Performance Appraisal

The Performance Appraisal and Development Process (PADP) is a managerial and

organizational process that helps in reviewing / improving the performance and
capabilities of individuals, teams and the organization as a whole. It promotes a
performance culture in the organization through proper linkages between performance
and rewards.

1)Performance appraisal in SPCL is an open system and is meant to be a humane

process requiring sensitivity and skill on the part of the appraiser. We recognize that
there is an element of subjectivity in any appraisal system and no one can be totally
objective in appraising. However, the more data-based and informed this subjectivity is,
and the more sensitively it is exercised, the better is likely to be the outcome of the
appraisal exercise.

2)Our appraisal system also underlines introspection, as a powerful means of growth.

The self-appraisal therefore assumes great importance.

3)PADP in SPCL is geared towards an open mutual exploration of the performance,

between the appraiser and the appraiser. Apart from being a process for performance
evaluation and feedback, it is also an important vehicle for development.

4)We recognize that appraisal will be effective only if the feedback given does not come
as a surprise at the end of the year. Round the year communication and feedback
between an employee and his / her supervisor are essential.

5)We have identified 10 generic managerial competencies as most relevant and critical
for a successful career in SPCL, after considerable discussions internally. In order to
help the employees be aware of these competencies and also to help them imbibe
these on a continuous basis, these have been incorporated into the appraisal form for
annual review and feedback.

Procedure :
Performance appraisal is an annual event which takes place soon after the end of the
financial year. The appraisee first goes through the process of Self Appraisal. The
appraisee is expected to reflect on the performance period gone by and write down his /
her major achievements. He / she should also give himself / herself a rating as per the
rating pattern described in the form.

In the following step, both the appraiser and the appraiser should engage in a focused
discussion wherein they concentrate not just on the appraiser's performance in the past
year but also set targets (KRAs) for the current year. Discussions between the
appraisee and his / her appraiser should highlight achievements and shortfalls, against
the set KRAs of the past year. Developmental areas for the appraiser should be
identified and the appraiser should be given opportunities by way of training etc, to work
towards improvement in the ensuing year.

Employees in Technical / Administrative support roles will use the two-page form. All
employees in grade ‘N’ and those in ‘S’ who are primarily performing a support role will
have to fill-up form. Other employees in ‘S’ and those in grades ‘E’ & ‘C’ will use the
form.

The appraiser can give his / her recommendations for salary revision, rationalization
and final rating. The appraiser will not make any verbal commitments to the appraisee.
All decisions related to salary revision, and promotions will be implemented by HR in
consultation with the Business Head.

In case, there are sharp differences of opinion about one’s appraisal, the appraiser may
arrange a meeting between the appraiser, the appraiser and the reviewer to try and
resolve the difference. In such a situation the reviewer’s decision will be final and
binding.

Increments will be awarded to employees only if the appraisal form is duly completed
and signed by the Appraiser, HOD & Regional Head concerned. Revision letters once
finalized and announced will not be changed.

Expert & Governance Functions

In the matrix structure that we follow, various functional heads in the ROs also have a
reporting relationship with their HO functional heads. Performance feedback from the
HO functional heads will be taken into account in case of all such employees. However,
the RO view will have a higher weightage since they are more involved in the day-to-
day priorities of the Region, in respect of expert functions. Respective RO functional
heads will ensure that the same process is followed in respect of employees reporting to
them functionally, within the whole Region. The functions covered by this definition of
Expert functions, are :

1)PMV

2)Construction Methods

3)Contracts Administration

4)IT & Systems

5)Administration

6)LRD

The following functions are reckoned as “Governance functions” by the company:

1)Finance & Accounts

2)HR

3)Safety, and

4)Quality

The appraisal and career decisions of employees in these functions will be primarily
governed by their HO Heads, with inputs from Regional Head.

