PERFORMANCE MANAGEMENT SYSTEM

THUNDERSOFT INDIA PVT LTD

Version 1.0

Prepared by Anuradha K
 POLICY OVERVIEW

Objective of Performance Management System

The objective of the Performance Management System is to create a framework for fair appraisal of the
employees and to help in individual development in alignment with organization’s objectives. By
establishing clear performance expectations which includes Results, Actions and Behaviors, it helps the
employees in understanding what exactly is expected out of them. This system sets the platform for
rewarding excellence by translating the appraisal process to the compensation and rewards for the
employees.

Appraisal Cycle

Thundersoft follows the annual appraisal calendar between August – July.

Since we strongly believe in continuous evaluation, feedback and performance improvement, all
managers are encouraged to conduct the appraisal cycle in short cycles. However, it is mandatory to
conduct the appraisal process at least twice in a year and the scores are to be shared with the HR
department.
Based on this, HR will be conducting one on one meetings with all employees, and sharing the dashboard
with management with feedback, suggestions and improvements in the process.

PMS in Thundersoft has been divided into four stages

1. Performance Planning
2. Performance Evaluation
3. Learning & Development
4. Compensation & Reward

1. Performance Planning

It is the first step of an effective performance management process. Planning consists of setting goals and
objectives at organizational level, then “cascading” throughout the organization to department, and
individual level as ‘Key Result Areas’ or KRAs.

KRAs refer to general areas of outputs or outcomes for which the team / individual is responsible. Key
Result Area in simple terms may be defined as the primary responsibility of an Individual, the core area
which each person is accountable for.

Based on the Job description, the KRAs for each team and role, along with the weightage to be given to
them will be arrived upon before the appraisal cycle starts. After this

- The manager / appraiser along with the employee / appraisee will set the objectives against each
KRA.
- The manager should ensure the set objectives are S-M-A-R-T (i.e. Specific, Measurable,
Achievable, Realistic, Time Specific).
- Against each objective, a specific measure / metric is clearly stated, defining how the result will
be evaluated at the end of appraisal period.
 - For each role, the expected goal and the rating criteria for the outcome is also defined
beforehand, wherever possible. This makes the evaluation unambiguous.

2. Performance Evaluation

To make the evaluation process simple and unambiguous, a universal rating scale of 0-4 will be followed
by the appraiser for both KRAs and competencies. While 1 indicates least desirable result, 4 indicates most
desirable result and 0 indicates ‘Not eligible for appraisal’.
This scale rating given by the appraiser, is later converted to % based on pre-assigned weightage for each
objective / competency.
At the end of the evaluation period,

- The appraisee must initiate the evaluation by filling in the targets reached against the KPI’s /
measures along with the self-rating in the PPET and send it to the reporting manager.
- The appraiser will then give his comments & feedback. Deviations in the rating will be discussed
and closed together by the appraiser and the appraisee.
- The ratings are then reviewed by the next level appraiser for validation. Any changes in the rating
will be discussed with the first level manager.
- The final ratings will be sent to the HR.

3. Learning & Development:

At the end of each appraisal, the reporting manager is expected to share a report of the Learning &
Development needs of his / her team with the management.
Based on these reports & the organizational needs, management will look at incorporating

- Internal / External training sessions for the team

- Customized development plans for individual employees

4. Compensation Revision:

Salary revision cycle will happen once in a year in Thundersoft w.e.f August 1st, each year.

The final performance % scores arrived at in the Performance Evaluation stage will be used for
Compensation decisions. The actual salary revision will be dependent on (but not limited to) the following
factors.

1. Performance scores of employees

2. Performance of the team, project, site and overall company performance
3. Compensation benchmarking with market and internal salary normalization

Eligibility:

- Confirmed employees who have worked for the company for at least 8 months in the current
Salary revision cycle are eligible for a salary revision i.e. those employees who have joined prior
to December 1st of the given cycle.
- For fresh graduates & trainees, who have joined mid-cycle, salary revision will be done at the end
of probation, i.e. at the completion of one year, irrespective of the date of joining.
- For employees, who have joined on or after December 1st, will not complete the stipulated 8
months and hence not eligible for salary revision in the current cycle.
For these employees, in the next salary hike cycle, appropriate calculation process will be applied
i.e. adjusted compensation hike % is applied accounting for the extra months in the previous cycle.