Performance Management System

Communication Pack

“Ensuring A High Performance Culture”

CONFIDENTIALPrepared by: Organisation Planning & Performance

Department: Strategic HR Management

Table of Content

No Details Page

1 The Objective 3

2 The MAG Way 4

3 MAG Performance Management Framework 5

4 MAG Performance Management Principles 6

5 Performance Management Groupings based on Employee Categories 7

6 Policy Highlights 8

7 3 Rating Scale to differentiate performance 9

8 MAG Performance Management Process (ARROW Model) 10

9 1-on-1 Performance Discussion 11

10 Remember the 3Cs 12

11 Scenario of Performance Management 13 - 16

The Objective

The objective of a performance management is to facilitate the employee in understanding the goals of

the business, how they support these goals, how they are performing and what they

can do to continuously improve.

“High Performance Workforce”

3

The MAG Way

How does MAG evaluate an employee’s performance?

MAG online Performance Management System via

PULSERA

What is the meaning of Performance Management

System in MAG context?

The performance management

framework is built on the principles of

Evaluating AND Coaching through ARROW model

4

Ongoing Feedback & Coaching Session

Mid-Year Review (MYR)

(July - Aug)

Year-End Review (YER)

(Dec - Feb)

Key

Strategies &

Initiatives

Rewards &

Consequen

ces

Business Quarterly Performance Dialogues

• Senior Management sets

corporate and divisional

goals and targets

• superior and Employee

discuss and set

development objective.

• Individual goals and targets

are clearly defined.

• Providing on-going

coaching and feedback on

performance deliverables,

core values and

competencies.

• Confronting and

correcting performance

related issues and gap.

• Evaluating the quality of

an individual’s

performance.

• Completing the

performance appraisal

form.

• Conducting an effective

performance appraisal

discussion.

• Rewarding performers.

• Managing non-performers

• Identification of

development requirements

Phase 1: Performance

Planning & Goal SettingPhase 2: Performance

Review & Monitoring

Phase 3: Performance

Evaluation

Phase 4: Managing

Consequences

MAG Performance Management Framework

Performance Planning

(Dec - Feb)

MAG Performance Management Principles

Setting Good Goals

1

Having Great Dialogues

2

Managing Consequences

3

Performance Management is about DOING 3 things…

Clear, Challenging, Motivating, Realistic

Expectations ~ Goals ~ Measurements

Open, Frank, Face to Face

About Issues ~ Not about Personality

Significant, Quick, Directly linked to results

Good ~ Bad

DOING… just not saying that you will do !

6

Performance Management Groupings based

on Employee Categories

Level Executive and Above Non-ExecutivePilot Group / Cabin

Crew Group

Grade

A, B2, B1, C2, C1, D2, D1

G-B2, G-B1, G-C2, G-C1,

G-D2, G-D1

P2, P1, Q2, Q1, R2, R1

E4, E3, E2, E1

G-E4, G-E3, G-E2, G-E1

S4, S3, S2, S1

C2-P, C1-P, D2-P

G-C2P, G-C1P

D1-CC, E4-CC, E3-CC

RatioIndividual KPI : 70%

Corporate Core Values : 30%

Individual KPI : 40%

Behavioral Assessment Generic Requirement

: 30% Corporate Core Values : 30%

100% KPI based on Pilot

and Cabin Crew

Monitoring System

Note: Pilot Group, whose doing Management roles will fall under Executive and above

7

Policy Highlights

Compulsory for all employees

Eligibility:

Confirmed permanent employee (including those serving

Probationary period upon promotion)

Permanent new hire upon joining the company (on top of

Probationary Report)

Contract employee and Management Trainee - Upon

commencement of contract with a minimum contract period

of 6 months.

Trainee and SL1M - Not applicable (performance

assessment is based on Trainee Evaluation Form)

Main Appraiser must be the immediate superior; preferably

one grade higher than the appraisee

Executives and above will initiate their own appraisal plan. Appraisal plan for non-executives will initiate their own appraisal

with the guidance from the Immediate Superior

8

3 Rating Scale to differentiate performance

Rating

ScaleDescriptors

Observable Indicators

Performance (KPI)

3Exceeds Most

Expectations

•Set and achieved difficult and challenging performance

• Important contributor to some task/projects

•Ability to lead and drive team/self to achieve acceptable results under challenging

circumstances

•Recognized by others in the unit/division for excellent results/competencies

2Meets All

Expectations

•Achieved performance objective consistent with job requirements

•Reliable contributor to team/unit/division’s accomplishments.

•Ready to execute or follow instruction which impact competitiveness of

unit/division

•Achieve acceptable results for some key objectives.

1Does Not Meet

Expectations

•Did not achieve overall acceptable results.

•Failed to achieve several key performance objectives

•Unable to contribute to team/unit/division’s accomplishments.

•Have serious performance deficiencies that warrant close tracking/supervision

9

A

R

R

AIM

REALITY

REFLECTS

O OPTIONS

W WAY FORWARD

MAG Performance Management Process

(ARROW Model)

Set standards of performance

Identify the targets for performance

What was achieved against targets?

How near/far from targets are we?

What is preventing the achievement of targets?

Are there any lessons learnt from what has been

achieved so far?

