SPM Report

Performance
Management Framework
Group Members:
1. Ahmadi un Nisa 115587
2. Ahmed Ullah Khan 112213
3. Aisha Arif 119425
4. Ammar Bin Qamer 117285
5. Bakhtawar Shakeel 119094
6. Mehreen Munaf 115281
7. Sehrish Anwer Ali Rupani 115269
Contents
INDUSTRY PRACTICES ......................................................................4
SPECIALTIES ........................................................................................5
VISION ...................................................................................................6
MISSION ................................................................................................ 6
CULTURE & VALUES .........................................................................6
FOUNDERS ........................................................................................... 7
LEADERSHIP ........................................................................................7
DIRECTORS: .........................................................................................7
KEY PLAYERS - DEPARTMENTS AND THEIR HEADS ................8
ORGANIZATIONAL STRUCTURE OF HRSG OUTSOURCING PVT. LTD. 9
1. The Performance Management Process .......................................11
1.1. What is Performance Management? ......................................................................... 11
1.2. Key Principles ........................................................................................................... 11
2. HRSG’s Performance Management Process ............................... 13

2.1. How can Performance Management benefit HRSG? ................................................ 13
2.2. An Overview of the Performance Management Process: ......................................... 13
2.2.1. Working Relationships: ......................................................................................... 13
2.2.2. Performance Management Cycle: ......................................................................... 13
2.2.3. Performance Planning: .......................................................................................... 13
2.2.4. Measuring Progress: .............................................................................................. 13
2.2.5. Reviewing Performance: ....................................................................................... 13
2.2.6. Assessing Performance & Performance Ratings: .................................................. 13
2.2.7. Reward and Recognition: ...................................................................................... 13
2.3. The Elements of the Performance Management Process: ......................................... 14
2.3.1. Working Relationships .......................................................................................... 14
2.3.2. Performance Management Cycle........................................................................... 15
2.3.3. Performance Planning............................................................................................ 16
2.3.3.1 Eligible Employees ................................................................................................ 16
Planning Process .................................................................................................................. 16
2.3.3.2 Target Setting ........................................................................................................... 17
Strategic Performance Management 2/35

2.3.3.3 Skills and Competencies .......................................................................................... 18
Behavioral Competencies .................................................................................................... 19
2.3.4. Managing Performance (The Process) .................................................................. 20
2.3.5. Reviewing Performance (The Process) ................................................................. 20
The Interim Review (The Process) ...................................................................................... 20
2.4. The Annual Review (The Process)............................................................................ 21
2.4.1. Assessing Performance & Performance Ratings ................................................... 22
Performance Planning and Review against Goals and Competencies ................................. 22
2.4.2. Recognizing Performance...................................................................................... 25
3. Performance improvement/training .............................................26

4. Promotion.....................................................................................26
5. Preparing and Completing the Performance Review Form (PRF)27
6. Key Roles .....................................................................................29
6.1 Role of the Reviewing Manager as Process Champion ............................................ 29
6.2 Role of the Performance Review Committee (PRC) or HR Committee ................... 29
6.3 Role of Human Resources (HR)................................................................................ 29
Financial and Non-Financial benefits ...................................................30

LEAVE ENTITLEMENT .....................................................................30
Performance Appraisal Form: (M5 and below Grade) ......................... 31
1. Job Organization Effectiveness..................................................................................... 31
2. Job Execution Effectiveness ......................................................................................... 32
3. Effective in Work Relationship .................................................................................... 33
4. Personal Qualities ......................................................................................................... 34
Areas of Improvement ..........................................................................35

Recommendations .................................................................................35

INTRODUCTION
Website: https://hrsgonline.com/
Industry: Human Resources
Company size: 40,001+ employees with 400+ clients
Type: Private Company
Founded in: 1992
HRS Global (HRSG) is a leader in the HR services industry; creating and delivering services that
enable clients to succeed in a highly competitive market place. HRSG offers a range of services for
the entire employment and business cycle. The ultimate objective is to assist their clients make
distinctive, substantial, and lasting improvements in their human capital management. Established in
1992, HRSG has offices and affiliates in Pakistan, Sri Lanka, Bangladesh, the UAE, and Saudi Arabia,
Kuwait and the United States, with over 300 clients and a total workforce in excess of 21,000
associates. HRSG is the advisor of choice among top companies seeking guidance and counsel on
senior leadership needs. They place quality at the centre of everything they do, and solicit candid
feedback at every opportunity in order to continually improve their services. HRSG is a company
characterized by a can-do spirit, decentralized management, and an entrepreneurial atmosphere. The
focus of HRSG is to augment productivity through improved quality, efficiency and cost-reduction for
its clients' human assets, enabling them to focus on their core business activities. HRSG attracts and
retains talented employees by offering competitive compensation and benefits. They are cognizant of
the job satisfaction and career progression needs of their associates, and provide an environment that
fosters their personal and professional growth. The network of offices enables them to meet the needs
of their clients: some of the world's largest multinational corporations as well as small and medium
size enterprises, entrepreneurial businesses, private equity firms, family-owned companies and non-
profit organizations. To support their client’s, they 'Reorganized into following business units
and industry practices:
INDUSTRY PRACTICES
Banking | Finance | Insurance
Oil | Gas | Energy
Tech | Telecom | Media
Healthcare | Hospitality | Education | NGOs | Logistics
FMCG | Beverages | Consumer Durables
Pharmaceutical | Chemical | Fertilizer
Automobile | Engineering | Building Material

NATURE OF BUSINESS:
Being a reputable Human Resource Service Provider in Pakistan, HRSG provide their clients with
market-friendly and viable resource outsourcing solutions, catered according to their organizational
requirements and international outsourcing standards. Their highly experienced and skilled specialists
provide cost-effective outsourcing services to assist their clients company in reaching its full potential
SPECIALTIES
 Executive Search and Placement
 Third-Party Contracting (3PC)
 E-Recruiting
 HR Consulting
 HR Training
 Payroll Administration
 Tax and Compliance Management
 Employee Benefits Administration
 Attendance and Absence Management
 Employee Data Management
WHAT THEY DO?

