DESIGNING A PMS SYSTEM

The PMS system is a comprehensive assessment tool for employees’ performance. A candidate will be
assessed all-round the year. There will be bi-yearly feedback meetings with the Manager and candidate
where manager will assess their performance. Also, there will be quarterly performance review meetings
where employee’s progress will be mapped and major issues and hindrances affecting the candidate’s
goals will be addressed.

The candidate will set a minimum of 3 and a maximum of 5 KRAs (Individual, team, business) for upcoming
year based on team’s goal for that year. These KRAs should be SMART and must align with the job role
assigned. In addition to this, the candidate should choose a minimum of 2 and a maximum of 3
organizational values that add to employee’s personality growth. In order to ensure career advancement,
the employee is expected to be up to date with new systems and technologies in the industry. They are
expected to undergo a minimum of 3 and a maximum of 4 skill-based trainings in the said fiscal year.
These trainings can be on the job training, through online courses, classroom trainings or a blend of all
the above.

The manager needs to ensure that the KRAs are aligned with the team’s goals. The KRAs should be
moderately difficult so as to keep the employee motivated. It should be ensured that the goals are set in
mot more than three areas as attempting to achieve diverse goals will affect performance on individual
goal. The managers are expected to guide their subordinates in choosing the trainings that they require.

It is expected that managers set up a one-to-one meeting with the employees to discuss the PMS plan. In
the first meeting, the employee and manager discuss on the KRAs set by the employee and come up with
a strategy to accomplish those goals. If there is any unfinished task or discussion point from previous
year’s PMS plan, they are carried forward to this year and the employee is expected to complete that goal
in addition to the tasks that have been assigned. Moreover, the manager is expected to assist the
employee in developing their skills and help them choose a training schedule.

After every quarter, the manager and the employees are expected to have a one to one performance
review meeting. In the first and third quarterly meeting, the employee will self- assess performance and
manager will provide feedback on the same. In these stages, only the employee reviews his/her
performance and the manager is not expected to rate employee’s performance. In case the employee is
facing any issue while completing the tasks assigned, the issue is discussed, and a forward progress path
is drawn. In the second and fourth quarterly meeting, the employees are expected to self-access their
progress before being reviewed by the manager. The employee then discusses his performance status
with the manager to understand the gap between expectations of the manager and his/her own
expectations. After the 4th and final Performance Review Meeting, the manager rates the employee on a
scale of 1 to 5 with 5 being the highest (employee is excellent) and 1 being the lowest. Based on this rating,
the employee gets the annual salary increment and other incentives.

The manager should note that the overall performance curve of his/her team should follow a normal
distribution. The manager should be able to justify the reason for the top 15% and the bottom 20%
employees. The rating process should be transparent, and the manager should not be biased towards any
employee.
 Performance Management System for the Year 2021-22

Part 1: Personal Information:

a. Name of Employee:

b. Employee Code:

c. Designation:

d. In position since:

e. Department:

f. Grade:

g. Date of joining:

h. Name of reporting Manager:

Employee Signature Manager’s Signature

 Part 2: Goal Setting:
(To be Filled by the Appraisee & Approved by the Appraiser)

a. Performance Objectives:

Remarks by
Sr. No. Individual Performance Objectives Start Date Expected End Date Measurement Indicator
Appraiser

KRA 1

KRA 2

KRA 3

KRA 4

KRA 5

b. Behavioural and Competency Assessment:

Measurement Remarks by
Sr. No Organizational Value/ Competency Description Start Date
Indicator Appraiser

Employee Signature Manager’s Signature

 Part 2: Goal Setting (Contd.)
(To be Filled by the Appraisee & Approved by the Appraiser)

c. Individual Development Plan

Training Method
Training Expected End Appraiser’s
Sr. No Development Needs (Online/ Classroom/ Start Date
Description Date Remarks
Blended)

Appraisee’s Comments:

Employee Signature Manager’s Signature

Part 3: Performance Review – 1st Quarter
(To be filled by the Appraisee)
a. Performance Objectives

Status:
Sr. No. Individual Performance Objectives Weightage (Out of 100) (Started/ % Progress Appraisee’s Comments
Not Started)

KRA 1

KRA 2

KRA 3

KRA 4

KRA 5

b. Behavioural and Competency Assessment:

Status:
Sr. No Organizational Value/ Competency Scheduled Start Date (Started/ Progress % Appraisee’s Comments
Not Started)

Employee Signature Manager’s Signature

Part 3: Performance Review – 1st Quarter (Contd.)
(To be filled by the Appraisee)

c. Individual Development Plan:

Appraisee’s
Sr. No Training Description Scheduled Start Date Training Start Date Progress %
Comments

Appraiser’s Overall Comments:

Employee Signature Manager’s Signature

 Part 4: Performance Review - 2nd Quarter (Mid-Year)
(To be filled by the Appraisee and Appraiser)

a. Performance Objectives:

