Annexure-I

Guidelines for New Performance Management System

1. Introduction to New Performance Management System
Objectives
To realign the Organizational/Departmental objectives with individual objectives
Thrust on Performance Driven Culture
To evaluate potential of the appraises\e to assure higher responsibilities, ex-cadre
posts
To identify the high performance for rewards
Compliance of DPE instructions (OM dated 26.11.08 and 28.05.09)
o Developing robust and transparent KPA based Performance Management
System with Bell-Curve approach
o Performance Appraisals to be consultative & transparent. The appraisal to be
shared with the appraisee [28.05.2009]
Applicability
KPA based Performance Appraisal System is applicable to all executives of AAI (E1E7)
Executives who join AAI on deputation or those retaining lien while in service of AAI are
also covered by this scheme
Executives who join in the middle of the Key Performance Area based Performance
Management System cycle (see next section), but have served for a minimum period of
three months
2. KPA based Performance Appraisal System Cycle
2.1

Performance Assessment year

Performance assessment year has been set up for the grades E1 to E7 as follows:The performance assessment year commence from 1st April of each year and continues until
31st March for the following year.
2.1.1

KPA based Performance Appraisal System Calendar (2010 2011)

No

Activity/Steps

Timeline

Issue of KPA based Performance Appraisal

System form
Performance Planning

Up to 30th July
2010
1st Aug 31th Aug
2010

HR Department

Executive
Reporting Officer

10th Sep 2010

Reporting Officer

Submission of KPA based Performance

Appraisal System form after Performance
Planning to HR
Issue of PMS form for Mid Year Review

HR Department

Mid Year Performance Review

Submission of KPA based Performance

Appraisal System Form after Mid-year
Review to HR
Issue of KPA based Performance Appraisal
System form for Annual Assessment

20th Nov 30th

Nov 2010
1st Dec 15th Dec
2010
21st Dec 2010

Executive
Reporting Officer
Reporting Officer

HR Department

Guidelines

15th May 31st

May 2011

Key Responsibility

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2.2

Annual Assessment

1st June 25th

June 2011

Submission of completed KPA based

Performance Appraisal System form to HR

30th June 2011

10

Normalization of KPA based Performance

Appraisal System

1st July 25th July

2011

11

Performance Communication and

Feedback to Executive

31st July 2011

Executive
Reporting Officer
Reviewing Officer
Reviewing Officer

Performance
Management
Committee
HR to coordinate
Reporting Officer
(Administrative
support from HR
department)

KPA based Performance Appraisal System Process

The KPA based Performance Appraisal System process is broadly divided into the following
stages:

2.2.1

Performance Planning
Mid Year Review
Annual Assessment
Normalization
Feedback, Coaching and Counseling

Performance Planning

Performance Planning is the process of:

Defining expectations i.e. the work to be done, the results/targets to be achieved and
skills/competencies needed to achieve these objectives
Setting Measures and Targets, determining priorities and weightages of results to be
achieved
Identifying and allocating appropriate resources (such as manpower, tools, training,
budget etc.) to enable the executive to achieve the targets

While defining work objectives and measures, it is necessary to ensure that:

Goals/Targets/Objectives are SMART (Specific, Measurable, Agreed,
Realistic and Time bound)
Results are substantially within the executives control
Measures relate to results
Data is available for measurement
Agreement on mutually agreeable and achievable performance targets is
arrived at
after sufficient discussion between reporting officer and executive has taken place.

2.2.2

Mid Year Review

Performance management is not an event but an ongoing process. Mid year reviews help in
the following ways:

Guidelines

Reinforcing good performance in time

Updating the status of targets i.e. progress review
Identifying areas for mid-course correction
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2.2.3

Revisiting KPAs and goals, if necessary

Assessing resource and skill requirements affecting the individuals performance.
Discussion and feedback on functional competencies, managerial
competencies,
potential competencies and core values actualization
Providing early warnings of non-performance , i.e. avoiding year end surprises
Annual Assessment

The objectives of Annual Assessment are to:

Discuss and arrive at an assessment of performance with respect to agreed targets

Assess the competencies, potential and core values actualization by the individual
Agree upon improvement plans and development needs for the individual.

2.2.4
Normalization
The objectives of the Normalization System in Key Performance Area based Performance
Appraisal System are to:

Ensure parity and integrity by minimizing variation in rating by different reporting

officers across various departments and locations.
Enhance objectivity and transparency in the appraisal system
To view individual performance from the perspective of organizational achievement.

2.2.5
Feedback and Counseling
In order to make Key Performance Area based Performance Appraisal System an open
system and to enhance development orientation across the organization; feedback and
counseling are essential components. Communicating the final performance results of the
executive and providing developmental feedback are critical to this process.
2.2.5.1
Feedback
Providing feedback on performance presents the following benefits:

Creates transparency making Key Performance Area based Performance Appraisal

System more acceptable to individuals
Reinforces good performance on time
Enables development of coaching and mentoring relationship between reporting officer
and executive
Ensure that organizational objectives are achieved to an acceptable standard and in an
acceptable form

Providing performance feedback is a delicate matter and the reporting officer should create
suitable conditions for providing performance feedback in the most effective manner (Refer
to appendix for tips to reporting officers on conducting effective appraisal meetings.) In
general:
Feedback should be focused on the specific performance actions and not on the
personality of the executive
Feedback should be generated after reviewing all achievements and issues throughout
the assessment period and not focused on isolated incidents.
Feedback calls for maintaining a log of critical incidents occurring during the assessment
period for recording both achievements and failures with details, as an aid to memory
during performance discussions with the executive.
Feedback to be given as regularly as possible so that enough opportunities are created
for executive to bridge performance gaps through self-development.

