Taha Pm Final Report 2003
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Transcript of Taha Pm Final Report 2003
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INTRODUCTION OF PERFORMANCE MANAGEMENT
Performance management includes activities to ensure that goals are
consistently being met in an effective and efficient manner. Performance
management can focus on performance of the organization, a department,
processes to build a product or service, employees, etc.
Performance management of individual
employees differs. It generally includes the
work planning, setting goals, offering
feedback and reviews, offering opportunities
to learn more in ones field, and rewarding
employees who perform well.
Employee performance management works
best when work is planned and goals are
consistent. This may mean having a clear way to communicate regarding
work epected at the moment and upcoming work. Planning also includes
defining epectations of the employee so that he or she is not broadsided byevaluation criteria not included in planning.
Planning and setting goals in performance management also creates a
system of predictable rewards for good performance, and conse!uences for
poor performance. It also involves giving feedback to employees on a more
consistent basis than the average annual review. Instead, an employees
ability to eceed or failure to meet goals may be monitored on a monthly
basis. This provides the employee with either the opportunity to receive
compliments and rewards fairly regularly or to make behavior changessooner if performance is not up to par.
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AE Design History
"E #esign is the premier engineering design and $onsultancy $ompany in
Pakistan. They are specializing in the engineering and analytical related
services for the mass automotive and industrial machine industries. "E
#esign provides its clients with professional, eperienced design and
engineering services while maintaining a focus on economical and on%time
delivery.
"E #esign assists their clients from concept through validation to finished
prototypes and&or
finished products if
re!uested. 'ur
professional in%house
team brings your ideas
to fruition, be it an
integral part of a sub
assembly or an entire
system. Each of our
engineers holds
international degrees and brings a level of epertise adaptable to a changing
manufacturing environment without compromising their professional
integrity or the !uality of their technical services.
"E #esign was started in ())(. The $E' of the company *aafir +aheed
focuses on providing engineering services to the automotive industry. ince
these early days, they have epanded our horizons to include motor sports,
recreational, aerospace and industrial machine design. "E design clients are
based primarily world%wide with most residing in Europe and the -nited
tates. "E #esign continuing dedication to ecellence is carried forth
throughout the team.
MISSION
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"E #esign mission is to provide solution is to meet and eceed the
epectations of automotive clients with their acceptable timeframe and
budget./
VISION
"E #esign is looking forward for their epansion, engineering challenges
with ecitement, and produce solution with vigor./
ORGANIZATIONAL STRUCTURE
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PERFORMANCE MANAGEMENT SYSTEM
OF AE DESIGN
Performance System Procedure: -
0. Performance "ppraisal shall be comprised of ( parts i.e. Performance
1oals and $ompetencies. Performance "ppraisal shall carry a weight
age of 2)3 for performance goals and 4)3 for competencies.
(. Every year for all confirmed employees according to their annual
increment dates respectively, 5.6 #ept shall initiate Performance
"ppraisal by sending the performance appraisal format to all#epartment heads.
4. The performance goals as already set and agreed to between the
Eecutive & 7anager 8"ppraisee9 and his immediate boss 8appraiser9
shall be indicated in the format.
:. The appraisers shall evaluate the performance of the appraisees
according to the agreed criteria between them at the time goals were
set.
;. The appraiser shall discuss with the appraisee each and every goal in
the light of its achievement and the success criteria.
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2. In the course of Performance "ppraisal the training needs of the
appraisee shall also be determined.
=. >oth the appraiser and the appraisee shall sign the format. In case
there is any reservation the appraisee shall give his comments.
?. "fter the appraisal the appraiser shall forward the format to his
immediate senior who shall review the appraisal and give his
comments.
0). In those cases where an Eecutive have two reporting officers
,both shall conduct the Performance "ppraisal send the case to
functional incharge for this evaluation of the concerned individual and
who shall send the case to his incharge for review.
00. The total marks of an appraisal shall be categorize as under@
Aeeds
Improvement
0 >elow
;;3
>elow
epectations
( ;;3 %
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0;. The goals shall be based upon key performance indicator of
individuals Bob position.
0
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progress reviews with their employees. They donDt limit their
interactions to formal appraisals at the end of appraisal period.
+ith the discussion between top management the functional heads they
align the obBectives of employees with the ision of company.
