ePMSHandbook | Competence (Human Resources) | Leadership & Mentoring

Handbook

Performance Management System

Indian Oil Corporation Limited
www.indianoilxpress.com

Indian Oil Corporation Limited

Performance Management System

For all officers in Grades A-I

CONTENTS
Terms You Need to Know 5

PMS -Objectives, Coverage and Roles

11

Features of PMS

15

Appendix I - Competency Definitions & Proficiency Levels

49

Appendix II: Frequently Asked Questions

85

3

Terms You Need to Know

Term PMS

Description Performance Management System- The unique system of managing performance at IndianOil

Alignment (of objectives Exists when individual and group & results) objectives and results contribute directly to achievement of the organisation results Appraisee Appraiser Every Officer whose performance is assessed under PMS Every Officer who assesses the performance of one or more Appraisees that report to him/her The process of sequentially breaking down organisational objectives and targets into those of various levels of the organisation. The individual KRAs (Key Result Areas) would also include KRAs over and above these cascaded ones such as applicable to divisions, units, functions, areas and individuals Skills and abilities described in terms of behaviours that are coachable, observable, measurable and critical to individual performance The final authority in an individual's performance appraisal process Delivered through software The rating given to an Appraisee after countersignature Pre-selected, s/he is the first point of contact for any queries on PMS process at his/her location

Cascade

Competency

Countersigning officer e-Enabled Final Performance Rating Internal Change Agent

7

Term Key Result Area (KRA)

Description Critical achievements required to deliver IndianOil’s desired business results Typically are outcomes that directly contribute to IndianOil’s MoU, strategic objectives and/or operational goals Usually measurable or verifiable KRAs that are predetermined for a role in role profile KRAs that are predetermined for other roles in the organization, and the officer can choose from among these if s/he finds necessary KRAs to be written out by the Appraisee, in case required in his/her performance plan based on special projects or membership of task forces, committees etc. A tool for the Appraisee to record significant events or aspects of performance which may be used for performance discussions/ review The period for which performance is being planned, reviewed or evaluated A description of KRAs, KPIs (Key Performance Indicator) and their targets expected to be accomplished during the performance period The level at which a set of behaviours is required to be demonstrated in a particular role Responsible for centrally administering the e-Enabled PMS software Tools developed within PMS to facilitate effective usage: Roles, Stretch, Rating Scales, e-Enabled PMS, Performance Diary etc.

Term

Description

Rating Scale Reviewer

5-point scale used to define and assess level of achievement on an element Typically the Appraisers' Appraiser, who is responsible for reviewing the entire performance process Level of achievement on the 5-point Rating Scale for KPIs, Competencies, Values and Potential. The summation of each element (KPI/ competency/value/potential) rating multiplied by the assigned weightage on that element and the stretch level (for KPI section) Overall Score calculated by multiplying each section score with the section weightage and then summating the same. This score is validated by the Reviewer The degree of difficulty built into targets at the time of Performance Planning A measurable and verifiable definition of outcomes to be accomplished Jobs that are held by different individuals but are similar in terms of objectives and outcomes The percentage value (out of 100%) allocated to a KPI or a section on the basis of the criticality, time and effort required

Role-based KRAs Additional KRAs

Score on an Element

Special KRAs

Section Score (KPI section score, Competency section score, Values section score, Potential section score) Final Score

Performance Diary

Stretch Target Unique Role (UR)

Performance Period Performance Plan

Proficiency Level

Weightage

PMS Facilitator/ Administrator PMS Tools

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9

Performance Management System - Objectives, Coverage and Roles

Objectives of PMS The performance management system (PMS) aims to encourage the following: q Creation of high performance orientation at IndianOil q Stronger alignment of individual performance with organisational goals q Higher degree of transparency, uniformity and process efficiency q Performance ownership at the employee level Coverage All Officers working in Grades A-I. Key Roles in PMS Following are the key roles in the Performance Management System: Appraisee An individual who is assessed as part of the performance cycle The key driver of own PMS

Appraiser An Individual who assesses the performance of one or more Appraisees that report to him/her Helps manage performance & provides continuous feedback and counselling

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13

Reviewer An individual who is responsible for reviewing the entire performance process and typically is Appraiser’s Appraiser Ensures objectivity, transparency & consistency

Countersigning Officer An individual who is responsible for ensuring sanctity of process at the highest level. He will be the final authority. Final Authority

Facilitator/Administrator An individual who acts only as a facilitator and ensures adherence to timeliness and consistency in the process Facilitates the process

Features of PMS

14

The following are system features of PMS, which have been detailed in subsequent sections of this document: q Performance Period q Performance Planning q Mid-year Review q Final Appraisal, Review & Feedback q Cornerstones of PMS The features and tools of PMS have been designed to reduce subjectivity and individual biases that may impact the effectiveness of a performance management system. Key cornerstones of Objectivity, Transparency and Consistency across IndianOil have been directly addressed. While the various design features of PMS address all these cornerstones, the emphasis of each feature is highlighted in the following table. Features Definition of Performance Joint Planning & Review with Appraiser Active role of Reviewer Defined & articulated Rating Scales Communication of Ratings upto review stage e-Enabled PMS Stretch Tool Definition of Competencies 4 4 4 4 4 4 4 4 4 4 4 Objectivity Transparency Consistency 4 4 4 4 4 4

17

Performance period PMS follows an April-March annual cycle aligned to the financial year. The cycle consists of three phases, namely, Performance Planning, Mid-Year Review, and Final Performance Review. The critical calendar months and the sequence of events for these phases are represented in the following figure:

This stage involves discussion between Appraisers and Appraisees to set and agree on the contents of the Appraisees’ performance plan parameters for the coming year. Once approval is obtained from the Reviewer, the performance plan is considered final. Unique Roles In order to standardise the performance planning process and measurement of performance across divisions/ functions/ units, each officer in the organisation has been mapped to a Unique Role (UR). This also ensures strong alignment between performance plans and organisational business requirements. These unique role profiles were created by role holders across divisions and locations, and then validated by respective functional experts. Definition of Performance Definition of Performance in PMS is based upon Key Result Areas (KRAs), Competencies, Values and Potential. The achievement against targets set for each of these will together constitute the Appraisee’s performance.

Periodic & Ongoing development activities Performance Planning (April - June)

Final Rating computation and feedback (April-May)

Ongoing Feedback

Mid Year Review (October)

q KRAs are identified areas of performance that support the organisation’s goals that are to be accomplished during the year. Each KRA is accompanied by one or more KPIs. q Competencies are knowledge, skills and abilities described in behavioural terms that are coachable, observable, measurable, and critical to successful performance.

Final Appraisal (April)

q Potential includes the critical attributes which do not get covered in competencies and reflect an individual’s capacity to shoulder higher responsibility. q Values are statements that express IndianOil’s ethical commitments and guiding principles which are timeless and will stand the test of time, market forces and management practices, and on upholding of which, individuals are assessed. The relative weightages of these 4 sections-KRAs, Competencies, Values and Potential, have been pre-decided.

