PPT Infom Performance Appraizal Download Pms Process Ownertraining 6mayv1

Overview of the new Performance
Management System
“PARIVARTAN”
ISPAT Industries Limited
Date: 6th May, 2003
ISPAT
Objective of today’s discussion
Understand... Basis & rationale for the new PMS - The why
Discuss... What to measure in the new PMS - The what
Demonstrate... Performance Appraisal Process - The how
Define... Key Roles in the new PMS- The who
Familiarise... The Communication material - The tools
Internalise... The PMS Process - Lets Work an Example
Hewitt© 2003, All Rights Reserved 2

Guiding principles for the workshop
• Cell Phones in silent mode please
• Your contribution is key to the success of the workshop
• Sessions are meant to be interactive, and not presentation focused
• Your comments and views are welcome during sessions
• Only one speaker at a time please
• No criticism directed at individuals

Your Role
Focus Group Members & Process Owners
Your Responsibilities include

Understanding the PMS thoroughly
• The Process
• The implications
• Its Linkages
• The tools that ensure fairness of process
Focus Group Members

You have to explain this to people in your Departments - you will have to
explain the process and quell doubts
Process Owners
You have to implement this system and own it going forward

Session 1:
Need for “Parivartan”
ISPAT

So what is “Parivartan”???
• It is the name of Ispat’s new Performance Management System
• It covers the executive cadre spanning grades E08 to E19
• Your appraisal for 2003-04 will be conducted as per Parivartan
PARIVARTAN stands for excellence, sharp growth through performance

and alignment to business goals. It reflects the spirit of ISPAT’s endeavours
towards aligning each individual’s performance to the strategic thrust of the
organisation.

Need for “PARIVARTAN”
“Parivartan” was needed to ensure the following
• Clear alignment of individual performance with Corporate, Division &

Department goals
• Objective measurement of performance against targets plus
assessment of skills and abilities
• Uniformity and consistency of the process across the organisation,
clearly aligning it with the corporate MIS
• Clear defined steps in the process with clearly articulated roles for each
player, minimising scope for subjectivity
• Ownership of PMS by line, HRD as a facilitator only
• Visible and transparent linkage with rewards and other HR systems
• Simplicity and ease of administration - assuming future technology
enablement
Parivartan aims to meet these basic objectives...
Drive vision and Address the

performance across the shortcomings of the
company
 current PMS system
Meet key stakeholder

expectations from the
new PMS
Top Management Perspective Appraiser Perspective Appraisee Perspective

Build Performance Focus 
Facilitate process of planning, 
Provide clear performance

Alignment of individual monitoring & review definition
with corporate goals  Make an objective assessment  Transparency in the

Consistency in the of performance. process
performance planning 
Enable him to provide objective 
Clear linkage with rewards
process feedback & other HR systems
 Ownership of performance  Enable focus on capability
by line development of appraisee

Session 2:
What to Measure in
“Parivartan”
ISPAT

Definition of Performance - “Parivartan”
Key Responsibility Routine

Areas Responsibilities
•Routine Responsibilities
•KRAs are “Critical
are “on-going tasks or
Achievements” required
outcomes that are
to deliver Ispat’s desired
undertaken or delivered on
business results
a day-to-day basis
•The targets for these are
•The targets for these come
derived from the
from the targets on process
Corporate goals and
efficiency that are either set
objectives- these have been
internally in a
derived through the
department/division or as a
Balanced Scorecard
part of initiatives like Six
exercise
Sigma

Position Title Department Head
Division HSM & Projects
Function / Department SMS
Reports to Department Head – HSM Operations
Purpose of Position:
Ensure coordinated and effective functioning of SMS to meet production volume, productivity and cost targets.
Key Responsibilities:
1. Root cause analysis and process innovation
Achieving
2. Analyzing the reports generated by the various section heads to remove anomaliesthe
in Cost cuttingor repetitive
production
problems targets set at x%
 Analyse processes to identify innovations and cost reduction measures
3. Ensuring that the production targets are met by implementing the production plan.
e
Coordinate with Maintenance to ensure speedy resolution of major problems / breakdowns
ti v
4. Coordinate with Maintenance to ensure speedy resolution of major problems / breakdowns.
r a
5. Plan production of the department such that it is aligned to the production rate in the downstream departments viz.,
t
Caster & Mill.
l us
6. Coordinating with PPIC in the preparation of the production plan by providing inputs on the department production
capacity
l
I
7. Coordinate with the BF to resolve quality issues with respect hot metal received.
8. Conduct Techno commercial evaluation of vendors for purchase of consumables.
9. Coordinating with stores to ensure that the requisite supply of consumables for the department is available at the
plant.
10. Implement new management initiatives like TPM, PMS, SCM etc.  Completion of vendor evaluation
11. Ensuring that the safety norms are met in the department wide operations.within timelines
 This is a Routine Responsibility
12. Ensuring that subordinates are motivated and ensuring that they have adequate opportunities for skill enhancements
through on the job training and job rotation.

Identifying Key Result Areas
KRAs are directly linked to the Ispat’s business goals and to ensure
that alignment, Hewitt has used a tool called the “Balanced Scorecard”
Balanced Scorecard - a recap

•Framework for articulation of corporate strategy
•Development of strategic initiatives along 4 themes - Financial,
Customer, Internal Process and Learning & Growth
•Deriving the Division objectives and initiatives from the
corporate objectives and initiatives
•Cascading the Division objectives and goals into the
department objectives and initiatives
•Carrying on this process to identify the individual scorecard
that is aligned to the corporate goals
What is a Balanced Scorecard
The Balanced Scorecard is a way of using financial and non-financial

measures to provide a well-rounded report on past performances as
well as an indication of future performance
Financial
Main Driver of Performance
How do we look
against the Secondary Influence
financial objectives
of our owners?
Customer
Internal Process
How do we look Mission
What must we
to the customers Values
excel at for our
that we want to Vision customers?
attract?
Learning &
Growth
How do we get
better at
improving?
Key benefit of using Balanced Scorecard is to align
performance to strategy
Measure business performance using a set of key result areas that are
based on business drivers and linked to the business strategy
Easy communication of strategy throughout the organisation
Assist in the close alignment and prioritisation of current and proposed

strategic initiatives
Assist in the definition of objectives and scope for key projects
Improved employee satisfaction through aligned reward and recognition

schemes and better two-way communication

The perspective provide a balanced view
Customer Perspective Financial Perspective

• How do customers see the • How do we appear before our
organisation shareholders
• Mix of internal & external • Measures a product of robust
measures financial control systems
• May reflect customer concerns • May include cash flow, quarterly
such as time, quality, results, sales growth, operating
performance, service and costs income, market share, ROE etc
Internal Perspective Learning & Growth Perspective

• What is it that we must excel at • Can we continue to improve and
create value
• Should directly impact
employees so that clear targets • Designed to measure the
are specified company’s capacity to innovate
• May include cycle time, • May include new products, new
productivity, quality etc. customers, new markets etc

Articulating Corporate Strategy
Ispat’s Corporate Strategy was captured in Strategy Maps, articulated
separately for Dolvi and Kalmeshwar.
Strategy Map: Dolvi
ISPAT Corporate Strategy Map
Financial Strategy Shareholder wealth creation
Topline Growth Prudent Financial Management Cost reduction
Customer Strategy Value for money

Standard products Reliable supplier Right Pricing
Maintain relationships
Process Strategy Operational Excellence

Expand markets Focus on business intelligence Reduce input costs
Applying new technology Enhance productivity Reduce Transaction costs
Learning & Growth Strategy Build capabilities for the future

Technological Innovation Build Competencies Managing Change

Cascading Corporate Strategy
ISPAT’s Performance Measures and Targets
Financial Customer
Process Capability
Unit Sector Corporate Department & Function

Performance Measures & Targets Performance Measures & Targets Performance Measures & Targets
Financial Customer Financial Customer Financial Customer
Process Capability Process Capability Process Capability
Departmental Measures & Targets
Product Groups Materials Planning Support Services Other Services

Financial Customer Financial Customer Financial Customer Financial Customer Financial Customer
Process Capability Process Capability Process Capability Process Capability Process Capability
Individual & Team Measures

Measures Targets Measures Targets Measures Targets Measures Targets Measures Targets
Measures Targets Measures Targets Measures Targets Measures Targets Measures Targets
1. 1.
Measures Targets 1. 1.
Measures Targets 1. 1. 1. 1. 1. 1.
2. 1. 2. 1. 2. 1. 2. 1. Measures Targets Measures Targets Measures Targets
2. 1. 2. 1. 2. 1. 2. 1. 2. 1. 2. 1.
3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1. 3. 2. 1.
4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2. 4. 3. 2.
4. 3. 4. 3. 4. 3. 4. 3. 4. 3. 4. 3. 4. 3. 4. 3. 4. 3. 4. 3.
4. 4. 4. 4. 4. 4. 4. 4. 4. 4.

