Performance Management System

May 2011

PMS 2010 11; 2011-12

Performance Management System ( PMS ) - l inking Strategy and Performance to Organizational & Individual Growth

May 2011

PMS 2010 11; 2011-12

Agenda
Performance Management System The Need Paradigm Shifts Objectives of Performance Management Methods Of Performance Management

Balanced Scorecard Approach Management By Objective

PMS - Process Flow PMS-Basics

Key Result Areas Guidelines for Writing Objectives

Going Forward

May 2011

PMS 2010 11; 2011-12

Understanding Performance

Performance is the most important factor in the industry today. In a competitive environment, performance offers the only differentiating and stark competitive advantage. Developing a Performance Culture is the key to becoming successful & effective.

May 2011 PMS 2010 11; 2011-12

Shifting Paradigms

Performance Appraisal Subjectivity

Performance Management Objectivity Transparency System & Development Orientation

Confidentiality

Control Orientation

May 2011

PMS 2010 11; 2011-12

THE PMS PROCESS

May 2011

PMS 2010 11; 2011-12

Key Result Areas

Key Result Areas or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA.

May 2011

PMS 2010 11; 2011-12

Objectives
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Objective Setting forms the basis for Performance Management Objectives help project teams focus Objectives get people on the same page Objectives help visualize the accomplished task Objectives allow us to evaluate project outcomes Capture Performance expectations

May 2011

PMS 2010 11; 2011-12

Setting SMART Objectives

May 2011

PMS 2010 11; 2011-12

Balancing the Objectives Assigning Weights

Learning& S trateg ic Growth P aram eter S ystem s Operational P aram eter

May 2011

PMS 2010 11; 2011-12

Appraisal - Relative Ratings

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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

May 2011

PMS 2010 11; 2011-12

Performance Ratings & Distribution

Below Average/ Not Acceptable Average Progressive Excellent Outstanding/ Exemplary Performance Scores

0 - 20

21 - 50

51 - 60

61 - 74

75 85

86 - 100

Ratings

Recommended Distribution

5%

10%

10 %

20 %

50 %

5%

May 2011

PMS 2010 11; 2011-12

The PMS Process

Environmental Factors *` Job Rotation, Enlargement, etc

Strategic Plans Budget

Potential Assessment Development Training

PMS
a m r o f r e P n n a l P e c n k r o W g n i p o h s
May 2011

Some exits occur Promotion Comp. Review Career Planning

* Economic, Business, Political, Social, Legal, International agreements, etc.

PMS 2010 11; 2011-12

PMS Centric HR Process

Environmental Factors * Job Rotation, Enlargement, etc Potential Assessment Development Budget Training Employee Performance Company Performance

Strategic Plans

PMS
a m r o f r e P n n a l P e c n k r o W g n i p o h s
Position Clarification / Evaluation

Some exits occur Promotion Engagement

COMPENSATION REVIEW

Career Planning

Induction

Organisation structure/plan
May 2011

Manpower Plan
PMS 2010 11; 2011-12

Recruitment

Performance Management Process Outcomes for the employee

Performance Planning Performance Development

1.Role Clarity 2.Work Planning

1.Insights into Strengths & Weaknesses 2.Identifying development needs 3.Preparing employees for higher level jobs 4.Promoting Self-reflection / Appraisal
1.Increasing mutuality between boss and

Culture Building

team members 2.Enhancing upward and downward communication 3.Helping employees to internalize norms culture and values of the organization 4.Instrument for problem solving and building a collaborative healthy culture
PMS 2010 11; 2011-12

May 2011

PMS
qManaging q qTracking

- some more benefits

expectations of both Superiors and Subordinates promises made / objectives set made at the beginning of the year
qProviding appropriate feedback on performance q qEstablishing clear linkage between Rewards &

Performance

q qIdentifying

Developmental needs of Appraisee

May 2011

PMS 2010 11; 2011-12

The Way Forward - Timelines

Activity Start Date End Date Performance Planning (PP) 2011 - 12 Performance Planning Workshops & declare Initiatives and Departmental KRAs 15-May Objective Setting - Cascading Process - Employee sets objectives in consultation with HODs 15-Jun Midterm Review 2011-12 Mid year Review & Feedback Performance Appraisal (PA) Employee fills and submits Achievements - 2010 -11 Review and Ratings by Dept Head) Moderation by SMG Compensation Guidelines from Management Performance Feedback (Concurrent activity) Reward letters by HR 15-Dec 15-May 15-Jun 1-Jul 1-Jul 15-Jun 1-Aug 15-Jun 30-Jun 31-Dec 15-Jun 30-Jun 15-Jul 31-Jul 30-Jun 20-Aug

May 2011

PMS 2010 11; 2011-12

Agenda
q

q q q q q

The Balanced Scorecard 4 Perspectives of Balanced Scorecard The Benefits of Balance Scorecard The Balanced Scorecard based Performance Management PMS - Process Flow PMS-Basics
q q

Key Result Areas Objective Setting and Cascading Process

q q q

Appraisal and Performance Ratings Performance Centric HR Processes The Way Forward Time lines

May 2011

PMS 2010 11; 2011-12

The Balanced Scorecard

q

A strategic planning and management system used extensively in organizations worldwide To align business activities to the vision and strategy, improve internal and external communications, and monitor organization performance against strategic goals

q q q q q

Originated by Drs. Robert Kaplan (Harvard Business School) and David Norton It provides a framework that links Strategy to Organizational & Individual Performance. Enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.

May 2011

PMS 2010 11; 2011-12

Customer Ranking Survey Customer Satisfaction Index Market Share Key Accounts

Return on Capital Employed Cash Flow Project Profitability Profit Forecast Reliability Sales Backlog

% Revenue from New Services Rate of Improvement Index Staff Attitude Survey # of Employee Suggestions Revenue per Employee May 2011

PMS 2010 11; 2011-12

Hours with Customers on New Work Tender Success Rate Rework Safety Incident Index Project Performance Index Project Closeout Cycle

The 4 Perspectives
The Learning & Growth Perspective
Learning Climate Mentoring / Communication Employee training Corporate Cultural Attitudes . INNOVATION

The Internal Business Process Perspective

May 2011

PMS 2010 2011-12 Operational Parameters 11;& Internal processes .

The Benefits
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Translating strategy into operational metrics and goals Aligning organization around a single, coherent strategy Making strategy everyones everyday job Making strategic improvement a continual process and Mobilizing change through strong, effective leadership.

May 2011

PMS 2010 11; 2011-12