1. Part 1
KRA Setting

2. What are KRAs
“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.

3. Process of KRA Setting- Step 1
Identification of key tasks and activities by both employee and the manager

4. Process of KRA Setting- Step 2
Clearly define exactly what the Associate is supposed to achieve. What is his / her role in the organization?

5. Process of KRA Setting- Step 3
Defining the KRAs

6. SMART KRAs
Specific
A SMART KRA is defined as one that is specific, measurable, achievable, result-oriented and time-bound.
Measurable
Achievable
Result-oriented
Time-bound

7. Specific is the What, Why, and How of the S.M.A.R.T. model.
KRAs should be simplistically written and clearly define what you are going to do.
Specific is the What, Why, and How of the S.M.A.R.T. model.

8. EXPLANATION of SPECIFIC
EXAMPLE of SPECIFIC
By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers.
EXPLANATION of SPECIFIC
“Implement a new performance management system for Department A, Department B and Department C”= what
“using clearly defined processes and guidelines” = how
“so employees and managers can competently evaluate performance and develop
their careers” = why

9. Measurable
KRAs should be measurable so that you have tangible evidence that you have accomplished it. Usually, the entire statement is a measure for the project, but there are usually several short-term or smaller measurements built into the KRA.

10. EXPLANATION of MEASURABLE
EXAMPLE of MEASURABLE
By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers.
EXPLANATION of MEASURABLE
In this KRA, the essential metric of measurement is whether or not the system is operational by August 1st, 2014

11. and abilities needed to achieve the goal.
Achievable
Goals should be achievable; they should stretch you slightly so you feel challenged, but defined
well enough so that you can achieve them. You must possess the appropriate knowledge, skills,
and abilities needed to achieve the goal.

12. EXPLANATION of ACHIEVABLE
EXAMPLE of ACHIEVABLE
By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers.
EXPLANATION of ACHIEVABLE
In order for you to reach this goal, you must have a skill set, in this case in the area of performance management, that allows you to understand the nature of the goal, and the goal must present a large enough challenge for you to remain interested in and committed to accomplishing it.

13. Goals should measure outcomes, not activities.
Result-Oriented
Goals should measure outcomes, not activities.

14. EXAMPLE of RESULT-ORIENTED
By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers.
EXPLANATION of RESULT-ORIENTED
The result of this goal is a process that allows employees and managers to more competently evaluate performance and develop their careers, not the individual activities and actions that occur in order to make the goal a reality.

15. Time-Bound
Goals should be linked to a timeframe that creates a practical sense of urgency, or results in tension between the current reality and the vision of the goal. Without such tension, the goal is unlikely to produce a relevant outcome.

16. EXPLANATION of TIME-BOUND
EXAMPLE of TIME-BOUND
By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers.
EXPLANATION of TIME-BOUND
August 1, 2014 provides you with a time-bound deadline!

17. What is our Rating Scale?
5 = Outstanding – Exemplary performance with respect to KRA, in terms of the quantum of achievement, meeting of timelines and adherence to quality standards.
4 = Exceeded expectations – Surpassed expectations with respect to the achievement of goals, meeting of timelines and adherence to quality standards
3 = Met expectations – Good performance. Achieved the goals set for the KRA within reasonable limits and adhered to quality standards
2 = Below expectations – Performance marginally failed to meet expectations in terms of quantum of achievement, adherence to timelines or maintenance of quality standards
1 = Unsatisfactory – Performance significantly below expectations in terms of quantum of achievement, adherence to timelines or maintenance of quality standards.

18. What Are Weighting Factors?
Weighting factors are estimated values indicating the relative importance or impact of each item in
a group as compared to the other items in the group.

19. They help us establish work priorities.
Weightings in KRAs
The purpose of assigning weightings for KRAs is simple:
They help us establish work priorities.
In the performance appraisal, they are part of the calculation used to determine an accurate overall performance rating.

20. What is weighting based on?
It may be tempting to assign a priority weighting based on the amount of time spent on a particular KRA and in some cases this may be appropriate. However, other parameters should be considered. For example:
Is this KRA a critical process?
How important is this KRA to the position, the department, the organization?
What is the impact and scope of the expected outcomes?
Who is affected and how by this KRA?
What are the consequences if this KRA doesn’t happen?
How much time is spent on this KRA?

21. Please note: This is a hypothetical sample calculation
How are KRAs weighted?
In the Performance Management System of Wockhardt, KRAs are weighted in terms of percentage. Therefore the sum of weightings of all the KRAs should be 100. KRAs are weighted in order to account for the difference in importance levels of the different KRAs. Following is a simple example of how KRAs are weighted:
Key Result Areas
Weightage
KRA 1
20%
KRA 2
25%
KRA 3
40%
KRA 4
15%
TOTAL
100%
Please note: This is a hypothetical sample calculation

22. Obtaining the Weighted Rating
Thereafter, each KRA is reviewed and rated, based on the Associate’s performance and the organization’s rating scale. The rating scale in Wockhardt’s Performance Management System is from 1 to 5. Weighted Rating is obtained by multiplying the rating and the weightage.
Key Result Areas
Weightage
Rating
Weighted Rating
KRA 1
20% 4 80
KRA 2
25% 3 75
KRA 3
40% 5
200
KRA 4
15% 2 30

23. Arriving at the Performance Score
The sum of the Weighted Rating is then divided by 100 (since the total of the weightings is 100) in order to get the AVERAGE score. This is the final Performance Score of the Associate. This score will always be between 1 and 5 due to the rating scale in Wockhardt’s Performance Management System.
Key Result Areas
Weightage
Rating
Weighted Rating
KRA 1
20% 4 80
KRA 2
25% 3 75
KRA 3
40% 5
200
KRA 4
15% 2 30
Performance Score (∑ Weighted Rating / 100)
385/100 =3.85

