Streamlining Performance
Management
FastTrack Communications
March 2015
Agenda
Introduction to the Session- The Background
Introducing the Performance Management System
Introducing the Performance Management System
Performance Planning
Performance Planning
Mid Year Review
Mid Year Review
Annual Appraisal
Annual Appraisal
Feedback and Coaching
Feedback and Coaching
Rewards
Rewards
Appraisal System Drivers
Common
Understanding
of
priorities and objectives
Performance
Planning
Rewards
Commitment
Clear
Expectations
You
based on
meaningful
work and rewards
Performance
Review
for individual
and group
contributions
Coaching and
Feedback
Capability
built through
feedback and learning
Key Roles - Whats everyone
upto?
Activity 1
Whats everyone up to?
MY
MANAGER
REVIEWER
ME
HR
What are these
key roles
supposed to
do?
Roles in an Appraisal System
Appraisee
Appraisee
Appraiser
Appraiser
Reviewer
Reviewer
HR
HR
An individual who
is assessed as part
of the performance
cycle
An individual who
assesses the
performance of
one or more
appraisee that
report into him/her
An individual who
is responsible for
reviewing the
entire performance
process and
typically is
appraisers
appraiser
HR to function only
as a facilitator in
the entire process
The key driver of
The key driver of
the process
the process
Helps manage
Helps manage
performance &
performance &
provides continuos
provides continuos
feedback and
feedback and
coaching
coaching
Will ensure
Will ensure
Objectivity,
Objectivity,
Transparency &
Transparency &
Consistency
Consistency
Will facilitate the
Will facilitate the
process
process
Objective of the Session
Objective of the Session
Introducing the New PMS System
Performance Planning
Performance Planning
Mid Year Review
Mid Year Review
Annual Appraisal
Annual Appraisal
Feedback and Coaching
Feedback and Coaching
Normalization & Rewards
Normalization & Rewards
Definition of Performance
PERFORMANCE at FastTrack
Performance will be defined by performance parameters, both quantitative and
qualitative:
Quantitative parameters are those that flow directly from the corporate ->
functional targets and are directly observable and measurable
Qualitative parameters are those that cannot be broken down into crisp
numbers. However, they need to be verifiable and supported with success
measures and would have clear measures of success e.g. quality
The Performance Management Cycle
Performance
Planning
April
MarchApril
Review and
feedback
Mid Year review &
feedback
October
Ongoing review and
feedback
Final Performance
Appraisal
March
The Proposed Appraisal System
Performance
Planning
Mid year
review
Annual
Appraisal
Review and
feedback
Rewards for
performance
April
October
March-April
March-April
April end
Annual
Annual
business
business
goals
goals will
will be
be
communicate
communicate
d
d and
and
individual
individual
performance
performance
plans
plans will
will be
be
drawn
drawn in
in
alignment
alignment
with
with the
the
same,
same, based
based
on
which
on which
performance
performance
would
would be
be
measured
measured at
at
the
end
of
the end of
the
the year
year
A
A check
check on
on
the
progress
the progress
towards
towards
meeting
meeting the
the
objectives
objectives set
set
during
during
performance
performance
planning
planning and
and
any
any course
course
correction
correction
required
required to
to
meet
the
meet the final
final
objectives
objectives
Joint
Joint
assessment
assessment
of
of
performance
performance
based
based on
on the
the
targets
targets set
set
during
during
performance
performance
planning
planning and
and
feedback
feedback
around
around the
the
same
same
Assessment
Assessment
of
of the
the validity
validity
of
ratings
of ratings in
in
line
line with
with the
the
achievement
achievement
of
of corporate
corporate
and
and function
function
results
results
Announcing
Announcing
the
the final
final
rating
rating of
of
each
each
individual
individual
and
and the
the
resulting
resulting
reward
reward by
by the
the
manager
manager with
with
a
a clear
clear
development
development
plan
plan for
for the
the
next
year
next year
Objective of the Session
Objective of the Session
Introducing the New PMS System
Performance Planning
Mid Year Review
Mid Year Review
Annual Appraisal
Annual Appraisal
Feedback and Coaching
Feedback and Coaching
Rewards
Rewards
Performance & Development Planning
Performance
Planning
Performance Parameters
Performance Parameters
[Quantitative/ Qualitative]
[Quantitative/ Qualitative]
Development
Planning
Competencies
