Effectiveness of - Performance Management System and Its Effect on Employee Performance

Punjab Technical University

Asian Business School (ABS)

EFFECTIVENESS OF PERFORMANCE MANAGEMENT SYSTEM & ITS EFFECT ON EMPLOYEE PERFORMANCE

This Report was completed in partial fulfilment of the requirement for the degree Master of Business Administration Punjab Technical University Asian Business School, Noida Campus

SUBMITTED TO DR. VENKATA SUBRAMANIAN CHADHA [Faculty Guide] (MARKETING)

PRESENTED BY AJAY MBA

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ACKNOWLEDGEMENT One of the most pleasant aspects of writing an acknowledgement is the opportunity to thank all those who have contributed to it. Unfortunately, the list of expression of gratitude- no matter how extensive – is always incomplete and inadequate. This acknowledgement is no exception. First of all, I wish to express my sincere gratitude to Latika Sahni (Dean) ABS, FILM City, Noida, for giving me opportunity to do research under her profound guidance. Because of her inspiring guidance, motivation, positive criticism, continuous encouragement and untiring supervision this work could be brought to its present shape. I would like to thank all of them who in one way or the other have helped me.

NEERAJ BHATI

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PREFACE The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customer’s grievances. Moreover, the company should always be ready to make necessary changes according to the requirement in order to attract more customers so as to maintain a substantial growth in the market. The topic given to me was:

“EFFECTIVENESS OF PERFORMANCE MANAGEMENT SYSTEM AND ITS EFFECT ON EMPLOYEE PERFORMANCE” I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please ignore it.

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CONTENTS Executive Summary…………………………………………………………….. Chapter 1 – Introduction……………………………………………………... Chapter 2 - Objectives and Rationale of the study………………………….. Chapter 3 - Review of Literature…………………………………………….. Chapter 4 – PMS at cocac Chapter 5 - Research Methodology………………………………………….. 5.1 Research Design….………...………………………………. 5.2 Sample Size………………………………………………… 5.3 Research Tools and Questionnaire...……………………….. 5.4 Action Plan for Data Collection……………………………. 5.5 Data Analysis ……………………... Chapter 6 – Research Findings ………………………………………………. Chapter 7 –Recommendations and Conclusion……………………………………… Select Bibliography References………………………………………………………………. Company Profile………………………………………………………... Questionnaire……………………………………………………

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EXECUTIVE SUMMARY The study conducted on “EFFECTIVENESS OF PMS AT COCACOLA” aims at highlighting its impact on the performance levels of the employees. Through this research, I have studied the performance management system being followed by COCACOLA across India and tried to find out the shortcomings of the current system by getting a questionnaire filled up by 30 employees from the Gurgaon Regional branch. The analysis is done with the help of pie charts depicting the percentage of employees satisfied with the PMS of COCACOLA. From these questionnaires, it has been identified that major issues that affect the success or failure of PMS .Finally, it makes recommendations on how managers can better manage PMS to enhance employee performance there by improving organizational performance, by aligning personal goals with organizational goals.

The findings reveal that entire PMS of Unilever is scientific and integrated approach in achieving outstanding performance. The gap/ shortcoming are in the mentoring/ feedback mechanism which is not held regularly. There are no interim discussions held but just once, i.e. end of year when appraisals happen. 5

Chapters 1 to 3 discuss about the topic and give a brief insight of the basic concepts and need for the involvement of HR, prerequisites which determine a success or failure of any PMS and the objective behind the study and its rationale. Chapters 4 deals with the PMS followed by COCACOLA , the organization under study. Chapter 5 deals with the research methodology and highlights the methodology used and action plan for data collection. Findings have been dealt in Chapter 6.

While concluding the report, it has been summarized and recommendations are given in the Chapter-7

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CHAPTER 1 INTRODUCTION Why Performance Appraisals Don't Work???

