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 Performance Management System Philosophy & Objective

 Key components of PMS

 Different Approaches to PMS

 Characteristics of an effective PMS

 Types of Measure

 Errors in Performance ratings

 PMS in organization

 Balance Scorecard Approach - TCS (BPO)

 360 Degree Approach - Hewitt Associates

 Management by Objective - Intelenet

Philosophy

Purpose of PMS is

 To create an environment

* in which each individual is given optimum opportunity to realize his /
her full potential

 To aid every manager promoting the most effective use of human resources.

 To ensure that...

* Each member makes the optimum contribution to the company’s
performance and the profitability.

* Helps self & team members to get high degree of job satisfaction.

PMS OBJECTIVES

 To provide analysis of how well individual is performing .

 In his current responsibilities

 Based on goals set & results achieved

 An objective analysis.
 To promote shared understanding of task and relationship between
supervisors & sub ordinates.

 To aid in determining performance rewards that are commensurate with
individual achievements & capabilities.

 To prepare a development plan for individual to

 Improve individual performance

 Prepare him for future responsibility

Key components of PMS
Approaches to measuring performance

 Comparative approach

 Attribute approach

 Behavioral approach

 Results approach

 Quality approach

 Means-based approach

Characteristics of an effective PMS

 Clearly defined goals

 Regular feedback

 Coaching & Mentoring

 Focus on solving problems

 Promotes self assessment

 Balance between Performance & potential

 Transparency in ratings

 Focus feedback on behavior or results

 Manage marginal performers

Types of Measures

 Input measures track the resources dedicated to or consumed by the
program.

 Output measures track the direct products of agency activities. Usually
reported as the number of units of service provided.

 Quality measures track the responsiveness, accuracy, and completeness
with which services are provided, and how well clients/customers are
satisfied with the services.
 Outcome measures track changes/benefits experienced by intended
beneficiaries at least partially as a result of agency services provided to
them. Changes/benefits typically relate to beneficiaries’ behavior, condition,
knowledge, attitude, skills, and values.

 Efficiency measures track the amount of outputs/outcomes produced in
relation to inputs used. Typically expressed as cost or time used per
output/outcome.

Problems of Rating

 Leniency

 Severity

 Central Tendency

 Halo Error

 Primacy and Regency Effects

 Perceptual Set

 Performance Dimension Order

 Spillover Effect

Introducing Performance Management – at Hewitt Associates

All performance and development planning documentation to be completed to be
eligible for Annual Incentive

Purpose:

Align efforts to business objectives

Provide Basis for assessment and reward

Career and development priorities

Philosophy involves key conversations about

Performance reward and development throughout the assessment year
HA Performance Management Database

Performance Calendar

Conversation By When?

Performance Planning Documented by 30th April, Ongoing
additions/ changes/ edits

Development Planning Documented by 30th April, Ongoing
additions/ changes/ edits

Ongoing Coaching & At end of each project; Throughout the
Feedback Year;

Performance Assessment August – September

Pay and Recognition October
Career Planning October; As and when required

What we cover

Performance Development aspects

– End of project assessment and review (EOPAR)

– Scorecard quadrants (as applicable)

• Financial goals such as revenue, collections, profitability

• Client goals such as client satisfaction, repeat business, revenue
from targeted clients

• Talent goals such as retention, developing team, engagement of
team, training others, involvement in talent acquisition,
mentoring, being a Buddy, etc.

• “Build for future” goals such as involvement in launch of new
offers, organizational development, etc.

– 10-11 competencies

• Assessment vis-à-vis proficiency level expected as per Band

– Initiative taken to develop oneself

• Increasing capability by successful participation in L&D activities

• Improvements made via mentoring

- People Management

Whom to seek feedback from on each of the above aspects

- Manager/Mentor; Project Manager

o working across Practices; may or may not be working with your People
Manager during the year

o with several Project Managers during the year

- We use a 5 point rating scale

- Feedback is solicited from people you work with and is always multiple
sources

- Relative Assessment is done
- Assessment will be done once a year

o All Associates go in for performance assessment

o October-September Cycle

o Less than 6 months of service – assumed rating of “C”, increment
prorated

o 6 months and above – full rating, increment prorated

o All Associates are brought on to the Hewitt Cycle

Rating Scale

E: Does Not Meet Expectation
Started on some, but not all goals and responsibilities set for the year
Did not complete any goals and responsibilities during the performance cycle
Demonstrated poor and unacceptable performance quality on work almost all the time
Lacks base level Proficiency for performing current role
Does not possess basic required behavioural competencies for performing role, and lacks depth even

D: Inconsistently Meets Expectation
Started on some, but not all goals and responsibilities set for the year
Completed only some goals; others were left partially done or incomplete
Demonstrated expected performance quality on some work done, but below expectation work most of the
Demonstrates base level proficiency in a few areas of the role only
Possesses few basic competencies required for the role, but has inconsistent depth within each of these

C: Consistently Meets Expectation
Started on all goals and responsibilities that were set for the year
Successfully completed all goals and responsibilities that were set
Demonstrated expected performance quality on all work done, all of the time
Demonstrates base level proficiency levels in all areas of work
Possesses all the competencies required for the role, and demonstrates consistent depth within each of

B: Often Exceeds Expectation
Started on all goals and responsibilities that were set for the year, including some that were not defined in
Successfully completed all goals and responsibilities that were set, including some that were not defined in
Demonstrated expected performance quality on all work done all of the time, and above expected levels
Demonstrates above base level proficiency levels for current role
Possesses all the competencies required for the role, and demonstrates above average depth within each

A: Consistently Exceeds Expectations
Started on all goals and responsibilities that were set for the year, including a significant number that were
Successfully completed all goals and responsibilities that were set, including a significant number that were
Demonstrated above expected levels of performance quality all of the time
Demonstrates exceptional proficiency levels for current role; is ready to take on greater levels of
Possesses more than the required competencies required for the role, and demonstrates above average

Career Movements

• Movement are based on performance and potential to fit role in next band

• Cross Practice movement is based on interest, suitability for role and
technical competency

• Years of service/tenure, which “batch” I am from, etc are not factors which
are considered
• There is no fixed “number of years that one spends at each level before I
move”

Bonus Plan Principles

• Simple trumps elegant

• Regional linkage to the Global results of Consulting group

• Strong linkage to Financial performance

• SMART and stretch goals for all associates

• Fully funded bonus pools linked to performance

• NOI accountability will be rolled up at the Market level

Other provisions on payouts

• Payout

– Based on achievement of objectives, as per Band

– Is calculated on TFP and is taxable

• TFP = Actual TFP paid during the Financial Year

– Limited to the amount of pool created

– Prorated by length of service

• Eligibility:

– Associate must be on Hewitt rolls as on September 30th, 2008;
Associates on notice period are not eligible

– Performance plans must be documented on HA Database by April 30th

– Performance rating of “Does not meet expectations is an exclusion”