Obtaining Measures and Targets
Strategic
Measures Targets
Themes
n t
m e
r t
epa
n tD
m e io n
ru it ivis
e c D
r R RG
e f o in C
at iv it h
st r w
Ill u
Through the above exercise, we have developed a database of Corporate,

Division and Department measures and targets, which will be used
to identify individual KRAs 18
Hewitt© 2003, All Rights Reserved
Development through PARIVARTAN
A key element of Parivartan, focusing on building individual capability

using Competencies. Competencies are “Skills and abilities described
in behavioral terms that are coachable, observable, measurable, and
critical to organizational performance” for e.g., teamwork
– No marks assigned - used only for Development
– 11 Competencies have been identified and defined
– 4 Levels of Proficiency and behavioral indicators defined for each

Competency

Recap
Measurement framework includes
• Key Result Areas - Derived from the Corporate Strategy and Goals
•Routine Responsibilities - Present in the Job Descriptor with targets that
are set internally or through initiatives like six Sigma
Development tools include

• Competencies with proficiency levels defined for each unique role in
Ispat
•To be used only for development activities
Key Features
• Targets defined for each performance indicator- this ensures objectivity
in the system
•Focus on behavioral competencies that are enablers for employees to
meet their performance targets

Rating scale for Performance Evaluation
The rating scale used for the evaluation of performance on KRA’s is a five point scale and is
explained below:
1: Exceeds Expectations consistently - Consistently exceeded the expectations beyond a point

which deserves special mention
This is the highest rating and is given when the results put in by an individual is truly outstanding.
2: Exceeds Expectations occasionally - Exceeded most of the set expectations by a reasonable

margin
This rating is to be used when a majority of the the set expectations were exceeded and outcomes
and efforts were above average.
3: Meets Expectations consistently - Met all the set expectations as per target
This rating is the average rating, when an employee delivers what s/he is bound to deliver. Needs
to be given only when all the expectations were met.
4: Meets Expectations on most occasions - Met most of the set expectations

When an employee meets most, but misses some of the expectations, this rating is applicable.
5: Does not meet Expectations on most occasions - Failed to meet most of the expectations.
When a majority of the expectations are not met, this rating is applicable

Session 3:
The Process -
“PARIVARTAN”
ISPAT

Appraisal Cycle - Timelines

Overall Performance Planning Cycle
Corporate Performance End

Planning Session February
Division Target Setting Mid-to-end

March
Session
Individual Performance
Planning Session
Q4: Final Performance Mid-April

Appraisal
1st week Q1: Appraisal review &
April
feedback
Mid-July
Ongoing monthly review
Q3: Appraisal review & and feedback
feedback
Mid-January
Q2: Appraisal review &
feedback
Hewitt© 2003, All Rights Reserved Mid-October 24
Corporate and Division - Performance target setting

Overall Performance Planning Cycle


March
Session
Planning Session
Q4: Final Performance Mid-April

Appraisal
April
feedback
Mid-July
feedback
Mid-January
feedback
How does Corporate Performance get measured?
Objective • To measure achievement of stated strategic corporate objectives
Step 1 Step 2 Step 3
Define Business Success Set corporate targets and Review and measure achievement
Criteria for the corporate weightages for the quarter against targets every quarter
Key features
• Coincides with the annual Corporate Budgeting session

• Business Success Criteria defined here, at the beginning of the first quarter (Mid-March to end-March)
• 4-5 performance goals, typically from the corporate scorecard as part of the Business Plan
• Corporate targets set once every quarter (Q1: Mid-March, Q2: Mid-July, Q3: Mid-October, Q4: Mid-
January)
• Targets defined on a 5-point scale, enabling objective measurement of achievement
• Weightages against Corporate targets to be decided once a year and spread across 4-5 goals defined
• Review occurs through quarterly monitoring of the Business Plan
Corporate Performance Planning - An illustration
Defining Business Success Criteria and
setting Targets and Weightages
Targets set at 5 Levels
Business Success
Weight 1 2 3 4 5
Criteria
Revenue ( Rs Crores) 40% 2600 2800 3000 3200 3300
Market Share ( %) 20% 37% 40% 45% 48% 50%
Cost Reduction 20% 260 280 300 320 330
% Utilization 20% 70% 70% 75% 80% 85%
Review & monitor achievement
Business Success
Weight Achievem ent Perform ance Level Score
Criteria
Revenue ( Rs Crores) 40% 3050 3 1.200
Market Share ( %) 20% 46% 3 0.600
Cost Reduction 20% 301 3 0.600
% Utilization 20% 72% 2 0.400
Overall Score 2.800

How does Division Performance get measured?
Objective • To measure achievement of stated division targets and objectives
Step 1 Step 2 Step 3 Step 4
Define Business Set Division targets Identify and ensure Review and measure
Success Criteria and weightages for element of stretch in achievement against
for the Division the quarter targets targets every quarter
Key features
• Identical to Corporate Performance Planning

• In addition, consistent element of stretch ensured by incorporating the ‘Stretch Tool’

Anchoring Targets to the Rating Scale
Business Success Criteria Target
Order Booking Rs. 20 Crore
1 2 3 4 5
Significantly Moderately Meets Moderately Significantly
Below Below Expectations Above Above
Expectations Expectation Expectations Expectations
15 Crore 18 Crore 20 Crore 22 Crore 25 Crore
The required level of achievement for each point on the Five Point Rating Scale
must be defined

Division Performance Planning - An illustration
Defining Business Success Criteria

Targets set at 5 Levels
Business Success Criteria Weight 1 2 3 4 5
Expand Share of Wallet 40% 16,00,000 18,00,000 20,00,000 22,00,000 23,00,000
Acquire New Customers
20% 15 18 20 22 24
(Nos.)
Reduce cycle time for key
20% 7 6 5 4 3
customers (Days)
Reduce Administrative
20% 2,50,000 2,20,000 2,00,000 1,90,000 1,75,000
Costs
Review & monitor achievement
Business Success Criteria Weight Achievement Performance Level Score

Expand Share of Wallet 40% 22,00,000 4 1.600
Acquire New Customers (Nos.) 20% 18 2 0.400
Reduce Cycle Time for Key
20% 4 4 0.800
Customers (Days)
Reduce Administrative Costs 20% 2,00,000 3 0.600
Overall Score 3.400

Uniformity in targets
The Challenge
There are a number of different divisions in Ispat - how do we ensure that
the targets set for each of these different divisions have the same level of
difficulty in achieving them
This problem is evident when you consider the two broad set of activities
— Production divisions
— Support divisions
Criticality
This is critical because there is a component of the pay that is linked to the
achievement of targets.
It is imperative to ensure that meeting targets across all divisions of Ispat
means the same level of efforts have been put in by the incumbent
Solution
We ensure this by using a Stretch Tool

