AboutLeo Lingham Expertise In Hiring Employees, I can cover subjects like job analysis,
recruitment, selection, induction, interviews, performance analysis,
performance reviews, performance management, performance auditing.
Experience 18 years of working management experience covering business planning,
business development, marketing, strategic planning, management
service, personnel administration.
PLUS
24 years of management consulting which includes business planning,
strategic planning, marketing, product management, organization
development, training, business coaching.
I need your help in Performance Management Area. At the moment, my company is in the progress of reviewing our current Performance Management System, in which we feel that there should be a performance criteria to justify whether one's performance result is categorized as successful or not. Therefore, I'd like to ask you is there any example of performance criteria, combining quantitative as well as qualitative result. In addition, for your information, in my company, performance appraisal point will be used to calculate yearly bonus/incentive for the employees. Hence, we need a very objective tool in order to determine the correct result.
Thank You n Regards,
Neila
Answer NEILA,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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TO DEVELOP PERFORMANCE STANDARDS
-take the job description.
-develop the KRAs / TAKE 5 KRAs
-set the kpi [ KEY PERFORMANCE INDICATORS]
THIS IS BASED ON
-company objectives/ department objectives
THIS KPI BECOMES THE STANDARD FOR ASSESSMENT.
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SEE THE EXAMPLE FOR HR MANAGER.
HR MANAGER'S JOB DESCRIPTION-KRA-KPI-COMPETENCY
HR Manager’ The main purpose of the role as HR Manager is to:
· To fulfil all HR duties within the organization such as Job Descriptions, Contract Management, appraisal management, HR file management;
· To finalize HR set up strategy;
· To handle the complete Recruitment exercise;
· To ensure legal and regulatory compliance for all HR related matters;
· To carry out all HR duties required by the Labour Law including but not limited to issuing all policies, keeping HR records and reporting vacancies to the authorities;
· To liaise and follow up with relevant authorities directly or through our PRO for company registration, visa applications, labour contracts, labour cards, HR related reporting;
· To identify candidates through multiple channels including but not limited to, existing private pool of CV’s, internet, website screening, existing business club and social networking memberships;
· To identify and be a single point of contact with recruitment agencies on a national and international level;
· To screen, feedback, track and interview, welcome and introduce job applicants and new employees;
· To create document templates for the entire organization;
· To prepare comprehensive employee handbook;
· To prepare Training manuals for the entire organization (exception to specific departments or trainings will apply)
· To prepare and carry out trainings for customer care operations, if required by the customer care department;
· To assist in administrative activities of the organization as required;
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CORE KRAs of HR MANAGER
7.BUILDING CAPABILITIES AND ORGANIZATION LEARNING
8.EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
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FOR THIS EXERCISE, WE HAVE TAKEN 6 KRAs
THE KRAs for HR [ weightage of importance %]
1.RECRUITMENT/ SELECTION [ 20%]
2.WORKFORCE PLANNING/ DIVERSITY [ 20%]
3.PERFORMANCE MANAGEMENT [ 25%]
4.REWARD MANAGEMENT [20%]
5.WORKPLACE MANAGEMENT AND RELATIONS [ 10%]
6.BUILDING CAPABILITIES AND ORGANIZATION LEARNING [ 5%]
TOTAL [ 100% ]
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OUT OF THE 6 KRAs, only one KRA is large
and hence broken into 2 KPAs[key performance areas ]
KRA =RECRUITMENT/ SELECTION.
KPA 1 = RECRUITMENT
KPA 2 =SELECTION
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TO SET UP THE KPi FOR EACH KRA,
-you must review the corporate strategy, which is the
foundation stone of the KPi for all departments.
AGAIN AS AN EXAMPLE, IF THE
CORPORATE OBJECTIVE / STRATEGY, SAY IS
-improve the company competitive positioning and productivity
by 10%.
