STANDARD OPERATION PROCEDURE (SOP)

Regulation for the Performance Evaluation of Personnel

Serial no. 1 Date of Revision Amendment Description of Amendment New SOP

SOP List of Document Amendments

Preparation

Date

Review by

Date

Approved by

Date

Human Resource Department

QA / QC CEO

1.

ABBREVIATIONS Term SOP HR PE-I PE-II CEO GM FH TOC O G AVG BA PAF 2. PURPOSE This SOP defines the process of performance appraisal of ABC Group. This process provides general guidelines to evaluate employees performance and development. These guidelines includes following aspects:-. a. To provide the employees clear and timely feedback on the company's views on their performance. b. To identify the employee's areas of strength and weakness. c. To recognize the employees who are sincere, diligent and who take initiative. Promotions and rewards are given to the deserving employees. d. To strengthen the company's culture and values. e. The non-performers who do not meet their targets would be counseled and provided support to achieve their targets. In the eventuality of their continued inability to meet the expectations, they may be separated out from the company. 3. SCOPE The Scope of this document is to provide a meaningful tool to evaluate the employee's performance and development and for ensuring that adequate resources are provided to ensure that he/she meets the goals. Abbreviations Standard Operations Procedures Human Resource Preliminary Evaluation-1 Officer Preliminary Evaluation-2 Officer Chief Executive Officer General Manager Functional Head Table of contents Outstanding Good Average Below Average Performance Appraisal Form

4. Operational Flow and Description 4.1 AUTHORITY MATRIX OF PERFORMANCE APPRAISAL

HOOFFICE STAFF

SITE/OFFICE STAFF

FUNCTIONAL HEAD

GM

HO-FH

CEO

FUNCTIONAL HEAD BH/GM CEO DIRECTOR ED/CHAIRMAN

PE I PE II PE I PE II

PE I

PE II

PE I PE II

PE I PE II PE I PE II

PE-I represents Preliminary Evaluation-I PE-II represents Preliminary Evaluation-II 1. Preliminary Evaluation-I Officer: The Immediate Supervisor/FH of the Evaluated personnel. 2. Preliminary Evaluation-II Officer: GM / Branch Head of the Evaluated personnel. 3. Re-Evaluation Officer: (If required): SBU Head / CEO of the company. 4. Adjustment / Approving Officer: Director / CEO/Corporate Head-HR. 4.2 Filling up the Performance Appraisal Form (Appendix-1) There are different Appraisal Forms for different grade / level of employees of ABC Group. These appraisal forms are mentioned below: 1. Performance Appraisal Form-A (for Manager and above Level). 2. Performance Appraisal Form-B (for Engineers and Executives Level). 3. Performance Appraisal Form-C (for Workers and Supervisor Level). The Appraisal Form contains the following fields i.e. Project / HO, Emp. Code, Name, Department, Designation, Joining Date; all these fields will be filled-in, by HR-HO only. Grade and Joining date field, will remain empty. 4.3 Duration and Eligibility for the Performance Appraisal 3

Period for Annual Appraisal is Jaunary-08 to Decemnber-08. Employee who has completed six month of service till 31st December08 (i.e. joined on or before 01-July-08). 4.4 4.4.1 Rating Criteria In order to achieve purpose of quantification and easy communication, annual performance standard is divided into four (4) ratings, and specifying its lowest standard score. The supervisor should evaluate and give the score and rating according to the work efficiency and degree of contribution of the person. Table A The rating will be done on 100 point scale.100 being the highest performance and 0 being the lowest performance. Each attribute will be allotted certain points. Accordingly the rating (Table: A) will be further simplified by converting it into qualitative terms which is as follows:Marks 91 - 100 81 - 90 61 - 80 0 - 60 Grade O G AVG BA Category Outstanding Good Average Below Average General Guidelines to fill up an Appraisal Form

