PMS 2013-2014

Performance Management System India

PMS & Its Importance

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities.

Organizations are using the term “performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context.

PMS Process @ Olam

PMS form

KRA -setting

Mid Year Review

- Self assessment on performance (Instead

of self rating)

Issue of Increment/Incenti

ve Letters

Org/ Product Goals ( whr applicable)

Ongoing feedback and coaching

- Rating and appraisal dialogue by Appraiser (Feedback on performance and

career communicated)

- Review by Product /

Functional Head

Normalization by HRC & approval

by Country Head

Communication of final rating to Appraiser by HR

Communication of final rating to the employees by

Appraiser

Compilation of comp data and

communication to payroll

Role Based goals

Olam PMS Form

The PMS form is designed for all to do a self-assessment on the KRAs, highlight key accomplishments, misses, constraints, identify training needs and capture the strengths and aspiration of the employee.

Please refer to the word attachment to download this form.

KRA Setting

• KRA’s = Key Result Areas. 5-7 key deliverables that the employee would need to focus on.

• KRA setting is done at the beginning of the financial year. While setting KRAs, apply the SMART Principle S- Specific , M-Measurable, A- Achievable , R- Realistic, T-Time Bound.

 • While filling the form, against each KRA, you should highlight your actual

performance in terms of achievement, timelines met, costs saved . Please note that you are not required to provide any self rating against the KRAs.

Self Assessment

• This is a unique opportunity for you to showcase all your achievements during the year which may or may not have been highlighted earlier.

• Details of the work done, approach taken, extra effort for achieving targets, technical

competencies in handling assignments, stretch at work, special achievements and its impact on the organization/ department and team goals, extra initiatives taken by you, challenging deadlines met – all aspects which have led to the success of your work can be discussed in this section.

• Please note the Self appraisal document should be used by both Appraiser and the employee during the appraisal dialogue.

Rating by Appraiser

Assessment of Appraisers is based on delivery of KRAs, overall performance on the job and behavior displayed.

What Appraiser Look for:

I.Progress toward individual and team

deliverables

II.Quantifiable achievements/results …

misses?

III.Behaviors, skills, competencies that

have improved and/or are having a

positive impact … and/or … should /

could be improve

Where Appraiser Look…..

I. Direct observation

II. Your self assessment

III. Feedback from dotted line

Appraiser One-Over-One Input —

Management Input

IV.Recognition received

Appraisal Dialogue

Formal meeting between you and your Appraiser

1. To discuss on your own performance highlighting the key accomplishments and challenges faced, if any.

1. To ensure your Appraiser have a clear understanding of your point of view and achievements

Dialogue focused on • Accomplishments highlighted in the self assessment vis-à-vis the metrics • Feedback and recognition received from others including internal and external customers• Initiatives taken during the course of the year• Any other points that you may want to highlight• Appraiser share overall Feedback on performance. • Discuss strengths, areas of improvement and career aspirations the employee • Discuss future goals and responsibilities that will employee is likely to handle.

Normalization

Normalizations is defined as :

Differentiation of performance based on - performance on the job - accomplishments - differences in contributions - behaviors displayedNormalization is done based on the Overall Rating of the employee. It is all about valuing the relative contribution

Benefits of Normalization - brings uniformity and objectivity to the process - Multiple inputs and multiple reviews minimizes subjectivity - helps in identifying high performers in any department

Normalization

Steps in Normalization

Step 1 : Review by Product /Functional Head Step 2 : Review by HRC Step 3 : Approval by Country Head Step 4 : The final rating after normalized and approved communicated to the employee by the immediate Appraiser

HRC to moderate the discussions

Note : The product wise bell curve would need to be adhered to while normalizing ratings

Way Forward

• Please down load the form, complete the self assessment , identify the training needs, fill in the strengths and improvement area and submit it to your Appraiser.

• Based on the self assessment, the concerned employee has a discussion with his Appraiser for his/her performance.

