Performance Development

and Review (PDR)

Learning objectives
• Understand the rationale behind the Performance
Management System (PMS)

• Know the reason behind the shift to PMS

• Appreciate the Key and Winning Features of PMS

• Be familiar and acquainted with the PMS Cycle

Reasons behind the shift to PMS

• Delivering effective and efficient services to the

public

• Assessing the performance of these services on an

ongoing basis

• Increasing transparency in communicating

organizational performance
Contents
 Defining Performance  Rewarding Performance
 Defining Performance Management i. Linkage to Performance
 Performance Management Design Incentive
 PDR system design principles ii. Linkage to salary increment
 Planning Performance  Developing Performance
i. Goal setting process i. Linkage to promotions
i. Behavioral competencies ii. Linkage to training and
development
 Reviewing Performance
 Implementing PDR System
i. PDR format
i. Timelines for implementation
ii. Mid-year review
ii. Key implementation steps
iii. Year-end appraisal
 Traditional vs. High
iv. Rating calculation and moderation
Performance Organization
process
 Practices in Performance
Management and Learning
from Best Employers
What is Performance?

Motivation: Is defined as the desire to achieve a goal or a certain performance level,

leading to goal-directed behavior. When we refer to someone as being motivated, we
mean that the person is trying hard to accomplish a certain task. Motivation is clearly
important if someone has to perform well; however, it is not sufficient.

Ability: Defined as having the skills and knowledge required to perform the
job—is also important and is sometimes the key determinant of effectiveness.

Environmental Factors: Such as having the resources, information, and

support one needs to perform well are critical to determine performance.
Defining Performance Management
Performance Management Design
Objectives of PDR system
 Links performance measures of individuals to the strategic
objectives of the organization

 Provides organization with a clear set of performance

expectations, at all levels; Quantifies how departments and
individuals are enabling the achievement of the overall goal
 Initiates a root cause analysis for actual performance results that
are below target
 Rate employees on the results achieved and potential displayed
 Communicates key strengths and areas for improvement
 Provides a transparent link between performance results and
promotions, rewards and career development
What to measure?
Who measures?
Frequency of measuring?
Distribution
Outcome
Integration of Performance
Linkage of Performance with other HR
Processes
 PDR system
 Goal setting
 Communication of Competencies

Planning Performance

 Linkage to Training  Mid Year Review

Developing
and Development Reviewing
Performance  Annual Appraisal
 Linkage to Promotion Performance
 Moderation Process

Rewarding
Performance

 Linkage to Annual Increment

 Linkage to
16 Performance Incentive
Two components of performance measurement
in PDR system
PDR system

Goals Competencies

Output Capability
Objective: Drive enhanced Institutional performance Objective: Develop employee’s capabilities to be able to
through measurable targets/ goals deliver on targets/ goals

 What the employee accomplished against the  Represent an institution’s core values or behavioral
objectives or goals that were assigned expectations
 Objectives are unique to individual and differ from  How the employee behaved against standards or
one appraisal period to another. expectations from him/her
 Focus employee’s efforts to help implement the  How the employees do their job on an ongoing basis
institutional, department or unit performance  Having them as a part of the appraisal increases the
objectives likelihood that every manager is discussing & setting
standards for their direct reports on these dimensions

Both required for a balance picture of the performance

Planning Performance
Goal Setting Process
- Cascading of Goals from institution goals to individual goals
- Appraiser and appraisee to jointly set following for the appraisee:
 Key Result Areas (KRAs)
 Weights for each KRA
 Key Performance Indicators (KPIs)
 Performance Targets
Communication of Behavioural Competencies
- Understanding the definitions of Behavioural Competencies and expected behaviours
during the course of the year
Parties involved in Planning Performance:
- Top Management: Decides on organization’s overall goals
- Operating Committee: Cascades overall goals into departmental goals
- Head of Department (Reviewer):
• Negotiates goals and targets for the department with the operating committee.
• Cascades targets to direct reports
• Reviews the KRA and targets for every employee within the department
• Reporting Officer (Appraiser) and Subordinate (appraisee): Jointly discuss and set targets
for the appraisee
Goal Setting Process- Key Components

Goals Strategic vision and Institutional objectives of the

institution or the department
What do we want to achieve?
Are translated into

KRA’s
Key areas for establishing expectations for performance
(Key Result Areas)
Linked to accomplishment of goals
What do we need to do to achieve that goal?
Which are broken
down into measurable
KPI’s Quantifiable measures for evaluating progress towards
(Key Performance Indicators) Accomplishment of goals
How do we measure success?

