PERFORMANCE APPRAISAL PROCEDURE & SALARY REVIEW POLICY

Department: Human Resources Department Section: Operations & C&B Prepared by: Department Head: Doc. No.: Total pages: 03/2007 03

Approved by:

Le Minh Kha Date: April 23, 2007 Revision No.: Revised by: Date:

Francis Papillon Date: April 24, 2007 Reason:

Francis Papillon Date: April 24, 2007 Approved by: Date:

A. PERFORMANCE APPRAISAL PROCEDURE

1. PURPOSE: For better performance management To be more objective when evaluate staff / managers for salary review or promotion To have a clear direction, aligned with the Companys objectives

2.

SCOPE: Managers (office, retail) and all office staff.

3.

DEFINITIONS: HRD: Human Resources Director HOD: Head of Department Appraisee: the employee who is appraised Appraiser: the person (Director or Manager) who appraise the employee.

4.

ANNUAL TIMING: The Objectives are set for 1 Calendar Year and to be reviewed every 6 months
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Any appraisal takes place within the year should aim to set objectives from the appraisal time till end of December that year.

5.

SCHEDULING: PART A: Self-Appraisal (1 week) PART B: Appraisal by Manager / HOD (2 weeks) Director / HODs comments (1 week) PART C: Appraiser meet Appraisee, Discuss and Agree (1 week) Submit the signed Performance Appraisal Form(s) to HR Department HR Dept. works with HOD on Action Plan, Training & Career Development (1 month)

6.

DISTRIBUTION LIST: Board of Director Heads of Department Managers (office, retail) Office staff

7.

RESPONSIBILITY: HODs are responsible for appraising and setting objectives for their Managers & subordinates Managers are responsible for appraising and setting objectives for their subordinates HR Department is responsible for providing guidelines, monitoring the process, and working with HOD in the Action Plan(s) following the appraisal.

8.

PROCEDURE: 1. Each employee will complete their section of the form (Section A) and send to their Manager/Supervisor. 2. Managers will complete their section of the form (Section B) send to their respective Director before meeting the apppraisee (subordinate). This is where the director will review the appraisal and give his comments to the manager/supervisor concerning each staff. The manager will consider that before meeting the appraisee /subordinate. 3. Managers meet each staff to inform and discuss about the results of the evaluation and send copy(ies) completed and signed to HR dept. 4. HR department will work with each department concerning action plan & career development plan for each staff

9.

FORMS: HR-F-38_VTI Performance Appraisal Form_2007

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B. SALARY REVIEW POLICY

1.

ANNUAL REVIEW: Employees are entitled to salary review every 12 months since date joining the company or since the last review. Exceptional cases must require the HRDs and/or CEOs approval.

2.

APPRAISAL OUTCOMES: Performance Exceeds Standards : Performance Meets Standards Fails To Meet Standards : : Score of 90% and up Score of 70% to 89% Score less than 70%

As for the Score Card, no one (except HR and Directors) will know the weight of each performance factors. This is to avoid managers to try to give to their staffs a better score. After Managers send to HR the forms completed, HR will process them and send the results (score card) to each Director / HOD. Director/HOD will have the responsibility to make sure that the Manager will communicate the results to the employee.

3.

SALARY INCREASE FRAME & ACTION PLAN:

The percentage of salary increase for the following year will be determined in accordance with the results of Performance Appraisal of the current year. Outstanding Performance Good Performance Meet Performance Standard Below Performance Standard :16% to 20% salary increase :11% to 15% salary increase :8% to 10% salary increase :0% increase

Action Plan in case of Below Performance Standard: a. 1st Written Warning Letter and put in place a Performance Improvement Plan that will be revised after 3 months. i. If meet standard of the plan 10% increase (as of the day of the revision not retroactive to the initial review date). ii. If does not meet standard: process to (b.) b. 2nd Written Warning Letter and revision after 3 months i. If meet standard after second time, get 5% increase as of day of revision. ii. If does not meet standard: process to (c.) c. Dismissal Human Resources Department
April 2007
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