Competencies
Other
Other
Development
Development
Areas
Areas
Will be used for assessment of
Performance
Will be used for Developmental
Purposes Only, and will thus, not form
a part of the final rating
Rating Scale
Rating Scale
1. Consistently Exceeds Expectation
1. Learner
2. Occasionally exceeds expectations
2. Development Area
3. Consistently meets expectations
3. Capable
4. Doesnot meet expectations on
most occasions
4. Role Model
Performance Planning - The Workflow
Period : April
Facilitate initiation, conduct and closure of the process and remove roadblocks, if any
HR
Communicate
annual
business
plans
Record
performance and
development
plan
Review and
finalize
performance &
development
plan
Reviewer
Appraiser
Appraisee
Initiate
Performance
Planning
Fill in
performance
parameters
Assign
weightag
es
Discuss with
Appraisee
Review
performance plan
and suggest
changes
Draw
actio
n
plans
Discuss with
Appraiser
Make
requisite
changes
Draw
actio
n
plans
Draw
develop
ment
plan
Cascade of Performance Measures
Cascade refers to the process of aligning organizational goals to individual goals in a series of steps
Organization Performance Measures
Financial
Customer
Process
Capability
Departmental Measures & Targets
Production
Maintenance
Sales & Marketing
Staff functions
Individual & Team Measures
Measures Targets
Measures Targets
Targets
Measures
1.
1.
2. 1.
2. 1.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.
Measures Targets
Measures Targets
Targets
Measures
1.
1.
2. 1.
2. 1.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.
Measures Targets
Measures Targets
Measures
Targets
1.
1.
1.
1.
2.
2.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.
Measures Targets
Measures Targets
Measures
Targets
1.
1.
1.
1.
2.
2.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.
What the individual needs to do
Key
KeySteps
Steps
Step 1
Step 2
Review organizations performance expectations
Review organizations performance expectations
and see your area of activity
and see your area of activity
(Your Role Description & Annual Business Goals)
(Your Role Description & Annual Business Goals)
Evaluate key behaviors and develop plan
Evaluate key behaviors and develop plan
for displaying key behaviors in your
for displaying key behaviors in your
own role for the coming year
own role for the coming year
Understand your own career aspirations and
Understand your own career aspirations and
understand needs of future role
understand needs of future role
Outcomes
Outcomes
Links individual role to performance
objectives of the organization; translates
required performance parameters of the
organization into individual actionable areas
Create development objectives for
individual growth and improvement.
Outlines growth requirements for future
roles
Filling the Form
The HOW of Filling the Forms
Performance Parameters: To be filled in by Appraisee in consultation and
agreement with Appraiser
Identify and Select KRAs along with your Appraiser
Set Targets and Action Plans for each KRA
Link Level of Achievement to Rating Scale
Weightages: Assign Weights for each Performance Parameter
Signing: Sign off at the relevant places on the form, once completed
The PMS Form: Performance Planning Section
Performance
Parameter Number
Weightage
assigned to this
Performance
Parameter
Brief Description of
the Performance
Parameter
Targets, anchored
to the 5 point
rating scale
Action Plan,
describing how
the target will be
achieved, the
resource
requirements etc.
Making Performance Parameters Focused
A SMART Performance Parameter describes and quantifies an outcome and
specifies accountability; the resulting objective should be:
Specific focused on a key outcome
Measurable either quantifiable or verifiable; so that its clear
whether or not the objective has been accomplished
Attainable within your control and limited enough that, with a
reasonable or stretch effort, it can be accomplished
Relevant important to your role and to the function or
department
Time-bound achievable within a certain time period
Defining Performance parameters
Not so
SMART
Design and Implementation of
Systems and Procedures
Performance
Parameters
Conduct recruitment to fill up
vacant positions
SMART
Performance
Parameters
Implement new Performance
Management System by x date
and conduct first performance
review exercise by y date of
2001
Maintain skill inventory and fill up
vacant positions through internal
promotion/external recruitment
within X days of the position being
vacant
Not SMART because...