HRSG’s presence in key international markets have granted them an ample industry knowledge for
nearly three decades. Technological innovation is at the heart of their business solutions. They embrace
innovations in technology as a means of employing their deep function expertise and tailor a solution
to their client’s specific business and talent requirements.
HRSG is a group of companies providing business solutions globally. They're proud to work with
many of the world's most prominent multinational companies—including Samsung, Nestlé, and
Etisalat among many others—as well as non-profit organizations like the Aman Foundation and the
British Council.

VISION
We aspire to enrich the lives and work of people globally.
MISSION
We partner with people and companies to help them do their best, while living our
shared values and culture.
CULTURE & VALUES

 People first
 Performance Excellence
 Collaborations
 Integrity
 Diversity

FOUNDERS
Syed Ali Azhar Syed Ali Athar

Late Founder, HRSG Co-founder & Executive Director, HRSG
LEADERSHIP
Hasan Azhar Sadaf Hatif

Group CEO – HRSG CEO – HRSG Outsourcing
DIRECTORS:
There are a total of four board of directors in HRSG, names as follows:
1. Hasan Ali Azhar
2. Ather Ali
3. Mansoor Ibrahin Adhami
4. Adeel Ahmed

KEY PLAYERS - DEPARTMENTS AND THEIR HEADS
Sadaf Hatif (Group CEO – Outsourcing & SSP)
Service Delivery Department:

Mumeet Iqbal GM – HR Operations (South)
Behram Khan GM – HR Operations (North)
Shahid Hussain GM – HR Operations (Central)
Business Excellence, Shared Services & Legal Department:

Omer Ansari (GM - Business Excellence & Shared Services Department)
Business Development Department:

Syed Sabeeh Ali (Head of BD)
IT – Infrastructure & Software:

Mirza Nabeel Baig (Head of Department)
Syed Faraz Ali Shah (Manager IT-Infrastructure)
Finance & Payroll Department:

Syed Atif Shahid (Senior Manager Payroll)
Asad Bilal (Manager Finance)
HR Department:
Talha Abbasi (Manager HR – Outsourcing & SSP)

ORGANIZATIONAL STRUCTURE OF HRSG OUTSOURCING
PVT. LTD.
CEO
Head of IT
Head of Head of Shared
HRManager Head of Payroll Head of Finance Infrastructure &
Operations Services & Legal
Software
Manager IT
Recruitment Operations Manager Manager Shared
Manager Payroll Manager Finance Infrastructure &
Specialists Specialists Operations Services & Legal
Software
Assistant
Assistant Assistant
Assistant Assistant Manager IT
Manager Manager Shared
Manager Payroll Manager Finance Infrastructure &
Operations Services & Legal
Software
Senior Specialist Senior Specialist

Senior Specialist Senior Specialist Senior Specialist
Shared Services IT Infrastructure
Service Delivery Payroll Finance
& Legal & Software
Specialist IT
Specialist Specialist Specialist Shared
Specialist Payroll Infrastructure &
Service Delivery Finance Services & Legal
Software
Senior Associate Senior Associate

Senior Associate Senior Associate Senior Associate
Shared Services IT Infrastructure
Service Delivery Payroll Finance
& Legal & Software
Associate IT
Associate Associate Associate Shared
Associate Payroll Infrastructure &
Service Delivery Finance Services & Legal
Software

Grading Chart:
M1 General Manager
M2 Senior Manager/HOD
M3(A) Manager
M3(B) Manager
M4(A) Assistant Manager
M4(B) Assistant Manager
M5 Senior Specialist
M6 Specialist
M7 Associate
M8 Relationship Officer

1. The Performance Management Process
1.1. What is Performance Management?
Performance Management is a process for managing and developing people that align their personal
goals with those of HRSG so that the value added to the business is optimized. The new PM process
aims to provide an environment in which employees can excel and it encourages them to make
optimum use of their developing capabilities for the achievement of the company’s business strategies
and objectives.
This process enables managers and employees to work together to discuss and understand performance
expectations, create steps for development, monitor performance against business goals, offer
feedback and review actual performance.
HRSG’s Performance Management System (PMS) is designed to:
 Encourage open discussions between HRSG employees and managers

 Facilitate frequent and specific feedback on employee performance
 Inspire and support professional development by employees
 Ensure that HRSG’s business strategies are directly linked to specific Lines of Business and
Support Service Lines - departmental and individual goals
 Promote behaviours that are consistent with HRSG’s core values
 Provide information to be used in recognition and rewards
Through the PMS, employees will
 Understand what is expected of them: Planning

 Understand how they are doing: Managing, Reviewing
 Learn new ways to improve their performance: Development
 Understand how their performance affects their compensation: Reward
The PMS is not driven solely by Managers/Immediate Supervisors but shared by employees and
Managers/Immediate Supervisors alike – both have responsibilities for making it work. The process
encourages on-going communications (Managing). Every time an employee and
manager/supervisor discuss the employee’s role (performance goals) in relation to HRSG’s business
objectives, they are participating in the PMS process.
1.2. Key Principles
The key principles built in the PMS process are:
 A continuous process, not a once or twice a year event: performance ideally be reviewed officially
‘Three times a year’: at the start of the Financial year: such as July 2019, to be followed by Mid-
Year review: December 2019, and a final review and closure takes place before the end of the
Financial year, such as May-June 2019, when all final Personal Development Plans (PDP) results
are completed and increment and bonus pay out decisions are finalized.

