PERFORMANCE MANAGEMENT
SYSTEM
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
What is Performance Management?Performance management is a comprehensive, continuous and flexible approach
to the management of organizations, teams and individuals which involves the
maximum amount of dialogue between those concerned.
What is Performance Appraisal?Performance appraisal is a more limited approach which involves managers
making top-down assessments and rating the performance of their subordinates
at an annual performance appraisal meeting.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
A graphical view on the differences
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Objectives of PMSInvolving the supervisor and staff member in the process of reviewing responsibilities, achievements, strengths, and deficiencies.
Assisting staff with necessary information to improve overall performance by providing meaningful, well thought out feedback on performance.
Providing a framework for establishing and communicating future opportunities, responsibilities and performance expectations.
Providing a historical record of staff performance.
Coaching the staff member to enhance skills/knowledge.
Assisting the organization in achieving yearly goals.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Characteristics of Effective PMS process
A connection to organizational and departmental mission and
goals.
Clearly defined expectations of performance
A focus on performance as well as professional development
Ongoing process versus an annual event
Consistent and timely usage and completion
A focus more on future direction than past performance
Involves staff member in the process
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Benefits of effective PMS
Human Resource Planning
Recruitment and Selection
Training and Development
Career Planning and Development
Compensation Programs
Internal Employee Relations
Assessment of Employee Potential
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Why in CFAI for 2016?
To bring uniformity and standardization in the entire process
To eliminate biased approach
To launch effective and fair pay back policy
To strive towards attaining higher employee engagement and satisfaction
Controlled benefits administration as a whole
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
What’s New for 2016?All appraisers will have to submit only the discussion based feedback along with ratings
Extermination of manual forms
A modest and stress-free approach towards appraisal process
PMS initiation with process adherence and SLA for completion
Effective moderation process for justification with legitimacy
Documented approach
Better control mechanism to ensure right talent is been recognized
Filtering the bottom performers in order to enhance them by providing a fair chance to
perform through effective PIP process and close monitoring
No self appraisal for workmen/helper category
No self appraisal for few categories such as skilled/semi-skilled/unskilled
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Adherence
&
Schedule
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Adherence
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016Cont…
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines
&
Limitations
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 1:
‘STRICTLY’ no biased
approach in the complete
cycle.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 2:
Timeline deviations are not
supportive under any
circumstances.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 3:
Any other mode nor a different
method of submitting the
information apart from the
prescribed mode, will not be
appreciated or accepted.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 4:
Rating moderations are to be
discussed only between the
functional managers along with
heads and HR being a moderator.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 5:
Authenticated documentation is a
mandate for all top and bottom
rated performers.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 6:
Appraisers are expected to
communicate the rating with the
appraise and gain their acceptance
before submitting to HR.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 7:
All information shall remain
confidential between the
concerned stakeholders.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process Guidelines and Limitation
Code 8:
Performance evaluation should be
considered based on the
contributions made through out
the year.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Rating Scales, Definition and Weightage Distribution
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
All employee’s will be rated on a standard 5 point rating scale as
follows,
Rating Scale DefinitionForced Distribution Buckets(Bell Curve)
5 – Consistently Exceeding Expectations 5%
4 – Frequently Exceeding Expectations 10%
3 – Met Expectations 50%
2 – Partially Met Expectations 30%
1 – Did not meet Expectations 5%
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Rating DefinitionsRatings Measurement Metrics/Criteria
Consistently Exceeding
Expectations
Clearly and consistently exceeds performance expectations in an exemplary manner in the achievement of goals as well as the skills and knowledge required to perform all job responsibilities. Contributes significantly to the broader goals of the department by taking the initiative in organizing, prioritizing, and solving problems and makes appropriate decisions to reach a satisfactory outcome for goals.
Frequently Exceeding
Expectations
Frequently exceeds performance expectations in the achievement of goals as well as the skills and knowledge required to perform all job responsibilities. Contributes considerably to the broader goals of the department and demonstrates a strong commitment to the quality and effectiveness of achieving goals.