Cascading process Performance planning is undertaken from April to June. Once the MOU between the organisation and MOP&NG is finalised, these targets are cascaded to the divisions. The division heads then cascade them down to their subordinates. This process is followed at all levels at which this is possible. At each stage of cascade, some other targets which may not necessarily be cascaded down, may also be addedthese would be specific to specific roles, and may be in respect of ongoing projects and carried forward from the previous year.
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PMS allows the Appraisee to define his/her performance measures using the three categories of KRAs defined in the following section. Additionally, to be able to focus and prioritise on the basis of importance, each KPI also has a weightage. This would be finalised between Appraiser and Appraisee during the performance-planning phase. KRA: Potential 15% Potential 10% Potential 10%

Definition - Key Result Areas (KRAs) are “Critical outcomes towards which effort is directed to support achievement of desired business results”. Each KRA in a role profile would fall in one of the following brackets:
Values 15% Values 10% Values 10% (a) Operational / Direct or Critical Outputs: KRAs pertaining to functional / operational activities (in terms of efficiency) as performed in the organisation (b) Financial: KRAs pertaining to direct impact on top line (revenue) or bottom line (cost) at a decision-making level (c) Strategy and Growth / Forward Planning: KRAs pertaining to strategic direction setting or establishing differentiation with respect to manufacturing, selling & marketing, product & process development and delivery Competency 10% (d) People / Team Management: KRAs pertaining to people development, training, performance management and employee satisfaction activities for all Appraisers with direct reports (e) Boundary Management / Coordination and Liaison: KRAs pertaining to liaising / coordinating with Government (local, state, central), Administrative, Regulatory, Statutory bodies and vendors / customers (external & internal)
*Titles in Italics would apply only to ABC & DEF grade officers

Competency 20%

Competency 20%

A,B,C grades

D,E,F grades

G,H,I grades

Select KRAs Broadly, three categories of KRAs can be selected / created: KRA 50% KRA 60% KRA 70%

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These would be defined in the system and the user would be able to choose from them, if required

These would be defined in the role

Refers to KRAs that are applicable to an incumbent by the virtue of role s/he is performing in the organisation

There could be incumbents performing certain tasks that might be of some other role existing in the same function or some other function e.g. Finance person in a location carrying out administrative duties

Additional KRAs

Defining KPIs for KRAs Key Performance Indicators (KPI) are specific indicators of performance to measure extent of achievement on set KRAs within a given time frame. Each KRA corresponds to specific KPIs defined to quantify or verify the extent of performance achievement in a given performance time frame. For each KRA selected, the Appraisee should select at least one KPI. In case of Special KRAs, s/he would define a KPI. Once the Appraisee has finalised the list of KRAs and corresponding KPIs, s/he will propose weightages and 5 levels of targets for each KPI. S/he will also use the stretch tool to determine the stretch involved in the targets at level 3.
Note: The Appraiser will finally view and accept / discuss / 'refer to Reviewer' the performance plan.

These would be defined by role holder in the particular year, if required

Refers to certain specific initiatives and goals that an incumbent might have during a year e.g. Special project of testing a new product in a refinery

Special KRAs

While implementing PMS, occasions might arise when there are different points of view between the Appraiser and the Appraisee. In situations such as these, the Appraiser and the Appraisee should attempt to achieve a consensus through a process of discussion. In most cases, the Appraiser is expected to arrive at an outcome that satisfies both the Appraisee and the Appraiser. In case the Appraiser feels the need, he/she can approach the Reviewer for appropriate inputs. The Reviewer and Appraiser would arrive at a solution through a process of discussion that would align the points of view of the Appraiser and Appraisee. The Appraiser would discuss the same with the Appraisee to close the issue. In the unlikely event of the need for further escalation, the issue can be taken to the Reviewer on a case to case basis. The Reviewer would have a joint discussion with the Appraisee and the Appraiser where the decision taken by the Reviewer would be final. It is mandatory for the Reviewer to view and approve all plans before the performance-planning phase is closed. Stretch Stretch is defined as the degree of difficulty built into targets. A consistent process for target setting ensures uniformity in degree of loading and stretch in targets for individuals. The target setting process in PMS works on the following 5 dimensions:

Role based KRAs

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q q q q q

Relative to previous achievements Degree of dependence on uncontrollables Degree of complexity Skill Requirements Need for innovations

of each target using a four-point (High, Moderate, Low, and Nil) scale along these 5 dimensions. Stretch needs to be calculated for the annual target at level 3 of the performance of the target. This is the target level for MoU and centre point of scale and also the logical definition of target based on MeetsExpectations definition of scale. The 4-point scale for each dimension is as follows: Moderate Standards of timeliness (deadlines), quantity, quality and costs of outcomes require some significant effort. Standards have been met once or twice before. Others' work or support is necessary for success, but it may be late or not complete. High Standards of timeliness (deadlines), quantity, quality and costs of outcomes require very significant, sustained effort. Requires standards that have never been met before. Others' work or support is necessary for success, but it may take a new direction at any point. Required steps, dependencies and time frames have not previously been planned, integrated, or executed.

During the performance-planning phase, the Appraisee proposes targets for each KPI. S/he then assesses the overall degree of stretch Dimension Relative to previous achievements Nil Nil Low Standards of timeliness (deadlines), quantity, quality and costs of outcomes can be met with normal effort. Standards have been regularly met before. Limited support from others is necessary for success of the initiative.

Degree of dependence on uncontrollables

Nil

Degree of complexity

Nil

Steps, milestones and resource requirements follow a tested route.

Target requires the coordination of more resources and elements than tested route.

Skill requirement

Nil

Existing skills may be challenged, but new skills are not required.

Required skills can be developed by training with minimal disruption.

Focused and dedicated time and resources will be necessary to gain required skills. Requires revolutionary innovations and technology.

Need for innovation

Nil

Can use standard technology and tools.

Involves some innovation in adapting existing tools or methods.

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Once the targets have been jointly assessed by the Appraiser and Appraisee along each of the 5 dimensions, the total points are averaged to arrive at a stretch score for a KPI. Stretch can reduce subjectivity but not eliminate it. Appraiser and Appraisee objectivity and process adherence are required for stretch to function adequately. Reviewer is expected to ensure balance in stretch across similar roles. The degree of Stretch varies across KPIs. But the overall stretch is the weighted average of the stretch on various KPIs. This will provide a perspective on the overall stretch of a performance plan. Competencies Definition - Behavioural Competencies are defined as "Skills and abilities described in behavioural terms that are coachable, observable, measurable, and critical to organisational performance. Competencies form the foundation of "what" capabilities are required for the successful execution of roles and responsibilities, thereby driving functional, unit and organisation performance" The list of generic / behavioural and leadership competencies are appended (Page 49) to this document. Functional competencies include technical skills and know-how required to discharge duties. The list and detailed models for functional as well as generic competencies are available on the IndianOil Intranet. Based on the varying demands of each role, competencies and their manifestation degrees vary. Therefore, for each role, applicable competencies from this list and the desired proficiency level for these have been identified and included in each UR. A detailed list of all competencies, generic and functional, and the proficiency levels defined for each has been provided in Appendix I. Although the Appraisee does not have the option to select competencies defined for his role, s/he may view the competencies and proficiency levels which are applicable to his role and he is expected to demonstrate on the job. Values Following are the values which have been defined by the organisation as essential to display for Grades A-F.

What Should I Demonstrate? 1. Passion for Excellence 2. Care for all stakeholders i.e. Customers, Shareholders, Employees and Community 3. Commitment to Organisation including its National obligations How Should I Conduct Myself? 1. 2. 3. 4. 5. Honesty Integrity Transparency Truthfulness Courage of Conviction

The complete descriptions will be made available on the IndianOil Intranet. Following are the values for grades G,H,I (as prescribed by the Public Enterprises Selection Board): q Fairness- decisions are made objectively, free from patronage and reflect the just treatment of employees and applicants. q Transparency- there is open communication about every aspect of managerial decisions which concern people. q Trust- trustworthiness leading to confidence - allow staff the freedom to grow and develop - relate to others on the basis of mutual respect - courage to stand by your convictions q Candour- frank and forthright - give and receive constructive criticism/suggestions - openly discuss performance deficiencies and take corrective action - appreciate good performance - be consistent in words and deeds - face up to your mistakes q Collaboration- working in tandem - be open in sharing information and in seeking suggestions / opinions
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be sensitive to the concerns of others honour your commitments encourage team work across departments/functions Be dedicated and committed to work, build commitment by encouraging wide participation in decision making process to the maximum extent possible.

