pms presentation deck

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.


A graphical view on the differences


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.


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


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


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


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


Process Adherence

&

Schedule


Process Adherence

PMS – PROCESS IMPLEMENTATION FOR PY’ 2016Cont…


Process Guidelines

&

Limitations


Process Guidelines and Limitation

Code 1:

‘STRICTLY’ no biased

approach in the complete

cycle.



Code 2:

Timeline deviations are not

supportive under any

circumstances.



Code 3:

Any other mode nor a different

method of submitting the

information apart from the

prescribed mode, will not be

appreciated or accepted.



Code 4:

Rating moderations are to be

discussed only between the

functional managers along with

heads and HR being a moderator.



Code 5:

Authenticated documentation is a

mandate for all top and bottom

rated performers.



Code 6:

Appraisers are expected to

communicate the rating with the

appraise and gain their acceptance

before submitting to HR.



Code 7:

All information shall remain

confidential between the

concerned stakeholders.



Code 8:

Performance evaluation should be

considered based on the

contributions made through out

the year.


Rating Scales, Definition and Weightage Distribution


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%


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.


Score Categorization

Performance Score Ratings

90 – 100 5

70 – 89 4

60 – 69 3

50 – 59 2

00 – 49 1


Normal Distribution MethodA function that represents the distribution of many random variables as a

symmetrical bell shaped graph.

Bell Curve


Performance

Feedback&

Review


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.


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.


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


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.


The 15 Did’s


How to Conduct a

Performance

Evaluation Discussion


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.



Rule 2:

Complete the evaluation form considering

the staff member’s performance

during the review period.



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


Structuring the

Review Discussion


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


Negative

Feedback


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


PIP (Performance Improvement Plan)


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).


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.


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…


Performance Appraisal

Eligibility Criteria


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.


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.

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