SMART because.
Target Setting
Illustration
Performance Parameters
Target
Order Booking
Rs. 20 Crore
1
Does not meet
expectations
on most
occasions
2
Does not meet
expectations
sometimes
3
Consistently
meets
expectations
4
Occasionally
exceeds
expectations
5
Consistently
Exceeds
Expectations
15 Crore
18 Crore
20 Crore
22 Crore
25 Crore
i The required level of achievement for each point on the Five Point
Rating Scale must be defined
i Please note that the 20 Crore target would figure against Level 3
Developing an Action Plan
The Action Plan describes the specific steps, milestones and resources planned
by the Appraisee to accomplish the Performance Goal.
n
o
i
t
a
r
t
s Booking
lI luOrder
Performance Parameter
Target
Rs. 20 Crore
Action Plan:
i
i
i
i
Scan the market on an ongoing basis to identify opportunities
Analyze existing customer base to identify possibilities of repeat orders
Reduce cycle time to submit proposals/tender
Conduct analysis identifying reasons for loss of past orders and determine weather
loss was due to technical or commercial reasons
i Gather market intelligence on pricing strategy of competitors and keeps units
abreast of the same
i Have on-going discussions with units on bids being prepared so as to ensure that
optimal techno-commercial bid is prepared
Advantages of Action Planning:
i Clearly defines how the performance goal is to be achieved
i Helps in time and resource assessment
i Takes the blame away from the individual, for non-achievement due to extraneous
problems
Assigning Weightages
Weightages should be allocated keeping in mind the criticality of the
Performance Parameter and the effort required to accomplish the same.
n
o
i
t
a
r
t
lI lusOrder booked
KRA
Target
Weightage
Rs. 20 Crore
20%
70%
30%
4 days
10%
% of productive hrs lost due to strikes, labor unrest
2%
20%
% Reduction in withheld outstanding as per target
40%
20%
% of installed capacity utilized
Reduction of number of days of inventory
Total Weights of KRA Section should add to 100%
Filling the Form
DEVELOPMENT : Filling the Development Plan Section
This Section will focus on building individual capability using Competencies
Final Performance Ratings will not be based on this
Competencies will be defined for each Band in the Organization, along-with
Behavioural Descriptors
Developmental Competencies will be identified based on the extent of gap of
existing Competency Levels from desired level and the criticality of the
Competencies, to successful discharge of role responsibilities
Other Development Area section will incorporate those skills which the
incumbent might need to develop, but the same are not outlined in the
Competencies Section. This would include technical skills
The PMS Form: Development Planning - Identifying Competencies for
Development
Competencies
Applicable to the
Role
Proficiency Level
required for the
Role
Competencies
where Development
is required
Sample Development Plan
n
o
i
t
ra
t
s
Illu
Development Plan
Competency
Team Work
Attend technical seminars held in-house (minimum of 2 in
the year)
Read technical journals to keep abreast with the latest
developments in the filed
Take complete responsibility for 2-3 bids
Attend a beginners training course at NIIT / APTEC
Use computer for all correspondence
Job Knowledge
Computer
Literacy
e
l
a
c
S
g
n
i
t
Ra
1
Learner
Has not yet
demonstrated
the skill
Attend a training programme on team building
Work on two cross-functional teams
Mr. Deepak Mathur to play the role of mentor and provide
on-going support and inputs
Appraisee and appraiser to have monthly discussion on
progress
2
Developmental
Area
Sometimes
demonstrates
the behavioral
skill
3
Capable
Often
demonstrates
the behavioral
skill
4
Strength
Almost always
demonstrates
the behavioral
skill
5
Role Model
Encourages &
Influences
others for
display of skill
Useful Tips
Keep track of your performance
Prepare in advance
Make sure you are well versed with your role
description
Carry all relevant documents ( forms, role description
etc)
Ensure that you budget enough time for your
performance planning session
Objective of the Session
Introducing the New PMS System
Performance Planning
Mid Year Review
Annual Appraisal
Feedback and Coaching
Normalization & Rewards
Mid Year Review
Period : October - 1st Week
A course correction mechanism
To discuss current level of achievement of targets
Manager will help revise the goals, if required, communicate current level of and
expectations on future performance during the year
Share any difficulties being faced by you.
