Streamlining Performance

Management

FastTrack Communications
March 2015

Agenda

Introduction to the Session- The Background

Introducing the Performance Management System
Introducing the Performance Management System
Performance Planning
Performance Planning
Mid Year Review
Mid Year Review
Annual Appraisal
Annual Appraisal
Feedback and Coaching
Feedback and Coaching
Rewards
Rewards

Appraisal System Drivers

Common
Understanding
of
priorities and objectives
Performance
Planning

Rewards

Commitment

Clear
Expectations

You

based on
meaningful
work and rewards
Performance
Review

for individual
and group
contributions
Coaching and
Feedback

Capability

built through
feedback and learning

Key Roles - Whats everyone

upto?
Activity 1

Whats everyone up to?

MY
MANAGER

REVIEWER

ME

HR

What are these

key roles
supposed to
do?

Roles in an Appraisal System

Appraisee
Appraisee

Appraiser
Appraiser

Reviewer
Reviewer

HR
HR

An individual who
is assessed as part
of the performance
cycle

An individual who
assesses the
performance of
one or more
appraisee that
report into him/her

An individual who
is responsible for
reviewing the
entire performance
process and
typically is
appraisers
appraiser

HR to function only
as a facilitator in
the entire process

The key driver of

The key driver of
the process
the process

Helps manage
Helps manage
performance &
performance &
provides continuos
provides continuos
feedback and
feedback and
coaching
coaching

Will ensure
Will ensure
Objectivity,
Objectivity,
Transparency &
Transparency &
Consistency
Consistency

Will facilitate the

Will facilitate the
process
process

Objective of the Session

Objective of the Session

Introducing the New PMS System

Performance Planning
Performance Planning
Mid Year Review
Mid Year Review
Annual Appraisal
Annual Appraisal
Feedback and Coaching
Feedback and Coaching
Normalization & Rewards
Normalization & Rewards

Definition of Performance

PERFORMANCE at FastTrack
Performance will be defined by performance parameters, both quantitative and
qualitative:
Quantitative parameters are those that flow directly from the corporate ->
functional targets and are directly observable and measurable
Qualitative parameters are those that cannot be broken down into crisp
numbers. However, they need to be verifiable and supported with success
measures and would have clear measures of success e.g. quality

The Performance Management Cycle

Performance
Planning
April
MarchApril

Review and
feedback

Mid Year review &

feedback
October

Ongoing review and

feedback

Final Performance
Appraisal
March

The Proposed Appraisal System

Performance
Planning

Mid year
review

Annual
Appraisal

Review and
feedback

Rewards for
performance

April

October

March-April

March-April

April end

Annual
Annual
business
business
goals
goals will
will be
be
communicate
communicate
d
d and
and
individual
individual
performance
performance
plans
plans will
will be
be
drawn
drawn in
in
alignment
alignment
with
with the
the
same,
same, based
based
on
which
on which
performance
performance
would
would be
be
measured
measured at
at
the
end
of
the end of
the
the year
year

A
A check
check on
on
the
progress
the progress
towards
towards
meeting
meeting the
the
objectives
objectives set
set
during
during
performance
performance
planning
planning and
and
any
any course
course
correction
correction
required
required to
to
meet
the
meet the final
final
objectives
objectives

Joint
Joint
assessment
assessment
of
of
performance
performance
based
based on
on the
the
targets
targets set
set
during
during
performance
performance
planning
planning and
and
feedback
feedback
around
around the
the
same
same

Assessment
Assessment
of
of the
the validity
validity
of
ratings
of ratings in
in
line
line with
with the
the
achievement
achievement
of
of corporate
corporate
and
and function
function
results
results

Announcing
Announcing
the
the final
final
rating
rating of
of
each
each
individual
individual
and
and the
the
resulting
resulting
reward
reward by
by the
the
manager
manager with
with
a
a clear
clear
development
development
plan
plan for
for the
the
next
year
next year

Objective of the Session

Objective of the Session

Introducing the New PMS System

Performance Planning
Mid Year Review
Mid Year Review
Annual Appraisal
Annual Appraisal
Feedback and Coaching
Feedback and Coaching
Rewards
Rewards