So what is a Stretch Tool all about..
• To ensure that the same level of difficulty is built into the targets defined for
Objective
each of the divisions, once a year at beginning of Q1
Definition of • Definition of ‘stretch’ on four parameters

Stretch
• Each parameter defined on a 3-point rating scale (Low, Medium, High)
• Rating needs to be defined for each target for the Division
• Standards on the 3-point rating scale to be set by the Top Management (Core
Team)
• Determine “Stretch” levels for each Corporate Target

Stretch
Computation • Arrive at Average Corporate Stretch Score
Process
• For each division:
—Determine stretch for each target
—Compute “average” stretch score
—Align it to the “Average Corporate Stretch”

Definition of rating for each parameter of ‘stretch’
1 2 3
• Standards of timeliness
• Standards of timeliness • Standards of timeliness
(deadlines), quantity, quality
(deadlines), quantity, quality (deadlines), quantity, quality
and costs of outcomes
Relative to previous and costs of outcomes can and costs of outcomes
require very significant,
achievements be met with normal effort. require significant effort.
sustained effort. Requires
Standards have been Standards have been met
standards that have never
regularly met before once or twice before.
been met before
• The outcome can be

• Outcome is largely driven by
Degree of largely controlled and • Outcome depends upon
uncontrollable factors and
dependence on uncontrollable factors uncontrollable factors to a
hence requires extensive
uncontrollable cannot cause major certain extent.
contingency planning.
disruptions.
• Focused and dedicated time

• Existing skills may be • Required skills can be
and resources will be
Skill Requirements challenged, but new skills developed from training with
necessary to gain required
are not required minimal disruption
skills
• Deliverables are clearly

• There is consensus, but not • Multiple, divergent views on
Degree of ambiguity defined
universal agreement on the target outcome must still
in defining outcome and are similar
target outcomes. be reconciled.
to previous deliverables.

Defining ‘Stretch’ targets - An illustration
Parameters and weightages
Dimensions of Stretch Degree of Difficulty

Low Moderate High
Relative to Previous Years 1 2 3
Dependence of Uncontrollables 1 2 3
Skill Requirements 1 2 3
Ambiguity in Defining Outcomes 1 2 3
Total 4 8 12
Assessment of stretch for a target - Corporate Revenue
Dimensions of Stretch Degree of Difficulty

Low Moderate High
Relative to Previous Years 1 2 3
Dependence of Uncontrollables 1 2 3
Skill Requirements 1 2 3
Ambiguity in Defining Outcomes 1 2 3
Total 9
Likewise, stretch scores will be calculated for all the corporate targets. It is to be
noted that stretch scores will be calculated by taking the target defined at “Level
3” or “Met Expectations” or “At target”.
Once all the corporate stretch scores are calculated, we will take an average of
the same. This average will then form the basis of equating stretch levels for all
the divisions.
Compute Average Corporate Stretch
Business Success Stretch Scores

Criteria
Revenue (Rs. Crores) 9
Market Share (%) 10
Cost Reduction 10
% Utilization 7
Average Stretch Score 9
This score of 9 will serve as the basis of calculation of each of the division’s
targets. The Core Committee will need to ensure that the average stretch score
calculated for the targets of a division is 9 or close to 9 [In the range of + - 1, i.e.,
8 to 10]

For e.g., for the Marketing Division, the Stretch tally could look as illustrated
below:
Compute Average Corporate Stretch
Raw Stretch Score

Expand Share of 10
Wallet
Market Share 8
Profit 9
Customer Satisfaction 9
Average 9
Therefore, the Marketing Division has an average stretch score of 9.
In case the average stretch score does not fall within the range for a particular
division, the Core Committee will revisit the targets.

Individual performance targets

Individual Performance Planning


March
Session
Planning Session Mid-April
Q4: Final Performance

Appraisal
April
feedback
Mid-July
feedback
Mid-January
feedback
Performance and Development Planning
Performance Development
Planning Planning
Routine
KRAs
 Responsibil
ities
Competenci
es  Other Skill
Gaps

Evaluation of Individual Performance
Objective • To set “clear performance expectations” from the individual
Step 1 Step 2 Step 3 Step 4
Performance Monthly reviews and Quarterly appraisal, Final Performance

Planning feedback review and feedback Appraisal [Q4]
[Q1, Q2 & Q3]
Key features
• Performance measured on KRA’s and Routine Responsibilities

• KRA’s, typically from the Department scorecard, identified at the beginning of the year
• Targets, set once every quarter (Q1: Mid-March, Q2: Mid-July, Q3: Mid-October, Q4: Mid-January)
• Pre-determined weightages based on job type and Division category
• Monthly reviews between appraiser and appraisee (important to ensure that any relative change in
importance of particular KRA gets reflected or updated in the form)
• Appraisal & feedback on a quarterly basis
• Rater bias removed through the introduction of a reviewer
Performance Planning [and linkages to pay-outs]
Quarterly [Q1, Q2,
Accentuating performance on key result areas Q3 & Q4]
• From Department Final Score

BSC (max. 8)
Key Result Areas covering at least 1 Simple Average
from each category Will serve as the basis
of BSC
for variable payout
Overall Performance Rating Annually [End of Q4]
• Average of Relative
Key Result Areas quarterly “Final Weightage Overall Score
Scores” [As for KRAs
depicted above]
Will serve as the basis for
Relative
Routine • Based on an Weightage fixed pay increases or
Responsibilities understanding of for Routine
the role (max. 4- Responsibilit
promotional decisions
ies
5 nos.)

Writing “SMART” Goals
A SMART Goal describes and quantifies an outcome and specifies
accountability; the resulting objective should be:
 Specific — focused on a key outcome
 Measurable — either quantifiable or verifiable; so that it’s clear whether or

not the objective has been accomplished
 Attainable — within your control and limited enough that, with a reasonable
or stretch effort, it can be accomplished
 Relevant — important to your role and to the function or department
 Time limited — achievable within a certain time period

Writing “SMART” Goals (contd.).
S MART Goal
Specific Focused on a key outcome
A Goal Without SMART A Specific Goal

Become a better presenter When presenting, I will ensure that my audience
understands PARIVARTAN features and benefits.
S M ART Goals
Measurable Either quantifiable or verifiable; so that it’s clear whether or not

the goal has been accomplished
Original Objective Without SMART A Measurable Goal
Become a better presenter When presenting, I will ensure that my audience understands
PARIVARTAN features and benefits, by pacing the presentation
to the listener(s) and handling questions appropriately. I will ask
other employees present at the meetings to provide feedback on
these behaviors: productivity, costs, time and quality

SM A RT Goals
Within your control and limited enough that, with a reasonable
Attainable
or stretch effort, it can be accomplished
Original Goal Without SMART An Attainable Goal

Become a better presenter When presenting, I will ensure that my audience understands
PARIVARTAN features and benefits by pacing the
In order to determine whether or not my objective is presentation to the listener(s) and handling questions
attainable, I’ll ask myself: Do I have the skills and appropriately. I will ask other employees present at the
knowledge needed? For example, do I know how to meetings to provide feedback on these behaviors.
appropriately answer questions during a presentation?
If not, I may want to seek coaching on this skill or take a
presentation skills class.
SMA R T Goal
Relevant Important to your role and to the function or department
Original Goal Without SMART A Relevant Goal

Become a better presenter To improve my communication with clients, I will ensure that
my audience understands PARIVARTAN features and
In order to determine whether or not my objective is benefits by pacing the presentation to the listener(s) and
attainable, I’ll ask myself: Do I have the skills and handling questions appropriately. To ascertain the need of the
knowledge needed? For example, do I know how to presentation, I will check with my audience beforehand. I
appropriately answer questions during a presentation? will ask other employees present at the meetings to provide
If not, I may want to seek coaching on this skill or take a feedback on these behaviors.

