PERFORMANCE MANAGEMENT SYSTEM

PURPOSE
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 erdant Telemetry & !ntenna
Systems Private "imited.
OBJECTIVES
To provide a framewor# for systematic planning of Performance $bjectives 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 ta#e necessary actions to ensure the
achievement of organizational and individual goals.
To define a proper career planning process.
To provide inputs for determining the %ompensation, &ewards & &ecognition.
THE PERFORMANCE MANAGEMENT SYSTEM PROCESS FLOW

Vision, Mission
Values Goals
O!"ani#a$ional
Annual
Business Plan
S%e&i'i&
O!"ani#a$ional
O()e&$i*es
+e'ini$e
In,i*i,ual
O()e&$i*es
Re*ie- o!
Measu!e.en$ o'
/RA
a&0ie*e.en$
Assi"na$ion o'
Final Ra$in"
Ca!ee!
+e*elo%.en$
Re-a!,s
Fun&$ional
O()e&$i*es
/e1 Resul$
A!eas 2/RA3s4
COMPONENTS OF PERFORMANCE MANAGEMENT SYSTEM
'. Performance Planning & $bjective Setting
(. Performance !ssessment
). %areer *evelopment
+. &ewards
PERFORMANCE PLANNING OBJECTIVE SETTING
Performance Planning is an important part of the Performance Management
System as it ma#es the objectives of business and individual performance
clear and simple.
,t also aligns individual goals to organizational objectives at every level in the
$rganizational -ierarchy.
Performance Planning starts with the finalization of business and functional
objectives, which flow from the vision and mission of the organization.
,ndividual objectives and .&!/s are then finalized for the financial year
through consultation and mutual agreement between the appraisee and the
appraiser by '
st
of !pril of the new financial year.
PERFORMANCE ASSESSMENT
Performance !ssessment is done in an objective and scientific manner as e0plained
below at the end of the financial year before )'
st
March.
COMPONENTS OF PERFORMANCE ASSESSMENT FORM
/e1 Resul$ A!eas5 They are the important strategic areas in an employee/s
job profile that needs to be 1uantified and measured so that the organization
can ascertain that the individual performance is directed towards the
achievement of the business objectives. The .&!/s should be simple, specific,
measurable & time bound and the number of .&!/s should not e0ceed five.
Ta!"e$5 ,n this column the target to be attained for each .&! needs to be
captured. 2or e0ample, if one of the .&!/s of a 3unior 4ngineer 5 &2 *esign is
generating a *rawing design6 his target is to generate the design as per the
wor# re1uirement each time he develops a new design.
Measu!e5 The yardstic#7inde0 that would enable the performance to be
measured needs to be captured. Ta#ing the same e0ample above 5 the
measure for assessing whether the 3unior 4ngineer 5 &2 *esign has generated
the design as per the wor# re1uirement is the 89or# Specification *ocument:.
Wei"0$a"e5 4ach .&! needs to be given a weightage depending on its
importance in the individual employee/s job profile. The total weightage of all
.&!/s should amount to ';;<.
Ti.e Line5 The column for Time "ine should depict the accurate time duration
available for achieving the particular .&!. That is, is it to be completed in )
months, = months or by the end of the financial year.
Ta!"e$ A&0ie*e,5 The actual target achieved need to be captured in the
column.
Final S&o!e5 The !ppraiser would calculate the score for every .&! >S&o!e 6
Ta!"e$ A&0ie*e,7Ta!"e$ 8 Wei"0$a"e?. The score for each individual .&!
is totaled to obtain the To$al S&o!e
No$e5 Se&$ion A needs to be filled at the beginning of the !ppraisal %ycle & signed
off by both the 4mployee and his !ppraiser. Se&$ion B needs to be filled at the time
of the Performance !ssessment and once the Total Score is calculated both the
employee and the !ppraiser need to sign off the !ssessment 2orm.
INTEPRETATION OF FINAL SCORE5
The score needs to be interpreted and the final rating needs to be arrived at based
on the rating scale given below@
Final Ra$in" Outstanding
Performer
Excellent
Performer
Good
Performer
Average
Performer
Final S&o!e
100% &
Above
99% - 8% 8!% - "0% #elo$ "0%
METHO+5
The method of filling the Performance !ssessment 2orm is illustrated with an
e0ample of a 3unior 4ngineer 5 &2 *esign who has three .ey &esult !reas in his 3ob
Profile.
Se&$ion A Se&$ion B
Sl9
No
/e1 Resul$ A!eas Ta!"e$
2$4
Measu!e Wei"0$a"e
2-4
Ti.e
Line
Ta!"e$
A&0ie*e,
2$a4
Final S&o!e
2$a7$8-4
'
(
)
Aenerating
*rawing *esign
Proper
documentation of
design approved
for production
Production7Project
Planning
';;<
as per
the
design
specific
ations
';;<
';;<
completi
on on
time
9or#
Specification
*ocument
9hether
documentation is
available for all
the designs
developed
The timeline
provided for
each project
completion
+;<
+;<
(;<
Time
specified
for each
project
Till Mar ;B
Time
specified
for each
project
B;<
BC<
';;<
)=
>B;7';;D+;?
)E
>BC7';;D+;?
(;
>';;7';;D(;?
To$al S&o!e :;
The employee/s total score is :;<. -ence the final rating of the employee as
interpreted from the &ating Scale is E=&ellen$ Pe!'o!.e!.
CAREER +EVELOPMENT
,nputs from the Performance &eview e0ercise can be used for planning the
career development of the individual.
To ensure the growth of an individual, development strategies li#e 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 the ne0t level.
REWAR+S
&ewards can be monetary & non monetary.
Fon Monetary rewards are the awards, recognition that the employee
receives for his performance.
Monetary rewards are the salary increments the employee receives.
The 1uantum of increment an employee gets every year depends on the
rating that he7she has received for his7her performance in the last financial
year.
2or each rating a particular < of increase in the salary is fi0ed after the
Performance !ssessments are completed.
This < of increase is decided based on the mar#et trends that currently e0ist.
The higher the rating the higher percentage of increment the employee
receives.
GUI+ELINES FOR APPRAISAL
4very individual should receive ongoing feedbac# during the year and a formal
annual performance assessment7appraisal.
*uring the assessment sessions the !ppraiser should create an open and
approachable environment in which a twoGway discussion can be made
possible with the 4mployee.
The 4mployee on his part should be willing to give and receive proper
feedbac# during the assessment session.
Performance assessment discussion should cover how the year that went by
was for the 4mployee, what he has achieved, how was it done and what the
way forward is for the 4mployee.
Hoth !ppraiser and the 4mployee should have all the facts and data to
support the 4mployee/s .&! 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 !ppraiser and 4mployee.
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