WHAT IS KRA ? Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the department’s role is responsible. Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual, the core area which each person is accountable for. Key Results Areas enables you to take ownership of your job and to accept responsibility for those areas in which achieving results are your responsibility.

Importance of KRAs. • Set goals and objectives • Prioritize their activities, and therefore improve their time/work management • Clarify roles of department or individual • Focus on results rather than activities • Align their roles to the organization’s business or strategic plan • Promote an environment of self-management.

*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY. Determinants of KRA VISION STATEMENT MISSION STATEMENT CORPORATE OBJECTIVES *CORPORATE STRATEGY *CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.

Specific Measurable Achiev able Relevant Time Bound SMART

Present scenario of appraisal system in POSOCO Traditional way of maintaining appraisal system E1 to E3 – Filled at the end of the calendar year. Part –I Self Appraisal by Appraisee - Main Responsibilities and task accomplished - Major Achievements - Task Assigned but not completed and reasons thereof Part –II Reporting officer - Brief comment by reporting officer after discussion with the apparisee. - Brief comment on apparaisee’s job knowledge, cost consciousness, initiative, communication skills and commendable work done in Hindi - Integrity assessment

E4 & E5 – Filled at the end of the calendar year. Part –I Self Appraisal by Appraisee - Main Responsibilities and task accomplished - Major Achievements - Task Assigned but not completed and reasons thereof Part –II Reporting officer - Brief comment by reporting officer after discussion with the apparisee. - Brief comment on apparaisee’s job knowledge, cost consciousness, initiative, communication skills and commendable work done in Hindi - Assessment of managerial traits such as organizing ability, team effectiveness, cost effectiveness, development of subordinates and judgment. - Integrity assessment

E6 /E7/E7A - Appraisal Period – Financial year Part –IA – Performance Planning & Review - Targets/ Key Result Areas for the year to be filled in by the appraisee after discussion with Reporting officer. Part –IB – Review Discussion – 1st Half - Targets /KRAs assigned and filled. - Brief record of discussion of the reporting officer with the appraisee. Part –IC – Review Discussion – 2nd Half - Brief record of discussion of the reporting officer with the appraisee Part –II – Executive Abilities - Assessment on 10 parameters such as Job Knowledge, Organizing Ability, Cost Effectiveness, Team Effectiveness, Initiative, Judgment, Development of Subordinates, Commendable work done in Hindi and Peer Relationship. - Integrity assessment

Management objective for different appraisal formats for different levels E1 to E3 – Operational level executives E4 & E5 – Managerial cadre – heading sections within Department. E6 to E7A – Middle Managerial cadre

Use of Performance management system - Clarity of expectations and responsibilities of the employee. - Review the performance of the employees over a given period of time. - Assess the gap between the actual and the desired performance. - Identify training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc. To reduce the grievances of the employees. - Helps to strengthen the relationship and communication between superior – subordinates and management – employees.

New Performance Management System in POSOCO Introducing New Performance Management System in POSOCO

The new PMS is applicable to first two job clusters All the Executive in the organization has been divided into THREE JOB CLUSTERS E1 to E5 - Cluster I E6/E7/E7A - Cluster II E8 & E9 - Cluster III These job clusters have been finalized by IE Group during Competency Mapping exercise The new PMS is applicable to first two job clusters No Change has been made in the E8 & E9 PMS The New Appraisal formats in the New PMS has been approved by the Board of Directors.

The New Appraisal formats have the following features:- Part –I PERFORMANCE, Part - A.pdf, Part - B.pdf - KRA has to be set with measurable targets - KRA has to be aligned with MOU targets. - KRA to be set after mutual discussion between Appraiser and appraisee. - KRA to be reviewed bi-annually - Performance Review sheet shall be filled at the end of Appraisal Period which shall include need for training and development. Part –II Competencies (E1toE5), (E6toE7A) - All the Executives shall be assessed of 9 competencies identified for various job cluster. - Appraiser shall rate the appraisee on a scale of 1 to 5 on competencies

Part –III VALUES (E1 to E5), (E6 to E7A) - The values for all the job cluster is same. - Appraiser shall rate the appraisee on a scale of 1 to 5 on values Part – IV POTENTIAL APPRAISAL (E1to E5), (E6to E7A) - All the Executives shall be assessed on 5 potential appraisal attributes - Potential Appraisal attributes shall differ as per the job cluster - Appraiser shall rate the appraisee on a scale of 1 to 5 on values potential appraisal attributes

Marking System in the Appraisal formats Appraisal Parameters E1 to E5 E6 to E7A Performance 75 65 Competencies 15 Values 05 10 Potential Total 100

COMPETENCIES CompetenciesE6-E7A.doc CompetenciesE1-5.doc. 1. Business Environment 1. Business Knowledge: 2. Profession Specific Knowledge: 3. Decision Making 4. Planning & Coordination 5. Systematic Thinking 5. Problem Solving 6. Learning Orientation 6. Collaboration & Networking 7. Result Orientation 7. Accountability 8. Leadership 8. Drive & Initiative 9. Team Player

POTENTIAL APPRAISAL E6/E7/E7A E1/E2/E2A/E3/E4/E5 1. Inspire People 1. Leadership Abilities 2. Team Building 2 Business Sense 3. Ability to build a Strategic Vision 3. Foresight 4. Business Sense 4. Innovation 5. Coaching 5. Trust and Respect

Expectation from the New PMS Target setting at all executive levels Cascading of MOU to the lower levels to achieve optimum performance To provide objective assessment. Clarity in the beginning itself as to what is expected. Performance feedback to all Help in the overall achievement of Organization Goal Bring about efficiency in administration of the Performance Management System by implementing e-PMS

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