SMAR T Goals
Time Limited Achievable within a certain time period
Original Goal Without SMART A Time-Limited Goal

Become a better presenter To improve my communication with clients, I will ensure that
my audience understands PARIVARTAN features and
In order to determine whether or not my objective is benefits by pacing the presentation to the listener(s) and
attainable, I’ll ask myself: Do I have the skills and handling questions appropriately. To ascertain the need of the
knowledge needed? For example, do I know how to presentation , I will check with my audience beforehand. I
appropriately answer questions during a presentation? will ask other employees present at the meetings to provide
If not, I may want to seek coaching on this skill or take a feedback on these behaviors.
I will make a similar presentation once a quarter.

Action Planning
The Action Plan describes the specific steps, milestones and

resources planned by the Appraisee to accomplish the KRA or
Routine Responsibility.
KRA Target
Order Booking Rs. 20 Crore
Action Plan:
– Scan the market on an ongoing basis to identify opportunities
– Analyze existing customer base to identify possibilities of repeat orders
– Reduce cycle time to submit proposals/tender
– Conduct analysis identifying reasons for loss of past orders and determine weather loss was due to
technical or commercial reasons
– Gather market intelligence on pricing strategy of competitors and keeps units abreast of the same
– Have on-going discussions with units on bids being prepared so as to ensure that optimal techno-
commercial bid is prepared

Development Planning
Developmental
Competencies
Competencies
Competencies to be A maximum of 3, to be
picked from the identified from the list
Competency Master
and expected levels Development Plan
Other Skill Gaps
applicable to the role
to be identified (Behavioural/
Technical)
Any number, agreed upon
by the Appraiser and the
Appraisee, based on the
specific needs of the role
Forms the basis for the Training Calendar drawn by HR.

Training Needs The Appraiser to drive the “learning and development” of the
Appraisee throughout the year, based on this Development Plan

Monthly Reviews and Feedback


March
Session

Appraisal
April
feedback
Mid-July
feedback
Mid-January
feedback
Monthly Reviews
Objective • To ensure that targets reflect market realities- as reflected in the “Monthly
Rolling Plan”
Applicability • Divisions where the targets are very flexible and their realization depends upon
market forces - like the various Production units
• The division heads of the respective divisions need to decide at the beginning of
the year whether monthly reviews are required for their divisions
Process
• Appraisee does self appraisal and determines how he/she is performing against the targets set for the
quarter
• Appraisee and Appraiser have a discussion around the targets and the Appraiser gives Feedback to
the Appraisee on his/ her performance
• If required, Appraisee and Appraiser revise targets for the quarter to reflect market realities [This is to
done only if necessitated by business realities]

Quarterly Appraisals [Q1, Q2,Q3 & Q4]


March
Session

Appraisal
April
feedback
Mid-July
feedback
Mid-January
feedback
Quarterly Appraisals [Q1, Q2,Q3 & Q4]
Objective • To assess performance of the Appraisee on KRAs, against the targets outlined
for the quarter - The industry characteristics (fast changing) are such that it is
imperative to capture quarterly performances
Process • Your Appraiser will rate your performance on the KRAs articulated at the
beginning of the year on the basis of the Action Plan or Steps Taken by you for
its accomplishment and the extent of achievement against outlined targets for
the period.
Appraisal Q1 Appraisal 1st Week of July

Schedule
Q2 Appraisal 1st Week of October
Q3 Appraisal 1st Week of January
Q4Appraisal 1st Week of April
Computation of Your Final Score for the quarter will be arrived by adding up the individual
“Final Score” ratings on each KRA and dividing it by the no of goals or KRAs . This will give
you your score on KRAs.
Final Score = (Average of Scores on each KRA for the quarter
* Scoring will be done based on the 5 point rating scale mentioned in the next section.
Final Appraisal
Objective • To assess overall performance of the Appraisee on KRAs and Routine

Responsibilities and to assess development against the Development Plan
charted at the beginning of the year
Time • End of Q4 [First Week of April]
Process
• The Appraisee undertakes a self-appraisal and gives a rating on all the KRAs for the quarter [Q4] and
Routine Responsibilities
• The Appraiser then does the assessment & rating.
• He/ she also reviews the actions taken towards achievement of the Appraisees’s development plan.
• The Reviewer then reviews the ratings. At any stage the appraiser and/or reviewer can call for a
discussion with the Appraisee.
• The overall rating has to be a consensus between Appraisee, appraiser & the reviewer.
• In case of a dispute, the reviewer’s rating will be treated as final and will feed into the Overall
performance score of the Appraisee.
• After ratings are finalized by the Reviewer, they are consolidated by HR and then, checked for “Rater
Bias”
Final Appraisal
Computation of Your Overall Score for the year will be arrived by taking a weighted sum of
“Overall Score” ratings on routine responsibilities and average of ratings on KRAs for the 4
quarters.
Overall Score = ((Average of Final Scores on KRAs for the 4 Quarters) * KRA
Section Weightage) + ((Average of scores on Routine Responsibilities) *
Routine Responsibility Section Weightage)
Overall Performance Rating Annually [End of Q4]
• Final Score for Q1

• Final Score for Q2 Relative
Key Result Simple Average Overall Score
• Final Score for Q3 Weightage
Areas • Final Score for Q4 for KRAs**
Will serve as the basis for

Routine • Scores on Relative
Routine Weightage fixed pay increases or
Responsib Simple Average
Responsibilities for Routine
ilities Responsibilit promotional decisions
ies**
* Scoring will be done based on the 5 point rating scale as discussed earlier
** Relative Weightages for KRAs and Routine Responsibilities are detailed in the following slide

Relative weights for KRA’s and routine responsibilities
Objective • Top management to have greater relative weight on achievement of KRA’s

vis-à-vis routine responsibilities (as compared to Middle Management and
Junior Management)
• Support or service functions to have greater relative weight on
achievement of routine responsibilities than KRA’s (as compared to non-
support/ production functions
Core Functions(Production)
Non-Support (For e.g., HSM, SIP, BF
Divisions [Foretc.
e.g., HSM, SIP, BF)
Weightages KRAs Routine Responsibilities
Top Management 70% 30%
Middle Management 60% 40%
Junior Management 50% 50%
Support Divisions (For. e.g., CRG, Finance etc.)

Weightages KRAs Routine Responsibilities
Top Management 50% 50%
Middle Management 40% 60%
Junior Management 30% 70%
Note: Classification of grades/ bands into Top, Middle & Junior Management will need to be
decided
Removing rater bias
Objective • To improve the consistency and soundness of the evaluation process

• Removing rater (appraiser) bias through introduction of a reviewer
• Applicable to final scores (arrived at in each quarter) and the overall
performance score (computed at the end of the fourth quarter)
Calculate the average of all the “overall ratings” given by an appraiser to

1
Methodology each employee. Call this A
Calculate the average of all “average overall ratings” (or average of all
2
“A”s) given by all Appraisers. Call this figure B.
3 Now check for variance for each Appraiser - (A-B)/ B * 100 = x%
4 If x% falls in the range -10% to 10%, there is no rater bias.
If it does not fall in this range, there is a possibility that rater bias may be
5
occurring, and hence this forms an outlier
For such outliers, the appraiser has to give justification for the rating given
6 and if the reviewer feels that the justification is not sound enough, he/she
may direct the appraiser to revisit the rating
Assessing Development Plans
Assessing Development Plans

 During the year-end appraisal, the Appraiser will rate the Appraisee on the
Competencies, based on the 5 point rating scale mentioned below.
Rating Competencies*
 These ratings will be used only for “Developmental purposes” and will not
form a part of the “Overall Score” and will thus not be linked to incentives or
increments.
 The Appraiser will also assess the achievement of the Development Plan of
Other Skills the Appraisee on Other Skills during the year, on the action plans charted
by the Appraisee. This however, will not result in any scoring of any sort
 Based on the “current performance levels” of the incumbent, the Appraiser,