Performance & Development Planning

Performance
Planning

Performance Parameters
Performance Parameters
[Quantitative/ Qualitative]
[Quantitative/ Qualitative]

Development
Planning

Competencies
Competencies

Other
Other
Development
Development
Areas
Areas

Will be used for assessment of

Performance

Will be used for Developmental

Purposes Only, and will thus, not form
a part of the final rating

Rating Scale

Rating Scale

1. Consistently Exceeds Expectation

1. Learner

2. Occasionally exceeds expectations

2. Development Area

3. Consistently meets expectations

3. Capable

4. Doesnot meet expectations on

most occasions

4. Role Model

Performance Planning - The Workflow

Period : April
Facilitate initiation, conduct and closure of the process and remove roadblocks, if any
HR

Communicate
annual
business
plans

Record
performance and
development
plan
Review and
finalize
performance &
development
plan

Reviewer

Appraiser

Appraisee

Initiate
Performance
Planning

Fill in
performance
parameters

Assign
weightag
es

Discuss with
Appraisee

Review
performance plan
and suggest
changes

Draw
actio
n
plans

Discuss with
Appraiser

Make
requisite
changes

Draw
actio
n
plans

Draw
develop
ment
plan

Cascade of Performance Measures

Cascade refers to the process of aligning organizational goals to individual goals in a series of steps
Organization Performance Measures
Financial

Customer

Process

Capability

Departmental Measures & Targets

Production

Maintenance

Sales & Marketing

Staff functions

Individual & Team Measures

Measures Targets
Measures Targets
Targets
Measures
1.
1.
2. 1.
2. 1.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.

Measures Targets
Measures Targets
Targets
Measures
1.
1.
2. 1.
2. 1.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.

Measures Targets
Measures Targets
Measures
Targets
1.
1.
1.
1.
2.
2.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.

Measures Targets
Measures Targets
Measures
Targets
1.
1.
1.
1.
2.
2.
3. 2. 1.
3. 2. 1.
4. 3. 2.
4. 3. 2.
4. 3.
4. 3.
4.
4.

What the individual needs to do

Key
KeySteps
Steps
Step 1

Step 2

Review organizations performance expectations

Review organizations performance expectations
and see your area of activity
and see your area of activity
(Your Role Description & Annual Business Goals)
(Your Role Description & Annual Business Goals)

Evaluate key behaviors and develop plan

Evaluate key behaviors and develop plan
for displaying key behaviors in your
for displaying key behaviors in your
own role for the coming year
own role for the coming year
Understand your own career aspirations and
Understand your own career aspirations and
understand needs of future role
understand needs of future role

Outcomes
Outcomes
Links individual role to performance
objectives of the organization; translates
required performance parameters of the
organization into individual actionable areas

Create development objectives for

individual growth and improvement.
Outlines growth requirements for future
roles

Filling the Form

The HOW of Filling the Forms

Performance Parameters: To be filled in by Appraisee in consultation and
agreement with Appraiser
Identify and Select KRAs along with your Appraiser
Set Targets and Action Plans for each KRA
Link Level of Achievement to Rating Scale
Weightages: Assign Weights for each Performance Parameter
Signing: Sign off at the relevant places on the form, once completed

The PMS Form: Performance Planning Section

Performance
Parameter Number
Weightage
assigned to this
Performance
Parameter
Brief Description of
the Performance
Parameter

Targets, anchored
to the 5 point
rating scale

Action Plan,
describing how
the target will be
achieved, the
resource
requirements etc.

Making Performance Parameters Focused

A SMART Performance Parameter describes and quantifies an outcome and

specifies accountability; the resulting objective should be:

Specific focused on a key outcome

Measurable either quantifiable or verifiable; so that its clear
whether or not the objective has been accomplished

Attainable within your control and limited enough that, with a

reasonable or stretch effort, it can be accomplished

Relevant important to your role and to the function or

department

Time-bound achievable within a certain time period

Defining Performance parameters

Not so
SMART

Design and Implementation of

Systems and Procedures

Performance
Parameters

Conduct recruitment to fill up

vacant positions

SMART
Performance
Parameters

Implement new Performance

Management System by x date
and conduct first performance
review exercise by y date of
2001
Maintain skill inventory and fill up
vacant positions through internal
promotion/external recruitment
within X days of the position being
vacant

Not SMART because...