That have a
targeted
Quantifiable targets used to identify acceptable or achievable
Performance Target
Performance expected by the institution;
What is the ideal performance target?
Role of stakeholders in goal setting process

Process Owner

Operating/
Top Mgmt Moderation Department HR
Committee Head

 Setting out  To help HoD identify  Identify KRA’s and  Process Owner will be an
organization’s KRA and KPI for their KPI’s for their independent third party
Objectives at the department department opinion on the goals
beginning of the year  To question the basis  Review documented  Facilitate formulation of
of the goals KRA’s and fill in the the operating committee
 To demand the performance goals  Ensure timelines are met
rationale behind the set  Take sign off on the for various stages of the
goals goals from the goal setting
 Verify whether it aligns operating committee  Facilitate discussions
with the institution’s  Cascade the targets within department so that
strategy down the levels within the KRA’s are cascaded
 Understand the stretch/ their departments down to all employees
lag in the goals and  Review the KRA and - Ensure the right process
provide realistic targets for all has been followed in
guidance on the goals employees within the setting the goals
department - Coach and counsel the
individuals and address
anxieties and concerns
Role of stakeholders in goal setting process

Appraiser Appraisee

 Goal Setting Meeting  Goal Setting meeting

with Appraisee at the with appraiser at the
beginning of the year beginning of the year
 Decide and fix KRA for  Negotiate KRA’s, with
the appraisee the appraiser
Building SMARTER Goals
Understanding behavioral competencies

What are Behavioral Competencies?

 A personal characteristic, which is displayed by outstanding
performers in a role in a given work environment and which is
demonstrated through specific and observable behaviors
 Examples include Interpersonal/ Communication Skills, Time
Management, Leadership skills etc.
Why include Behavioral Competencies in PDR system?
 To highlight the behaviors for superior performance in an
organization
 To articulate the expectations on behaviors and attitudes from
employees
 To highlight "soft" skills required when defining job expectations
 To reflect organizational values and strategic priorities
What are the Behavioral Competencies included in PDR System
 Competency Matrix may consist of 6 individual and 3 supervisory
competencies
Sample of behavioral competencies

Individual Competencies

Competency Name Key Competency Indicators

1) Respecting Diversity The employee:

 fosters inclusion- class, caste, religion and country
 consideration for different learning pace
 tolerance towards different perspectives of colleagues and students
 provide equal opportunities for learning

2) Commitment and The Employee:

Motivation  work in the interest of students, colleagues and institution
 creates a positive environment inside and outside of class
 brings out the best in students and co-worker
 instills optimism and confidence

Supervisory Competencies

Competency Name Key Competency Indicators

1) Supervisory The employee:

Responsibility  trains, develops, and mentors his/her staff
(Building Best People)  faces performance issues candidly and squarely
 clearly sets achievable goals for department
 ensures that goals are met on a timely and accurate basis
 ensures that he/she and his/her staff comply with training requirements
 develops, delivers timely and meaningful Performance Evaluations
 Implements policies and procedures with staff.
Reviewing Performance

Parties involved in reviewing performance phase:

 Appraisee: Person whose appraisal is being done

 Appraiser: Person who is doing the appraisal, normally the reporting
officer
 Reviewer: Person who reviews appraisers appraisal, normally the Head
of Department
 Moderation Committee: for conducting the moderation exercise,
consisting of Dean / Departmental Head & HR Head
 HR: Process Facilitator, will ensure all required activities are conducted
timely
PDR Format
Comprehensive form with following Sections:

Section I Goal Setting & Achievement

 Statement of goal (KRA) and measurement criteria (KPI) for the year jointly identified
by Appraiser and Appraisee. Each goal is given a relative weightage
 Rating on performance against goals given at the end of the year by appraiser
Section II Behavioural Competency Evaluation
 Core and Leadership Behavioural competencies evaluated by appraiser

Section III Employee Strengths, Areas of Improvement and Training Needs Identification
 Statement of status of training programs identified in previous year’s appraisal
discussion
 Statement of employee strengths and areas of improvement identified by the
appraiser
 Statement of performance expectations and training needs identified by the
appraiser
 Sign-off by appraisee on evaluation

Section IV Final Evaluation

 Final Overall Evaluation by appraiser and Sign-offs of appraiser and reviewer
PDR Format: Goal Setting

• Goals (KRA’s)
• Measurement Criteria
(KPI’s)
• Unit of Measure
• Weights
• Target
• Achievement (mid-year
and year end)
• Self Rating
• Appraiser Rating
• Weighted Score
• Appraiser Remarks

Total weighted score

Overall rating on goals
Rating scale
PDR Format: Section II – Behavioral Competency
Evaluation

