CONTENT TABLE
PERFORMANCE APPRAISAL SYSTEM OF UFONE: ......................................................... 2
Objective Of The Performance Management: ............................................................................ 2
PERFORMANCE APPRAISAL METHOD USE BY UFONE:................................................ 3
UPMS (UFONE PERFORMANCE MANAGEMENT SYSTEM):..................................................... 3
360- DEGREE PERFORMANCE APPRAISAL METHOD: .............................................................. 3
REWARDS RELATED TO PERFORMANCE ......................................................................... 4
PERFORMANCE EVALUATION BY UPMS: ........................................................................ 4
COMPENSATION AND REWARD SYSTEM OF UFONE: .................................................. 4
COMPENSATION RESPONSIBILITIES OF UFONE HR DEPARTMENT .......................... 5
COMPENSATION SYSTEM: ................................................................................................... 5
REWARDS ................................................................................................................................. 5
FINANCIAL REWARDS..................................................................................................................... 6
NON-FINANCIAL REWARDS........................................................................................................... 6
BENEFITS: ................................................................................................................................. 6
Provident Fund ...................................................................................................................................... 7
Staff Insurance Policy ........................................................................................................................... 7
Leave Policy.......................................................................................................................................... 7
Retirement:............................................................................................................................................ 7
PRE-RETIREMENT SOCIALIZATION: ............................................................................................ 7
Early Retirement Programs: .................................................................................................................. 7
EMPLOYEES REACTION TO THE SYSTEM ....................................................................... 8
SUGGESTIONS OF HR MANAGER: ....................................................................................... 8
SAMPLE OF EVALUATION FORM: .......................................................................................... 9
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PERFORMANCE APPRAISAL SYSTEM OF UFONE:
The Performance appraisal system used by UFONE for reviewing the performance status of its
employee starts with identifying specific appraisal goals set by each Group for each cadre. After
this a detail job analysis is done with looking in account the job expectation and then matching the
actual performance with the desired performance. Afterward the performance is appraised
according to the set standards and this appraisal is not done by the supervisor alone, their major
focus is on taking into the account the employee’s perspective as well. Therefore, whenever the
appraisal is done employee is fully participative in the process.
At Ufone performance is evaluated on the basis of following
Goals
Objectives
Benchmark
OBJECTIVE OF THE PERFORMANCE MANAGEMENT:
The basic objective for performance UFONE employees’ circles around the following:
To look at Performance system as a means to an end
Setting an individual’s goal
Aligning goals across the company
Ensuring employees get coaching from managers
Determining merit pay
Identifying training and development needs
Providing data for promotion decision
Input from multiple source on worker performance
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PERFORMANCE APPRAISAL METHOD USE BY UFONE:
Ufone use basically two main methods for appraising performance of employees
UPMS (UFONE PERFORMANCE MANAGEMENT SYSTEM):
UPMS known as Ufone performance management system. It is basically a software in which
supervisor sets the goal of employee yearly. After setting goals supervisor and employees discuss
goals then they do monthly meetings to see the progress and barriers in achieving these goals.
After six months supervisor evaluate the performance of employee. If the person being assessed
with supervisor rating then, he will approve the rating otherwise they conduct meeting to discuss.
Overall, performance is assessed on yearly basis.
360- DEGREE PERFORMANCE APPRAISAL METHOD:
UFONE is using 360-Degree Performance Appraisal Method. Within this method, managers,
peers, customers or colleagues are asked to give feedback on the employee being assessed. In
UFONE, performance of an employee is appraised twice a year. Once in June while other in
December.
Performance appraisal: 360°
Behavior 20%
Results 80%
Total 100%
Total 500 Marks
Best >400
Good >300
Average >250
A bell-shaped distribution comes out to show the
performance
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REWARDS RELATED TO PERFORMANCE
There is also a reward related to performance of the employees. For “Customer Facilitation
Agents” there 50% pay is based on their performance which is assessing every moth by their
managers. For other employees like in administration, engineering, finance, marketing, etc. their
performance is assessed after every six and they get increased Rs.5000 in their salary as a reward.
In each case employee have to show consistent performance to win reward next time.
PERFORMANCE EVALUATION BY UPMS:
Ufone is at very high scale in evaluating the performance of their employees because of integrated
system. They are using tailored made software to achieve this purpose. Every employee
organization is allotted a user name and password (objectives and goals are defined for each
employee) and their productivity is monitored with the help of intranet. HR department is also
responsible for conducting performance evaluation process. Immediate supervisor evaluates the
performance of subordinates at Ufone.
COMPENSATION AND REWARD SYSTEM OF UFONE:
There are three organizations such as, Mercer, Abacus and Hays. These organizations do salary
surveys then formulate compensation plans for organization. Ufone follow Mercer. They have five
level of compensation.
C1 Gross Salary
C2 Bonus
C3 performance related benefits
C4 After every 12 months, they give one extra salary to employees as reward to
motivate the employees.
C5 health insurance, retiring benefit, fuel benefits.
Compensation and benefits are linked with the value of the job. It means that why an employee
should be paid for his job and along with it what are the incentives that he should be paid. The
value of the job is analyzed by Ufone HR department in a way that they evaluate the market value
and the number of potential candidates available for that job. And then assess the value for that
job. The personal characteristics like skills, responsibilities, and efforts required to do the job are
also one of the factors that are being looked to evaluate the job value. Benefits that are attached to
the employee’s salary in Ufone are conveyance facility, medical facilities, leave encashment
facilities etc.