'rganization strictly believes that appraisers should balance positiveand negative performance feedback. They should be well prepared to
give praise for accomplishments as well as provide constructive
criticism.
7anagers review the performance appraisal with employees. They need
to build consensus on the final appraisal document and the document
should be signed by the both parties and submitted to the 5uman
6esource department. -nder the supervision of 5uman 6esource
department, line managers conduct appraisal meetings. They are
directed to do preparation and prioritize the tasks and issues beforegoing in the appraisal meetings.
7anagers are responsible to schedule the appraisal meeting in advance.
Provide employee the opportunity to prepare whatever he or she wants
to say. 7ake sure to allow sufficient time for the meeting and give
employee the feel of importance and value.+hile conducting the performance appraisal meeting it is directed to
both parties 8the appraiser and appraise9 to avoid discussion of personal
issues. 7anagers should concentrate on the employeeDs behavior and
their performance.
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LINING OF APPRAISER AND APPRAISE
The linking between appraiser and appraise in "E #EI1A are different
department and designation wiseC
Department Appraiser Appraise
"ccounts Finance 7anager r. "ccountant
"ccounts Finance 7anager "ccountant#esign Engineering ProBect 7anager
#esign
$"# upervisor
#esign Engineering ProBect 7anager
#esign
#esign Engineer
#esign Engineering ProBect 7anager #raftsmen
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#esign
#esign Engineering ProBect 7anager
#esign
r. Engineer
Information
Technology
IT 7anager Aetwork Engineer
Information
Technology
IT 7anager +eb Engineer
Information
Technology
IT 7anager r. Aetwork
Engineer
"dmin "dmin Eecutive Procurement
'fficer
"dmin "dmin Eecutive Technical$oordinator
ales 1erman ales
7anager
"ssistants
5uman 6esource 56 7anager Front desk officer
$E' 56 7anager
$E' IT 7anager
$E' "dmin Eecutive
$E' ProBect 7anagers
8#esign9
ProBect 7anagers
8imulations9
ProBect 7anagers
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8#evelopment9
$E' "dmin Eecutive
$E' Finance 7anager
$E' 1erman ales 7anager
'rganizations organogram clearly reflects the linking between appraisers
and appraises. #espite this concrete Performance 7anagement system,
linking of appraise and appraiser is a potential problem which can result in
the negligence of maintain the documentation of the performances. In many
areas appraise and appraise are not directly linked at the work place. If we
take the case of #raftsmen, this position is reporting to #evelopment
coordinator and that position reporting to $"# upervisor and he is reportingto r. Engineer and enior Engineer is reporting to ProBect 7anager.
"nother issue is found that some designations are reporting to the two or
more heads at a same time. Those are clearly mentioned in the organogram
by solid line.
GOALS ! O"#ECTIVE SETTINGS
LINING OF GOAL SETTING AND APPRAISAL SYSTEM
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In "E #EI1A while conducting appraisal the appraiser is directed to set
the goals for the appraisee for the net financial year.
0. The goals shall be based upon key performance indicator of
individuals Bob position.
(. The goals must be specific and time bound.
4. The appraiser and the appraisee shall decide success criteria to
avoid any disputeat the time of appraisal.
:. The goals must be measurable.
;. Each goal shall be given weight age according to its relative
importance out of 2)3 reserved for performance related
evaluation.
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Aeeds
Improvement
0 >elow ;;3
>elow
epectations
( ;;3 %
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STAFF PERFORMANCE APPRAISA
FOR T!E PERIOD """""#
To be filled in by the immediate supervisor and discussed and shown to
the appraisee
NAMEDESI$NATI
ON
SAAR%AO&ANC
ES
D#O#'DEPARTME
NT
OCATION
APPRAISER
PERFORMANCE COMPETENCES
S(
#
)E!A*IO+RA ASSESSMENT PERFORMANCE
DIMENSIONSO&
!I$
!
MAR,S
O)TAINE
D
#
'o. ,no/0ed1eC Possesses knowledge of methods,
techni!ues and skills@ conversant with all phases of Bob
and related matters.
0 ( 4 : ;
2#
P0annin1 and Or1ani3in1C "nticipates needs@
forecasts conditions, plans, organizes and monitors
results till completion of tasks. -tilizes time effectively
and meets deadlines with effective and realistic action
plans.