THEN THE
HR DEPARTMENT'S OBJECTIVE IS
-Achieve high productivity level in all activities [ say by 10%]
WHICH MEANS
KRA 1 -RECRUITMENT/ SELECTION
[KPI= fix the average time taken per employee 2 months MAXIMUM]
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KRA 2 - WORKFORCE PLANNING/ DIVERSITY
ABSENTEEISM [ KPI =maintain absent rate at 5%]
TURNOVER [ KPI = control turnover rate at 7%]
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KRA 3- PERFORMANCE MANAGEMENT
PERFORMANCE APPRAISALS [KPI = all staff to be appraised at least once annually]
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KRA 4 - REWARD MANAGEMENT
MARKET ORIENTED SALARY STRUCTURING [ KPI = total compensation to sales 12%]
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KRA 5 - WORKPLACE MANAGEMENT AND RELATIONS
JOB EVALUATIONS [ KPI = 600 lower staff , below grade 4 to be evaluated]
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KRA 6 - BUILDING CAPABILITIES AND ORGANIZATION LEARNING
TRAINING [ KPI = average training hours per employee annually= 3 days or 24 hours]
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THIS IS , ROUGHLY, HOW HR DEPARTMENTS
KRAs / KPAs / KPIs ARE SET , MONITORED AND
EVALUATED
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PERFORMANCE MANAGEMENT SYSTEM
THE PURPOSE OF THIS POLICY IS TO
-institutionalize the Performance Management System by developing an integrated process of objective setting, assessment and evaluation that will support individual employee, departmental & organizational growth and help create a performance driven culture.
APPLICABILITY
This policy is applicable to all the employees of Verdant Telemetry & Antenna Systems Private Limited.
OBJECTIVES OF THE POLICY
To provide a framework for systematic planning of Performance Objectives at the beginning of the year.
To ensure that individual objectives are aligned to the organizations goals.
To ensure an objective and scientific evaluation of employee performance.
To identify gaps in performance and take necessary actions to ensure the achievement of organizational and individual goals.
To define a proper career planning process.
To provide inputs for determining the Compensation, Rewards & Recognition.
THE PERFORMANCE MANAGEMENT SYSTEM PROCESS FLOW
Career Development & Rewards
Vision, Mission Values & Goals
Assignation of Final Rating
Organizational Annual Business Plan
Review or Measurement of
KRA achievement
Specific Organizational Objectives
Key Result Areas (KRA’s)
Definite Individual Objectives
AND Functional Objectives
COMPONENTS OF PERFORMANCE MANAGEMENT SYSTEM
1. Performance Planning & Objective Setting
2. Performance Assessment
3. Career Development
4. Rewards
PERFORMANCE PLANNING & OBJECTIVE SETTING
Performance Planning is an important part of the Performance Management System as it makes the objectives of business and individual performance clear and simple.
It also aligns individual goals to organizational objectives at every level in the Organizational Hierarchy.
Performance Planning starts with the finalization of business and functional objectives, which flow from the vision and mission of the organization.
Individual objectives and KRA’s are then finalized for the financial year through consultation and mutual agreement between the appraisee and the appraiser by 1st of April of the new financial year.
PERFORMANCE ASSESSMENT
Performance Assessment is done in an objective and scientific manner as explained IN SUCCEEDING PARAGRAPHS.
THIS ASSESSMENT IS DONE at the end of the financial year before .................
COMPONENTS OF PERFORMANCE ASSESSMENT FORM
Key Result Areas: THESE are the important strategic areas in an employee’s job profile that needs to be quantified and measured so that the organization can ascertain that the individual performance is directed towards the achievement of the business objectives. The KRA’s should be specific, measurable, ACHIEVABLE, REALISTIC & time bound and the number of KRA’s should not exceed five AND SHOULD NOT BE BELOW 3.
Target: In this column the target to be attained for each KRA needs to be captured. For example, if one of the KRA’s of a Junior Engineer – RF Design is generating a Drawing design; his target is to generate the design as per the work requirement each time he develops a new design.
