction, implements plans, and motivates his/her subordinates to work hard to achieve success and achieve the organizational vision.
Performance Points Behavior
Outstanding 5 Standing up for his convictions and values
Excellent 4 Is always willing to take initiatives and plan activities
Satisfactory 3 Shows sincere interest and concern for his subordinates
Marginal 2 Is there for his subordinates to provide assistance only when they ask
Unsatisfactory 1 Is not supportive and cooperative
Communication skills: This section deals with how one imparts information and conveys intended meanings by verbal and written medium and delivers his/her point of view and logic whenever necessary
Performance Points Behavior
Outstanding 5 Is able to communicate properly to everyone through an excellent communication skill along with excelled gesture and postures
Excellent 4 Communication skill is good and is able to communicate one’s viewpoint to others with good command of spoken language
Satisfactory 3 Has good oratory skills along with a good blend of gesture and postures
Marginal 2 The written and oral communication is often plagued with grammatical and verbal errors.
Unsatisfactory 1 Lack of regard for other people and does not listen to them
Organizational commitment: This section deals with how one fits in the assigned role and, feel they understand the goals of the organization and give their best to achieve them.
Performance Points Behavioral
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Outstanding 5 Undertake additional responsibilities and doesn’t shy away from doing jobs beyond his/her job description
Excellent 4 Doesn’t complain about completing someone else’s assignment and is always happy to lend his hand if others need help
Satisfactory 3 Accepts the target assigned to him and completes the task with no difficulties and is fairly accepting of additional tasks
Marginal 2 Completes his duties with bare minimum results.
Unsatisfactory 1 Reluctant in taking responsibilities and looks to blame others for any mistakes
Product Knowledge: This section deals with how one understands the products' features and presents their benefits accurately and persuasively. Customers respond to enthusiastically
Performance Points Behavioral
Outstanding 5 Proactively remains up to date with all the industrial trends and competitors’ strategies and has the perfect knowledge of all the product lines and presents the benefits actively and accurately
Excellent 4 Has the perfect knowledge of all the product lines and presents the benefits actively and accurately?
Satisfactory 3 Has considerable knowledge about the products
Marginal 2 Has insufficient knowledge about the product lines
Unsatisfactory 1 Is unable to answer product-related questions when asked
Total Score (out of 30): _______________
Signature (appraiser): ____________ Signature (reviewer): _____________________
Date: _____________________________ Date: _______________________
31
Guidelines for filling out behaviorally anchored rating scale (BARS):
1. Altogether 5 behavioral criteria’s have been identified to assess the performance of
dealer in charge and they are Negotiation, communication, interpersonal skills, job
knowledge and organizational commitment. The concerned Dealer in-charge must be
rated by the supervisor on these behavioral criteria’s.
2. Each behavioral criterion is ranked from 1 to 5 using various behavioral dimensions.
The supervisor is requested to go through the behavioral dimensions before rating the
employee.
3. The rating divided as follows: 1: - Outstanding, 2: - Excellent, 3: - Good, 4: -
Satisfactory and 5: - Poor. These ratings are directly associated with the behavioral
dimensions provided. The supervisor should tick on one particular score that matches
with the actual behavioral performance of the employee.
4. Every behavioral criterion must be rated by the supervisor without exception. Proper
analysis of the employee’s behavior must be carried out focusing on his or her
performance throughout the overall appraisal period.
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Chapter 9: 360 Degree Appraisal
A 360-degree feedback (also known as multi-rater feedback, multi-source feedback, or multi
source assessment) is a process through which feedback from an employee's subordinates,
colleagues, and supervisor(s), as well as a self-evaluation by the employee themselves is
gathered. Such feedback can also include, when relevant, feedback from external sources that
interact with the employee, such as customers and suppliers or other interested stakeholders.
This guideline has been developed for the purpose of aiding the appraiser by supervisor,
customer and self to fill out the performance appraisal form. The form is divided into three
parts:
A) Supervisor
B) Customers/Retailers
C) Self
9.1 Appraisal form for the supervisor:
This appraisal form is for the supervisor to evaluate the personnel based on various functional and behavioral aspects. There are four major aspects that you will be covering, namely- the Personal qualification and skills, communication skills, goal fulfillment and teamwork. The scale is listed from strongly disagree to Strongly Agree and you are required to tick the appropriate one.