Advantage
Provides a forum for you & your manager to review & update the performance plan and
react to any changes in organizational priorities
Focus
Your continuous improvement and development
Ask your manager:
Whats the progress towards meeting each goal ?
- Whats going well ? Why ?
- Whats not going according to the plan ? Why ?
- Are adjustments needed in the performance ? or in the goal? If so, what?
Mid Year Review
Period : October - 1st Week
HR
Facilitate initiation, conduct and closure of the process and remove roadblocks, if any
Record
mid-year
review
Approve
plan
revision if
warranted
Reviewer
Appraiser
Appraisee
Provide
feedback on
performance
Conduct selfappraisal on
performance and
development
plan
Submit self
appraisal
to
Appraiser
Discuss areas of
improvement
and support
required
In case of extraneous
circumstances
Approve
plan revision
if warranted
Discuss and
make
necessary
changes
Request
revisiting
performance
plan
[parameters
and/or targets],
if required
Discuss and
make
necessary
changes
The PMS Form: Mid Year Review
Self
Appraisal
Only
Qualitativ
e
Feedback
- Does
not result
in rating
Appraiser
s
Feedback
and
Comment
s
Mid-Year Review provides a forum for discussion and helps document
formal, written feedback
Objective of the Session
Introducing the New PMS System
Performance Planning
Mid Year Review
Annual Appraisal
Feedback and Coaching
Normalization & Rewards
Annual Appraisal
Period : March-April
Objective
Joint discussion between appraisee and appraiser around progress achieved during the performance
period and discussion on areas of improvement and support required
Assessment of Appraisees level of achievement on performance parameters and demonstration of
Competencies as per the Development Plan
Assigning of Overall Performance Score by the Appraiser
Preparation for the Annual Appraisal
Do your homework
Provide specific instances
Be objective while doing your self assessment of your performance
Place emphasis on both quality of your efforts & measurable results
Discuss & document your additional achievements
Discuss and jointly develop solutions
Listen and be prepared to change your mind
Budget enough time for the review
Annual Appraisal
Period : March-April
HR
Facilitate initiation, conduct and closure of the process and remove roadblocks, if any
Record
final rating
Validate and finalize
score, resolving
discrepencies, if any
Reviewer
Appraise the
incumbent on
Performance
Parameters &
Competencies
Appraiser
Appraisee
Communicatefinal
rating to Appraiser
& Appraisee
Complete selfappraisal on
performance and
development
plan, giving
ratings
Submit self
appraisal
to
Appraiser
Provide feedback
on each area of
performance and
development
Determine overall
score based on
quantitative and
qualitative
performance
parameters
Calculation of Overall Score
Illu
n
o
i
t
stra
Performance
Parameter
Scoring
Weightage
Rating
PP 1
20%
0.6
PP 2
20%
0.8
PP 3
40%
1.6
PP 4
20%
0.8
Overall Score
Indv. PP Score
3.8
Computation
Overall Score
= PP Score X PP Section Weightage
((3 * .2) + (4 * .2) + (4 * .4) + (4 * .2))
3.8
Filling the Form
ANNUAL APPRAISAL: Filling the Annual Appraisal Section
This Section will focus on self assessment and capturing formal, written feedback
from the Manager and Reviewer
Results in rating
The incumbent assesses himself on his performance in the last 12 months
Formal, written feedback is provided by the manager
Areas of improvement are discussed
Overall score is discussed
If there are huge discrepancies in ratings given by the Appraisee and the
Appraiser, the Reviewer intervenes and assesses the individual on the
Performance Parameters
Once completed, relevant places on the form are signed
The PMS Form: Annual Appraisal
Performance
Parameters
Weightages
Appraisees
Ratings
Appraisers
Rating
Reviewers Rating Only in cases of
Disagreement
Overall score is the weighted average of the ratings given by the Assessor.
