COMPANY MANUAL

Policy No. : II - 6.0

Document Title : EMPLOYMENT

Sub- Title : Performance Appraisal System

Effective : May 1, 2013

Policy Objective/Statement:

The Company shall establish and define a credible Performance Appraisal System to
effectively evaluate the contribution of employees towards the attainment of the corporate vision,
mission and objective. It shall likewise aim to:

1.0 Develop the maximum potentials of the employees in the performance of their duties
and official functions, as well as effect better utilization of manpower resources in the
organization.

2.0 Serve as a reference document in the performance and career development planning
and review.

3.0 Serve as a fair and objective basis for all personnel actions like promotions, re-
assignment, merit increase, transfer, etc.

4.0 Serve as input in the awards, incentives, bonuses and training opportunities.

Scope of Policy:

All employees of Artemisplus Express, Inc.

Guidelines:

1.0 Basic Considerations:

1.1 The Performance Appraisal System shall be made an integral part of the
Human Resource Development Program.

1.2 The Performance Appraisal System shall focus on the results and output
rather process.

1.3 The employee’s performance and contribution to the attainment of corporate

goals and department work targets shall be recognized.

1.4 Employees shall be informed of their rights and obligations and shall be given
regular feedback on their work and career progress.

1.5 Appropriate staff development opportunities shall be provided to facilitate the

effective implementation of this program.

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 2.0 Performance Evaluation Classification:

Performance evaluation shall be classified according to the following levels:

2.1 Executive or managerial level

2.2 Outlet Managerial and supervisory level

2.3 Rank and File level (Office and Outlet)

3.0 Frequency and Schedule:

3.1 The performance evaluation for regular employees shall be done every six (6)
months.

3.2 The first cycle shall cover the first semester of the year (January to June) and
the second cycle will cover the second semester of the year (July to
December).

3.2.1 The performance evaluation for the first semester shall be

accomplished in July, while that of the second semester shall be in
January.

3.2.1 A mid-rating review of the employee’s performance will be done every

quarter to assess the employee’s work targets and accomplishments.
Coaching and counseling must be done by the Outlet Manager or
Department Head/Manager or request the assistance of the HR
Department in such exercise, if deemed necessary.

3.3 In case of an employee who was transferred to a new outlet, section or

department for less than three (3) months at the time of the appraisal, he/she
shall be rated/evaluated by his/her former supervisor.

3.4 A contractual employee for a specific period or a probationary employee’s

performance shall be evaluated on or before the end of the employment
contract with the company.

3.5 A project co-terminus employee’s performance shall be similar to the

schedule of a regular employee’s appraisal.

4.0 Responsibilities:

4.1 The Human Resources Department (HRD) shall supervise and monitor the
Performance Appraisal Program in its totality. The HR Department shall
likewise review the performance ratings for inconsistencies in the appraisal
process.

4.2 Outlet Managers and Department Heads/Managers shall ensure that the
Performance Appraisal Program is maintained in their respective outlets and
departments. They shall also be responsible for ensuring that the performance
appraisal forms of the employees reporting to them are accomplished and
submitted to the HR Department not later than five (5) working days from the
last date of the appraisal period.

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 Note: In case of employees with specific contracts and probationary
employees, the accomplished appraisal forms shall be submitted not
later than fifteen (15) days before the expiration of the employment
contract.

5.0 Mechanics of Rating:

5.1 The performance factors and the behavioral indicators to be considered in

the assessment, according to the types of employees, are shown below:

Employee Category Performance Factor Behavioral Indicators

(Weight Given)
Managerial/Supervisory
Job Accomplishment Timeliness
(50 %) Quality of Output
Quantity of Work

Behavioral Dimension Management of Work

(50 %) Management of People
Management of Resources
Management of Linkages
Management of Constraints
Innovativeness
Office-based/Supervisory
Job Accomplishment Timeliness
(50 %) Quality of Output
Quantity of Work