Grades A,B,C Adaptability to change Collaboration Cost Consciousness/ Resource utilisation Dependability Quality of Work / Output

Grades D,E,F Managing Change Boundary Management Entrepreneurial Leadership Enhancement of Quality and Output

q Involvement- total commitment

q Flexibility- Ability to participate and adapt to changing circumstances using sound judgment be open to accepting new ideas be willing to learn from anyone and to do things differently Be prepared to operate and adapt to different environments be willing to experiment allow for freedom to fail, but learn from it too Honours promises and adheres to agreed system Respect for others’ time and space Exercise self control

The complete descriptions will be made available on the IndianOil Intranet. Following are the attributes which have been defined by the organization for Grades G,H,I. q Leadership abilities- demonstrates ability for guiding collective decision making for succession planning crisis management ability to take risks

q Willingness to accept challenge-

q Discipline- adherence to accepted norms

q Ethical Behaviour- Demonstrate honesty and sincerity in every action Apply sound business and professional ethics Show consistency with principles, values and behaviours

q Team building- demonstrates effectiveness in re-organising his/ her own department manage diverse and divergent views and group processes without losing sight of objectives

q Ability to build a strategic vision- Demonstrates ability to manage change Focus on long term issues Strategic thinking Translate vision into goals

The detailed set of values is available on the IndianOil Intranet. The Appraisee will also be able to view the set of values applicable to his level, in the e-PMS. Potential Following are the attributes which have been defined by the organisation for Grades A-F.

q Business sense- commitment to bottom-line results by enhancing revenue generation by addressing interest of customers and stakeholders balancing need for viable short and long term performance optimising unit / organisation's contribution while supporting corporate objectives

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q Communication skills- communicate ideas and information effectively through public speaking and presentation, ability to convert ideas through action plan and ensure acceptability within the organisation and performance at board meetings The Appraisee will be able to view these elements of potential which s/he is expected to demonstrate. Responsibility Editing performance plan In situations where, extraneous circumstances significantly impact performance plans, changes in the plans may be incorporated, e.g. Changes in business environment which may impact Key Results Areas, KPIs or targets of various individuals. Editing the performance plan is to be initiated by the Appraisee, the rationale for the same is to ratified by the Appraiser and the Reviewer before the change can be formalised into the system. Once approval is obtained from the Reviewer, the Appraisee is able to modify his plan and this then follows the same process as the initial performance planning module.

Facilitator/ Administrator

spotting and pursuing new business opportunities wherever possible

4

Reviewer

4

4

4

Performance Planning - Process steps, Roles and Responsibilities

Appraiser

4

4

4

Appraisee

4

4

4

4

4

4

Identify additional and special KRAs

Final approval of Performance Plan

Initiate performance planning phase for the year

Close performance planning phase for the year

Identify overall weightage for KPIs

Propose weightages for each KPI

Initiation of change in plan

Identify Role-based KRAs

Validate degree of stretch

Propose targets for KRAs

4 Ratification and sign off

4

Identify appropriate UR

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Achieve consensus

Process Step

4

4

4

Focus on behaviour that can be changed, not the person

Express confidence in the Appraisee's ability to improve

For Feedback and Counselling to be truly effective, it should be provided and received on an on-going basis. When used effectively, Feedback & Counselling are powerful means of positively impacting performance. Feedback and Counseling helps an Appraiser in both obtaining information and providing inputs on how an Appraisee is performing and whether or not he / she is headed in the right direction. It is also an opportunity for the Appraisee to solicit resources and help that may be required for enhancing his / her own performance. Most people are comfortable in providing positive feedback. However, they are hesitant to initiate a conversation that involves sharing of negative or unpleasant performance-related information. Such hesitation can be overcome by considering the importance of their feedback in correcting the performance level of the Appraisee, and the consequent benefit to the Appraisee's career. Feedback is of various types: q positive feedback q corrective feedback q feedback focused on identifying obstacles to performance q feedback for the purpose of sharing information etc.

Offer support to help or remove obstacles

The mid-year and final reviews are specifically focused on Feedback and Counseling and hence require the Appraisee and the Appraiser to have a formal feedback session.

Share your expectations for future behaviour

Together explore options for solving the problem

Define the impact on you and other members

The process of continuous Feedback and Counselling is an inherent and critical part of PMS. Tips for Giving Negative Feedback

Provide specific examples in your feedback messages

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Check to be sure clear communication has occurred

Provide timely feedback, both positive & corrective

Listen to the other person's viewpoints and ideas

Catch performance problems early while they are small

Tips for Giving Positive Feedback

Recognise good performance often

Solicit as well as provide feedback

Describe consequences of improved / not improved performance

Feedback and Counseling

Mid- Year Review Remember - Giving Feedback is like Giving GIFTS Goes both ways: Feedback should be a two-way exchange. It is critical to listen to the Appraisee to whom you are giving feedback. Initiated by the person who sees a need: Feedback should be initiated by the person who sees the need first. When Appraisee has requested feedback, he or she is less likely to be defensive. A climate conducive to giving and receiving feedback, and one that values honest communication, makes it easier for people to ask for feedback when it's needed. Frequent: Feedback needs to be provided on a regular basis. If the Appraisee is surprised by the message, feedback is not frequent enough. Timely: Generally, feedback that is given as close to the event as possible is most useful. However, timely doesn't necessarily mean that feedback must follow immediately after a triggering event, especially if there are emotions involved. Specific: Non-specific comments leave the Appraisee with insufficient information about what changes or improvements he or she might need to make. Base your feedback (positive, negative, or corrective) on observed behavior and facts, and not on inferences, assumptions, or what you've heard from others. The objective of a mid-year review is to ensure that performance management is not limited to "once-a-year report card" but has a mid-year process for reviewing and tracking achievements. It also reduces the scope for surprises at the end of the year and ensures that the Appraisee is always aware of expectations.

Appraisee will complete Self-Appraisal on KPIs against targets set for first 6 months

Appraisee will submit Self-Appraisal to Appraiser

Performance Diary The Performance Diary is a tool provided to the Appraisee to keep record of key information related to performance. The Appraisee can make entries as when required; all the entries will be stamped by the date and time entered. Every Appraisee entry is intimated to Appraiser and every Appraiser entry is intimated to Appraisee. The Reviewer is able to view the Appraisee's performance diary when he desires. The diary is expected to ease the effort of tracking key performance events/ activities. This would be used as a support document during performance reviews.

Mid Year Appraisal / review completed

Appraiser will discuss the review with Appraisee

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Mid-Year Review of performance for each individual is conducted during the month of October. This is initiated as a self-appraisal by the Appraisee and a review by the Appraiser. The Mid-Year Review does not result in a performance score, but is a half-yearly opportunity to record comments on performance issues. The Mid-year review is also an opportunity where under extraneous circumstances changes in performance plans may be incorporated; e.g. Changes in business environment which may impact Key Results Areas of various individuals. Final Appraisal, Review & Feedback Objectives Final Appraisal, Review & Feedback is an assessment phase when Appraisers assess level of achievement of KRAs, targets and routine responsibilities and demonstration of competencies for each Appraisee. The final performance review and feedback is undertaken in the month of April-May. Ratings and feedback will be given based on what the employee has delivered vis-à-vis the set and agreed performance plan. During the final appraisal, review and feedback phase, first the Appraisee undertakes a self-appraisal and gives a rating on all the performance parameters i.e. KRAs, Routine Responsibilities and Competencies. The Appraiser then does the assessment & rating. He/ she also reviews the actions taken towards achievement of the Appraisees's development plan. The Reviewer then reviews the ratings on KRAs, Routine Responsibilities and Competencies. At any stage the Appraiser and/or Reviewer can call for a discussion with the Appraisee. The final ratings have to be a consensus between Appraisee, Appraiser & the Reviewer. In case of a dispute, the Reviewer's rating will be treated as final and will feed into the Overall performance score of the Appraisee. Feedback and guidance to the Appraisee should be provided on a continuous basis throughout the year. PMS provides the Appraisee and the Appraiser opportunity to input the key achievements as and when they happen through an on-line personal diary. This will also help capture all performance-related information and keep continuous focus on performance.

