PERFORMANCE

APPRAISAL
PROCESS

CONTENTS OF PRESENTATION
What is PMS.
Objectives of PMS.
Role of Appraisee, Appraisor & Review Officer
Some Essentials of Appraisor & Appraisee

Meeting.
Performance Evaluation Errors.
Proposed KRA Based PMS for Executive cadre
& Above.
Proposed PMS Process at Staff Cadre.

MEANING OF PMS
PERFORMANCE APPRAISAL IS THE
SYSTEMATIC AND OBJECTIVE PROCESS
OF REVIEWING AN INDIVIDUALS
PERFORMANCE DURING APPRAISAL
PERIOD AND ASSESSING HIS POTENTIAL
FOR FUTURE IMPROVEMENT

PERFORMANCE APPRAISAL
OBJECTIVES
To Integrate Company and Individual

Goals
To Increase awareness of targets, tasks
and responsibilities
To ensure a more objective assessment
of Performance and Potential
To help the employee to overcome his
weakness and improve upon his
strengths.

 To create Sufficient data for :

Training and Development
Job Enlargement and Enrichment
Career and Succession Planning
Compensation Adjustment
Promotion and Transfer
To build an open and Transparent work

culture
To reinforce a climate of achievement
motivation

ROLE OF APPRAISOR
Monitor employee performance throughout
the year
Give continuous feedback on performance
and progress toward objectives
Collect information and outside
perspectives on performance of the
employee (360feedback)
Consider what was achieved and how it
was achieved

ROLE OF APPRAISOR
Prepare for your performance feedback
session
Prepare for objective setting by reviewing
organisational plans current performance
term and beyond
Consult the HR team when you have
questions

ROLE OF APPRAISEE
Conduct a thorough self evaluation
Provide input to supervisor in the
development of individual goals that
contribute to departmental goals and the
Organizational goals.
Discuss concerns and/or questions about
any part of the job or performance review
with supervisor.
Identify and participate in training and
development discussions.

ROLE OF A REVIEW OFFICER IN PMS

To ensure objectivity of PMS
Process.
To review the self assessment of
Appraisee & counter assessment of
Appraisor.
To
review & give his feedback.
To finalise the development plan &
review its progress.

MEETING POINTS BETWEEN

APPRAISOR
& APPRAISEE

BEFORE MEETING.

State purpose of the meeting Clearly.

Communication should be clear and
not ambiguous.
Date, time and place to be decided in
advance.
Sufficient time should be kept
between two appraisal meeting
Plan the points to be discussed.

PREPARATION FOR THE MEETING

Collection of the facts and
necessary data.
Plan the points to be discussed.
Be prepared with inputs for a
constructive appraisal meeting.

LOCATION OF MEETING
WHERE
It should preferably be at a neutral place
with no physical barriers like the
conference room.
WHERE NOT

At the Managers desk.

At the Appraisees desk.

LANGUAGE DURING
MEETING
DO`S

Establish contact
(say hello,
handshake)
Ask open
questions.
Seek to reach an
agreements.
Be more
elaborate in
communication

DON`TS

Dont Invade
Dont be threatening
in giving a critical
feedback
Avoid closed
questions
Avoid reaching
confrontation.

PERFORMANCE EVALUATION ERRORS MADE BY APPRAISER

ERROR

INDICATORS

POSSIBLE CAUSES

Halo

High intercorrelation of items

Uses Knowledge of one

item to rate another

Logical

High intercorrelation of
adjacent items

Rates similar appearing

items the same

Severity

Low ratings of all

ratees

Has high performance

standards; is resistant to
evaluation

Central
tendency

Average ratings of
all ratees

Is resistant to evaluation;
is unable to distinguish
between employees

Recency

No indication of
rating

Bases rating on most

recent behavior

Proximity

High intercorrelation of
adjacent items

Uses knowledge of one

item to rate an adjacent
item

Leniency

High ratings of all

Has low performance

PART I
KRA Based PMS PROCESS
For
Executive Cadre & Above

KEY RESULT AREAS

WHAT IS
KRA
KRA of each organizational member
includes the specific business
responsibilities that have an ultimate
impact on the success or failure of the
enterprise as whole.
In other words, KRAs describe the reason
why the job exists- they are lables and
not long statements of outcome that are
expected.
KRA consists of all the prime

FEATURES OF KRAs
KRAs are broad areas within a job that
change little from year to year
They identify the areas within which a
person is responsible for achieving
results.
Majority of KRAs are found from the job
description simply by asking the
question What are the most
important things that the person

HOW MANY KRAs CAN A PERSON HAVE ?

In general a job may have between Five
to Seven KRAs.
If it is less than Five, probably some
important area
would have been overlooked or if it is
more than seven,
chances are great that what has been
generated
is a task inventory or list of goals.

WHY DO WE HAVE KRAs

KRAs are the basis for setting specific objectives
and are broad statements of the areas within
which the job holder is expected to produce
results.
It is the framework for a person to exist and
operate in the organisation.

FINE TUNING OF KRAs

Review the list to make sure that each KRAs
deals with a discrete and non overlapping part
of the job.
Make sure that no significant responsibility
areas have been overlooked.

