PERFORMANCE MANAGEMENT

SYSTEM

BY : RUKHSANA ASGHAR
 “SPECIFY THE TARGET AND
JUDGE THE FLIGHT OF EVERY ARROW”

“WHAT GETS MEASURED GETS

MANAGED”
 What do some of the top companies in the
world, members of the Fortune 500 club such
as GE, Microsoft, Citigroup, Boeing, General
Dynamics, and Raytheon and others have in
common?
 What sets them apart from ordinary
organizations?
 They all have Performance Management
Systems that actually WORK!
 DEFINITION OF PERFORMANCE MANAGEMENT
 Performance management can be defined as

“a strategic and integrated approach to

delivering sustained success to organizations
by

(1) improving the performance of the people

who work in them

(2) developing the capabilities of teams and

individual contributors”.

Armstrong and Baron

 PERFORMANCE MANAGEMENT

Performance Management is a means of

getting better results from the organization,
teams and individuals by understanding and
managing performance within an agreed
framework of planned goals, standards and
competence requirements
 WHAT IS PERFORMANCE MANAGEMENT
 It is a continuous and systematic process of
communication between managers and
employees.
 A process for establishing a mutual
understanding of:
 What is to be achieved ?
 How to achieve it ?
 It is an approach to people management that
increases the probability of success
 WHAT IS PERFORMANCE MANAGEMENT
A PROCESS
 Performance Management is not about a set of
forms, or the ritual of the semi-annual /annual
appraisal
 It is about everyday actions and behaviors
people use to improve performance in
themselves and others
 WHAT IS PERFORMANCE MANAGEMENT
A MUTUAL UNDERSTANDING
 To improve performance, individuals need to
understand
 what is considered good performance and
 what success in their job looks like
 Goals need to be defined clearly so that all
concerned know
 what they are working toward and
 how success or failure will be determined
 WHAT IS PERFORMANCE MANAGEMENT
AN APPROACH TO PEOPLE MANAGMENT
 The focus of performance management is on
people; how individuals and teams work
together to achieve shared aims

 It puts responsibility on the manager to work

effectively with his people by positive
reinforcement through communicating,
coaching and motivating
 WHAT IS PERFORMANCE MANAGEMENT
INCREASES PROBABILITY OF SUCCESS
 Performance Management is about achieving
success for individuals and for the
organization

 It is a continuous management process that

delivers clarity, support, feedback and
recognition
 BASICS OF PERFORMANCE MANAGEMENT
The basics of performance management can be
summarized as follows
 It helps to clarify corporate goals
 It translates corporate goals into individual,
team, department and divisional goals
 It’s a continuous and evolutionary process, in
which performance improves over time
 It relies on consensus and co-operation rather
than control or coercion
 BASICS OF PERFORMANCE MANAGEMENT
 It encourages self management of individual
performance
 It requires a management style that is open and
honest and encourages two way
communication between superiors and
subordinates
 It measures and assesses all performance
against jointly agreed goals
 It also links performance to financial reward
 IMPORTANCE OF PERFORMANCE MANAGEMENT
 Performance management system has
different benefits for:
 the organization
 the managers
 the employees
 IMPORTANCE OF PERFORMANCE MANAGEMENT
ORGANIZATION
 Links organizational strategy to results
 Communicates organization & department
goals
 Helps in creating a transparent and merit
based organization
 Improves organization productivity
 Is the basis for HR decisions: promotions,
career development, succession planning,
honorarium, perks/benefits, etc.
 Identifies weak / marginal performers
 IMPORTANCE OF PERFORMANCE MANAGEMENT
MANAGERS
 Provides the basis for giving the staff member
performance feedback
 Helps improve rapport and communication
with subordinates
 Helps to identify problem areas within
individual departments, teams and other units
 Builds stronger working relationships
 Aids in fulfilling managerial responsibilities
 IMPORTANCE OF PERFORMANCE MANAGEMENT
EMPLOYEES
 Helps the employee to set goals and improve
performance
 Recognizes the employee’s accomplishments and
helps reward and motivate the employee
 Employees get a chance to communicate their
career goals & ask about opportunities for career
development
 Employees become aware of their areas of
development
 Identifies the employee’s general training needs
APPRAISAL FORM
MIDTERM REVIEW NOTE
 ANNUAL APPRAISALS-OER’s
 Organizations have traditionally relied on
confidential annual reports to evaluate employees
 They are a one time exercise limited to
subjectively evaluating the employees past year’s
performance
 Appraisal systems are:
 Typically based on a review of how a person
completed their job for the prior year
 An assessment of the employee for promotion
 A salary or a bonus review
 ANNUAL APPRAISALS
NO LINK TO ORGANIZATIONAL PERFORMANCE
 There are typically no objectives / goals or
targets in the appraisal system
 Therefore they have no link to strategic or
operational outcomes of the organization
 For e.g. if the department’s objective is to reduce
R&D time by 10%, then the employees may have
been told about it but in a traditional appraisal
since they are not measured on this objective
there is no urgency for them to deliver on this
target
 ANNUAL APPRAISALS
NO LINK TO ORGANIZATIONAL PERFORMANCE
 There is no linkage of this goal in the appraisal
and no linkage at a team or department level
 Employees and managers may receive
favorable reviews & bonuses, yet the
organization may not be achieving its goals
and may be losing money
 ANNUAL APPRAISALS
LACK OF TRANSPARENCY
 Traditional appraisals are not objective since
they are not based on predefined goals or
competencies
 They make use of subjective standards & criteria
 They therefore lack uniformity in evaluation
criteria
 ANNUAL APPRAISALS
INCORRECT FOCUS
 Appraisal focuses on evaluating employees
instead of managing or improving their and the
organizations performance
 They do not deal with the development of the
employee
 The employee’s involvement is limited to being
informed only on negative comments if any
 This lack of participation eliminates the chance
of a self improvement initiative by the employee
 PERFORMANCE MANAGEMENT vs. APPRAISALS
 Performance Management System, on the other
hand is a continuous & systematic method of
employee development based on a two way
communication

 The aim is to
 develop and extract better performance from
the employee
 to continuously upgrade and improve upon
the organizational performance
 PERFORMANCE MANAGEMENT vs. APPRAISALS
 This is done by understanding and managing the
performance of its individuals

 The strategy is to operate within a pre-defined

framework of planned goals, standards &
competence requirements, arrived at via
discussion & agreement between the
management and employees
 N.D.C’s PERFORMANCE MANAGEMENT SYSTEM
N.D.C’s Performance Management System is
designed to achieve the following:
 Plan goals and set standards and expectations
 Continuously coach employees for better
performance
 Objectively appraise performance against set
standards to identify performers and non-
performers
 Take action i.e. reward performers and develop
the non-performers
N.D.C’s PERFORMANCE MANAGEMENT SYSTEM
PLAN