Rating Pattern
The company follows the following 4-scale performance rating pattern:

A++ - The Employee has achieved exceptionally high standards of performance

consistently. An acknowledged performer with high visibility across the Company. Has
very high growth potential.

A+ - Consistent good performance with high level of energy, initiative, and

contributions.

A - Performance largely as per role expectations.

B - Performance needs considerable improvement. Needs constant guidance to meet

role responsibilities

Rating Distribution
We follow the normal distribution (bell curve) approach for the purpose of rating
distribution. This approach is based on the finding in social sciences that most human
phenomena tend to distribute along a bell shaped curve (normal distribution). This helps
in identifying and differentiating between high and low performing employees.

As an overall guideline, we have set the following percentage limit for the different
ratings
A++ - Not exceeding 15% of the population.
A+ - Not exceeding 50% of the population.
A - Not less than 25% of the population.
B - Not less than 10% of the population.
Job Evaluation

A job evaluation is a systematic way of determining the value/worth of a job in relation to

other jobs in an organization. It tries to make a systematic comparison between jobs to
assess their relative worth for the purpose of establishing a rational pay structure. Job
evaluation begins with job analysis and ends at that point where the worth of a job is
ascertained for achieving pay equity between jobs. It tries to assess jobs, not people.
The basic information on which job evaluations are made is obtained from job analysis.
Job evaluations are carried out by groups, not by individuals. Job evaluation does not fix
pay scales, but merely provides a basis for evaluating a rational wage structure. Job
evaluation seeks to rank all the jobs in the organisation and place them in a hierarchy
that will reflect the relative worth of each. The process of job evaluation involves the
following steps:

● Gaining acceptance
● Creating job evaluation committee
● Finding the jobs to be evaluated
● Analysing and preparing job description
● Selecting the method of evaluation
● Classifying jobs
● Installing the method
● Reviewing the method

Selection of methods for evaluation of the employees can be qualitative or

quantitative. Qualitative method may be a ranking method or grading method and
in the quantitative method it can be a factor comparison method or point rating
method.

Generic Job Evaluation are those which are most relevant and applicable to maximum
jobs in the company. Developing and applying these job evaluations are critical to
successful performance. Following are the 10 generic job evaluations identified, after
detailed internal discussions with our Senior Management. We have also made this part
of our appraisal system for a periodic and systematic review.
· Learning Orientation

Learns from experience, seeks feedback, updates knowledge base and is open to
change. Coaches and Trains others.
· Customer Focus

Identifies the customer both external and internal. Understands and owns responsibility
for meeting their needs. Guides customers considering the parameters like Cost and
Quality.
· Communication

Clarity in spoken and written communication. Has listening skills and is receptive to
negative feedback. Is assertive to get the results and shows empathy.
· Quality Consciousness

Adheres to quality standards, quality assurance plans and systems voluntarily, without
supervision. Seeks and ensures committed quality standards, acquires the image of a
“Quality Person”.
· Leadership

Takes initiative and charge, acts with self-belief, self-confidence. Empathize, appreciate,
and motivate. Walks the talk, leads by example, and has high visibility and is
approachable. Accepts challenges. Demonstrates fairness. Communicates like a leader.
· Interpersonal Skills

Relates well with others. Is trustworthy, sensitive to others and respectful. Maintains
confidentiality. Accepts constructive criticism.
· Human Resource Management

Adheres to HR processes. Promotes good employee relations. Clarifies performance

expectations. Motivates others. Sets timely goals and reviews them. Fair in Reward and
Recognition. Attracts & Retains capable employees.
 · Target Orientation (Goal & Plan Orientation)

Plans, organizes, and allocates resources for achieving targeted completion,

productivity, and quality parameters. Does contingency planning to ensure that targets
are achieved.
· Process Based Working

Comprehends the upstream / downstream linkages of workflows. Can define workflow

processes, following PDCA (Plan, Do, Check, Act) cycle. Encourages & uses ERP to its
potential.
· Teamwork

Team player to achieve team / organizational objectives.