Career Aspirations* in consultation with the Appraisee, will capture “Career Aspirations” for the
Appraisee, if any will provide his/ her assessment of the readiness/ potential
of the Appraisee based on the scale mentioned in the next slide.
* Scoring will be done based on the 5 point rating scales detailed in the next slide
Rating Scales for Competencies and Career Development
For Competencies
A: Role Model- Encourages and influences others to display the skill.
B: Strength- Almost always demonstrates behavior/skill where appropriate
C: Capable- Often demonstrates the behavior/skill
D: Development Area- Sometimes demonstrates the behavior/skill where appropriate
E: Learner- Has not yet demonstrated the behavior/skill.
For Assessing Potential

The following five point rating scale will be used:
High - This individual can advance well above (one or two levels above) current position
Moderate - This individual shows potential for taking on greater responsibility or moving to next
management/technical level over a period of 6-12 months
Limited - This individual can continue to contribute significantly in his/her current
position, but may have limited upward growth opportunities. A lateral move may be an appropriate
growth opportunity for this individual
• Key Resource - This individual is a key resource in his/her current position. This vital
knowledge precludes movement at this time, but development opportunities should continue to be
identified
Too New - This individual has been in his/her current position less than six months and is too
new to evaluate

Feedback Sessions

Ongoing Coaching & Feedback
Objective:
Improve employee performance and job satisfaction
through ongoing communication between the manager
and employee.
The benefits are mutually understood expectations, clear
priorities, improved work methods and early recognition
of positive or negative trends
Your Responsibilities:
•Initiate session
•Ask for feedback on performance
•Discuss difficulties that you are experiencing
•Seek coaching for improved performance
•Ask your manager periodically
• to review you

Coaching & Feedback
What is feedback and coaching?
What types of messages can I get from feedback?
What messages are inappropriate?
How should one I seek feedback & coaching ?
How should I handle negative feedback?

A Continuum: Feedback and Coaching
Coaching
Long-Term Impact on Performance
Feedback
Exploring new
behaviors to
Information extend or enhance
Evaluating the performance
impact and desired
A comment change of behavior
about
behavior

What Is Feedback?
Information about performance that reflects:
What you do and how you do it
How it compares to what is expected
Based on observable, specific, job-related actions or

behaviors:
Both positive and corrective
Requires open, face-to-face communication
Critical to attain or maintain desired performance

Elements of Effective Feedback
• Describe the Behavior
• Explain the Impact of what was done well/not done well
• Discuss how is should be done Tomorrow

Reinforcing Positive Behavior: Example
• Behavior
— “You went out of your way to get Anita to focus on the
technical problem…”
• Impact
— “…that helped us remove the production obstacle and
deliver on time...”
• Tomorrow
— “…keep showing that type of initiative. Working in teams
means using individual strength areas…”

Giving Feedback for Improvement: Example
• Behavior
— “I’ve noticed you do most of the talking in our team meetings”
• Impact
— “You have years of experience and helpful perspective to bring to
the table and I think everyone on the team recognizes that…but
with each successive meeting, the others seem more and more
reluctant to speak up...the whole point of us getting together is to
benefit from multiple perspectives”
• Tomorrow
— “Try to focus more on listening in our next few meetings and let’s
see if that encourages broader participation”

Tips on Collecting “Feedback”
Collect feedback at least once

— Prior to mid-period review or year-end review
— At other appropriate times depending upon project milestones, key
events, etc.
Focus feedback on:

— Performance expectations (standard job activities)
— Display of key behaviors
Keep it simple—ask 2-3 questions

What is Coaching?
Engaging
Setting a constructive tone and
expectations for the discussion
• Describing
• Clarifying Exploring
Exchanging information and
generating ideas to
reinforce/modify
behavior or solve a problem
• Asking
Committing
• Suggesting
Forging ownership through
agreeing
on next steps and responsibilities
• Summarizing
Remember! • Action planning
 Ask for feedback

 Listen with an open mind
 Ask for additional information, explanation or clarification
 Acknowledge the feedback
 Use the feedback

A Final Word on Feedback and Coaching
• G oes both ways

Interrupt
• I nitiated by anyone
Jump to Conclusions
Argue • F ocused on behaviors
Rush
• T imely and frequent
Judge
Ignore • S pecific

The Linkages

Variable Pay
Score on KRA’s
component
Cumulative Score on Fixed Pay Increments

KRA’s and Routine
Responsibilities
Promotion Decisions
Rating on
Competencies
Training Plan
Development Plan

Role Player Who is the Role Player Role Description
Every Executive whose •It’s about your Performance

Appraisee performance is assessed in •You are the key driver of the process
PARIVARTAN
Every Executive who

Will help you manage your performance &
Appraiser assesses the performance
provide continuous feedback and
of one or more Appraisees coaching
that report to him/her
Reviewer Your Appraiser’s Appraiser,

who is responsible for Will ensure Objectivity, Transparency &
reviewing the entire Consistency
performance process
•Initiate the PMS process

• Identify Rater bias
Administrator This is the H.R -PMS
•Resolve conflicts
Division
•Closure of Appraisals by timely
completion of administrative procedures
involved
Session 4:
Communication Tools
ISPAT

The PARIVARTAN Handbook
ISPAT
Parivartan
Atool tohelpyouenhanceyour performance
• Easy to use guide, designed to take you through

Ispat IndustriesLimited AGuideforUsers
each stage of the Performance Management cycle
• It includes planning for your performance,

receiving feedback and helping you in your
development
• It details the scoring process, including the rating

scales
• It provides checklists of different
activities that the key Role-

The PARIVARTAN Handbook
ISPAT
• Easy to use guide, designed to take you through

each stage of the Performance Management cycle
• It includes planning for your performance,

receiving feedback and helping you in your
development Parivartan
Atool tohelpyouenhanceyour performance
• It details the scoring process, including the rating
Ispat IndustriesLimited AGuideforUsers
scales
• It provides checklists of different
activities that the key Role-
Holders in PARIVARTAN need to play
• It takes the reader through each
section of the PARIVARTAN
form in detail
76 Hewitt© 2003, All Rights Reserved
Feedback and Coaching
Activity List
[Ongoing]
Giving Positive Feedback:
Performance Planning Target Setting Appraisals [Q1, Q2 & Q3] Q4 Appraisal
 Recognise good performance often
 KRAs selected [Max 8] by Appraisee  Appraisee’s performance on KRAs  Appraisee’s performance on KRAs,  Provide specific examples in feedback
from the Balanced Scorecard for the assessed for the quarter Routine Responsibilities and messages
Department Competencies assessed for the  Describe impact of positive behaviour and
 Feedback and coaching on
quarter reasons to continue the behaviour
 KRA Targets set by the Appraiser performance provided
and Appraisee based on the  Feedback and coaching on  Listen to Appraisee’s viewpoints and ideas
 Mid-course corrections verified, if
corporate and division targets performance provided  Check to be sure clear communication has
required
 Routine Responsibilities defined by  Final score verified [Average of occurred
 Changes in measures incorporated,
Appraisee (Maximum 4-5) scores on KRAs] by Appriaser and Giving Negative Feedback:
if the need be, after approval from
reviewed by Reviewer  Express confidence in the Appraisee’s ability
 Action Plans defined for KRAs and the Appraiser & Reviewer
Routine Responsibilities  Overall score verified [weighted to improve
 Final score verified [Average of
average of Routine Responsibilities  Focus on behaviour that can be changed,
 Expected Competency Levels for the scores on KRAs] by Appriaser not the person
score and average KRA scores for
Appraisee’s role defined the 4 quarters] by Appraiser and
 Final score reviewed by Reviewer  Describe the consequences of negative
 Developmental Competencies [Max reviewed by Reviewer behaviour
 Scores checked for rater biases and
of 3] and other skill gaps identified  Offer support to remove obstacles
rectified, if the need be  Scores checked for rater biases and
 Performance & Development Plan rectified, if the need be  Share your expectations for future behaviour
 Final Score communicated to
finalised with Appraiser, approved by
Appraisee  Final and Overall Scores  Together explore options for solving the
Reviewer and communicated to problem
communicated to Appraisee
HRD
 Describe consequences of improved / not
improved performance
 Final Score given and communicated 1st Wk of Oct 2nd Wk of Oct
Feedback Q3 Target Setting Ispat Industries Limited
approved Q2 Appraisal, Review &
 Necessary between-cycle corrections
1st Wk of Jan
bias
O4] 2nd Wk of July Feedback
Responsibilities & Competencies for Q2 Target Setting Q3 Appraisal, Review &
 “Outliers” identified, to remove rater
Q1, Q2 & Q3 and on KRAs, Routine Monthly Reviews
— Ways to give feedback
reviewed  Self appraisal done [on KRAs for
 Performance & Development Plan Feedback 1st Wk of July 2nd Wk of Jan
approved by Reviewer Q1 Appraisal, Review & Q4 Target Setting
Reviewer  Performance & Development Plan Ongoing Feedback Effective
communicated to Appraisee agreed with Appraiser
to - 2004 performed
2003be
1st Wk of April
— Key Roles and activities