The Final Review Process

Appraisee will complete Self – Appraisal on KPIs & submit to the Appraiser

Appraiser will review Self Appraisal and performance outcomes of the Appraisee

Appraiser will determine Rating on each KPI, Competency, value and potential element

Reviewer will validate each rating and make changes if any

System will calculate the PMS Score as per weightages of elements and overall weight of sections based on KPI, competencies, values and potential

Concludes Final Review Phase

Countersigning officer validates and moderates final PMS rating as per current process

Only the Final score on KPIs is shared with Appraisee

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All performance ratings in PMS are done on a 5-point rating scale. The scale description is different for different sections. KPIs KPIs have a 5-point scale with each point on the scale anchored to target metrics - reflecting degree of performance achievement against each KPI. The target metrics against the 5 levels of achievement have been proposed by the Appraisee, validated by the Appraiser and reviewed by the Reviewer during the performance-planning phase. The following is an illustration of the scale: Level Level Level of Target Achievement (illustrative for Sales in INR Crores) 120 crores 130 crores 145 crores 155 crores 170 crores

2 3 4 5

Moderately Below Expectations Meets Expectations Moderately Above Expectations Significantly Above Expectations

2 Needs Improvement

1 Unsatisfactory

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KPIs

39

Significantly Below Expectations

Moderately Below Expectations

Meets Expectations

1

Significantly Below Expectations

3 Contributor

Moderately Above Expectations

4 Achiever

Significantly Above Expectations

Rating Scale 5 Outstanding

Competencies 1 Learner
40

2 Development Area 3 Capable 4 Strength

5 Role Model

Has not yet demonstrated this competency

Sometimes demonstrates this competency Often demonstrates this competency

Always demonstrates this competency

Encourages & influences others to display this competency

Values 1 Learner
41

2 Development Area

3 Capable

4 Strength

5 Role Model

Does not demonstrate these values

Sometimes demonstrates some of these values

Often demonstrates most of these values

Always demonstrates all of these values

Encourages & influences others to display these values

Encourages & influences others to display this attribute

Calculation of stretch As discussed in the section on performance planning, stretch is the degree of difficulty built into the target at the time of performance planning. The year end rating on each KPI will be multiplied by the stretch on it to get the performance score for each KPI. This process will ensure that Appraisees whose targets are stretched are not disadvantaged as compared to those whose targets have lower stretch. Stretch has been considered for IOCL given the need to address issues on loading in PMS targets which may be accentuated given the planned linkage of KRA/KPI section PMS scores to Individual PIS Design.
5 Dimensions of Stretch Nil Relative to the previous years 0.25 0.25 0.25 0.25 0.25 Total Score Stretch 1.25 0.25 Dependence on uncontrollables Complexity Skill requirements Need for Innovation Degree of Stretch Low 0.5 0.5 0.5 0.5 0.5 2.5 0.5 Medium High 0.75 0.75 0.75 0.75 0.75 3.75 0.75 1 1 1 1 1 5 1

5 Role Model

Sometimes demonstrates this attribute

2 Development Area

Often demonstrates this attribute

3 Capable

Always demonstrates this attribute

4 Strength

The performance score is calculated based on performance on KPIs. KRA Weight Rating Stretch Individual KPI Score (KPI weight *rating *stretch) 0.51 0.90 1.52 0.12 3.05

KPI 1 Has not yet demonstrated this attribute KPI 2 KPI 3 KPI 4 KPI Score 1 Learner

20% 30% 40% 10%

3 4 4 2

0.85 0.75 0.95 0.60

Potential

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The following is an illustration of how overall performance scores can be calculated for individuals: PMS Calculation Sheet GHI Level KRA 50% KPI 1 KPI 2 KPI 3 KPI 4 KPI Score Competency 20% Competency 1 Competency 2 Competency 3 Competency Score Values 15% Values 1 Values 2 Values 3 Values Score Potential 15% Potential 1 Potential 2 Potential 3 Potential Score Overall Score Weight 20% 30% 40% 10% Weight Stretch 0.85 0.75 0.95 0.60 Rating 3 4 4 2 Rating Individual KPI Score (weight*stretch*rating ) 0.51 0.90 1.52 0.12 3.05 Individual Competency Score (weight * rating) 1.00 1.33 1.00 3.33 Individual Values Score (weight * rating) 1.33 1.00 1.33 3.67 Individual Potential Score (weight * rating) 1.33 1.67 1.33 4.33 3.391

33% 33% 33% Weight 33% 33% 33% Weight 33% 33% 33%

3 4 3 Rating 4 3 4 Rating 4 5 4

Overall Score = (KPI rating * KPI Weight + Competency rating * Competency Weight + Values rating * Values Weight + Potential rating * Potential weight) Overall Score = (3.05*50% + 3.33*20% + 3.67*15% + 4.33*15%) = 3.391

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Facilitator/ Administrator

Managing Role Changes PMS provides for handling role changes arising from transfers, promotions, change in responsibility allocation etc. When a role change happens, the performance appraisal and review is done before transitioning to the new role, except for incumbents who have occupied the previous role for a period of less than three months. It is to be noted that the individual undergoing a change in role needs to undertake a fresh performance planning exercise as per guidelines provided in the section on performance planning. For the purpose of calculating overall performance rating for individuals who have undergone a change in role, a time weighted average performance rating of the roles performed by the individual is taken. In the case of new recruits who come on board during a performance cycle, if s/he spends less than 3 months in the performance cycle, his or her performance will not be appraised and reviewed. The following is the list of competencies that form a part of PMS:

Performance Appraisal, Review & Feedback - Process steps, Roles and Responsibilities:

The Appraisee will be communicated the Performance score on KPIs upto reviewer level. This Performance score will be input into the calculation of final performance rating. However the final rating (Significantly Below Expectations/ Moderately Below Expectations/ Meets Expectations/ Moderately Above Expectations/ Significantly Above Expectations) would be arrived at.

Reviewer

Responsibility

Appraiser

4

4

4

4

4

Appraisee

4

4

4

Initiate appraisal & review phases (mid-year & final)

4

4

Communication of performance score and feedback to Appraisee

Commenting on performance

Final Appraisal & Review

4 Close appraisal & review (mid-year & final)

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Achieving consensus

Year end appraisal

Mid Year Review

Year end review

Process Step

Self Appraisal

Self appraisal

Closure

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Appendix I Competency Definitions & Proficiency Levels

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22)

Planning & Organizing Strategic Orientation Change Leadership Championing Customer Focus Performance Focus Seizing Opportunities Personal Effectiveness Team Leadership Developing Self and Others Impact and Influence Strategic Thinking Practical Creativity Openness and Learning Customer Service Orientation Achievement Orientation Analytical Ability Decision Making Problem Solving Negotiation Skills Team Effectiveness People Development Communication skills

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Planning and Organizing Competency definition Establishes systematic action plans for self and others to assure accomplishment of specified objectives

Strategic orientation Competency definition It is the ability of having the "big picture perspective", the ability of being able to assess long term implications of what is being done today and articulate strategies that need to be adopted / designed to achieve long term goals. This ability requires the individual to have a sound knowledge of the organisation and its environment and be aware of global developments. "Conceptual orientation" is evaluated as a key building block for an individual to be able to articulate strategy. It is the ability of an individual understanding a situation or problem by putting the pieces together, seeing the larger picture. Proficiency Level 1 Deep understanding of the organisation and environment q Demonstrates understanding of the overall organisation value creation cycle q Displays a good understanding of the environment organisation, industry understanding, global developments, etc. q Displays a good understanding of initiatives in own area and how they influence overall organisational strategy. q Demonstrates ability to use financial data for business decisions - (EPS; revenue/profitability analysis; handling of debt; market capitalization, etc). Proficiency Level 2 Ability to construct and articulate strategic intent q Is able to use multiple sources such as knowledge of the environment (competition, global development, etc.), knowledge of the organisation, into a meaningful strategic intent for the organisation/ division/ functional area q Demonstrates ability to analyse a business situation in detail pros and cons of business options possible q Displays the ability to do scenario building