Some of the approved systems for job evaluation are:

Point System:

It involves a quantitative and analytical approach to the measurement of job value. A

number of important factors to be considered in each job are identified. The degree of
each factor is also determined for assigning points. The points of different jobs are later
on , converted into wage rates.

Factor Comparison Method:

Factor comparison is a systematic and scientific method designed to carry out job
evaluation which instead of ranking jobs as a whole, ranks according to a series of
factors. The aim of factor comparison is to assign financial value to the relative parts of
each job role.

Some of the Job Evaluation criteria approved by the company are:

Job Evaluation for Technical Knowledge

Job Evaluation Name :Technical Knowledge

Description and Attributes of the job evaluation: Thorough understanding of the Civil
Engineering concepts – Structure, Formwork, Reinforcement & Concrete, and Civil Finishes.
Quantity Survey and Rate analysis, RCC and Structural Design.

Behavioral Indicators of the Competency:

Proficiency Level 1 (Low or Works only on instruction and guidance. Seeks advice before
Absent) execution. Repeated errors arising out of lack of knowledge.
Not able to identify the alternatives to the problem hence, gets
stuck. Is very slow and tardy in response because of lack of
knowledge.

Proficiency Level 2 (Basic) Displays / Operates general understanding of the project and
drawing on the job. Implements as given. Does not have a
basic knowledge of design to suggest options. Has sufficient
knowledge for simple jobs.

Proficiency Level 3 Suggest options based on in-depth knowledge. Goes into

(Advanced) details of the drawings and understands. Has Knowledge of
advanced design, formwork and QS.
Proficiency Level 4 (Expert) Can offer effective solutions to most intricate problems. Is
looked upon as an authority in the organization of
Construction technology. Constantly applies value engineering
principles for cost saving and constructability. Demonstrates
expertise in formwork, design of structures, concrete mix,
structural design, constructability, and costing. Has a very
good overall grasp of the job. Readily shares his knowledge
with others. Trains others to be competent. Updated on
current trends and technology.

Job Evaluation for Project Management

Job Evaluation Name : Project Management

Description and Attributes of the Competency: Project planning and scheduling. Application of
modern tools in project planning and implementation. Vendor development / Management.
Contractual communication and documentation. Coordination, review and anticipatory skills.
Timely and appropriate decision making. Planning and optimum utilization of resources.

Behavioral Indicators of the Competency:

Proficiency Level 1 (Low or Inadequate knowledge of planning, scheduling and contract

Absent) leading to perennial fire-fighting and customer complaints.
Ignore basic civil engineering practices. Cost and time
overrun. Housekeeping is not as per the desired standards.
Improper sequencing of activities. Vendor development is low.

Proficiency Level 2 (Basic)
Can independently manage low value and simple projects
within stipulated cost and time. Has a general appreciation of
modern project management tools. Applies oneself to
understand contractual obligation, documentation and
communication. Ensures housekeeping and hygiene at the
site and labour camp. Vendor development is adequate.

Proficiency Level 3 Can independently manage complex and larger value projects
(Advanced) within stipulated cost and time. Organized working – devoid of
fire-fighting. Control of projects on a daily basis. Timely
communication and actions affecting stakeholders. Proficient
in the use of IT based project management tools. Keeps
updated on all aspects of the project – resource utilization,
cost to completion and profitability. Spots and taps
opportunities to generate additional revenue. Exhibits total
control over the project

Proficiency Level 4 (Expert) Strong Project turn-around capability in terms of time,

profitability, and customer relationship. Efficiently handles
hostile customers and builds strong customer loyalty arising
from professional competence. Proactive communication with
concerned stakeholders, anticipation of changes and advance
actions, makes a contingency plan. Close monitoring and
control of cost and finance. Manages through IT based project
management tools. Efficient contract communication resulting
in improved margins. Creates strong vendor partnership and
loyalty for long term relationships.