Policy - Performance Management - v4 Go Way

MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED
HUMAN RESOURCES
Document Name : Integrated Performance

Management Policy
HR Discipline : Talent Development
HR Domain : Performance Management
Author : P Gida
Date : 26 July 2006
Version: : Draft approved by domain owner
File Reference : Policy - Performance Management_v3
Updated : T. Rapoo
Date : 01 July 2009
Version : Draft update approved by domain owner
File Reference : Policy - Performance Management_v4
MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 1 of 9

HUMAN RESOURCES
1. T ABLE OF C ONTENTS
1. TABLE OF CONTENTS .................................................................................... 2

2. AUTHORISATION ......................................................................................... 3
3. APPROVAL ................................................................................................. 3
4. DISTRIBUTION LIST...................................................................................... 3
5. INFORMATION CLASSIFICATION ........................................................................ 3
6. STATEMENT OF INTENT .................................................................................. 4
7. RATIONALE ................................................................................................ 4
8. SCOPE ..................................................................................................... 4
9. AUDIENCE ................................................................................................. 4
10. POLICY STATEMENT (CONTENT) ....................................................................... 4
11. RELATED POLICIES ....................................................................................... 9
12. RELATED PROCESSES / PROCEDURES ................................................................. 9
13. RELATED STANDARDS ................................................................................... 9
14. RELATED ROLES .......................................................................................... 9
Explanatory Note:
A policy is a broad set of principles or rules, which shape human behaviour

towards a well defined-purpose or end. A policy may refer to specific processes,
standards and roles required to ensure compliance.

HUMAN RESOURCES
2. AUTHORISATION
This document is authorised by:
Name Title Date Signature
Paul Norman GE:HR
3. APPROVAL
This document is approved by:
Name Title Date Signature
Charl Cuyler GM:OD
4. DISTRIBUTION L IST
This document is to be distributed as follows:
Name Department
HR Managers All Operating Units
Performance Management Consultants All Operating Units
5. INFORMATION C LASSIFICATION
5.1. The performance management policy is available to all MTN employees.

HUMAN RESOURCES
6. STATEMENT OF I NTENT
6.1. This policy sets out to define MTN‟s approach to Integrated Performance
Management, and the broad rules that govern it, with the purpose of
cultivating high performance ecology.
7. R ATIONALE
7.1. MTN operates in a highly competitive global market. Its strategy of rapid
expansion, places heavy emphasis on the alignment of the overall
strategic objectives at operating unit level, team and individual level.
Performance management is key to the success of the business, in
meeting its stated strategic objectives. A policy stating the broad rules
governing performance management is therefore required.
7.2. Performance management seeks to align organisational performance

with stated strategic objectives, through a process of continuous
improvement, ensured through formal performance measurement,
personal development, performance improvement plan, moderation
process and linking of reward to performance.
8. SCOPE
8.1. This policy governs performance management throughout the MTN

Group of companies (MTN).
9. AUDIENCE
9.1. The audience for this policy is any HR practitioner within MTN, line
managers and employees.
9.2. This policy is owned by the “Domain Owner” of Performance

Management, within MTN.
10. POLICY STATEMENT (C ONTENT )
10.1. At MTN, „Integrated Performance Management‟ has been adopted as

the approach to performance management, in support of a high
performance ecology.
10.2. Integrated Performance Management:
 Requires the formal measurement and monitoring of performance

against agreed performance objectives, set in accordance with
contribution to strategic and organisational objectives.
 Requires setting and agreement of performance objectives at

operating unit level, team and individual level.
 Requires utilisation of Oracle system to load performance agreement,

to conduct both review processes and all other performance activities.

HUMAN RESOURCES
 Requires identifying individual development plans for training,

development and performance improvement in line with the
individual‟s set and agreed performance objectives.
 Maintains a calendar of key performance related activities, which is

Performance agreement, two formal performance review periods and
moderation process.
 Requires regular tracking of performance through regular performance

feedback.
 Requires acknowledgement of good performance and or the recording

of gaps in performance and required changes in behaviour, changes
to business processes and developmental opportunities to close such
gaps, and or enhance good performance.
 Requires immediate implementation of a performance improvement

plan and process as and when an employee falls short of the required
standard of performance and this should be communicated and
discussed with the employee.
 Requires that after final assessment, a performance rating score for

individuals must go through a moderation process wherein the
Moderation Committee considers scores of concern, reviews and
moderates the scores if necessary. The moderated scores are then
regarded as the final assessment scores of the individual and used as
input into the determination of annual salary increase and
performance bonus.
 Allows for and manages appeals, where mutual agreement on

performance ratings has not been reached between the line manager
and the direct report.
10.3. All permanent employees within MTN must participate in the Integrated
Performance Framework.
10.4. The IPF cycle begins on 01 January to 31 December of each calendar

year, in line with the MTN financial year.
10.5. The IPF process governs performance management at two levels, firstly
at individual level and secondly at team level.
10.6. Individual Performance Management
10.6.1 It is the accountability of the line manager to manage the

performance of his/her direct reports. This includes setting of
performance targets, review of performance against those
targets, moderation process as well as submission of the final
performance ratings on the HRIS system.

