2 Performance…….. PERFORMANCE IS KEY TO A COMPANY’S SUCCESS. IN A COMPETITIVE ENVIRONMENT, ORGANISATIONS THAT PERFORM, HAVE A COMPETITIVE ADVANTAGE. DEVELOPING A PERFORMANCE CULTURE IS THE KEY TO BECOMING SUCCESSFUL & EFFECTIVE. 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

3 Globalisation Princess Diana’s death a british princess with her egyptian boyfriend travelling in a german car driven by a spanish chauffer chased by italian paparazzi riding japanese motorcycles crashes in a french tunnel treated by a portuguese doctor with brazilian medicines. I received this information on my finnish branded cellphone manufactured in taiwan, smuggled by a pakistani through nepal. 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

4 Impact on HR  Competition for scarce skills  Specialists  Managers  Those who can foresee future / handle risks  Salaries rise  Competition erodes ability to pay all  Ability to upscale / downscale costs 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

5 Impact on HR  Can organisations afford to remain with “comfortable” ways of the past?  Criticality of  Performance  Leadership, Strategic thinking  Greater need to differentiate  Performance  Potential 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

6 PMS Strategic Plans Training PLR & Comp Review Promotion Some exits occur Career Planning Performance Planning Workshop Development Job Rotation, Enlargement Potential Assessment Budget * Economic, Business, Political, Social, Legal, International agreements, etc. Performance Management Process Environmental Factors *` 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

7 PMS Strategic Plans Training PLR & Comp Review Promotion Some exits occur Career Planning Performance Planning Workshop RecruitmentManpower Plan Induction Engagement Development Job Rotation, Enlargement Company Performance Organisation structure/plan Employee Performance Potential Assessment Role & Value of a Position Feedback of Company performance on Company’s plans Budget * Economic, Business, Political, Social, Legal, International agreements, etc. The Complete HR Process Environmental Factors * 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

"Whatever you can do, or dream you can….. BEGIN IT.”

9 Differentiation is essential 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

10 IF YOU DO NOT DIFFERENTIATE, THE BEST WILL LEAVE, IF YOU DO THE WORST MAY LEAVE 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

11 Relative Rating Differentiation is always possible 20-Feb-16 HEC BUILDS MACHINES THAT BUILD THE NATION

12 Philosophy Differentiation is a driver for Performance Relative Rating is the adopted method to achieve differentiation Rewards directly related to Rating Development needs are of equal importance Two way Feedback will enhance Performance & Development Do We Value Meritocracy 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

13 Distribution Percentage E1 to E3 5%10%10%20%25%15%10%5% E4 to E5 NA10%15%20%25%20%15%5% E6NANA10%20%25%20%15%10% E7NANANA10%15%25% 30 % 20% 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

The Look of the Bell Curve 20-Feb HEC BUILDS MACHINES THAT BUILD THE NATION

15 ISSUES Why do we need to Hav Alignment of individual objectives with company objectives Setting of timely objectives Mid term review to be made effective with focus on development Feedback process to be strengthened and improved 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

16 ISSUE- Expectation Management Balance Subordinate expectations Communicate early and often Be Transparent 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

17 PMS Objectives Managing expectations of both Superiors and Subordinates Tracking promises (objectives set) made at the beginning of the year Facilitating meaningful dialogue between Superior and Subordinate Establishing clear linkage between Rewards & Performance ratings Identifying Developmental needs of Appraisee 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

18 Appraisal FEARS …….. 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

19 Appraisee’s fears:  Will I be fairly judged?  Will my Self Esteem be affected?  Can I afford to be open? Appraiser’s fears: If I am honest, will I hurt the employee? If I am honest, will I hurt the employee? How do I manage expectations? How do I manage expectations? Personal Insecurity Personal Insecurity Appraisal FEARS …….. 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

COGS IN THE WHEEL 20-Feb HEC BUILDS MACHINES THAT BUILD THE NATION

21 Proposed System Performance Planning Mid Year Review Moderation by Macro View Group Appraisal Process Two-way Feedback to Subordinate 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

