A Comprehensive Evaluation of the Performance Management Practices of Nilavo Technologies Limited

Institute of Business Administration2015A Comprehensive Evaluation of the Performance Management Practices of Nilavo Technologies Limited

A Comprehensive Evaluation of the Performance Management Practices of Nilavo Technologies Limited

Prepared For: Homayara Latifa Ahmed Assistant Professor IBA, University of Dhaka

Prepared By: Saleh Ahmed ZR-46Zareen Tasnim RH-83Arefin Rezwan ZR-

21 June 2015Institute of Business AdministrationUniversity of DhakaExecutive summary:

Theoretically, performance management is the process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organization. It includes activities which ensure that goals are consistently being met in an effective and efficient manner.

But in real life, in most cases, performance management is synonymous to performance appraisal which consists of a checklist of criteria to be met based on which employees are fired or promoted. Bangladeshi companies, too, apply the aforementioned method of performance appraisal to evaluate employee performance rather than actually managing the performance of its employees. Moreover, in many organizations, especially start-ups, creative agencies and small firms, there is no definite method of performance management.

Nilavo Technologies Ltd. is a small local IT firm which develops software and exports them to clients abroad. Being a highly technical and flexible firm, with a small workforce, it has no structured, observable or defined method of evaluating performance of its employees. As such, we have looked into the organization and its industry, and importantly into its employees and the context of their jobs. We have also looked into the current performance management processes practiced in the company. Based on all these factors, we have identified some challenges of the company and aimed to re-structure and re-define its performance management system to alleviate these challenges. Moreover, we have aimed to align the organizational goals and employee goals to help the organization realize its vision of sustainable growth.

Table of Contents1Organizational Background51.1Organogram and personnel:51.1.1Technical:61.1.2Non-technical:62Business model72.1Project duration:72.2Workflow analysis:72.3Project specifications:82.3.1Client specifications:82.3.2Work plan:92.3.3Work assignment:92.3.4Implementation and monitoring:93Current performance management practices113.1Definition of job:113.2Definition of performance:113.3Standards for the parameters:113.4Performance management system:123.4.1Continuous monitoring:123.4.2Performance review:123.5Career planning:133.6Other benefits:134Challenges of the organization134.1External challenges:144.2Internal challenges:145Performance management system155.1Performance planning155.1.1Goal alignment and line of sight:165.1.2Work distribution and employee allocation:165.1.3Strategic map:165.2Performance analysis:175.2.1Key performance areas (KPAs):185.3Format of performance review:205.4Performance development215.5Performance audit21

Organizational BackgroundNilavo Technologies Limited is a local firm which operates in the IT sector of Bangladesh and specializes in software development. Established in 2006, it is a private limited company. It is an export firm and mainly serves a single client company based in USA. It does not cater to any local client in the country and so its whole revenue is generated from export. It is located in Banani, Dhaka.The vision of the company is achieving sustainable growth. And its mission is to maximize client satisfaction by providing superior quality work and staying true to its commitments. Organogram and personnel: The personnel in the company can be divided in two categories namely technical and non-technical. These categories are explained further below:Technical: This category constitutes the core employees of the company, as they are the skilled engineers who participate in the operations to earn revenue. It consists of:

a) Full-time engineers: graduates with at least a Bachelors degree, and their hierarchy is mentioned below: b) Part-time interns: generally 3rd year university students

Non-technical: This category consists of the following people:

a) Administration (including finance and HR): the personnel in this section are:

b) Support staff: consisting of clerks, transport and cleanersThe total number of employees in the company is 35, among which 80% belong to the technical category. Business modelThe company caters to a single client and develops software products for that client. They mainly focus on developing new upgraded versions of the original products. Thus the company receives projects from the same client on a regular basis. The client also demands completely new product development projects, but on a lower scale.The company receives contract for each project from the client and the client is billed based on an engineer/month (per engineer per month) rate.Project duration: Each project is different and consists of different work specifications. Thus the time-frame of the projects can vary from few weeks to few months and the work cycle varies accordingly. The average project (long-term) is 6 months.Workflow analysis:The Chief Technical Officer (CTO) is in charge of operations. He looks after each project contract, defines the parameters of work and monitors the whole system. The general workflow process for a project, both long and short-term, is given below: The CTO divides the project into different major tasks and stages. A number of tasks have to be completed within a particular stage, within a particular deadline. CTO assigns major tasks to Project Manager and Project Leads.