4.4.2

Distribution Of Performance Rating to the Number Of Person In order to make a proper distribution of limited resources and reflect the relative characteristic of performance, personnel in each unit is divided into several performance evaluation groups. Distribution of performance rating to the number of person in each performance evaluation group is based on the following ratio: This Table-B reflects limit for evaluating the employee for performance i.e. out of total strength of employees at HO / Project office, only 20% can be evaluated as outstanding, 40% as Good, 35% as Average and 5% as Below Average. 4

Table B Performance Rating Outstanding Good Average Below Average Percentage (Limit of Appraised Employee) 20% 40% 35% 5%

4.4.3

Description Of Annual Performance Evaluation Procedure Outstanding Performance This refers to work that is done within the scheduled time, cost, manpower, and quality, which is usually above performance standard and quite outstanding. Personal commitment to the highest level of performance and results are evident. Quality and timelines of results are never in question. Even in highest challenging circumstances A Role Model contributor. Good Performance Performance consistently exceeds targets. Demonstrates initiatives in the development and implementation of challenging assignments. This refers to work that is done within the scheduled time, cost, manpower, and quality, which is more than what the position demand, and the overall performance is quite satisfying. Requires practically no direction or supervision. Average Performance Able to complete the work within the scheduled time, cost, manpower, and quality, which conforms to the position required. Prioritizes work and work related problem well. Requires only normal supervision and follow-up. Each job is done thoroughly and on time. Below Average Performance 5

A corrective plan of action should be in place. Performance needs to be monitored closely and reviewed on a frequent basis; performance is below standard, barely or provisionally acceptable but needs improvement. Frequently commits error, performance is below standard, barely or provisionally acceptable but needs improvement. Performance Period Performance period will be from January to December. HR department will communicate it to the concerned Appraiser.

4.4.4

STAGES & FORMS Different Performance Appraisal Form (PAF) will be used for different grade of employees: For Manager and above Level Performance Appraisal Form AConcern officer will fill up the appraisal form wherein he / she will give numerical ratings put remarks and submit it to the reviewer in Form-A (refer Reference Table I). For Engineers & Executive Level Performance Appraisal Form BConcern officer concern will fill up the appraisal form wherein he / she will give numerical ratings, put remarks and submit it to the reviewer in Form-B (refer Reference Table II). For Workmen & Supervisor Level Performance Appraisal Form CConcern officer, will fill up the appraisal form wherein he / she will give numerical ratings, put remarks and submit it to the reviewer in Form-C (refer Reference Table III)..

4.4.5

Performance Rewards Performance rewards will be in the form of increment in salary, promotion or both, incentives, and higher responsibilities. The annual increment process commences on the completion of the annual appraisal process of the confirmed employee. A compensation survey is conducted to ascertain the salary packages being paid by the industry. Analysis of performance levels of the employees as indicated by the annual appraisal process is then factored into the annual increment plan. The increment is effective from 1st of April; however the assessment and implementation process may take some time. 4.5 1. 2. 3. CEO. 4. Adjustment / Approval: The Director / CEO/Corporate Head-HR 5 Appendices 7 Approval Procedure

Preliminary Evaluation-I: The Preliminary Evaluation-I of the Evaluated personnel will be done by his / her immediate reporting officer (if any)/FH. Preliminary Evaluation-II: Further, GM /Branch Head of concern evaluated personnel will do the Preliminary Evaluation-II. Re-Evaluation: The Re-Evaluation will be done by SBU Head /

Appendix 1

Form A: Appraisal Form: For Manager and Above Level Form B: Appraisal Form: For Engineer and Executive Level Form C: Appraisal Form: For Worker and Supervisor Level

Appendix 2
Appendix 3 Appendix 4

Reference Table I: Description of Evaluation Emphasis for

Managerial & Above Level

Reference table II: Description of Evaluation Emphasis for

Engineer(S) & Executive(S) Level Reference table III: Description of evaluation emphasis for worker & supervisor level