 Final Score given by Reviewer and  Development Plan articulated and 2nd Wk of April Feedback Changing the way of life @ Ispat
Q1Target Setting Q4 Appraisal, Review &
provided Routine Responsibilities
Score [annually] verified and feedback  Action Plans defined for KRAs and 2nd Wk of April
Final Scores [quarterly] and Overall [Individual]
Appraisee (Maximum 4-5) Performance Planning
— The PARIVARTAN cycleParivartan
Responsibility [annually], rated and
 Routine Responsibilities defined by
 Each KRA [quarterly] and Routine
corporate and division targets Mid March – End March
and discussed [Corporate & Division]
 Self-appraisal completed by Appraisee
and Appraisee based on the Business Planning
 KRA Targets set by the Appraiser
activities
• A ready checklist of:
expected Competency Levels selected
Department (Max 8) development ISPAT
 KRAs, Routine Responsibilities & End February Periodic & Ongoing
the Balanced Scorecard for the Draft Budget
Appraiser  KRAs selected by Appraisee from Unit/Business Sector
Responsibilities
Appraisee’s Responsibilities Performance Cycle
Appraiser’s & Reviewer’s
Ready Reckoner
Session 5:
Lets fill a form together
ISPAT

Annexure - I
The Process… Key Sections of the Form…
1 Personal Details
Now, this guide will help you understand how each
section of the form must be filled. Since Performance 2 Key Dates
Enhancement happens through the entire year, there are
some sections of the form that are filled earlier and some 3 Instruction Sheet
at a later point in time.
4 Process Tracker
The different sections in the form have been discussed in
5 KRA Section
detail, outlining how, where and by whom the said
section is to be filled. 6 Routine Responsibility Section
The form is available with the HRD department, and will 7 Competency Section
be provided to you and you Appraiser at the appropriate
time to complete the outlined activities in the process. 8 Development Plan - Competencies
In case you need further clarifications, please feel free to 9 Development Plan - Other Training Needs
contact your Appraiser, the PMS Champion in your
division or the HRD department. 10 Development Plan - Career Aspirations
11 Evaluation Sheet
12 Attestations

Sample Form….. 1 Personal Details
You need to fill in these sections before the Performance Planning Discussion.
Your Appraiser is your immediate boss and your Reviewer is your “Boss’s Boss”
Your Performance Scorecard

Personal Details
Emp. Code Location
Appraisee's Name Appraisee's Designation Appraisee's Division Department
ISPAT
Appraiser's Name Appraiser's Designation Appraiser's Division Department
Reviewer's Name Reviewer's Designation Reviewer 's Division Department

Parivartan
2 Key Dates
In this section, you need to fill the key dates in your Performance Assessment: The Performance Cycle, which is the “year”
for which the assessment takes place, Performance Planning and the 4 Quarterly Appraisals.
Key Dates
Perfo rmance Cycle - M MYY - Perfo rmance Planning - MMYY - M MYY Q1 Ap p raisal - MMYY - MM YY Q2 Ap p raisal Q3 Ap p raisal Q4 Ap p raisal
MM YY

Sample Form….. 3 Instruction Sheet
Has separate sets of instructions for the Appraisees and Appraisers.

Also gives directions on how to choose KRAs, and provides relative weightages for KRAs and Routine Responsibilities.
Instruction Sheet
Choosing 1. A maximum of 8 KRAs can be chosen for an Appraisee for a particular performance period.
KRAs
2. At least one KRA should be chosen in each of the 4 perspectives of the Balanced Scorecard, viz., Financial, Customer, Internal Process and Learning & Growth
3. Chose the applicable perspective letter: F for Financial, C for Customer, IP for Internal Process and
L&G for Learning & Growth from the drop-down list by clicking on the grey box.
For 1. Instructions within various sections of the form are highlighted

Appraisee
2. Use the process tracker on Page 1 to keep record of various activities within a phase of the performance cycle
3. Sign on every box designated for you in the process tracker to keep a record of various activities within a phase of the Performance Cycle
4. Each section of the Performance & Development Plan is mandatory - to be filled at the appropriate time [As mentioned in the instructions alongwith the form sections]
5. Evaluate your own performance at the end of each quarter on the KRAs and on the Routine Responsibilities and Competencies at the end of the fourth quarter
6. Final scores [end of each quarter] and Overall Scores [End of the fourth quarter] do not have to be calculated by you.
They will get calculated automatically by the system. Hence it is advisable to fill the form online and not on a hard copy
For 1. Sign on every box designated for you in the process tracker on Page 1 after completing the appropriate step.
Appraiser
2. Provide feedback and comments on every performance parameter of your Appraisee. This must be recorded on the form itself.
3. Validate the Performance & Development Plan created by your Appraisee before finalizing it.
4. Use the rating scales provided at the bottom of the scoring sections to rate your Appraisee.
5. For more details, refer to the Parivartan Handbook or the Ready Reckoner.
6. Final scores [end of each quarter] and Overall Scores [End of the fourth quarter] do not have to be calculated by you. Hence, plese ensure that the forms are filled online
Support Divisions (For. e.g., CRG, Finance etc.) Non-Support Divisions [For e.g., HSM, SIP, BF)
Weightages KRAs Routine Responsibilities KRAs Routine Responsibilities
Top Management 50% 50% Top Management 70% 30%
Middle Management 40% 60% Middle Management 60% 40%
Junior Management 30% 70% Junior Management 50% 50%
Sample Form….. 4 Process Tracker
This section will help all the concerned parties [you, your Appraiser, your Reviewer and HR] to keep a track of the key
events of the Performance Management Process and track timely completion of the proposed activities. The HR department
is responsible for ensuring timely completion and will send reminders if the activities are not completed within time.
Process Tracker
P erfo rmance and Develo pment P lanning Target Setting Mo nthly Reviews Apprais als
Sign When Co mplete Sign When Co mplete Sign When Co mplete Sign When Co mplete
KRA Sectio n Filled (Apprais ee) Q1 (Apprais er & Apprais e e) Mo nths 1, 2 & 3(Apprais er & Apprais ee) Self Apprais al (Apprais ee) [Q1, Q2, Q3 & Q4]
Ro utine Res po ns ibilities Filled (Apprais ee) Q2 (Apprais er & Apprais ee) Mo nths 4, 5 & 6(Apprais er & Apprais ee) P erfo rmance Dis cus s io n (Apprais er) [Q1, Q2, Q3 & Q4]
Co mpetency Sectio n Filled (Apprais ee) Q3 (Apprais er & Apprais ee) Mo nths 7, 8 & 9(Apprais er & Apprais ee) Feedback (Apprais er) [Q1, Q2, Q3 & Q4]
P erfo rmance & Develo pment P lan Appro ved Q4 (Apprais er & Apprais ee) Mo nths 10, 11 & 12(Apprais er & Apprais ee) Final Sco re Calculated (Apprais er & Reviewer) [Q1, Q2, Q3 & Q4]
(Apprais er & Reviewer)
Overall Sco re Calculated (Apprais er & Reviewer) [Q4]
The Process Tracker has separate sections for the different phases of the Performance Management process, viz.,
Performance & Development Planning, Target Setting, Monthly Reviews and Quarterly Appraisals.
The concerned parties [as mentioned in the form] are required to sign in the space provided, after completion of the
proposed activity and the HR department will keep a track of the same.
Sample Form….. 5 KRA Section
Performance Planning
 KRAs and Action Plans for their accomplishment will be outlined.
 A maximum of 8 KRAs can be chosen for a Performance Cycle [These will be culled put from the Scorecard Database,
which will be sent to all the Appraisers by HR, by marking KRAs critical for a particular performance period as
“Essential”]
 The Appraiser needs to ensure that at least 1 KRA is chosen in each of the dimensions of the Balanced Scorecard, viz.,
Financial, Customer, Internal Process and Learning & Growth. The gray box in the first column is a drop down box
with the four dimensions represented as follows:
Financial - “F”; Customer - “C”; Internal Process - “IP” and Learning & Growth - “L&G”. You need to
select the appropriate dimension when filling the KRAs.
Target Setting & Monthly Reviews

