2 Performance.. PERFORMANCE IS KEY TO A COMPANYS SUCCESS. IN A COMPETITIVE ENVIRONMENT,...

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Performance……..PERFORMANCE IS KEY TO A COMPANY’S SUCCESS. IN A COMPETITIVEENVIRONMENT, ORGANISATIONSTHAT PERFORM, HAVE A COMPETITIVEADVANTAGE.

DEVELOPING A PERFORMANCE CULTURE IS THE KEY TO BECOMING SUCCESSFUL & EFFECTIVE.

5 May 2023HEC BUILDS MACHINES THAT BUILD THE NATION

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Globalisation Princess Diana’s

death a british princess with her egyptian boyfriend travelling in a german car driven by a spanish chauffer chased by italian paparazzi riding japanese motorcycles crashes in a french tunnel treated by a portuguese doctor with brazilian medicines.

I received this information on my finnish branded cellphone manufactured in taiwan, smuggled by a pakistani through nepal.


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Impact on HR

Competition for scarce skills Specialists Managers Those who can foresee future / handle

risks Salaries rise Competition erodes ability to pay all Ability to upscale / downscale costs


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Impact on HR

Can organisations afford to remain with “comfortable” ways of the past?

Criticality of Performance Leadership, Strategic thinking

Greater need to differentiate Performance Potential


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PMS

Strategic Plans

Training

PLR & Comp Review

Promotion

Some exits occur

Career Planning

Performance Planning

Workshop

Development

Job Rotation, Enlargement

Potential Assessment

Budget

* Economic, Business, Political, Social, Legal, International agreements, etc.

Performance Management Process


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PMS

Strategic Plans

Training

PLR & Comp Review

Promotion

Some exits occur

Career Planning


Workshop

RecruitmentManpower Plan

Induction

Engagement

Development

Job Rotation, Enlargement

Company Performance

Organisation structure/plan

Employee Performance

Potential Assessment

Role & Value of a Position

Feedback of Company performance on Company’s plans

Budget

* Economic, Business, Political, Social, Legal, International agreements, etc.

The Complete HR Process


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Differentiation is essentialDifferentiation is essential


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IF YOU DO NOT DIFFERENTIATE, THE BEST WILL LEAVE, IF YOU DO THE WORST MAY LEAVE


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Relative Rating

Differentiation is always possibleDifferentiation is always possible

5 May 2023HEC BUILDS MACHINES THAT BUILD

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PhilosophyPhilosophy

Differentiation is a driver for Performance

Relative Rating is the adopted method to achieve differentiation

Rewards directly related to Rating

Development needs are of equal importance

Two way Feedback will enhance Performance & Development

Do We Value MeritocracyDo We Value Meritocracy


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Distribution PercentageDistribution Percentage11 22 33 44 55 66 77 88

E1 to E3E1 to E3 5%5% 10%10% 10%10% 20%20% 25%25% 15%15% 10%10% 5%5%E4 to E5E4 to E5 NANA 10%10% 15%15% 20%20% 25%25% 20%20% 15%15% 5%5%

E6E6 NANA NANA 10%10% 20%20% 25%25% 20%20% 15%15% 10%10%

E7E7 NANA NANA NANA 10%10% 15%15% 25%25% 30 %30 % 20%20%


The Look of the Bell Curve

5 May 2023 14HEC BUILDS MACHINES THAT BUILD THE NATION

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ISSUES

Why do we need to Hav Alignment of individual objectives

with company objectives Setting of timely objectives Mid term review to be made

effective with focus on development Feedback process to be strengthened

and improved


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ISSUE- Expectation Management

Balance Subordinate expectations Communicate early and often Be Transparent


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PMS Objectives

Managing expectations of both Superiors and Subordinates

Tracking promises (objectives set) made at the beginning of the year

Facilitating meaningful dialogue between Superior and Subordinate

Establishing clear linkage between Rewards & Performance ratings

Identifying Developmental needs of Appraisee


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Appraisal FEARS ……..


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Appraisee’s fears: Will I be fairly judged? Will my Self Esteem be

affected? Can I afford to be open?

Appraiser’s fears: If I am honest, will I hurt the If I am honest, will I hurt the

employee?employee? How do I manage expectations?How do I manage expectations? Personal InsecurityPersonal Insecurity

Appraisal FEARS ……..


COGS IN THE WHEEL

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Proposed SystemProposed System


Mid Year Review

Moderation by Macro View Group

Appraisal Process

Two-way Feedback to Subordinate


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Understanding Objective Setting

Improve communication between IS and subordinateHave two way dialogue


Performance Planning Workshop following the finalization of

Company Annual Budget

IS and appraisee decide on appraisee’s objectives

PODP form to be jointly filled up during Objective Setting Exercise.

