Group HR Policy No.

Group Policy Effectivity Date

Performance Management 04-Mar-2024
7
System Revision No. 0

1. PURPOSE

1.1 The Performance Management System (PMS) aims to establish a framework for
managing and improving employee performance. This policy outlines the process for
setting performance expectations, providing regular feedback, evaluating performance,
identifying development opportunities, and aligning individual goals with the organization's
objectives. By implementing a fair and transparent performance management process, we
aim to enhance employee performance, drive organizational success, and foster a culture
of continuous improvement and development.

2. COVERAGE

2.1 This policy is applicable to all team members of Bewell Group at all levels.

3. RESPONSIBILITY

3.1 Team Members – are expected to co-create their Individual Development Plans
(IDPs) with their team leaders, setting clear and achievable performance goals
aligned with the organization's objectives. They are also expected to actively
participate in performance discussions, seek feedback for improvement, take
ownership of their development, and adhere to the organization's performance
management policies.
3.2 Team Leaders – shall be responsible in executing this policy and its processes in their
respective units/teams. Shall co-create with their team members their performance
goals and ensure alignment to corporate strategies. They shall ensure alignment to
corporate strategies. They shall ensure monitoring of the performance plan of their
team members and shall provide continuous performance feedback throughout the
semestral performance period. They shall serve as the raters or evaluators of their
respective team members. They shall also be responsible in conducting performance
reviews of probationary employees reporting to them on the third and fifth month of
their probationary employment. They shall ensure proper implementation of the
development plans of their team members.
3.3 HR Team – shall have the prime responsibility of maintaining the sustainability of the
system and implementing the same in the entire organization. It shall also be
responsible in conducting orientation to all level of employees to ensure uniformity of
execution and understanding. HR shall also be responsible in the review of goals set
and safekeeping of the annual plans, performance reviews and notices in the
individual 201 file of the employees.
3.4 Top Management – shall be responsible in coming up with the approved annual
performance goals/target, establishing performance standards, and approving
recommended rewards mechanism for implementation.

4. DEFINITION OF TERMS

4.1 Performance Management System (PMS) – is a systematic process used by

organizations to manage the performance of their employees. It is designed to provide a

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 more systematic and objective approach to align individual and team goals with the
organization's objectives, monitor progress, provide feedback, and support employee
development. The PMS typically includes various components such as goal setting,
performance planning, regular feedback and coaching, performance appraisal, and
performance improvement plans. It aims to improve overall organizational performance by
maximizing the performance of individual employees and teams.
4.2 Performance Planning – is the process of setting specific, measurable, achievable,
relevant, and time-bound (SMART) goals for employees. It involves defining clear
objectives, outlining key responsibilities, and establishing performance criteria.
Performance planning ensures that employees understand what is expected of them and
provides a roadmap for achieving success.
4.3 Key Result Area (KRAs) – are specific areas of an individual's job that are critical for the
success of the organization. They define the most important outcomes that an individual,
team, or organization is expected to achieve, helping to focus efforts on key priorities and
align with organizational goals.
4.4 Key Performance Indicators (KPIs) – are quantifiable measures that assess the
effectiveness of the performance management process, aiding in the evaluation of
organizational and employee performance. They include metrics like productivity, goal
achievement rates, and turnover, aligning with strategic objectives.
4.5 Performance Coaching – refers to supporting efforts to achieve established performance
goals. Performance will be closely monitored by the rater. Critical incidents, recognition of
accomplishments, reinforcement, improvement and development of skills will be taken into
consideration prior to actual evaluation.
4.6 Performance Review/Appraisal – is a formal assessment of an employee's performance
against predetermined goals and standards. It typically involves a structured discussion
between the team member and team leader to review past performance, identify
accomplishments, and discuss areas for improvement. Performance appraisals help
identify training needs, and recognize achievements.
4.7 Performance improvement Plan (PIP) – is a structured document that outlines specific
steps for an employee to improve their performance. It includes clear performance goals,
timelines for achieving them, and support mechanisms such as training or mentoring. A
PIP is used when an employee is not meeting performance expectations and provides a
framework for addressing performance issues.
4.8 Performance Management Cycle – is the recurring process of managing employee
performance throughout the year. It typically includes several stages, such as planning,
monitoring, developing, and evaluating performance. The cycle is continuous and involves
regular feedback and adjustments to ensure that performance goals are being met and
employee development needs are being addressed.

