SETTING PERFORMANCE STANDARDS AND EXPECTATION

All the companies have different standard for performance appraisal. In PEL, Performance Standards are set on the basis of numerical rating form e.g.

4 = Outstanding

3 = Very Good

2 = Good

1 = Need Improvement

Perromance reports writing include all competencies of the employee mentioned below are filled by the Reporting Officer of the employee and forwarded to Manager (Performance Management and Development) in HR Department.

1. Leading & Developing - Collaboration

Executives Work or act jointly with others and establish a high level of motivation commitment and productivity among them.

Managers

Work or act jointly with others and provide supportive environment by securing necessary resources and removing blocks to effective working.

Helps individuals think through issues for themselves.

2. Change Management Executives

Implementation of change initiatives. Supports innovation and creativity and able to face challenges. Remains flexible to meet constantly changing and sometimes opposing demands.

Managers Plans and implements change initiatives. Supports innovation and creativity by encouraging staff to accept and resolve challenges. Remains flexible to meet constantly changing and sometimes opposing demands.

3. Work Coordination

Executives Follows instructions through a standard work process; performs routine tasks; checks work for accuracy before completion of tasks

4. Delegation

subordinates and empowers them to perform. Manages his own annual leaves (enjoys time out).

Managers

Able to assign responsibilities according to the capabilities of individual subordinates and empowers them to perform. Manages his own annual leaves (enjoys time out). Encourages/organizes leave plan for his/her subordinates and department.

5. Team work

Executives Involve others in own area and ideas. Keeps others informed. Utilizes team member's skills. Helping the team members for enhancing their skills.

Managers Involve others in own area and ideas. Keeps others informed. Utilizes team member's skills. Helping the team members for enhancing their skills.

6. Strategic Thinking

Executives Give the suggestion for strategies.

Managers Anticipates needs, forecast conditions and plans keeping the overall business strategy importance in mind.

7. Planning & Organizing

Executives Plans ahead and demonstrates good organizing skills.

Managers Plans ahead and demonstrates good organizing skills.

8. Communication

Executives Able to clearly communicate with others verbally and in written form. Good in developing the relation with others.

Managers Able to clearly communicate with others verbally and in written form. Good in developing the relation with others.

9. Negotiation

Executives Exchange views and proposals with an eye to reach agreement by sifting possibilities, proposals and pros & cons.

Managers Exchange views and proposals with an eye to reach agreement by sifting possibilities, proposals and pros & cons.

10. Initiative & Efforts

Executives Able to come up with ideas to improve business and work practices where opportunity arises.

11. Self Learning

Executives Manages self to learn new things at work place and away from it.

Managers Manages self to learn new things at work place and away from it.

12. Creating Learning opportunities

Executives Evaluate experience of self / others and create new learning opportunities and learn from them.

Managers Evaluate experience of self / others and create new learning opportunities and learn from them.

13. Problem Solving & decision making

Executives Decisive action within an accepted time frame, effectively choosing between alternatives, decision well under severe pressure.

Managers Decisive action within an accepted time frame, effectively choosing between alternatives, decision well under severe pressure.

14. Health Consciousness

Executives Anticipates needs, forecast conditions, plans and thinks logically.

Managers Takes responsibility in moving the company to wards its vision 16. Quality

Executives Provides high quality services, processes, programs & products while consistently seeking to improve outcomes and enhance service.

Managers Provides high quality services, processes, programs & products while consistently seeking to improve outcomes and enhance service.

17. Empathy

Executives Demonstrates genuine concern for others and respects and values people.

Managers

Demonstrates genuine concern for others and expends considerable effort to understand the real needs, concerns and feelings of others and assist them without expectations of rewards.

18. Leave Management

Executives Encourages work-life balance by organizing leave plan for himself / his subordinates and department.

Managers Encourages work-life balance by organizing leave plan for himself / his subordinates and department.

Employee Strength and development Needs

Reporting officer will also recommend for employee strength and development and will forward his request to HR department then HR department will take the final decision on those competencies of the employee.

Recommended Training Areas

Training areas are defined by the reporting officer and according to T & D department his schedule for training is finalized.

Promotion Recommended

Quarterly appraisals shows the employee status and finally concerned Authority recommend for promotion or not.

Salary Increment

Salary is increased on the basis of Profit Margin, PEL criteria and policy, salary is finalized by HR department. It is also kept in mind that the A, B, C & D Block which shows the rating of the employees appraisal. At the time of increment of salary increment is add in Basic Salary and Adjustment is made as separate allowance.

Bell Distribution for 2007-08 Bell Increment A 10% 20%

B 20% 16%

C 40% 14%

D 20% 12%

E 10% 08%

Finally aggregate is made on percentage i.e. Promotion is 5% which will be add in previous salary.