Proficiency Level 1 Ability to plan and organize for self q Develops schedules to accomplish work q Develops a personal organizational system and work routine (files, to-do lists, paperwork, pending orders) that facilitates delivery of work q Prioritizes activities and issues on daily, weekly, and monthly basis and reworks plans as required

Proficiency Level 2 Ability to do complex planning for self and team q Clearly outlines the work, deliverables, and timelines to team members, if any and helps them work out action plans q Establishes a course of action to accomplish a specific goal; plans proper allocation of time and resources. q Analyzes cost-benefit trade-off and focuses on activities that have the greatest impact q Is aware of inter-relationships among different activities and plans work assignments and allocates resources accordingly

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Proficiency Level 3 Converts long term vision into strategy q Anticipates situations well in advance (1-3 yrs) and is able to draw the contours of the trends and bases inferences on these to articulate a vision q Communicates his vision of the future to the key stakeholders and the workforce at large and obtains their commitment q This level is characterized by individuals that have a deep understanding of the business today and going forward. They have the ability to be able to isolate the key drivers from an overall complex division / organisation strategy and hence be able to focus self and others on influencing those drivers

Change leadership Competency definition It is the ability to question status quo and to change or easily accept changes in own organisation or job area. It is defined as the skills, knowledge and commitment to adapt, shift perspectives, and use different approaches to meet diverse and changing organisational requirements. The superior performers are differentiated in this competency by element of "innovation" in the change process, and the "complexity" of change involved. Proficiency Level 1 Adaptability to change; questions status quo q Understands the changes in the business context and responds to adapt to the new situation q Questions status quo; does things (to improve performance) that have not been done before in that job before, but may have been done elsewhere in the organisation q Determines what needs to be done differently to achieve progress and builds a case for change Proficiency Level 2 Conceptualises change; acts as a leader/sponsor of change q Acts as a leader/sponsor of change (i.e. articulates the need for change, mobilises people and resources, actively leads change processes, recognises and rewards required behaviours and is willing to deal with behaviours / people blocking change) q Leads change by doing something new and different for the company but not necessarily new for the Industry q Acts as a sponsor of change at the function/division levels (including all behaviours detailed in level 1)

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Proficiency Level 3 New to the Organization/ Industry; (organization wide impact) q Leads change by doing things that are unique, cutting-edge, and new to the industry q Challenges fundamental and basic organisational principles and generates new alternatives or solutions in order to ensure continued organisational success q Acts as a sponsor of change at the organisation/industry levels (including all behaviours detailed in level 1)

Championing customer focus Competency definition "Championing customer focus" is the ability of a leader to orient and drive self and others for satisfying customer needs. Customer Orientation implies an understanding of the importance of service to the customer. It involves focussing efforts on discovering and meeting the customer needs. The customer may be an external or internal customer. Proficiency Level 1 Addresses explicit needs q Responds and corrects service problems promptly and nondefensively q Demonstrates ability to do simple things that delight the customer Proficiency Level 2 Addresses implied needs; becomes a customer advocate q Seeks information about the real, underlying needs of the customer, beyond those expressed initially and match these to available products or services q Gets "under the skin" of the customer's thinking process, decision making process, and hence is able to do simple things that delight the customer q Puts in place processes to get genuine feedback from customers in a structured manner and on a periodic basis q Role models customer focused behaviours through regular personal contact with key customers

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Proficiency Level 3 Business partner q Works with the customer as a business partner to identify underlying needs and develop products and services to fulfill these needs q Works with a long-term perspective in addressing the client needs; plans trade offs for long-term gains. q Initiates actions that have tangible improvement on the business (profitability, growth) of customers q Creates a value proposition that makes the customer seek out IOCL for products / services q Role models customer focused behaviours through regular personal contact with a variety of customer segments

Performance Focus Competency definition "Performance focus" is a desire for doing one's own work well or for competing against a standard of excellence. The focus of individuals demonstrating this competency is on the outcome and on over-achieving the outcome. An individual demonstrating this competency may set standards based on his/ her past performance or performance of others or those based on innovation. Proficiency Level 1 Creates Own Standards of Excellence and Strives to Improve Them q Uses personal methods of measuring outcomes against a standard of excellence (not imposed by the organisation) q Demonstrates ability to plan in detail for goal achievement q Demonstrates a strong personal belief to succeed q Demonstrates ability to persist in actions over a long period of time q Demonstrates ability to maintain focus on goals inspite of diversions Proficiency Level 2 Persists in effort q Makes specific changes in the system or in own work to improve performance, without any specific performance improvement standards set q Sets challenging goals for self and others (a challenging goal is one which has a 50-50 chance of achievement - it is a definite stretch, but not unrealistic or impossible) q This level is characterized by people who persist in their efforts to meet goals that maybe new to the division/ organisation

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Proficiency Level 3 Sets new benchmarks in performance q Sets up benchmarks in performance, which are international class q Takes numerous sustained actions over time in the face of obstacles to reach very challenging goals. This level incorporates significant levels of innovation for achieving set goals

Seizing Opportunities Competency definition "Seizing opportunities" is a bias for action. It includes the ability of taking ownership for decisions, being decisive, displaying calculated risk taking and business savvy. These capabilities help enhance job results, avoid problems and find or create new opportunities. The differentiating competency here is "entrepreneurial effort" - taking ownership and ensuring that the opportunity is capitalised upon.

Proficiency Level 1 Bias for action; logical q Demonstrates a clear bias for action q Demonstrates ability to take initiative where the situation requires (within domain) / (even outside his domain) q Acts quickly and will be decisive in a crisis (where the norm is to wait, "study", and hope the problem will resolve itself) q Demonstrates ability to use a logical and rational thinking process for decision making

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Proficiency Level 2 Spots opportunities; displays business savvy q Demonstrates ability to spot opportunities within / outside his domain q Displays business savviness while making critical decisions has sound business intelligence and uses this to identify opportunities; has an understanding of business economics, etc. q Takes ownership for decisions in his area, and decides to moves ahead in organization's interest, even without availability of all information required for decision-making q Demonstrates ability to spot opportunities in the environment that are not obvious to others q Has the good judgment to understand and act on situations where there may be short-term losses but much bigger gains in the long term Proficiency Level 3 Treads "where others fear" - deep entrepreneurial spirit q Makes extra-ordinary heroic effort - acts without formal authority, takes personal risks, to get the job done (the emphasis must be on meeting the needs of the job, not on defiant norm breaking) q This level is characterised by decisiveness and risk taking for initiatives/major problems /new projects where there is search for a significant organizational level achievement but with a corresponding risk of "visible failure"

Personal effectiveness Competency definition "Personal Effectiveness", for a leader at IOCL, is the ability to inspire others through displaying qualities of a role model - self-belief, self-confidence, ability to walk the talk and integrity. A differentiating competency for personal effectiveness is "sensitivity to others", the ability of wanting to understand other people, getting along with people and communicating freely across cultural barriers. It is the ability to hear accurately and understand the unspoken or partly expressed thoughts, feelings, and concern for others. Fundamental to this competency is a high level of self-awareness. Proficiency Level 1 States own stance clearly q States confidence in own judgment q States own position clearly and confidently in discussion with seniors / others q Is transparent; has a reasonable understanding of his abilities - is able to admit gap in his understanding / competence /abilities in specific areas to others q Understands current unspoken thoughts, concerns or feelings; or get others to take actions desired by the speaker q Attentively listens to what is being said and compares with his own experience q Gets/ facilitates others to talk/ verbalise their emotions

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Proficiency Level 2 Actions support verbal expressions (walk the talk) q Actions in support of verbal expressions - demonstrates values (self-belief, conviction, integrity) continuously in his actions q Very high conviction in his abilities q Has a very high level of self-awareness (understanding own emotions /strengths /weaknesses) q Understands underlying problems- the reason for someone's ongoing or long-term feelings, behaviours or concerns

