Roll-out of the NORTHRAIL PMS

Why PMS? Performance management is a key process in people management.  It encompasses many elements of effective people management such as agreeing to the list of deliverables and the required standards between the two parties i.e. the manager and the managed. It provides the platform for clarification and negotiation, should the targets be too unrealistic.  It is also an opportunity to discuss on progress, issues and support required during the periodic performance management discussion.

When done well, the returns are enormous as it sets clear direction to the managed and also a training identification opportunity. If it is done well, it would be objective and work related, minimizing the allegations of biasness, prejudices etc.

WHAT PERFORMANCE MANAGEMENT IS AND IS NOT

Performance Management IS NOT The same as Performance Review Something a manager does to a Staff About filling the forms once a year Used only when performance is poor

Performance Management IS An ONGOING COMMUNICATION PROCESS Undertaken between a STAFF and his/her immediate SUPERVISOR That involves establishing CLEAR EXPECTATIONS and UNDERSTANDING about the jobs to be done.

Benefits of Performance Management Align goals across job levels Identify problems and solve it timely Make HR related decisions Help staff to do their work Coordinate work Provide regular and ongoing feedback

Benefits of Performance Management Prevent mistakes by clarifying expectations Plan development and training activities Least time, maximum comfort Focused and serve the needs of both managers and subordinate

(Managing by looking at the rearview) Look Forward Commit to the idea that your job is to build success in the present and future, and not to manage by looking at the past (Managing by looking at the rearview)

Objectives of the NORTHRAIL PMS Provide an objective performance evaluation system for all employees. Ensure that employees have clear, measurable work/performance targets and responsibilities that are aligned with the overall Company, Department and Division performance targets. Enhance organizational effectiveness and productivity. Create a framework for ongoing feedback and coaching between managers and employees. Motivate employees with employee development and career planning. Recognize exceptional performance. The Company reserves the right to terminate any probationary employee who does not meet the standards of the job or has received poor or unsatisfactory performance rating at any given time during the probationary period.

Scope All employees, regular, probationary and project-based Except VPs

THE NORTHRAIL PERFORMANCE MANAGEMENT PROCESS PERFORMANCE PLANNING COMPANY LEVEL Strategic Plans (Vision, Mission, Values) Annual Goals Budget DEPARTMENT LEVEL • Department Vision, Mission, Goals and Action Plans • Clarification of Roles INDIVIDUAL LEVEL • Standards of Performance • Development Action Plan CONTINUOUS REVIEW COMPANY LEVEL Quarterly Business Review DEPARTMENT LEVEL INDIVIDUAL LEVEL Quarterly Appraisal Regular Observation and Feedback PERFORMANCE ASSESSMENT COMPANY LEVEL Annual Business Review INDIVIDUAL LEVEL Quarterly Performance Evaluation

Probationary Probation of no more than 6 months Evaluation at the end of the 3rd and 5th month Applies to project employees Personnel Action Notice to effect the necessary changes No retroactive regularization adjustments

Mid probation Manager should ensure that the employee is aware of his/her current performance Close monitoring If no improvement at the end of the 4th month, may terminate, 30 days notice Or due process: Verbal warning Written warning Written evaluation after 1 month Recommended for termination

The PMS Tool: The Performance Planning and Evaluation Form (PPE) Quarterly October objectives (July-Sept), retroactive Should have ratings by Oct. 16. October objectives for Oct-Dec. prospective Should be in by Oct. 23 Part 1: 70% - performance targets JL8 and below – based on duties and responsibilities JL 9 and above – based on SMART deliverables Part 2: 30% - behavioral Part 3: Development Action Plan (DAP)

Part 1: Objectives List maximum of 7 objectives Determine the weight in decimals– should total 100% Get it validated by your immediate superior Point score = 1 to 10 Multiply Weight with Point Score Multiply by .70 which is the Weighted Average Score (WAS) multiplied again by 10 for Part 1

Equivalent Point Score   Weight Point Score Equivalent Point Score Objective 1 0.10 10 1.00 Objective 2 0.20 9 1.80 Objective 3 0.30 8 2.40 Objective 4 0.40 7 2.80 1  8.00 WAS (EPS X.70 X 10) 56.00

Point Score 10 - 100% accomplishment of tasks 9 - 90% to 99% accomplishment of tasks 8 - 80% to 89% accomplishment of tasks 7 - 70% to 79% accomplishment of tasks 6 - 60% to 69% accomplishment of tasks 5 - 50% to 59% accomplishment of tasks 4 - 40 % to 49% accomplishment of tasks 3 - 30% to 39% accomplishment of tasks 2 - 20% to 29% accomplishment of tasks 1 - 10% to 19% accomplishment of tasks

Examples of Objectives Not SMART SMART General No quantities May be too easy Focus on day to day, not results Specific Measurable (quantify) Attainable (but stretch) Realistic Time bounded

Examples of Objectives Not SMART Design criteria formulation Technical Reports Technical Reviews Represents the dept. in meetings with the contractor, LGUs, etc. Coordinate among departments SMART Design Criteria for _____ Technical Reports Specify how many, nature, scope Handle the architectural design services of the Engineering Division Policies on ____, ____, ____ MOAs? Agreements? Documentation

Part 2 : Critical Performance Factors 10 - 100% of the time 9 - 90% to 99% of the time 8 - 80% to 89% of the time 7 - 70% to 79% of the time 6 - 60% to 69% of the time 5 - 50% to 59% of the time 4 - 40 % to 49% of the time 3 - 30% to 39% of the time 2 - 20% to 29% of the time 1 - 10% to 19% of the time

Part 2: Critical Performance Factors (30%) Convert the weight in decimals Point score = 1 to 10 Multiply Weight with Point Score Multiply by .30 which is the Weighted Average Score (WAS) X 10 for Part 2

Over-all Rating Part 1 plus Part 2 = Over-all weighted scores Corresponds to the ff adjectival ratings Outstanding - 90% - 100% (Certificate from the P/COO) Very Satisfactory - 80% - 89% Satisfactory - 60% - 79% Unsatisfactory - 50% - 59% (written warning, 1 more quarter) Poor – 49% and below (due process for termination)

Part 3: DAP

Immediate Next Steps Quarterly October objectives (July-Sept), retroactive Should have ratings by Oct. 16 Department orientation Individuals fill in their PPEs, to be validated by immediate boss Your manager evaluates you Your manager discusses the appraisal with you. Submit to HR by Oct. 16 October objectives for Oct-Dec. prospective Should be in by Oct. 23 Second evaluation by Dec. 15

Performance Planning Clarify and ensure understanding Seek agreement and commitment Offer support Monitor need to revise goals/plans Create mechanisms to review plans