Professional Documents
Culture Documents
Performance Appraisal 2019
Performance Appraisal 2019
1
Agenda
1. Purpose of Performance Management
2. Performance Evaluation
i. Dos & Don’ts
ii. Biases
3. Performance Appraisal Process
4. Terminologies Used
5. Performance Rating
6. Performance Calibration
7. HRC Meetings
8. Rewards – Salary and Bonus
9. HoH Appraisal Form
10. Performance Appraisal - Timeline
Purpose of Performance Management
Performance Management System provides a channel to improve organizational performance by linking and
aligning individual, team and organizational objectives and results. The system is designed to encourage open,
ongoing communication between the employee and the supervisor based on objectives and competencies. It also
provides an opportunity to recognize and reward good performance, to manage under-performance and address
developmental areas.
Dos Don’ts
• Types of Biases
• Contrast
This occurs when the manager compares an employee’s performance to other employees instead of the company standard
• Halo
An employee is rated highly in all areas because of one thing they do really well
• Horn
An employee is rated as a poor performer because of one thing they don’t do well
• Recency
Employee’s most recent behavior becomes the primary focus of the review
• Central Tendency
Causes some raters to score every question on a scale near the center
• Similar to me
Trying to find similarities between the appraiser and appraisee
Performance Appraisal Process
Self-appraisal of employee
Presentation to Group-Biz HRC & Group HRC (signing off on the bell curve, promotions and
increments for SMs and above)
Issuance of letters
Performance Appraisal Process
Scope
• All Management Employees with hiring date before December 31, 2018
Appraisal Review
• Functional Head/ Business Head
Appraisal Approach
• Ensure appraisal is done in an objective way. Personal or subjective bias should not be part of it
• Measure the performance against set objectives
• Avoid Biases (to be discussed later)
• Have a candid open discussion
• Use facts and incidents
• Avoid being defensive, listen to the justification or explanation being put forward
• Have a discussion on strengths and weaknesses
Performance Appraisal – Terminologies
Bell Curve
Bell curve is a general term that’s used to describe a graphical depiction of a normal probability distribution (explained later in detail)
Ratings
One who has mastered every element of the assigned position and is performing at a level well beyond that
Outstanding
normally expected of the vast majority of experienced employees with similar duties
One whose performance is clearly and substantially above required performance and which occasionally
Exceed Expectation
excels
Performance is generally at the required level. Employees at this performance level may exhibit some
Meets Expectation
particular strengths and typically, the strengths would offset the weaknesses
Performance is at borderline. The employee meets limited few targets and has below average job knowledge
Needs Improvement
and skills for the position
Not Acceptable Overall performance is not acceptable and needs meaningful improvement within the next 3 to 6 months
Performance Ratings
Bell Curve
Establish the rating of the appraisals within your department. This can help in normal distribution of the departmental appraisals as shown
below:
Promotions
Promotions can take place based on the following criterion:
1. There must be a vacant position in the organizational chart for the person to get promoted to
Performance Calibration
Performance Calibration is a process in which Managers (HoDs/HoFs) come together to discuss the performance of employees
and achieve agreement on performance appraisal ratings. The practice of performance calibration refers to the steps taken to
make sure that managers apply a consistent set of standards in making performance ratings.
1. Improves the accuracy of the performance ratings : The collective discussion regarding performance allows managers to have
new insight into the performance of employees and reduce potential bias
2. Clarifies high performance standards : Calibration builds a common language around defining performance expectations across
all managers. As a result, managers will be better prepared to discuss the reasons behind ratings with employees and create
development plans for ongoing performance improvement and career development
3. Increases transparency and fairness : Accuracy of ratings and the clarification of performance criteria increases the likelihood
that employees will find the performance appraisal process to be fair.
Performance Calibration Sessions
Performance Calibration Sessions typically operate in the following way:
Discussion of confidentiality : It should go without saying that the information discussed and the resulting outcomes should be kept
confidential by all managers involved.
HRC Meetings
Business HRC
Composition of Business HRC : CEO (Chairperson) and Management Committee of the respective business (KEY HoDs)
Mandate : Officers to GM
1. Evaluate and approve Performance Ranking and Salary Actions of Managers & below and recommend SMs & above to Group-Biz HRC
for final ratification and approval
2. Approve Promotions of Manager & below and recommend SM & above to Group-Biz HRC for final ratification and approval
Note: Group Director HR to be present in the final Business HRC when calibration happens
Group-Biz HRC
Composition of Group-Biz HRC (AUTO) : CEO, HR Head, CEO IMC, Group Director HR, Group Director Automotive Strategy, VCs and
Chairman
Composition of Group-Biz HRC (AUTO) : CEO, HR Head, CEO IMC, Group Director HR, VCs
Mandate : SM & Above
Salary Increments
For market competitive increments, a detailed survey is done periodically by the company, to gauge the competitive standing of
the company against other companies Salary increments include the following major factors:
1. Competitive Factor
2. Merit Increase Effective Date for Salary Increment is
3. Standard Promotion Increment 1 July, 2019
4. Special Adjustment
Key Points
ACTIVITY TIMELINE
Appraisal Rollout 3 April 2019
Workshop & Communication Sessions
Workshop with HOFs/HODs (after 3M)
8 April 2019
Sessions with management staff (3:30pm – 4:30pm)
Performance Review Meetings
Performance Review Meetings with Employees 9 - 25 April 2019
Submission of Ratings to HR 30 April 2019
Consolidation of Ratings 2 – 15 May 2019
HRC Meetings
Business HRC Meetings : Performance Ratings and Bonus/Salary Action for Officers - GMs 16 - 17 May 2019
Submission of SGMs & Above appraisal forms to Group HR 15 May 2019
Group-Biz HRC Meetings (Auto) : Ratification of Performance Ratings of SMs – GMs 27 May 2019
Submission of appraisal forms to HR 20 - 27 June 2019
Issuance of Letters 30 June 2019
Performance Appraisals for Non-Management Staff – Timeline
ACTIVITY TIMELINE
Appraisal Rollout 3 April 2019
Workshop & Communication Sessions
Workshop with HOFs/HODs (after 3M) 8 April 2019
Session with Supervisors, GLs/TLs (11:30am – 12:30pm)
9 April 2019
Session with Supervisors, JTMs (04:00pm – 05:00pm)
Performance Review Meetings
Performance Review Meetings with JTMs 10 - 30 April 2019
Submission of Ratings to HR 6 May 2019
Consolidation of Ratings 7 – 19 May 2019
HRC Meetings
COOs Approval 20 May 2019
CEOs Approval 22 May 2019
Group-Biz HRC Meetings (Auto) : Ratification of Performance Ratings of SMs – GMs 27 May 2019
Salary Program Effective 1 July 2019