Individual Competency
Name
Key Competency Indicators
Self And Appraiser Rating

Appraiser Remarks on
Ratings

Supervisory Competencies

Overall Rating Calculation

PDR Format: Section III – Training Needs Assessment

Training Status for needs

identified previous year

Strengths and Areas of

Improvement

Training
Recommendations

Appraisee Sign Off

PDR Format: Section IV – Comments & Sign Off

Rating Calculation

Overall Rating and

Promotion
Recommendation

Appraiser & Reviewer

Sign Offs

Department Head and

Reporting Officers
Comments
Rating scale for performance evaluation
A Five-point rating Scale
Needs
Outstanding Very Good Good Improvement Poor

5 4 3 2 1

Outstanding: Performance is below acceptable level and immediate improvement is needed in

order to reach an acceptable level of performance

Very Good: Minimum job requirements are accomplished; however, some progress is required in
order to consistently meet performance expectations

Good: Overall, a solid performer who is recognized as effective by management team and key
work partners. Performance may exceed expectations at times

Needs Improvement: Consistently achieves high levels of commendable performance and is

recognized as highly effective by management team and key work partners; indicating potential
for future advancement

Poor: Accomplishments are rarely equaled, are clearly obvious to management team and key
work partners and serves as a role model; indicating strong potential for rapid future development
 Ratings scale explained

 Consistently exceeds expected performance levels

Outstanding  Consistently accomplishes results in advance of established timeframe/deadlines
 Consistently requires fewer resources than budgeted
 Outcome/impact is consistently of greater benefit to the institution than expected

 Exceeds expected performance levels on some, but not all,

objectives/tasks/projects, and meets expected performance levels on all others
Very Good
 Accomplishes results in advance of established timeframe/deadlines on some,
but not all, objectives/tasks/projects, and meets expected timeframe/deadline on
all others
 Requires fewer resources than budgeted on some, but not all,
objectives/tasks/projects, and requires budgeted resources on all others
 Outcome/impact is of greater benefit to the institution than expected on some,
but not all, objectives/tasks/projects, and meets expectations on all others

 Consistently meets expected performance levels

Good  Consistently accomplishes results in accordance with established
timeframe/deadlines
 Consistently requires budgeted resources
 Outcome/impact consistently meets expectations
 Ratings scale explained

Needs Improvement  Generally meets expected performance levels, with few exceptions where
performance may fall short of expectations
 Generally accomplishes results in accordance with established timeframe/
deadlines, with few exceptions where timeframes are not met
 Generally requires budgeted resources, but with a few exceptions may require
additional resources
 Outcome/impact generally meets expectations, with few exceptions where impact
is less than expected
 Accomplishes results after established timeframe/deadlines on some, but not all,
objectives/tasks/projects, and at least meets expected timeframe/deadlines on
others
 Outcome/impact is of lesser benefit to the institution than expected on some, but
not all, objectives/tasks/projects, and meets or exceeds expectations on others
 Requires more resources than budgeted on some, but not all, objectives/
tasks/projects, and requires budgeted resources, or less, on all others
 Does not meet expected performance levels on some, but not all, objectives/
tasks/projects, and meets or exceeds expected performance levels on others

 Consistently falls substantially short of expected performance levels

 Consistently fails to meet established timeframe/deadlines
Poor  Consistently requires substantial over-budget resources
 Outcome/impact consistently falls substantially short of expectations
Mid-year review

Objective of the mid year review is for the appraiser and appraisee to have a discussion on
YTD performance trends and incorporate any course correction in KRA, weights or targets if it
is required.
Mid-year review will provide a good opportunity for the appraiser to do a status check and
give performance feedback to the appraisee

Key activities during Mid-Year review will be:

 Joint review by Appraisee and Appraiser
 On each KRA
 On each Behavioral skill
 Performance Discussion between Appraisee and Appraiser
 Performance feedback given to the appraisee
 Course correction in KRA or weights done if required
 Change in goals or weight ages reviewed and approved by reviewer
Year End Review – Key Activities

 Self Appraisal by Appraisee

- Rating on each KRA
- Rating on each Behavioral skill
 Performance Discussion between appraisee and appraiser and
appraisal by Appraiser. Appraisee signs-off on the appraisal.
 Ratings calculated by appraiser
 Recommendation given for promotion by appraiser
 Ratings and promotion recommendation reviewed by Reviewer,
modified in case of disagreement and finally approved and signed
off
 Grievance case resolved by reviewer
Role of Stakeholders in year - end appraisal