 Provide ongoing informal feedback to the employees for a continuous learning and coaching
experience
 Objectives agreed are aligned to HRSG’s Strategic Plans
 Consistency of approach ensured across HRSG
 Provides employees with direct and regular feedback
 Feedback gathered from a number of sources – peer reviews, 360-degree feedback etc.
 Incorporation of behavioural competencies to describe how contribution can be optimized -
Balance what they do with how they do it
 Identification of personal development opportunities to help improve performance, both short and
long term
 Significant degree of self-management (Onus on employees for their performance reporting)
The Performance Management Process is based on a partnership between an Immediate Supervisor /

Manager, Employee’s Counsellor and the Employee.
These principles provide the framework for the HRSG Performance Management Process which is
further outlined in the following sections.

2. HRSG’s Performance Management Process
2.1. How can Performance Management benefit HRSG?
The purpose of Performance Management is to:
 Create clarity about what is to be achieved and ensure that the Immediate Supervisor/Manager
is focused on making it happen
 Drive and reinforce changes in employee’s behaviour to create a culture aligned to HRSG’s
long-term strategy
 Translate business plans to employee performance goals and targets - Have “SMART”
objectives against which employees can be appraised
 Encourage constructive dialogue between immediate supervisor/manager and employee
about their job performance and individual development
 Manage the merit programme
 Link bonus payments to performance
 Focus on training and development of the employee
2.2. An Overview of the Performance Management Process:
The elements of HRSG’s Performance Management process, outlined in this Guide are:
2.2.1. Working Relationships:

The system can only work in a ‘facilitating environment’ where preferred working
relationships are developed.
2.2.2. Performance Management Cycle:

How the system operates on Decibel throughout the year?
2.2.3. Performance Planning:

The process of establishing, recording and agreeing performance goals, targets and
levels of behavioural competencies needed for individuals to provide clarity of
direction and focus.
2.2.4. Measuring Progress:

Tracking and providing feedback on success in achieving the performance plan.
2.2.5. Reviewing Performance:

Assessing performance against the targets agreed at the start of the year.
2.2.6. Assessing Performance & Performance Ratings:

Guidelines for assessing performance against goals and established targets for each
goals, behavioural competency and definitions of each rating.
2.2.7. Reward and Recognition:

How consistent good performance is recognized by Annual Bonus and Merit Pay.

2.3. The Elements of the Performance Management Process:
2.3.1. Working Relationships
Crucial to the success of the Performance Management Process, is the development of effective
working relationships between the Immediate Supervisor who acts as a ‘Coach’, the employee’s
Counsellor and the Employee.
The success or failure of the Performance Management Process is often based on whether these
relationships prove to be effective.
For an effective relationship, the immediate supervisor must demonstrate high levels of leadership,
coaching and communications skills, essential in order to develop an ‘Enabling Environment’ where
the Performance Management process will provide optimum impact in terms of aligning HRSG’s
Organizational Strategic Objectives with Individual Goals.
HRSG’s Performance Management Cycle
Planning Managing
 Defining and agreeing  Tracking, monitoring,
on Performance Goals supporting and
and Targets coaching Performance
Planning Managing
DIALOGUE
Rewarding Reviewing
 Relating Pay to  Appraising
Performance Rewarding Reviewing Performance and
 Linking to training, providing Feedback
career development
and succession
planning

2.3.2. Performance Management Cycle
Performance Management is an integral part of the Organization and the HR processes. The diagram
below shows the activities recommended to be undertaken by HRSG during the year:
PLANNING MANAGING REVIEWING REWARDING
 Clarifying the Business  Tracking performance  Formal appraisal thrice  Feed into Salary
vision and objectives  Giving and receiving a year reviews
 Cascading business feedback  Managerial, team and  Feed into Annual
objectives /KPIs  Supporting and self appraisal Bonus/Incentive
through the coaching  Achievement against calculation
organisation  Regular self / Key Objectives,  Broad-based
 Establishing managerial and team Performance Standards recognition of
performance measures reviews and Competency significant contribution
(KPIs)  Structured interim requirements  Feed into career
 Agreeing individual reviews  Improvement planning pathway and
objectives and  Building consensus succession planning
measures as per Dept
goals
 Identifying key Skills
and Competencies
 Identification of training
and development
needs
 Locking of Training
Requirements on the
system
Process facilitation by HR

2.3.3. Performance Planning
2.3.3.1 Eligible Employees
 All employees who are full-time employees of HRSG.
 If an employee has worked for less than six months in HRSG, his/her Performance Review
against targets and accomplishments will be completed, but bonus pay-outs will be impacted
only at the end of the current fiscal year. For ex: If an employee has spent 5 months in 2018,
he will be paid at the end of 2018 on a pro-rata basis.
 The evaluation will be done by the immediate supervisor. If the immediate supervisor has
worked less than 6 months in his/her role, then the employee (appraisee)’s digital Performance
Review Form (PRF) (on Decibel) will be completed by the Second Level Reviewing Manager.
 If the employee has transferred between departments during the last 6 months, the new
department’s supervisor is responsible for ensuring that the performance review is conducted.
In order to do that, he/she needs to collect relevant information about the employee through
personal observation, reviewing records and talking with the employee’s former supervisor.
The former supervisor provides information about the employee’s contribution to the
department up to the time before he/she was transferred out
Planning Process
At the beginning of each financial year, the department heads will identify the departmental goals and
targets for the year.
The departmental goals will be aligned to the organizational objectives. For each of the identified
performance goals, key performance indicators (as part of the Balanced Scorecard) need to be defined
which will serve as a basis for evaluation at the end of the year. Each department will communicate
its specific goals each year. Alongside the goals, review frequency will be decided. The departmental
heads will discuss these goals with their teams and translate these goals and discuss what resources,
training and guidance is needed in order to meet the agreed-upon goals.
The cascade of the business targets to individual targets will be checked by the respective department
heads to ensure consistency, uniformity of work load, and presence of achievable stretch in the targets.