 Targets will be set for each KRA, jointly by the Appraiser and the Appraisee for a particular quarter.
 For divisions where monthly reviews are required, there will be a discussion between the Appraiser and the Appraisee
on the achievement against the targets for the month, and if the business conditions so demand, mid-course target
corrections can be undertaken. The old targets for the quarter will be overwritten by the revised targets for the quarter
in the space provided.
KRAs [To be filled in by the Appraisee, Appraiser & Rater on a Quarterly Basis for Appraisals & Monthly Basis for Reviews] ISPAT
With the help of your Appraiser, pick out KRAs [Maximum 8] from your Department Scorecard
which you think are important for the current performance year.
Please refer to the "Choosing KRAs" section in the instruction sheet for appropriate selection of KRAs
* Targets changed during monthly reviews can be used to overwrite targets for the existing quarter
Click on the relevant box to give any rating between 1 and 5; based on the scale mentioned below
KRA Type KRAs Action Plans Targets Rating by Appraisee Rating by Appraiser
[Click on the gray box to choose applicable type]

F 1 Q1 3 2
Q2 2 1
Q3 4 3
Q4 1 1

Sample Form….. 5 KRA Section (contd.).
Quarterly Self Appraisals

 Before the discussion with the Appraiser, you will be required to rate your performance on each of the KRAs against
the targets identified for the quarter.
 Rating will be done on a 5 point scale, as mentioned below.
 To ensure filling of correct values, the options 1 to 5 have been built into the form itself, and will be available in the
drop-down list, once you click on the gray cell.
Quarterly Appraisals by the

Appraiser
 The Appraiser will also rate the individual on his/ her performance on each KRA for the quarter.
 The same 5 point rating scale will be used for assessment purposes.
 The Appraiser should ensure that he/ she has adequate proof, in terms of critical incidents/ behavioral examples/ data
to substantiate a particular rating.
KRAs [To be filled in by the Appraisee, Appraiser & Rater on a Quarterly Basis for Appraisals & Monthly Basis for Reviews] ISPAT
With the help of your Appraiser, pick out KRAs [Maximum 8] from your Department Scorecard
which you think are important for the current performance year.
Please refer to the "Choosing KRAs" section in the instruction sheet for appropriate selection of KRAs
* Targets changed during monthly reviews can be used to overwrite targets for the existing quarter
Click on the relevant box to give any rating between 1 and 5; based on the scale mentioned below
KRA Type KRAs Action Plans Targets Rating by Appraisee Rating by Appraiser
[Click on the gray box to choose applicable type]

F 1 Q1 3 2
Q2 2 1
Q3 4 3
Q4 1 1
Rating Scale
1: Significantly Below Expectations 2. Moderately Below Expectations 3. Meets Expectations 4. Moderately Above Expectations 5. Significantly Above
Expectations
83
Sample Form….. 6 Routine Responsibility Section
 4-5 Routine Responsibilities will be identified from the Job Description, which are an essential part of the job and are
performed on a daily basis, but do not feature in the KRA section.
 Action Plans for achievement of the same will be outlined
Appraisal [End of Q4]

By the Appraisee
 The Appraisee will rate himself/ herself on his/ her performance on each Routine Responsibility.
 The same 5 point rating scale will be used for assessment purposes.
By the Appraiser
 The Appraiser will also follow the above-mentioned process to rate the Appraisee’s performance on the Routine
Responsibilities.
Routine [To be filled in by the employee in consultation with the manager] ISPAT
Responsibilities
Based on your manager's and your understanding of your role, list down four/ five tasks that you perform on a daily basis.
You would be evaluated by your manager on your performance on these daily tasks using the five-point scale used earlier.
Routine Responsibilities Action Plans Self Appraisal Rating by Appraiser
1 3 4
Rating Scale
1: Significantly Below Expectations 2. Moderately Below Expectations 3. Meets Expectations 4. Moderately Above Expectations 5. Significantly Above
Expectations
84
Sample Form….. 7 Competency Section
 During the Performance Planning discussion, the Appraiser, in consultation with the Appraisee, will identify expected
proficiency levels required for successful performance of a particular job.
* Competencies will be picked from the “Competency Master” which will outline “Universal Competencies” [which are
applicable to everyone across the organization.
 During the performance planning discussion, the Appraiser, in consultation with the Appraisee, will outline a
maximum of 3 competencies as “Developmental”, which the Appraisee will need to develop during the course of the
year
Appraisal [End of Q4]
 During the year-end appraisal, the Appraiser will rate the Appraisee on the Competencies, based on the 5 point rating
scale mentioned below.
 These ratings will be used only for “Developmental purposes” and will not form a part of the “Overall Score” and will
thus not be linked to incentives or increments.
Competencies [To be filled in by the employee in consultation with the manager on an annual basis] ISPAT
Based on your manager's and your understanding of your role, list down expected proficiency levels
for the competencies from the competencies master and mark Competencies [Max 3] as
D which you feel need to be developed
Competencies Expected Proficiency Level Appraisee to mark as "D" [Max 3] Rating by Appraiser
Rating Scale
1: Learner 2. Development Area 3. Capable 4. Strength 5. Role Model
Sample Form….. 8 Development Plan - Competencies
 During the Performance Planning discussion, the Appraisee, in consultation with the Appraiser, will outline Action
Plans for the Competencies outlined as “Developmental”
Development Plan
[To be filled in by the Appraisee in consultation with the Appraiser on an annual basis] ISP AT
Training Needs Based on the competencies marked by the appraisee as "D", articulate an action plan to bridge competency gaps
Competencies Action Plan
9 Development Plan - Other Training Needs