0 ( 4 : ;
4#Decision Ma5in1C Takes rational, sound and timely
decisions based on relevant information and facts.0 ( 4 : ;
:.
GeadershipC #evelops in subordinates, the will
H desire to work towards common obBectives@assigns work to subordinates H keeps track of
the progress, corrects deviations to achieve
the common goals.
0 ( 4 : ;
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6#
Discip0ine7Attendance7Punctua0ity: Follows
guidelines as established by policies. The etent to
which the employee reports to work on time,
communicates schedule changes promptly to
supervisor, and maintains regular attendance and work
discipline.
0 ( 4 : ;
8#
Pro.0em So09in1 S5i00sC Gogically breaking problems
down to their essential elements@ carrying out
diagnosis, developing and implementing solutions.
0 ( 4 : ;
#Tenacity and Crisis !and0in1C 6emains steadfast H
maintains stability of performance under pressure and
stressful conditions H pursue tasks until completed.
0 ( 4 : ;
;#
De9e0opin1 staffC Identifies H motivates others to
improve their capabilities and standards of performance
through counseling, Bob rotation etc.
0 ( 4 : ;
#
Communications S5i00sC "bility to listen carefully H to
present facts and ideas verbally and in written form in a
very clear, effective and convincing manner.
0 ( 4 : ;
6
#Interpersona0 S5i00sC >uilds persuasive arguments on
logic&merit without hurting feelings of others.0 ( 4 : ;
8
#
Adapta.i0ityC "bility to alter behavior and opinions in
the light of new info and responds constructively to
changing situations.
0 ( 4 : ;
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Ma?imum Score ;=
Tota0 Mar5s O.tained
Performance @ BTota0 Mar5s O.tained 7 ;= ? ==
FORMAL REWARD SYSTEM
There is no formal and documented reward system eists in "E
#EI1A. It might be given on the sole discretion of the $E'. >ut there
is no documented policy available for that.
5ence the performance management system has no compliance with
the rewards and coercions.
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PROPOSED PERFORMANCE SYSTEM
PERFORMANCE MANA$EMENT
" Performance 7anagement process is meant for ensuring thatemployees are focusing their work efforts in ways that contribute toachieving the organizations mission. It consists of three phasesC
8a9 etting epectations for employee performance,8b9 7aintaining a dialogue between supervisor and employee to keepperformance on track, and8c9 7easuring actual performance relative to performance epectation.
P+RPOSE OF PERFORMANCE MANA$EMENT
The purpose of the performance management system is to ensurethatC
0. The work performed by employees accomplishes the work of theorganization.
(. Employees have a clear understanding of the !uality and !uantity ofwork epected from them.4. Employees receive ongoing information about how effectively theyare performing relative to epectations.:. "wards and salary increases based on employee performance aredistributed accordingly.;. 'pportunities for employee development are identified.
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OPERATI*E PERFORMANCE MANA$EMENT
'perative performance management system shall consist ofC
0. " process for communicating employee performance epectations,maintaining ongoing performance dialogue, and conducting annualperformance appraisals.(. " procedure for addressing employee performance that falls belowepectations.4. " procedure for encouraging and facilitating employee development.
:. Training in managing performance and administering the system.;. " procedure for resolving performance pay disputes.
PERFORMANCE APPRAISA
Performance appraisals are a way to give feedback to staff regarding
their performance. The appraisal can be used to encourage good work
as well as point out opportunities for improvement. "ppraisals can also
be used to set measurable targets and obBectives to continually spur
performance improvement.
Increasing Role Clarity
Performance appraisal is a tool for communicating the skills,
knowledge and attitudes re!uired for the different Bob roles. The
appraisal criteria acts as a guide to the attitudes and behaviours
that "E #EI1A would like their staff in their various capacities to
have.
Training and Development
Performance appraisals measure an individuals performanceand can identify opportunities for improvement or learning
through training.
Compensation and Reward
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"E #EI1A re!uires that bonuses and annual increments are
linked to performance, a system for measuring performance in
an e!uitable way is necessary. Performance appraisal
encourages the use of obBective, !uantifiable criteria to measure
performance which will be known to all staff. This system
improves fair Budgment and the perception of e!uity among staff.