The Traditional Performance Appraisal Process In the conventional performance appraisal or review process, the manager annually writes his opinions of the performance of a reporting staff member on a document supplied by the HR department. In some organizations, the staff member is asked to fill out a self-review to share with the supervisor. Most of the time, the appraisal reflects what the manager can remember; this is usually the most recent events. Almost always, the appraisal is based on opinions as real performance measurement takes time and follow-up to do well. The documents in use in many organizations also ask the supervisor to make judgments based on concepts and words such as excellent performance (what's that?), exhibits enthusiasm (hmmm, laughs a lot?) and achievement oriented (likes to score?). Many managers are uncomfortable in the role of judge, so uncomfortable, in fact, that performance appraisals are often months overdue. The HR professional, who manages the appraisal system, finds his most important roles are to develop the form and maintain

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an employee official file, notify supervisors of due dates, and then nag, nag, nag when the review is long overdue. Despite the fact that annual raises are often tied to the performance evaluation, managers avoid doing them as long as possible. This results in an unmotivated employee who feels his manager doesn’t care about him enough to facilitate his annual raise. Employee Performance Appraisal is Painful and It Doesn’t Work Why is this established process so painful for all participants? The manager is uncomfortable in the judgment seat. He knows he may have to justify his opinions with specific examples when the staff member asks. He lacks skill in providing feedback and often provokes a defensive response from the employee, who may justifiably feel he is under attack. Consequently, managers avoid giving honest feedback which defeats the purpose of the performance appraisal. In turn, the staff member whose performance is under review often becomes defensive. Whenever his performance is rated as less than the best, or less than the level at which he personally perceives his contribution, the manager is viewed as punitive. Disagreement about contribution and performance ratings can create a conflict ridden situation that festers for months. Most managers avoid conflict that will undermine work place harmony. In today’s team-oriented work environment, it is also difficult to ask people who work as colleagues, and sometimes even friends, to take on the role of judge and defendant.

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Further compromising the situation, with salary increases frequently tied to the numerical rating or ranking, the manager knows he is limiting the staff member’s increase if he rates his performance less than “outstanding”. No wonder managers waffle, and in one organization with whom I worked, ninety-six percent of all employees were rated “one". Am I completely against performance appraisals? Yes, if the approach taken is the traditional one I have described in this article. It is harmful to performance development; damages work place trust, undermines harmony and fails to encourage personal best performance. Furthermore, it underutilizes the talents of HR professionals and managers and forever limits their ability to contribute to true performance improvement within your organization. A performance management system, which I would propose to replace the old approach, is a completely different discussion. And, I don’t mean renaming performance appraisal as “performance management” because the words are currently in vogue. Performance management starts with how a position is defined and ends when you have determined why an excellent employee left your organization for another opportunity. Within such a system, feedback to each staff member occurs regularly. Individual performance objectives are measurable and based on prioritized goals that support the accomplishment of the overall goals of the total organization. The vibrancy and performance of your organization is ensured because you focus on developmental plans and opportunities for each staff member.

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Performance Feedback In a performance management system, feedback remains integral to successful practice. The feedback, however, is a discussion. Both the staff person and his manager have an equivalent opportunity to bring information to the dialogue. Feedback is often obtained from peers, direct reporting staff, and customers to enhance mutual understanding of an individual’s contribution and developmental needs. (This is commonly known as 360 degree feedback.) The developmental plan establishes the organization’s commitment to help each person continue to expand his knowledge and skills. This is the foundation upon which a continuously improving organization builds. The HR Challenge Leading the adoption and implementation of a performance management system is a wonderful opportunity for the HR professional. It challenges your creativity, improves your ability to influence, allows you to foster real change in your organization, and it sure beats the heck out of “nag, nag, nag".

PERFORMANCE MANAGEMENT SYSTEMS Performance management encompasses the most important people issues in your organization. Performance management includes the entire relationship you have with the people you employ. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed and expectations are clearly communicated to the employee. It ends when an employee leaves your organization.

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Many writers and consultants are using the term “performance management” as a substitution for the traditional performance appraisal system. I encourage you to think of the term in this broader work system context.

A performance management system includes the following components. * Develop clear job descriptions. * Select appropriate people with an appropriate selection process. * Negotiate requirements and accomplishment-based performance standards, outcomes, and measures. * Provide effective orientation, education, and training. * Provide on-going coaching and feedback. * Conduct quarterly performance development discussions. * Design effective compensation and recognition systems that reward people for their contributions. * Provide promotional/career development opportunities for staff. * Assist with exit interviews to understand WHY valued employees leave the organization.

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CHAPTER 2 OBJECTIVES AND RATIONALE BEHIND THE STUDY OBJECTIVES OF THE STUDY: 1. To study the current PMS followed by Hindustan Lever Ltd. and To find out its effectiveness. 2. To find out if it’s a performance driven organisation. 3. To find its impact on improving its employees performance. 4. To make recommendations regarding the same .