ABC ENGINEERING PVT.LIMITED

8

PERFORMANCE APPRAISAL FORM-A

(Applicable to: Manager(s) and above Level)
Project / HO Name Designation Grade Employee Code. Department Joining Datedd/mm/yy Salary (Gross) /pm
Preliminary Evaluation I Preliminary Evaluation II ReEvaluation Adjustment / Approval

GRADE Marks

Below Average

Item / Rating

Outstanding

Average

Good

Marks

Marks

Marks

Marks

Work Quality Improvement & Innovation Creating Profit/Value Management of Subordinates Training of Subordinates Developing Subordinates Meeting KRA

15 15 30 10 10 10 10 100

15-13 15-14 30-28 10-9 10-9 10-9 10-9 100-91

13-12 14-12 27-25 9-8 9-8 9-8 9-8 90-81

12-9 12-9 24-19 8-6 8-6 8-6 8-6 80-61

9-0 9-0 18-0 6-0 6-0 6-0 6-0 60-0 Total Final Adjustment

What kind of assistance or training is helpful to the improvement of performance and the performance of this personnel? (May emphasize special points of merit and shortcomings, position that is capable of holding in the future, and training needed.)

Adjustment / Date

Re-evaluation / Date

Preliminary Evaluation-II

Signature of Preliminary Evaluation-I

ABC ENGINEERING PVT.LIMITED

PERFORMANCE APPRAISAL FORM-B
(Applicable to: Engineer & Executive Level)

Project / HO Name Designation Grade

Employee Code. Department Joining Date Salary (Gross) /pm

Preliminary Evaluation I Preliminary Evaluation II ReEvaluation Adjustment / Approval

GRADE Marks

Below Average

Item / Rating

Outstanding

Average

Good

Marks

Marks

Marks

Marks

Work Quality Work Efficiency Work Loading Earnest & Voluntary Coordination & Cooperation Ability of Learning Creativity

30 15 15 10 10 10 10 100

30-28 15-14 15-13 10-9 10-9 10-9 10-9 100-91

27-25 14-12 13-12 9-8 9-8 9-8 9-8 90-81

24-19 12-9 12-9 8-6 8-6 8-6 8-6 80-61

18-0 9-0 9-0 6-0 6-0 6-0 6-0 60-0 Total Final Adjustment

Evaluation Opinion Performance Evaluation Officer (May narrate from merit point and shortcoming, suggestion for improvement or suggestion on training course):

Adjustment / Date

Re-evaluation / Date

Preliminary Evaluation-II

Signature of Preliminary Evaluation-I

ABC ENGINEERING PVT.LIMITED

PERFORMANCE APPRAISAL FORM-C
(Applicable to: Workers & Supervisor Level)
Project / HO Name Employee Code. Department

10

Designation Grade

Joining Date Salary (Gross) /pm

Preliminary Evaluation I Preliminary Evaluation II ReEvaluation Adjustment / Approval

GRADE Marks

Below Average

Item / Rating

Outstanding

Average

Good

Marks

Marks

Marks

Marks

Result/Output Time Schedules Quality Discipline Knowledge Attendance Attitude

10 15 15 10 10 30 10 100

10-9 15-14 15-13 10-9 10-9 30-28 10-9 100-91

9-8 14-12 13-12 9-8 9-8 27-25 9-8 90-81

8-6 12-9 12-9 8-6 8-6 24-19 8-6 80-61

6-0 9-0 9-0 6-0 6-0 18-0 6-0 60-0 Total Final Adjustment

May emphasize special points of merit and shortcomings, position that is capable of holding in the future.