Behavioral Dimension Sense of Responsibility

(50 %) Work Commitment
Honesty and Integrity
Organizational Discipline
Initiative and Innovation
Commitment to Teamwork
Continuous Improvement
Leadership (for Supervisors)
Store/Outlet-based
Technical Skills Knowledge of Work Flow
(35 %) Product Knowledge
Ability to Operate Equipment

Job Accomplishment Timeliness of Task Completion

(35 %) Quality of Output
Service Orientation

Behavioral Dimension Honesty and Integrity

Organizational Discipline
Initiative and Innovation
Customer Relations
Commitment to Work
Leadership (for Supervisors)

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 5.2 Getting the score for the behavioral indicators entails the selection of rating
statement that describes the employee’s actual performance/
accomplishment during the assessment period. The score corresponding to
the statement shall be indicated in the appropriate space in the Performance
Evaluation Rating Form.

5.3 To arrive at the average score for the performance factors, add the score for
the behavioral indicators and divide by the total number of indicators. Then
multiply the resultant number by the weight allotted to the factor to get the
average score.

5.4 Get the over-all score by adding the average scores in the performance
factors.

5.5 The adjectival ratings are defined as follows:

5.5.1 Outstanding/Excellent - represents an extraordinary level of

achievement and commitment in terms of job
accomplishment and behavioral manifestations of
professionalism and excellence. Employees at this
performance level should have demonstrated exceptional job
mastery in all major areas of responsibility.

5.5.2 Very Good - represents a noticeably better than acceptable

standards in performance and achievement of work target.

5.5.3 Satisfactory - indicates that the employee’s performance is

within the expected and acceptable level.

5.5.4 Marginal - represents a below satisfactory level of

performance.

5.5.5 Poor - indicates an unacceptable and inadequate

performance.

6.0 Mechanism of Appeal:

6.1 An employee who expresses dissatisfaction with the rating given him/her may
appeal through the Grievance Machinery. Failure to file an appeal within
fifteen (15) days from the employee’s acknowledgement of the Performance
Appraisal Rating shall be deemed as a waiver of such right.

6.2 The appeal must be in writing indicating the desired performance rating,
justifications and the data supporting the appeal.

7.0 Rewards and Sanctions:

The Performance Appraisal System shall be an input to recognition and reward that
shall be given to high performing employees. It shall also serve as basis to give sanctions
against employees who are performing below the expected acceptable standards.
Recommendations for appropriate personnel action that must be taken to give reward or
sanction against the concerned employee shall be indicated in writing in the Performance
Appraisal Rating Form.

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Procedure:

1.0 Mechanics of the System:

1.1 Planning:

1.1.1 Before the beginning of the year, the Middle Management (Heads and
managers of different departments) will confer with top Management
(President/CEO/General Manager and VP- Operations) to arrive at a
signed Performance Management Contract (PMC). The PMC will serve
as the basis in evaluating the performance of the Department
Heads/Managers, in particular, and the accomplishment of the
departments they manage in general.

1.1.2 The Department Head/Managers will plan a work program, in

consultation with the Supervisors and staff that will realize the
commitments made in the PMC.

1.1.3 Considering the expertise, duties and responsibilities of the employees,

the Department Head/Manager and the employees will plan the
individual outputs and results that must be delivered within a given time
frame.

1.2 Mid-Year Review or Coaching:

This process involves a discussion between the Supervisor and the employee on
a quarterly basis, or whenever necessary.

1.2.1 The employee reviews the progress of his/her work targets.

1.2.2 The Supervisor reinforces the progress on work targets, accomplished by

affirming the employee’s efforts and the specific achievements.

1.2.3 The Supervisor and the employee discuss the following:

- Unaccomplished targets and standards; identification of the causes

and hindering factors.
- Problems encountered and agreement on appropriate actions that
must be taken.

1.2.4 The Supervisor and employee agree to adjust work targets, goals and
standards when the situation calls for it.

1.3 Performance Evaluation Rating:

1.3.1 For Office and Store-based Supervisors & R & F employees:

The Supervisor and the employee being rated will conduct a highly
inter-active performance appraisal discussion and feedback mechanism in
order to foster better working relationship and teamwork in the work place.