% Progress as
Status:
Weightage per discussion Weighted Performance
Individual Performance (Started/ % Progress as
Sr. No. (Out of 100) by Appraisee Achievement Review Comments
Objectives Not per Appraisee
(a) and Appraiser (a*b) by Appraiser
Started)
(b)
KRA 1
KRA 2
KRA 3
KRA 4
KRA 5
Total

b. Behavioural and Competency Assessment:

Status: % Progress as per

Sr. % Progress as Appraiser's
Organizational Value/ Competency Scheduled Start Date (Started/ Not discussion by Appraisee
No per Appraisee Comments
Started) and Appraiser

Employee Signature Manager’s Signature

 Part 4: Performance Review - 2nd Quarter (Mid-Year)
(To be filled by the Appraisee and Appraiser)

c. Individual Development Plan

Learning from the

Training Scheduled Start Training Start Training Training Appraisee's Appraiser's
Sr. No Progress %
Description Date Date End Date (To be filled by the Comments Comments
Appraisee)

Appraisee’s Overall Comments: Appraiser’s Overall Comments:

Employee Signature Manager’s Signature

Part 5: Performance Review – 3rd Quarter
(To be filled by the Appraisee)
a. Performance Objectives

Status:
Sr. No. Individual Performance Objectives Weightage (Out of 100) (Started/ % Progress Appraisee’s Comments
Not Started)

KRA 1

KRA 2

KRA 3

KRA 4

KRA 5

b. Behavioural and Competency Assessment:

Status:
Sr. No Organizational Value/ Competency Scheduled Start Date (Started/ Progress % Appraisee’s Comments
Not Started)

Employee Signature Manager’s Signature

Part 5: Performance Review – 3rd Quarter (Contd.)
(To be filled by the Appraisee)

c. Individual Development Plan:

Appraisee’s
Sr. No Training Description Scheduled Start Date Training Start Date Progress %
Comments

Appraiser’s Overall Comments:

Employee Signature Manager’s Signature

 Part 6: Performance Review - 4nd Quarter (End-Year)
(To be filled by the Appraisee and Appraiser)

a. Performance Objectives:

% Progress as
Status:
Weightage per discussion Weighted Performance
Individual Performance (Started/ % Progress as
Sr. No. (Out of 100) by Appraisee Achievement Review Comments
Objectives Not per Appraisee
(a) and Appraiser (a*b) by Appraiser
Started)
(b)
KRA 1
KRA 2
KRA 3
KRA 4
KRA 5
Total

b. Behavioural and Competency Assessment:

Status: % Progress as per

Sr. % Progress as Appraiser's
Organizational Value/ Competency Scheduled Start Date (Started/ Not discussion by Appraisee
No per Appraisee Comments
Started) and Appraiser

Employee Signature Manager’s Signature

 Part 4: Performance Review - 2nd Quarter (Mid-Year)
(To be filled by the Appraisee and Appraiser)

c. Individual Development Plan

Learning from the

Training Scheduled Start Training Start Training Training Appraisee's Appraiser's
Sr. No Progress %
Description Date Date End Date (To be filled by the Comments Comments
Appraisee)

Appraisee’s Overall Comments: Appraiser’s Overall Comments:

Employee Signature Manager’s Signature

Part 5: Additional Roles and Responsibilities Undertaken by Appraisee:
(To be Filled by the Appraisee)

Status
Sr. (Completed/
Task Description Start Date End Date Appraiser's Comments
No Transferred/
Dropped)
1

Part 6: What went well?

(To be filled by the Appraisee)
Mention 3 things that went well in this appraisal year:

Part 7: What could have been improved?

(To be filled by the Appraisee)
Mention 3 things that did not go well and could have been improved:

Employee Signature Manager’s Signature

 PERFORMANCE MANAGEMENT SYSTEM

Overall Grade given by the Appraiser: ________

(To be filled by the Appraiser on a scale of 1-5 where:
5= Excellent; 4= Very Good; 3= Good; 2= Needs Improvement; 1: Poor)

Reviewer’s Comments:

To be filled by the Reviewer:

Rate the Appraiser and the appraising

process on a scale of 1-5: 1 being the lowest
and 5 being the highest:
Appraisal Process: ____
Appraisee: ______

Name of Reviewer: Sign & Date:

HR Comments: Action Taken:

Name of HR Representative: Sign & Date:

Evaluation of Ratings:

For assessing KRA Achievement in throughout the year, a 4-point rating scale is designed as under:

Measure Rating Scale Level of Performance

Poor 1 Achievement Index < 90%

Low 2 90% > Achievement Index > 98%

Medium 3 98% > Achievement Index > 102%

High 4 Achievement Index > 102%

The overall rating is given on a 5-point scale and it depends on Employee’s achievement, Behavioural Values and Interest to learn.

Rating Scale Level of Performance

1 Role Model
2 Top Performer
3 Good Performer
4 Marginal Performer
5 Needs Improvement

Performance Bonus, Salary Increments and Career advancement are decided based on this score.