The source of the various types of goals which are covered in the performance
Type of Goal Who sets the goals? How goals are set?
As part of HRSG business planning
HRSG Corporate goals CEO + Departmental Heads
process (at Management meetings)
As part of HRSG business planning
Functional KPI's Departmental Heads
process
Team / Department or Departmental Heads and As part of department planning
Project specific KPI's Supervisors/Managers process
Immediate Supervisors and
Individual Tasks & Targets As part of PMS planning process
Employees
2.3.3.2 Target Setting
While setting the performance goals, the immediate supervisor/manager must ensure that each
employee knows what role they need to play, and what results they need to achieve to maximize their
contribution to the overall business of HRSG. In essence, it enables them to know specifically what is
required of them and on what basis their performance and contribution will be assessed.
Targets confirm with the universal standards of:
S pecific
M easurable
A chievable
R elevant
T Imeoriented
In setting targets, using KPIs the following steps takes place:
 Strategic and Organizational plans are prepared and updated and a new budget for each function is
approved and available
 Once the Organizational Plans are finalized and approved officially, Performance Goals/KPIs are
extracted from the plans and/or established to be consistent with the objectives for each respective
function. Performance Goals / KPIs are cascaded from the organizational plan to departmental and
individual levels such as the defined (Key Result Areas or Key Accountabilities in the Job
Descriptions).
 The Immediate Supervisor/Manager uses the Performance Goals / KPIs at the individual level and
along with the Employee decides on a set of targets and ensures that measures are clear, acceptable
and measurable.
 Targets are documented in the Performance Review Form (PRF).
 The plan is reviewed by the respective Department Manager and agreed upon.

2.3.3.3 Skills and Competencies
The Skills are related to the ‘delivery’ of the job accountabilities according to target levels (e.g.
Knowledge, Time management, Business Analysis etc.).
Desired skill levels will be agreed upon by the Immediate Supervisor/Manager with his/her employee
as a part of the planning process. During this process, the immediate supervisor/manager will also
explain to the employee the expectations in each of the desired skill levels.
Below is a list of skills identified which is felt to be relevant for HRSG.
HRSG can choose to evaluate their employees based on the skills listed below.
No. Generic skills Functionally – Specific Skills
1 English Language Management Consulting

2 Knowledge of policy & procedure Costing & Budgeting (Finance)
3 Time Management HR Outsourcing
4 Administration HR Services Principles
5 Business Skills & Understanding Executive Search & Selection
6 Financial Awareness Financial Accounting
7 Data Gathering & Analysis Human Resources
8 Negotiation IT Applications & Business Analysis
9 Decision Making Marketing Programs
10 Performance Management Procurement / Technical Appreciation
Quality, Safety & Environmental
11 Presentation
Systems Knowledge
12 Project management
13 Written Communication

Behavioral Competencies
Behavioural Competencies are underlying characteristics that enable someone to perform better, in a
variety of situations, more often and with better results. Competencies are, in other words, the required
professional behaviours’ that should be demonstrated by the job holder, in order to be able to achieve
his/her performance goals.
HRSG uses behavioural competencies for performance improvement and “training & development”
purpose.
The following list of competencies as recommended in the Competency Dictionary can be used as a
guideline. HRSG will need to map these competencies to the job roles and select which behavioural
competencies will be required by incumbents for development purposes.
No. Generic Competencies
1 Organizational Commitment
2 Achieving Excellence
3 Team Work
4 Leadership
5 Valuing Diversity
6 Client Focus
7 Continuous Learning
8 Adaptability and Innovation
9 Effective Communication
10 Demonstrating Integrity

2.3.4. Managing Performance (The Process)
Performance Management is a continuing process, not a once or twice a year review of past
performance history.
Supervisors will use all suitable opportunities throughout the year to:
 Recognize examples of good performance
 Advise and support employees where improvement in performance is needed
 Make an informal record (for use in year–end performance review) of critical examples of good
or inadequate performance and the action taken
 Coach employees in the development of skills and competencies.
The above information must be shared with the employee immediately, and a record of the finding is
to be made in an “EMPLOYEE DIARY” (on Decibel).
In addition, immediate supervisors/managers will be required to undertake at least one structured

formal interim review of progress during the year (mid-year / December-January) and record the
outcome of this on the PRF.
2.3.5. Reviewing Performance (The Process)
Performance Management is an ongoing process and it is essential that the Immediate Supervisor
and the Employee maintain a clear focus on performance throughout the year and not just at the formal
meetings.
The formal Interim progress meeting take place mid-year. The emphasis is on joint review and on
coaching to achieve planned targets.
The Interim Review (The Process)
At the middle of the fiscal year (at the end of December), an interim performance review meeting
carries out for the purpose of following up on progress against set targets.
This is a semi-structured meeting where the Immediate Supervisor and Employee discuss achievement
against objectives. Those could be KPIs or performance goals and targets, skills and also progress on
development of behavioral competencies.
It is important to consider the following for the Interim Review:
 Consider whether targets are unrealistic and in that case use this as an opportunity to document the
concern in the performance review form and re-align the target where justified
 Review the employee accomplishments thus far in the year and re-focus on areas of concerns if any