What could have been done differently?

What are the options/opportunity in improving

performance?

What needs to be done to get closer to the target?

Contract and agree on the action plan moving

forward (e.g. development to be attained, specific initiatives

to be carried out to improve performance on targets)

Career Aspiration

10

1-on-1 Performance Discussion

(ARROW Philosophy to Guide Discussion)

A

R

R

AIM

REALITY

REFLECTS

O OPTIONS

W WAY FORWARD

Test your view of your KPIs with your immediate superior

Listen to your superior’s view of what KPIs should be for your role and obtain

agreement on these KPIs and targets.

The objective here is for the Appraiser and the Appraisee to “obtain an agreement

and understanding” on standards of performance for you/your role.

You can share/discuss with your immediate superior your self assessment against

the KPIs /Targets set

Immediate superior will assess you against each KPI / target set using the KPI

scoring guide

Based on the agreed KPIs/ targets reflect and discuss with your immediate

superior on your performance to date. Specifically reflect on what was

preventing you from achieving your targets /higher targets and roadblocks (if

any) and what were some lessons learnt

Come up with some solutions to improve performance , stretch performance

further/higher, and/or overcome obstacles where applicable

Discuss these with your immediate superior

Contract and agree on the action plan moving forward (e.g. development

to be attained, specific initiatives to be carried out to improve

performance on targets)

Agree with your immediate superior your individual development plan.

11

Head of

Divisions/DepartmentsImmediate Superior Employee

Obtain a copy of the division scorecard

and discuss with their Immediate

superior to ensure understanding of

expectations and the measurements

Be objective in the performance

discussion to ensure employees

understand their performance levels and

made aware on specific areas to

improve if required

Be prepared to force-rank your

subordinates based on actual

contribution and achievement during the

year of review. You will be involved in

the Division-wide calibration session.

Be responsible – you are accountable in

having a one-on-one session with all

your direct subordinates during the

Performance Review Exercise. When

you are reviewing and making your

decision wear the “MAG Hat” and NOT

individual division hat. Ensure all

processes are completed.

Remember the 4B’s

Be accountable in setting the

right KPI for your employees

Be accountable for monitoring

and coaching

Be accountable wearing

company-hat when doing

evaluation

Be accountable in ranking of

employees objectively

Things that you should know:

Know how to use ePMS tools

Prepare to lead change (ensure

cascading is done correctly)

Provide constant feedback to your

employees on progress

Provide positive and constructive

feedback and also recognition

Identify career growth opportunities

to your team

Empower your people

Remember the 4B’s

Be accountable to know your

own KPIs

Be accountable to monitor

your own progress

Be accountable discuss with

your superior

Be accountable to understand

the PMR process

Remember the 3Cs:

Communicate… Communicate… Communicate

What I need to do as….

12

Scenario of Performance Management

A. Employee on Secondment

Scenario 1

Seconded to / from (short term / long term)

= Final Rating by Host Company’s superior with Feedback from Home Company’s superior

1 Jan 1 July 31 Dec

Normal Appraisal Appraisal by host company using home company’s form

Active Assignment Seconded

Scenario 2

Seconded and returned to MAG

= Final Rating with Home Company’s superior with Feedback from Host Company’s superior

1 Jan 1 July 31 Dec

Normal Appraisal

Active Assignment Seconded Active Assignment - Reinstated

Appraisal by host company

using home company’s formNormal Appraisal

13

Scenario 1 : Joined prior 1 October of the year = Final Rating by HOD

1 Jan 1 July 31 Dec

Normal appraisal on top of

probationary evaluation

Joined prior 1 October

Scenario 2 : Joined on/or after 1 October of the year = No Rating

1 Oct

1 Jan 1 July 31 Dec

Joined on

No

appraisal

1 Oct

B. New Hire

14

Scenario of Performance Management

Scenario 1 :

If the employee active in assignment for 3 months or below for the year

= No Rating

Scenario 2 :

If the employee active in assignment more than 3 months for the year

= Final Rating during Active Assignment

1 Jan 1 July 31 Dec

No Appraisal

Suspended / Long Unpaid

Leave / Prolonged Illness

Normal Appraisal

Active Assignment - Reinstated

1 Jan 1 July 31 Dec

Normal

appraisal

Active Assignment Suspended / Long Unpaid Leave / Prolonged Illness

No appraisal

1 April

C. Employee on Suspension / Long Unpaid Leave / Prolonged Illness

Scenario 3 :

Suspended / Long Unpaid Leave / Prolonged Illness and Reinstated

= Final Rating during Active Assignment (total active assignment > 3 months)

1 Jan 1 July 31 Dec

No Appraisal

Active Assignment

Normal Appraisal

Active Assignment - Reinstated

Normal Appraisal

Suspended / Long Unpaid Leave /

Prolonged Illness

15

Scenario of Performance Management

D. Employee on Promotion or Transfer

Promotion or Transfer

= Final Rating with New Grade or New Department with Feedback from Previous Superior

1 Jan 1 July 31 Dec

Normal appraisal (A)

Position A / Department A Position B / Department B

Normal Appraisal (B)

16

Scenario of Performance Management

Thank You

for enquiries, contact performance management team at:

performance.management@malaysiaairlines.com