22 Understanding Objective Setting Improve communication between IS and subordinate Have two way dialogue 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

Performance Planning Workshop following the finalization of Company Annual Budget IS and appraisee decide on appraisee’s objectives PODP form to be jointly filled up during Objective Setting Exercise. Performance Planning Objective Setting and PODP Objectives should be specific and measurable. Min.3 and Max. 5 objectives Should be in line with the objectives derived at PPW Cascading Business Objectives using appropriate methodology

24 Mid Year Review IS conducts a Development discussion meeting on tasks, resources & way forward. Feedback taken from appraisee Focus on Development of Employee Now its your turn to give me feedback……. 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

25 Role Clarity Recognition Resources Learning & Growth Opportunities Departmental Support / Team work Other Facilitating / Hindering Factors Job content Actively seek feedback from Employee 20-Feb-16 HEC BUILDS MACHINES THAT BUILD THE NATION

26 Making the employee comfortable 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

27 Appraisal Process Appraisee records achievements and sends to IS IS appraises performance and gives a relative rating on a scale of 1-8 Based on volume of work, quality of output, speed & internal customer orientation IS routes form with score and comments to NS Comments may cover other significant achievements & context & situation in which results were achieved 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

28 Appraisal Process NS adds comments & routes Form to DH DH arrives at normalized rating and gives his comments Form is sent to respective HR NS should also remark on comments of IS DH discusses with IS in case difference in rating is 2 or more Form is collated by HR and sent to MVG For revised objectives, both the forms to be sent to MVG 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

29 Appraisal Process MVG reviews and moderates rating in line with distributed percentages along with comments Form is sent to HR HR routes Form back to IS through reporting route MVG discusses with DH if difference in rating is 2 or more, DH conveys to IS 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

30 Aspects of Feedback to Employee 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

31 E4 to E5 E6 / E7 Func Dir Employee MVG Members Head of MVG Composition of MVG Members shall be within 2-3 reporting levels of the employees appraised. Objectives: Push decision-making down. Line of sight. E1 to E3 Sr Mgrs (E5) Deptt Head (E6) Employee MVG Members Head of MVG E6 to E7 Func Dirs CMD 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

32 Constitution of MVG - Constitution of MVG - MVG should have at least 30 employees in a band for moderation purpose - Smaller departments to be clubbed to form one MVG In April 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

33 Feedback IS receives Form and discusses MVG rating & category with NS/DH IS gives feedback to employee & communicates “Performance Category” IS explains the rationale of rating & how to improve ratings for the next year 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

34 So, what are the issues in the PMS Process Related Measures Performance Planning Workshops Mid Year Review Relative rating(1-8) by Immediate Superior MVG composition MVG rating category communication People Development Policy Related Measures Coverage Percentage Distribution Measures for improving System Adherence Issue of Reward Letters Report to Functional Directors System Monitoring Training 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

35 Multiple Reporting Appraisee reports functionally & administratively to different people Appraisee is a member of a Task Force / Project, while being based in a Department Responsibility of Performance Review will be of the superior involved in Objective Setting Responsibility of Performance Review will be of superior who sets the Objective Both Superiors are involved in the entire PA exercise Both Functional and Taskforce / Project Head are involved in PA exercise 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

36 New Employees and Transferees New employee will be covered if they have completed 90 or more days of service before 31 st March Transferees will go through the PA exercises in Departments where they have worked for more than 90 days. Present DH will decide the final ratings after taking inputs from previous IS/NS and taking the PA form received from the previous and the new department in to consideration 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

37 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION

38 In a class of eighth std students, a teacher asked, “What’s the difference between ‘satya’ (truth) and ‘bhram’ (illusion)?” After a longish pause, when no one answered, a backbencher, who had never ever answered any question in class had this to say:- What you told us is “satya”, but that you think that everything that you said has been understood by us is “bhram”. 20-Feb-16HEC BUILDS MACHINES THAT BUILD THE NATION