COACH

APPRAISE

ACT
 WHY PLANNING
 Once upon a time there was a work unit with four
members named Everybody, Somebody, Anybody,
and Nobody.
 There was an important job to be done, and
Everybody was sure that Somebody would do it.
 Anybody could have done it, but Nobody did it.
 Somebody got angry about that because it was
Everybody’s job.
 Everybody thought Anybody could do it, but
Nobody realized that Everybody wouldn’t do it.
 It ended up that…
 WHY PLANNING

Everybody blamed
somebody when nobody did
what anybody could have
done.
 WHY PLANNING
Planning will help to ensure that:
 N.D.C sets clear goals and targets for
achievement
 The resource and equipment constraints are
identified
 Problem areas are identified and there
solutions arrived at quickly
 Goals and targets set are achieved
 PLANNING
 There are two aspects of planning that need
to be addressed:

1. WHAT
2. HOW
 PLANNING
 The ‘WHAT’ aspect is achieved through goals

 These constitute the targets or objectives that

the organization plans to achieve through its
employees, at the beginning of the review
period

 The ‘HOW’ is achieved through competencies

 These constitute the observable behaviors of

employees which help in achieving goals
 PLANNING
 To improve performance, individuals need to
understand what is considered ‘good
performance’ by the organization

 Goals need to be defined clearly so that all

concerned know what they are working
towards and how success or failure will be
determined
 GOAL PLANNING
 The most important aspect of planning is the
goal setting which includes:
 Aligning departmental and individual goals
with overall organizational objectives
 Formulating and communicating SMART
goals to employees
 Ensuring that goals are stretched yet
achievable
 Providing the resources required and
understanding the constraints involved
 GOAL PLANNING
 Understanding the differences between a goal
and a “SMART goal” is the key to developing
an effective performance management system

 Goals are broad, brief statements of intent that

provide a focus or vision

 If they are non-specific, non-measurable, they

cannot be attained. Below is a typical goal:
“Pakistani children must be educated ”
 GOAL DEVELOPMENT
SMART goals are built around 5 leading measures
Specific: Each goal should be clear, challenging
unambiguous, straightforward, & understandable
Measurable: Each goal must be measurable
Attainable: Goals should be realistic i.e. they should
not be impossible to achieve yet be stretched
Relevant: Goals should be relevant to the overall
objectives of the organization
Time Bound: Each goal should have a predefined
timeline for achievement within an agreed time
scales
 GOAL DEVELOPMENT
SPECIFIC
 What exactly are we (organization) going to do

 With whom or for whom are we going to do it?

 A specific outcome, or a precise goal to be

accomplished MUST be clearly stated and
defined
 GOAL DEVELOPMENT
MEASURABLE
 Is it measurable
 Does the goal capture the essence of what is
to be achieved
 All activities constituting the goal must be
measurable at some level
 The outcome must be stated in quantity and/or
quality measures e.g. numbers, percentages,
standards, etc
 GOAL DEVELOPMENT
ATTAINABLE
 The goal or expectation of what must be
accomplished should be achievable given the
market condition, available time & resources etc
 Ask yourselves the following questions
 Can we get it done in the proposed timeframe?
 Can we get it done with the available
resources?
 Can we get it done within the allocated budget?
 GOAL DEVELOPMENT
RELEVANT
 Will this goal lead to the desired results?
 This means that the outcome or results of the
program directly supports the outcome of
NDC’S short and long term plans or goals
 GOAL DEVELOPMENT
TIME BOUND
 When will we accomplish this goal?
 Stating clearly when the goal will be achieved
 A specific deadline or timeframe will keep
projects and programs within the specified
parameters
 GOAL DEVELOPMENT
 The SMART format helps managers set realistic
targets for projects, assignments and programs
etc
 They effectively guide managers in writing
clearly defined goals so that:
 the managers can focus their programs and
projects on what matters most
 employees know what they are working
toward
 employees know how success or failure will
be determined
 GOAL DEVELOPMENT
 SMART goals should be written in active tense
 They should use strong verbs like
 write
 conduct
 produce
 deliver
 Rather than
 learn
 understand
 feel
 GOAL DEVELOPMENT
 Any generic goal can be converted into a
SMART goal by following the format below
“WHO is going to do WHAT, WHEN, and TO
WHAT STANDARD?”
In other words…
 What is to be done?
 Who is going to do it?
 By when?
 To what standard?
 GOAL DEVELOPMENT
 Convert the following goal into a SMART goal
“Pakistani children must be educated ”
 One version could be…

“The Federal Education Ministry will ensure that by

the end of year 2010, 80% of Pakistani children
below the age of 12 receive primary level
education (as defined by the Cambridge board )”

 Does this follow the format outlined before?

 GOAL DEVELOPMENT
 What is to be done?
80% of Pakistani children below the age of 12
need to be given primary level education
 Who is going to do it?
The Federal Education Ministry
 By when?
by the end of 2010
 To what standard?
as defined by the Cambridge board
 GOAL DEVELOPMENT
Convert the following goals into SMART goals

“Improve presentation skills of R & D staff”

“Control departmental expenses for better

utilization of resources”
 GOAL DEVELOPMENT
“Improve presentation skills of R & D staff”
 What is to be done?
R & D staff need to be trained in effective
presentation skills
 Who is going to do it?
Training Department
 By when?
2 months
 To what standard?
Able to make independent presentations
 GOAL DEVELOPMENT
“Improve presentation skills of R & D staff”

becomes…

“The training department must ensure that in 2

months all staff members from the R & D
department are given training in effective
presentation skills to bring their skills up to
par in delivering independent presentations.”
 GOAL DEVELOPMENT
“Control departmental expenses for better
utilization of resources”
 What is to be done?
Departmental expenses throughout the
organization need to be controlled
 Who is going to do it?
Department Heads
 By when?
Within one quarter
 To what standard?
5% over last year
 GOAL DEVELOPMENT
“Control expenses for better utilization of
resources”

becomes…

“Department Heads must ensure 5 % reduction

in expenses over last year’s expenses of their
respective departments within one quarter”
 EXERCISE ONE
GOAL WRITING

NDC’S GOALS TO BE MADE SMART

HANDOUTS
 COMPETENCIES
 This constitutes the HOW part of the results
 Competencies can be described as
“observable behaviors which help in achieving
goals”
 People working in different roles and grades
have different competencies and are expected
to demonstrate behavior against these
competencies
 COMPETENCIES
WHAT ARE COMPETENCIES?
 They are underlying characteristics which

 enable employees to perform a job better

 in a variety of situations

 A tool for development and assessment of

performance
 Applicable to everyone in the organization
 All competencies can be assessed
 BENEFITS OF COMPETENCY MODEL
 Identifies the key factors which lead to
superior performance in the organization
 Provides a fairer, more objective and
consistent basis for making judgments about
people
 Communicates clearly to job holders how they
must perform in their jobs to become superior
performers
 N.D.C’s COMPETENCIES
 SPS 8 & 9 and SPS 10 and above officers are
required to possess different competencies to
perform their jobs
 N.D.C’s Performance Management System has
defined two sets of competencies for
 SPS 8 & 9 officers and
 SPS 10 and above officers
 The competencies in each section are grouped
into clusters (for better organization)
 N.D.C’s COMPETENCY CLUSTERS
SPS 10
AND ABOVE LEADERSHIP
SKILLS
SPS 8 & 9