They break the tasks down to smaller component tasks and assign to other engineers as required. Here, the criteria on which job assignment of each engineer is based are: a) capability and specialized skills for the particular task b) previous experience in similar taskc) previous performance of similar task

Each component task has a particular deadline. The completion of each component task, within the designated deadline, is known as milestone. Multiple teams of engineers are formed based on the component tasks, and each team performs only the specific component tasks assigned to them.

Deadlines have to be met strictly and stringently as all the smaller work units (tasks and stages) are interconnected and delay in one segment will have a drastic effect on other segments.

Project Leads monitor the different teams and they report to the Project Manager, who in turn reports to the CTO.

Project specifications:Each project starts with receiving an order from client and ends with gaining approval of the product by the client. Thus even after delivery of the product, the firm has to wait for client trial and feedback. Modifications, if any necessary, based on client feedback are executed and finally the particular project is completed.All the employees generally work as a big single team for each project, with smaller sub-teams based on tasks of the project. The stages of a typical project are: Requirement gathering from clients in the form of client specifications Work plan as per client specifications Work assignment Implementation and monitoring K2Review Delivery and maintenance

These stages along with their associated components are described below:Client specifications: Since the firm deals with technical product, detailed and highly specific requirements are given by the client. This is known as client specifications and the final product has to meet each and every criterion mentioned in the client specifications. It also includes a deadline given by the client within which the product has to be delivered.Work plan: The client specifications serve as the framework of the whole project. Based on it, a work plan for the whole project is prepared by the CTO and Project Manager in the very beginning. This work plan is followed throughout the whole span of the project and covers all the tasks required to complete the project. The work plan includes: Breakdown of the entire project into smaller task modules Specific requirements of each module including technology to be used Order in which the modules will be carried out Deadline for each module Identification of the unit tasks for each module Details of each unit task in the form of written brief Deadline for each task Distribution of modules and tasks among the engineers

Work assignment: Each module is generally assigned to a single individual to maximum 3 people. The assignment of tasks among the engineers (senior, software and junior) depends on the following criteria: Difficulty of the task Importance of the task Specialized skill of individual engineers Experience of engineers in similar task Deadline within which the task has to be completed Development or QA(quality assurance) mentalityTasks are primarily assigned based on the nature of work and how well it matches with the specialized skill of an engineer. Besides, an engineer who has done the same type of work is preferred for that particular work.

