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RADICO KHAITAN LIMITED Annual Performance Appraisal

GUIDELINES
Review Period: 01 April, 2012 to 31st March,2013 11th March 2013 1. Introduction: Performance Management System is a consistent and disciplined approach to assess employees Performance & potential. It also helps in creating a base for career planning and succession planning. The effect of the implementation of this system has far reaching impact on the performance practices and culture of the Organization therefore it should be done meticulously with an intention of developing employees and to differentiate Performance. Broadly we should use Performance Management System to ensure the following: To give opportunity to the employees to express their views or to seek further clarification on their performance. To identify potential employees who can be future leaders. To assess employees performance against the Focus Areas set in their performance agreement for the appraisal year. To Counsel / guide employees to develop their skills, knowledge and share experiences. To Identify areas of Improvement and the Action Plan s for Improvement . To Reward the employees in a rational way & motivate them further. To generate data for career planning and succession planning.

We are now into the Final Stage of the Appraisal Process for year 2012 13, all eligible employees will be going through the Annual Appraisal Process as per the Appraisal meeting Schedule given by their appraiser . Employees have to complete the attached Annual Appraisal form, to go through the appraisal process and the guidelines for the Appraisal Process are given herewith.

1. OBJECTIVES OF THE ANNUAL APPRAISAL : a. To assess the Employee s performance for the period 1st April 2012 to 31st March 2013 against commitments made for achieving the Objectives of the Focus Areas for 2012-13 To arrive at the Final Performance Score (FPS) . To Finalize Performance Rating (FPR) for the year based on a rational approach of relative comparison of performance with in similar Grades / Roles. ( Eg : Compare M-10 grade Performance with M-10 grade only) To recognize and reward the Performance of employees based on their Final Performance Rating. To Identify Improvement Areas and Development needs of employees . To finalize an action plan for addressing the development needs of the employee s , which can be in the form of Job Rotation , Job Enrichment, Training / On the Job training , Personal / Group Coaching , Mentoring and other similar interventions to be specified by the appraiser & HR ELIGIBILITY :

b. c.

d. e. f.

2.

All employees in M2 to M10 grades With CONFIRMED services as on 31st March , 2013 are eligible for this Annual Performance Appraisal. 3. DISTRIBUTION OF APPRAISAL FORMS :

The forms would be distributed through e-mail to all the appraises by Corporate HR, however, it will be the responsibility of the respective appraisers to ensure that a hard copy of the Annual Appraisal form and the guidelines is made available to the appraises who are not on RKL e - mailing network.
4. COMPLETING THE ANNUAL APPRAISAL FORM :

The Appraisal form consists of Four sections as described below: Section A: Objectives : Appraisal of Objectives achieved against agreed

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This section would be mainly completed by appraise and appraiser and the Review Process will be as follows.

5.

Annual Appraisal Process Flow: Appraiser to Circulate a Common Schedule for Appraisal meeting with Appraise with cc to Reviewer and HR Step-3 Appraisal Meeting as per Schedule to complete the form & Scores for Focus areas

The routing of the form would be as under. HR to Issue Appraisal forms & Guideline Step-1 Step-4 Appraise to fill up form & send it to the Appraiser Step-2

Appraiser to Send Complete form to HR Facilitator Step-5 Step8 Reviewer to send Completed forms to HR

HR Facilitator to Compile the forms & Scores & send to Reviewer Step-6

Reviewer to Review Performance Scores & inform the changes to the Appraiser Step 7

Reviewer to finalize Merit Rank in similar grades & final Rating & Promotions

H R to compile the final Ratings & Exception analysis to present to the Top Management

Recognition of Performance as per Final Rating by HR

Feed back by HR from Appraise & Appraiser

Step 9 Step-12 Appraisal Process:

Steps 10

Step- 11

The review discussion should take place between appraise and appraiser in an uninterrupted manner and it is expected that typically such a meeting would last for about 45 minutes. This discussion would be based on pre agreed Performance plan documents . Sequence of the process would be as described below: Step No. Step 1 Step 2 Activities Corporate HR to Circulate the Annual Appraisal Form & Guidelines on email. Appraise to use specified Appraisal form to Complete the

