PERFORMANCE APPRAISALPROCESS

AT

JAKSONS LIMITED2010

CONTENTS OF PRESENTATIONWhat is PMS.Objectives of PMS.Role of Appraisee, Appraisor & Review OfficerSome Essentials of Appraisor & Appraisee Meeting.Performance Evaluation Errors.Proposed KRA Based PMS for Executive cadre & Above.Proposed PMS Process at Staff Cadre.

MEANING OF PMS

PERFORMANCE APPRAISAL IS THE SYSTEMATIC AND OBJECTIVE PROCESS OF REVIEWING AN INDIVIDUALS PERFORMANCE DURING APPRAISAL PERIOD AND ASSESSING HIS POTENTIAL FOR FUTURE IMPROVEMENT

PERFORMANCE APPRAISAL OBJECTIVESTo Integrate Company and Individual GoalsTo Increase awareness of targets, tasks and responsibilities To ensure a more objective assessment of Performance and PotentialTo help the employee to overcome his weakness and improve upon his strengths.

To create Sufficient data for :Training and DevelopmentJob Enlargement and Enrichment Career and Succession Planning Compensation AdjustmentPromotion and TransferTo build an open and Transparent work cultureTo reinforce a climate of achievement motivation

Monitor employee performance throughout the year

Give continuous feedback on performance and progress toward objectives

Collect information and outside perspectives on performance of the employee (360feedback)

Consider what was achieved and how it was achieved

ROLE OF APPRAISOR

Prepare for your performance feedback session

Prepare for objective setting by reviewing organisational plans current performance term and beyond

Consult the HR team when you have questions

ROLE OF APPRAISOR

ROLE OF APPRAISEEConduct a thorough self evaluation

Provide input to supervisor in the development of individual goals that contribute to departmental goals and the Organizational goals.

Discuss concerns and/or questions about any part of the job or performance review with supervisor.

Identify and participate in training and development discussions.

ROLE OF A REVIEW OFFICER IN PMSTo ensure objectivity of PMS Process.

To review the self assessment of Appraisee & counter assessment of Appraisor.

To review & give his feedback.

To finalise the development plan & review its progress.

MEETING POINTS BETWEEN APPRAISOR & APPRAISEE BEFORE MEETING. State purpose of the meeting Clearly. Communication should be clear and not ambiguous.Date, time and place to be decided in advance.Sufficient time should be kept between two appraisal meeting Plan the points to be discussed.

PREPARATION FOR THE MEETINGCollection of the facts and necessary data.

Plan the points to be discussed.

Be prepared with inputs for a constructive appraisal meeting.

LOCATION OF MEETINGWHERE

It should preferably be at a neutral place with no physical barriers like the conference room.

WHERE NOT

At the Managers desk.At the Appraisees desk.

LANGUAGE DURING MEETINGDO`SEstablish contact(say hello, handshake)Ask open questions.Seek to reach an agreements.Be more elaborate in communicationDON`TSDont InvadeDont be threatening in giving a critical feedbackAvoid closed questionsAvoid reaching confrontation.

PERFORMANCE EVALUATION ERRORS MADE BY APPRAISER

ERRORINDICATORSPOSSIBLE CAUSESHaloHigh inter-correlation of itemsUses Knowledge of one item to rate another LogicalHigh inter-correlation of adjacent itemsRates similar appearing items the sameSeverityLow ratings of all rateesHas high performance standards; is resistant to evaluationCentral tendencyAverage ratings of all rateesIs resistant to evaluation; is unable to distinguish between employees RecencyNo indication of ratingBases rating on most recent behaviorProximityHigh inter-correlation of adjacent itemsUses knowledge of one item to rate an adjacent itemLeniencyHigh ratings of all rateesHas low performance standards; is resistant to giving criticism

PART I

KRA Based PMS PROCESS

For

Executive Cadre & Above

KEY RESULT AREASWHAT IS KRAKRA of each organizational member includes the specific business responsibilities that have an ultimate impact on the success or failure of the enterprise as whole.

In other words, KRAs describe the reason why the job exists- they are lables and not long statements of outcome that are expected.

KRA consists of all the prime responsibilities of an individual member.

FEATURES OF KRAsKRAs are broad areas within a job that change little from year to year

They identify the areas within which a person is responsible for achieving results.

Majority of KRAs are found from the job description simply by asking the question What are the most important things that the person does?

HOW MANY KRAs CAN A PERSON HAVE ?In general a job may have between Five to Seven KRAs.

If it is less than Five, probably some important area would have been overlooked or if it is more than seven,chances are great that what has been generated is a task inventory or list of goals.

WHY DO WE HAVE KRAsKRAs are the basis for setting specific objectives and are broad statements of the areas within which the job holder is expected to produce results.It is the framework for a person to exist and operate in the organisation.

FINE TUNING OF KRAs

Review the list to make sure that each KRAs deals with a discrete and non overlapping part of the job.Make sure that no significant responsibility areas have been overlooked.Ensure that the KRAs are appropriate.