Team Leadership Competency definition "Team Leadership" is the ability of a person to set direction, inspire others, and channelise the energy of the group in a certain direction. This is not always a level of formal authority. Proficiency Level 1 Promote Team Effectiveness q Publicly crediting team members, etc. q Uses formal authority and power in a fair and equitable manner q Is able to rally key team members around during times of crises Proficiency Level 2 Take care of the Group (resourceful for the team) q Undertakes activities that would indirectly promote team spirit to promote team morale and productivity q Protects the extended team within the organisation q Communicates the big picture; shared purpose q Demonstrates ability to enthuse the group through his personal energy and passion Proficiency Level 3 Communicates a compelling vision q Transforms individuals beyond their own expectations q Has a genuine charisma, communicates a compelling vision, which generates excitement, enthusiasm and commitment to the group vision q Ability to create a shared vision by encompassing the vision of other team members

Proficiency Level 3 Is a role model q Is seen as a universal role model for organisational values like - integrity, authenticity, confidence and self-awareness q Enjoys a very high credibility amongst peers, superiors and subordinates q Has the ability to leverage his emotions to energise others as well as create positive results. Typically he can convert emotionally laden situations to build stronger bonds in teams rather allowing them to create divides q Understands complex causes of others' long-term behaviour patterns, attitudes or problems

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Developing Self & Others Competency definition This competency has two facets - "developing others" and "developing self". In case of "developing others", this competency is demonstrated by a genuine intent to foster the learning or development of others specifically for the benefit of the people and organisation in the immediate and long term. Delegation and empowerment are key enablers to foster development of subordinates. This competency also assumes that an individual has an accurate assessment of his/her subordinate's strengths and weaknesses. In case of "developing self", this competency is about the desire and pursuit of deep continuous learning of the areas handled and the curiosity to learn areas beyond specific responsibilities. The individual has a motivation or disposition for acquisition and distribution of expertise.

Proficiency Level 2 Empowers with shared accountability q Delegates full authority and responsibility with enough space to do a task in their own way, including the opportunity to make and learn from mistakes in a non-critical setting q Arranges appropriate and helpful training, assignments or other experiences with a specific purpose of fostering the other person's learning and development q Exhibits active curiosity to discover new things, explores beyond one's immediate field q Demonstrates high degree of excellence in complex functional areas q Updates knowledge from long-term perspective

Proficiency Level 3 Proficiency Level 1 Gives specific and appropriate Feedback; follows it up with action plans q Is able to create learning opportunities through delegation q Is able to give negative feedback q Ensures that team members get corrective feedback on performance in the manner of an action plan q Presents a balanced view of someone's specific strengths and weaknesses. Thus he is able to identify top performers q Updates knowledge from medium term perspective - makes self aware of the latest information, actively keeps skills up to date q Actively seeks feedback from others and uses it to understand strengths and weaknesses in order to improve job performance Long term leadership development q Has a track record of creating star performers (in leadership positions) through driving focussed development over a long time frame q Arranges for recognition (for e.g., promotion/career growth) for the individual(s) as a reward for his development. This behaviour is rated highly because generally an individual has to have developed people well to be able to reward them for responding well q He is an acknowledged expert in his field within and outside the organisation q Makes major efforts to acquire new skills and knowledge, or maintains an extensive network of technical / professional contacts to keep abreast of the latest ideas q Willingness and track record of developing "expertise" in area other than core area q This is often the kind of person selected to work in uncharted waters

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Impact & Influence Competency definition "Impact & Influence" competency reflects a person's ability to influence the thought process of others towards a favourable strategic outcome. This implies an intention to persuade, convince, influence or impress others in order to get them to support the individual's specific agenda. Proficiency Level 1 Tunes in to the recipient of the communication q Adapts to discussion to appeal to the interest of others q Selects the most appropriate mix of persuasion, request, coercion, etc best suited to the situation Proficiency Level 2 Uses Indirect Influencing Strategies q Uses deep knowledge to convince others q Uses experts or third parties to influence; winning the consent of the final person through managing an important intermediary q Is able to think a couple of steps ahead of the other party Proficiency Level 3 Uses Complex Influencing Strategies (Impact and influence significant changes to process/ decisions/ preference etc) q Uses complex/ tactful influencing strategies tailored to specific situations q Take many different actions involving multiple stakeholders from inside and outside the organisation in order to create the necessary support to push through organisation level changes q Makes complex staged arguments in order to convince others q Facilitates consensus building through necessary pre-work like assembling coalition, build "behind the scene" support for the ideas, deliberately gives or withholds information to have specific effects

Strategic Thinking Competency definition Draws a logical connection between organization vision and strategy with own area of work and for employees supervised by him Proficiency Level 1 Views his role in relation to the larger organization q Understands how own role contributes to the organisation q Understands the broad level strategy of the organisation q Prioritises work in alignment with business goals q Acts in accordance with strategies, objectives, or goals developed by others Proficiency Level 2 Understands long term organization implications of actions q Aligns current actions with strategic goals q Assesses and links short term day to day tasks in the context of long term business strategies q Diligently considers whether short term goals will meet long term objectives q Reviews own actions against the organization' s strategic plan q Focuses on the 'big picture' when considering possible opportunities or projects, or thinks about long term application of current activities q Focuses on long term issues, problems, or opportunities, in addition to day-to-day activities

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Practical Creativity Competency definition Utilises learning and resourcefulness to generate ideas, innovate, recognise opportunities and develop enterprising solutions Proficiency Level 1 Adopts a creative outlook in current work situation q Looks at situations from multiple perspectives q Generates & implements new insights into procedures & methods of doing things q Consistently challenges himself to generate innovative ideas that contribute to developing new products/ practices/ solutions q Willingly expresses his new ideas and is open to trying them, without fear of failing Proficiency Level 2 Drives self and team to innovate on products and solutions q Creates innovative products and solutions q Encourages positive conflict to stimulate innovative solutions q Encourages work group members to generate new ideas without fear of failure q Filters new ideas generated based on their risk- return profile and carries forward those ideas that can drive growth

Openness and Learning Competency definition Utilises learning and resourcefulness to generate ideas, innovate, recognise opportunities and develop enterprising solutions Proficiency Level 1 Willing to try out new approaches q Works as active change agent for his department q Exhibits active curiosity to discover new things, acquires information & adapts behavior & approaches in dealing with changing situations & people q Expert in his functional area Proficiency Level 2 Proactive approach to learning for self and team q Stimulates others to learn & act as active change agent for the company & bring quantum improvement q Demonstrates a commitment to learning & change in an effort to acquire expertise ranging from simple continuation to mastering new fields

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Customer Service Orientation Competency definition Approaches all objectives and work activities with the recognition that the success of the business depends on satisfying the customer- internal and/or external Proficiency Level 1 Identifies internal and external customer q Knows who the customer is- internal or external- for own services and products q Demonstrates the ability to see issues from the customers perspective q Responds to customer requests and concerns promptly q Considers every customer interaction important whether internal or external q Gives priority to delivering superior customer value in terms of quality, cost and time

Proficiency Level 3 Goes the extra mile to identify and service customer requirements q Proactively identifies customer needs, provides solution (standard or customized) and ensures win-win relationship with customers q Looks for ways to accommodate customer requests that are exceptions to established norms but are consistent with the principles of the organization q Conceives new solutions / delivery mechanisms to meet customer needs q Develops and tracks objective and subjective dimensions of customer satisfaction q Interprets customer feedback with the internal team to improve future value delivery

Proficiency Level 2 Ensures articulated customer needs are met q Involves customer in decision making and choosing options q Keeps customer informed about all important developments q Goes the extra mile to ensure that customer needs are met. q Deliver solutions that meet their existing needs q Makes concrete attempts to add value to make things better for the customer in some way