NEED FOR A PARADIGM SHIFT: In most modern organizations, the performance appraisal systems have been subjected to fine tuning and a number of modern concepts like Management

by

Objectives,

Pay

for

"http://mmg.name/feedback360.html"

performance, µ360

HYPERLINK

degree

feedback§,

Competency based performance management etc., have been adopted. The focus

should

be

on

understanding

the

concept

of

performance

management and identifying the requirements to design it. A paradigm shift is defined as one where we look at things differently and when the perception of the situation changes to the opposite, though the situation has remained the same. There is a need for a paradigm shift 12

as far as PMS is concerned. It should not stop after carrying out the performance appraisals. It is just not a reward and punishment exercise. Performance appraisals indicate what has been done against what should have been done. It is an audit of the performance of the people. They also enable management's to set future goals and objectives. Unfortunately, in practice the performance appraisal exercise turns out into one of reward and punishment. It should lead to a system of managing performance and to that extent the performance appraisals are a beginning and not an end

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CHAPTER 3 REVIEW OF LITERATURE Performance Management System: Most people associate performance management with performance appraisals, performance related pay, achievement of targets, motivating people and enforcing discipline. Unfortunately the above is not what performance management is all about, though they do form a fundamental part of it.

THEN WHAT IS A PERFORMANCE MANAGEMENT SYSTEM? Performance

management

system

is

a

principal

tool

in

achieving

corporate objectives in that it links those objectives with employee goals and achievements. It focuses on improving performance through matching outcomes against individual, departments and organisational objectives, and

to

the

training

and

development

needs

of

employees

at

all

organisational levels. Managers using performance management system effectively are generally more concerned with performance planning and improvement and performance assessment. Performance management system is an accepted management practice operating within organizations because it can be a valuable process for employees and employers alike. It provides for both recognition of high performance and early detection of performance that is not meeting expectations, allowing prompt remedial action to be taken. Performance management system (PMS) has to evolve from the performance appraisals. A well designed performance appraisal system 14

tells you the status of the health of an organization, but it indicates only the symptoms of any ills. It is like a medical checkup. It tells you what is right or wrong. However, it does not lead you to the cure of the organizational ills. Performance Management System has to be evolved for cure and to keep the organization healthy. Most often, we attack the symptoms rather than attacking the root cause of the problem. A properly designed performance management system helps us to take action for curing the organizational ills. PMS has to be designed in such a manner that it leads to achievement of organization's goals and objectives and at the same time it enables people to achieve their full potential, lead to job enrichment and job satisfaction. Ideally, all the peoples' functions, goals and objectives should be interlinked in such a manner that it leads to achievement of desired organizational results. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization.

Many

writers

and

consultants

are

using

the

term

“performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context Managers cite performance appraisals or annual reviews as one of their most disliked tasks. Performance management eliminates the performance appraisal or annual review as the focus and concentrates on the entire spectrum of performance management and development issues. Employee performance development, training, cross-training, the provision of challenging assignments and regular performance feedback are included in an effective performance management system.

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Definition & Focus : Performance management is about getting results. It is concerned with getting the best from people and hiring them to achieve their full potential by enabling them to recognize their roles and contributing to the goals of the organization. The focus should be on how do we improve the performance of the organization, how do we get the best out of the people, how do we help them in achieving their objectives, thereby achieving the organizational objectives. How do we relate their personal goals with the organizational goals? Is it possible to chart out a reasonable career path for performers ? How do we retain good people? How to keep the attrition rate as low as possible? How to improve the performance of average performers? What do we do with poor performers? Why are they performing poorly? Where are we? Why are we there? Who is responsible? When and what actions are to be taken? Where do we want to go? How do we get there? The above questions need to be addressed and answered and for that organizational soul searching is necessary. As a Human Resources or management professional, one of your major goals is to develop the capacity of your organization and its members to perform; you want to create a high performance organization. You lead company efforts to create a workplace in which people can develop their full potential. An effective performance management system, which line managers lead and own, guarantees you will achieve your goals.