5. GUIDELINES AND PROCEDURES

5.1 The Performance Management System (PMS) is about getting results. It is concerned
with the best from people and helping them to achieve their potential. It is an approach to
achieving a shared vision of the purpose and aims of the organization therefore; the
management team is mandated to ensure proper execution and implementation of the
same.
5.2 The PMS shall serve as guide to the management in employee counseling, employee
discipline, employee development, and shall serve as basis for personnel actions such as
but not limited to promotions, permanency or probationary employees, re-assignments,
management of churn, etc.

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 5.3 The PMS shall adopt a 5-point rating scale which is as follow:

1 - Unacceptable (Consistently fails to meet expectations)

2 - Partially met (Frequently fails to meet expectations)
3 - Good (Usually meets expectations)
4 - Very Good (Frequently surpasses expectations)
5 - Excellent (Consistently surpasses expectation)

5.4 The PMS is linked to the rewards management system of the company based on the
results of the performance review. Employees who obtained an unsatisfactory job
performance or did not attain the performance goals are subject for actions in accordance
with the Employee Code of Conduct.
5.5 Performance is judged into two parts:

5.5.1 Results (70%) – in line with the group goals and key result area (KRAs) or Key
Performance Indicators (KPIs), the following should be identified and described:

5.5.1.1 Employees expected goals or targeted accomplishments.

5.5.1.2 Percentage weight of each goal in terms of importance, urgency and
impact.
5.5.1.3 Measures of the specific ratios and indicators that will be used in
determining the level of performance desired.
5.5.1.4 Standards for criteria for successful performance using a 5-point scale.

5.5.2 Behavior Competency (30%) – Assess the manner the employee does his/her work
in terms of adherence to the corporate values and its manifestation in actual
behavior:

5.5.2.1 Integrity – the extent to which employee upholds and pursues what is fair
and morally right in doing his/her job.
5.5.2.2 Leadership – demonstrates effective leadership skills by inspiring and
influencing others towards achieving a common goal, guiding, motivating,
and supporting team members.
5.5.2.3 Excellence – strives for high-quality performance and continuous
improvement in all aspects of work, consistently delivering high-quality
work and seeking opportunities for improvement.
5.5.2.4 Balance – the ability to effectively manage multiple responsibilities and
priorities, ensuring that work tasks are completed efficiently while
maintaining personal well-being and managing stress levels.

PMS Activity at
Roll Three Month Appraisal Cycle
Sr. start of the
Individual Evaluation Evaluation (Year)
appraisal period
Announce PMS
Start the process of
PMS process in
Start the process Performance appraisal
Coordinator discussion with HR
(Notification)
Head
Fill & submit Six
Set Individual
months self- Fill & submit self-evaluation
1 Employee KRA/KPI for
evaluation. for a period
appraisal period
SMART way.

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 Evaluate
Immediate subordinates Discuss, suggest Discuss, suggest, make
2
Supervisor KPI/KRA, discuss and approve changes & approve
and accept.
Department Approval of all
Discuss, suggest Discuss, suggest, make
3 Head / KPI/KRA & submit
and approve changes & approve
Manager to HR
Compile, evaluate and make
Collect all details Collect all details
PMS analysis, identify good and
4 and discuss with and discuss with
Coordinator poor performer & submit
HR Head HR Head
report to HR Head
Prepare a policy, discuss
5 HR Head Approval Approval with HOD and approve.
Submit to CEO approval
6 CEO Approval Approval Approval