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Career Planning
Performance appraisals will allow "E #EI1A to assess the skill
set of their eisting staff to ascertain the career path for each
individual.
Enhance Corporate Values
"E #EI1As corporate value is the pursuit of innovative !uality
in the areas of $ustomers, Employees, ociety, Products,
Technology, 7anagement and Fairness. These values are
translated to performance measures that are used in the
appraisal. This enhances awareness of corporate values andpromotes behaviours that are in line "E #EI1As values.
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DE*EOPIN$ PERFORMANCE TAR$ETS AND $OAS
P6'$E#-6
E
"$TI'A E"7PGE
tep 0
>egin by writing
down the basic
nature of the task
using only a verb
and a noun
ource new clients
Increase sales volume
6educe reBection rates
$omplete planning phase
tep (
Include the
!uantity or !uality
that must be met
by the person
responsible for the
task
ource number of
!ualified clients within Jmonths
Increase sales volume by3 by certain time
6educe reBection rates by
;3 by the end of theyear
$omplete the planning
phase by certain time
tep 4
If necessary, add
any procedures or
criteria that
describe the action
to be taken to
achieve the target
or goal
ource number of
!ualified clients within Jmonths by activelydelivering services topotential clients withinthe automotive industry
tep : 6eview and refine
the target or goal if
necessary
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C!EC,IST FOR TAR$ETS AND $OAS
The performance goals should be operational and development. They
must be 7"6T 1oals.
SMART/ Performance 1oalsC
Specific
Measurable
A chievable
Results%oriented
T ime%bound
To ensure that the obBectives are properly defined, each of the
following !uestions must be answered positivelyC%
8i9 #oes the statement of performance targets&goals limit the
results to one specific areaK
8ii9 "re the results well defined in terms of what is epected of the
Bob holderK
8iii9 "re the obBectives measurable and observableK +ere obBectives
!uantified whenever possibleK
8iv9 +as a time frame specifiedK
8v9 "re the performance targets&goals reasonable and within the
reach of the Bob holderK
'bBectives of +riting Performance Targets and 1oals
pecific and measurable targets and goals define what is epected
from a Bob holder.
The performance targets and goals serve as standards by whichperformance can be accurately measured.
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DE*EOPIN$ ,E% PERFORMANCE INDICATORS B,PIs
CoreMana1er E?ecuti9e Staff
Customers
Customer Focus
7aintains high priority in achieving customer satisfaction 8both
internal and eternal customers9 by !uickly and accuratelyidentifying and responding to customers actual needs.
Is effective in dealing and negotiating with internal and eternal
customers.Emp0oyee
s
taff Training and !elfare
"ctively provides guidance and helps staff in their career
developmentInterpersonal& Facilitation of Teamwork
Promotes and develops good working relationships with other
staff
Communication "ill
peaks, listensand writes clearly and logically to share information and
skills
Society Cost Consciousness
#emonstrates concern for the society through practices that
save companys resources and reduce wastage
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CoreMana1er E?ecuti9e Staff
Products
and
Ser9ices
#ob $nowledge% Technical "ills
#emonstrates good knowledge and skill in Bob area
!or" &ttitude
#isplays commitment, planning and organizational skill,
initiative and a sense of urgency toward work and awillingness to learn
'uality (indset
7aintains high standards for how work is done in terms of
accuracy and consistency
afety
Ensures careful work habits that comply with the safety
re!uirements
'uantity of !or"
"bility to handle a reasonable volume of work
Tecno0o1
y
Process Improvement
6ecognizes the need for continuous improvement
Mana1em
ent
8to be
completedfor
appraisees
with
supervisory
duties9
Problem olving
Identifies issues and problems, secures relevant information
from different sources and resolves problems effectively
)eadership% upervision * (otivation of taff
ets a good eample for subordinates and effectively controls
and leads them
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CoreMana1er E?ecuti9e Staff
+oal ,rientation
ets realistic challenges and acts to achieve them#ecision 7aking
Takes the right action at the right time
Fairness Integrity
"cts ethically and honestly in line with the companys code ofconduct
Dependability % Responsibility
Is reliable in the discharging of duties and is willing and
adaptable in taking on new responsibilities
&ttendance% Punctuality
5as good attendance and is punctual
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PROPOSED ANN+A O)'ECTI*E FORM
"s it is mandatory in 5uman 6esource practice to document the
obBectives or targets set by appraiser and accepted by appraise. This
procedure supports at the time of appraisal and made the process
reliable and transparent. They should follow this pattern while setting
the obBectives.