Reviewers ratings are taken as a part of the computation only in cases of
disagreement between the Appraiser and Appraisee
The PMS Form: Annual Appraisal
Self
Appraisal
Appraisal
by
Appraiser
Feedback
by
Reviewer
The System provides for giving formal, written qualitative feedback
Activity 2 - Assessment of Performance
Divide yourself in groups of 2
Respond to the situation you have got
Present your views
15 minutes
Objective of the Session
Introducing the New PMS System
Performance Planning
Mid Year Review
Annual Appraisal
Feedback and Coaching
Normalization & Rewards
A Continuum: Feedback and Coaching
Long-Term Impact on Performance
Coaching
Feedback
Exploring new
behaviors to
Evaluating the
extend or
impact and
enhance
Informatio
desired
performance
n
change of
behavior
A comment
about
behavior
Feedback & Coaching
Continuos Feedback and Coaching is an inherent and
critical part of the new Performance Management System
The Mid Year and
Final Reviews are
specifically focused
on Feedback and
Coaching
Require the
Appraisee and the
Appraiser to have a
formal feedback
session
Appraiser
ONGOING
FEEDBACK
Appraisee
Feedback can be of
various types:
Positive
Corrective,
Feedback for the
purpose of
sharing
information and
Feedback
focused on
identifying
obstacles to
performance
Why Feedback & Coaching?
Objective:
Improve employee performance and job
satisfaction through ongoing communication
between the manager and employee.
The benefits are mutually understood
expectations, clear priorities, improved work
methods and early recognition of positive or
negative trends
Your Responsibilities:
Initiate session
Ask for feedback on performance
Discuss difficulties that you are experiencing
Seek coaching for improved performance
Ask your manager periodically
to review you
Elements of Effective Feedback
Describe the
Behavior
Explain the Impact of what was done
well/not done well
Discuss how is should be done
Tomorrow
Reinforcing Positive Behavior
n
o
i
t
a
r
t
lI lus
Behavior
You went out of your way to get Anita to
focus on the technical problem
Impact
that helped us remove the production
obstacle and deliver on time...
Tomorrow
keep showing that type of initiative.
Working in teams means using
individual strength areas
Activity 3 - Giving Feedback
Divide yourself in 2 groups
Respond to the situation you have got
Present your views
10 minutes
Tips on Collecting Feedback
Collect feedback at least twice
Prior to mid-period review or year-end review
At other appropriate times depending upon project milestones,
key events, etc.
Focus feedback on:
Performance expectations (standard job activities)
Display of key behaviors
Keep it simple
Ask 2-3 questions
What is Coaching?
Engaging
Engaging
Setting a constructive tone and
Setting a constructive tone and
expectations for the discussion
for the discussion
expectations
Describing
Describing
Clarifying
Clarifying
Exploring
Exploring
Exchanging information and
Exchanging information and
generating ideas to reinforce/modify
generating ideas to reinforce/modify
behavior or solve a problem
or solve a problem
behavior
Asking
Asking
Suggesting
Suggesting
Committing
Committing
Remember!
Forging ownership through agreeing
Forging ownership through agreeing
on next steps and responsibilities
next steps and responsibilities
on
Summarizing
Summarizing
Action planning
Action planning
Ask for feedback
Listen with an open mind
Ask for additional information, explanation or clarification
Acknowledge the feedback
Use the feedback
Rewards for Performance
Period: April end
Process
Manager announces the rating to the appraisee with the rationale for the same
The final rating gives input to rewards
Capabilities/ competencies provide input around possible promotion avenues for
any employee along with the final rating
Outcome
Logical use of the performance feedback for various reward actions
Greater transparency in explaining the process of reward fixation to employees
Confidentiality of output to ensure unfair comparisons between various
incumbents
Role Changes
Role changes could be due to:
transfers
promotions
separations
change in allocated responsibility
This would require closing of the current Performance Plan and
creation of a new Performance Plan
Closing and Creating Performance Plans
Appraiser will assess the Appraisee for the
Performance Period that he/she was in the
role
A new Performance Plan will be created for
the remaining Performance Period
Final Score for the entire Performance
cycle
Appraisee will close existing Performance
Plan before transitioning to the new role
Performance Score will
be a time weighted
average of the Final
Scores for the
Performance Period
If an Appraisee has
occupied a role for a
period less than a
month, the same will
not be considered while
computing the Final
Scores
Key Role players
Roles and Responsibilities
