B K BHATIA
Director Of Company
Assistant Human Resource Manager
PEPERFORMANCE MANAGEMENT POLICY
Decisions concerning career development, promotion, succession planning and compensation depend on information provided through effective Performance Management. Pioneer Food Cannery Ltd shall therefore ensure that all employees understand the requirements of their jobs as well as the expected results. The actual assessment of how well they have done will be undertaken annually through a comprehensive appraisal of their performance in relation to their expectations.
By so doing, top performers are identified with ease which ensures the company to leverage employees to the best of their ability, acquiring the right person, at the right time, in the right place at the right price.
This policy helps employees to lead, create and deploy talent and resources to achieve strategic aims and a quality performance management system.
The purpose of this management framework is to provide a clear, coherent, fair and equitable framework for managers to use throughout any phase of the performance management process. It also makes explicit the policies to be used in support of achieving desired outcomes for both employees and the entire section to which they belong.
3 SCOPE OF APPLICATION
This policy shall apply to all levels and categories of employees, except where explicitly stated.
4 PERFORMANCE APPRAISAL PROCEDURE
The appraisal procedure will be undertaken to:
· Review employee performance against assigned tasks and responsibility
· Identify areas of strengths that need to be built on and weaknesses that need to overcome/addressed and most importantly unearth potential that must be developed.
· Identify Training Needs of employees
· Create a basis for rewarding superior performance
· Plan for the following year.
Performance ratings represent a summary of the overall performance against key targets, which will confirm that there had been a fair assessment based on the available data.
The criteria for assessing performance is defined in the diagram below:
Range Merit Increase (%)
4 - 5
3 - 3.9
2 - 2.9
5 GENERAL PRINCIPLES
· For the Performance Management to function effectively, all elements of this process must cohere. The inter-linking feature throughout each of these processes shall be the Employee Development Plan (EDP), as set out in the appendix. The EDP shall form a basis of discussion between the Line Manager and the employee.
· The Company shall regard its obligations and those of its employees as being governed by the following principles:
o It shall engage people with skills, knowledge, abilities, professional credentials and values that are congruent with those of the Company.
o It shall manage employees respectfully through processes that are procedurally fair, transparent and encourage flexible response in the work environment. It shall develop employees’ capabilities to reach targets and goals of the Company.
o It shall provide honest, evidence-based feedback to enable monitoring and adjustment of the performance.
o It shall preserve confidentiality during the whole process and disseminate formal reports to only employees’ line managers and where appropriate, the Human Resource Department.
6 FAIR REWARD SYSTEM
· Even though all employees receive salaries commensurate with expected standard of performance, additional remunerative rewards must be offered to employees in return for specific performance. The system shall link rewards more clearly with employees’ achievements,
· Rewards may be remunerative and non-remunerative:
o remunerative rewards may take the form of promotion, payment of advanced or discretionary increment.
o non-remunerative rewards which may include flexible working arrangements and support for one’s academic or professional development in the form of sabbatical leave, study leave etc.
o All rewards whether financial or non-financial in nature, shall carry resource implications and as such, the level of rewards shall be based on the principle of affordability. The nature and type of rewards by the Company shall be reviewed from time to time.
o A key feature of this framework shall provide an explicit link between performance and rewards and shall be designed to ensure that the arrangements for managing pay are clear, transparent and objective.
7 THE PERFORMANCE MANAGEMENT CYCLE
The Performance Management is a process and cyclical in nature, consisting of four critical phases, namely monitoring, coaching, supporting and recognizing employee performance.
i. Monitoring - the performance management policy will be reviewed every two (2) years to assess its effectiveness. Equity and parity of treatment shall be demonstrated by regular reports, detailing rewards, where relevant information is made available. Transparency and fairness shall be monitored and action taken where issues emerge.
ii. Coaching - work is interesting and challenging when employees are informed about organizational goals. Recognition shall be given for good performance as well as opportunities for professional development. By employing effective coaching skills, managers shall apply skills like informing, listening, observing and giving constructive feedback.
iii. Supporting - the company shall focus on developing employees to meet their full potential. It shall record the development needs of each employee. The aims and objectives of the company shall be aligned to the development needs of each employee, thereby achieving both employee and organizational goals.
iv. Recognition - the company shall acknowledge and reward an employee for good performance. This shall be done in the form of appreciation, institution of an award system, promotion as well as opportunities for professional development.
The following stages shall be adopted during the Performance Management Cycle:
a) Review of Previous Year’s Performance - The period for such discussions should be concluded by the end of April. Where the manager and the subordinate shall discuss progress so far made during the year. The manager shall provide constructive feedback, ensuring an open thoughtfulness, supportive and sometimes challenging discussions; recognise progress made and organizational constraints. The manager shall be clear about whether objectives and expectations are met, training needs of the employee shall also be addressed and the outcome of these discussions shall recorded in the Performance Review Form as per the appendix and shall be directly linked to reward.
b) Setting Business and Individual Goals - The period for setting goals/objectives of both the business and the individual should be concluded by the end of May, during which corporate objectives shall be aligned to employee’s work schedule. Contributions that are necessary to made by the employee to the fulfilment of his/her job specification and those of the company shall be discussed. In all cases, these objectives shall be specific, measurable, attainable, realistic and timely (SMART).
c) Mid Year Review – At this stage of the Performance Management Cycle, shortfalls are identified and proposals made for appropriate support, aspects of performance where there are shortfalls in meeting agreed objectives shall be addressed, the employee shall be given the appropriate support if the need arise and this shall be carried out during the period of September.
d) Finalising Personal Development Plans - This stage of the Performance Management Cycle deals with the employee’s current job and future aspirations. Important at this level is the employee’s own wishes regarding future training and development needs as well as plans for career development. This process and shall take effect in the month of October.
8PERFORMANCE MANAGEMENT CYCLE
Timeline of events
Review of Previous Year’s Performance End of April
Set Individual and Business Goals End of May
Mid year review September
Finalise Personal Development Plan October
19th May 2008
20th May 2008 From India, Ghaziabad
20th May 2008 From India, Hyderabad
Kindly send me a performance apprisal format to evaluate the performance of Skilled and Unskilled workforce, particulary for Automobile Industry.
The apprisal forms can be recently using tested the Auotmobile Industry or it can be a general one.
Awaiting for response.
24th May 2008 From United Arab Emirates, Abu Dhabi
While designing a 'Performance Appraisal' system, check the following:
1. How would it help me in extracting relevant details to plan development of skills & competencies, promotions/ growth?
2. Does it include performance evaluation based on goals assigned to an employee?
3. Are individual goals aligned to the departmental/ functional goals?
4. Can you periodically track employee's achievement against the goals assigned or merely do a post-mortem of performance at the end of the year?
4. Have you thought of performance linked remuneration in future, even if it does not form part of your current HR processes?
5. How will you track that the appraisals are completed in time?
6. Have you thought of an e-Appraisal system? Why not?
There are many other aspects which need to be examined. But the basic Question which you can't overlook is "What outputs will this system generate for the management & how would you generate the same?"
For some more guidance you may do Google search for 'EmpXtrack' system.
B K Bhatia
26th May 2008 From India, Delhi