24. Introduction to WINGS Part 2 WINGS
Wockhardt’s Initiative for Nurturing Growth and Synergy is Wockhardt’s Performance Management instrument which helps you set objectives in a systematic and focused way to enable you ‘fly higher’ to reach your aspirational goals. WINGS facilitate goal/objective setting and provide opportunity for continuous interaction with and feedback from superiors, and assessment of performance. It also enables development of your competencies. WINGS is the key to MARS/WEVA and annual increment.
MARS
MARS-Management Appraisal and Review System is applicable to all Associates in MT to M3 / RST to R6 / FM3 to FM5 grades and is disbursed bi-annually. The Performance review period for Associates covered by MARS will be April to September and October to March.
WEVA
WEVA-Wockhardt Economic Value Addition is applicable to all Associates in M4 / R7 and above grades. The Performance review period for WEVA will be April to March and payouts are disbursed annually.

25. User Manual for Performance Management System (PMS)

26. Key Milestones Activities Responsibility End Date Self-Assessment
All associates
6th April 2015
FLM & SLM (First & Second Line Manager) Assessment
All FLMs & SLMs
20th April 2015
Final Rating Submission to HR (post adherence to bell curve)
All Functional/Business/Site Heads
30th April 2015
Increments/MARS/WEVA etc HR
10th  May 2015

27. Performance Review Guidelines for Appraiser
Part 3
Performance Review Guidelines for Appraiser

28. Effective Performance Review
The most effective performance appraisals are those that are conducted in a supportive manner and style to bring out the best of an employee and their manager. It may be an annual or bi annually held meeting but it should be part of an ongoing review and support structure.
The following procedure outlines a framework and suggests the steps that should be involved in an effective Performance Review/Appraisal…

29. Prepare the employee you will be appraising
Step # 1
Prepare the employee you will be appraising
Give adequate notice of the scheduled performance appraisal review, explain it will be a two way discussion and encourage the employee to assess their own performance and development by considering some key questions:

30. Step # 2 Prepare yourself fully for the performance appraisal
Assess the employee’s past performance by considering:

31. Arrange a suitable venue for the performance appraisal review
Step # 3
Arrange a suitable venue for the performance appraisal review
Schedule the date and time of performance appraisal meeting considering how much time is needed and the best time of day for the employee with sufficient notice.
Arrange the most conducive venue for the meeting ensuring privacy, no interruptions and a relaxed environment.

32. Step # 4
Introduce the performance appraisal meeting and get the appraisee involved early on
Spend a few minutes establishing some rapport with the employee, setting the ‘scene’ by communicating the structure, timing, style and purpose of the discussion if not already conveyed and explaining the follow up to the meeting with documentation and the need for you to make notes.
Ask the employee team member what they wish to get out of the meeting and encourage them to make their own notes so that they become engaged with the meeting.

33. Review past performance over the last year / six months
Step # 5
Review past performance over the last year / six months
Compare the actual performance with the planned performance, i.e. the employee’s objectives set at the last performance appraisal and explore what has happened and why.
Explore both the internal and external factors affecting the employee’s performance and agree future performance improvements and likely performance and development objectives for next year.

34. Give Constructive Feedback
Step # 6
Give Constructive Feedback
Constructive Feedback is the effective form of feedback. For feedback to be constructive, it must provide information, whether good or bad, to recipients in such a way that they remain positive about themselves and their work.
The sandwich feedback technique is a popular three-step procedure to help managers provide corrective feedback. The sandwich feedback method consists of praise followed by corrective feedback followed by more praise. In other words, the sandwich feedback method involves discussing corrective feedback that is “sandwiched” between two layers of praise!

35. Example of Sandwich Technique

36. Summarize achievements and future plans
Step # 7
Summarize achievements and future plans
Summarize the year’s achievements against performance and development objectives, core skills/competencies and recognize other key achievements.
Summarize future plans such as the objectives for the year ahead and the key actions and improvements agreed by the employee, any support required from manager and any career aspirations recognized.

37. Provide ongoing support and reviews
Step # 8
Provide ongoing support and reviews
Deliver what you have promised to during the performance appraisal meeting – do not promise things you cannot deliver on! Provide coaching or training required to improve the internal factors affecting performance, eliminate or minimize the external blocks to performance and conduct regular scheduled reviews throughout the course of the year relative to your team member’s experience, performance and confidence levels.

38. Some common appraisal biases
Halo effect: Tendency to mark high on all aspects, taking into account only a specific positive aspect
Horns effect: Tendency to mark low on all aspects, taking into account only a specific negative aspect.
Similarity effect: Tendency to mark appraisee the same way as the appraiser perceives self.
Leniency effect: Tendency to mark leniently; reverse is also true.
Recency effect: Tendency to mark based on recent experiences only where assessment of performance/behavior over the entire period is ignored.

39. User Manual for PMS in Wockhardt
You are required to carefully go through the attached User Manual for Performance Management System in Wockhardt. The same is also available on
WIRE

40. Key Milestones Activities Responsibility End Date Self-Assessment
All associates
6th April 2015
FLM & SLM (First & Second Line Manager) Assessment
All FLMs & SLMs
20th April 2015
Final Rating Submission to HR (post adherence to bell curve)
All Functional/Business/Site Heads
30th April 2015
Increments/MARS/WEVA etc HR
10th  May 2015

41. Role Play