PERSONAL
PROFESSIONAL SKILLS QUALITIES/
NDC CHARACTERISTICS
COMPETENCY
MODEL

PERSONAL
QUALITIES / PROFESSIONAL SKILLS
CHARACTERISTICS
 N.D.C’s COMPETENCIES: SPS 8 & 9
PROFESSIONAL SKILLS
These are the skills which help employees
perform their jobs better

 ACHIEVEMENT ORIENTATION
 INTERPERSONAL SKILLS AND TEAMWORK
 ABILITY TO WORK UNDER STRESS
 PROBLEM SOLVING SKILLS
 COMMUNICATION SKILLS
 N.D.C’s COMPETENCIES: SPS 8 & 9
PERSONAL QUALITIES / CHARACHTERISTICS
These are qualities which are deemed
necessary for employees to perform well in
their jobs

 ATTITUDE OR APPROACH TO WORK

 CREATIVITY
 ETHICS AND REGULATORY COMPLIANCE
 GROOMING AND APPEARANCE
 LEADERSHIP SKILLS
 N.D.C’s COMPETENCIES: SPS 10 & ABOVE
PROFESSIONAL SKILLS
These are the skills which help employees
perform their jobs better

 ACHIEVEMENT ORIENTATION
 PROBLEM SOLVING
 PLANNING AND ORGANIZING SKILLS
 COMMUNICATION SKILLS
 N.D.C’s COMPETENCIES: SPS 10 & ABOVE
LEADERSHIP SKILLS
These are abilities to move or influence others
towards achieving individual or group goals

 DECISION MAKING SKILLS

 STRATEGIC SKILLS
 DELEGATION AND DEVELOPMENT OF SUBORDINATES
 ADAPTABILITY
 CONFLICT MANAGEMENT SKILLS
 N.D.C’s COMPETENCIES: SPS 10 & ABOVE
PERSONAL QUALITIES / CHARACHTERISTICS
These are qualities which are deemed
necessary for employees to perform well in
their jobs

 ATTITUDE OR APPROACH TO WORK

 CREDIBILITY AND ROLE MODELING
 SELF CONFIDENCE AND PROFESSIONAL IMAGE
N.D.C’s PERFORMANCE MANAGEMENT SYSTEM
PLAN

COACH

APPRAISE

ACT
 COACHING
 Coaching is the art of improving the
performance of others through encouragement
and persuasion
 It is a continuous process of monitoring,
assessment and communication between
managers & employees
 The primary aim is to enable managers to
provide employees with constructive job
performance feedback so as to…
 affect individual performance by encouraging
(or discouraging) specific behaviors
 COACHING
 provide a context through which to guide
future performance
 give employees an opportunity to express
their needs, concerns, expectations
 enhance employees’ motivation and
commitment
 review & re-focuses employee and manager
efforts
 offer the opportunity to make modifications
to job requirements or goals according to
organizational needs
 WHY COACHING ?
 Numerous studies have identified a lack of
coaching skills as the number 1 reason for the
failure of most performance management
systems
 Development Dimensions International, a
Pittsburgh-based consulting firm, surveyed
1,149 people at 79 companies
 They found that the overall satisfaction of
employees and managers with coaching and
feedback was extremely low
 WHY COACHING ?
 Consequently, the effectiveness of the
performance management system itself was
given a low rating of 2.9 on a scale of 1 – 5.
 A 1994 study conducted by the University of
Missouri found that, managers were rated
lowest on their ability to give employees useful
feedback on job performance
 WHY COACHING ?
 A study of U.S. and European companies
conducted by the Conference Board identified
poor or insufficient job performance feedback
(a critical part of coaching) as the number one
cause of individual employee performance
problems in 60 percent of the companies
surveyed
 WHY COACHING ?
 Organizations gain many advantages from
coaching if it is done correctly
 They can save money by decreasing the time
spent on easily correctable mistakes
 Organizations can also significantly reduce or
eliminate aggravation that results from failed
attempts and unclear directions
 If employee performance is less than
acceptable then coaching can steer them in the
right direction
 Good performance can be improved further
 WHEN SHOULD COACHING OCCUR
 Take another look at N.D.C’s
Performance Mgmt System
 Planning occurs at the
start of the review
period
 Appraisal & action
occur at the end
 Coaching however
occurs throughout the
review period
 WHEN SHOULD COACHING OCCUR
 It is therefore the longest phase in the
performance management system
 As such there is no distinct point at which
coaching starts or ends
 It begins before an employee even develops a
problem or a bad habit
 WHEN SHOULD COACHING OCCUR
 In context of performance management
systems, it should start as soon as the
planning phase ends

WHY???
 Because by the end of the planning phase, the
work expectations have been properly worked
out and communicated to the employees
 They now need to be coached and guided to
achieve the targets
 COACHING
For N.D.C managers, coaching must be done
with CARE