2.4. The Annual Review (The Process)
This is the all-important meeting, but by this stage that there should be ‘no surprises.’ The Employee
should know his/her general level of performance by this time of the annual review (end of the fiscal
year) period.
A few important points regarding the annual review are:
 Performance evaluations is based on agreed performance targets linked to the agreed performance
goals, and supported by documented facts against actual achievement throughout the year. Use
“EMPLOYEE DIARY” (on Decibel) as a reminder.
 Employees are given an opportunity to provide an input about their actual achievements. As such,
employees will update the “Self-Evaluation” – Comments section with their perceived self-
performance against targeted goals.
 The Employees are expected to take accountability for:

 Their own input into the performance review process
 Their willingness and ability to receive and act upon constructive feedback and to take initiative
for their own development.
 The Immediate Supervisor/Manager makes an overall assessment of performance by evaluating

performance against each Performance Goal/KPI, targets set and achievement of behavioral
competency level. They provide constructive feedback as an aggregate of the performance goal
achievement and Competency-level achievement, as part of the performance review process.
 The Immediate Supervisor/ Manager needs to be clear that they are accountable for appraising their
reporting staff fairly and consistently and for ensuring individual ratings are consistent with the
performance of the team.
 During the initial review discussions, the focus will be in providing feedback on performance, and
behavioral competency and agreeing on development plans.
 The Immediate Supervisor/ Manager will then be assessing (rating) the individual and confirming
the same with the Reviewing Manager.
 The final assessment (rating) will be shared on completion of the entire performance review cycle.

2.4.1. Assessing Performance & Performance Ratings
Performance Planning and Review against Goals and Competencies
Performance Goals
Performance Goals are the specific results or outcomes that an individual need to focus on during the
performance period. Two individuals in the same job could have the same key accountabilities but
different goals.
The main principles regarding performance goals at HRSG are as follows:

 Maximum five (5) performance goals with defined “on target” achievement per employee,
wherever possible
 Challenging, yet realistic, “over and above” goals
 Performance Goals is focused on main accountabilities - key result areas of the job holder.
Each performance goal is assigned a weight factor (percentage %), in order to show the degree of
importance each goal carries on one’s job. In order to assign performance goals, it is recommended
for each manager to consult the KRAs or defined Accountabilities accompanying the job
descriptions of the positions of his/her subordinates.
Performance Goals (annual objectives) is discussed/explained between the jobholder and his/her
manager and documented at the beginning of the performance evaluation period (start of financial
year).
Performance Review against Goals
There is a maximum of 5 levels of Performance Ratings.
The recommended performance rating levels are:
Achievement Levels of Objectives

Performance From - To Achievement Level Description
All round exceptional achievement by significantly
Outstanding Performance >115% 5 surpassing all agreed job objectives.
Excelling in achievement of some job objectives whilst
Excellent Performance 101% – 115% 4 fulfilling all others.
Meeting all job objectives/standards required for the role and
Good Performance 86% – 100% 3 agreed at the beginning of the year.
Meeting some job objectives/standards, but not all that is
Needs some improvement 71% – 85% 2 expected for the role
Needs significant Failing to meet expectations in terms of job
Improvement 0% – 70% 1 objectives/standards

The table below shows how performance against goals/objectives is to be assessed using the
Performance Ratings table described above:
No. Annual Objectives Target Weight Annual Review Achievement Final Rating Comments
of Actual % of Annual (Achievement % * Weight)
Results Objectives
1. Goal 1 xxx 30% yyy 110% 110% * 30% = 33%
2. Goal 2 xxx 30% yyy 116% 116% * 30% = 34.8%
3. Goal 3 xxx 20% yyy 100% 100% * 20% = 20%
4. Goal 4 xxx 20% yyy 100% 100% * 20% = 20%

5.
4 – Excellent
Total Objectives Score 107.8%
Performance
Performance Review against Behavioral Competency

Each Employee according to his/her level can be evaluated on a maximum of 5 behavioural
competencies. Behavioural Competencies are documented at the beginning of the performance
evaluation period (start of financial year)
The following are recommended levels of Behavioral Competency assessment
Rating of Competency Levels

Performance Rating Description
Role Model 5 Exceeds requirement of competencies/demonstrates skill of higher level
Strength 4 Demonstrates all competencies at expected level plus exceeded some
Capable 3 Demonstrates all competencies at expected level
Development Area 2 Demonstrates some competencies at expected level and needs improvement in some
Needs to improve all competencies. Does not demonstrate requirement of competencies at
Learner 1 his/her level
No. Competencies Rating Weight Total Score Justification for Rating

(Rating*Weight)
1 A 5 40% 5*40% = 2
2 B 3 20% 3*20% = 0.6
3 C 4 40% 4*40% = 1.6
4
5
Total competencies Score 4.2 4 - Excellent

Total Annual Performance Review
For the overall total annual performance assessment HRSG use 70% weightage for “Goals” and
30% weightage for “Competency” (illustrated in the table below)
Total Performance Rating

