Performance Management System

Performance Orientation at Ispat: Principles

• Clearly defined steps in
Employee Employee the process with clearly
performance has articulated roles for
aligned to ownership of
each player,
the business his/her
minimizing scope for
needs performance
subjectivity
ISPAT
• Ownership of PMS by
Performanc
e line, HRD as a
Managemen facilitator only
t System • Visible and transparent
Clear linkage Objective linkage with rewards
of criteria for and other HR systems
increments & setting
promotions expectations • Simplicity and ease of
to & measuring administration through
performance performance the use of technology

Formal process Incentives for Clear linkage to Support Ownership

departments career & rewards from HR by you

Ensuring Implementation
 Defining performance
Performance

Performance at
Ispat will be
defined in terms of
Task Factors ,
measured in
quantitative terms

Key terms
• Task factors are the key performance parameters for a
role. These are defined as “Critical outcomes towards
which effort is directed to support achievement of
desired business results.”
• Measurement Criteria is the expected performance on
each Task Factor in quantifiable terms
 The Performance Management System: Key players

01 Appraisee
Every employee whose • It’s about your
performance will be Performance
assessed. All employees in • You are the key driver
levels E-08 and above of the process

Reporting
02 Officer (RO)
Every individual who
• Will help you manage
assesses the performance
your performance &
of one or more people that
provide continuous
report to him/her. He is feedback and coaching
your boss.

03 Reviewer Your Reporting officer’s

reporting officer- is • Will ensure Objectivity,
responsible for reviewing Transparency &
the entire performance Consistency
process

04 HR • The PMS process

owner
This is the H.R - PMS • Manage performance
group data
 System implementation: Timelines

Business Planning
[Corporate & Division]
Periodic & Mid March – End March
Ongoing
development
Performance Planning
activities
[Individual]
2nd Week of April

Q4 Appraisal, Q1Target Setting

Review & Feedback 2nd Week of April
1st Week of April Q1 Appraisal, Review
Q4 Target Setting & Feedback
2nd Week of Jan 1st Week of July

Q3 Appraisal, Q2 Target Setting

Review & Feedback 2nd Week of July
1st Week of Jan Q2 Appraisal, Review
Q3 Target Setting & Feedback
2nd Week of Oct 1st Week of Oct
 The Performance Management System:
Performance planning
Why have performance planning

• Clarify performance expectations

• Steer performance towards Ispat’s overall objectives

• Encourage discussion between managers and

subordinates about performance
• Give managers and subordinates something to measure
against at the end of the year (the performance plan)
• Build common agreement between the manager and the
subordinate about performance expectations
• Establish a basis for coaching and feedback
discussions
Performance Planning
Performance
Development
Planning
Planning

Task Factors Other

Competencies Development
[Quantitative] Areas

Will be used for assessment of Will be used for developmental purposes

performance only, and will thus, not form a part of the
final rating

Key terms
• Competencies are skills and abilities described in
behavioral terms that are coachable, observable,
measurable, and critical to successful individual or
organization performance
 The Performance Management System: getting
started-Page 1

Form

• screen shot of personal detail sheet

• You need to enter your Employee Number only, the other information will be
populated automatically
The Performance Management System: Performance
planning-Page 2
The Performance Management System: Quarter
Appraisal-Page 3
 The new Performance Management
System: feedback-Page 4
Form Flow diagram

• Feedback form RO enters his

feedback after
discussion with
the appraisee

RO forwards his
feedback to
reviewer

Reviewer
validates

Appraisee
accesses
feedback
 Annual performance rating

Details

• The annual rating is generated automatically by the system

• It is the average of the ratings of all the quarters
• It is this rating that is linked to the other HR systems - increase in compensation,
career movement ( depending on the opportunities available in the organization

Compensation • Compensation depends on Market

• Linked to Overall
( Cost to alignment, Specialty of job, extent of
Rating
company ) Experience, and Overall performance

• Continuous demonstration of good

• Linked to Overall overall performance for a defined
Rating and period of time, fitment into role based
Promotion
Career on skills and abilities, consideration of
aspirations career aspirations and opportunities
available in the organization
The Performance Management System:
Developmental Plan- Page 5
Form Flow diagram

RO & appraisee
jointly identify
appraisee
development
needs: Existing
role & Career
growth

Decide on the
training inputs
necessary

Freeze
timeframe

Reviewer
validates
 The new Performance Management System:
Appraiser and Reviewer rating
Flow diagram

Self rating
by
appraisee

RO’s enters
rating post
discussion
with the
Performance Category
appraisee
Exceptional Contributor

Difference Significant Contributor

Final rating
Reviewer’s Contributor
on each Task Overall Score
rating Factor
NO Partial Contributor
>2
Moderation
committee Non-Performer
YES rating
Composition
The Performance Management System:
feedback
Role of the Reporting Officer
Flow diagram

• RO should read the Performance appraisal form &

identify examples of performance & non-
Preparing for feedback performance
• RO, to independently identify areas for discussion &
chart possible developmental paths

• Enough time should be given to Appraisee prepare

for the session
Decide time & venue • Venue should not be the work area of either
appraisee or RO - The discussion should preferably
be held off-site

• Begin with positive feedback

Deliver feedback • Listen to appraisee’s point of view

• Create a developmental & amicable atmosphere

• Summarize the discussion

• List out 3-4 developmental areas, and corresponding
Summarize feedback activities
• Set a status review schedule
 The Performance Management System:
feedback tips for Reporting Officers

Tips for giving feedback

Why feedback
Informal and formal opportunities for Reporting Officers to
connect or “touch base” with you to:
•Provide support and direction
•Keep performance on track

Good feedback Coaching and feedback can include:

•Positive feedback and recognition
•Corrective feedback
•Identifying obstacles to performance
•Sharing information

Wrong feedback
• Personal insults
• Conflicting information or too much, all at once
• Unclear messages causing the other person to guess

Contd --
 The Performance Management System:
feedback-tips for Reporting Officers

Tips for giving feedback

Giving positive • Cite specific accomplishments

feedback • Show appreciation
• Ask employees how they can leverage performance in a particular
area to enhance their overall performance
• Encourage employees to continue high level of performance

Giving negative • Describe the observed behavior and provide specific examples
feedback • Focus on behavior that can be changed, not the person
• Define the impact on you and other members
• Get a reaction from the employee
• Share your expectations for future behavior
• Together explore options for solving the problem
• Describe consequences of improved/not improved performance
• Agree on a time table to review progress
• Offer support to help or remove obstacles
• Express confidence in the employee’s ability to improve
Thank You