Check performance continuously during

review period
Analyze employee behavior & progress
towards goals
Review overall performance with the
employee
Encourage by providing constructive feedback
 COACHING
CHECK
 Keeping a continuous check on performance is a
basic managerial activity
 The manager must keep checking to ensure that
the employee is progressing towards his / her set
goals
 The manager may use daily worksheets or other
forms of work documentation to check
 individual employee progress
 gaps in said progress
 employees’ work rate and methodology
 COACHING
ANALYZE
 Coaching is primarily meant to alter behavior
 The manager must continuously analyze
whether an employee’s behavior is positive or
not
 The analysis should be based on concrete
instances & personal observation rather than
rumors or hearsay
 N.D.C managers need to maintain records of
employee behavior on regular basis
 COACHING
ANALYZE
 The records should be used to note down
specific instances of positive or negative
behavior, outstanding work, etc
 These records will provide specific examples
to use when the manager gives feedback to the
employee
 The managers objective during ‘Checking’ and
‘Analysis’ is to prepare a list of points to
discuss with the individual employees during
the ‘Review’
 COACHING
REVIEW
 The supervisor will hold one formal, one-on-one
‘Mid-term Review’ with individual employee
 These will take place at the midpoint of the
performance cycle
 The supervisor will fill out the ‘Mid-term
Performance Review Note’ listing down the
 employee’s strengths and development needs
 employee’s comments regarding the midterm
review itself (methodology, assessment,
suggestions etc)
 COACHING
REVIEW
 The aim of the mid-term review is to
 Identify strengths and development needs
 Adjust employee behavior
 Make the employee realize where they stand
in terms of goals achievement
 This is because employees often do not realize
 whether their behavior in a given situation
was correct (or not)
 how close or far they are in achieving their
goals
 COACHING
REVIEW
 The review meeting must be held formally in a
quite and private environment e.g. manager’s
office, meeting room, etc
 The important points to remember are that
 The manager should not conduct the meeting in
a confrontational or lecturing manner
 The employees should not feel intimidated
 Rather an atmosphere must be created whereby
the employees look forward to the reviews as
opportunities for self improvement
 COACHING
REVIEW
 As stated before, employees often do not realize
 that their behavior in a particular situation was
correct (or not)
 how close or far they are in achieving their
goals
 You should NOT tell them outright how they
should have behaved or where they stand with
respect to goals
 COACHING
REVIEW
 Instead you must focus on making the
employees realize both these things for
themselves
 The best way to do this is to ask the right
questions & discuss specific instances &
situations using the behavior records
 This ‘discussion’ gives the employee a fair
chance to explain his /her point of view
 If done correctly it gives managers a chance to
give constructive feedback while increasing
rapport and interactivity with the employee
 COACHING
REVIEW
 Throughout the review meeting, you will focus
on questioning and listening as a method of
guiding the employee to the correct answers
 Ask open ended questions, listen to the
response
 If the response is correct then …
 give a confirmation e.g. “O.K” or “Alright”
 move to the next discussion point
 COACHING
REVIEW
 DONOT give opinions or suggestions until you
have guided the employee towards the correct
answer
 Only then should you offer specific advice and
direction regarding the solutions arrived at
 This will give the employee a feeling of having
arrived at the correct answer him / herself
 This method ensures that the employee takes
ownership of and commitment to the solution
 COACHING
REVIEW
 The manager may then highlight the correct
decisions and behaviors exhibited by the
employee
 Most importantly the manager and the employee
must agree on a plan of action for improvement
 Milestones may be set and the plan of action
revisited in the near future
 The key is to make sure that both the manager
and the employee have the same idea on what
the end result should look like
 COACHING
ENCOURAGE
 Encouragement is not a one time activity
 It is critical that the managers offer continuous
encouragement to the employees throughout
the review period
 Employees that are encouraged and praised in
front of their colleagues, when they least
expect it, always display more commitment
and efficiency
 COACHING
ENCOURAGE
 NEVER chastise an employee in front of his or
her colleagues
 It has a devastating impact on his / her
standing with colleagues and therefore his /her
confidence
 CHARACTERISTICS OF AN EFFECTIVE COACH

READINESS TO LISTEN
ABILITY TO INTEREST IN PEOPLE
PRIORITIZE

HIGH BELIEF IN PEOPLE’S

EXPECTATIONS POTENTIAL
 CHARACTERISTICS OF AN EFFECTIVE COACH

" An effective coach is someone who

helps employees hear what they don't
want to hear,
who helps them see what they don't want
to see,
in order that they can be what they have
always known they could be."
 COACHING BEST PRACTICES
CLARITY
 Be as clear as possible
 Ask your employees if they feel that you have
been clear
 Make sure that they know and understand your
reasoning regarding the feedback they get
 COACHING BEST PRACTICES
FOCUS
 Focus on the employees performance NOT on
his / her personality
 Don’t let personal feelings or biases get in the
way of an honest analysis.
 Make sure your feedback is descriptive and not
judgmental
 COACHING BEST PRACTICES
TIMING
 Feedback is
 most accurate
 most valid
 most accepted

when it is done as close as possible to when the

event occurred
 This applies to both positive and negative
feedback
 COACHING BEST PRACTICES
TIMING
 However, you may delay the feedback if
 There is insufficient information or
 You are NOT ready with the relevant
information
N.D.C’s PERFORMANCE MANAGEMENT SYSTEM
PLAN

COACH

APPRAISE

ACT
 COMMONLY ASKED QUESTIONS
Employees being appraised typically ask the
following questions
 What am I expected to achieve in my job and
how will success be judged?
 How am I doing?
 How are we doing (relative to competitors)?
 Where do I stand?
 Where am I going?
 What do I need to work on?
 APPRAISAL
 A fair and objective performance appraisal
setup will form the core of NDC’s Performance
Evaluation Planning
WHAT IS AN OBJECTIVE APPRAISAL?
 An appraisal is objective if…
 it
is not influenced by the appraiser’s
emotions or personal prejudices
 it
is based on facts and observable
phenomena rather than gossip or hearsay
 ifthe facts and observations are presented
fairly and with specific examples/instances
 APPRAISAL
 Performance appraisal is the process of:
 objectivelyevaluating the job performance
of employees when compared to the
standards set earlier
 identifying
individual employee strengths
and weaknesses
 providing
constructive feedback to the
employees to improve their performance
 PURPOSE OF APPRAISAL
Performance appraisals are used for the
following purposes:
 Providing basis of feedback on employee’s
performance
 Planning goals for job performance with
employee
 Determining training and development needs
 Identifying promotion potential
 Identifying employee skills and abilities
 IMPORTANCE OF APPRAISALS
Performance appraisals are important for the
following purposes:

 EVALUATION

 COMMUNICATION

 MOTIVATION

 DECISIONS
 IMPORTANCE OF APPRAISALS
EVALUATION
 Appraisals provide an opportunity to measure
the current performance of employees in
comparison to
(1) the goals set for the current period
(2) the employees past performance
 The manager analyses the employee’s current
strengths and weaknesses in comparison to
the previous review and measures the
progress
 IMPORTANCE OF APPRAISALS
EVALUATION
 The manager then
 discusses and sets new goals and
objectives for the next period and
 determines where further training is required
for the employees’ development and
performance improvement
 This provides the employee with a fresh set of
goals and objectives which, in effect, provides
direction to the individual and the organization
 IMPORTANCE OF APPRAISALS
COMMUNICATION
 Performance appraisals establish formal lines
of communication between the employee and
the manager throughout the year
 This line of communication is not limited to
performance appraisals and can help improve
overall communication between the manager
and employees
 IMPORTANCE OF APPRAISALS
MOTIVATION
 Performance appraisal provides employees with
a sense of recognition
a feeling that their work and contributions are
seen and valued
A sense that the organization cares for their
development needs
 It therefore stimulates a sense of achievement
and a desire for the employees to perform better
 IMPORTANCE OF APPRAISALS
DECISIONS
 Appraisals act as documentation of employee
performance
 They therefore form the basis of human
resource decisions
 Providing basis of feedback on employee’s
performance
 Planning goals for job performance with
employee
 IMPORTANCE OF APPRAISALS
DECISIONS
 Determining training and development needs
 Identifying promotion potential
 Identifying employees with skills and abilities
 Compensation and rewards e.g. bonuses,
promotions, and honorarium.
 ROLE OF SUPERVISOR
 N.D.C’s Performance management system uses
‘Supervisory Appraisals’ as the method of
performance evaluation
 N.D.C’s managers MUST maintain logs to record
their sub-ordinates performance
 These logs will provide specific examples to use
when rating performance
 However, a managers bias towards or against an
employee can reduce the appraisal’s objectivity
 CONDUCTING A REVIEW MEETING
 Provide a comfortable and non interrupted
environment for the review
 Encourage the appraise to do most of the
talking
 Listen actively to what they say
 Analyze performance, not personality-
concentrate on what the employee has done
and not on the sort of person he/she is
 CONDUCTING A REVIEW MEETING
 Keep the whole period in mind under review, not
concentrating on isolated or recent events
 Adopt a ‘no surprises’ approach
 Performance problems should have been
identified throughout the review period and dealt
with at the time they occurred
 Recognize achievements & reinforce strengths
 End the meeting positively with agreed action
plans and an understanding of how progress in
implementing them will be reviewed
 APPRAISAL PROBLEMS AND ERRORS
 Managers often make certain common errors
when writing performance appraisals
 These errors cause inaccuracies in the
appraisal process
 Fair and transparent appraisals are the heart of
any Performance Management System
 Logs maintained need to be referred to before
beginning this session
 APPRAISAL PROBLEMS AND ERRORS
 Without fairness and accuracy, the entire
system is ineffective
 Being aware of these errors can keep
managers from unconsciously committing
them and therefore keeps the appraisals fair
and accurate
 APPRAISAL PROBLEMS AND ERRORS
 Failure to get information from other sources

The better your sources of information on

performance the greater your ability to make
informed decisions

 Failure to prepare for the discussion

Start preparation and organization at least two

weeks in advance.
 APPRAISAL PROBLEMS AND ERRORS
 Failure to be open, candid and specific

Employees don’t want things sugar coated. Tell

it like it is, as long as you are willing to provide
assistance to help improve employee’s
performance
 APPRAISAL PROBLEMS AND ERRORS
HALO EFFECT

PITCHFORK/RECENCY EFFECT

COMPARING EFFECT

STEROTYPING EFFECT

MIRRORING EFFECT

VILLAIN EFFECT

LENIENT OR HARSH EFFECT

 APPRAISAL PROBLEMS AND ERRORS
HALO EFFECT
 The “halo effect” is the tendency to rate the
employees on several or all performance
measures based on the overall impression of
their work
 This avoids or ignores problem areas that need
attention
 Continuous documentation over the course of
the evaluation period can assist the supervisor
in avoiding this mistake
 APPRAISAL PROBLEMS AND ERRORS
PITCHFORK / RECENCY EFFECT
 The “pitchfork effect” is the tendency to rate
the employee based on a recent event, either
positive or negative
 Evaluations are for the entire review period
indicated
 Continuous documentation of performance
throughout the review period can help the
evaluator avoid focusing on a recent event
 This documentation can be achieved using
logs, small notes as reminders
 APPRAISAL PROBLEMS AND ERRORS
COMPARING
 “Comparing” is when supervisors tend to
compare one employee’s performance with
another without considering their job or
personality differences
 For e.g. if the performance of an average
employee is evaluated after the evaluation of
an outstanding employee, the average
employee can get low ratings
 APPRAISAL PROBLEMS AND ERRORS
COMPARING
 One way to avoid this is to write evaluations
for employees at separate times
 This allows the supervisor to focus on the
individual rather than a group of employees
 APPRAISAL PROBLEMS AND ERRORS
STEREOTYPING
 “Stereotyping” is a preconceived perception of
the employee
 Supervisors need to be aware of their
perceptions and biases, and avoid those when
preparing a written evaluation
 Stereotyping along provincial and ethno-
linguistic lines is particularly widespread in
Pakistan
 APPRAISAL PROBLEMS AND ERRORS
MIRRORING
 People have a tendency to favor people similar
to themselves
 This tendency carries over into the workplace,
especially during the performance rating period
 Supervisors may rate the employee most like
themselves higher than those who are different
 Supervisors may have difficulty evaluating and
appreciating the differences that others bring to
the workplace
 APPRAISAL PROBLEMS AND ERRORS
VILLAIN FACTOR
 Managers and supervisors want to avoid being
the “bad guy”
 They avoid writing negative evaluations
because
 they fear it will reflect badly on themselves
as supervisors if an employee is not
performing to expectations, or
 they prefer not to “upset” the employee with
negative feedback
 APPRAISAL PROBLEMS AND ERRORS
VILLAIN FACTOR
 The effect of this tendency is that employees
will not know where they may need to improve
their work performance or behaviors
 Identifying problem areas requires identifying
solutions, and providing guidance and
resources to resolve the problem areas
 By providing this information in a constructive
and fair written evaluation, the supervisor is
helping the person become a better employee
 APPRAISAL PROBLEMS AND ERRORS
LENIENT OR HARSH
 There are perceptual differences in the meaning
of the words used to evaluate employees
 Evaluators have variable standards of evaluation
 Some are easy going and give everyone good
ratings
 Others rarely ever give excellent evaluations
 PREPARING FOR THE APPRAISAL
Schedule early
 Notify the employee of the meeting well in
advance
 This gives both parties time to prepare
 Pick a time and place that will minimize
distractions
 PREPARING FOR THE APPRAISAL
Agree on content
 Discuss the nature of the meeting with the
employee
 Give the employee a copy of the appraisal
form and ask for a self-appraisal
 Agree on what will be discussed, e.g.
 the self-appraisal
 reviewing your completed appraisal form
 summarizing strengths and areas for
improvement
 creating the development plan
 PREPARING FOR THE APPRAISAL
Agree on process
 Agree on the process and sequence of the
meeting—that is, time will be spent on
discussion, problem solving, and action
planning
 Establish ground rules for communication to
ensure constructive feedback and careful
listening
 PREPARING FOR THE APPRAISAL
Choose a neutral location
 If possible, meet in neutral territory
 This helps establish open communication
 Avoid sitting behind a desk—a desk
symbolizes authority and acts like a barrier
 Choose a business time and setting. Don’t
schedule a performance appraisal meeting
over lunch (this is not an informal review)
 CONDUCTING THE APPRAISAL
Set the stage
 Be welcoming when the employee comes in
Make the employee feel as comfortable as
possible
 Review the agreed-upon content for the
meeting
 This helps prepare both of you and serves as
a "warm-up" for open dialogue
 Review guidelines, such as that you will work
together as partners on performance issues,
and that their input is necessary and valuable
 CONDUCTING THE APPRAISAL
Toss the ball into the employee’s court
 Have the employee discuss his or her own
appraisal first
 Avoid trying to control the conversation
 Ask probing questions to uncover the
employee’s perspective and assessment: e.g.
"How do you feel things are going on the job?"
"What’s going well and what problems are you
having?“
 Work to understand the employee’s point of
view
 CONDUCTING THE APPRAISAL
Give and receive feedback
 Make appraisal a two-way process
 Let the individual know how you view his or
her performance against agreed-upon goals
 State points of agreement and then compare
opinions for e.g. say,
"Let me summarize how I see your
performance…………”
 CONDUCTING THE APPRAISAL
Reinforce what the individual has done well
 Tell the employee, for example,
"You’ve done a terrific job in organizing the
quarterly meetings, and your contributions at
staff meetings are excellent. Keep it up!"
 Summarize where improvement is needed
"So, as it stands, you need to increase your
industry contacts."
 CONDUCTING THE APPRAISAL
Avoid generalizations
 E.g. "You just don’t seem motivated,"
 Be specific and relate to the job
"I’ve noticed that you’ve missed several
consecutive deadlines. What’s the reason
behind that?"
 Seek shared understanding of the need for
improvement.
"Could you summarize what you heard
regarding the need for improvement….?"
Wait for a response
 CONDUCTING THE APPRAISAL
Encourage the employee to respond to points
of disagreement.
 Ask for clarification, if necessary. "I’m not
sure what you mean by that. Give me an
example."
 CONDUCTING THE APPRAISAL
Develop and agree on a development plan (or
do this as a follow-up item if preferred)
 Avoid a climate of "blaming"; emphasize
problem solving instead
"Given the performance problems we’re
discussing, how can we eliminate them over
the next six months?"
 Let the employee suggest a plan for
improving performance in problem areas.
"How would you go about working on this?"
 CONDUCTING THE APPRAISAL
React to and perhaps expand on the
employee’s ideas in the development plan
 This will make him or her less defensive
 If he or she cannot formulate a good
development plan, or seems unmotivated to
do so, take a more direct approach
 Include task assignments, training programs,
working closely with a more skilled associate,
or a change in goals
 CONDUCTING THE APPRAISAL
Identify specific ways in which you can better
support the employee and provide resources
that will help to improve performance
 Seek the employee’s agreement
 Communicate the consequences for
improving or not improving, e.g.
"I’d like to be able to consider you for a
promotion when you’ve made progress in this
area."
"This is an essential requirement for someone
in this job. I’m optimistic that you’ll make
progress."
 EXERCISE TWO
ROLE PLAY