Met Expectations
Consistently and completely meets performance expectations in the achievement of goals as well as the skills and knowledge required to perform all job responsibilities. Contributes to the broader goals of the department and demonstrates a command of job responsibilities to execute own work and a commitment to quality in achieving goals.
Partially Met
Expectations
Does not consistently meet performance expectations in the achievement of goals and/or the skills and knowledge required to perform all job responsibilities. Some expectations may be achieved and others are not or only partially met. Does not satisfactorily or consistently contribute to the departments/function performance and not consistently reliable in handling own job responsibilities or in reaching desired results. Need to become more proficient in performing work to achieve goals.
Did not meet Expectations
Does not meet performance expectations in the achievement of goals, nor the skills and knowledge required to perform all job responsibilities. Does not effectively contribute to the function/ department performance and required significant manager involvement.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Score Categorization
Performance Score Ratings
90 – 100 5
70 – 89 4
60 – 69 3
50 – 59 2
00 – 49 1
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Normal Distribution MethodA function that represents the distribution of many random variables as a
symmetrical bell shaped graph.
Bell Curve
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Performance
Feedback&
Review
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
What is Feedback?
Conversations taking place throughout the year
between supervisors and employees pertaining
to any performance issues or appreciations.
Supervisors shall be responsible to address
work-related concerns and complaints, and the
employees have a responsibility to participate
in such communications.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
What is Review?
In addition to regular feedback, a more formal
annual performance review should be given to
all employees using Performance evaluation
forms. It is the supervisor's responsibility to
ensure that performance reviews take place
with all employees on a right time, place and
date.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Benefits of Giving Positive and Constructive Feedback?
Clarify expectations; assure the individual is on the right track
Assess and discuss the relevance of goals and their measures
Improve communication between individuals, particularly supervisor
and employee
Opportunity to learn about ourselves and how we interact with others
Opportunity to develop ourselves and be the best we can be
Assist in making “early corrections”
No surprises later
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Conducting a Performance Appraisal Meeting
A performance appraisal meeting is an opportunity to provide systematic feedback to an employee about the full range of the employee's responsibilities.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
The 15 Did’s
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
How to Conduct a
Performance
Evaluation Discussion
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
How to Conduct a Performance Evaluation Discussion
Rule 1:
Schedule the performance evaluation
review session several days in advance. A
specific location, which assures
privacy without interruption, should be
secured.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
How to Conduct a Performance Evaluation Discussion
Rule 2:
Complete the evaluation form considering
the staff member’s performance
during the review period.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
How to Conduct a Performance Evaluation Discussion
Rule 3:
Conduct the appraisal discussion:Explain the purposeEncourage response from the staff memberMutually review performance expectationsDiscuss their self assessment‐Discuss your ratings using specific examplesRecognize areas of achievement and identify opportunities for improvementReview previously established goals, allowing the staff member an opportunity to share his/her achievements.Explore career progress and determine developmental needsPlan performance goals for the next review period
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Structuring the
Review Discussion
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Structuring the Review SessionThe following sequence helps to provide clarity of purpose, commitment to change andagreed outcomes,
Establish the purpose, climate and direction of the
discussion
Gather a detailed picture of what happened
Register what went well
Identify and explore the problems
Identify and prioritize what need to be done the ‐agreed outcomes
Generate solutions
Summarize and agree actions
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Negative
Feedback
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
How to give negative feedback effectively
Get your emotions under control
Find a private place
Focus on their actions, not on the person
Be specific
Be timely
Be calm
Reaffirm your faith in the person
Stop talking
Define positive steps
Get over it
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
PIP (Performance Improvement Plan)
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
PIP (Performance Improvement Plan)
What is PIP: It is a mechanism built to provide a chance to bottom performers to demonstrate their
performance through intensive monitoring and periodical feedbacks. They need to be given all
required support such as counseling, training and mentoring to bounce back to normal track.
Who is eligible for PIP: Any employee irrespective of level, whose performance is degrading for a
period of continuous 3 months and does not meet the minimal expectations, despite repeated
feedbacks. No behavioral or attitude issues will be covered under this topic and cannot be a reason
for PIP initiation. (Ex: frequent absenteeism, late attendance etc.,)
Who can Initiate the PIP: The immediate supervisor nor the manager of the employee is authorized
to initiate the process with supporting documents).