SMART because.

Target Setting

Illustration
Performance Parameters

Target

Order Booking

Rs. 20 Crore

1
Does not meet
expectations
on most
occasions

2
Does not meet
expectations
sometimes

3
Consistently
meets
expectations

4
Occasionally
exceeds
expectations

5
Consistently
Exceeds
Expectations

15 Crore

18 Crore

20 Crore

22 Crore

25 Crore

i The required level of achievement for each point on the Five Point
Rating Scale must be defined
i Please note that the 20 Crore target would figure against Level 3

Developing an Action Plan

The Action Plan describes the specific steps, milestones and resources planned
by the Appraisee to accomplish the Performance Goal.

n
o
i
t
a
r
t
s Booking
lI luOrder

Performance Parameter

Target
Rs. 20 Crore

Action Plan:
i
i
i
i

Scan the market on an ongoing basis to identify opportunities

Analyze existing customer base to identify possibilities of repeat orders
Reduce cycle time to submit proposals/tender
Conduct analysis identifying reasons for loss of past orders and determine weather
loss was due to technical or commercial reasons
i Gather market intelligence on pricing strategy of competitors and keeps units
abreast of the same
i Have on-going discussions with units on bids being prepared so as to ensure that
optimal techno-commercial bid is prepared

Advantages of Action Planning:

i Clearly defines how the performance goal is to be achieved
i Helps in time and resource assessment
i Takes the blame away from the individual, for non-achievement due to extraneous
problems

Assigning Weightages
Weightages should be allocated keeping in mind the criticality of the
Performance Parameter and the effort required to accomplish the same.

n
o
i
t
a
r
t
lI lusOrder booked

KRA

Target

Weightage

Rs. 20 Crore

20%

70%

30%

4 days

10%

% of productive hrs lost due to strikes, labor unrest

2%

20%

% Reduction in withheld outstanding as per target

40%

20%

% of installed capacity utilized

Reduction of number of days of inventory

Total Weights of KRA Section should add to 100%

Filling the Form

DEVELOPMENT : Filling the Development Plan Section

This Section will focus on building individual capability using Competencies
Final Performance Ratings will not be based on this
Competencies will be defined for each Band in the Organization, along-with
Behavioural Descriptors
Developmental Competencies will be identified based on the extent of gap of
existing Competency Levels from desired level and the criticality of the
Competencies, to successful discharge of role responsibilities
Other Development Area section will incorporate those skills which the
incumbent might need to develop, but the same are not outlined in the
Competencies Section. This would include technical skills

The PMS Form: Development Planning - Identifying Competencies for

Development

Competencies
Applicable to the
Role

Proficiency Level
required for the
Role

Competencies
where Development
is required

Sample Development Plan

n
o
i
t
ra
t
s
Illu

Development Plan

Competency

Team Work

Attend technical seminars held in-house (minimum of 2 in

the year)
Read technical journals to keep abreast with the latest
developments in the filed
Take complete responsibility for 2-3 bids

Attend a beginners training course at NIIT / APTEC

Use computer for all correspondence

Job Knowledge

Computer
Literacy

e
l
a
c
S
g
n
i
t
Ra

1
Learner
Has not yet
demonstrated
the skill

Attend a training programme on team building

Work on two cross-functional teams
Mr. Deepak Mathur to play the role of mentor and provide
on-going support and inputs
Appraisee and appraiser to have monthly discussion on
progress

2
Developmental
Area
Sometimes
demonstrates
the behavioral
skill

3
Capable
Often
demonstrates
the behavioral
skill

4
Strength
Almost always
demonstrates
the behavioral
skill

5
Role Model
Encourages &
Influences
others for
display of skill

Useful Tips

Keep track of your performance

Prepare in advance
Make sure you are well versed with your role
description
Carry all relevant documents ( forms, role description
etc)
Ensure that you budget enough time for your
performance planning session

Objective of the Session

Introducing the New PMS System
Performance Planning
Mid Year Review
Annual Appraisal
Feedback and Coaching
Normalization & Rewards

Mid Year Review

Period : October - 1st Week

A course correction mechanism

To discuss current level of achievement of targets
Manager will help revise the goals, if required, communicate current level of and
expectations on future performance during the year
Share any difficulties being faced by you.