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Achievement Orientation Competency definition Exhibits drive and energy towards achieving goals and results; maintains and adheres to high performance standards Proficiency Level 1 Takes responsibility for own performance q Follows through to ensure successful completion of task q Focuses on achieving goals and results, re-examines and adjusts wherever necessary q Conveys a sense of urgency and drives issues to closure; persists despite obstacles q Takes responsibility for driving his own performance by adhering to work norms and striving to exceed his targets q Uses available resources to meet desired results Proficiency Level 2 Drives performance proactively and anticipates hurdles q Ensures optimal allocation of resources (people, material, time) towards the achievement of results q Identifies potential obstacles to achieving results and removes obstacles q Takes numerous sustained actions over time in the face of obstacles to achieve goals q Resolves conflicts to allow the team to focus on achieving results

Analytical Ability Competency definition Understands a situation by breaking it apart into smaller pieces and tracing the implication of a situation in a step by step causal way Proficiency Level 1 Conduct basic analysis q Break problems into simple lists of tasks or activities Proficiency Level 2 Ability to use cause-effect relationships towards decisions q Analyses relationships among a few parts of a problem or situation q Makes simple causal links (A causes B) or pro -and - con decisions. q Sets priorities for tasks in order of importance Proficiency Level 3 Ability to conduct complex analysis and understand complex inter-relationships q Analyses relationships among several parts of a problem or situation. q Breaks down a complex task into manageable parts in a systematic way q Recognises several likely causes of events or several consequences of actions q Generally anticipates obstacles and thinks ahead about next steps

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Decision Making Competency definition Makes decisions, renders judgment, takes action or makes commitments after considering the available courses of action, organizational priorities and value to others Proficiency Level 1 Ability to take decisions of a routine nature q Makes decisions based on the ethical principles of the organisation q Is able to take routine decisions in own work area q Seeks inputs from others in order to make informed and appropriate decisions q Determines when to take decisions versus escalating the same q Assists superiors in making decisions by providing them the requisite information

Problem Solving Competency definition Visualises problems proactively; generates and evaluates alternatives to develop an appropriate course of action within established constraints Proficiency Level 1 Can view problems objectively and address q Approaches problems with curiosity and an open mind q Doesn't get overwhelmed by seemingly complex situations q Uses his/ her common sense and experience to identify problems q Identifies and obtains information needed to understand and solve problems

Proficiency Level 2 Proficiency Level 2 Ability to take decisions on complex matters using complex information q Determines when decisions outside the policy framework are warranted and acts accordingly q Takes ownership for decisions made q Makes fact-based decisions/ recommendations q Bases decisions on a logical analysis of information; derives meaningful conclusions from facts available and by sorting relevant information q Learns from failures or poor judgement in the past Can conduct effective diagnosis where required q Diagnoses problems effectively q Adopts a structured hands on approach towards solving problems q Has presence of mind and can think on his/ her feet Makes prompt and sound decisions when faced with problems

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Proficiency Level 3 Can resolve complex problem through effective prioritization q Systematically gathers and analyses relevant information to plan a course of action q Generates and evaluates alternative methods of solving problems to yield more effective results q Finds ways to condense a large amount of information to a useful form q Effectively identifies and prioritises issues that need to be addressed q Thinks of creative alternatives to problems; encourages others to think differently in the context

Negotiation Skills Competency definition Is able to get people or groups with differing/ opposing wishes or views to reach a mutually satisfactory agreement Proficiency Level 1 Ability to appreciate and work towards win-win solutions q Is aware of the importance of negotiation and understands the principles behind it q Realises that winning at all costs is not important and a win-win solution is most effective q Argues persuasively q Prepares well for every negotiation Proficiency Level 2 Ability to use multiple approaches to achieve desired outcome q Researches the interests of the other side and uses own understanding to make position stronger q Finds ways of gaining commercial intelligence about external stakeholders, and researches both the organization and the individual that he will be negotiating with q Uses different approaches to achieve the desired objectives

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Team Effectiveness Competency Definition Leads and works in teams as required by his role. Transcends boundaries between various constituents of the team to motivate them towards achieving the shared vision and team objectives Proficiency Level 1 Effective team player q Works effectively in a team, capitalizing on others' strengths q Displays commitment to the team goals, placing the team's interest above personal interest Proficiency Level 2 Can leverage team synergies and also lead a team effectively q Ensures that the work group functions effectively as a team, coordinating efforts towards a common goal and rising above individual differences. q Achieves synergy by leveraging the strengths of different individuals in the work group q Helps to keep morale and levels of performance high even during periods of intense pressure and heavy volumes of work

People Development Competency Definition Guides others towards positive outcomes by providing them with clearly defined objectives, feedback and advancement opportunities Proficiency Level 1 Committed to development of others q Provides ongoing feedback to colleagues, co-workers and subordinates q Takes action in transferring and sharing knowledge and expertise Proficiency Level 2 Strong conflict management skills and ability to provide developmental direction q Gives constructive feedback and direction that specifically defines what actions were effective and what areas need improvement q Corrects unproductive behavior with action plans q Deals with conflicts and sensitive situations in a manner that helps everyone remain open minded q Shares knowledge and develops subordinates, if any q Makes recommendations on development opportunities for workgroup members

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Communication Skills Competency Definition Displays the ability to grasp and process information, and to articulate thoughts and ideas to convey/ use information in an open, transparent and meaningful manner Proficiency Level 1 Clarity of oral and written communication q Verbally conveys information so that intended message is understood by others q Develops written information that clearly and concisely conveys information to reader q Listens carefully and asks probing questions to obtain more clarity Proficiency Level 2 Ability to structure complex communication q Presents and structures information (both written and verbal) in a prioritised manner that is clear and easily understandable q Adapts to different individuals and tailors communication style accordingly q Uses direct persuasion to achieve the desired result / action / commitment from others

Proficiency Level 3 Proactive approach, extensive use of non-verbal cues q Uses active listening skills to understand non-verbal cues during discussions q Transfers ideas and opinions clearly and effectively through various media by summarizing into key points what others can easily understand q Develops clear and logical arguments that can compel others to change or alter their opinion q Anticipates queries and prepares thoughtful responses

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Appendix II : Frequently Asked Questions

Question: Who are the people covered in e PMS? Answer: All officers in Grades A-I are covered in e PMS.

Question: When am I assigned my unique role? Answer: Incumbents have been mapped to unique roles, any significant change in the role (e.g. transfer), will require assignment of a new role to you. This will be done by the appropriate HR Facilitator/ Administrator.

Question: How have the KRAs and KPIs in my role been arrived at? Answer: The performance measures cascaded from IOCL's MOU and business plans and strategies applicable to your Divisions, Area/Department are decided by your Function/ Unit Head and cascaded to your Area/Department Head These have been decided at workshops and verified by functional experts. Inputs from sample role holders were obtained across IOCL.

Question: When does the Performance Planning phase start? Answer: The performance planning phase starts at the beginning of the performance year. Going forward this would be in the month of April. The concluding month would be notified in each cycle.

Question: How do I set targets for the KPIs? Answer: Following the current principles for target setting, use the Stretch Tool to set targets at 5 levels of performance for each KPI. .

Question: What is a quality index KPI? Answer: For KRAs where you cannot measure clear outcomes in an objective manner, you, along with your appraiser, may evolve a quality index based on pre-defined parameters and measurement scale.

Question: How and why do I choose Additional KRAs?

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Answer:

In case you find the KRAs allocated to your role insufficient, from the list of KRAs provided in the search option, you may select KRAs belonging to any division/ function/area/role, which you find critical and relevant to you in the Performance Period.

Answer:

When assigning weights keep in mind the criticality of the KRA, and the nature of effort and time that would be required to accomplish them. It is recommended that the minimum weightage of any KPI should be 5%.

Question: How and why do I write special KRAs? Answer: If you feel that there are certain KRAs that are not a part of either the role-based or additional list of KRAs but are critical to your role in the Performance Period, write them in the section of Special KRAs. Keep in mind that while writing the KRA, the KPIs and targets are clearly defined.