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2.2.5.2
Counseling
Counseling in the KPA based Performance Appraisal System context essentially is a
process by which executives can receive assistance in sorting out issues related to current
and future responsibilities and aspirations. Therefore, reporting officers are required to
encourage individuals to plan for their own self development. The process of counseling is
through:

Recognition and understanding of existing strengths

Empowering i.e. enabling the individual to recognize their own problems and
expressing the same.
Facilitating action through guidance and expertise, i.e. facilitating the process
whereby the individual evaluates alternatives and formulates action plans to achieve
the most suitable course of action.
Helping individuals to take ownership of the outcomes of their chosen action.

Coaching and counseling together act as a feedback mechanism for the individual on
his/her performance. It is often used by reviewer/reporting officer to communicate the
areas for development and improvement to the executive.
3.

KPA based Performance Appraisal System Linkage with Other HR systems

Performance Management has much wider implications than purely improving individual
performance in the given year. KPA based Performance Appraisal System provides the basis for
achieving a number of fundamental aims of HR Strategy for the organization as mentioned below:3.1

Linkage with Training and Development system

4.

KPA based Performance Appraisal System lays strong emphasis on continuous

learning and development. The two-way communication between reporting officer
and executive creates an environment of trust and self learning
KPA based Performance Appraisal System is the basis for the organization to
maintain data on an individuals skill gaps, take necessary action to meet the
training needs, use it for foreign training/assignments and company sponsorship of
long-term educational programs etc.
KPA based Performance Appraisal System would also provide the means to
determine the collective level of competencies and strengths available within the
organization as well as gaps for planning for organizational development initiatives.
Learning and development initiatives fundamentally rest with the individual with the
organization facilitating the same through creating a learning environment and
providing suitable opportunities etc. The executive would be responsible for making
use of the same to the maximum extent possible.

The KPA based Performance Appraisal System Form

The KPA based Performance Appraisal System form is divided into seven parts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Guidelines

Performance Planning and Assessment

Mid Year Review
Performance Planning and Assessment
Managerial Competencies Assessment
Core Values
Potential Appraisal
Special Achievement
Individual Training and Development Plan
Total Marks
Alteration of KPAs during Mid-Year Review

- Part I
- Part - II
- Part - III
- Part - IV
- Part - V
- Part VI
- Part - VII
- Part VIII
- Part IX
- Part - X
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4.1 Performance Planning

(Refer to Parts I and II of KPA based Performance Appraisal System form)
Performance Planning is to be done through a process of discussion between the executive and
the reporting officer to arrive at the performance targets for the Key Performance Areas.
(i) In the beginning of the assessment year, the concerned HR department shall circulate the
relevant KPA based Performance Appraisal System forms to the reporting officers for
Performance Planning with the respective executives.
(ii) The reporting officer will then send the KPA based Performance Appraisal System form to
each executive reporting to him with a covering letter inviting him to participate in the
performance planning process indicating time and venue and requesting the executive to
complete the relevant sections of the form prior to the meeting. See annexure for format of
invitation letter.
4.1.1

Identifying KPAs

1. The table entitled Key Performance Areas (KPA): Planning (Part I) is a summary of the
detailed KPAs to be filled up by the executive after discussion with reporting officer in the
subsequent pages of the KPA based Performance Appraisal System form.
2. At the beginning of the year, relevant KPAs are identified using the KPA Directory
(which has to be prepared by individual departments), as a reference tool. KPAs
may be enhanced or modified depending upon the individual after discussions with the
reporting officer.
3. The KPAs should be cascaded in an open and transparent manner with each reporting
officer sharing his/her KPAs and targets with all the executives reporting to him/her.
4. The KPAs thus identified are written down in the column provided for KPA Planning in
the table in Part I.
5. Total marks to be allocated to each item in the KPA index is agreed between the
reporting officer and the executive and assigned accordingly.
6. The marks provided in the KPA Directory are indicative only and may be modified in
consultation with the reporting officer.
7. The column for Marks Obtained is filled up only at the end of the assessment year.
4.1.2

Identifying KPA constituents and measures

1. Once the KPAs are identified, their constituents, measures and targets are also identified
from the KPA Directory. These are agreed upon between the reporting officer and the
executive at the beginning of the assessment year.
2. The details of KPA should be provided as an attachment in a separate sheet for detailing
the constituents of the KPA Planning agreed upon.
3. Total Marks to be allocated to each of the KPA constituents are agreed between the
reporting officer and the executive. These are filled against the relevant KPA
constituent. The sum of the marks provided to the KPA constituents should be equal to
the total marks allocated to the KPA Index.
4. The constituents, measures and marks provided in the KPA Directory are guidelines and
may be modified by the reporting officer in consultation with the executive (the changes
may be aligned as per business/functional plans, focus areas, priorities of the
management, unit/department level goals etc.).
5. At the beginning of the year, the reporting officer and the executive sign off the agreed
KPA targets in the space provided in Part I of the KPA based Performance Appraisal
System form.
6. After the targets are agreed, the relevant column in the table is filled.