 Over and above Developmental Competencies, the Appraisee will outline other areas of development [Technical /
Behavioral Competencies] and chart action plans for the same.
Training Needs Identify and enumerate other technical or behavioural skills which need to be acquired by the you
Other Development Areas Action Plan
Role of HR
To document and consolidate all training needs, divisionwise and departmentwise and chart out the training calendar for the year.
Sample Form….. 10 Development Plan - Career Aspirations
 During the Performance Planning discussion, the Appraiser, in consultation with the Appraisee, will capture “Career
Aspirations” of the Appraisee, if any, and provides his/ her assessment of the readiness/ potential of the Appraisee
based on the scale mentioned below.
Development Plan
[To be filled in by the appraiser in consultation with the appraisee on an annual basis] ISP AT
Career Aspirations Does the appraisee desire t move to a new position within the next 6-12 months? If yes, specify position(s)desired
and indicate your assessment of individual's readiness for the position
Position Readiness/ Position*
Scale
 High This individual can advance well above (one or two levels above) current position.
 Moderate This individual shows potential for taking on greater responsibility or moving to next
management/technical level over a period of 6-12 months
 Limited This individual can continue to contribute significantly in his/her current
position, but may have limited upward growth opportunities. A lateral move may be an appropriate growth
opportunity for this individual
 Key Resource This individual is a key resource in his/her current position. This vital
Role of HR
knowledge precludes movement at this time, but development opportunities should continue to be identified
To document and consolidate all career aspirations, divisionwise and departmentwise and ensuring proper use of the data when making career decisions
All
Hewitt© 2003, Too New
Rights Reserved This individual has been in his/her current position less than six months and is too new to evaluate 87
Sample Form….. 11 Evaluation Sheet
Job Position Data

 The Appraisee will fill his/ her Division-Type [1 for Support and 2 for Non Support] and also the Employee Level [Top
Management, Middle Management or Junior Management] from the drop down lists.
 These will determine the relative weightages for the KRAs and Routine Responsibilities, when calculating the Overall
Score
Annual ISP AT
Performance
Summary
Employee Level Division Type

Choose the Applicable level by clicking on the grey box. Choose the Applicable Type by clicking on the grey box.
Choose "Top Management" for "Division Heads & Above", "Middle Management" Choose 1 for "Support" and 2 for "Non Support"
for "Department Heads" and "Section Heads" and "Junior Management" for others
Junior Management 2
Computation of Final Scores [To be fed into the Variable Pay

Plan]
 The Appraisee and the Appraiser will rate the performance of the incumbent on each KRA for the quarter
 The system will calculate average of the KRA scores for a particular quarter, which will be the Final Score of the
Appraisee for the quarter.
 Generally, the rating given by the Appraiser is fed into the Variable Pay Plan per quarter by HR. However, if there is a
wide gap between the Appraiser and the Appraisee’s ratings, the reviewer may re-rate performance, and this will be
treated as final.
Performance Scores on KRAs By the Appraiser By the Appraisee By the Reviewer*
* To be filled separately
only in cases of disagreement
Average of individual KRA Scores Q1 2.666666667 4 3 0
Q2 1 2 3 0
Q3 3 4 3 0
Q4 2 2 3 0

Sample Form….. 11 Evaluation Sheet (Contd.).
Computation of Overall Performance Score [To be fed into the Fixed Pay
increments]
 Overall Score is a weighted average of the scores on KRAs and Routine Responsibilities for the Year
 The system will calculate average of the final scores on KRAs for each of the 4 quarters
 It will also compute average of the scores on Routine Responsibilities for the quarter
 These will be multiplied by the system with the respective section weightages [The weightages will be picked by the
system from the instruction sheet, based on the Appraisee’s Poisition Data
 Overall score will then be calculated by the system
 In cases of disagreements between the Appraiser and the Appraisee, the Reviewer will review and re-rate. This will
generate the “modified overall score”
 The system calculated overall score or the modified overall score, whichever is applicable, will be consolidated by HR
and will be used to determine fixed pay increments.
Overall Performance Score
Averageof KRA Scores for all the quarters 2.166666667 3 0
KRA Section Weightage [Instruction Sheet] 0.5
KRA Section Score 1.1 1.5 0
Average of Routine Responsibility Scores 4 3 3 0
Routine Responsibility Section Weightage [Instruction Sheet] 0.5
Routine Responsibility Section Score 2 1.5 0
Overall Score 3.1
Modified Overall Score [In cases of rater bias or disagreement between the Appraiser and Appraisee] 0

Sample Form….. 12 Attestations
By the Appraisee
 After the final appraisal, the Appraisee can raise his/ her disagreements with the process, if any, in this section
 However, he/ she has to cite clear reasons for the above
By the Appraiser
 In case disagreement is expressed by the Appraisee, the Appraiser will be required to give his/ her comments and
explain the causes for the same.
By the Reviewer
 In cases of disagreements, the Reviewer, after discussion with the Appraisee and the Appraiser, can direct for a re-
review
Attestations ISP A T
By the Appraisee Do you agree with the evaluation of your performance? If no, please state your reasons below.
By the Appraiser In case the employee has indicated disagreement in the above para, please explain the causes and add your comments.
By the Reviewer In case the employee has indicated disagreement in the above para, assess the need for a re-review.
To re-review or to make any changes in the evaluation, you will need to
have an open discussion with the employee and his manager.

Session 7:
Feedback and Coaching
ISPAT

Session 8:
Open House
ISPAT

Your Queries and Our Answers

PPT Infom Performance Appraizal Download Pms Process Ownertraining 6mayv1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PPT Infom Performance Appraizal Download Pms Process Ownertraining 6mayv1

Uploaded by

Copyright:

Available Formats

Overview of the new Performance

ISPAT Industries Limited

Date: 6th May, 2003

Discuss... What to measure in the new PMS - The what

Demonstrate... Performance Appraisal Process - The how

Define... Key Roles in the new PMS- The who

Familiarise... The Communication material - The tools

Internalise... The PMS Process - Lets Work an Example

Hewitt© 2003, All Rights Reserved 2

• Cell Phones in silent mode please

• Your contribution is key to the success of the workshop

• Sessions are meant to be interactive, and not presentation focused

• Your comments and views are welcome during sessions

• Only one speaker at a time please

• No criticism directed at individuals

Hewitt© 2003, All Rights Reserved 3

Your Responsibilities include

Focus Group Members

Hewitt© 2003, All Rights Reserved 4

Hewitt© 2003, All Rights Reserved 5

• It is the name of Ispat’s new Performance Management System

• It covers the executive cadre spanning grades E08 to E19

• Your appraisal for 2003-04 will be conducted as per Parivartan

PARIVARTAN stands for excellence, sharp growth through performance

Hewitt© 2003, All Rights Reserved 6

• Clear alignment of individual performance with Corporate, Division &

Drive vision and Address the

Meet key stakeholder

Top Management Perspective Appraiser Perspective Appraisee Perspective

Hewitt© 2003, All Rights Reserved 8

Hewitt© 2003, All Rights Reserved 9

Key Responsibility Routine

Hewitt© 2003, All Rights Reserved 10

Hewitt© 2003, All Rights Reserved 11

Balanced Scorecard - a recap

The Balanced Scorecard is a way of using financial and non-financial

Easy communication of strategy throughout the organisation

Assist in the close alignment and prioritisation of current and proposed

Assist in the definition of objectives and scope for key projects

Improved employee satisfaction through aligned reward and recognition

Hewitt© 2003, All Rights Reserved 14

Customer Perspective Financial Perspective

Internal Perspective Learning & Growth Perspective

Hewitt© 2003, All Rights Reserved 15

Customer Strategy Value for money

Process Strategy Operational Excellence

Applying new technology Enhance productivity Reduce Transaction costs

Learning & Growth Strategy Build capabilities for the future

Hewitt© 2003, All Rights Reserved 16

Unit Sector Corporate Department & Function

Financial Customer Financial Customer Financial Customer

Process Capability Process Capability Process Capability

Departmental Measures & Targets

Product Groups Materials Planning Support Services Other Services

Individual & Team Measures

Hewitt© 2003, All Rights Reserved 17

Through the above exercise, we have developed a database of Corporate,

A key element of Parivartan, focusing on building individual capability

– No marks assigned - used only for Development

– 11 Competencies have been identified and defined

– 4 Levels of Proficiency and behavioral indicators defined for each

Hewitt© 2003, All Rights Reserved 19

Development tools include