The tasks which are very difficult, crucial and/or have to be completed within a very short time are assigned to the senior engineers. QA mentality can be described as the dedication and perseverance to check and re-check a finished task unit or module repeatedly to find errors or loopholes. In contrast, development mentality is the mentality to finish a work as efficiently and quickly as possible to meet the requirements. Quality assurance, the second phase of a task module, entails more critical work and requires engineers who possess QA mentality. Thus the tasks under quality assurance stage are assigned to a few senior engineers only.Implementation and monitoring:From the technical point of view, each module has two major aspects based on the type of work. These two aspects entail distinctive and different group of tasks, and thus are carried out in two separate phases, one after the completion of other. These phases are:Phase 1: Software development Phase 2: Quality assurance (QA)These two phases are described below:Phase 1: Software developmentThe firms projects can be divided into two categories. These are: Adding new features to software programs Bug or error fixing of software programsThe software development phase varies according to these two categories. This phase mainly consists of developing the programming codes for various aspects of the product. Engineers are provided a detailed written list of the tasks and requirements and they develop the codes accordingly. Once they finish developing the codes for that particular module, they submit the codes and the QA phase begins.Phase 2: Quality assurance QA entails checking the developed software to ensure that it meets client expectations and quality standards of the firm, industry and client. QA consists of the following segments, in this particular order: Matching developed software with client specifications Ensuring functionality and quality of the softwareTest cases are developed in this phase to check the functionality and quality. Test cases are programs and codes that determine whether the developed software performs properly in different case scenarios relevant to the product usage. The test cases have only two options-pass and fail. If the software operates properly, it passes. If any glitch is present in the software, it fails in the test case and is sent back to the development phase for correcting that problem.In this way, numerous test cases are developed and implemented. And a particular module is tested, sent back to the development phase for modification and tested again in QA. This cycle is repeated again and again till the module passes all the test cases. The test cases are first carried out manually and then automated to increase efficiency and reduce scope of error.After each unit module is tested and receives QA clearance, regression testing is done. Regression testing checks if each unit module functions properly with respect to other modules when combined in a single product. Regression testing also involves test cases and other measures. After rigorous regression testing, the final product, including all the modules incorporated together, receives QA clearance.

Monitoring:The Project Manager leads, coordinates and monitors throughout the whole project. The two Lead Engineers are responsible for the two phases namely software development and quality assurance respectively. These three positions are constant for every project and the same three people carry out these responsibilities respectively.The Project Manager and the two lead engineers report to and consult the CTO. Throughout any project, review sessions are held at regular intervals to discuss the progress and problems of the work completed till then. The CTO, Project Manager and Lead Engineers sit with teams of each module in these review sessions. The frequency of these review sessions depend on the difficulty, novelty, and urgency of issues of the task modules. Review:Once the final product receives QA clearance, it is submitted. After submission, team distribution of the product occurs. In this stage, the product is used by the firms engineers for a few days to see if it works correctly. If it functions properly in the team distribution, it is given to the client for feedback.After receiving client feedback and making necessary alterations, if asked by the client, a Beta or test release of the product is done. Here, the product is used by some real-time, live users. If the results of this Beta release are positive, the product is considered ready to be delivered to the client. Delivery and maintenance:Final delivery is made to the client and all maintenance services are provided and managed by the firm. The payment is received after delivery. Current performance management practices

Definition of job:Here, we look at the job of the core employee, i.e. an engineer (senior, software, junior) from both software development and quality assurance categories. The job consists of various tasks, which vary according to projects. As mentioned before, the Thus there is no absolute job specification. Rather, it is relative and differs according to the nature of each individual project, the tasks each project entails, and the individual employee.Definition of performance:There is no absolute definition for performance, as the job varies according to each engineer and each project. Rather, performance definition and standard is based on each project and the task requirements. Each task has a target delivery quality and date. Each engineer is expected to meet or exceed the target quality and date and this is known as performance. Standards for the parameters:There is no specific absolute standard for performance as the tasks differ for each project. Rather comparative standards are taken into consideration while measuring performance. There are no rating scales and the criteria are mostly qualitative and subjective. These comparative standards are based on: Minimum requirements as per client specifications Previous performance of similar work Performance and estimates of senior engineers Performance of peersPerformance management system: The performance management system in the company consists of two parts which are: Continuous monitoring Performance reviewThe method and stakeholders of each are given below:Continuous monitoring:The performance of each engineer is monitored at a continuous basis during the project. Anytime during the project, if the performance of an engineer is not upto the mark and lagging behind, then the engineer is informed, given feedback and provided in-house training if necessary. The standard of performance is based on benchmarking. This is done by: absolute benchmarking: performance measured in terms of required deadline and quality, and previous benchmarks in similar task

relative benchmarking: performance measured in terms of the performance of other engineersPerformance review:The company has its own performance review system. It is subjective and no rating scale is used. It is conducted twice a year, and evaluated by the CTO.The semi-annual performance review consists of the following parts:Self review:Each engineer completes a form for self-review. The form is confidential and is evaluated by only the CTO and Project Manager. It consist subjective questions which each engineer has to answer. The questions are like:What, according to himself, has he achieved during the past 6 months?Which jobs has he performed well?Which tasks has he performed unsatisfactorily?What are his plans for the next 6 months?