Process Owner

Appraisee Appraiser Reviewer (HoD) HR

 Monitor and report  Conduct joint year end  Review ratings and  Set up Helpdesk to
progress appraisal for appraisee promotion recommendation facilitate year-end
 Fill in year end  Discuss appraisee’s self given by appraiser during appraisal process
achievement on all rating and give rating year end appraisal.  Send out forms to
goals  Identify training &  Modify ratings in case of appraise and transfer
 Conduct self appraisal Development disagreement. forms between appraiser
on goals and requirements  Approve and sign off final to reviewer
competencies  Take appraisee’s sign off ratings and promotion  Compile ratings for
 Conduct appraisal on the appraisal recommendation moderation process
discussion with  Give performance  Resolve any disputes arising  Facilitate rating
appraiser and provide counselling in the rating process moderation process
rationale for self  Calculate final rating between appraiser and  Ensure process gets over
ratings appraisee in time
 Give Promotion
 Sign off on appraisal recommendation
 Include comments (if any)
 Forward to reviewer

36
Sample
Weightage of KRAs and Behavioral competencies

Weightages for KRAs and Behavioral

Level Competencies
Goal / KRAs Behavioral Competencies
Level 1 30 70
Level 2 40 60
Level 3 50 50
Level 4 60 40
Level 5 70 30
Level 6 80 20
 Sample Rating Calculation
Part II: Behavioural Competency Evaluation
Rating on KRAs
Behavioural Appraiser
3 goals for the year Competency Rating
Appraiser Rating after year end appraisal
Respecting Diversity
VG (4)
Part I: KRAs Commitment and
Motivation OS (5)

Appraiser Weighted Job Knowledge VG (4)

Goal Weight Rating Score (Out Interpersonal/
of 5) GD (3)
Communication skills
KRA#1 40% VG (4) 0.40 x 4 = 1.6
Compassion and
Sensitivity OS (5)
KRA #2 40% OS (5) 0.40 x 5 = 2.0
Time Management GD (3)
KRA #3 20% VG (4) 0.20 x 4 = 0.8

Total 4.4 Building Best People GD (3)

Leadership VG (4)

Communication VG (4)
and Feedback
4.1
Total 35/9=3.88
Example of Rating Calculation
The staff being appraised is in level Level-6

 Weightage of KRAs in Performance appraisal: 80%

 Weightage of Behavioural Competencies in Performance appraisal: 20%
Part IV: Final
Rating Part III: Final Evaluation
Score Range Rating
Component Score Weight Weighted Score
(Score x Weight)

Goals/ 4.4 80% 4.4 X 0.80

4.75 - 5.00 OS
KRAs = 3.52
(Section I)

Behavioural 3.88 20% 3.88 X 0.20 4.01 - 4.74 VG

Competencies = 0.77
(Section II)
3.51 - 4.00 GD

Final Score 3.52 + 0.77 = 4.29

2.76 - 3.50 NI

2.75 & below PR

Final Rating Very Good (VG)
Moderation process

Training
High
Bell Shaped curve and its applications
Solid Citizens Stars

Performance
Counseling
Challenging
Work
This is also called the normal probability
Rewards
distribution and the Gaussian distribution. Dead Wood Problem Feedback
Children
Dead Wood
Low Potential High
Assess
Exit
Number of Employees

Stars

Performance Rating

Bell Curve
Rewarding Performance

Individual Performance ratings after moderation will be used for:

 Linkage to Salary Increment

Rewarding Performance

Approach Scale C B A A+ A++

Revised PR NI GD VG OS
 Employees shall receive annual incremental
Scale
adjustments to their salaries provided they
Level 1 0 6 8 12 20
have demonstrated sufficiently high
individual performance
Level 2 0 6 8 12 20
 Institute to determine average annual
increment % at each level based on market
Level 3 0 5 6 10 16
conditions, inflation, planned wage bill
increase and capacity to pay
 Institute to create a matrix linking increment Level 4 0 5 6 10 16

% to performance rating
Level 5 0 5 6 10 16

Level 6 0 5 6 8 11

Note: Illustration depicts possible

Level 7 0 5 6 8 11
increments as a % of basic salary
Developing Performance

PDR system for will be used providing inputs to following process:

 Linkage to Promotions
 Linkage to Training & Development
 Performance Counseling
Linkage to Training & Development

 Reporting officer shall identify training needs and recommend training

programs to be attended by employee in the coming year
 Reporting officer will get a chance to assess development of employee on
trainings attended in the previous year since the system captures training
history
 Performance discussion and rating on competencies will help employee
understand gap areas vis-à-vis desired competencies
 Reporting Officer will identify employees strengths and areas of
improvement. Will serve as key developmental inputs for the employee
for the coming year.

44
Key steps in implementing PDR

The key steps to keep in mind for implementation involve Communication

and training
 Communication and branding of the new system
 Training of end users
 Documentation and institutionalization
 Build linkages to other HR systems
Traditional vs. High Performance Organization
What makes Google a high performing
and admired organization?
Practices in Performance Management
Adobe’s Check-In Process
Practices in Performance Management
Pulse Check In at Deloitte
Learning from Best Employers
Thank You