Name: Employee Id No.:
Department: Relation to the employee:
Appraisal period From: To:
Note:
SD= Strongly Disagree D=Disagree N=Neutral A=Agree S=Strongly Agree
Interpersonal Skills (A) SD1
D2
N3
A4
SA5
Built effective professional relationships with customersBuilt on understanding and mutual relianceS/He is proactive and solution focusedS/He shows high ethical standards in workplace
Sum (a) (b) (c) (d) (e)
Total (A) = (a + b + c + d + e)
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Communication Skills (B) SD1
D2
N3
A4
SA5
S/He has a good spoken/written languageS/He is a good listenerS/He provides enough information to the partiesS/He is humble and careful with words
Sum (a) (b) (c) (d) (e)Total (B) = (a + b + c + d + e)
Goal Fulfillment (C) SD1
D2
N3
A4
SA5
S/He sets SMART goalsS/He aligns goals with organizational policiesS/He completes work on timeS/He encourage others to fulfill their own goals on time
Sum (a) (b) (c) (d) (e)Total (C) = (a + b + c + d + e)
Teamwork (D) SD1
D2
N3
A4
SA5
S/He contributes positively to the teamS/He is highly motivated to achieve the team goalsS/He takes responsibility of the team accomplishmentsS/He is well aware of his/her role in the teamS/He has a good relation with the team membersS/He is takes charge of the team
Sum (a) (b) (c) (d) (e)Total (D) = (a + b + c + d + e)
Comments
Overall appraisal rating:
Total Score of Appraisal by Supervisor = (A+B+C+D) / (N*5/100)
Where, N= Number of job behaviors in the appraisal form
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Guidelines for Part A: supervisor
The supervisor should have known and worked with the subordinate for more than 1
year
Supervisors should be able to observe and measure all facets of the work for which
they should conduct routine/random investigations
Identify critical behavioral dimension essential for the employee to be included in the
360-degree appraisal form
Altogether 4 behavioral criteria’s have been identified to assess the performance of dealer in
charge and they are communication, interpersonal skills, goal fulfillment and team work. The
concerned dealer in-charge will be rated by the supervisor on these behavioral criteria’s.
The supervisor needs to put a (⨯) to rate the subordinate on his/her level of agreement and
disagreement. The rating ranges from strongly agree to strongly disagree.
Every behavioral criterion and dimensions must be rated by the supervisor without exception.
Proper analysis of the employee’s behavior must be carried out focusing on his or her
performance throughout the overall appraisal period.
Take adequate and required training and assistance to fill the form accurately
The supervisor must also mention the important aspects of the subordinate which is
not answered by the above questions.
9.2 Appraisal form for the customer (Retailers):
This appraisal form is for the customer’s/retailers supervisor to evaluate the personnel based
on various functional and behavioral aspects of the dealer in charge to improve the sales.
Since all the retailers are the part of the supply chain, we encourage retailers to participate in
appraising their dealer. The appraisal will be kept anonymous. You can, however, disclose
your name. There are three major aspects that you will be covering, namely- the
communication skills, interpersonal skills and the relationship with the customers/retailers.
The scale is listed from strongly disagree to Strongly Agree and you are required to tick on
the appropriate one.
Name of the supervisor: _______________________________________
Relation with the supervisor: ___________________________________
35
Relationship with customers/retailers (A) SD1
D2
N3
A4
SA5
S/He provides enough support to promote the productS/He builds effective professional relationships with customersS/He builds on understanding and mutual relianceS/He does not discriminate among the peersBuilt on understanding and mutual reliance
Sum (a) (b) (c) (d) (e)Total = (a + b + c + d + e)
Interpersonal Skills (B) SD1
D2
N3
A4
SA5
S/He shows confidence in the workS/He is receptive of the idea given by the retailersS/He is approachableS/He is empathic towards the problems of the retailers
(a) (b) (c) (d) (e)Total = (a + b + c + d + e)
Communication Skills (C) SD1
D2
N3
A4
SA5
S/He has a good spoken/written languageS/He is a good listenerS/He provides enough information to the retailersS/He is humble and careful with words
Sum (a) (b) (c) (d) (e)Total = (a + b + c + d + e)
Analytical and problem-solving ability (D) SD
1
D
2
N
3
A
4
SA
5
Understood your problems and concerns
Responded accurately with useful solutions
Provided valuable suggestion and insights for future
Was proactive and solution focused
Sum
Total = (a + b + c + d + e)
Overall comments:
36
Total Score of Appraisal by Customer = (A+B+C+D) / (N*5/100)
Where, N= Number of job behaviors in the appraisal form
Guidelines Part B: Customer/Retailers
This section is to be completed by the immediate customer of the dealer in charge.
Since, dealer in charge sells its products to the retailers/dealers. They are the
customers and this section must be filled by all the customers.
For the anonymity of the response customers may not mention their identity but they
must mention their relationship between them.
The customer needs to rate on the basis of three different aspects namely relationship
with customer, interpersonal skill and communication skills.
Each aspect contains few question of which customers need to rate from strongly
disagree to strongly agree.
The customer must also mention about the dealer about the job aspect, how it could
have been done better, problems faced by them and how dealer has helped them to
solve the problems.
