Performance management

Performance Appraisal Procedure

PERFORMANCE APPRAISAL PROCESS / PROCEDURE

I / PURPOSE OF PROCEDURE:

• Provide an opportunity for the manager and his/her supervisor to set mutual objectives.
• Provide a fair and effective means for making personnel decisions.
• Recognize the importance of the manager’s contribution to institutional success.
• Provide a forum for open discussion of the manager’s individual strengths and for the identification of areas where improvement is needed.
• Improve the performance of the manager and, consequently, of the unit administered.
• Enhance the credibility of the management process, including the process by which decisions are made, in the eyes of those affected by the process.

II / SCOPE OF PROCEDURE:

• Apply for the evaluation of the entire company.

III / DEFINITIONS:

• No.

IV / CONTENTS OF PROCEDURE:

1. Identify performance criteria:

• The number of appraisal criteria for each position is from 3 – 10 criteria.
• The standards set should be clear, easily understandable and in measurable terms
• The appraisal criteria can be changed but must be the authority for approval and must be implemented for the relevant level before applying.
• HR department and managers/ supervisor will set up weight of each criteria and must be approved directors.

2. Communicating performance criteria:

• HR department should inform this procedure to all level of management and employees.
• The employees should be informed and the standards should be clearly explained in order to help them understanding their roles and to know what exactly is expected from them.
• Performance criteria should also be communicated to the appraisers or the evaluators and if required.

3. Measuring performance

Prepare.

HR dept should prepare all materials, notes agreed tasks and records of performance, achievements, incidents, reports etc – anything pertaining to performance and achievement.

Inform the appraisee:

• To ensure the appraisee is informed of a suitable time and place and clarify purpose and type of appraisal.
• Give the appraisee the chance to assemble data and relevant performance and achievement records and materials.

Review and measure

HR dept and managers / supervisors review the activities, tasks, objectives and achievements one by one, keeping to distinct separate items one by one.

Agree an action plan

• An overall plan should be agreed with the appraisee, which should take account of the job responsibilities and review strengths and weaknesses.
• The plan can be staged if necessary with short, medium and long term aspects, but importantly it must be agreed and realistic.

4. Comparing with desired criteria

• The actual performance is compared with the desired or performance criteria.
• The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance.

5. Discussing results

The result of the appraisal should be communicated and discussed with the employees.

• The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance.
• The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.
• The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus.

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Performance Appraisal Interview

Performance appraisal interview

1. What is performance appraisal interview

Performance appraisal interview is an interview that conduct between HR dept/manager and employee per year/6 months, 3 months and
The employee gets useful feedback information about how effectively and efficiently he is able to discharge the assigned duties. It also gives the opportunity to employee to explain his views about the ratings, standards, rating methods, internal and external causes for low level of performance.

2. Purpose of performance appraisal interview

• To provide an opportunity for employees to express themselves on performance-related issues.
• To help employees do a better job by clarifying what is expected of them.
• To let employees know where they stand.
• To strengthen the superior-subordinate working relationship by developing a mutual agreement of goals.
• To plan opportunities for development and growth.

3. Forms, checklist of performance appraisal interview

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Sales KRA

Sales KRA include components as follows (can apply for KPIs management):

1. Budget preparation / sales expenditure.

2. New Business Acquisition

3. Net sales

4. Gross Contribution

5. Key Account Management

6. Territory Management

7. Customer Relationship Management

8. Sales forecasting. Market research.

9. Building client relationship

10. Consultative Selling

11. Agency Relations.

12. Product Management

13. Sales Planning

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Marketing KRA

Marketing KRAs include KRAs (can apply for KPIs management):

1. Market research

2. Marketing materials

3. Media relations

4. Sales support

5. Agency relations

6. Advertising

7. Pricing

8. Field support

8. Promotional strategy.

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Quality KRA

Quality KRAs include KRAs (can apply for KPIs management)

1. Develop and implement quality management strategy and plans.

2. Validation of process, instruments, methods, etc.

3. Quality assurance for the projects and the manufacturing set up.

4. Evaluation of new suppliers and vendors.

5. Minimization of rejection & rework.

6. Customer’s acceptance include: establish quality standards & implementing quality control requirements of the customers and handle complaint.

7. Standardization for goods and work inspection.

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Manufacturing KRA

Manufacturing KRAs include KRAs (can apply for KPIs management):

1. Customer Satisfaction

2. Good working conditions

3. Product development.

4. Preventive maintenance

5. Delivery management:

• Minimize downtime and
• Meet annual production target as per expected cycle time.

6. Resource Utilization

• Maximizing quality of product, efficiency of production and maximize production rates.
• Compliance of corporate policy norms.
• Maximize plant efficiency through teamwork and innovation

7. Operational costs.

• Minimize the scarp level/wastage reduction.
• Control overhead expenditure.
• Stock Control.
• Reduction in operating costs.
• Minimize the inventory levels.

8. Implementation of quality control programs

• Apply newer management techniques such as ISO, TQM, Six Sigma, etc.
• Application and acceptance of new technology.
• Shop floor improvements.

9. Productivity: Improvement of process.

10. Record Keeping.

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HR KRA

Human resources KRAs include KRAs (can apply for KPIs management):

1. Recruitment & Selection

• Reduce Average time taken to fill vacancies
• Reduce Average cost per recruitment
• Finalize selection in 5 weeks for each individual position
• Workplace accidents
• Reduce workplace accidents

2. Building capabilities and organizing learning

• Training
• All workforces below middle management should receive a minimum of 4 days training.
• Maximize induction training. Maximize training workshops
• Employees Development
• Training needs analysis & Competencies development.

3. Performance Management

• Performance Appraisal
• Managing Employees through KRAs
• Achieve 100% performance appraisals against total employees.

4. Monitoring employee deployment

5. Compensation and benefits.

6. Employee Relations

7. Statutory Compliance

8. Reward Management

9. Effective HR management systems, support & monitoring

10. Workplace Management

• Reduction in absenteeism per employees
• Increase in employee satisfaction
• Talent retention and turnover ratio.
• Reduce the labor turnover
• Benchmark total HR costs externally.

11. Safety and Health Workplace

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Finance KRA

Finance and Accounting KRAs include KRAs (can apply for KPIs management)

1. Cost control

2. Internal audit

3. Regulatory reporting

4. Credit control

5. Financial records

6. Payroll

7. Cash flow forecasting

8. Budgeting

9. Costing

10. Capital expenditure

11. Financial analysis

12. Credit referencing

13. Management information

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Administration KRA

Administration KRA

1. Scheduling

2. Project Support

3. Safety & Health Management

4. Vehicle Management

5. Visitor Protocol

6. Records Management

7. Filing

8. Administrative Support.

9. Internal Customer relations.

10. Equipment maintenance

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Research Development KRA

Research development KRAs include KRAs (can apply for KPIs management)

1. Plan and estimate development activities. Hold reviews to validate designs & analysis.

2. Working out on budget (manpower and machineries required for department).

3. Cost analysis.

4. Minimize purchasing costs.

5. New Product development & Testing.

6. Value engineering & innovative solutions

7. Analysis of customer requirements.

8. Coordinate with the factory and suppliers for product development.

9. Preparation of SOP’s. Authorize all documents for development of new product. Preparation of technical documentation and resolve product problems.

10. Define specifications of all the instruments & research materials for conducting the experiments.

11. Evaluate competitors offerings technically & commercially.

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Posted by Hrformats - July 12, 2011 at 9:06 AM

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