Review by Project Leads The Project Lead talks to each engineer individually to discuss his performance for the period. His achievements, problems, concerns regarding both his and his team-mates work, other opinion he may have etc are discussed. Informal peer review is also included in this section. Based on these individual discussions, both Project Leads give their opinions to the Project Manager about the engineers. The Project Leads discuss the each engineers task performance and also behavior in terms of team.Review by Project ManagerThe Project Manager gives his opinion about each engineer and major concerns in a discussion with the CTO. In this discussion, the self-review forms are also evaluated and discussed.Review by CTO The ultimate decision is taken by the CTO based on all the above discussions. The CTO himself speaks to an engineer in case of a critical or controversial issue. System of feedback: The company has a friendly and open culture. Thus the system of feedback of employees are encouraged, and taken into account. The feedback system is done through discussion with the CTO or Chairman, and it can take place anytime during the work cycle.Reason for performance review:Performance review is conducted to formally ensure all employees are performing at an acceptable level. It is also used as a means to reward employees who are exceeding expectations so that there is career growth of the employees.Results of performance review:Title, salary, performance bonus, etc. are set based on the review. The bonus is monetary and annual.

Career planning:Engineers join as Trainee Software Engineer and then progress to Junior Software Engineer, Software Engineer, Senior Software Engineer, Project Lead, Project Manager, and so on. Pace of career progress depends on performance and capability. But this pace of progress is quite slow. Moreover, the number of top positions is only 3(Project Manager and 2 Project Leads) and are currently occupied. Thus there is a risk of career plateau.Other benefits: Provident fund, 50% from salary of employee and 50% provided by the company Leave Fare Assistance Medical insurance Transportation Allowances for internet and phone Lunch allowance Referral bonus (50% on appointment of candidate and 50% after his 6 month completion) Longevity bonus (bonus given due to staying with the company for a particular period) Festival bonus Holiday readjustment for overtime Recreation center and in-house tournaments: table tennis, carrom, treadmill

