Policy No.

25

Performance Management System

Effective Date: September 1, 2016

Revision Date:

25.1 The long-term success of the Company depends on the competitive

Policy edge that is built among the employees. Dealing with the challenges of
Statement the future will require focus, the resilience to handle rapid change, and
finding innovative solutions through the employees.

Managing performance is about identifying what the individual or team

must do to achieve business goals, and finding ways to do this better
than before.

Optimum management of performance is not a science - it is an art. It

requires day-to-day juggling of changing priorities in a shifting and
competitive environment.

Performance Management System is the means by which the employee

mitigates personal goals with business strategy, help identify and exploit
the potential of people.

25.2 Performance Management System is viewed as a cycle having different

Elements inter-linked components each of those having sub-components. The
entire Performance Management System in Ha-Meem Group includes:
 Key Performance Indicators (KPIs), (Attached Toolkit)
 Career Plan i.e.; Individual Development Plan (IDP), (Attached
Toolkit).
 Learning Agreement (LA) (Attached Toolkit)

25.3 The following are the objectives of PMS:

Objectives a. To align the outputs of appraisee and teams with the objectives or
goals of the Company;
b. To build productive working relationships between appraisee and
appraiser;
c. To optimize individual work performance by continual improvement,
and so achieve superior work outputs;

25.4 Performance of every appraisee is managed according to the following

Principles principles:
a. Every appraisee, at all levels is managed in line with the principles
of this Performance Management System.
b. The performance objectives of every appraisee are aligned with the

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 team and organizational goals.
c. Formal objective setting and review discussions take place between
appraisee and appraiser at least once a year, preferably more often,
and incorporate multiple input where possible.
d. Appraisees are managed on a day-to-day basis according to the
principles of the Performance Management System.
e. Standards to be met by appraisees (Key Performance Indicators)
incorporate:
 Customer expectations
 All relevant Company, professional or legislated standards.
 Those agreed between appraiser and appraisee.
f. Pay increase and incentive scheme are linked to performance and
these are determined as an outcome of the Performance
Management System.
g. The appraiser maintains a Performance Management record for
each appraisee, which contains both formal documentation and
informal notes about the appraisee’s performance and the
appraisee has the right of access to this record.
h. The appraisee’s Performance Management record is reviewed by
the appraiser’s at least once a year, and preferably more often.
i. The Performance Management Process is based on joint discussion
and comment between appraiser and appraisee, and there is joint
responsibility for their concurrence.

25.5 KEY PERFORMANCE INDICATORS (KPI)

KPI Those activities and standards which deliver the required outputs, i.e.;
what the appriasee must do and how it must be done. KPIs answer the
question “What will we see as an outcome”.

The cycle of Performance Management consists of the following::

a. Setting Key Performance Indicators (KPIs);
b. Reviewing performance.

25.6  A minimum of once per year, managers are expected to review

Performance performance quarterly.
Review  A joint discussion between appraiser and appraise, conducted in
private.
 Outcome and comments documented and signed by both parties.
 Incorporate the appraisee’s own assessment of performance.
 Review by the second appraiser (Appraiser’s Supervisor).
 Rating compilation by concerned HR Department and approved
by Unit / Department Head.

25.7  Assess performance against KPIs and rate it.

Performance  Mention / Commend good performance.
Review  Counsel to improve any elements of poor performance.
Activities  Action plan:
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 o to correct shortfalls, where necessary.
o to link to other HR processes e.g. Training and Development,
Recognition and Reward (Incentive Scheme Plan - ISP) and
pay review.
 Document the outcome (IDP, LA).
 Revise KPIs for the next period.
 Submit all the documents to Corporate HR.

25.8 a. Separate ratings prepared by appraisee and appraiser to be done

Performance b. Include reference to formal measures and informal indicators,
Rating e.g. letters of commendation from customers, warnings for poor
process performance or misconduct, etc.
c. Joint discussion and decision by the appraiser on the final rating
and endorsed by the appraiser’s supervisor.
d. Rate performance per KPI and then overall.
e. Rating should not be a rigid arithmetic process, but be based on
a reasonable conclusion drawn from all available data, and take
into account factors beyond the control of the appraisee.
f. Objective to ensure as overall assessment is made and that this
is regarded as fair by both the appraiser and the appraisee under
the circumstances, which existed during the period under review.
g. Final scrutiny by concerned HR and approved by
Unit/Department Head.

25.9 In general, career interest is to hold a discussion on possible career

Career paths for an individual within the Company by identifying his/her skills,
Interest and qualifications, experience and competencies to do the future job, and
Individual also support to attain these. It also optimizes the current and future
Development performance of potential Manager, by discussing a possible career path
Plan and associated developmental activities to achieve this growth
documented on Individual Development Plan (IDP)

25.10 An updated performance management toolkit (Annexure 3) will be made

Performance available to all the appraisers and appraisees by Corporate HR which
Management shall govern the total procedure of performance management system.
Toolkit

_________________
A.K. Azad
Managing Director

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 INDIVIDUAL DEVELOPMENT PLAN (IDP)

BIODATA

Name
Current Position

CAREER INTEREST
Preferred
Alternative

BEHAVIOURAL COMPETENCIES

Strengths

Weaknesses

FUNCTIONAL/TECHNICAL COMPETENCIES

Strengths

Weaknesses

DEVELOPMENT ACTIVITIES
Functional/ Technical
Competencies to be
developed

Behavioral
competencies to be
developed
Experience to be gained in
particular area

SIGNATORIES
Appraisee Date

Appraiser Date

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 KPI Documentation Form
KPI description      
Unique Identification
KPI Name Tk. net cash flow  
   
Organizational
KPI No. measure no.
Definition and usage
Definition
Organizational Area Balance Scorecard
Perspective
Calculation
Subordinate measures
used for the calculation
Trend is good when
Calculation Formula (figures are)
Focus
Purpose
Strategic objective
Measurement focus Measurement type
Impact Stage Indicator focus
Presence at other
Level levels  
Data profile
Standard reporting
Data capture period frequency
Automation fit Data integrity
Limitations
Targets
Target Green threshold
Benchmarking fit Yellow threshold
Other intermediate
target Red threshold
Measurement administration
Measure owner (title) Data custodian (title)
Data custodian
Measure owner (name) (name)
Current status Activation date
Data gathering
Lead time  
Data source (ERP)  
When is data
Who maintains produced
Comments

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 LEARNING AGREEMENT

TO BE COMPLETED BY APPRAISER
Appraisee’s Name:
Appraisee’s Position/role: Cost Center:
Location/Site:
Training program to be booked (if known) Provider:
What changes do you expect to see in KEY CHANGES/DESIRED LEARNING
the Appraisee’s behavior/skills/knowledge as a result OUTCOMES EXPECTED:
of this training?
*
(i.e.: What will the Appraisee be able to do *
differently? How will you know/measure *
improvements?) *

Note: Provide sufficient detail to enable a selection of

appropriate training to match your need (if
necessary).

What timing is appropriate for the training?

Comments
We have discussed the Learning Objectives and agreed the desired training outcomes (signed)

Appraiser: ______________________________ Appraisee:

Date of discussion (regarding learning objectives and outcomes):

Appraiser’s Name

Appraiser’s position/role

Comments:

Second Appraiser

Departmental/Functional Head:

Signature:
Second Appraiser Department / Functional Head

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