Performance Management: Both a Process and a System Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their 16

abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term "performance management" as a substitute for the traditional appraisal system. I’d like to think of the term in this broader work system context. The goal of performance is to achieve the company mission and vision. Almost no one performs, for the organization, however, if his or her own mission and vision are not accomplished as well. As Fred Nickols, Senior Consultant with the Distance Learning Company, says, "The blunt truth is that, if they have any work objectives at all, most people set their own. This is the era of knowledge work and the knowledge worker …" Many so-called "bosses" (if That term has any utility at all) are in no position to set work objectives, to monitor their accomplishment, or to supervise their pursuit. The work, especially at the task level, is in the hands and the heads of the workers. To be sure, a manager could formulate goals and objectives having to do with improvement in work processes and the like, but if these must be left to the workers to realize, who needs the manager? An even better question is "Who needs work objectives?" An effective performance management system sets new employees up to succeed, so they can help your organization succeed. An effective performance management system provides enough guidance so people understand what is expected of them. It provides enough flexibility and wiggle room so that individual creativity and strengths are nurtured. It provides enough control so that people understand what the organization is trying to accomplish.

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Nickols summarizes, "Now, in the era of knowledge work and knowledge workers, where work is information-based and working is a mental activity, work routines are configured by the workers in response to fluid, changing requirements. The task of management in this new world of work is to enable and elicit employee contributions of value to the organization. To continue with a system designed to exact and enforce compliance is folly."

Benefits of performance management system At a macro level performance management assists organisations to match outcomes with COMPANY objectives. It provides a system for improving ORGANIZATION performance and outcomes, within the COMPANY’s OBJECTIVES and policy framework, while maintaining good industrial relations. It generates benefits throughout organisational functions and processes. Performance management system recognises that people are the organisation’s most valuable resource, and that people are the key to an innovative, professional and service-oriented public service. Performance management emphasises the relationship between the management and development of people and an effective organisation, and provides a fair and equitable environment for improving performance. Performance management SYSTEM reflects the value of people to organisational performance, including: 1. performance of individuals / departments

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2. employee skill levels / gaps if any. 3. employee position in the development plans. 4. corporate values, goals and ethical standards are clearly reflected in the performance management system; 5. Clear identification of expectations and responsibilities of individuals 6.employee allocated responsibility for ensuring improvement and performance strategies at all levels of the organisation. 7.specific expectations and responsibilities of managers, supervisors, teams and individuals for their role in the process. 8. Linking the individual’s contribution to organisational objectives 9. training and development are linked to the achievement of optimal organisational and individual performance; 10. the system is regularly reviewed, with particular attention given to key elements (eg process of reviewing individual performance; provision of helpful feedback; updating of key accountabilities, criteria and indicators; and training and development plans); 11. accountability is assigned to senior managers to ensure that performance, outcomes and training and development activities (relating to individuals, teams or units) are appropriate . 12. employee workplans contain agreed, clear and measurable performance criteria which are modified as changes occur in organisation policies, priorities or

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environment; 13. the system enables assessment of the individual’s contribution to the achievement of corporate goals; 14. transparent links exist between performance assessment and performance reward;

15. the system is clearly linked to the organisation’s strategic management framework and is not treated as an isolated function;

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PERFORMANCE LINKED PAY In today´s competitive market, the importance of retaining top performers, improving productivity and driving bottom line results requires a coordinated effort. Creating clear organizational goals, facilitating alignment with these goals and ensuring employees possess the necessary skills, are significant steps towards creating a high performance environment. This paper will outline why aligning pay with performance is so important. It will discuss steps to consider and provide a snapshot of today´s marketplace options as well as suggest strategies to overcome common obstacles for making pay for performance a success. Pay for performance is a strategic business initiative to which more and more organizations are turning to drive bottom line business value. A recent Mercer survey showed that 42% of organizations have set "improving the linkage between performance and reward" as one of their top two reward priorities for the coming year. This supports the need for a close link between employee performance management and compensation management. The need for integration is echoed from a number of sources. In Mercer´s August 2004 Perspective, it is suggested that "the primary objective of most incentive plans is to drive performance so that over the long term the value of the entity to shareholders will increase." In his book, Rewarding Excellence, Edward Lawler stresses that "...the key to using rewards as motivators is the line of sight between the behavior of individuals and their rewards...."