Question: What do I do if I do not agree with the changes that my Appraiser has recommended in my Performance Plan? Answer: You need to have a discussion with your Appraiser and resolve the situation. In case disagreement resolution is not possible at your level, the matter would then be refered to the Reviewer who would resolve the issue.

Question: How many KRAs can I choose? Answer: You can choose upto a maximum of 18 KRAs (12 Rolebased + Additional and 6 Special.) Typically a performance plan should have 7-8 KRAs. The maximum limit could be changed in subsequent performance cycles.

Question: How are performance measures cascaded? Answer: Performance measures are cascaded, by identifing roles that can impact the outome of the measure.

Question: What happens to my Performance Plan after I've submitted it to my Appraiser? Answer: After you have submitted your Performance Plan to your Appraiser, he/she will have a discussion with you on the plan and add his/her inputs to it. After finalising the plan with you, your Appraiser will send it to your Reviewer and countersigning officer for a final sign-off. It then becomes your Performance Plan for the year.

Question: How do I use the Stretch tool while setting my targets? Answer: Define stretch on the 5 factors provided in the stretch tool. The system will calculate the total stretch for each KPI target. For each KPI in the performance plan, you will write out targets at level 3 (target level) for 6 months as well as a year. You will then define targets for four other levels of performance (1,2,4 and 5) with level 5 being the most difficult performance. For the 12 months target at level 3, you will use the stretch tool and choose levels of stretch on each of the 5 factors provided in the stretch tool. The system will then calculate the total stretch for each KPI. This process would be repeated for each KPI in the performance plan.

Question: What happens if my Appriaser does not agree with my plan in any way? Answer: The Appraiser marks the plan for discussion and places his comments in the space provided. You then have the option to modify the plan and resubmit it. In case the Appraiser still does not agree, he can refer the plan to the Reviewer with comments. The decision of the Reviewer will be final.

Question: Who ensures consistency in stretch in my team? Answer: Your Appraiser and your Reviewer will ensure that the degree of difficulty in targets is consistent across the team.

Question: Who can I approach to obtain agreement with my Appraiser on a difference in point of view? Answer: In most situations, your Appraiser will be able to resolve
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Question: How do I assign weights to KPIs?

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the difference in points of view. Your Appraiser may approach your Reviewer for his intervention and decision. If the situation requires, a three-party discussion may take place between you, your Appraiser and Reviewer. Question: Will my Appraiser be informed of changes that I make on my plan? Answer: You cannot make any change in your plan without the Approval of your Appraiser and subsequently that of your Reviwer

required for the purpose of obtaining feedback. Question: How will my efforts be tracked in this new system? Answer: The system will not track your efforts, however it will record your Performance.

Question: What do I do in case I have significant disagreement on an issue with the Appraisee? Answer: Your should try and resolve the disagreement between yourselves. In case resolution is not possible at your level, the matter would then be refered to the Reviewer who would resolve the issue.

Question: When can I discuss any changes required in my Performance Plan? Answer: You can discuss the need for change in your Performmance Plan with your Appraiser at any time during the performance cycle, when significant changes are required. Changing your Performance Plan requires prior approval from your Appraiser and Reviewer. The modified plan requires the Reviewer's sign-off for finalisation.

Question: What do I do if I do not agree with the ratings that my Appraiser has given me at the end of the year? Answer: Your Reviewer will intervene and will take a final view on the ratings.

Question: What do I do if I get transfered in the middle of the performance period? Answer: If you get transferred in the middle of the Performance Cycle, you need to close the Performance Period, thus having a discussion with your Appraiser before moving to your new role. When you move to you new role you would need to do your Peformance planning for the Performance Period that lies ahead. A minimum period of 3 months in a role will be necessary for the performance plan to be made, appraised and recorded in the e-PMS system.

Question: Can I request for a new Unique role for my Appraisee? Answer: If the available URRs cannot be mapped to your Appraisee, you can request for the creation of a new unique role through your HR Facilitator. However, this would require necessary approvals.

Question: How do I know if my performance plan has been approved? Answer: Your e-PMS screen will indicate once the performance plan has been approved. You will also get an email message.

Question: What do I do if my Appraiser changes in the middle of the performance period? Answer: Change of Appraiser will not impact your Performance Plan.

Question: How often can I go to my Appraiser for a formal or informal discussion about my performance? Answer: While a formal discussion on performance will take place twice during the performance cycle, you are encouraged to approach your Appraiser as many times as you feel is

Question: Who gives my Final Score? Answer: Your Final Score is the score given by the countersigning

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officer as per current practice. Qusetion: Why is feedback so important in Performance Management? Answer: Feedback is very important as it tells the Appraisee how he/she is performing and how performance can be improved.

Answer:

Your Performance Plan is complete if Your Performance Plan has been discussed with your Appraiser and targets and weightages have been agreed upon You know how your performance will be measured at the end of the year Your Appraiser & Reviewer have approved your Plan

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Question: Will my assigned unique role change every year? Answer: Your assigned unique role will change only if your role undergoes a significant change

Question: Does a formal discussion have to take place during Mid Year Review? Answer: Yes, the Mid Year Review is a formal discussion.

Question: Do I have to write Special KRAs? Answer: Not necessarily

Question: Do I have to choose Additional KRAs? Answer: Not necessarily

Question: Does my self-appraisal in anyway contribute to my ratings? Answer: No, however it provides you the opportunity to talk about your performance.

Question: Do I have to choose all Role-based KRAs and KPIs? Answer: Not necessarily

Question: When does the Mid Year Review take place? Answer: The Mid Year Review takes place in the month of October.

Question: Do I have to choose all assigned KPIs for a KRA? Answer: No. But you will need to choose at least one KPI for each KRA.

Question: How do I know if I have completed my Mid Year Review? Answer: Your session is complete if You have completed your Self-Appraisal You have had a discussion with your Appraiser You have asked your Appraiser for feedback on your performance plan You have documented the discussion

Question: Is there any change in the competencies/attributes from the previous system? Answer: Previously, competencies were level based. In the new system these will be role based. However, potential attributes will continue to be level based.

Question: Does a high proficiency level directly relate to my level in the organization? Answer: No, the required Proficiency Level on Competencies is an outcome of the requirements of a role.

Question: When am I finally evaluated for the year? Answer: Your are evaluated for the Performance Cycle during the Final Review in the month of April.

Question: How do I know if I have completed my Performance Planning?

Question: How do I know when my involvement in the Final Review is complete?

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Your session is complete if You have completed your Self-Appraisal Your Appraiser has evaluated your performance on each KPI Your Appraiser has assessed your accomplishment on your performance plan You have documented the discussion Your Appraiser has sent your form to the Reviewer for validation

Answer:

Your self-assessment will be an opportunity for you to share your perspective on your performance with your Appraiser. The Appraiser and subsequently the Reviewer will use this as an input for their decisions on ratings on each element of the plan. The system will finally use the Reviewer's ratings on each element to automatically calculate the PMS Score.

Question: How has the effect of Rater Bias been minimised in e PMS? Answer: While no rater is free of bias, the system has focused on minimising the effect thereof and on increased objectivity by The cascade of organizational goals to individual goals consistently, using the same process across IOCL Use of Role templates to ensure clarity on performance measures Use of the Stretch Tool while setting targets Objective 5-point Rating Scale and setting Targets for each of the 5 ratings on the Rating Scale for all KPIs Reviewer's ratification of all Performance Plans at the beginning of the performance cycle

Question: How should I give feedback? Answer: You can give feedback through the followingRecord significant activities/ achievements in the performance diary Recognise good performance often Provide specific examples in your feedback messages Provide timely feedback, both positive & corrective Listen to the other person's viewpoints and ideas Solicit as well as provide feedback Catch performance problems early while they are small Check to be sure clear communication has occurred

Question: What happens to my Mid Year Review session documentation? Answer: Your Mid Year Review session document will be used as an input during your Final Review. Additionally, this documentation will be useful for you to make any midcourse correction.

Question: What happens to my self-assessment in Final Review phase after I've submitted it to my Appraiser?

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