Challenges of the organization

The challenges of the organization can be divided into two groups, namely external environmental and industrial challenges and internal organizational and interpersonal challenges. They are described below: External challenges:Infrastructural: Since continuous internet connectivity is required for completing the tasks, electricity power shortage and disrupted or slow internet connectivity reduces efficiency.Intense competition: Since the industry is highly competitive, migration to other companies and job switching are quite common. Thus employee retention is somewhat low for the industry. As a result, not only financial but non-financial benefits like securing good working environment, holiday facilities etc are required to retain employees. Bureaucratic system: Income tax procedures, payment and billing of electricity and internet, expansion of electric power supply etc are time consuming due to the bureaucratic system of the country. Thus expansion of facilities cannot be done easily. Internal challenges: Underperformance: Since each project is team based, thus underperformance of one engineer affects the overall team performance and output.Replacement difficulty: Since the work is specialized and technical work, it is difficult to find proper replacement if any engineer leaves. More importantly, since the work is team based and it is essential for a new recruit to gel in with the team, the replacement procedure becomes more difficult.Recruitment process and training: The recruitment process is quite lengthy as each applicant is judged both on individual and team performance. Moreover, a new recruit has to be trained for the specific tasks required for the projects. Moreover, a new recruit does not have to sign any bond of minimum service time to the company. Thus the recruitment and training process is quite costly and becomes a sunk cost if a recruit leaves.Team work: Since the projects have to be completed by all the engineers working as a single team and the tasks are inter-related, good team rapport and team spirit is essential. Non-cooperative attitude of a single employee may disrupt the whole process. Task creativity and efficiency: Since the same type of work is usually given to the same engineers, specialization of work occurs. Although this increases efficiency, but it also has a downside. Any other employee may be better suited to the task and may complete the task more effectively and efficiently. Again, this also limits the creativity of the employees and they cannot expand their work portfolio.Dependence on senior employees: Since the higher positions of the employees are based on seniority along with competency, the company is highly dependent on these 2-3 engineers. Besides, due to more long-time connections with the management, the opinions of the senior employees are given more importance. This can have a major impact in the performance review system as it is the process is subjective.Ineffective peer review: Since it is a team-based workplace, proper peer reviews are required to identify the role of individuals in any disruption in the team performance. Since, the number of employees is quite low and everyone is familiar with everyone, the employees are reluctant to notify the senior employees of any negatives about their peers. This may result in problems remaining unsolved.Lack of specific standards and criteria: As there are no specific job or performance definitions, the evaluation of performance is highly subjective. For example, what constitutes good performance or very good performance has no definite standards. This has an impact on performance review and employee satisfaction as bonuses and promotion are given on the basis of performance comparability of different employees. Since the judging criteria are not visible to the employees, they may not agree with the results of performance review.Analyzing the challenges faced by the company, we identify the main problems, in terms of performance management and thus the overall organization to be the following: Lack of clarity in defining, measuring and comparing individual performance Lack of clarity in defining, measuring and comparing behavioral competencies for team performance Performance management system

PERFORMANCE MANAGEMENT SYSTEMThe performance management system can be divided into 5 phases as shown below:

PERFORMANCE ANALYSISPERFORMANCE PLANNINGPERFORMANCE MANAGEMENT AUDITPERFORMANCE APPRAISALPERFORMANCE DEVELOPMENT

Here, we take the performance of the core employees, engineers (senior, software, junior) from both software development and quality assurance categories under consideration. Each of these phases for managing performance of these core engineers are discussed below:Performance planningPerformance planning is the first step in the performance management process. It refers to setting expectations and objectives for the groups and individuals to channelize their efforts towards achieving organizational goals. The various components falling under this phase are given below:Goal alignment and line of sight:The organizations vision is sustainable growth. But the company is dependent on only client at the moment for its orders. Thus, the company needs to look for more clients for being sustainable. On the other hand, since the employees are main resources in the company, growth in the employees capabilities would result in growth of the company in terms of earning revenue. But since specialization occurs, and limited number of projects is taken, employee skill base remains limited. And this reduces productivity of the employees and thus, productivity of the company. This in turn hampers growth of the company. Thus employee skill growth should be a goal of the company and this would be in alignment with the individual employee goal.On the other hand, the organizations mission is to maximize client satisfaction by providing superior quality work and staying true to its commitments. And this is the goal of every project the company undertakes. To achieve this, the goal of each employee should be set at producing excellent quality work.Thus the employee goals would be excelling in quality and growth of capabilities.Work distribution and employee allocation:As this is a project based organization, a detailed work distribution is done for each phase of each project for each employee. The method of work allocation and planning already applied in the organization, as mentioned above, is to be used for this purpose.Strategic map:Balanced scorecard is the strategy which addresses and integrates the core issues prevailing in the organization, and the goals the organization wants to achieve. Based on the four perspectives of the balanced scorecard, the strategic map for the company is formulated accordingly:

INCREASE REVENUE PORTFOLIOINCREASE REVENUEIMPROVE COMMUNICATION AND STANDARS FINANCIAL PERSPECTIVE:

INCREASE CUSTOMER AWARENESSINCREASE CUSTOMER SATISFACTION

INCREASE EFFICIENCYCUSTOMER PERSPECTIVE:

INTERNAL PERSPECTIVE:

LEARNING AND GROWTH PERSPECTIVE:

Lead and lag indicators:a) Financial perspective:i) Increase revenue Lag: amount of revenue generatedLead: increase in number of clients and orders, better profit marginii) Increase revenue portfolioLag: revenue growthLead: increase in number of clients and ordersb) Customer perspective:i) Increase customer satisfaction Lag: customer satisfaction scoreLead: reduction in delivery time of project ii) Increase customer awarenessLag: number of customer callsLead: promotion through internetc) Internal process perspective:Increase efficiency Lag: higher number of projects completed within a timeframeLead: improved employee performance, improved team performanced) Learning and growth perspective:Improve communication and standards Lag: employee satisfaction and growth of skillsLead: better framework for performance management

Performance analysis:Performance analysis involves setting the criteria and standards for performance and understanding the various factors contributing to performance Here, we address the issue from the learning and growth perspective as it relates directly to the main immediate challenges of the organization as which, as mentioned before, are: Lack of clarity in defining, measuring and comparing individual performance Lack of clarity in defining, measuring and comparing behavioral competencies for team performance Thus, if we improve the communication and standards for defining and measuring performance, comparability would be easier and more transparent. And observability and knowledge of the criteria would lead to greater employee satisfaction. Moreover, there would be less scope of bias and it would decrease the dependency on sole opinions of the senior Project Manager.Besides, this would help define performance and what constitutes good or bad performance. This in turn would help to increase the efficiency of the organizational process by establishing clearly what performance means and what the KPIs are.Key performance areas (KPAs):Although it is a project based organization and the nature of work differs, these are the critical parameters i.e. which could be considered for measuring performance of both the software and quality assurance engineers. And these critical parameters could be grouped under two KPAs. These are: Individual performance Team performanceEach KPA consists of a number of critical criteria which are the key performance indicators or KPIs to measure the behavior and performance of the engineers. They are given below:a) KPA: Individual performanceAssociated KPIs;The KPIs under individual performance are related to the performance of each engineer, irrespective of others, and include quality, output and input aspects.Solidity of work: The solidity of work KPI refers to quality of the programming code and number of bugs or errors present in the software.Each task can be completed in various methods of programming. But there are some ways which are more efficient, effective, competent and safe. These methods by which the tasks are done determine the quality of the programming code. Moreover, the number of bugs increases the risk factor of the work. Thus this KPI is the most important of all and would carry a higher weight.Timeliness: The timeliness KPI refers to whether deadline is met or not.As the tasks are highly interrelated, delay in one deadline will delay the whole process. Thus the nature of the work is very time-sensitive and timeliness is a crucial criteria.Efficiency: This KPI refers to how much of a particular task is done within a fixed period of time.The deadline given for completion of a particular task is the maximum time which is required by an employee to complete the task. Although the deadlines are set to ensure a certain level of efficiency from the employees, they are realistic too and contain a time margin for error fixing or delay. Thus there is scope of meeting varied degrees of efficiency within the deadline. And so, it can be a KPI to measure good performance. Level of understanding instructions: This KPI refers to how well and accurately a member understands the written task description and instructions.Each task has very specific instructions. These instructions are in a detailed written format based on client specifications and work assignment according to CTO and Project Manager. It is very important that the engineer understands this written brief on his own and completes the task accordingly.b) KPA: Team performanceAssociated KPIs:The KPIs under team performance address both the behavioral competencies for team work and also interpersonal or dyadic factors. Team spirit: The KPI of team spirit refers to how well the member adapts and works cohesively with the group. It also refers to the extent an employee contributes towards completing the team objective.As the tasks are interdependent and hence, the employees are interdependent and team spirit is thus a very important KPI.Cooperation: This KPI refers to how much the member helps others, especially junior engineers to solve problems they may be facing in coding or fixing errors.As the tasks are technical and each task is different upto an extent, this would act as coaching for the junior employees. And this would also help build better interpersonal relationship between the people.