ANN+A O)'ECTI*ES 7 TAR$ETS
Name: Desi1nat
ion:
Departme
nt:
ocation:
AoteC #iscuss all the 'bBectives&Targets with the appraisee in detail.
S (#
O)'ECTI*ES7TAR$ETS FOR T!E %EAR 2==-2=
Please !uantify as much as possible
&EI$!TA$E
&BTota0 Score for
tis o.Gecti9e
TOTA
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IN,IN$ AND SCED+AIN$ PERFORMANCE MANA$EMENT
It is proposed that "E #EI1A should start their performance
management cycle with financial year.
L 56 #ept to identify"ppraisers for eachdepartment,particularly fordepartments with morethan one appraiser
L 56 #ept to provide"ppraiser withappraisal forms
L "ppraiser to completeforms for respectivestaff
L $onduct performance appraisalinterview
L "ll Eecs and 7anagers will
undergo the appraisal interviewincluding setting performancetargets and goals for the net timeperiod
STA$ES OF T!E PERFORMANCE MANA$EMENT S%STEM
L "ppraisers to schedule0hr sessions for eachemployee
Inform EmployeesInform Employees
Preparation for 6eviewPreparation for 6eview
L "ppraisers to informemployees at least oneweek before thescheduled interview
Performance 6eviewand
"greement
Performance 6eviewand
"greement
7anagement6eview
7anagement6eview
56 #ept 6eview56 #ept 6eview
0st week of Muly
0st week of Muly
(nd week of Muly
4rd and :th week of Muly
:th week of Muly
L "ppraisers to submitcompleted form to respectivesuperiors for review andcountersigning
L "ppraisers to submit form to56 #ept
L 56 #ept to confirmrecommendations on salaryincrements and promotionswith 7anaging #irector
L 56 #ept to prepare letters tostaff accordingly
L 56 #ept to file appraisals inpersonnel forms
0st week of " ugust
chedule interviewschedule interviews
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PROPOSED APPRAISA S%STEM
$urrently "E #EI1A is using the >ehavioral "nchored 6ating cale8>"69 Evaluation system. They name that system as >ehavioral
"ssessment Performance #imension/. "s we propose them that they
should not only use this system but also include the 7anagement by
'bBectives 87>'9 Evaluation system.
MANA$EMENT )% O)'ECTI*ES
Please fill the resent achieved against the obBectives&targets given to the appraisee in the beginning
of the year. Please discuss all the achievements with the appraisee in details.
This form comprises of -./ weightage of Performance &ppraisal
S
(
#
ist 5ey o.Gecti9es priority /ise a1reed at te
.e1innin1 of re9ie/ period.
&ei1ta1e
& BTota0
Mar5s for
tis
o.Gecti9e#
Resu0ts
Acie9ed#
P0ease try to
Huantify
resu0ts# Read
te e?amp0es
.e0o/#
Ratin1 R
BMar5s
Acie9ed
a1ainst tat
o.Gecti9e# $i9e
mar5s out of
te tota0 mar5s
B& a00ocated to
tis o.Gecti9e#
E?amp0es for +nderstandin1:
Sa 0es: Responsi.0e for acie9ement of ==@
Annua0 Sa0es Tar1ets
!R: Comp0ete irin1 /itin ; /ee5s of
recei9in1 te !irin1 ReHuest#
IT: De9e0op 8 Modu0es of !uman Resource
Information System /itin tis year#
46
4=
>=
Acie9ed
a0most =@
Customer
Comp0aints
reduced .y
==@
acie9ed too5
= /ee5s on
a9era1e >
modu0es /ere
comp0eted
de9e0oped 4
SOPs
46
2=
2
Tota0 & Tota0 R
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Performance @ BTota0 R 7 Tota0 & ? ==
Fina0 A11re1ated Ratin1 BFAR for Form )
Performance @ ? =#=
@
Di9ision
Score
d O9era00 Performance
Form
A 4)3E?ceeds E?pectations B;8
==@
Meets E?pectations B= ;6@
Form
) 2)3
Tota0 ==@)e0o/ E?pectations B66
8' and >"6, by giving
2)3 and 4)3 respectively.