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An effective employee performance management solution facilitates both the cascading of organizational goals, as well as allowing employees to link individual goals to those of the corporation. Linking rewards to desired outcomes solidifies an organization´s commitment to providing individuals with a clear sense of purpose and direction. This helps avoid situations where employees are compensated for efforts that do not contribute to the organization´s bottom line. Clear job expectations attract individuals to jobs that best suit their abilities, while processes that reward high performers appropriately help support employee retention. Overcoming Common Roadblocks for Successful Pay for Performance Linking compensation and performance management processes can be quite powerful if done correctly. However, some of the consequences of poor implementation can include: misdirected effort of employees, loss of trust and resulting difficulty retaining these employees or a decrease in their motivation level. These can all contribute to lost time, money and competitive advantage. Some common roadblocks to avoid include: Lack of sound performance management processes Manager training; proper goal planning, regular feedback and communication are essential elements upon which to build. Other essential elements include a clear job description and a reliable method to measure performance. Without these elements, there is no basis for consistent evaluation. Take the necessary time to ensure these processes are sound. Poor communication without proper communication, everyone involved in the process may view a pay for performance program as threatening. Effective communication will serve to clarify expectations around what is expected of employees and managers, what level of

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performance is required and what the rewards attached to certain levels of achievement will be. In addition, it is important to ensure that individuals performing at the same level receive the same rewards. Organizations must make certain that policies are followed consistently throughout the company. Build in transparency with the necessary checks and balances. It is important to communicate what the organization hopes to gain by implementing a pay for performance system. Employees need to feel that the decision-maker is objective and knowledgeable to ensure fairness. To support pay for performance decisions, plan ahead to ensure the necessary resources are available. Summary When implementing a pay for performance system, performance management and compensation management solutions must be tightly integrated to ensure success. Integrating these processes can help drive alignment between organizational goals and individual work, provide clarity around what to reward, when to provide rewards, and why an achievement is worthy of reward. The good news is, there are options available in today´s marketplace that can help overcome some common roadblocks and allow you to implement a successful pay for performance program. By doing it successfully, you will reap the rewards of increased employee retention, identification of top performers and an overall increase in your workforce productivity.

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CHAPTER 4 PERFORMANCE MANAGEMENT SYSTEM AT COCACOLA

PERFORMANCE MANAGEMENT SYSTEM An Integrated Approach to Achieving Outstanding Performance Overview Performance Development Planning is a key element of the 'Integrated Approach to Achieving Outstanding Performance'. Just as the 'Integrated Approach' is rooted in Unilever's Corporate Purpose and Business Principles, Performance Development Planning is intended to make a significant contribution to developing a high performance organisation by equipping managers with a powerful tool to deliver and manage outstanding individual performance.

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Performance Development Planning is an integrated process which brings together three key elements: • Target Setting and Review • Personal Development • Overall Performance Assessment and Career Planning The process encompasses the Unilever Competencies and Professional Skills as the basis for building individual capability, and supports other key processes including career planning and the identification of high potential managers. Performance Development Planning also links to other elements of the ‘Integrated Approach’ such as Variable Pay and Work Levels.

Performance Development Planning is relevant for all managers, whatever their profession, location or nationality. It is designed for those of both high and moderate potential, for those starting their careers and for those nearing retirement. By using the

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Performance Development Planning process well, managers can help each other to raise performance across Unilever.

OBJECTIVES OF PDP If the employees are truly perceived as the “assets” of the Organization and not merely as a “resource” to be “deployed” and “used”, then the Employee PDPs can serve a useful purpose of improving the productivity of this asset by sharpening and enhancing the capabilities of individual employees and utilizing their potential for improved performance. In the Organizational matrix the various jobs are invariably related to and complimentary to one another. It, therefore, stands to reason that if a properly carried out appraisal exercise is expected to lead to improved individual performances then it should also result in an overall improvement in the Organizational performance. Additionally, by linking the individual objectives to the Organizational objectives and with proper management of the entire Appraisals Exercise leading to continuous employee development, it should be possible to bring about a quantum jump in the Organizational performance. If properly designed and applied the PDP system can: 1. help each employee to understand with clarity his / her role and functions. 2. be instrumental in helping the employee understand his / her own strengths and weaknesses. 3. help in identifying training and development needs of each employee. 4. help increase mutual understanding between the appraiser and the appraisee leading to healthy and productive work environment. 26

5. provide an opportunity for the employee for goal setting and self-appraisal leading to increased work involvement. 6. help the individual to identify himself / herself with the organisation, its objectives and culture leading to increased sense of belonging and commitment. 7. help identify the potential of employees for future requirements. 8. help the organisation to note, recognise and reward achievements. 9. help in the identification and analysis of problems in achieving the objectives, thus leading to finding solutions. 10.

assist in a variety of personnel / personal decisions by generating data for each employee periodically.