Adjustment / Date

Re-evaluation / Date

Preliminary Evaluation-II

Signature of Preliminary Evaluation-I

Reference Table I
DESCRIPTION OF EVALUATION EMPHASIS FOR MANAGERIAL & ABOVE LEVEL

Item Work quality

Definition and Explanation Weigh whether the accuracy, completeness, and effectiveness of his/her work conform to the requirement or not. Whether professional product and services were provided 11

through understanding and within schedule and outside customers requirement. Improvement and Innovation Whether there is continuous and subsequent selfimprovement or not, tried effective methods in dealing with various work issues or opportunities. Whether concrete, innovative, and valuable solution was developed in dealing with different work condition. Whether maximum profit and value were created for the company through sound planning, cost saving and control, and highly efficient work method. Key Result Areas are major targets, responsibilities which are decided and agreed by between Appraiser and Appraisee at the commencement of the Appraisal year and the Appraisee is accountable for its accomplishments. Were effective supervision, incentive, and support given to subordinates in the organization, and authority was given effectively during the course of management. Able to continuously improve the ability of leadership, and select, employ, train, and rABCin subordinates effectively. Give correct evaluation to the ability required in the position taken charge by the subordinate, provide effective training, and keep on tracking the result of training and improvement in work performance. Evaluate the personal potentiality and desire for development of the subordinate according to the development requirement of the Company, and provide the personnel with a programmed and systematic training in order to fully manifest and enhance his/her ability.

Creating profit/value

Meeting KRA

Management of Subordinates

Training of subordinates

Developing subordinates

Reference Table II
DESCRIPTION OF EVALUATION EMPHASIS FOR ENGINEER(S) & EXECUTIVE(S) LEVEL

Item Work Quality

Definition and Explanation Weigh whether the accuracy, completeness, effectiveness, and the quality of his/her work conform to the requirement or not. 12

Work Efficiency Workload

Whether the personnel is able to accomplish the given duty and work within the given time and quite satisfactory. Whether personal ability and workload meet with the requirement of the position. Compare with the workload of other personnel holding similar position or in the same level. When work efficiency increases, were the personnel able to shoulder other work in the group voluntarily?

Earnest and voluntary Was the personnel earnest and willing to execute various works that were handed to him/her? Is he/she willing to improve the work? How does he/she accept the work handed to him/her at the last moment? Is he/she happy to work and responsible? Coordination and Cooperation Is the personnel capable of cooperating by using people, things, and utilizing various resources effectively (with the boss, among colleagues, and between other departments), and his/her effort in cooperating and communicating with the group in the organization. Able to show enthusiasm in learning new technology, working method, and net matters or concept within the scope of his/her work, and apply it effectively in his/her work or duty. Is the personnel cable of finding related facts and grasp the essence and cause of the issue accurately? Is he/she able to find an effective solution when facing a problem. Ability to subsequently be innovative in professional knowledge, technology, and experience.

Ability of Learning

Creativity

Reference Table III

Description of Evaluation Emphasis for Worker & Supervisor Level

Result / Output Time Schedules Quality

Consider the actual level of performance / output vis-vis the expected levels / standard set Consider the extent of performance of assigned tasks within set time target Consider the extent to which work meets quality 13

Discipline Knowledge Attendance Attitude

standards viz error-free, right first time, minimum wastage, acceptance level etc. Consider the discipline, following rules & regulation, regularly being followed. Consider the extent of knowledge possessed by the employee to be able to perform all the assigned tasks and related activities Consider whether the employee is regular in attendance plan leave in advance. Consider whether the employee having positive towards his /her work.

Annual Performance Evaluation Schedule

Sr. No Particulars (January to December) Due Date

14

HR department will give performance appraisal form to site HR department for distribution. Departmental Head will provide Performance Appraisal Forms for Preliminary Evaluation-I. Preliminary Evaluation-I should be finished by concern Department and individual cases, keep all the original personnel performance evaluation forms, and submit the summary of performance evaluation rating and photocopies of Performance Evaluation Forms, to the higher level unit supervisor, for Preliminary EvaluationII. After getting done the Preliminary Evaluation-II, the said form will be forwarded to next higher officer for Re-evaluation (if any).

By 05th of November

By 08th of November

By 12th of November

By 20th of November

The dept. having completed their performance evaluation shall return the original copies of performance evaluation form to the Human Resources Department at HO HR department will coordinate, recommend the promotion & increment and make proposal to the management for review.

By 30th of November

31st December

Promotion / Increment Letter / Salary Adjustment

1st week of April

15