5.6 Guidelines for Probationary Employees

5.6.1 Newly hired employees will undergo a maximum probationary period of six months
and shall undergo two performance processes.
5.6.2 Upon hiring, the team leader shall discuss with the new employee his performance
plan geared towards meeting the performance goals expected of him/her for the
position for which she was hired. This shall be properly documented and submitted
to HR for record keeping. HR will request to the team leader to submit the
performance evaluation of the new employee for the first three months.
Subsequently, the team leader should discuss to the new employee how he
performed and agree with him/her on action steps to take if in case the employee
failed to meet the set performance goals. The team leader should closely monitor
performance and guide the employee in implementing the agreed action plans. The
team leader shall again evaluate the new employee on the fifth month after which
he/she must decide whether to regularize the employee or not.
5.6.3 On the fifth month of the probationary employment of the new employee, HR will
request to the team leader to evaluate performance of the probationary employee
and submit recommendations duly approved by the department head to HR as to
the status of his/her employment. If the recommendation is to terminate his
employment, HR shall issue termination notice to the new employee informing
him/her of the termination of his/her employment effective prior to the completion of
his/her 6 months probationary employment. If the recommendation is to place the
employee on a permanent status, then HR prepares documentation of all records
(performance evaluation and recommendation) and issue notice of permanency to
the new Employee.

By immediate TL
Completed within the first Goals - approved by
Goals Setting
week upon onboarding immediate TL and next
higher superior
1st Performance
By end of 3rd month By immediate TL
Evaluation
2nd Performance By end of 5th month Final rating and

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 recommendation - by
Evaluation immediate TL for approval
by next higher superior

5.7 Guidelines for Regular employees

5.7.1 Setting and Discussing Performance Expectations.

5.7.1.1 Top Management sets Annual Performance Goals/Targets during the

Annual strategic Planning held every year in preparation for the coming
year. These targets and goals are cascaded down during the annual plan
roll out.
5.7.1.2 All team leaders formulate their own team targets/goals based on the
Annual Performance Goals/Targets set up by top management and
cascade these to their team through their annual planning session and
integrate these targets and goals into their team members’ performance
management plan using the prescribed form.

5.7.2 Performance Tracking and Feedbacking

5.7.2.1 HR will request team leaders to conduct quarterly performance reviews

for all team members. These reviews will be conducted at the end of
each quarter, specifically in March, June, September, and December,
aligning with the company's quarterly performance assessment cycle.

During the performance review, team leaders will assess whether team
members' performance targets and goals are within agreed-upon
standards. They will also provide constructive feedback to reinforce
outstanding work output and commendable behaviors, as well as identify
areas for improvement and develop strategies to address any work
output that falls below standards.
5.7.2.2 Results of the quarterly performance reviews must be documented and
submitted to HR on or before the 5th working day of the following month
of the quarter. This timeline allows HR to consolidate the performance
review data and analyze the overall performance trends across the
organization. The timely submission of performance review results is
essential for HR to provide feedback and support to both team leaders
and team members, ensuring continuous improvement in performance
across the organization.
5.7.2.3 If, during the quarterly performance review, a team member consistently
fails to meet the required standards, their team leader can start a
Performance Improvement Plan (PIP). This plan will outline specific
actions and deadlines for the team member to improve their
performance. The team leader will closely support the team member
throughout this process.

The PIP form must be completed and signed by both the team member
and the team leader. It should clearly state what needs improvement (like
a task, skill, competency, or value), the actions the team member will take

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 to improve, any resources or support needed, and the deadline for
improvement.
5.7.2.4 Any initiated PIPs must be submitted to HR on or before the 10th working
day of the following month of the quarter. This timeline allows HR to
review and provide necessary support to ensure that team members are
given the opportunity to improve their performance.
5.7.3 Year-end Performance Evaluation

5.7.3.1 HR shall issue notice to remind all team leaders and team members of
the Year-end performance evaluation submission.
5.7.3.2 All team leaders shall discuss the yearend performance evaluation with
their team members. The agreed appraisals shall be submitted to the
next higher team leader for approval.
5.7.3.3 HR shall consolidate all ratings for each department and provide copies
to the department heads for their review.
5.7.3.4 HR shall finalize documentation of all approvals and come up with a
summary and submit the same to the Chief Executive Officer.

For common information and guidance.

Endorsed by:

JEMIL PENGSON
HR Head

Approved by:

ENGR. LANCE RAMIUS CHENG

Chief Executive Officer

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