9.3 Self-appraisal form:
This appraisal form is for the dealer in charge themselves to evaluate the work based on various needs and accomplishments. All the questions are open ended and there are small boxes where you have to briefly write the comments.
Full Name:
Post:
Department:
Write in brief about the most significant accomplishment this year?
37
What critical attributes does my job require and how much do I possess?
What progress have you made this year to accomplish more responsibilities?
What are your major strengths and weakness?
What can be done to further improve my performance?
What goals did I fall short of meeting?
Reasons for not being able to meet the goals
Appraisal Component Weight Score Remarks
1 Score of Appraisal by Supervisor .55
38
2 Score of Appraisal by Customer .35
3 Score of Self-appraisal .10
4 Total Score (out of 100)
Note: For the self-appraisal score, manager can use his/her judgment to assign the score, and the weightage is to serve as reinforcement to stop the employee filling up wrong information.
Guidelines for Part C: Self
In this part dealer in charge must rate themselves.
They need to be precise and clear about their concerns and response.
They must write about their accomplishments during the appraisal period.
They must write about the problems faced by them and how it can be improved.
They must write about how they can grow and take on more responsibilities through
different trainings and developmental programs.
39
40
Chapter 10: Application of Performance Appraisal Score
10.1 Salary Administration
41
No Increment
Identify the appropriate HR Intervention like, training, disciplinary action etc.
Yes
Yes
NO
No
Increment by 10%
Increment by 15%
Does employee meet the standard
of 70-89%?
Does the employee meet the performance standard of 90%?
10.2 Promotion
Promotion criteria for a managerial position
Criteria Points Acquired points
(a)
Weightage(b)
Scorea x b5 3 2 0
Qualification Masters and additional degree
Masters Bachelors other 0.15
Experience >8 years 5-8 years 2-4 years other 0.35Training >5 3-5 1-2 other 0.25PA Score(for 2 consecutive year)
90% above 90-80% 80-70% other 0.25
Total ScoreNote: Minimum score for promotion has to be 3.5 or above
For a non-managerial position
42
Yes
Yes
No
No
Promotion
No Action
Assess following year’s appraisal score
YEAR 2
Performance appraisal score exceeds 90%
YEAR 1
Performance appraisal score exceeds 90%
10.3 Retention and Termination
43
No
Warning
Is the employee’s performance score
below 50%?
Is the employee’s performance score
below 50%?
Training and development
activities
Retention
No
No
Yes
Yes
Yes
Assign to different department
Is the employee’s performance score
below 50%?
Assess the performance in the second year
Assess the performance in the third year
Note: Even after two years of re-assigning to a different department, if the employee has PA score below 50% then the employee contract is to be terminated
Note: In addition to the above process, there are few instances whereby an employee can be directly terminated. Some of them are:
Physical violence Sexual harassment Taking/giving bribes Destruction of property Consumption of alcohol or recreational drugs at work place Financial(funds) frauds
10.4 Training need identification
44
If the employee has a performance appraisal score below 50 or less, or
If the employee has a performance appraisal score between 50 and 60 for two consecutive year
Identify individual training needs
Analyze improvement area
Conduct appraisal interview
Analyze appraisal dimension scores: Review the response in B3 & C2 section of MBO and Self-Appraisal section of 360 Degree
10.5 Transfer/Re-assign
45
No
Yes
Yes
Enquire which area the employee is interested in and reassign to a different
department
Performance problem Diagnosis
Is the low performance due
to aptitude problem?
Is the employee’s
appraisal score below 50%?
NoNo action
Chapter 11: PMS System Implementation Plan
After preparing the performance appraisal system, next challenge lies in how to implement it.
So, for this purpose we have designed an orientation and training program, and this would
help the employees i.e. Dealer In-charge and the HR employees, the position holders that we
have chosen, to understand and implement the plan and systems.