Elements of the &ppraisal Form
The appraisal form must cover the following key areasC
"ssessment of performance.
Employees growth and development % strengths and areas forimprovement.
Training re!uirements.
"chievements.
1oals and targets 8for managers and eecutives9.
6eview with staff 8for managers and eecutives9.
6ecommendations.
7anagement review% 6eview by $ountersigning "uthority.
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PARAMETERS TO COND+CT PERFORMANCE APPRAISA
)EFORE
T!E
APP
RAISA Neep good
records
>oth praise and criticism are most meaningful when
supported by factual eamples.
6eviewprevious
goals
-se previous goals to evaluate progress.
1et input
from others
eek feedback from others who work with the appraisee in
areas they will have obBective knowledge of and get
eamples where available.
Prepare
carefully
Prepare in advance so that you can deliver the message
that you intend to.
Prepareadministrativ
e details
"gree on a time % set aside at least one hour. "voidpostponing the appointment, and give the employee fullattention.
elect a location % office or conference room is best.
"sk employee to prepare % ask the employee to reviewhis&her goals, and come prepared with !uestions.
Eplain the
meeting
agenda
'utline what is about to happen for the session.
Encourage
communicati
on
Gisten.
Encourage two%way communication.
"sk for ideas on how they can improve their
performance.
"sk for how they feel you can help them.
"sk for feedback on the appraisal section.
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D+RIN$T
!E
APPRAISA tay focused Neep the session focused on past and future performance,
summaries discussion issues often to ensure agreement.
$ommunicati
ng
shortcomings
The employee epects and should know what he&she
needs to improve.
>e open >e versatile and open%minded if you hear things that
cause you to change your opinion.
D+RIN$T
!E
APPRAISA Evaluation
process
>egin with the positive things that were well done.
Follow this with areas that need improvement and a
plan on how to address them.
$onclude with a reinforcement of your desire to help theperson grow and improve.
7aking
promises
#ont make promises you do not have control over 8e.g.
salary increments, promotions, transfers etc9.
6eview goals $oncentrate on a few areas% things that make a
difference. Try to encourage continuation and growth in
the areas of strength. et up smart/ goals that will build
strength in areas needing attention.
AFTE
R
T!E
APPRAISA "dministratio
n
$omplete the paperwork re!uired for the results of the
appraisal.
7ake sure the appraise signs on the bottom line.
7ark the calendar on when your net appraisal session
with the person will be.Follow%up Follow%up on agreements made during the appraisal.
Gearning 6eview what you have learnt about the employee, your
records and systems, yourself, the appraisal process andyour management style.
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A*OID ERRORS IN PERFORMANCE APPRAISA
Common Ratin1 Errors
+hilst completing the appraisal form, the appraiser is advised to
eercise caution, as there may be several pitfalls which may skew the
assessmentC
0alo Effect
" person outstanding in one area tends to receive outstanding or
better than average ratings in other areas as well, even when such arating is undeserved.
1egative Effect
" low rating in one area yields lower than deserved ratings for other
accomplishments.
Central Tendency
"ssigning an average rating for all !ualities.
Confrontation &voidance
#iscomfort with giving negative feedback.
Initial Performance
6ating an employee based solely on initial impressions of performance.
Recency
6ating an employee based solely on most recent performance which
overshadows the entire years performance.
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$RADIN$ IN PERFORMANCE APPRAISA
There must be proper and well defined grading criteria. That must be
properly communicated to appraise by their appraisers. "ppraise is
then graded according to the level of his&her performance in each
category according to the final scoreC
,utstanding
Performance is eceptional and far eceeds epectations.$onsistently demonstrates ecellent standards in all Bob
re!uirements.
Very +ood
Performance is consistent, and eceeds epectations in all
situations.
+ood
Performance is consistent. $learly meets essential re!uirements ofBob.
Fair
Performance is satisfactory. 7eets re!uirements of the Bob.
1eeds Improvement
Performance is inconsistent. 7eets re!uirements of the Bob
occasionally. upervision and training is re!uired for most problem
areas.
2nsatisfactory
Performance does not meet the minimum re!uirements of the Bob.