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self-assessment part and forward it to his appraiser. The appraise is required to fill details of Focus Areas (F A s), objectives and achievements against agreed action plans and fill the agreed weight-ages against each Focus Area. Step 3 Appraiser will circulate a common schedule to his appraises for the appraisal discussion with them( Using the Appraisal Meeting Schedule. Format attached ) and marks a copy of the schedule to the Reviewer and respective HR facilitator. Appraiser should go through the performance plan of the appraise and collect adequate relevant data /information about the performance of the appraise during the review period before the appraisal discussion with the appraise on the scheduled date. On the scheduled date Appraiser to discuss appraises performance during the review period, discuss his agreements /dis - agreements with appraise. Appraiser to write appraisal score against each Focus Area based on the Weight age of the respective Focus areas. (Max score cannot exceed 80 points) Towards conclusion, the appraiser should complete by writing down his observations in each focus area and identifying improvement areas/development needs along with an action plan for the same . This would be the summary of discussions that took place between appraise and appraiser and should be signed off by both. SECTION B Appraiser to review FOUR competencies, Development Assessment Form annexed. using the

Importan t

Step 4

Appraiser to write the said Four competencies in the Annual Appraisal forms & assign scores based on the KEY given in the annexure .

Step 5

Appraiser to send completed forms to the HR Facilitator for Compilation & discussion with Reviewer.

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Step 6 HR to collate the forms, compile the data and forward to reviewer for review and finalisation of Merit Ranks & Final Performance Rating( FPR) Reviewer to review appraisal forms of all employees in their respective area of responsibility, to ensure that a fair process has taken place and no biases have crept into the assessment. Reviewers Ranking Scores to be based on comparable grades for example: All employees in M-10 will be ranked in comparison with others in M-10 only. Priority will be given to Performance comparison within same grade in the same Department, other wise Performance comparison will be done with similar role and same grade in another department (coming in the preview of the Reviewer). In case there is no comparative performance available for any single employee then total points scored by the employee will be used to classify the Performance Rating based on the score . Similar methodology to be followed for all grades. Step 8

Step 7

Step 9

Reviewer to finalise Final Scores, Rank, Final Rating and finalise Rewards for the employee for the employee based on his Performance Rating . Reviewer to give remarks where Rating is Outstanding OR Satisfactory & finalise development plans. The completed forms with Assigned Scores, Ranking, Rating & Developmental needs to be forwarded to the HR for further processing.
HR would summarise the data for all RKL divisions and present to Top Management for concurrence on Rewards to be given. HR to communicate the performance to the employee. . Dept Head and HR to give feedback to bottom 05% low performers and initiate developmental plans. Sample feed back by HR about Process compliance.

Step 10 Step 11

Step 12

SECTION B: Review of Self/ Team Development Focus Areas (Ref Development Assessment form attached ) :
The Assessment of Focus Areas for Self /team Development will be done using the Development Assessment Form given as an Annexure with Annual Appraisal Form. In this development discussion, the appraiser will give developmental inputs to the appraise on specific competencies/behaviours given in the Development Assessment Form. The Appraiser will rate the appraise on FOUR competencies which are critical for the employee to perform the given role . (Critical Competency means, a Competency which is most important for achieving the Objectives of the Focus areas of the Appraise.)

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Each Competency has a Maximum weight age of 05 Points and five rating options are given against each competency in the Development Assessment Form. Each Rating option has a Defined Weightage (Rating Score), which is given in the form of a Rating KEY as shown here.

USE

COMPETENCY RATING KEY RATING OPTIONS RATING SCORE

A 1

B 2

C 3

D 4

E 5

The appraiser will Rate for each of the FOUR Critical Competencies and assign the corresponding Rating score in the Development Assessment form as per the weight age given in competency rating key. The Appraiser will write at least one Example (E.g.) in support of each of the FOUR competency ratings assigned by him in the space given in the Development assessment form .The Examples (E.g.) given should be a significant fact / incident which he has experienced with the appraise in the last six months only and not on any opinions /perceptions of the past. Appraiser should highlight any changes that he has observed in the competency/ behaviour after the last review. The names of the rated Competencies , Rating assigned( A to E ) & the Score( 1 to 5) will be written in the space given in Section- B of the Annual Appraisal Form by Appraiser It is pertinent to mention here that it is compulsory for every employee to have at least one self develop focus area and for the team leaders to have at least one team development focus area, which has an exclusive point weight of twenty points in the appraisal. Ranking & Rating by Reviewer

Section C:

Based on scores assigned by Appraisers ,the Reviewers will assign Merit Ranking with in & Rating to each appraise in the Space given in the Appraisal form after discussion with the appraisers. THE MINIMUM SCORE achieved by an Appraise for a Particular RATING should be as follows : Category Minimum Score in FFA out of Max 80 points 76 60 40 Less than 40 Minimum % Scores Over all ( FFA + STD FA) 95% 75% 50% Less than 50% Over all Mini Score out of Max 100 points ( FFA + STDFA) 95 75 50 Less than 50

Outstanding Excellent Competent Satisfactory

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NOTE : Appraiser to verify that the Rating to be assigned from the above table after he has assigned the Scores to all Focus areas in the Appraisal forms.