HANDOUT : HOW TO PREPARE FOR THE APPRAISAL MEETING

VIDEO EMPOWERING APPRAISAL
 VIDEO SUMMARY
PREPARE
 Give adequate notice – at least 1 week
 Focus on the performance facts
 Set the stage for enough time and privacy

DISCUSS
 Review
 Explore
 Agree

FOLLOW-UP
 Support
 Review
 VIDEO SUMMARY
PREPARE
 Preparation begins well before the appraisal
 A week before the appraisal …
 The appraiser should give notice to the
employee
 The appraiser and the employee should start
preparing by going over notes from previous
appraisals to remember the goals that were
mutually set by them
 The appraiser should select & reserve a quiet,
private environment to conduct the appraisals
 VIDEO SUMMARY
DISCUSS
Appraiser should begin by telling the employee
 What is about to happen and that
 The purpose is to get the employees views
 Start with the positive things that the employee
can be proud off
 Focus on the problem, NOT the employee
 Build up his/her self image, do not knock it down
 The goal is to go over both the expected
performance as well as the planned performance
 VIDEO SUMMARY
DISCUSS
 Ask questions which examine the …
 skill and effort that the employee has put into
achieving goals
 internal and external factors which have aided or
prevented the employee
 make the employee analyze the reasons for
success or failure
 The appraiser and the appraised employee must
then mutually set and agree on goals
 Ask the employee for suggestions regarding
 New objectives
 Any training that the employee may need
 VIDEO SUMMARY
FOLLOW-UP
 Appraisal is not a one time activity but an
ongoing process
 The appraiser must
 give or arrange for the support that the
employee has been promised
 meet throughout the year to review progress
and give feedback on performance
 Set periodic formal review dates
ROLE PLAY

PERFORMANCE APPRAISAL EVALUATION CHECKLIST

MIDTERM REVIEW NOTE
APPRAISAL FORM
 STEP 1 : PAF - A
 The employee fills out the first section of the
Performance Appraisal Form A (PAF-A) with
his/her identification information
 The information in this portion is used for
identification and filing purposes and as such
must be filled out as accurately as possible
 Extra sheets may be used to fill out
information for the box entitled ‘Number of
Publications during last one year’
 STEP 1 : PAF - A
 Section two (RATING SCALE) will be skipped
since it contains the rating scale section which
gives the comprehensive rating of the
employee being appraised
 It is filled in by the reporting officer using the
‘Overall Assessment’ arrived at in Step 9
 Instead, the employee may move on to section
3
 STEP 2: SMART GOALS (PAF-A)
 The employee may fill out COLUMN 1 by
describing his/her major objectives
 These objectives are planned in consultation
with the reporting officer for the next review
period in order of priority
 The objectives must be approved by the
employees Departmental Head and must follow
the S.M.A.R.T format
 STEP 3 : ACCOMPLISHMENTS (PAF-A)
 The employee may fill out COLUMN 2 in the
next appraisal period by describing his/her
accomplishments against the planned
objectives
 Objectives that were not planned but were,
nonetheless accomplished by the employee
may also be included
 STEP 4 : R.O.’s COMMENTS (PAF-A)
 The employee’s reporting officer may complete
COLUMN 3 by assessing the employee’s level
of performance in achieving the goals

 When filing the comments section the

reporting officer must be mindful of the fact
that the nature of goals varies as do the
circumstances affecting their achievement
 STEP 5 : RATE AND SCORE (PAF-A)
 The score ranges from 5-1, with a score of 5
corresponding to the highest rating and a
score of 1 corresponding to the lowest

RATING SCORE
OUTSTANDING 5
VERY GOOD 4
GOOD SOLID PERFORMER 3
NEEDS IMPROVEMENT 2
INADEUQATE PERFORMANCE 1
 STEP 6 : AVERAGE SCORE (PAF-A)
 Once the numeric scores have been assigned,
the appraiser must add up all the scores and
divide the sum by the number of goals that
were assessed
 If 3 goals were scored and the ratings were 2, 4
and 3 respectively then the ‘Average Score
PAF - A’ would be
[(2+4+3) / 3]  [9/3] = 3
 STEP 7: GENERAL ASSESSMENT (PAF-B)
 The reporting officer evaluates the employees
on the competencies necessary to perform
their job
 SPS 8 & 9 and SPS 10 and above officers are
required to possess different competencies to
perform their jobs
 N.D.C’s Performance Appraisal Form (PAF-B)
consists of two sections
 one for SPS 8 & 9 officers
 one for SPS 10 and above officers
 The competencies in each section are grouped
into clusters (for better organization)
 STEP 7: GENERAL ASSESSMENT (PAF-B)
SPS 10
and above
LEADERSHIP
SPS 8 & 9 SKILLS