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PROPOSED REWARD SYSTEM ! LINING
There are two modes of rewards, etrinsic and intrinsic. Employees aremotivated by both intrinsic and etrinsic rewards. To be effective, thereward system must recognize both sources of motivation. "ll rewardsystems are based on the assumptions of attracting, retaining andmotivating people. Financial rewards are an important component ofthe reward system, but there are other factors that motivateemployees and influence the level of performance. It has found thatamong employees all the time money is not the most importantmotivator, and in some cases managers have found money to have ade%motivating or negative effect on employees.
To ensure that the reward system is effective and motivates thedesired behaviors, it is essential to consider carefully the rewards andstrategies utilized and ensure the rewards are linked to or based onperformance. To be effective, any performance measurement systemmust be tied to compensation and some sort of reward. 6ewardingperformance should be an ongoing managerial activity, not Bust anannual pay%linked practice.
trategies for rewarding employees performance and contributionsinclude both non%financial and financial mechanisms. ome of themandatory ones are discussed below. The list is not comprehensive,and individual departments of "E #EI1A may identify additionalmechanisms that are appropriate for and support their culture andgoals.
Praise7reco1nition from super9isors
Praise and recognition from supervisors is consistentlyfound to be among the most importantmotivators. Employees want to be recognized and feel
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their contributions are noticed and valued. It is important thatsupervisors recognize the value and importance of sincerely thankingemployees verbally and&or in writing for their specific contributions.
Ca00en1in1 /or5 assi1nments
$hallenging&new work assignments are anothermechanism available for supervisors to reward good
performance. uch assignments can provideemployee the opportunities to develop new skills,epand their knowledge, and increase their visibilitywithin the organization. They also send an importantmessage that employees contributions arerecognized and valued. In considering suchassignments, supervisors should consult employees
about the types of assignments that would be most valued, and theyshould also assess whether workloads will need to be redistributed toensure employees have ade!uate time to devote to new tasks.
Professiona0 1ro/t and de9e0opmentopportunities
upervisors may provide employees opportunitiesto participate in educational programs or otheractivities that will epand their skills andknowledge. Employees benefit by developing newskills, and the organization benefits from the
additional epertise individuals bring to the Bob.
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Paid ea9e
'rganization may award employees up to 0=paid leaves annually in recognition ofcommendable performance with the approvalof their line supervisors keeping in confidencethe human resource department.
Pro1ression trou1 te sa0ary ran1e
Employees may receive salary increases to recognizethe attainment of new and the enhancement ofeisting skills and competencies or for assumingincreased responsibilities within the scope of thecurrent position. The salary increase represents aprogression through the salary range approved for theposition. This directs that their must a proper road
map defined.
Merit .ased increases Policy should allow supervisors to giveemployees an annual merit increase to recognizeconsistently commendable performance orsuccessful completion of a proBect that had asignificant impact on a department or theuniversity. The reward may be in any amount or
percentage, depending on the availability offunds. To be eligible for a merit increase,employees must have been employed for at least
si continuous months and at least si months must have onwardssince the employeeDs last salary increase, promotion, salary increasedue to progression in the salary range, demotion or transfer fromanother department.
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Promotions and 0atera0 mo9es
Promotions and lateral moves may be long term rewards thatrecognize employees professional growth, epertise, and capacity tocontribute to the institution in new roles. Promotions are typically
associated with an increase in salary.
)onuses
>onuses are compensation for employees for work performed@ they arepaid in addition to salary or wages. >onuses are consideredcompensation if they Oarise out of an employment relationship or areassociated with the performance of services.O Neeping in mind the "E#EI1As profitability the management should introduce this system.
Administrati9e sa0ary supp0ements
"s it is observed that in "E #EI1A employees are sharingresponsibilities so employees who assume new or additionalresponsibilities on an interim basis may receive administrative salarysupplements that are paid in addition to the base salary. Thesupplement is discontinued when the employee is no longerresponsible for the additional responsibilities.
Informa0 re/ards
+hen necessary, supervisors may choose to give employees informal
rewards for specific accomplishments or contributions. 'rganizationcan set an amount for employee informal non%cash rewards thatdemonstrate the supervisors and organizations appreciation.upervisors can be creative in identifying informal rewards that will beappreciated by the particular individual being recognized, but, inselecting and purchasing rewards, supervisors must be sensitive to theorganizations responsibility.
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