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COMPENSATION RESPONSIBILITIES OF UFONE HR DEPARTMENT
Compensation Administration (designing and installing job evaluation program, pay structure,
analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the
labor market).
Health and Safety (health programs, safety programs, Medical facility).
Employee relations (wages, rates of pay, hours of work, conditions of employment,
negotiation, contract interpretation and administration, grievance handling, allocation of
overtime).
Benefits and Services (insurance programs, Transportation facility, sick leave pay plans,
loan funds, Yearly bonus programs along with special bonuses for achieving high targets).
COMPENSATION SYSTEM:
Compensation and benefits are very important for any employee. If they are given properly and
according to the market rate then the employee will be motivated and he’ll try to give his best. At
Ufone compensation system is designed with the help of job evaluation. For making the
compensation they are using both point and rank methods according to the wage survey for
benchmark jobs. And for unique positions they have crafted their own formula.
They are offering
Minimum wage
Overtime
Equal employment opportunities (in terms of equal pay without discriminating
against sex or race)
Merit pay (payment based on performance)
Individual incentives (reward for individual performance that can be earned and re-
earned)
Profit sharing (focuses on individual employee)
they gave these plans on the task basis other than the organizational incentive plans.
REWARDS
Rewards are given to enhance the morale of the employees that they can work more efficiently
and effectively. Every organization gives rewards to its employees on achievement of some goal.
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At Ufone rewards are also given to the employees on their performance. Ufone is offering
following types of rewards:
Financial Rewards
Non-financial rewards
FINANCIAL REWARDS
There are different types of financial rewards offered by Ufone it includes
Bonuses
Salary increments
NON-FINANCIAL REWARDS
Besides financial rewards Ufone is also offering non-financial rewards to its employees to
encourage them. Because they think the organization can grow with fast speed unless and until its
employees are performing up to the tasks assigned to them. To achieve this purpose Ufone is
offering an environment, which enhances the productivity of the employees.
BENEFITS:
Ufone is providing many benefits to its employees in order to boost their morale, reduce turnover,
gain a competitive position, etc. All this is done in order to maintain a high position in the market
and in order to recruit high performing employees. Following are some of the benefits provided to
employees:
Paid time off
Vacations
Holidays
Tuition Reimbursement
Pension Plans
Health Insurance
Death Benefit
Salary Advance
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Service Awards
Provident Funds
Conveyance allowance.
PROVIDENT FUND
All permanent confirmed employees are eligible for membership of Ufone Employee Provident
Fund Scheme. An employee contributes 8.33% of month basic salary in a year and an equivalent
amount is being contributed by the employer.
STAFF INSURANCE POLICY
Ufone has arranged the following types of insurance for its full-time staff
Health Insurance
Car Insurance
Loan Insurance
LEAVE POLICY
As concerns with the leave policy there are different types of leave policies like:
Annual leaves which are 20
Medical Leaves are 10
And the casual leaves are 10 (cashable).
RETIREMENT:
It involves leaving a job and work role and making a transition to life without work. Ufone
management has taken a proactive approach on this issue in the following manner:
PRE-RETIREMENT SOCIALIZATION:
The process of helping employees prepares for exit from work. Management encourages
employees to learn about retirement life; plan for adequate financial, housing and health-care
resources; and form accurate expectations about retirement.
EARLY RETIREMENT PROGRAMS:
These offer employees’ financial benefits to leave the company. Ufone management has decided
on a lump sum of money and a percentage of salary based on years of service. Eligibility for early
retirement is based
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EMPLOYEES REACTION TO THE SYSTEM:
At Ufone as we observed mostly of the permanent employees are quite satisfied with this system
as compared to the contractual employees. Their reaction towards the system is cooperative
because of their appraisal system; the Ufone performance appraisal system is very effective after
every six months everybody knows that what their score is. Ufone is a performance oriented
organization so they compensate their employees on the basis of their performance so everybody
know that if they show the results then the organization will compensate them good if not then
they will never expect, This is a good approach for performance oriented organizations to
implement the system like this because of this system everybody interests involves in it. And the
Ufone also adopted the Competitive approach for compensation, because of this system every
employee knows what the other organizations are paying for the same job and what they are getting
is fair or not.
Some are not satisfied because they think that we are very senior and the organization should have
to compensate us for our seniority not for our work done, (Loyalty factor involves).
SUGGESTIONS OF HR MANAGER:
Manager should understand culture of organization and try to get training on how to give
feedback, how to receive feedback and when to give feedback.
Clear objectives must be defined before setting the goals for each employee
Managers have to arrange training and development sessions for employees to understand
importance of performance appraisal and to give use performance appraisal in its true
sense.
Supervisor should not wait for years to give feedback. He should keep on noting things on
daily basis.
Always spend less time in past and more time for future for improvement. They should not
hold past. They should spend their 20 percent of time in discussing past and 80 percent of
time in discussing future.
Celebrate your success.
Employees should close every open-ended discussion about problem and clears the
objectives for future.
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SAMPLE OF EVALUATION FORM:
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