Performance Rating
Outstanding 5
Very Good 4
Fully Effective 3
Needs Improvement 2
Unsatisfactory 1
CRITERIA WEIGHT Rating TOTAL REVIEW
Objectives 70% 4 =70% * 4 2.8
Competencies 30% 4.2 =30% *4.2 1.26
T OTAL A NNUAL S CORE 4 – Very Good 4.06
The overall rating distribution would have to be demonstrated by the ‘Normal Distribution’ curve
below which compares Size of Population (Y axis) with Performance Level (X axis).
70%
10% 10%
5% 5%
Needs Needs some Good Excellent Outstanding Performance

Significant Improvement
Improvement
PERFORMANCE RATING DISTRIBUTION
Thus it is anticipated that about 5% of the population to be in the “Outstanding” level or with an overall
rating of “5”. Around 10% in the overall rating of “4” and at least 70% of the scores will be in the area
of ‘Good’ or “3” rating, and remaining 5% of the population in the “Needs Significant Improvement”.
There is therefore an element of ‘Forced Ranking’ that might be evident but is not imposed on the
Immediate Supervisor. If HRSG’s division/department meets its targets, then employees can be
expected to fall into a ‘Normal Distribution’ grouping where most will be rated as ‘Good’ and the
few that are ‘Exceptional’ could well be matched by other(s) that have a ‘Needs Improvement’ score.

If the department/team exceeds its targets, then obviously the ranking of scores will be positively
skewed towards the ‘Outstanding’ rating (and below target area performance will reflect a negative
skew).
A final review of the overall rating can be carried out by the Management Committee.
Purpose of Bonus Plan:
The purpose of their bonus plan is to motivate and reward employee for accomplishing individual
performance goals established in accordance with the business targets of the organization.
Bonus Plan Guidelines:
Bonus plan is categorized into two parts:

1. Individual Bonus (IP)
2. Business Performance (BP)
Individual Performance:
Individual performance is multiples of one’s basic pay based on the employee performance rating.
Performance Rating Grid

Unsatisfactory 0.00 – 1.49 No bonus
Needs Improvement 1.50 – 2.49 No bonus
Fully Effective 2.50 – 2.99 1.50
3.00 – 3.49 1.75
Exceeds Expectations 3.50 – 3.99 2.00
4.00 – 4.49 2.50
Outstanding 4.50 – 5.00 3.00
Company Performance:
Company performance is one gross pay for all eligible employees. This portion becomes available
when the company achieves 90% revenue target.
2.4.2. Recognizing Performance
There are a number of follow through processes which need to be undertaken at HRSG once the
Performance ratings have been quality assured and confirmed.
These include:
1. Establishing the link between performance and remuneration

2. Align, and ensure realization of identified training and development needs
3. Feed through into the career development and succession planning process

3. Performance improvement/training
Needs and opportunities for improving individual performance at HRSG will be identified both as part
of the Performance Planning and the Performance Review process. After year one, immediate
supervisors / managers work together with HR to determine the most effective ways to improve
employee performance from available options, for example:
- Formal training
- On-the-job guidance/coaching from the supervisor
- Self-development
Training and development needs and agreed actions will be recorded on the PRF. A copy of this will
be passed to the training function whose responsibility is to develop a rolling annual training plan for
HRSG and to work with line managers to prioritize training needs against the available budget.
4. Promotion
Through performance management, it is possible to identify capabilities required for promotion, but
the necessary expertise will need to be developed over time. Good performance in the current job is
necessary, but not a sufficient condition of promotion to higher-level work requiring different
competencies.
The Reviewing Manager and the Immediate Supervisor/Manager in joint discussion will identify
potential for promotion.
Basic requirements for promotion includes the following steps are recommended as a basis for
promoting employees:
 Assess the individual on both 1) His/her achievements against targeted goals. 2) His/her
achievements against identified competency (and agreed level). Consistent high level of
performance both in performance goal achievements and competency achievement: with a
minimum ‘3 – 4’ rating over a period of 1 – 2 years.
 Provide justification for assessment with sound examples of demonstrated professional conduct.
 Assessment results are analyzed through conducting a 360○ review
 A business case should exist for the next level promotion (i.e. there is room for growth vertically
and / or move laterally as required).
 Refer to validation of results through PRC review
 Refer to feedback from cross functional key members (where work collaboration has existed
between the professionals.
 For promotion to Manager and above level: Assessments are recommended to be conducted at
the Manager Assessment and Development Centre (MADC) – use of Psychometric assessments
(such as TTE and Hogan tools) are used to assess potential and capability of individuals to
perform at the higher position / grade.

5. Preparing and Completing the Performance Review Form (PRF)
An "open" Performance Review Form without pre-agreed performance measures, but structured to
allow for both goals and competency measures has been prepared.
This form enables performance measures relevant to the work of each employee to be included.
The PRF has a number of sections and its completion is explained below.
Part 1: Personal Details
For online record keeping and employee file maintenance purposes there is a need to include personal
details of the Employee, these are simple and straightforward.
Part 2: Performance Planning & Review against Goals
This section allows the Immediate Supervisor/Manager to discuss the department’s key strategic goals
and their operating implications in terms of:
 Business priorities for HRSG

 Department Goals cascaded from the defined Key Performance Indicators (KPIs) developed at the
Balanced Scorecard level.
 Individual Performance Goals in terms of contribution to HRSG Goals (such as higher sales,
improved feedback as part of Voice of Customer, etc.).
 Clear link to HRSG’s action planning document set up at the beginning of the year, developed over
the year and corrected mid-year (if required).
At the planning stage, the Immediate Supervisor and Employee should jointly agree Performance
Goals and Targets (usually about 4 - 5).
To facilitate the plan, reference could be made to the Job Description which identifies the Key Result
Areas or Job Accountabilities (or KPI’s at management-level):
Throughout the year: The Immediate Supervisor/Manager should review employee progress as part of
formal review steps taken, and informal performance review, and discuss with the Employee and
record in Employee Diary (in Decibel).
During the mid-year (In the Month of December) an official review of progress will be made and the
column “Comments from Mid-Term Performance Review Meeting” will be uploaded online by the
employee and reviewed by the Immediate Supervisor/Manager.
The main discussion will take place about the progress made, and if the Targets need to be revised or
additional resources need to be provided.
Part 3: Performance Planning & Review against Behavioral Competency