HOW TO SET KRAS

OPTION- I BASED ON JOB DESCRIPTION
On the basis of job description, list down all major
& minor activities to be done to perform that job.
From these activities, KRAs can be arrived at.
OPTION II BASED ON ANNUAL PLAN
Each department makes its Annual plan. From
Annual plan, department goals & interventions to
achieve those goals are made. These Goals &
interventions are segregated into department
employees as their KRAs.

OPTION III BASED ON AS IS MAPPING & TO BE

Make As Is mapping regarding where is the
department at the beginning of appraisal
period in terms of performance & system
working. Do To Be process where Department
wants to be at the close of Appraisal period in
terms of Performance & System working.
By Comparing To Be with AS IS, some gap will
emerge. To fill these gaps, identify number of
interventions & convert them into KRAs of
employees.

OPTION- IV BASED ON FOUR WINDOWS OF

BALANCE
SCORE CARD
External/Internal Customer Expectations
SOPs missing/Needs to be added
Cost Reduction Areas
Self Improvement Areas

Some Essentials regarding KRA

Setting
KRA needs to be fulfilling the concept of SMART,
as explained below:SMART Concept:
S Specific
Easy to understand
Specific desired future results
Defines the goal by answering: who, what, when,
why, how
M- Measurable
Describes how each goal will be measured.
Decide measures of Success
Answers the following questions:
- How will I know/show the results has been
achieved?

A - Achievable & Agreed

With all the other commitments within the
department,
is this goal achievable?
Is this goal within the departments control and
influence?
Most important, the goal has to be decided by
mutual consensus and
agreement.
R Realistic & Relevant
Is the goal in alignment with department goals.
Does the goal relate to broader objectives that
your department wishes to
achieve?
Is the time frame reasonable?

T - Time bound
What is the specific time frame to achieve the goal/
(beginning & end date)
Establish a time frame for short & long term goals,
taking into
account other factors such as delivary by others &
coordination
Include interim steps & a plan to monitor progress.

REVIEW PROCESS FOR KRAS

The progress of KRAs to be reviewed on Quarterly
keeping following points in mind:To review the progress toward KRAs.

To Discuss issues/problems, if any, with Appraisee

To provide positive recognition for good progress.

To provide constructive feedback regarding perfor

To give inputs/advise on areas of improvement.
Jointly freeze action plan, to be reviewed in next
monthly review meeting.

HOW KRAS ARE ACHIEVED

For achieving identified KRAs, number of Interventions

to be initiated during appraisal period.
For Example:
KRA is establishing Training process in the Organisations.
Interventions to be undertaken for achieving above
Defining the Training Policy.
Developing SOP for deploying Training process.
Finalisation of Training Budget.
Developing Infrastructure for Training.
Identifying External & Internal Faculty for Trainings Work
Developing Annual Training Calendar on the basis of Trai
needs identified.
Organising of workshops as per Annual Calendar.
Documentation of Training papers.
Maintaining & updating Training MIS & Data.

HOW KRAS ARE MEASURED

KRAs are measured by Key Performance
Indicators i.e. KPI in measured terms. For every
KRA, KPI needs to be defined.
Some Examples:
KRA: To establishing Training process in the
Organisations.
KPI:
To increase training hours per individual per
annumn from present 3 hours to 8 hours.
Training SOP deployed.
Workshops organised as per Annual Calendar.
Faculty developed as per Training Plan.

Some Examples
KRA: To improve market share of our product.
KPI:
Increase in annual sales by 15%.
Increase in existing customers by 20%.
Identification of atleast 2 new markets.
Developing dealership network by 20%.

Some Examples
KRA: To improve Self Management.
KPI:
To identify at least 10 strength & Improvement
areas.
To develop annual plan for working of self
improvement areas.
Taking regular feedback on self from People
cross category as per annual plan.
Sharing on Self with people cross category as
per annual plan..

Management
& Competence
are
KEY MANAGEMENT
& attributes
COMPETENCE
those attributes which facilitate an employee
ATTRIBUTES
in getting the work done smoothly either by
self or through others.
Attributes identified for assessment under
PMS Process for the year 2010 are listed
below:1.Job Competence
2. Target/Result
Orientation
3.Leadership

4. Managerial Skills

5.Initiative Taking

6. Time Management

7.Positive Attitude
Relationship

8. Inter-personnel

WEIGTAGE OF KRAS &

MANAGEMENT
ATTRIBUTES UNDER PMS

PERFORMANCE ASSESSMENT & REVIEW PROCESS

The Flow process for Performance Assessment & Re

is shown as under:
Self Assessment by Appraisee.

Assessment of Appraisee performance by Apprais

Performance review by Review Officer.

Comments/Approval of Approving Authority on

performance assessment & Development plan fina

The progress of KRAs & management attributes to

On Quarterly basis, keeping following points in min

To review the progress toward KRAs & manageme

To Discuss issues/problems, if any, with Appraisee

To provide positive recognition for good progress.