Employee’s Comments

After filling of the form it is reviewed by same employee and his comments are written on the report and forwarded to HR Department.

Final Approval

HR gives the final approval of the employee performance on the basis of concerned officer recommendation, last performance appraisal (3 to 5 years).

Techniques for Evaluation

Some specific techniques in PEL are used for evaluation of employees’ performance are given below by which can be used by a manager:

1. Written Essay 2. Critical incidents 3. Graphic Rating Scales

4. Behavior Anchored Rating scales 5. Forced Comparisons

6. Multiple option of Evaluators like Senior Staff Member 7. Evaluate Selectively

1. Written Essay

PEL company evaluate the employees i.e. by written test of the employees mean that by adopting this simple method is to write a narrative description and employee’s strengths, weaknesses, past performance potential, and suggestions for improvement. The written essay requires no completes forms or extensive training to complete. But in this method a good or bad appraisal may be determined as much by the evaluator’s working skill as by employee’s actual level performance.

2. Critical incidents

“Evaluating the behaviors that are key in making the difference between executing a job effectively and executing it in ineffectively.”

For the evaluation of the employees performance in PEL company a

the behaviors that are key in main the difference between executing a job effectively and executing it ineffectively. That is, the appraiser writes down anecdotes that describe what the employees did not vaguely defined personality traits. A list of critical incidents provides a rich set of examples from which the employee can be shown the behaviors that are desirable and those that call for improvement so by using the critical incidents a can also evaluate the performance of the employee.

3. Graphic Rating Scales

“An evaluation method in which evaluator rates performance factors on an incremental scale.”

Managers in PEL also evaluate the performance of the employees by using this method that is one of the oldest and most popular methods of evaluation is use of graphic rating scales. In this method, a set of performance factors, such as

• quantity and quality of work,

• depth of knowledge,

• cooperation,

• antecedence, and

• initiative is listed.

The evaluator then goes down the list and rates each on incremental scales. The scale is specified in five points, such as job knowledge is rated 1 (“poorly informed about work duties.”) to 5 (“has complete mastery of all phases of the job”). Although they don’t provide the depth of information that essay or critical incidents do, graphic rating scales are less time-consuming to develop and administrate. This method is also allow for quantitative analysis and comparison

4. Behaviorally Anchored Rating scales (BARS)

“Scales that combine major elements from the critical incident and graphic rating scale approaches: the appraiser rates the employees based on items along a continuum, but the points

are examples of actual behavior on the given job rather than general descriptions or traits.”

In this company behaviour and performance dimensions of employees are found by asking participants to give specific illustrations of effective and ineffective behaviour regarding each performance dimension. These behavioral examples are then translated into a set of performance dimensions, each dimension having varying levels of performance which is finalized by the Managers.

5. Forced Comparisons

The fifth one method for PEL employee is to evaluate one individual’s performance against the performance of another. There are two main ranks for forced comparisons

• Group order ranking

• Individual Ranking

Group Order Ranking: An evaluation method that places employee into a particular classification, such as quartiles. It requires the evaluator to place employees into a particular classification. Evaluators are asked whether the employees ranks in the top 5 percent of the company, the next 5 percent, the next 15 percent, and so forth. But in this type of performance appraisal, managers deal with all their subordinates therefore, if rater has 20 employees only 4 can be in the top fifth and, of course, 4 must also be relegated to the bottom fifth.

Individual ranking: An evaluation method that rank-orders employees from best to worst. If the manager is required to appraise 30 employees, this approach assumes that the difference between the first and second employees is the same as that between the twenty-first and twenty second. Even though some of employees are closely grouped, no ties are permitted. The result is a clear ordering of employees, form the highest performance down to the lowest.

6. Multiple options of Evaluators like Senior Staff Member

For the evaluation of the PEL company employees as the number of evaluators’

tends to follow a normal curve, an increase in the number of appraisers will tend to find the majority congregating about the middle. We often see multiple evaluator’s in competitions in such techniques as driving and gymnastics. A set of evaluators judges a performance, the highest and lowest score are dropped, the final evaluation is made up of those remain. The logic of multiple evaluators applies to organizations as well so by using the multiple options by a senior staff members are evaluate better.

7. Evaluate Selectively

By using this technique appraisers evaluate only in areas in which they have some expertise. This precaution increases the interpreter agreement and makes the evaluation a more valid process. It also recognizes that different organizational levels often have different orientations toward those being rated and observe them in different setting. In general, therefore, the individual being evaluated. Conversely, the more levels that separate the evaluator and person being evaluate, less opportunity the evaluator has to observe the individual’s behavior and, not surprising, the greater the possibility for inaccuracies.