Measure: The yardstick/index that would enable the performance to be measured needs to be captured. Taking the same example above – the measure for assessing whether the Junior Engineer – RF Design has generated the design as per the work requirement is the “Work Specification Document”.
Weightage: Each KRA needs to be given a weightage depending on its importance in the individual employee’s job profile. The total weightage of all KRA’s should amount to 100%.
Time Line: The column for Time Line should depict the accurate time duration available for achieving the particular KRA. That is, is it to be completed in 3 months, 6 months or by the end of the financial year.
Target Achieved: The actual target achieved need to be captured in the column.
Final Score: The Appraiser would calculate the score for every KRA (Score = Target Achieved/Target * Weightage). The score for each individual KRA is totaled to obtain the Total Score
Note: Section A needs to be filled at the beginning of the Appraisal Cycle & signed off by both the Employee and his Appraiser. Section B needs to be filled at the time of the Performance Assessment and once the Total Score is calculated both the employee and the Appraiser need to sign off the Assessment Form.
INTEPRETATION OF FINAL SCORE:
The score needs to be interpreted and the final rating needs to be arrived at based on the rating scale given below:
Final Rating Outstanding Performer Excellent
Performer Good
Performer Average
Performer
Final Score 100% & Above
99% - 85%
84% - 70%
Below 70%
METHOD:
The method of filling the Performance Assessment Form is illustrated with an example of a Junior Engineer – RF Design who has three Key Result Areas in his Job Profile.
Section A Section B
Sl. No Key Result Areas Target (t) Measure Weightage (w) Time Line Target Achieved (ta) Final Score
(ta/t*w)
1
2
3 Generating Drawing Design
Proper documentation of design approved for production
Production/Project
Planning 100% as per the design specifications
100%
100% completion on time Work Specification
Document
Whether documentation is available for all the designs developed
The timeline provided for each project
completion 40%
40%
20% Time specified
for each project
Till Mar 09
Time specified for each project 90%
95%
100% 36
(90/100*40)
38
(95/100*40)
20
(100/100*20)
Total Score 94
The employee’s total score is 94%. Hence the final rating of the employee as interpreted from the Rating Scale is Excellent Performer.
CAREER DEVELOPMENT
Inputs from the Performance Review exercise can be used for planning the career development of the individual.
To ensure the growth of an individual, development strategies like training, coaching, mentoring, job rotation & job enlargement may be deployed.
To achieve career enhancement, areas for development needs to be identified with focus on the current as well as future job responsibilities of the employee.
Promotions will be based on the performance rating and the potential for moving into to the next level.
REWARDS
Rewards can be monetary & NON-MONETARY
NON-MONETARY rewards are awards, recognition that the employee receives for his/her performance.
Monetary rewards are the salary increments the employee receives.
The quantum of increment an employee gets every year depends on the rating that he/she has received for his/her performance in the last financial year.
For each rating, a particular % of increase in the salary is fixed after the Performance APPRAISAL IS completed.
This % of increase is decided based on the market trends prevail at that time.
The higher the rating the higher percentage of increment the employee receives.
GUIDELINES FOR APPRAISAL
Every individual should receive ongoing feedback during the year and a formal annual performance assessment/appraisal.
During the assessment sessions, the Appraiser should create an open and approachable environment in which a two-way discussion can be made possible with the Employee.
The Employee on his part should be willing to give and receive proper feedback during the assessment session.
Performance assessment discussion should cover how the year that went by was for the Employee, what he/she has achieved, how was it done and what the way forward is for the Employee.
Both Appraiser and the Employee should have all the facts and data to support the Employee’s KRA performance achievements ready with them during the appraisal discussions so that any ambiguity in the target achievement can be cleared immediately and the final score can be calculated to the satisfaction of the Appraiser and the Employee.