A good appraisal system will have as its basis clearly defined and communicated Key Result Areas (KRAs) or Key Performance Areas (KPAs) and will lead to improved Organisational Performance through improved understanding, role clarity, team work, leadership and employee satisfaction. PDP is about managing and improving performance and not about completing forms. The forms, however, serve a useful purpose of recording views and decisions which are then used to manage several processes such as deciding on rewards, working out development inputs, career moves etc. These records are only a means and not an end in themselves. It is , however, necessary that these records are created with proper understanding and with due diligence as the validity and quality of future decisions will depend on the information contained in these forms.

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THE PERFORMANCE DEVELOPMENT PLANNING PROCESS The Performance Development Planning process has been designed to be systematic but non-bureaucratic and is fully integrated with Unilever’s career development and remuneration systems. The Process follows an annual cycle, beginning and ending with a Performance Development Planning discussion consisting of four steps:-

• Target setting for the year ahead; • Building a development plan for skills and competencies; • Establishing foundations for career planning; • A review of the previous year’s targets, performance and progress against development plans.

The Company considers that individual performance and potential appraisal forms the foundation of the development process, wherein the manager reviews with the subordinate his / her work and progress, normally against defined targets and provides help and guidance. This process provides feedback; it forms a basis for counseling or coaching. It also points to training needs and it is one major determinant of salary progress.

It is our policy to document such appraisal once a year through written annual reports and reviews. This annual event serves the purpose of bringing together of a continuous process of appraisal and counseling throughout the year.

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The target setting process is a JOINT one. The objective / targets are set with a joint understanding and agreement by the manager and subordinate. The targets are drawn from the Key Result Areas of the Department / Unit. They are linked vertically (i.e., with the objectives of Managers and subordinates) and horizontally (i.e. with the objectives of peers). The agreed objectives are documented and both the manager and the subordinate retain a copy of the objectives. They are signed off by both the manager and subordinate.

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MECHANICS OF APPRAISAL WRITING

At the end of the year under review, appraisal forms are sent to the departments / units along with a circular that provides the guidelines to be followed and the time plan. The appraisal form (attachment appraisalform.doc) has SIX pages

Page 1: Work plan page Page 2: Job skill Profiling Page 3: Competency profiling Page 4: On the basis of the gaps identified in “Skill” and “Competency” areas, prepare Development Action Plan. Page 5: Overall assessment and career planning To record summary of the discussion between the Appraiser and the Appraisee,

appraisee’s own wishes for Career progress and the Unit’s

response to Appraisee’s wishes. Page 6: Nomination report

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Page 1: Work plan page: “Work Plan” is a focused list of key tasks for the year, which is planned to be done by the subordinate in the next twelve months. It will include the following: -

Important basic job requirements, which may not be fully captured by the current three priority targets

-

functional/cross functional projects,

-

objectives which will result in slightly longer term benefits,

-

team targets

A work plan will not be restricted to three key priorities. This addresses the business need for documenting more than three deliverables. The work plan is agreed jointly between the appraiser and the appraisee. It acknowledges efficiency in routine work. It acknowledges that each one of these “deliverables” could be important in isolation/ or taken together with other deliverables. It acknowledges that there could be work priorities that need not stretch to a whole year or a significant part thereof but is of significant importance to the delivery in the job. As and when the business priorities change, the Work Plan must be modified and updated, based on the agreed priorities between the manager and the subordinate, to ensure that there is ongoing clarity on the priority at all the times during the year. At the end of every year, the manager will use the Work Plan in writing the subordinates Summary of Performance. Thus the review of the Work Plan will form a significant portion of the subordinates Summary of Performance for the Assessment year and shall play a significant role in determining the performance rating of a subordinate. Workplan Rating Based on what subordinates have achieved, as captured in the Work Plan, the manager will rate every subordinate as PLUS (+) or MINUS (-) or EQUAL TO (=) or N (Not Met)

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•

For his Delivery against each of the workplan items (tasks) Plus = Exceeding on that particular work plan item Equal To = Meeting Expectations on the particular work plan item Minus = A significant part of the work plan item delivered, small gaps remain N = Significant/ Large gap exists between Delivery and Expectations on the work plan item

•

AND, For overall delivery on the total workplan, called “Workplan Rating” Plus = Exceeding or Delivering Fully on all aspects/ items of the work plan Equal To = Meeting Expectations and largely delivering on the work plan Minus = Inconsistent in meeting delivery expectations. N = Significantly Large Gaps on majority of items

Maximum 10 work plans per employee are made in the beginning of the year . The format is : Strategic action

Activities

KPI

Targets

Milestones

Achievement

rating Eg. Recruitment

+