HOW TO SET KRAS

OPTION- I BASED ON JOB DESCRIPTION

On the basis of job description, list down all major & minor activities to be done to perform that job. From these activities, KRAs can be arrived at.OPTION II BASED ON ANNUAL PLAN

Each department makes its Annual plan. From Annual plan, department goals & interventions to achieve those goals are made. These Goals & interventions are segregated into department employees as their KRAs.

OPTION III BASED ON AS IS MAPPING & TO BE

Make As Is mapping regarding where is the department at the beginning of appraisal period in terms of performance & system working. Do To Be process where Department wants to be at the close of Appraisal period in terms of Performance & System working.

By Comparing To Be with AS IS, some gap will emerge. To fill these gaps, identify number of interventions & convert them into KRAs of employees.

OPTION- IV BASED ON FOUR WINDOWS OF BALANCE SCORE CARD

External/Internal Customer Expectations

SOPs missing/Needs to be added

Cost Reduction Areas

Self Improvement Areas

Some Essentials regarding KRA Setting

KRA needs to be fulfilling the concept of SMART, as explained below:-

SMART Concept: S SpecificEasy to understandSpecific desired future resultsDefines the goal by answering: who, what, when, why, how

M- MeasurableDescribes how each goal will be measured.Decide measures of SuccessAnswers the following questions: - How will I know/show the results has been achieved?

A - Achievable & Agreed

With all the other commitments within the department, is this goal achievable?Is this goal within the departments control and influence?Most important, the goal has to be decided by mutual consensus and agreement.

R Realistic & RelevantIs the goal in alignment with department goals.Does the goal relate to broader objectives that your department wishes to achieve?Is the time frame reasonable?

T - Time bound

What is the specific time frame to achieve the goal/ (beginning & end date)Establish a time frame for short & long term goals, taking into account other factors such as delivary by others & coordinationInclude interim steps & a plan to monitor progress.

REVIEW PROCESS FOR KRAS

The progress of KRAs to be reviewed on Quarterly basis, keeping following points in mind:-

To review the progress toward KRAs.

To Discuss issues/problems, if any, with Appraisee.

To provide positive recognition for good progress.

To provide constructive feedback regarding performance.

To give inputs/advise on areas of improvement.

Jointly freeze action plan, to be reviewed in next monthly review meeting.

HOW KRAS ARE ACHIEVED

For achieving identified KRAs, number of Interventions need to be initiated during appraisal period.For Example: KRA is establishing Training process in the Organisations.Interventions to be undertaken for achieving above KRA Defining the Training Policy. Developing SOP for deploying Training process. Finalisation of Training Budget. Developing Infrastructure for Training. Identifying External & Internal Faculty for Trainings Workshops. Developing Annual Training Calendar on the basis of Training needs identified. Organising of workshops as per Annual Calendar. Documentation of Training papers. Maintaining & updating Training MIS & Data.

HOW KRAS ARE MEASURED

KRAs are measured by Key Performance Indicators i.e. KPI in measured terms. For every KRA, KPI needs to be defined.Some Examples:KRA: To establishing Training process in the Organisations.

KPI: To increase training hours per individual per annumn from present 3 hours to 8 hours. Training SOP deployed. Workshops organised as per Annual Calendar. Faculty developed as per Training Plan.

Some Examples

KRA: To improve market share of our product.

KPI: Increase in annual sales by 15%.

Increase in existing customers by 20%.

Identification of atleast 2 new markets.

Developing dealership network by 20%.

Some Examples

KRA: To improve Self Management.

KPI: To identify at least 10 strength & Improvement areas.

To develop annual plan for working of self improvement areas.

Taking regular feedback on self from People cross category as per annual plan.

Sharing on Self with people cross category as per annual plan..

KEY MANAGEMENT & COMPETENCE ATTRIBUTES

Management & Competence attributes are those attributes which facilitate an employee in getting the work done smoothly either by self or through others.Attributes identified for assessment under PMS Process for the year 2010 are listed below:-Job Competence 2. Target/Result Orientation

Leadership 4. Managerial Skills

Initiative Taking 6. Time Management

Positive Attitude 8. Inter-personnel Relationship

9. Communication Skills 10. Man management skills

WEIGTAGE OF KRAS & MANAGEMENTATTRIBUTES UNDER PMS

PERFORMANCE ASSESSMENT & REVIEW PROCESS

The Flow process for Performance Assessment & Review is shown as under:

Self Assessment by Appraisee.

Assessment of Appraisee performance by Appraiser.

Performance review by Review Officer.

Comments/Approval of Approving Authority on performance assessment & Development plan finalised.

The progress of KRAs & management attributes to be reviewed On Quarterly basis, keeping following points in mind:-

To review the progress toward KRAs & management attributes.

To Discuss issues/problems, if any, with Appraisee.

To provide positive recognition for good progress.

To provide constructive feedback regarding performance.

To give inputs/advise on areas of improvement.

