Performance Management System inIndian Oil Corporation Ltd

• Set up as a robust, transparent performance measuring system to reward according to individual/ small team performance, suitably differentiating higher performance, based on well defined performance measures.”

• IndianOil implemented e-PMS for officers in 2005-06

• Departmental promotion, individual based incentive are disbursed based on ePMS output ratings and scores

Introduced system intervention in ePMS to improve• Performance Bell Curve approach • Transparency

and provide• Opportunity to make representation against the entries

and final grading

ePMS seeks to determine individual performance and potential through a system that is:• Objective• Transparent• Aligned to the Business needs• Robust• Easy to Use and Manage

ePMS features

Role based KRAs and KPIs Special KRAs/Additional KRAs Weightage to KPIs Stretch Tool for target setting Self Appraisal and Final rating Performance diary Monitoring of status

Appraisal Cycle

• Performance Planning

• Mid Year review & feedback

• Feedback and Review

• April - June

• October

• April

• Ongoing monthly review and feedback

• Final Performance Appraisal

• April-May

Performance Planning process

Appraisee completes

Performance Plan on KRA

section by setting targets,

assigning weightages for

each KPI chosen in his

plan

Appraiser assigns

stretch on each chosen

target, makes

modification if needed & Appraiser

signs-off on the Plan

Plan is sent to Reviewer for inputs and Final Sign-off

Final Performance

Plan for Appraisee is

ready

Scale for appraisal of KPIs

• 5-point continuous scale

Significantly below

expectations

Moderately below

expectations

Just Meets Expectations

Moderately above

expectations

Significantly above

expectations

Level 1 Level 2 Level 3 Level 4 Level 5

Performance Appraisal-Soft Skills

Competencies• Moving from ‘critical attributes’ to ‘competencies’.

Competencies are like an iceberg.• Competencies are the underlying characteristics of

individual/s i.e. Knowledge, Skills, Attitudes, Values, Self-Concepts, Traits and Motives that have a causal relationship with effective and/ or superior performance in a job situation.

Competencies

10

Deep Rooted Lasting Predictive Measurable Trainable

Performance Appraisal-Soft Skills

Potential Ability to shoulder higher responsibilities

Adaptability to changeCollaborationCost Consciousness/Resource utilisationDependabilityQuality of Work / Output

Managing ChangeBoundary ManagementEntrepreneurialLeadershipEnhancement of Quality and Output

Senior Management Junior Management

Performance Diary

Final Year Review processAppraisee completes

Self –Appraisal on KPIs &

submits

Appraiser determines Rating on each KPI,

Competency, value and potential element

System calculates the PMS Score as per weightages of

elements and overall weight of sections based on

KPI competencies,

values and potential

Reviewer validates each

rating and makes changes,

if any

Final KPI score is used for PRP. Overall grade is finalised by

Countersigning officer. This is used for DPC

The overall grade and

assessment of integrity

communicated through online

display

Benefits accrued… Well defined Roles /targets/clear expectation

for all officers Performance cycle aligned with fiscal year Appraisal process streamlined/Better

monitoring/Online robust MIS Opportunity to differentiate performance (bell

curve approach) on a continuous linear scale from 1 to 5 and reward accordingly

Online display of Overall grade and assessment of integrity