To provide constructive feedback regarding perfor

To give inputs/advise on areas of improvement.

Jointly freeze action plan, to be reviewed in next m

meeting.

RATING SCALE FOR PERFORMANCE ASSESSMENT

The appraisee shall be rated on a five point scale as follows:
EXCEPTIONAL CONTRIBUTOR (EC)
Characterized by high ability which leaves little or nothing to be desired
unusual & challenging assignments are consistently well handled. Clear case of
role model to be adopted by others.
SIGNIFICANTCONTRIBUTOR (SC)
Characterized by consistent better performance than is normally expected.
Needs guidance occasionally. Unusual & challenging assignments are normally
well handled.
MODERATE CONTRIBUTOR (MC)
Characterized by fully adequate ability, completes routine assignments on time
without the need for excess supervision. Meets requirements of competent
employee. With a little initiative could have performed better.

PARTIAL CONTRIBUTOR (PC)

Demonstrated ability does not fully meet the requirements of the Position.
Excessive supervision and direction normally required. Counseling can improve
the Performance.
BELOW EXPECTATONS CONTRIBUTOR (BEC)
Indicates ability which falls clearly below the minimum requirements of the
position. Needs immediate action as he is not likely to meet the requirements of
a competent employee.

Scope and Eligibility

Appraisal Period: Calendar Year i.e. January to
December.
Scope:
All Executives in Executive Cadre & Above.

Eligibility:

All employees who have joined on or before 30 th

September.
Employees who have joined on or after 1st October will
not be appraised.
be eligible for any assessment

PROCESSES FLOW FOR KRAS

Step I
The HoD of the Department has to make Annual
Plan for Next one year for his Department.
Step II
The HoD can take input from Management while
making the annual plan.
Step-III
Get the annual plan approved from Management.
Step- IV
Set the department goals/Interventions to be
achieved during next one year, using approved
annual plan as base.

Step- V
Break up the department goals/interventions as
identified into slabs i.e. for HoD, for Section Head
and for Staff.
Step-VI
Convert these identified goals into KRAs.
Step-VII
Discuss & Finalise Five to Seven KRAs for each
employee of Department.
Step- VIII
Quarterly review of KRAs Progress.

Step- IX
Annual Assessment on KRAs & Management
Attributes.
Step X
Feedback to Appraisee on Past year performance.
Step- IX
Development plan for next year.

APPROVING AUTHORITY

For Executives:

Respective HoD.

For Managers:
Respective HoD & HR Head
(Asst./Dy./Addl./MGR)
For AGM & Above:

Management Committee

PART II
PMS PROCESS
For
STAFF CADRE

PROCESSES FLOW FOR PMS

Step I
The Immediate Supervisor has to identify major job responsibilities
to be accomplished in next one year by appraisee.
Step II
The HoD approve the identified job responsibilities.
Step-III
The immediate supervisor communicate the same to appraisee.
Step- IV
Annual Assessment on identified attributes.
Step V
Feedback to Appraisee on Past year performance.
Step- VI
Development plan for next year.

PERFORMANCE ASSESSMENT & REVIEW PROCESS

The Flow process for Performance Assessment & Re

is shown as under:

Assessment of Appraisee performance by Apprais

Performance review by Review Officer.

Comments/Approval of Approving Authority on

Performance assessment & Development plan final

KEY ATTRIBUTES OF PERFORMANCE

Attributes identified for assessment under
ASSESSMENT
PMS Process for the year 2010 are listed
below:1.Job Knowledge
2. Work Output &
Quality
3.Initiative & Drive

4. Work Attitude

5.Communication Skills
Punctuality &

6. Attendance,
discipline

7.Planning & Organising 8. Inter-personnel

Relationship

RATING SCALE FOR PERFORMANCE ASSESSMENT

The appraisee shall be rated on a five point scale
as follows:

EXCELLENT (E)
Characterized by high ability which leaves little or nothing
to be desired unusual & challenging assignments are
consistently well handled. Clear case of role model to be
adopted by others.
VERY GOOD (VG)
Characterized by consistent better performance than is
normally expected. Needs guidance occasionally. Unusual &
challenging assignments are normally well handled.
GOOD (G)
Characterized by fully adequate ability, completes routine
assignments on time without the need for excess
supervision. Meets requirements of competent employee.
With a little initiative could have performed better.

SATISFACTORY (S)
Demonstrated ability does not fully meet the requirements of the Position.
Excessive supervision and direction normally required. Counseling can improve
the performance.
UNSATISFACTORY (US)
Indicates ability which falls clearly below the minimum requirements of the
position. Needs immediate action as he is not likely to meet the requirements of
a competent employee.

Scope and Eligibility

Appraisal Period: Calendar Year i.e. January to
December.
Scope:
All Staff Cadre.

Eligibility:

All employees who have joined on or before 30 th

September.
Employees who have joined on or after 1st October will
not be appraised.
Employees who have resigned and are serving notice
period will not be eligible for any assessment

FORMS TO BE USED
Annual Appraisal Form for KRA
Annual Appraisal Form
FORM FOR SUPERVISORS.docx for Staff

THANK YOU