PERSONAL
PROFESSIONAL SKILLS QUALITIES/
NDC CHARACTERISTICS
COMPETENCY
MODEL

PERSONAL
QUALITIES / PROFESSIONAL SKILLS
CHARACTERISTICS
SPS 8 & 9 OFFICERS
COMPETENCY
CLUSTER

COMPETENCIES
COMPETENCY
CLUSTER

COMPETENCIES
SPS 10 & ABOVE OFFICERS
COMPETENCY
CLUSTERS

COMPETENCIES

COMPETENCIES
COMPETENCIES

COMPETENCY
CLUSTERS

COMPETENCIES
 STEP 7: GENERAL ASSESSMENT (PAF-B)
 These competencies are individually rated and
the matching scores are marked
 The rating and score given by the appraiser
should depend on the degree to which the
employee meets the definition of the particular
competency
 If the employee meets the definition perfectly,
then the score given is 5
 STEP 7: GENERAL ASSESSMENT (PAF-B)
 If the employee does not meet the competency
definition in any way at all, then the score
given is 1
 Similarly, scores of 4, 3 and 2 may also be
given depending on how well the employee
meets the competency definitions
 STEP 8: AVERAGE SCORE (PAF-B)
 The average score is then calculated by adding
up all the ratings given and dividing the sum by
the number of competencies
 E.g. if the competencies for SPS 8 or 9 officer
were scored 4, 5, 4, 4, 4, 4, 3, 5, 3 and 4
respectively then the ‘Column Wise Sum’ is
[(4+5+4+4+4+4+3+5+3+4) = 40
 The ‘Average Score PAF – B’ will therefore be
40 / 10 = 4
 The same method is used for SPS 10 and above
 STEP 9: OVERALL ASSESSMENT (PAF-B)
 The Overall Assessment for both the SPS 8 & 9 and
the SPS 10 and above officers is calculated using
the following formula
Overall Assessment=(Average of PAF-A & PAF-B)
For e.g. (4+3)/2  3.5
 STEP 10: STRENGTHS
 The reporting officer may list the employee’s
strength preferably in bulleted summary form
 The reporting officer must focus on

(1) those competencies which have been given

high ratings (STEP 7)

(2) any unique or unlisted strength

 STEP 11: DEVELOPMENT NEEDS
 The reporting officer must write down a broad
assessment of the employee’s development
needs based on

(1) the gaps between the employee’s targeted

performance and the actual performance

(2) those competencies which were given low

ratings in STEP 7
 STEP 12: TRAINING COURSES ATTENDED
 The employee may list down any workshops,
seminars and anything else considered a
training session or course that he / she
attended during the last six months
 The dates of attendance may also be added in
brackets
 STEP 13: TRAINING NEEDS
 The reporting officer may list down the training
needs of the employee, using STEP 11
(DEVELOPMENT NEEDS) as a guide
 The officer must keep in mind that STEP 11 is a
broad assessment of the employee’s
development needs, whereas STEP 13 is more
exact in nature
 For e.g. if an employee is given a low rating on
‘Communication Skills’ competency in STEP 7,
then the employee’s development needs must
be to improve his or her communication skills
 STEP 13: TRAINING NEEDS
 The training needs however, must be more
specific, highlighting the particular aspect of
communication skills that the employee needs
to be trained in
 It could be his or her
(1) verbal communication skills such as public
speaking
(2) written communication e.g. memo’s,
reports etc
(3) if it is a technical position then his or her
ability to explain technical concepts to a non-
technical audience
 STEP 14: COMMENTS
 The reporting officer may summarize his or her
comments regarding the performance
appraisal’ and record significant findings
 The officer may also summarize the
employee’s improvement and development
needs and chalk out a development plan for
the employee
 STEP 14: COMMENTS
 The appraisal will then be passed on to the
Counter Signing Officer who must write his
observations about the appraised employee
 The counter signing officer must also give an
endorsement or rejection of the reporting
officer’s appraisal
 In case (very rarely) of disagreement/rejection,
the counter signing officer must give specific
reasons for the disagreement, along with his or
her own assessment with proper reasoning
and discuss this with the Reporting Officer
 STEP 14: COMMENTS
 Rankings should not be communicated to the
employee prior to finalization of the bell curve
and forced ranking at the directorate level
 The employee will be given feedback through
appraisal interview only after the RO has
finalized the bell curve and ranking with the CO
at the department level
 STEP 15: COMMENTS
 The employee may add his or her
comments/objections (if any) regarding the
performance appraisal after the
 finalization of the bell curve, ranking and
 the feedback given to him by the Reporting
Officer
 REVIEW BOARD
 Review Boards will be available to look into
any disagreements between the employee and
the Reporting Officer as required on a case to
case basis
 The board may constitute of two senior
managers, one from the concerned
department, one from a different departments
and an HR Representative
 REVIEW BOARD
 Finally the review board after meeting and
assessing the employee ,RO and CO may add
their comments regarding their findings
 All cases reviewed by this board will be put up
in a summary to the DG for information
 FORCED RANKING
 N.D.C’s Performance Management System
ranks its employees using the ‘Bell Curve’
 Bell curve or Normal Probability Distribution
Scale is one of the most simple and popular
tools for evaluating employees' performance