Preconditions for the program
The following requisites must be fulfilled before conducting the program
Scheduling the program as per the convenience of participant
Arrangement of logistics in the meeting hall of Gorkha Brewery Nepal
Availability of all forms and job description
Program Details
Name Orientation Program on PMS
Target group Dealer In-charge
Duration 1 day with four hours session
Number of participants xxxxxxxx
Resources required Laptops, projectors, seating arrangement, appraisal forms and
planning formats
46
Gorkha Brewery, Nepal
Sales Department
Session Topic: Orientation on Performance Management System
Purpose of program
The purpose is to make the employee of Sales department familiar with different forms
developed for performance management
Objectives
After completion of the orientation program, the participants will be able to
Formulate performance plan and/or supervision plan
Classify the benefits of MBO, BARS and 360 Degree appraisal forms
Design appraisal forms
Fill out the appraisal form with no error
Time: 1:30 pm – 5 pm
Date: June 1, 2018
Session plan
S/N Duration Activities Purpose Resources Remarks
1 1:30-1:35 Introduction to
the session and
the objectives
To notify the participants on the
content of the session and its
importance
Slides Attention
(SLT)
2 1:35-2:00 Introduction to
performance plan
To make participants understand
the need, process and the benefits
of performance plan
Slides Attention
(SLT)
3 2:00-2:15 Q&A session To give participants to ask
questions and clear any quires
- Retention
(SLT)
4 2:15-2:45 Ask to develop
performance plan
To make employees and their
supervisors to co-create a
performance plan
Handouts of
the format of
performance
plan
Reproduction
(SLT)
5 2:45-3:00 Feedback sessionTo follow up on the plans prepared - Motivation
47
and to provide feedback on how it
is and the benefits of the form
(SLT)
Break (3:00-3:10)
6 3:10-3:20 Discussion
session about the
present appraisal
system
To help employees recall the
problems they have faced in the
present appraisal system and help
validate the use of new system
- Reflective
Observation
(ELT)
7 3:20- 3:45 Introduction to
the different
appraisal system
that are popular
at present
To help participant learn about the
various appraisal system designed,
its pros and cons, and make them
aware of the biases that may occur
Slides Abstract
Conceptualiz
ation
(ELT)
8 3:45-4:30 Ask to list out
the different
behavioral /
dimensions of
the job
To make sure, employees classify
the different performance
dimensions that are critical for
their goal achievement
Sides Active
Experimentat
ion
(ELT)
9 4:30-4:50 Make them fill
the appraisal
forms
To make participants able in filling
out the appraisal forms
Appraisal
forms
Concrete
experience
(ELT)
10 4:50-5:00 Feedback To enquire and provide feedback
on the topic learned
-- -
Concluding the session
Note:
a) SLT =Social Learning Theory
b) ELT= Experiential Learning Theory
48
Chapter 12: Recommendation
Strategic meeting should be conducted in every quarter and it should be the basis of
PMS in Gorkha Brewery. All of the Heads of Department should be involved in the
meeting. In the meeting they should plan and set goals and responsibilities based on
the employees’ KRA and job description
Expectations should be clearly communicated and if any confusion is there the
employees should be motivated to consult with their supervisors. Tasks and goals
should be divided and communicated accordingly with its deadline which is accepted
by the employees. They should also get the information from the employees regarding
the resources required to reach the goals.
Yearly goals are divided into quarterly goals and KPIs are measured every quarter
which is a very good measure to check performance discrepancies and correct them
similarly identify achievements and motivate for achieving higher targets on time.
5 KPIs and 5 objectives are set for every position but the number of KPIs and
objectives can vary as per the position and level of the employee.
Quarterly goals aligned with quarterly bonus. But they need to make sure that the
objectives follow the SMART goal criteria.
They need to make sure that the bonus they receive as a reward is valued by the
employee as employees in different level might have varied expectations for reward
Annual appraisal is conducted by managers after discussing with the employees.
While discussing they should have critical incidents noted down beforehand so that it
becomes to the basis for their discussion. So they can also use the critical incident
technique.
Employees are rated based on their achievement of their objectives using 5 rating
scores. They can also incorporate behavioural dimensions and criteria that are
important for the job positions. The assessment should be based on two criteria i.e.
functional and competency where weightage of importance should be allocated as per
the nature of the job.
49
Along with the 5 point rating scale they can also include sections like
strength/weakness of the employee, improvement areas, trainings and resources
needed etc. These elements can strengthen the results obtained.
Performance planning and supervision panning can be used to obtain the desired level
of performance expectations.
Since the employees of Gorkha Brewery are more than 500 employees they can use
360 degree feedback system and software performance appraisal tool like PiiQ so that
employee competencies and skills gaps could be easily identified. The main
advantage of this system is inspiring and motivating employees by providing
transparency into their overall contribution to meet business goals.
Application of the performance appraisal can be used in HR actions like reward,
salary, promotion, transfer, layoff, retention and termination like we suggested.
Things to remember when designing and implementing your PMS
Performance management is a continuous process, not an event Communicate the purpose, intentions, and process of the new PM program Establish goals that are:
Specific, not vague Directly linked to the corporate strategy Observable Measurable Linked to specific time frames Tied to consequences
Feedback (positive and negative) is most effective when it immediately follows the behavior
Be specific in your documentation and during the meeting. Give concrete examples of behaviors. Avoid judgmental terms.
Provide constructive feedback that includes suggestions for improvement Seek and consider input from the employee regarding action plans Use a format that is easy to use and makes sense to the users Coaching will help employees make their desired behavioral changes
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