Guidelines

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7. At this time, the reporting officer and the executive discuss in detail the identification and
allocation of the various resources required by the executive (manpower, budget, tools,
training etc.) to achieve the targets.
8. The column for Marks Obtained are filled at the end of Assessment Year.
4.1.3

Identifying Managerial Competencies (Part IV of form)

1. Managerial Competencies are those that are essential for the business to achieve its
strategy and typically involve behavioral descriptors.
2. A set of managerial competencies is provided in Part IV of the KPA based Performance
Appraisal System form.
3. Descriptions of each competency as applicable to a particular level are available in the
annexure to this policy document.
4. Seven competencies are to be assessed of which four have been identified as
mandatory for that level.
5. The reporting officer and the executive need to identify three additional managerial
competencies, which are department specific (to be provided by individual department).
These competencies are to be chosen based on the responsibilities and demands of the
executive current job.
6. The optional competencies should be directly and significantly related to the executives
areas of responsibilities.
7. The total managerial competencies on which the executive will be assessed would thus
be seven.
8. The reporting officer and executive sign off on the managerial competencies in the
space provided in Part IV of the KPA based Performance Appraisal System form at the
beginning of the year.
4.2

Mid Year Review

(Refer to Part II of the KPA based Performance Appraisal System Form)
1. The concerned HR department shall resubmit the KPA based Performance Appraisal
System forms to the reporting officers for Mid-Year Review with the respective
executives.
2. The reporting officer will send the KPA based Performance Appraisal System form to
each executive reporting to him with a covering letter inviting him to participate in the
Mid Year review indicating time and venue and requesting the executive to complete
the relevant sections of the form prior to the meeting.
3. The reporting officer and executive jointly review the performance in the mid Year
Review as per the schedule mentioned in the KPA based Performance Appraisal
System Calendar.
4.2.1

Mid Year Assessment

1. The executive completes the self evaluation section where he/she highlights
achievements to date. Further, he/she indicates roadblocks and issues faced as well
as efforts made by him/her to overcome them including help/assistance obtained from
the reporting officer.
2. The reporting officer records progress and performance in the space provided for
Comments of Reporting Officer. The comments should include feedback on KPA
Progress, functional competencies, managerial competencies, potential competencies
and core values actualization.
3. Both the reporting officer and executive set aside some time to discuss the
achievements and issues highlighted by the executive. The Mid-year Review is an
important opportunity for the reporting officer to provide feedback on the performance
to date.

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4. The reporting officer and executive sign off Part II of the KPA based Performance
Appraisal System Form as an agreement to the amendments and comments in the Mid
Year Review.

4.2.2

Alternation of KPAs during Mid-Year Review

1. Part X of the KPA based Performance Appraisal System form is to be used only if
changes need to be made to the KPAs, measures, weightages, marks or targets. In
such a case, all the KPAs need to be refilled.
2. The reasons for change need to be cited at the end of the section.
3. The KPAs may be changed under the following circumstances:
a) There is a significant change in the roles and responsibilities of the executive
b) There are changes in the strategic business objectives of AAI that directly impact
the KPA or the specific KPA loses relevance, as in the following cases: Un-anticipated projects
Abandonment of projects as per corporate directives
Situations completely out of the control of the executive such as
accidents, terrorism and other emergency situations.
4. It is strongly advised not to be lenient in changing KPA targets, marks or weightages
and to strictly follow the guidelines before making such changes during the Mid-year
Review
5. After consultation with the Reviewing Officer regarding the need and rationale for midyear alteration, the changes to the KPAs would be signed off by the reporting officer
and the executive in the space provided in the KPA based Performance Appraisal
System form.
4.2.3

Submission of KPA based Performance Appraisal System forms after MidYear Review

1. After completion of Mid-year Review, the completed KPA based Performance Appraisal
System forms shall be submitted to the concerned HR by the reporting officer within the
deadlines set in the calendar.
4.3

Annual Assessment

4.3.1

1.
2.

The concerned HR shall trigger the process of completion of annual assessment through
resubmission of KPA based Performance Appraisal System forms to all reporting officers.
The reporting officer will send the KPA based Performance Appraisal System form to each
executive reporting to him with a covering letter inviting him to participate in the Annual
Assessment indicating time and venue and requesting the executive to complete the
relevant sections of the form prior to the meeting. See Annexure for format of invitation
letter.

4.3.2
1.

2.

Re-submission of KPA based Performance Appraisal System forms for Annual

Assessment

Guidelines for annual Assessment of KPAs

The annual assessment starts with the KPA Planning table in Part I. If the KPA targets
have been revised during the mid-year-review, then the final review for KPA starts with
Details of KPA table in Part X.
The Actual Target achieved by the executive against the KPA constituent is written by the
executive in the column Actual Target Achieved.

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3.

4.

The marks obtained under each KPA constituent add up to the total score for a KPA Index.
These scores are written down in the summary table under the head Key Performance
Areas (KPA) Annual Assessment by the reporting officer.
The total marks for this section are calculated as per the formula provided in the KPA
based Performance Appraisal System form.

4.3.3
Guidelines for Assessment of Managerial Competencies
(Refer to Part IV of KPA based Performance Appraisal System form)
I. The reporting officer shall discuss each of the mandatory and the optional (as selected at
the beginning of the year) managerial competencies with the executive and assign the
rating on the form.
II. The competencies are to be evaluated on a ten-point scale as indicated in the KPA based
Performance Appraisal System form by referring to the detailed behavioral descriptors for
each managerial competency.
III. The aggregate marks are arrived at by adding all marks scored for the seven managerial
competencies.
IV. The reporting officer and executive sign off Part IV of the KPA based Performance
Appraisal System Form as an agreement on the assessment (rating) of the Managerial
Competencies for the executive.
4.3.4
Guidelines for Assessment of Core Values
(Refer to Part V of KPA based Performance Appraisal System form)
Adoption of the companys Core Values in business dealings is an essential duty of executives
at all levels.
1. All executives have a major role in the actualization of Core Values by being Role Models
in observing and practicing them and thereby leading by example.
2. Value actualization is assessed by observing the demonstrated behavior of the executive in
day-to-day business dealings.
3. Core Values assessment is to be done at the end of the year on a ten-point scale as
indicated in the KPA based Performance Appraisal System form.
4. At the year-end, the reporting officer shall discuss each of the value descriptions with the
executive and indicate the rating on the KPA based Performance Appraisal System form.
5. The aggregate marks are arrived at by adding all marks scored for different core values.
6. The total marks obtained for the section is calculated by using the formula provided.
7. The reporting officer and executive sign off Part V of the KPA based Performance Appraisal
System Form as an agreement on the assessment on Core Values of the executive.