Performance PlanningObjective Setting and PODP

Objectives should be specific and

measurable. Min.3 and Max. 5 objectives

Should be in line with the objectives derived at PPW

Cascading Business Objectives using appropriate methodology

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Mid Year Review

IS conducts a Development discussion meeting on tasks, resources & way forward.

Feedback taken from appraisee

Focus on Development of Employee

Now its your turn to give me feedback…….


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Role Clarity

Recognition

Resources

Learning & Growth Opportunities

Departmental Support / Team work

Other Facilitating / Hindering Factors

Job content

Actively seek feedback from Employee

5 May 2023HEC BUILDS MACHINES THAT BUILD

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26Making the employee comfortable


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Appraisal ProcessAppraisal Process

Appraisee records achievements and sends to IS

IS appraises performance and gives a relative rating on a scale

of 1-8Based on volume of

work , quality of output, speed & internal

customer orientation

IS routes form with score and comments to NS

Comments may cover other significant

achievements & context &

situation in which results were

achieved 5 May 2023HEC BUILDS MACHINES THAT BUILD THE NATION

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NS adds comments & routes Form to DH

DH arrives at normalized rating and gives his comments

Form is sent to respective HR

NS should also remark

on comments of IS

DH discusses with IS in

case difference in rating is 2 or more

Form is collated by HR and sent to MVG

For revised objectives, both the

forms to be sent to MVG


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MVG reviews and moderates rating in line with distributed

percentages along with comments

Form is sent to HR

HR routes Form back to IS through reporting route

MVG discusses with DH if difference in rating is 2 or more,

DH conveys to IS5 May 2023HEC BUILDS MACHINES THAT BUILD THE NATION

30 3030

Provide feedback on Annual Review

Performance review incl. achievement of targets / change of objectives YNeeds for training, job rotation & development YStretch element in objectives YCritical incidents yFacilitating / Hindering factors yStrengths & weaknesses incl. competencies yLeadership competencies & Team behaviours yCareer path/growth yBeing open for feedback from the employee yImmediate Superior Rating NoMVG Rating Category Y

Aspects of Feedback to Employee


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E4 to E5

E6 / E7

Func Dir

Employee

MVG Members

Head of MVG

Composition of MVG

Members shall be within 2-3 reporting levels of the employees appraised.Objectives: Push decision-making down.

Line of sight.

E1 to E3

Sr Mgrs(E5)

Deptt Head(E6)

Employee

MVG Members

Head of MVG

E6 to E7

Func Dirs

CMD


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Constitution of MVGConstitution of MVG

- Constitution of MVG - MVG should have at least 30 employees in a band for moderation purpose - Smaller departments to be clubbed to form one MVG

In Apri

l


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Feedback

IS receives Form and discusses MVG rating & category with NS/DH

IS gives feedback to employee & communicates

“Performance Category”

Rating Performance Category8 Outstanding Performer

7 , 6 Top Performer5 , 4 , 3 Vital Contributor

2 , 1 Below Average

IS explains the rationale of rating & how to improve ratings for the

next year


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So, what are the issues in

the PMS

Process Related Measures Performance Planning Workshops Mid Year Review Relative rating(1-8) by Immediate Superior MVG composition MVG rating category communication People Development

Policy Related Measures Coverage Percentage Distribution

Measures for improving System Adherence Issue of Reward Letters Report to Functional DirectorsSystem Monitoring Training


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Multiple Reporting

Appraisee reports functionally &

administratively to different people

Appraisee is a member of a Task Force / Project, while being based in a

Department

Responsibility of Performance Review will be of the superior involved in Objective Setting

Responsibility of Performance Review will be of superior who sets the Objective

Both Superiors are involved in the entire PA exercise

Both Functional and Taskforce / Project Head are

involved in PA exercise


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New Employees and Transferees

New employee will be covered if they have completed 90 or more days of service before 31st March

Transferees will go through the PA exercises in Departments where they have worked for more than 90 days.

Present DH will decide the final ratings after taking inputs from previous IS/NS and taking the PA form received from the previous and the new department in to consideration


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In a class of eighth std students, a teacher asked , “What’s the difference between ‘satya’ (truth) and ‘bhram’ (illusion)?”

After a longish pause, when no one answered, a backbencher, who had never ever answered any question in class had this tosay:-

What you told us is “satya”, but that you think that everythingthat you said has been understood by us is “bhram”.


2 Performance.. PERFORMANCE IS KEY TO A COMPANYS SUCCESS. IN A COMPETITIVE ENVIRONMENT,...

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