Jointly freeze action plan, to be reviewed in next monthly review meeting.

RATING SCALE FOR PERFORMANCE ASSESSMENT

The appraisee shall be rated on a five point scale as follows: EXCEPTIONAL CONTRIBUTOR (EC) Characterized by high ability which leaves little or nothing to be desired unusual & challenging assignments are consistently well handled. Clear case of role model to be adopted by others.

SIGNIFICANTCONTRIBUTOR (SC)Characterized by consistent better performance than is normally expected. Needs guidance occasionally. Unusual & challenging assignments are normally well handled.

MODERATE CONTRIBUTOR (MC)

Characterized by fully adequate ability, completes routine assignments on time without the need for excess supervision. Meets requirements of competent employee. With a little initiative could have performed better.

PARTIAL CONTRIBUTOR (PC)

Demonstrated ability does not fully meet the requirements of the Position. Excessive supervision and direction normally required. Counseling can improve the Performance.

BELOW EXPECTATONS CONTRIBUTOR (BEC)

Indicates ability which falls clearly below the minimum requirements of the position. Needs immediate action as he is not likely to meet the requirements of a competent employee.

Scope and EligibilityAppraisal Period: Calendar Year i.e. January to December.

Scope:

All Executives in Executive Cadre & Above.

Eligibility:

All employees who have joined on or before 30th September.

Employees who have joined on or after 1st October will not be appraised.

be eligible for any assessment

PROCESSES FLOW FOR KRAS

Step IThe HoD of the Department has to make Annual Plan for Next one year for his Department.

Step IIThe HoD can take input from Management while making the annual plan.

Step-IIIGet the annual plan approved from Management.

Step- IVSet the department goals/Interventions to be achieved during next one year, using approved annual plan as base.

Step- VBreak up the department goals/interventions as identified into slabs i.e. for HoD, for Section Head and for Staff.

Step-VIConvert these identified goals into KRAs.

Step-VIIDiscuss & Finalise Five to Seven KRAs for each employee of Department.

Step- VIIIQuarterly review of KRAs Progress.

Step- IXAnnual Assessment on KRAs & Management Attributes.

Step XFeedback to Appraisee on Past year performance.

Step- IXDevelopment plan for next year.

APPROVING AUTHORITY

For Executives:Respective HoD.

For Managers: Respective HoD & HR Head (Asst./Dy./Addl./MGR)

For AGM & Above: Management Committee

PART II

PMS PROCESS

For

STAFF CADRE

PROCESSES FLOW FOR PMSStep IThe Immediate Supervisor has to identify major job responsibilities to be accomplished in next one year by appraisee.

Step IIThe HoD approve the identified job responsibilities.

Step-IIIThe immediate supervisor communicate the same to appraisee.

Step- IVAnnual Assessment on identified attributes.

Step VFeedback to Appraisee on Past year performance.Step- VIDevelopment plan for next year.

PERFORMANCE ASSESSMENT & REVIEW PROCESS

The Flow process for Performance Assessment & Review is shown as under:

Assessment of Appraisee performance by Appraiser.

Performance review by Review Officer.

Comments/Approval of Approving Authority on Performance assessment & Development plan finalised.

KEY ATTRIBUTES OF PERFORMANCE ASSESSMENT

Attributes identified for assessment under PMS Process for the year 2010 are listed below:-Job Knowledge 2. Work Output & Quality

Initiative & Drive 4. Work Attitude

Communication Skills 6. Attendance, Punctuality & discipline

Planning & Organising 8. Inter-personnel Relationship

9. Time Mgt. 10. Supervisory skills

RATING SCALE FOR PERFORMANCE ASSESSMENT

The appraisee shall be rated on a five point scale as follows: EXCELLENT (E) Characterized by high ability which leaves little or nothing to be desired unusual & challenging assignments are consistently well handled. Clear case of role model to be adopted by others.

VERY GOOD (VG) Characterized by consistent better performance than is normally expected. Needs guidance occasionally. Unusual & challenging assignments are normally well handled.

GOOD (G)Characterized by fully adequate ability, completes routine assignments on time without the need for excess supervision. Meets requirements of competent employee. With a little initiative could have performed better.

SATISFACTORY (S) Demonstrated ability does not fully meet the requirements of the Position. Excessive supervision and direction normally required. Counseling can improve the performance.

UNSATISFACTORY (US) Indicates ability which falls clearly below the minimum requirements of the position. Needs immediate action as he is not likely to meet the requirements of a competent employee.

Scope and EligibilityAppraisal Period: Calendar Year i.e. January to December.

Scope:

All Staff Cadre.

Eligibility:

All employees who have joined on or before 30th September.

Employees who have joined on or after 1st October will not be appraised.

Employees who have resigned and are serving notice period will not be eligible for any assessment

FORMS TO BE USED

Annual Appraisal Form for KRA

Annual Appraisal FormFORM FOR SUPERVISORS.docx for Staff

THANK YOU

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