4.3.5
Guidelines for Assessment of Potential
(Refer to Part VI of KPA based Performance Appraisal System form)
1. Potential appraisal helps in understanding the extent to which the executive is
demonstrating competencies of higher levels.
2. Evaluating these competencies will help in appreciating the preparedness/suitability of the
executive for higher responsibilities along the hierarchy.
3. The prescribed potential competencies for a particular level are printed in the KPA based
Performance Appraisal System form for the particular level.
4. The desired behavioral descriptors for each potential competency are provided in the
annexure to this policy document.
5. The competencies are evaluated annually on a 3-point scale as indicated in the KPA based
Performance Appraisal System form during the year-end assessment.
6. The reporting officer shall discuss each of the competencies with the executive and plot the
rating on the form.
7. The aggregate marks are arrived at by adding all marks scored for different competencies.

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8. At the end of the assessment year, the reporting officer and executive sign off Part IV of the
KPA based Performance Appraisal System Form as an agreement on the assessment on
the potential appraisal of the executive.

4.3.6
Guidelines for Completing the Special Achievements Section
1. Special Achievements appraisal helps in understanding the extent to which the executive is
contributing in terms of special accomplishments that adds value to the organization.
2. Evaluating these competencies will help in appreciating the executives contribution for
individual/group accomplishments.
3. There are no prescribed titles in the KPA based Performance Appraisal System form for
Special Achievements Section. The executive can mention his/his teams area of
achievement and describe in contribution in that achievement.
4.3.7
Summary of Scores
(Refer to Part IX of KPA based Performance Appraisal System form)
1. At the end of the assessment year after completing each of the parts of the KPA based
Performance Appraisal System form, the reporting officer summarizes the total of each part
of KPA based Performance Appraisal System form in the column Marks Obtained in Part
IX (Section A) of the form.
2. The Total Marks is the sum of marks obtained in each section of the KPA based
Performance Appraisal System form.
3. The KPA based Performance Appraisal System form duly signed by the executive and the
reporting officer is then submitted to the Reviewing Officer for discussion, comments and
approval.
4. The Reviewing Officer shall go through the performance of the executive in totality as finally
brought out by the Reporting Officer indicating details of marks obtained under each
section: Performance, Competencies, Core Values and Potential, before offering
comments, if any.
5. If Reviewing officer feels the necessity of reviewing the appraisal of the executive, then
there should be a detailed discussion with the reporting officer on each of the components
of the KPA based Performance Appraisal System form.
6. After arriving at a fair decision and accounting for the views of reporting officer, the
Reviewing Officer may offer comments and rationale for changing the scores in the relevant
column under Part IX (Section B) of the form.
7. After discussion and mutual consent, the reporting officer and Reviewing Officer will duly
sign the KPA based Performance Appraisal System form.
8. The completed KPA based Performance Appraisal System form of the executive is sent to
the HR department who will convene the Performance Management Committee for
normalization.
4.3.8
Guidelines for Completing Individual Training and Development Plan
(Refer to Part VIII of KPA based Performance Appraisal System form)
KPA based Performance Appraisal System provides the opportunity to capture the
developmental needs of the executive in the Individuals Development Plan. The ratings in the
functional and managerial competencies provide the basis for identifying the training and
development needs of the executive.
1. The development needs identified should be such that they facilitate the executive in
immediate performance.
2. The reporting officer should identify specific competency gaps based on competency
assessment and potential assessment (Parts IV and VI, respectively) and suggest
developmental initiative/training and time frame for the same.

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3. At the end of the assessment year, the reporting officer and executive sign off Part VIII of
the KPA based Performance Appraisal System Form as an agreement on the Individual
Development Plans for the executive for the next period.
4. After receipt of completed KPA based Performance Appraisal System forms, the
concerned HR would be instructed at the appropriate time to arrange all the Part VIII forms
and send the Competent Authority/Institution(s)
5. The concerned HRD/EDC/PMI would use these forms as an input for them to develop the
training calendars and design appropriate training Programmes for the following year.
5.

Roles and Responsibilities

5.1 Role of Executive:

The executive shall fill out appropriate portions of the form, attend the KPA based
Performance Appraisal System meetings at all stages (performance planning, mid-year
review and annual assessment) and be prepared to have an open and frank discussion
about his/her performance.
The KPA based Performance Appraisal System aims at creating amity and convergence of
individual and organizational goals and it should be taken in that spirit.
The executive is required to show the necessary flexibility and adaptability to the
organizational needs and display system discipline through adherence to all KPA based
Performance Appraisal System requirements.

5.2 Role of Reporting Officer

The reporting officer shall cascade the KPAs based on MOU targets to the executives
reporting to him in a fair and achievable manner.
The reporting officer should set up performance planning, mid-year review and annual
assessment meetings with all the executives reporting to him within the specified periods as
per the KPA based Performance Appraisal System calendar.
The reporting officer shall maintain a brief log of all critical incidents occurring within his
scope for work as an aid to memory while completing the mid year review, annual
assessment and giving feedback to the executive.
The reporting officer shall carry out the KPA based Performance Appraisal System scoring
of all executives reporting to him in an objective manner and such that the scores are
distributed in a manner requiring minimum adjustment and/or normalization by either the
reviewing officer or the Performance Management Committee.
In the event of change of KPAs, measures, targets etc., the reporting officer is required to
obtain clearance from Reviewing Officer prior to making the change.
5.3 Role of Reviewing Officer
The reviewing officer shall go through KPA based Performance Appraisal System forms for
all executives under his purview and ensure that the reporting officer has been objective
and unbiased in his scoring of various executives, particularly with respect to the sections
relating to Competencies, Values and Potential
Where required, the reviewing officer may recommend some changes to the scores after
carrying out a detailed discussion with the respective reporting officer.
The reviewing officer shall also carry out an integrity check to ensure that the scores
awarded to all the executives under his/her purview are distributed in a manner requiring
minimum normalization by the Performance Management Committee.
Where an executive has a grievance against the reporting officer regarding the KPA based
Performance Appraisal System process, the reviewing officer shall intervene and settle the
grievance in a fair and objective manner.
The Reviewing Officer shall cascade the KPAs in an open and transparent manner with
each reporting officer by sharing his KPAs and targets.