Tolerance and responsibility: This KPI refers to the extent an employee is tolerable of others mistakes and how he deals with them. Besides, it also refers to the extent an employee takes responsibility for any error of the sub-team or dyad and the way he deals the situation.As this is a small organization, with interdependent task and jobs, having a good, healthy and friendly environment is extremely important. And thus this KPI would help determine an employees role in maintaining that environment.Some of the facilitating and inhibiting factors, attributable to the individual, seniors, subordinate or juniors, organization and its systems and work environment, affecting the performance of the employees are given below:Facilitating factors: Familiarity with task Inherent desire and initiative to exceed target Clarity of the written instruction brief Advice/demonstration of difficult work by seniors Maintenance of deadline by other engineers Fast and uninterrupted internet service Updated and appropriate software in workstations and computers Efficient and competent juniors to enable delegation

Inhibiting factors: Inability to be flexible or adaptable No feedback from Project Manager or Leads Inertia in the absence of pressure Absence of team spirit among the other members Virus in the computers of the workplace Loadshedding and disrupted electricity Lack of working knowledge and skill of the juniors Lack of trainingPerformance AppraisalFormat of performance review:The format and criteria of the framework is based on the two challenges and the balanced scorecard as mentioned above. The performance management framework is directly related to the learning and growth perspective of the balanced scorecard. It is the lead indicator to improve communication and standards. It would increase employee satisfaction by bringing transparency and observability into the performance review system. Besides, results from the evaluation would help increase the efficiency of the organizational process by identifying and communicating the problems of each individual, the gaps in the process, and the measures to overcome them.The format of evaluation of performance in the performance review is given below:Who evaluates: The performance evaluation is kept the same in terms of who does the evaluation. The Project Manager, CTO, Project Leads will evaluate the engineers, as well as the engineers themselves through self review. We only introduce a form for formal peer review.When it takes place: The performance review is kept semi-annual, as per industry standard. Moreover, since average project duration is 6 months, conducting performance evaluation twice a year has the chances of coinciding with completion of a project.What is evaluated:The performance of the employees throughout the 6-month period, based on the KPIs would be evaluated. Moreover, the results and critical incidents found during the continuous monitoring phases would also be taken into account. Besides, self-review, peer evaluation and management discretionary decisions would also be considered as the work environment is very fluid and flexible and the work type has many subjective components. Evaluation method:Behaviorally rated anchor scales, BARS would be used to measure the KPIs. and the results would form the basis for bonus, increment in salary. Besides, the results of continuous monitoring as per the Project Leads and Project Manager would be taken into account.For the peer evaluation, ranking could be used with a comments section to explain the answers. Besides, subjective judgment regarding behavioral competency and results of self-evaluation forms as provided by the CTO and senior employees, as mentioned above, will be taken into account for career planning and successor planning.How review takes place: The existing methods for self-review, review by Project Manager, Project Leads and CTO, as mentioned above, would be used i.e. confidential e-mail for self-review, discussion of employees with Project Leads and discussion for Project Leads, Project Managers and CTO. The new addition, the peer review form would be confidential and handed over to the Project Manager.Feedback:The feedback method would remain the same i.e. immediate feedback at any time of work as continuous monitoring is done. Besides, open discussion with Project Manager and CTO after performance review, as mentioned before, would still be in place.

Performance developmentBased on the results of the performance review, 2 key successors with high potential will be determined and they would be given more challenging jobs to test their capacities and build them up for the future. Besides, more promotional ranks are created so that career plateau doesnt happen.

Performance auditAs this is a small organization with similar types of projects, and the review format is quite flexible, the performance audit can be done after every 2 years or so. But if the environment changes drastically, i.e. if new clientele with decidedly different types of projects are incorporated in the revenue portfolio, then the performance review would need audit and revision.

Works Cited

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