HUMAN RESOURCES
10.6.2 At the beginning of the performance cycle all employees must

sign an Individual Performance Agreement with their manager.
The performance agreement sets out the performance
objectives, targets to be achieved for the ensuing year, as well
as tracking methods. This becomes a living document, and
must be updated during the year should the changes in the
business environment require so.
10.6.3 The employee and the manager must utilise the electronic
system-Oracle, for loading the agreement and all performance
process phases and activities.
10.6.4 The employee and line manager must each keep a copy of the
signed agreement, and a third copy must be sent to human
resources for record keeping.
10.6.5 Performance will be monitored on an ongoing basis throughout

the year.
10.6.6 Two formal reviews will take place, the first one bi-annually, and
the second one at the end of the performance cycle. Both
reviews will be taken into account in determining the final
performance rating which is subject to a moderation process.
10.6.7 Both parties must agree and sign the moderated final
performance appraisal. Should either of the parties disagree,
an appeal mechanism will be invoked, in accordance with the
approved process supporting the Integrated Performance
Framework.
10.6.8 Moderated score is updated on Oracle system.
10.6.9 At the beginning of the performance cycle, and during the

ongoing performance reviews, development needs and required
behavioural changes must be identified. Training and coaching
solutions, which will be incorporated into the Individual
Development Plan, must be provided to assist and empower
the employee towards the achievement of their agreed targets.
The Individual Development Plan, must also be monitored and
updated during the course of the year.
10.6.10 Performance at MTN is rated using a five-point rating scale,

where:
0 = Not achieved / did not achieve agreed targets and quality

requirements
1 = Partly achieved / More is expected
2 = Achieved expectations, within cost and time and quality

HUMAN RESOURCES
3 = Achieved more than expected
4 = Exceeded targets, extra-ordinary
10.6.11 The above rating scale will be used to rate each performance
objective, as well as overall performance.
10.6.12 Where no performance agreement has been signed, and no

performance appraisal has been completed, the particular
employee will not qualify for a salary increase.
10.6.13 In the event that an employee will be away during the

performance review period as determined in the IPF Calendar,
it is the responsibility of both the employee and the manager to
ensure that the performance review is completed before the
employee goes away.
10.6.14 When an employee transfers from one department or operating

unit to another within MTN, the current manager must do a
formal performance review before the employee transfers. The
score should be kept on record, and will be incorporated into
the final score at the end of the performance management
cycle.
10.6.15 When a manager or supervisor resigns, he or she must

appraise all his or her direct reports before leaving. This should
be discussed with the new manager/ supervisor, and should be
incorporated into the final score at the end of the performance
cycle. However, discretion should be exercised by the HR
manager; it may not be in MTN‟s best interest for the resigning
manager to do appraisals depending on the circumstances.
10.6.16 If an employee joins MTN after the 31st of December, he or she

does not qualify for a salary increase, which is effective in April
of each year.
10.6.17 Employees who joins the company during the year, prior to the
31st of December will qualify for a pro rated performance salary
increase.
10.7 Team Performance Management
10.7.1 All EXCO members, Operating Unit CEOs, Executives and

General Managers must sign bonus agreements, at the
beginning of each performance cycle, which set out specific
meaningful and challenging targets that must be achieved,
based on the business plans at Group and operating unit level.
10.7.2 The performance targets comprise of two Elements, Element 1

being the financial targets, and Element 2 other value drivers
that are deemed important for a specific performance cycle.

HUMAN RESOURCES
10.7.3 Performance against these targets is monitored throughout the

year using the Scorecard methodology as a reporting tool. Four
quarterly reviews are held within the year where each CEO
presents progress against the pre-determined targets.
10.7.4 At the end of the financial cycle the overall performance against
the targets is reviewed and assessed by the Group Chief
Operations Office, and the Operating Unit Board.
10.7.5 The final performance rating is then used as an input into the
calculation of a performance based bonus.
10.8 Poor Work Performance
10.8.1 Where the overall performance rating of any person is less than
1 for a particular review period, such performance is classified
as "poor performance".
10.8.2 It is the responsibility of the line manager to investigate the

reasons for poor performance.
10.8.3 It is the responsibility of both the manager and the employee to