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5.4 Role of Nodal Officer

A Nodal Officer would be designated for each location (station/region/corporate)
The Nodal Officer would be responsible for implementing KPA based Performance
Appraisal System as well as for periodic administration, follow-up, tracking and analysis of
KPA based Performance Appraisal System activities as per schedule in his/her respective
location.
To ensure collection, collation and forwarding the Individual Development Needs forms to
the concerned EDC/Regional HRD/PMI
6
Normalization Process
The Normalization Process would result in all executives placed within a cluster would be
categorized as follows:

Top
Middle
Bottom

15% of the cluster

75% of the cluster
10% of the cluster

Further details of the Normalization process would be communicated at the appropriate time.
7.

Communication and Feedback of Scores

1. After the process of normalization of the scores is completed, the Performance
Management Committee hands over all the KPA based Performance Appraisal System
forms to the respective HR Department.
2. HR then consolidates final scores, relative rankings and the feedback from the
Performance Management Committee for all executives.
3. HR prepares a summary sheet of scores, relative ranking and feedback from Performance
Management Committee for the executives under each reporting officer along with the
individual feedback forms, duly filled (see Annexure for format) and sends the same to the
reporting Officers.
4. The concerned reporting officer signs off the individual feedback forms as per the summary
sheet provided by HR and hands over the same to the executives in order to communicate
the final scores relative ranking and the feedback.

8.

Administration of KPA based Performance Appraisal System

1. Executive Directors / General Managers / Sectional Head will facilitate implementation of
KPA based Performance Appraisal System by monitoring progress removing any difficulties
or roadblocks and ensuring completion of assessment and submission to HR as per the
dates provided in the KPA based Performance Appraisal System calendar for their
respective Units/Departments/Regions.
2. The concerned business unit head/functional head should cascade his KPAs to the
executives reporting to him based on MOU targets for that year with suitable targets to
ensure organizational excellence. This process may be finalized in an SMC meeting.
Departmental group heads meetings as the case may be, which is to be held in the second
half of March of each assessment year.
3. The primary responsibility for filling up the KPA based Performance Appraisal System form
and setting the process in motion rests jointly with the reporting officer and the executive as
per the time frame provided.
4. Any difficulty or difference that may rise between the reporting officer and the executive in
the process of implementation of the system would be sorted out the through the
intervention of the Reviewing Officer. If the executive is still not satisfied with the decision
of the reviewing officer, especially in the case of annual assessment and/or the final score
awarded by the PMC, then the concerned executive may place his case before the next
higher authority above the PMC.

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5. If any executive does not participate in the KPA based Performance Appraisal System
process (setting up KPAs, attending mid-year review or annual assessment meetings, filling
relevant sections of the form etc. on time) despite being given ample opportunity to do so,
the reporting officer has the authority to complete the form in the absence of the executive
and forward the same to the Reviewing Officer indicating the non-participation of the
executive. The Reviewing Officer may offer an opportunity to the executive to be heard.
Having verified that indeed the executive has voluntarily decided not to participate in the
process despite being given sufficient opportunity, the Reviewing Officer forwards the form
to HR, duly completed and with his approval of the process followed under the
circumstances.
6. In the event of the creation of a new role or department, the concerned HR department will
develop KPAs and functional Competencies for that particular role/department in
consultation with the respective head of department. Also, if for an existing role, new
competencies/KPAs are required to be added, the concerned HR department would
compile the same in consultation with the respective head of department. Such new roles
or competencies defined should be validated with Corporate HRD.
7. The key role for HR department in the KPA based Performance Appraisal System
administration is to :
Issue KPA based Performance Appraisal System forms as per the KPA based
Performance Appraisal System calendar
Collect forms as per schedule
Monitor adherence to dates
Highlight non-compliance/exceptions to top management
Send copy of individual training and development plan to concerned HRD/EDC/PMI
Convene Performance Management Committee meetings
Consolidate feedback, final scores and relative ranking of all executives
Prepare Final Score Feedback Form for each executive and provide to respective
reporting officers.
8. The responsibility across various levels and locations for KPA based Performance
Appraisal System administration lies with the KPA based Performance Appraisal System
Officers, so designated at each Station, Region and Corporate.
9. Convening responsibility of the Performance Management Committees would be provided
at the appropriate time.
8.1

Transfers
8.1.1

Guidelines

Executive and/or reporting officer transferred during assessment

Year:
a. If the executive or the reporting officer has spent less than 3 months of the
assessment year prior to transfer from the department, then no assessment needs
to be carried out for the executive for that period by that reporting officer.
Fresh KPAs will have to be issued by the new reporting officer in the new
department/location and these will form the basis of the executives annual
assessment for that year, which will be done solely by the new reporting officer.
The total score for normalization will be provided by the new KPA based
Performance Appraisal System form only and the normalization cluster would be
based on the executives new position.
b. If the executive or the reporting officer has spent more than 3 months of the
assessment year prior to transfer from the department, then an assessment must be
carried out for the executive duly signed off by the reporting or the relevant period
followed by a review of the same by the Reviewing Officer.