 For each role, HRSG can select a set of skills (up to 5).
 At the planning stage, the Immediate Supervisor/Manager and Employee should jointly:
 Agree to the behavioral competency/skill sets that the employee needs to demonstrate most
effectively based on the understanding of the behavioral competency and also its linkage to the
performance targets set.

 Throughout the year: The Immediate Supervisor/Manager should review progress and discuss with
the Employee and upload noted online.
 During the mid-year (In the Month of December) an official review of progress will be made and
the column “Comments from Mid-Term Performance Review Meeting” will be uploaded online by
the employee and reviewed by the Immediate Supervisor/Manager.
 The main discussion will take place about the progress made, and if the Targets need to be revised
or additional resources need to be provided.
 The main discussion will take place on the demonstration of behavioral competencies expected to
be exhibited by the employee.
Part 4: Total Annual Performance Review
This section allows the Immediate Supervisor/Manager to document the rating for Performance Goals
and Competencies. Performance Goals as mentioned above have a 70% weightage and Skills have a
30% weightage.
The final rating needs to be ratified by the Immediate Supervisor’s Reviewing Manager (The Second
Level Reviewer).
Part 5: Developmental Activities
 Based on discussions with the individual, the Immediate Supervisor/Manager will identify up to 3
development actions.
 These also be link to functional and behavioral competencies
 The development activity to be undertaken could be

 Mentoring plan, on the job training, shadowing, graduate-post-graduate studies, in-house and
out-bound training
 The onus of demonstrating application and improvement will lie with the individual
 The training needs identified and agreed will need to be uploaded online, and a notification sent
to HR and HR will need to arrange for the training (as budgeted)
 Training programs will need to be measured for effectiveness (through on the job assessments)
etc. and the employee will need to clearly demonstrate improvements in the area of training and
development.
Part 6: Comments from Meetings
 This section is to be used to document comments from the various meetings – Planning & Goal
Setting Meeting, Mid-Term Performance Review Meeting, Informal Discussions/Feedback and
subsequent agreement, and Annual Performance Review Meeting
 Comments can include progress made against goal targets, and behavioral competency
demonstration and developmental activities
Part 7: Signoffs
 This section is to be used for sign offs.
 The PRF needs to be signed off and agreed upon by the employee, Immediate Supervisor and the
Reviewing Manager.
 Disagreements on ratings will first need to be addressed by the Immediate Supervisor’s Reviewing
Manager, and then by HR (where required)

6. Key Roles
The success of HRSG’s performance management process is dependent on the line management
‘ownership’ and ‘buy in’ to the usefulness and effectiveness of the process. Below are suggested roles
to enhance and further ensure the success of the Performance Management process implementation:
6.1 Role of the Reviewing Manager as Process Champion
It is recommended that within each department/function across HRSG, there is a need for a
manager-level ‘Champion’ of the process. The responsibility of that person is to ensure that the
process is being taken seriously by supervisors and subordinates and that the needs of the
department/function are being served through this process. The champion is a stern believer of the
benefits of performance improvement and dedicates 5% of his/her time seeing the process works.
The process champion continuously communicates the benefits of the process and is on top of
managerial competencies that are needed to manage performance. The Champion may sit on the
Performance Review Committee or HR committee.
For HRSG all departmental heads should be earmarked as Process Champions
6.2 Role of the Performance Review Committee (PRC) or HR Committee
The PRC or HR Committee oversees the quality and consistency of assessments carried
out/essentially ratings produced. Comprised of functional heads, the team reviews result of ratings
against agreed departmental goals. PRC has the right to question any of the ratings and will always
look for inconsistencies and raise alarm bells when required.
PRC will also approve the merit increase and bonus pay-outs to individuals.
The PRC can be composed of members of the Management Committee.
6.3 Role of Human Resources (HR)
The HRBP for this process will be the chief co-ordinator. The person will send timely reminders
to start the process at all stages, and also monitor progress made by each Department. The HRBP
will also be the eyes and ears for any deviations being taken in the process. He / She will also
accept grievances in confidentiality and raise it to the Departmental Heads/ Process Champions
for necessary action.

Financial and Non-Financial benefits
Financial Benefits Non-financial Benefits

Opd – 10,000/- per year Work from home
Bonuses Flexible working hours
Fuel allowance Medical insurance (health & life)
Mobile allowance Annual dinner
Education allowance (75% of total fee) Annual sports event
Car allowance National & international tours
Day care allowance (for female staff 8,000/- per Skills development trainings
month up to age of 3 years)
Laptop benefit (purchase it after 3 years at 20% price) Knowledge based training
Provident Fund Birthday celebrations
Employee engagement activities
Gym facility
LEAVE ENTITLEMENT
Leaves Number of Days
Annual Leaves 30 Business Days
Compassionate Leaves (emergency / 5 calendar days (maximum of 3 days at a time)
unexpected circumstances)
Sick Leave 10 days (maximum of 3 days at a time, submit medical
certificate if leave increases to more than 3 days)
Maternity Leaves 12 weeks with pay

Performance Appraisal Form: (M5 and below Grade)
1. Job Organization Effectiveness
Unsatisfactory / Poor Fair/ Mediocre Good Performance Very Good Outstanding
Recognizing and establishing work priorities.
Fair/
Good Very Good Outstanding
Unsatisfactory / Poor Mediocre
Performance Performance Performance
Performance
Performance (1)
(3) (4) (5)
(2)
Using working time advantageously.