Advantage
Provides a forum for you & your manager to review & update the performance plan and
react to any changes in organizational priorities

Focus
Your continuous improvement and development

Ask your manager:

Whats the progress towards meeting each goal ?

- Whats going well ? Why ?

- Whats not going according to the plan ? Why ?
- Are adjustments needed in the performance ? or in the goal? If so, what?

Mid Year Review

Period : October - 1st Week

HR

Facilitate initiation, conduct and closure of the process and remove roadblocks, if any
Record
mid-year
review
Approve
plan
revision if
warranted

Reviewer

Appraiser

Appraisee

Provide
feedback on
performance

Conduct selfappraisal on
performance and
development
plan

Submit self
appraisal
to
Appraiser

Discuss areas of
improvement
and support
required

In case of extraneous
circumstances

Approve
plan revision
if warranted

Discuss and
make
necessary
changes

Request
revisiting
performance
plan
[parameters
and/or targets],
if required

Discuss and
make
necessary
changes

The PMS Form: Mid Year Review

Self
Appraisal

Only
Qualitativ
e
Feedback
- Does
not result
in rating
Appraiser
s
Feedback
and
Comment
s

Mid-Year Review provides a forum for discussion and helps document

formal, written feedback

Objective of the Session

Introducing the New PMS System
Performance Planning
Mid Year Review
Annual Appraisal
Feedback and Coaching
Normalization & Rewards

Annual Appraisal
Period : March-April

Objective
Joint discussion between appraisee and appraiser around progress achieved during the performance
period and discussion on areas of improvement and support required
Assessment of Appraisees level of achievement on performance parameters and demonstration of
Competencies as per the Development Plan
Assigning of Overall Performance Score by the Appraiser

Preparation for the Annual Appraisal

Do your homework
Provide specific instances
Be objective while doing your self assessment of your performance
Place emphasis on both quality of your efforts & measurable results
Discuss & document your additional achievements
Discuss and jointly develop solutions
Listen and be prepared to change your mind
Budget enough time for the review

Annual Appraisal
Period : March-April

HR

Facilitate initiation, conduct and closure of the process and remove roadblocks, if any
Record
final rating

Validate and finalize

score, resolving
discrepencies, if any

Reviewer

Appraise the
incumbent on
Performance
Parameters &
Competencies

Appraiser

Appraisee

Communicatefinal
rating to Appraiser
& Appraisee

Complete selfappraisal on
performance and
development
plan, giving
ratings

Submit self
appraisal
to
Appraiser

Provide feedback
on each area of
performance and
development

Determine overall
score based on
quantitative and
qualitative
performance
parameters

Calculation of Overall Score

Illu

n
o
i
t
stra

Performance
Parameter

Scoring

Weightage

Rating

PP 1

20%

0.6

PP 2

20%

0.8

PP 3

40%

1.6

PP 4

20%

0.8

Overall Score

Indv. PP Score

3.8

Computation

Overall Score
= PP Score X PP Section Weightage

((3 * .2) + (4 * .2) + (4 * .4) + (4 * .2))

3.8

Filling the Form

ANNUAL APPRAISAL: Filling the Annual Appraisal Section

This Section will focus on self assessment and capturing formal, written feedback
from the Manager and Reviewer
Results in rating
The incumbent assesses himself on his performance in the last 12 months
Formal, written feedback is provided by the manager
Areas of improvement are discussed
Overall score is discussed
If there are huge discrepancies in ratings given by the Appraisee and the
Appraiser, the Reviewer intervenes and assesses the individual on the
Performance Parameters
Once completed, relevant places on the form are signed

The PMS Form: Annual Appraisal

Performance
Parameters

Weightages

Appraisees
Ratings

Appraisers
Rating

Reviewers Rating Only in cases of

Disagreement

Overall score is the weighted average of the ratings given by the Assessor.
Reviewers ratings are taken as a part of the computation only in cases of
disagreement between the Appraiser and Appraisee