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Fresh KPAs will have to be issued by the new reporting officer and the executives
annual assessment for that year will comprise both the old as well as the new KPA
based Performance Appraisal System forms, duly signed off by the respective
reporting officers.
The total score for normalization will be provided by both the KPA based
Performance Appraisal System forms proportionate to the amount of time spent in
each department. The normalization cluster would be based on the executives new
position.
8.1.2

Executive promoted during the year :

a. Executives promoted during the assessment year would be issued new KPA based
Performance Appraisal System forms, if promotion is accompanied by change in
role-band or change of job responsibility or transfer.
b. If an executive is promoted within the same role band and continues to remain in
the same department under the same reporting officer with substantially the same
responsibilities and KPAs, then the existing KPA based Performance Appraisal
System format will continue to be used. At the end of the year, he is assessed on
the same KPAs and the total score for normalization purpose is also derived from it.
The executive will be normalized in the cluster applicable after promotion. If some
responsibilities are added as a result of promotion, the same can be incorporated in
the KPA based Performance Appraisal System format during the Mid-Year Review.
c. If an executive promoted along with a change in role band, then a fresh KPA based
Performance Appraisal System form will have to be filled appropriate to the role
band and fresh KPAs will need to be agreed upon.
Furthermore, the executive will be normalized in a cluster as per his new grade and
function
The total score for the year would be calculated using the same 3 months minimum
service principle as in point 8.1.1 above.

The respective HR department have to ensure that KPA based Performance Appraisal System
forms are filled and signed off if an executive has served for a minimum period of 3 months
either in the location or under a particular reporting officer or within a role band. The release
order for the executive/reporting officer will be issued subject to the fulfillment of this.
Thereafter, HR needs to coordinate with the other HR department where the executive has
been transferred to communicate the proportionate weightage of total score to be used for
calculating the final score.
9.

Audit of KPA based Performance Appraisal System

To achieve the objectives of the KPA based Performance Appraisal System, an audit procedure
has been put in place to ensure that all users follow KPA based Performance Appraisal System
guidelines consistently. Further information on the KPA based Performance Appraisal System
audit process would be made available at the appropriate time.

10.

General

The powers to modify, cancel, add or amend any of the provisions of the KPA based
Performance Appraisal System policy at any time rests with the Chairman of AAI.

Guidelines

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11.

APPENDICES

11.1 Useful Guidelines for carrying out KPA based Performance Appraisal System
The following checklist must be used to ensure completion of all KPA based Performance
Appraisal System activities:
Performance Planning
9 KPAs and constituents
to be identified and
written in the KPA based
Performance Appraisal
System form
9 Source: KPA Directory
9 Three levels of Targets
to be set
9 Functional/Technical
competencies
to
be
identified and written
9 Source:
Competency
Directory
9 Optional
Managerial
Competencies
to
be
identified and ticked in
the
KPA
based
Performance Appraisal
System form
9 Sign off by the executive
and reporting officer

Mid-Year Review
Annual Assessment
9 Performance progress to 9 Marks to be given for
target achieved against
be
discussed
(KPAs,
KPAs.
Competencies, Potential
9 Summary of KPA marks
and Core values)
to be filled in dashboard.
9 Self evaluation to be
to
be
discussed
and 9 Competencies
rated.
documented
9 Document changes in 9 Core values to be rated
9 Potential to be rated
KPAs if necessary
9 Comments of reporting 9 Summary of scores
Officer to be documented 9 Discuss and fill training
and development plan
9 Sign off by the executive
9 Sign of by the executive
and reporting officer
and reporting officer

11.2 Tips for Reporting Officer to conduct Assessment Meeting

There are eight simple steps that a reporting officer must follow in order to conduct an effective
assessment meeting.
1.
2.

3.

4.
5.

Guidelines

Control the atmosphere: Be prepared, create trust and understanding by putting the
executive at ease. Avoid interruptions while the executive is communicating.
State the purpose of the discussion: Discuss the advantages of the discussion
including:
a. Assessment of progress towards goals
b. Identification of ways to improve performance
c. Identification of current or potential problems
d. Improvement in communication
Ask for the executives opinion: Ask executive to discuss what/he/she has written in
self-appraisal. Ask clarifying questions, if needed. Listen carefully and attentively.
Keep an open mind. Control your emotions or defensive reactions.
Present your assessment: Speak in detail, giving factual information. Be open, candid
and specific, giving both good news and bad news.
Build on executives strengths: This will lay the groundwork for a positive approach for
future performance. Specifically:
a) Ask the executive to name his/her strengths
b) Share your opinion of the executives strengths
c) Recap the strengths you have discussed and relate them to specific future
goals.
d) Focus on performance and not the person.
e) Be aware of not focusing too much on recent events; take the entire years
performance into consideration.
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5.

6.

7.

11.3
i.
ii.
iii.
iv.
v.
vi.
11.4

Ask for executives reaction to your assessment:

Be prepared for executives
disagreement on your assessment. He/she may also feel unhappy or emotionally
upset. Stay open and do not react in a defensive manner. Resist the temptation to
gloss over serious issues.
Discuss specific goals: Set specific future goals for performance as well as training
and development needs. Discuss career progression at this stage and the steps to be
taken to achieve the same.
Close the discussion:
Plan for a good ending. Summarize the discussion and
discuss the scheduled next steps.
Tips on providing feedback
Provide feedback on actual events
Describe, Dont judge
Refer to specific behavior
Select issues and restrict to those
Focus on aspect of performance that the individual can improve upon.
Provide positive feedback
Tips for implementing KPA based Performance Appraisal System

The most objectively designed performance management system in the world can fail if it is not
implemented with care and caution. By following the simple tips mentioned below KPA based
Performance Appraisal System can be implemented successfully.
What to do

Ensure frequent communication

Guidelines

Steps
Ensure
frequent
two-way
communication
between
reporting
officers and executives
Take active steps to remove obstacles
limiting executive performance.
Create
an
atmosphere
where
executives are encouraged to ask
question and clarifications.
Ensure that executives perceptions of
performance match
the reporting
officers
Mutually agreed upon goals
Share and communicate goals received
from top management for your
unit/department
Involve executives in goal-setting
Document them so that there is a
common understanding of what is
expected
Evaluate your own performance
Take time to evaluate
your own
first
performance first
Get feedback from others (peers and
superiors) to see how well you are
creating an achieving atmosphere for
your executives.