BELL CURVE THE MAXIMUM PERCENTAGE in different Rating Categories would be as given below. Category Outstanding Excellent Competent Satisfactory Rating Category Cat- 1 Cat- 2 Cat-3 Cat- 4 %Age Distribution 05% 30% 60% 05% Description Top 05 percentile Next 30 percentile Next 60 percentile Bottom 05percentile

Section D: Final noting by HRD HR to issue necessary communication to Department heads/individual employees, take Feed back from employees ,update records, and close the process.

Note :Important aspects to be kept in mind by Appraisers while going through the Annual Appraisal Process : While commenting on the effectiveness, kindly depend on the overall experience rather than any critical incidence or transaction. Be aware of Halo Effect- i.e. bias that can be created by recent high or low performance, which is fresh in the memory. Use data / experience pertaining to review period only. Please schedule sufficient time for each appraisal discussion in the Appraisal Schedule . Please go through the appraisal form well in advance & go for the appraisal discussion WELL PREAPRED so that you can add value and generate more respect for yourself as a leader.

Schedule : The detailed schedule along with responsibility and time lines to complete the Mid Year Review Process is given below.
ANNUAL PERFORMANCE REVIEW SCHEDULE -2012-13 SL.NO.

Activities
Issuing Forms and Guidelines for annual Review Appraise to give Complete Appraisal Forms to respective Appraisers

Implementation Dates From To 15.03.2013 30.03.2013

Responsibility
HR and Appraisers.

1. 2.

01.04.2013

15.04.2013

Appraises s

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3. Appraisers to Circulate Review Meeting Schedules in the attached format to respective Appraises. Meetings for Annual Performance Appraisal between Appraisers and Appraises as per circulated schedule. Appraisers to forward Annual Appraisal Forms and Development Assessment Form of all Employees to respective H R HR Facilitators to Compile all the Forms and Develop Summary for Reviewers. Performance Review by Reviewer and final Ranking and Rating Communication of Results to Employee Feedback by HR Annual Review 01.04.2013 20.04.2013 Appraisers. Appraisers.

4.

10.04.2013

25.04.2013

5.

26.04.2013

05.05.2013

Appraisers.

6.

01.05.2013

15.05.2013

HR Facilitators.

7.

16.05.2013

25.05.2013

Reviewers and Appraiser s. Dept. Head and HR Facilitators. HR

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01.06.2013

15.06.2013

9.

1.07.2013

15.07.2013

We seek your co-operation in implementing a qualitatively superior performance appraisal both in terms of process compliance and timeliness . Respective Department Heads & concerned HR facilitators (as mentioned below) would extend all necessary support in making the process effective and complete it as per the schedule .

HR FACILITATORS FOR ANNUAL APPRAISAL

SL. NO. DIVISION / DEPTT. 1 HEAD OFFICE , INTERNATIONAL BUSINESS 2 RAMPUR AND BAJPUR OPERATIONS 3 CMD-NORTH , WEST, TUU-NORTH, TUU-WEST & REENGUS 4 CMD-SOUTH, TUUSOUTH, RKL TIMMAPUR 5 CMD-EAST, EAST-TUU & DMD HR FACILITATORS VINAY PADRO MANISHANKAR JHA HARIDAS KV MOBILE/CONTACT NO. E-MAIL 09811552214 vinayp@radico.co.in 09837442652 09871513654 jham@radico.co.in haridaskv@radico.co.in

HARIDAS KV RAVINDRA Kr .

09871513654 09818393006

haridaskv@radico.co.in kumarr@radico.co.in

Please Keep in Mind

Effectiveness/ returns of any System are directly proportional to the sincerity of the efforts put in its implementation and the

respect that is given to it by the members of the group

Corporate Human Resources Kulbir Chaudhry Sr.Vice President HR

cc:

CMD , MD & Appraisal Committee