ensure that a Performance Improvement Plan is put in place to
assist such employee to improve their performance within an
agreed time, depending on the circumstances.
10.8.4 The Performance Improvement Plan should stipulate the

specific performance area, and or behaviour that need to be
improved, the necessary actions required to assist the
employee, timelines within which there should be
improvements, as well as tracking methods.
10.8.5 The corrective action to be taken may include, but not

exclusively, training, coaching, referral to professional
counselling through the Employee Assistance Programme,
time-off, etc, depending on the merits of each case.
10.8.6 The Performance Improvement Plan must be signed by both

the employee and the line manager, a copy of which must be
sent to Human Resources for record purposes.
10.8.7 Should there be no improvement in the performance levels of

the employee, within the agreed time lines, then the termination
process may commence. If the reason for poor work
performance is misconduct on the part of the employee, this
will be dealt with through the Disciplinary Process. However, if
the reason for poor work performance is incapacity due to ill-
health, this will be dealt with through the Disability Policy.

HUMAN RESOURCES
11. R ELATED P OLICIES
11.1. The following policies are related to this policy in that they draw on
common practices and bodies of knowledge:
 Performance bonus policy
 Remuneration policy
 Succession management policy
 Career Management policy
12. R ELATED PROCESSES / PROCEDURES
12.1. The following processes are related to this policy:
 Integrated Performance Management process
13. R ELATED S TANDARDS
13.1. The following standards relate to this policy:
 Glossary – Integrated Performance Management
 Standard – Integrated Performance Management Scorecard
 Standard – Integrated Performance Management Templates
 Standard – Performance Management Calendar
14. R ELATED R OLES
14.1. The following roles are related to this policy:
 Domain Owner – Integrated Performance Management
 Integrated Performance Management Consultant
 Line Manager – Integrated Performance Management
 Employee – Integrated Performance Management

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MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED

Document Name : Integrated Performance

HR Domain : Performance Management

Date : 26 July 2006

Version: : Draft approved by domain owner

File Reference : Policy - Performance Management_v3

Date : 01 July 2009

Version : Draft update approved by domain owner

File Reference : Policy - Performance Management_v4

MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 1 of 9

1. TABLE OF CONTENTS .................................................................................... 2

A policy is a broad set of principles or rules, which shape human behaviour

MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 2 of 9

This document is authorised by:

Name Title Date Signature

Paul Norman GE:HR

This document is approved by:

Name Title Date Signature

Charl Cuyler GM:OD

This document is to be distributed as follows:

HR Managers All Operating Units

Performance Management Consultants All Operating Units

5.1. The performance management policy is available to all MTN employees.

MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 3 of 9

7.2. Performance management seeks to align organisational performance

8.1. This policy governs performance management throughout the MTN

9.2. This policy is owned by the “Domain Owner” of Performance

10. POLICY STATEMENT (C ONTENT )

10.1. At MTN, „Integrated Performance Management‟ has been adopted as

10.2. Integrated Performance Management:

 Requires the formal measurement and monitoring of performance

 Requires setting and agreement of performance objectives at

 Requires utilisation of Oracle system to load performance agreement,

MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 4 of 9

 Requires identifying individual development plans for training,

 Maintains a calendar of key performance related activities, which is

 Requires regular tracking of performance through regular performance

 Requires acknowledgement of good performance and or the recording

 Requires immediate implementation of a performance improvement

 Requires that after final assessment, a performance rating score for

 Allows for and manages appeals, where mutual agreement on

10.4. The IPF cycle begins on 01 January to 31 December of each calendar

10.6. Individual Performance Management

10.6.1 It is the accountability of the line manager to manage the

MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 5 of 9

10.6.2 At the beginning of the performance cycle all employees must

10.6.5 Performance will be monitored on an ongoing basis throughout

10.6.8 Moderated score is updated on Oracle system.

10.6.9 At the beginning of the performance cycle, and during the

10.6.10 Performance at MTN is rated using a five-point rating scale,

0 = Not achieved / did not achieve agreed targets and quality

1 = Partly achieved / More is expected

2 = Achieved expectations, within cost and time and quality

MTN HR TOOLKIT POLICY - PERFORMANCE MANAGEMENT_V4- 14/08/2009 Page 6 of 9

3 = Achieved more than expected

4 = Exceeded targets, extra-ordinary

10.6.12 Where no performance agreement has been signed, and no

10.6.13 In the event that an employee will be away during the

10.6.14 When an employee transfers from one department or operating

10.6.15 When a manager or supervisor resigns, he or she must

10.6.16 If an employee joins MTN after the 31st of December, he or she

10.7 Team Performance Management