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Document performance between

appraisal meetings

Prepare yourself and the executive

for the discussion

Conduct the meeting successfully

Ask for executives opinion

Be open, candid and specific

Close the
discussion
professional manner

in

Guidelines

Document
examples
of
superior
performance or attitude
Document failures to achieve and poor
behavior
Avoid effect o the most recent event
(halo effect or horn effect)
Set a date, time and place after
consulting with executive
Ensure that executive is aware of the
purpose of the meeting.
Show the same professional courtesy
that is awarded to any business
associate
Give the executive the opportunity to
ask clarifying questions prior to and
during the meeting.
Control the environment and do not
allow interruptions
Put the executive at ease
Plan your opening remarks
State the purpose of the discussion and
the information being used (e.g.
statement
of
goals,
written
documentation, peer feedback etc.)
Ensure that executive does most of the
talking
Ask open ended questions that start
with Tell me how, why do you think,
and so on that provide an executive to
open up and talk at greater length.
Present
your assessment openly,
clearly and rationally
Be prepared to present the facts and
rationale if challenged
Give both good and bad news
Discuss executive accomplishments
Focus on performance, not personality

Summarize the discussion

Ask for executives impression on how
the meeting went
Thank the executive
Explain the follow-up steps

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12.

ANNEXURES

12.1

Distribution of Marks

S.
No.
1
2
3
4
5
12.2

KPA based Performance Appraisal System Parameter

E-1 E-7

KPA
Managerial Competency Assessment
Core Value Assessment
Potential Assessment
Special Achievement
TOTAL

60
15
10
10
5
100

Rating Scale for Assessment of competencies

Level
Competency

and Distribution
of
Rating
Scores
Needs Development
Is able to demonstrate the competency on some 1 to 2
occasions on the job. Displays some of the behaviors
as indicated for the managerial competency. There are
specific areas of development of which training
interventions are required.
Meets Expectations
Is able to demonstrate the competency effectively on 3 to 5
almost all occasions on the job with minimum
supervision and training intervention.
Displays all
behaviors as indicated for the managerial competency.
Is prepared to develop higher levels of the competency.
Moderately
above Is able to demonstrate the competency at a significantly 6 to 8
expectations
higher level than tat required to carry out the assigned
job on several occasions and though not an expert in
the competency, has the potential to be one and can be
developed with minimum.
Significantly Exceeds Besides demonstrating the competency effectively 9 to 10
Expectations
required for the specific level is viewed as an internal
expert in this competency. Peers seek his opinion
across the unit/company in his domain. Uses current
expertise/behavioral capability to provide coaching,
guidance and transferring knowledge to subordinates
and peers by conducting training programs. Represents
the organizations capability to external agencies.
12.3

of Description
for
assessing
Managerial Competencies

Functional

Rating scale for Potential Assessment

Level of Competency

Distribution of
Rating Scores
Needs Coaching and Is a learner and has not yet demonstrated the 1 to 3
Development
behavior/skill required for the competency as per
description and requires a high degree of coaching
and guidance to do so.
Somewhat
Demonstrates some of the behaviors of the relevant 4 to 7
Demonstrates
competency as per description with minimal coaching
Competency
and guidance.
Always Demonstrates Repeatedly and characteristically demonstrates all 8 to 10
Competency
behaviors of relevant competency as per description
without much coaching and guidance and is a role
model for others.

Guidelines

Description

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PerformanceandCompetenceAssessmentForm
LevelE1toE7
PeriodofAssessment
DateFrom

DateTo

Executive
Name

EmployeeNumber

Designation

DateofBirth

Level

Department

Section

DateofJoiningcurrent
Department/location

Dateof
ExistingGrade

Qualification

RatingsHeld
(ForATM&CNS)

ReportingOfficer
Name

EmployeeNumber

Designation

Location/Unit

Level

ReviewingOfficer
Name

EmployeeNumber

Designation

Location/Unit

Level

Dateand SignatureofReportingOfficer&Executive

Event

Date(Tobefilledby
ReportingOfficer)

SignatureOfExecutive

SignatureofReporting
Officer

KPASetting&
Competency
Identification

MidYearReview

Annual
Assessment

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EmployeeNumber

PartI:PerformancePlanningandAssessment
MaximumMarks:60
KeyPerformanceAreas(KPA):Planning
Tobefilledatthebeginningoftheyear
S.No.

KPA

MaximumMarks

TotalScore

100

SignatureofExecutive

SignatureofReportingOfficer

Date:

Date:

SignatureofReviewingOfficer
Date:

ConstituentofKPAsshouldbegiveninseparatesheetandshouldbeattachedtoform

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EmployeeNumber

PartII:MidYearReview
MidYearSelfAssessmentbyExecutive
S.No.

KPA

Achievement

RoadBlock/Management
SupportRequired

OtherAchievement

AssessmentbyreportingOfficer
S.No.

KPA

CommentsonAchievement

PlanforremovalofRoadBlock
/ManagementSupport

CommentsonOther
Achievement

SignatureofExecutive

SignatureofReportingOfficer

Date:

Date:

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Annexure-II

EmployeeNumber

PartIII:PerformancePlanningandAssessment
MaximumMarks:60
KeyPerformanceAreas(KPA)AnnualAssessment
Tobefilledattheendoftheyear
S.No.

