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PERFORMANCE MANAGEMENT PROCESS

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External Recruitment

End of Tenure

SETTING UP GOALS

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X company setting up goals in lined with the business objectives and they are SMART. For this they are applying the Hoshin Kanri Model where it is a model that can be used to implement & execute Goals. The action steps of the supervisor are identified and they become goals of the subordinate. Then the action plans are prepared for each goal and identify the time lines.

PERFORMANCE APPRAISAL

Company is using the world renowned Performance Appraisal System which is a sub module in SAP. Each an employee have access to SAP and Its called Employee Portal This comprise Employees HR Information such as, Personal, Work related information, Achievements, Trainings Attended, Special Remarks, Past Performance Appraisal Data, Payroll Information such as Salary Details, Vehicle Loans, Personal Loans etc.. Performance Appraisal Comprise Six Sections Section A : Performance Evaluation

UNIVERSITY OF COLOMBO-IHRA Performance Management & Appraisal

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Section B Section C Section D Section E Section F

: : : : :

Competency Evaluation Employee Training Needs Extra Mile Assessment Employee Development & Carrier Plan Individual Performance Summary

PERFORMANCE EVALUATION

This section comprises the objectives that are set for the evaluation year. The target dates are mentioned in lined with each objective and five levels of achievements. Rating 1`: Rating 2 : Rating 3 : Rating 4 : Rating 5 : Poor Performance Improvement Needed Meeting Expectations Above Expectations Exceptional

(Refer Section A of the Annexure) Objectives Measure Target Date Appraisee Evaluation Appraiser Evaluation Remarks

COMPETENCY EVALUATION

Competencies are requisite human capabilities that define the leadership framework of an organization and help to maintain and develop its competitive edge. Competencies identify critical behaviors that lead to successful performance. In WearWell they have identified four competencies and they are using a Behavioral Anchored Rating Scale (BARS) which describe the level of competency.
Competency Measure Target Skill Level Appraisee Evaluation Appraiser Evaluation Remarks

Initiative and follow through

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Team Orientation Effective Communication Quality of work (Refer Section B of the Annexure)
EMPLOYEE TRAINING NEEDS

Training Needs

Proposed Completion Date

Detailed Comments

Based on specific gaps in competencies as assessed above specific training needs are identified. This is at the time of performing the mid year reviewing, so by the time the final appraisals are done it can mitigate the gaps. For Example if an employee is rated lower in terms of Effective Communication Skills than the target level, then the employee needs training on communication skills. Company allocates Training Budget in order to meet training requirements which are identified as follows;

Training requirements identified at the time of recruiting On the job training Training requirements that are arising from Performance Appraisals

(Refer Section C of the Annexure)

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EXTRA MILE ASSESSMENT

This is a good practice we have identified in this study. Most of the Performance appraisals concerned about, whether the goals are achieved or not. But they dont consider the other contributions other than the set targets. In Wear Well, the appraisee has got the opportunity to get evaluated for the extra mile performance. Here the employee can state the extra mile performance and it should be achievements other than the set targets. The Appraiser has to accept the fact that it is a extra mile, then at the time of giving the overall rating, extra mile should be categorized as Nil, Low, Medium or High.

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In most Appraisal systems, this has been a common issue where employees were evaluated only on the targets set in the performance appraisals. (Refer Section D of the Annexure) Exceptional Appraisee) Contribution (Filled by Remarks ( Filled by Appraiser )

EMPLOYEE DEVELOPMENT AND CAREER PLAN

Prepare an employee for the future needs of the organization. This could be done in short term as well as in long term. Carrier is something to with the employees personal growth. It is very important that a company should identify & act upon its employees carrier & development. When it comes to the appraisal, Career plan section to be filled by the Appraisee in consultation with the Appraiser. Development plan to be filled by the appraiser in consultation with the Appraisee. This information will be linked to the Training Needs Analysis.

Apraisee to fill
1.

Career aspirations (Interest in other positions/functions). List out Jobs that you might be interested in as a part of your growth and development. Target Position ( In order of priority) HR Coordinator HR Executive Assistant Manager HR Manager HR Director HR

Priority 1 2 3 4 5 Appraiser to fill

2. Strengths and skills to support the above Eg; Hard work, good inter personal skills, technical knowledge.

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3. Areas for Development to support above Short Term Training / Development Eg; Communication skills, Sponsorship to Human Resource Management related diploma Long term areas of development Eg; Personality Development, (Refer Section E of the Annexure)
INDIVIDUAL PERFORMANCE SUMMARY

This includes a summary in terms of Past Performance Ratings, Significant Achievements, Strengths, Significant Misses, Career Aspirations, Development Area & Action Plan( Including training, coaching, cross functional moves etc) Potential next moves ( Short term & Long Term ) This would give a clear picture of the apraisees progress over the period. This information is very important in terms of promoting or demoting employees. For Example, If the company objective is to reduce the number of staff and wanted to reduce the staff cadre, then in order to offer a VRS scheme it needs to identify the employees who has not performed well, So this information could be used as a tool. In terms of carrier development, this information is critical in order to plan out an employees carrier path. (Refer Section F of the Annexure)
STEPS IN PERFORMANCE APPRAISALS

1. After agreeing with the goals, employee enter them in the PMS module in SAP 2. Freezing of objectives in SAP. After updating the goals divisional Head Freeze the objectives for controlling purposes.
3.

Mid year Self review - Appraisee do this review and with the Appraiser and have a discussion in terms of following. progress on goals and records ratings accordingly

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Appraiser suggests counter measures in case the progress is not as per schedule Both of them agree on a performance rating and sign off the form

The goals can be changed if both realize the goals cannot be achieved due to exceptional circumstances. If goals are changed, a new Goal Planning Form is filled & the new goals have to be approved by the Divisional Head.
4.

Perform final Appraisals - Here Appraisee rates himself and forwards it to the supervisor. Supervisor then put his rating and gives reasons for disagreements. Then finally considering all he puts the overall rating. Then the appraisal will be evaluated at the Management committee meeting with the cross functional heads so that it ensures unbiased rating for the employee. In most of the cases it is a fact where employees are not contented with the performance appraisals due to this reason. The supervisor is answerable for his ratings over the appraisee and if he cannot justify, the committee decide the appropriate rating.

5.

Feedback - After the final rating is decided the feedback will be given to the appraisee with another cross functional manager. Here it is discussed all the plusses and minuses and areas to be developed and significant misses. Then with the agreement of the Appraisee the Appraisal Process is finalized.
TRAINING & DEVELOPMENT

In WearWell, our progress depends on qualified, technologically savvy professionals. To this end, our HR strategies include broad based Training and Development (T&D) purviews encouraging innovative thinking. Anticipation of our expansion and off-shore projects as well as the higher concentration of skills and talent development led to doubling the budget to cover 173 internal and external programs, which were based on developmental and business requirements.

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Training and development is the heart of any market leader in any industry. The company who invests firstly and who invests big in research and training in their industry, can lead the market for that industry. And in Sri Lankan context that is very true, as the companies who has robust and insightful training plan, has excelled. It ensures theres a pool a such attributes, in the workforce, which will enable the organization to meet its future needs. The purpose of T&D needs to be, clearly understood as a basis of their appropriate use. From the organizations point of view, they have been defined as; To maximize the productivity or service provision. To develop the adaptability of the workforce. To develop the organization as a whole To increase the job satisfaction and the moral To increase safety standards. To make the best use of existing materials and resources. To standardize working practices and procedures.