• Based on the performance and behavior displayed, the Appraiser would

rate the employee and submit the form for normalization..

Timelines……

S.N Actions Completion Dates

Responsibility

1 Communication email for appraisals 10th June 14 HR

2 Self Assessment by AppraiseAppraisee has to fill all details mentioned in PMS form .

20th June 14 Appraisee

3 Performance Review by Appraiser1. Appraiser will complete one on one discussion with all Appraise .2. Review of Appraisal outcome, Final ratings ,Increment /Incentive

recommendation with BH.3. BH to submit appraisal forms to HR along with PMS sheet.

9th July 14 Appraiser / Business Heads

4 Data Consolidation and Validation for HRC discussion 10th July 14 HR

5 HRC discussion with all respective business heads + Normalization

11th – 16th July 14 HRC

6 Final Approval by Country Head 21st July 14 CH

7 Issuance of Increment letters. 30th July 14 HR

8 Payouts July payroll HR

FAQs

Q) Is the process similar in all departments, I feel rating is done leniently in some

departments compared to my department, so we end up losing all the time? 

I. The process is the same across the entire company. Normalization at different levels addresses the above issue. For eg the product/function Head would look at the ratings of all staff in the dept, normalized by HRC and approved by Country Head

Q) I am never aware of the ratings I am given, can I expect it this time?

I. Overall Ratings are communicated to all the employees after completion of the normalized process. You may ask for the same from your Appraiser.

Q) On what basis is promotions activated, I mean is it based on legacy/ no of years of experience or there is some separate assessment that is being done for people getting promotions.

I. Promotions depend on consistent good performance, potential of the individual (behaviors, competencies displayed) and availability of a role in the higher grade.

Q) My Appraiser has told me a certain rating when we met during appraisals, however

there was a mismatch between what he said and what was translated as my i, can you explain me the process what happens after my Appraiser has given me the rating. I am very unclear about that.

I. The overall ratings are assigned by Appraisers based on KRA achievement, overall performance on the job and behaviors displayed. This rating undergoes different levels of normalization until it is approved and finalized by the HRC & Country Head. The final ratings are communicated after the normalization and that is what that gets translated into the incentive and increments.

Q) Why are we making things complicated by introducing self assessment and all in the Olam Appraisal form?

I. Self Assessment is an opportunity for you to highlight your accomplishments, hits and misses and actions taken for self development. It is a good preparatory ground for the appraisal discussion and is also an input for your Appraiser while making the appraisal decision.

FAQs

Q) I think that the rating given to me is subjective. How does the process take care of

that ? I. Appraiser rates the employee based on multiple data points on performance and

behavior. The same undergoes multiple reviews with the Product Head, HRC and Country Head before the final rating is decided.

Q) If I do not agree to the rating that is allotted to me, who do I appeal to and how?I. You may escalate the same to your one over one Appraiser and to your HR Appraiser

Q) What happens if I am on leave and I am not able to complete the appraisal on time according to the schedule you are showing? 

I. The schedule and timelines needs to be adhered to ensure completion of appraisals and comp payouts on time. You would need to complete the same prior to proceeding on planned leave.

FAQs

Q) What happens to all the work I have done which is not a part of my KRAs, however they are very important. How do I highlight that?

A) The Self Assessment column is meant to highlight the same. The overall performance on the job ( apart from KRA) is taken into account while arriving at the final overall rating

Q) What happens if my Appraiser gets changed during the course of the year or I am transferred to a new team. Who takes ownership of the ratings ?

A) The ratings are always owned by the current Appraiser. In case of a change in Appraiser, the feedback is taken from the previous Appraiser for the concerned period.

Q) Who do I contact in case of queries?

A) Please feel free to get in touch with your immediate Appraiser or with Roshan Tamak, Amit Pant, Krishanu Chakravarty, Abhimanyu and Avnit .

FAQs

All the Best….

Thank you