The PMS Form: Annual Appraisal

Self
Appraisal

Appraisal
by
Appraiser

Feedback
by
Reviewer

The System provides for giving formal, written qualitative feedback

Activity 2 - Assessment of Performance

Divide yourself in groups of 2

Respond to the situation you have got

Present your views

15 minutes

Objective of the Session

Introducing the New PMS System
Performance Planning
Mid Year Review
Annual Appraisal
Feedback and Coaching
Normalization & Rewards

A Continuum: Feedback and Coaching

Long-Term Impact on Performance

Coaching

Feedback
Exploring new
behaviors to
Evaluating the
extend or
impact and
enhance
Informatio
desired
performance
n
change of
behavior
A comment
about
behavior

Feedback & Coaching

Continuos Feedback and Coaching is an inherent and
critical part of the new Performance Management System
The Mid Year and
Final Reviews are
specifically focused
on Feedback and
Coaching
Require the
Appraisee and the
Appraiser to have a
formal feedback
session

Appraiser
ONGOING
FEEDBACK

Appraisee

Feedback can be of
various types:
Positive
Corrective,
Feedback for the
purpose of
sharing
information and
Feedback
focused on
identifying
obstacles to
performance

Why Feedback & Coaching?

Objective:
Improve employee performance and job
satisfaction through ongoing communication
between the manager and employee.
The benefits are mutually understood
expectations, clear priorities, improved work
methods and early recognition of positive or
negative trends

Your Responsibilities:
Initiate session
Ask for feedback on performance
Discuss difficulties that you are experiencing
Seek coaching for improved performance
Ask your manager periodically
to review you

Elements of Effective Feedback

Describe the

Behavior

Explain the Impact of what was done

well/not done well
Discuss how is should be done

Tomorrow

Reinforcing Positive Behavior

n
o
i
t
a
r
t
lI lus

Behavior

You went out of your way to get Anita to

focus on the technical problem
Impact

that helped us remove the production

obstacle and deliver on time...
Tomorrow

keep showing that type of initiative.

Working in teams means using
individual strength areas

Activity 3 - Giving Feedback

Divide yourself in 2 groups

Respond to the situation you have got

Present your views

10 minutes

Tips on Collecting Feedback

Collect feedback at least twice
Prior to mid-period review or year-end review
At other appropriate times depending upon project milestones,
key events, etc.

Focus feedback on:

Performance expectations (standard job activities)
Display of key behaviors

Keep it simple
Ask 2-3 questions

What is Coaching?
Engaging
Engaging
Setting a constructive tone and
Setting a constructive tone and
expectations for the discussion
for the discussion
expectations
Describing
Describing
Clarifying
Clarifying

Exploring
Exploring
Exchanging information and
Exchanging information and
generating ideas to reinforce/modify
generating ideas to reinforce/modify
behavior or solve a problem
or solve a problem
behavior
Asking
Asking
Suggesting
Suggesting
Committing

Committing

Remember!

Forging ownership through agreeing

Forging ownership through agreeing
on next steps and responsibilities
next steps and responsibilities
on
Summarizing
Summarizing
Action planning
Action planning

Ask for feedback

Listen with an open mind
Ask for additional information, explanation or clarification
Acknowledge the feedback
Use the feedback

Rewards for Performance

Period: April end

Process
Manager announces the rating to the appraisee with the rationale for the same
The final rating gives input to rewards
Capabilities/ competencies provide input around possible promotion avenues for
any employee along with the final rating
Outcome
Logical use of the performance feedback for various reward actions
Greater transparency in explaining the process of reward fixation to employees
Confidentiality of output to ensure unfair comparisons between various
incumbents

Role Changes

Role changes could be due to:

transfers
promotions
separations
change in allocated responsibility

This would require closing of the current Performance Plan and

creation of a new Performance Plan

Closing and Creating Performance Plans

Appraiser will assess the Appraisee for the

Performance Period that he/she was in the
role

A new Performance Plan will be created for

the remaining Performance Period

Final Score for the entire Performance

cycle

Appraisee will close existing Performance

Plan before transitioning to the new role

Performance Score will

be a time weighted
average of the Final
Scores for the
Performance Period

If an Appraisee has
occupied a role for a
period less than a
month, the same will
not be considered while
computing the Final
Scores

Key Role players

Roles and Responsibilities