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Process for PIP InitiationOnce the employee is found to be a bottom performer, the supervisor or the manager has to raise
the request with HR with all supporting documents.
HR shall validate the same and if found valid, a discussion between HR, Supervisor and the
Employee will take place to discuss the scenario and initiate the PIP.
PIP can be initiated for a minimum period of 2 months with an extendable duration of another 30
days.
Once the PIP been initiated, it is the duty of the supervisor or manager to assign specific tasks
during this period and provide all required support such as training, mentoring etc., and have a
close monitoring.
It is the duty of the supervisor or manager to provide periodical feedbacks (once a fortnight) on
the PIP progress, developmental requirements and documenting the same.
If the employee found non-progressive during the given period, the supervisor or manager will
give a fair chance to improve by initiating 2nd term PIP.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
If the employee found non-progressive at the end of 2nd term PIP initiation, a discussion will be
organized between the line manager, HOD and HR to take a call on the employment status.
The supervisor or the manager is requested not to disclose any information about the PIP
program of an employee nor shall not correlate during any future conversations with another
employee. All the information pertaining to an employee’s PIP shall remain with individuality
and confidentiality.
Unforeseen PIP Incidents
If an employee resigns or absconds from work post PIP initiation, it shall be considered as
termination and will be relieved from the services immediately.
If any abscond employee returns to work by themselves during this exercise, they shall not be
encouraged to continue the services, since the termination has been initiated.
If an employee continues to demonstrate same performance even after PIP initiation, the
supervisor or the manager can take a call to terminate the resource after completion of 2
fortnightly feedbacks and this shall be done in consultation with HR.
Cont…
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
Performance Appraisal
Eligibility Criteria
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
PMS Eligibility Criteria
(Performance year would be January to December every year)Any employee who joins on or before September 1st of the particular year, he/she shall be eligible
or considered to appraise in the current year PMS cycle.
Any employee who joins on or after September 1st of the particular year, he/she shall not be
eligible or considered to appraise in the current year PMS cycle.
Any employee who is eligible, but serving notice period due to resignation shall be entitled to
receive the increment, provided he/she is active on payroll as on Dec 31st of that particular year.
Any employee who absconds for a period of more than 2 months and returns to work post the
appraisal cycle period, he/she shall not be considered in the PMS cycle. However this will have an
impact on their ratings.
Any employee who has been in to long leave due to personal reasons or prolonged sickness, the
actual PMS calculation period shall be based on actual number of days the employee was available
to work, the increment will be calculated on pro-rata basis for the days present.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016Cont…
Other/Exceptional Scenarios
Where an employee has been put in to PIP during the appraisal time and if did not clear the PIP,
he/she shall be terminated and will not be included in the PMS cycle.
Where an employee has been put in to PIP during the appraisal time and has the cleared the
same, he/she shall be included in the PMS cycle and will be appraised suitably.
Where an employee is been booked under any sort of disciplinary proceedings, sexual
harassment or any other sort of such nature during the appraisal period and if the decision is to
‘Terminate’, he/she shall not be included in the PMS cycle.
Where an employee is been booked under any sort of disciplinary proceedings, sexual
harassment or any other sort of such nature during the appraisal period and if the decision remains
as a ‘Warning’, he/she shall be included in the PMS cycle.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016
A GLOSSARY OF PERFORMANCE MANAGEMENT TERMS Goals – Specific measurable results to be achieved by a staff member within a specified
timeframe.
Competencies – Job specific skills that are required to perform the job.
Tasks – Action steps taken to complete an assignment.
Coaching – Regular communication with a staff member to assist him/her with
improving overall performance or effectiveness.
Feedback – Positive or constructive communication about a staff member’s
performance.
Performance Improvement Plan – A documented time sensitive plan to assist the ‐individual with improving job performance.
Development plan/goals – Specific assignments given to a staff member to assist
him/her in enhancing or developing new skills.
PMS – PROCESS IMPLEMENTATION FOR PY’ 2016