Unsatisfactory /
Fair/ Mediocre Good Very Good Outstanding
Poor
Performance Performance Performance Performance
Performance
(2) (3) (4) (5)
(1)
Analysing problems and reducing them to fundamentals.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Setting and fulfilling realistic work deadlines.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Foreseeing and planning for future work needs.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Recognizing and satisfying co-ordinate interests of other.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Section Total 0
Section Average 0

2. Job Execution Effectiveness
Understanding and dealing with each assignment fully and completely.
Unsatisfactory / Fair/ Mediocre Good Very Good Outstanding
Poor Performance Performance Performance Performance Performance
(1) (2) (3) (4) (5)
Reaching sound and accurate conclusions.

(1) (2) (3) (4) (5)
Keeping up with work volume.

(1) (2) (3) (4) (5)
Devising solutions for non-routine problems.

(1) (2) (3) (4) (5)
Seeking and developing better ways to do the job.

(1) (2) (3) (4) (5)
Making clear and concise presentations.

(1) (2) (3) (4) (5)
Working with limited supervision and control.

(1) (2) (3) (4) (5)
Section Total 0
Section Average 0

3. Effective in Work Relationship
Effectiveness in oral and written expression.
(1) (2) (3) (4) (5)
Keeping supervisors and / or subordinates informed.

(1) (2) (3) (4) (5)
Gaining acceptance and confidence of other.

(1) (2) (3) (4) (5)
Working under pressure.

(1) (2) (3) (4) (5)
Accepting and adjusting to changes.

(1) (2) (3) (4) (5)
Working co-operatively and harmoniously with associates.

(1) (2) (3) (4) (5)
Creating a favourable impression of the Company.

(1) (2) (3) (4) (5)
Section Total 0
Section Average 0

4. Personal Qualities

Grasping new ideas.
Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Contributing to own development.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Keeping an objective approach to the work.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Accepting and building on suggestions and criticism.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Conserving resources and materials, cost consciousness.

Unsatisfactory /
Poor
Performance
(2) (3) (4) (5)
(1)
Section Total 0
Section Average 0

Areas of Improvement
 Appraisal Process should be improves for below m5 level.

 More training for employees as per nature of work.
 Rewards should be more beneficial for all employees.
 Need to review JDs’ of employees.
 Backup of signing authorities.
 Authorities and Decision Power.
Recommendations
 Appraisal should be object or target based for below M5 as well.

 HR should be arrange more formal and In-formal trainings to develop the employees’ skills
 Individual performance bonus should be given on festival event to remain the actual motive
of rewards.
 Additional responsibilities should be added on every position to maintain the positional
difference.
 Management should assign more signing authorities for backup plan.
 Front lead employees should have a decision power or more authorities to facilitate the
clients on time.
-----The End----

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Performance

2. HRSG’s Performance Management Process ............................... 13

Strategic Performance Management 2/35

3. Performance improvement/training .............................................26

Financial and Non-Financial benefits ...................................................30

Areas of Improvement ..........................................................................35

Strategic Performance Management 3/35

Industry: Human Resources

Company size: 40,001+ employees with 400+ clients

Type: Private Company

Founded in: 1992

Strategic Performance Management 4/35

WHAT THEY DO?

Strategic Performance Management 5/35

CULTURE & VALUES

Strategic Performance Management 6/35

Syed Ali Azhar Syed Ali Athar

Hasan Azhar Sadaf Hatif

Strategic Performance Management 7/35

Service Delivery Department:

Business Excellence, Shared Services & Legal Department:

Business Development Department:

IT – Infrastructure & Software:

Finance & Payroll Department:

Strategic Performance Management 8/35

Senior Specialist Senior Specialist

Senior Associate Senior Associate

Strategic Performance Management 9/35

Strategic Performance Management 10/35

HRSG’s Performance Management System (PMS) is designed to:

 Encourage open discussions between HRSG employees and managers

 Understand what is expected of them: Planning

1.2. Key Principles

The key principles built in the PMS process are:

Strategic Performance Management 11/35

The Performance Management Process is based on a partnership between an Immediate Supervisor /

Strategic Performance Management 12/35

2.1. How can Performance Management benefit HRSG?

The purpose of Performance Management is to:

2.2. An Overview of the Performance Management Process:

2.2.1. Working Relationships:

2.2.2. Performance Management Cycle:

2.2.3. Performance Planning:

2.2.4. Measuring Progress:

2.2.5. Reviewing Performance:

2.2.6. Assessing Performance & Performance Ratings:

2.2.7. Reward and Recognition:

Strategic Performance Management 13/35

2.3.1. Working Relationships

HRSG’s Performance Management Cycle

Strategic Performance Management 14/35

PLANNING MANAGING REVIEWING REWARDING

Strategic Performance Management 15/35

2.3.3.1 Eligible Employees

 All employees who are full-time employees of HRSG.

Strategic Performance Management 16/35

2.3.3.2 Target Setting

Targets confirm with the universal standards of:

Strategic Performance Management 17/35

Below is a list of skills identified which is felt to be relevant for HRSG.

No. Generic skills Functionally – Specific Skills

1 English Language Management Consulting

Strategic Performance Management 18/35

No. Generic Competencies