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 Supervisor:

- Make the employee feel at ease and establish rapport by getting the
employee’s views of his/her performance.

- Present objectively his/her views on the employee’s strengths and

weaknesses that needed to be improved and developed. Be sure to
be clear and concise.

- Discuss the areas of disagreements and agreements. Do not argue

with the employee being rated. Resolve the differences by making
sure that the employee understands that his/her performance ratings
are actually according to the norms of objective evaluation.

- Affirm the employee on his/her strengths and mentor him/her on the

developmental areas.

- Do not promise anything to the employee in terms of salary/merit

increase, promotion, transfer, regularization of employment, etc, The
performance appraisal is only an aid to improve the productivity of
the unit and help in the development of the employee’s performance.

- Summarize the employee’s performance for the rating period.

Prejudice or pity must not influence the employee’s ratings nor
his/her length of service, age, educational attainment, previous rating
and other factors which have no direct bearing on the employee’s
performance. Be impartial and do not discriminate.

- Write down the assessment on the appropriate Performance

Appraisal Rating Form.

Employee:

- Summarize achievements and failures in the entire rating period.

- Offer suggestions on how to improve performance as well as

personal abilities and skills which are not being used in the present
job.

- Give suggestions on how he/she can be helped and supported by

the Supervisor and Management to be more productive and effective
in the performance of assigned tasks.

- Indicate any comments or suggestions in his/her job assignment

and/or other work-related activities.

1.3.2 For Executive or Managerial Employees:

1.3.2.1 The Executive or Managerial employee will be rated by persons

to whom they provide services, either directly or indirectly, and
who are considered as their customers. These persons could be
any of the following:
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 - Clients, actual/employee customers, suppliers, the Client Company’s
Food/Canteen Committee members, Safety Managers, HR
Managers and Staff, Bank Executives, etc, (External Customers)

- Other employees (managers, supervisors, staff, rank and file) of

Heavenly Urban Chef with whom the Executive or Managerial
employee works with, coordinates with or relates to while in the
conduct of his/her job. (Internal Customers).

1.3.2.2 The performance evaluation rating of Executives or managers

will be done through a confidential Leadership Feedback
process of asking the Direct (External) and Indirect (Internal)
customers to evaluate the employees performance based on a
checklist of behavior and attitudes which shall be furnished by
the company. While the Rater knows the identity of the
employee to be rated, the employee is not aware as to who will
evaluate his performance.

- The President/CEO/General Manager or VP-Operations will select at

least twelve (12) Direct and Indirect Customers (4 each), who will
evaluate the performance of the Executive or Managerial employee.

- The Leadership Feedback-Customer Form (LF-CF) (please see

Annex- ) will be furnished to the pre-selected customer/rater.

- The customer/rater will select the option that best describes the
Executive’s/Manager’s performance and behavior as observed and
perceived by him/her and place the corresponding mark therein.

- The LF-CF will be returned to the company c/o the HR Department

enclosed in a sealed envelope provided to the customer-rater for
purposes of confidentiality.

- The direct superior of the employee being rate, either the

President/CEO/General Manager or VP-Operations or the concerned
Department Head/manager (if he/she is not the employee being
rated) will review the ratings and take note of the areas of strengths
and weaknesses.

- The direct superior will conduct an appraisal interview with the

employee being rated (ratee) and discus the results of the
customer’s evaluation of his/her performance.

- The direct superior will evaluate the final rating of the ratee’s
performance based on the bilateral discussion of the customer’s
rating and the superior’s own rating of the rate.

- Both the superior and the employee will sign the LF-CF to
acknowledge that a dialogue/discussion of the Performance
Evaluation Rating was conducted.

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 - In case
Head/Manager who reports directly to the President/CEO/General
Manager, the latter shall conduct

Annexes:

1.0 Employee Performance Evaluation Rating Form (Rank & File Employees)

2.0 Employees Performance Evaluation Rating Form (Supervisors and Managers)

3.0 Leadership Feedback – Customer Form (LF-CF)

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Prepared by: Approved by:

Analyn Salazar Ricardo S. Abelardo

HR Manager General Manager

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