KPA

MaximumMarks

MarksObtained

100

TotalScore

KPA
Marks

TotalScorex60
100

SignatureofExecutive

SignatureofReportingOfficer

Date:

Date:

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EmployeeNumber

PartIV:ManagerialCompetenciesAssessment
MaximumMarks:15
S.No.

ManagerialCompetencies

Ratings
(tobeevaluatedonthe
scaleof1to10)

Leadership:Demonstratesabilityforguidingcollectivedecisionmakingfor
successionplanning,crisesmanagementandabilitytotakerisk.
BusinessAttitude:Commitmenttobottomlineresultsbyaddressinginterest
ofcustomersandstakeholders.
Communication:Communicateideas&informationeffectivelyandabilityto
convertideasthroughactionplan.
CostConsciousness:Worksontheprincipalofmaximumoutputfrom
minimuminputwithleastamountofwaste.

2
3
4

TotalScoreoutof70

Note:Threecompetenciesarebasedondisciplineoftheexecutiveandtobechosenfromdisciplinebased
managerialcompetencybank.

Attheendoftheyear

Marks

TotalScorex15
70

SignatureofExecutive

SignatureofReportingOfficer

Date:

Date:

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Annexure-II

EmployeeNumber

PartV:CoreValues
MaximumMarks:10
Tobefilledattheendoftheyear
S.No.

CoreValues

BusinessEthics:Exhibitsahighlevelofmorality&fairnessinallhisactions;is
transparentinhisdealings;complieswithguidelines.
CustomerFocus:Hasconvictionthatthecustomeristhecentreofallthe
activity.
OrganizationalPride&ProfessionalPride:Holdshiscompanyandprofession
inhighesteem&takesprideinbelongingtoit.
MutualRespect&Trust:Hashighregard&faithinthefelloworganizational
members;believesincollaboration&openness&hasgoodteamspirit.
Innovation&Speed:Thinkingnew&ahead&beingswiftwithout
compromisingonquality;iscreative&innovative&hasthewillingnessto
experiment.
TotalQualityManagement:Believesinpursuingexcellenceinallspheresof
activity;makecontinuouseffortsinimprovingstandardsofperformance,
systemsandprocesses.
Candour:Frank&forthright;Give&receiveconstructivecriticism/suggestion;
appreciategoodperformance.
TotalScoreoutof70

2
3
4
5

Ratings
(tobeevaluatedonthe
scaleof1to10)

Marks

TotalScorex10
70

SignatureofReportingOfficer

Date:

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EmployeeNumber

PartVI:PotentialAppraisal
MaximumMarks:10
Tobefilledattheendoftheyear
S.No.

PotentialCompetencies

ChangeManagement:Understandwheretheorganizationisatthemoment,
Planwheretheorganizationshouldbe,Involveandagreesupportfromthe
peoplewithinthesystem.
Networking&RelationshipManagement:Buildarelationshipamong
employeessothattheyfeelclosetoeachother,communicatewitheachother,
feelsympathetic&responsivetoeachotherandfeelempathywitheachother.
Coaching&Counselling:Helpingsubordinatestogrowanddevelopinsynergy
withtheorganizationalgoals.
Vision&StrategicThinking:Formulatestheorganisationsvisionandshows
commitmenttoit.Promotesthevisioninaninspiringway,bothinternallyand
externally.Identifiesstrategicissues,opportunitiesandrisks,andeffectively
integratesthemintoorganisationalobjectives.
TotalScoreoutof40

3
4

Ratings
(tobeevaluatedonthe
scaleof1to10)

Marks

TotalScorex10
40

Integrity
NothingAdverse

Yes/No

Questionable

Yes/No
(ifyesgivebrief
detailsinadjacent
cell)

SignatureofReportingOfficer

Date:

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EmployeeNumber

PartVII:SpecialAchievement
Tobefilledattheendoftheyear

MaximumMarks:5

Tobefilledbyexecutiveinconsultationwithreportingofficer

Individual&TeamAchievements&Contributions
AreaOfAchievement

DescriptionofContribution

Commentsofreportingofficer

Ratings(tobe
evaluatedonthescale
of1to10)

Marks

TotalScorex5
10

SignatureofExecutive

SignatureofReportingOfficer

Date:

Date:

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PartVIII:IndividualTraining&DevelopmentPlan
(Tobeseparated&forwardedtoTrainingCell)
Name

EmployeeNumber

Designation

Department

Level

Section

(TobefilledbyTrainingCell)
TrainingAreaIdentifiedLastYear

TrainingGivenLastYear

Reasonsfornotprovidingthe
training

CurrentTrainingNeeds
TrainingArea
FunctionalOrTechnical

TrainingNeeds

ManagerialorBehavioural

AnyOtherarea

SignatureofReportingOfficer

Date:

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PartIX:TotalMarks
SectionA:ToBeFilledbyReportingOfficerattheendoftheyear
Part
PartIII

Components
KeyPerformanceArea

MaximumMarks
60

MarksObtained

PartIV

ManagerialCompetencies

15

PartV

CoreValues

10

PartVI

Potential

10

PartVII

SpecialAchievement

TotalMarks

SignatureofReportingOfficer:
Date:

Name:

Designation:

SectionB:TobefilledbyReviewingOfficerafterdiscussionwithreportingofficer
MarksAwarded PartIII

PartIV

PartV

PartVI

PartVII

Total

RationalFor

Changeof
marks
(Mandatory)

Signatureofreportingofficer:

Name:

SignatureofReviewingOfficer:
Designation:
Date:
SectionC:TobefilledbyCountersigningofficerafterdiscussionwithreviewingofficer
MarksAwarded PartIII

PartIV

PartV

PartVI

RationalFor

Changeof
marks
(Mandatory)

Signatureofreviewingofficer:

SignatureofCountersigningOfficer:
Date:

PartVII

Total

Name:

Designation:

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