The Performance Management System

A Presentation by, Karishma Kharat

WHAT IS PERFORMANCE MANAGEMENT

Process that performs. significantly determines how organization

Performance Management is a process for establishing a shared understanding about what is to be achieved and how it is to be achieved. An Approach to manage people which increases the probability of achieving success An ongoing communication process that involves both the performance manager and the employee.

Why Performance Management

Setting and Measuring Goals Providing Feedback Facilitating Promotion Decisions. Facilitating Layoff or Downsizing Decisions Encouraging Performance Improvement Motivating Superior Performance Counselling Poor Performers Determining Compensation Changes Encouraging Coaching and Mentoring. Supporting Manpower Planning Determining Individual Training and Development Needs Determining Organizational Training and Development Needs Providing Legal Defensibility for Personnel Decisions Validating Hiring Decisions. Improving Overall Organizational Performance Encourage and reward behaviors that are aligned with organizational mission and goals

PMS Cycle
Planning Performance
Establishing individual/team objectives Describing job expectations Describing competencies and planning improvements Describing tasks Training and development planning Agreeing performance standards

Managing Performance
Coaching Counselling Feedback Self monitoring Monitoring training & development activities

Rewarding Performance
Praise Promotion/Job enrichment Links to individual and/or team pay Prizes Special Awards Other forms of recognition

Reviewing Performance
Formal review of performance Performance measurement Formal team feedback sessions Individual self-review Peer group and upwards appraisal MBO & Balance Score Card

PMS Process
Appraiser Job Analysis

Objective of PMS
Measurement Parameters

Goal Setting

Appraisal

Feedback

Appraisee
Counseling & Mentoring

Trg, Devp, Prom, Rewards

Improved Performance

Performance Appraisal Process

Plan the Performance Identify Performance Goals Communicate Goals Establish Performance Criteria Determine: Responsibility for Appraisal ,Appraisal Period, Appraisal Method(s) , Computer Software

Anticipate and Consider Problems in PA Effective PA Systems

Examine Work Performed

Management Support Coaching and T&D

Appraise the Results

Normalization

Rewards & Recognition

PMS AT THERMAX
Performance Management system has strong linkage with employees development process and his/her annual rewards. Balance Score Card and MBO .

Individual Contribution Plan is based on

Clarification of expectations. Set priorities . Define the performance measurement . On going feedback and coaching to the employee.

The ICP also deals with employees areas of Development through a subsection called the Area of improvement.

Setting S.M.A.R.T. Goals

Specific Measurable Attainable/Agreed Upon Realistic/Relevant

Time-bound

Scale of Measurement

Exceeded Achieved Partially Achieved 8 Not Achieved

THE ICP CREATION (GOAL SETTING)

Time bound goals. 5 to 7 Goals. Each Goal has Weightage based on Importance & Impact. Routine , Repetitive, mere activity oriented items of work are not a part of ICP. The Sum of Weightages. An ICP becomes a valid ICP only after approval of the Immediate Superior .

MID-YEAR REVIEW
Evaluating

employees performance against the employees performance plan (ICP). goal and

Reflects both performance against demonstration of competencies.

Reviews done on the basis of collected data from regular performance monitoring. It means,
Self Assessment Manager Assessment

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ANNUAL APPRAISAL
The backbone of the performance appraisal process. Three motives
Review the performance in the year gone. Highlight the achievements . Find out what could have been done better.

The Appraisal Form

The four parts.

The Review meeting

If appraisee was offered self development opportunities. Development Action Plan for the next year. Career aspirations/Role Change.

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RATINGS & CATEGORIZATION

Categorization is done on the basis of :
Criticality of the employee Know how. Performance on the job. Consistency of Performance Growth Potential as depicted by ability to perform work at a higher level. Commitment

Ratings :
Ratings are from 1 to 10 Categorisation : C1, C2, C3, Z

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NORMALIZATION
Bell Curve Method

Need Improvement (10%) C3

Average (70%) C2

Superior (20%) C1

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REWARDS & RECOGNITION

STIP Promotions Salary Revisions

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Steps to Effective Performance Management

Developing Business Plans. Establishing aspects of performance that need to be measured. Setting up Systems to Monitor & Evaluate. Defining the General Performance Expectations of Employees. Agreements on Specific Performance Objectives. Developing an Internal Communications System. Ensuring that the performance Appraisal System is well understood & is working effectively. Supporting employees to help them perform well. Seeking Performance improvement. Recognizing & Rewarding good performance.

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LEARNING ON PMS
The Process. How Individual Contribution Plan is made. The Appraisal process: Self Appraisal. Review meetings. Normalization Process for ratings. DAP collation (Identifying training needs). Lining up interviews for Promotion. Follow up on ICP submission with the HOD. Uploading Goals (ICP) in the HRIS system.

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ADDITIONAL LEARNINGS AT THERMAX

The process of Training Evaluation
Identifying the employee who have not been evaluated post training. Getting the Training Evaluation form filled from the respective heads. Filing up the evaluations according to the trainings given for the audit. Analysis of the training needs identified last year and if the training have been given. Analysis of the nominations of the training

Professional Skill Mapping

Making the Skill Mapping template. Deriving the skills from the respective Job description.

HRIS
Uploading the ICP on HRIS. How is HRIS useful to HR.

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Behavioral Event Interview

What are competencies. Types of Interviews. BEI, the process.

Lining up Promotion Interviews (co ordinated in the administration process)

Maintaining the record of the batches. Properly filing the documents. Understanding of the documentation needed for promotion. Handling last minute changes.

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RECOMMENDATIONS
Training to appraisers & Reviewers on new developments and the processes. Constant mails to be sent till the ICP submission is done Self Appraisal section to be included separately. To improve the ICP submission process , after the training on HRIS is given, an evaluation test can be given. A one to one feedback should be given to the employees whose ratings have been revised after the normalization process. Development Action Plan, the training needs need to be in line with the training calender. The line managers & HODs can be given training on coaching & Mentoring.

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APPRAISAL A TIME TO EVOLVE

THANK YOU
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