 The ‘Bell Curve’ is a forced distribution

method, similar to grading on a curve
 The employees must be forced ranked within a
pre-determined Bell Curve distribution
 FORCED RANKING
 Normal Probability Distribution Scale buckets
people, typically in bell-curve fashion, and
limits how many fall into each category
 It indicates that most employees will wind up
in the middle categories, whereas fewer
employees will end up in extremes at either
end
 FORCED RANKING
 Employees will be positioned from first to last
within a department, job level or seniority
cadre according to the table below
 The employee ranking will be based on the
“Overall Assessment” (Step 9)
 FORCED RANKING
 Assume there are 100 employees and that the
performance of 28 of these employees falls into
the ‘Very Good’ category
 However according to the forced distribution
there can be only 20 employees in that slot
 FORCED RANKING
 Therefore, only the top 20 employees out of the
28 that qualified for the ‘Very Good’ category
will be put into that category
 The remaining 8 will be forced into the next
category i.e. ‘Good Solid Performer’
 FORCED RANKING
 This distribution produces the bell curve shown
 It indicates that most employees will be placed in
the ‘Good Solid Performer’ and ‘Very Good’
categories,
 Few will end up at the extremes at either end
 BASIC RULES-RANKING
DOCUMENTATION
 At the start of the performance cycle after goal
setting, original forms must be maintained by
the departments
 Photocopies of the forms must be forwarded to
Human Resources and may also be provided to
the employees
 After the completion of the cycle and
finalization of appraisals the original, signed
forms will be sent to the H.R department and
copies will be maintained with the department
and the employee
 BASIC RULES-RANKING
RANK IMPROVEMENTS
 There can be no double jumps in rankings, e.g.
if an employee was rated ‘Very Good’ in one
review cycle he/she cannot be rated ‘Needs
Improvement’ in the next review cycle
 Similarly an employee rated ‘Good Solid
Performer’ in one review cycle cannot be rated
‘Outstanding’ in the next one
CORRECTION
 All cuts, Blancos and other corrections need to
be signed by the Reporting Officer
 BASIC RULES-RANKING
TRANSPARENCY
 N.D.C will use two bell curves for departments
which have officers at the head office and in
the field (e.g. Administration, Human
Resources, Transport, Finance, etc)
 This will keep the process transparent and
merit based
 BASIC RULES-RANKING
TRANSFER
 If an employee is transferred from one
department to another in the middle of the
review period, then he / she will be given new
goals & jointly ranked by the previous & new
reporting officer for that period
 BEST PRACTICES
 Performance management is a daily
supervisory responsibility and integral to
management
 If proper planning, coaching and feedback are
done periodically, then the results of the
performance evaluation will not be a surprise
 Supervisors understand and communicate
how the goals of the organization directly
impact the employee's job and performance
 BEST PRACTICES
 Supervisors see performance appraisal,
training and development and career planning
as interrelated and essential for the
organization's success
 High performance is rewarded appropriately
 Good managers are honest, fair and caring
with all employees. They remember to listen
and promote 2-way communications
 BEST PRACTICES
 Good managers know that turnover costs are
high. They know that to retain employees,
development and training are essential
 Supervisors understand that their buy in and
belief in the system for performance
management is critical for the success and
implementation of the same
 BEST PRACTICES
 Job content is used in developing goals and
evaluating performance
 Evaluations are behavior oriented and not
personality oriented
 Employees are given the right to respond to
the evaluation in writing and both the
supervisor and employee sign the final copy
 Confidentiality is respected
N.D.C’s PERFORMANCE MANAGEMENT SYSTEM
PLAN

COACH

APPRAISE

ACT
 ACTION
 The last step in the performance management
system is the action that is taken after the final
appraisal
 Those employees who qualify as performers
need to be rewarded for their hard work so as
to:
 Instill a performance oriented culture
 Retain talented performers within the
organization
 ACTION
 Those employees who, despite the clearly
defined goals and coaching have been unable
to meet their targets need to be developed and
monitored closely
 Their Personal Development Plans (PDP’s)
need to be put in place
 PDPs
Personal Development Plans …
 Help develop employee performance which
furthers the mission of the organization
 Enhance the overall quality of the workforce by
promoting a climate of continuous learning
and professional growth
 Help to sustain employee performance at a
level which meets or exceeds expectations
 PDPs
Personal Development Plans …
 Enhance job or career-related skills,
knowledge and experience
 Enable employees to keep abreast of changes
in their fields; and motivating employees to
train and develop
 ACTION
 High performers and hardworking employees
can be rewarded in a number of ways:
 Bonuses

 Incentives

 Recognition

 Promotion
 Whatever the method chosen, the key is to
establish pay equity in the mind of the
employee the lack of which can result in
despondency and turnover
END
 SITUATION
 Last month Mr. X was assigned an important project
on research and development for Product-A.
 He gave improper / unclear directions which left his
subordinates confused and without direction
 This delayed the project and caused the department
a loss to its credibility
 This is not the first time his subordinates have been
left confused by his instructions
 ANALYSIS
 Mr. X does not give clear and focused direction
to his subordinates and team.
 He needs to polish his communication and
people management skills
SUGGESTION
 I suggest to give him team projects so that he
can brush up his Management skills (both
communication and people skills)
 SITUATION
 Last month, N.D.C had several employees go
away on emergency leaves
 Due to this shortage one of Mr. X’s subordinate
was assigned a task by another manager on an
important errand
 Mr. X scolded the subordinate to get back to his
work station
 He was also impolite to the other manager while
he was trying to explain the situation
 Mr. X is also frequently rude to his staff over
minor errors in their work
 ANALYSIS
 Mr. X has an attitude problem. He is not open to
suggestions, and is not ready to listen to the
explanations of others

SUGGESTION
 Mr. X’s interpersonal skills need to be polished
 He needs to be advised in matters of office
decorum and respect for his team mates
 He should not take criticism personally but instead
should try to listen to others and be empathetic.
 SITUATION
 Last week a sudden meeting was called up by
the director
 Mr. X was requested to give an update on his
project
 He not only lost control of his nerves but also
put his team and subordinates under pressure
 This resulted in substandard reporting to the
director
 Mr. X showed his annoyance non verbally
 ANALYSIS
 Mr. X should learn to work under pressure and
in such situations should control his nerves

SUGGESTION
 Mr. X should work out on Stress management
skills & techniques to control his nerves
 This will not only help him in having a solid
control on his assignments ( quality wise) and
also on his subordinates
 SITUATION
 Mr. X was assigned three projects to be
completed within the first Quarter
 However, he managed to accomplish only one
project within the Deadline
 The other two projects were half done
 ANALYSIS
 Mr. X needs to timely manage his projects and
complete them within the Deadlines

SUGGESTION
 Mr. X needs to manage his work in an organized
way , must not keep his work pending.
 He is a chronic late comer and usually walks in
quarter past nine. Moreover, he also takes
unannounced leaves almost every month
 Since last two months Mr.X was late six times. the
dates are the following : May 5th , 10th , 19th and
24th 2004 and
 June 1st and 9th 2004
 Mr. X should come over tardiness. He should turn
up for work by 8.50 a.m. every morning and
should be ready for work by 9.00 a.m. Moreover, he
will not b allowed to take any leaves unless in an
emergency
 N.D.C’s PERFORMANCE MANAGEMENT SYSTEM
APPRAISAL SYSTEM
OFFICER EVALUATION REPORT

WORK EFFORT

START OF YEAR END OF YEAR

PERFORMANCE MANAGEMENT SYSTEM

FACE TO FACE PLANNING MIDTERM PERFORMANCE

GOAL SETTING REVIEW APPRAISAL

WORK EFFORT

PERFORMANCE NOTES
START OF REVIEW PERIOD END OF REVIEW PERIOD