Performance Management System

India



PMS & Its Importance



Performance management is the process of creating a work environment or setting in
which people are enabled to perform to the best of their abilities.

Organizations are using the term performance management as a substitution for the
traditional appraisal system. I encourage you to think of the term in this broader work
system context.


PMS Process @ Olam

PMS form
KRA -setting
Mid Year Review
- Self assessment on
performance (Instead
of self rating)
Issue of
Increment/Incent
ive Letters
Org/ Product
Goals ( whr applicable)
Ongoing
feedback and
coaching
- Rating and
appraisal dialogue by
Appraiser (Feedback
on performance and
career communicated)
- Review by
Product /
Functional Head
Normalization by
HRC & approval
by Country Head
Communication
of final rating to
Appraiser by HR
Communication of final
rating to the employees by
Appraiser
Compilation of comp
data and
communication to
payroll
Role Based
goals
Olam PMS Form
The PMS form is designed for all to do a self-assessment on
the KRAs, highlight key accomplishments, misses,
constraints, identify training needs and capture the strengths
and aspiration of the employee.

Please refer to the word attachment to download this form.

KRA Setting
KRAs = Key Result Areas. 5-7 key deliverables that the employee would need
to focus on.

KRA setting is done at the beginning of the financial year. While setting KRAs,
apply the SMART Principle S- Specific , M-Measurable, A- Achievable , R-
Realistic, T-Time Bound.

While filling the form, against each KRA, you should highlight your actual
performance in terms of achievement, timelines met, costs saved . Please note
that you are not required to provide any self rating against the KRAs.

Self Assessment
This is a unique opportunity for you to showcase all your achievements during the
year which may or may not have been highlighted earlier.

Details of the work done, approach taken, extra effort for achieving targets, technical
competencies in handling assignments, stretch at work, special achievements and its
impact on the organization/ department and team goals, extra initiatives taken by you,
challenging deadlines met all aspects which have led to the success of your work
can be discussed in this section.

Please note the Self appraisal document should be used by both Appraiser and the
employee during the appraisal dialogue.

Rating by Appraiser
Assessment of Appraisers is based on delivery of KRAs, overall
performance on the job and behavior displayed.









What Appraiser Look for:

I. Progress toward individual and
team deliverables
II. Quantifiable achievements/results
misses?
III. Behaviors, skills, competencies
that have improved and/or are
having a positive impact and/or
should / could be improve
Where Appraiser Look..

I. Direct observation
II. Your self assessment
III. Feedback from dotted line
Appraiser One-Over-One Input
Management Input
IV. Recognition received

Appraisal Dialogue
Formal meeting between you and your Appraiser

1. To discuss on your own performance highlighting the key accomplishments and challenges
faced, if any.

1. To ensure your Appraiser have a clear understanding of your point of view and
achievements

Dialogue focused on
Accomplishments highlighted in the self assessment vis--vis the metrics
Feedback and recognition received from others including internal and external customers
Initiatives taken during the course of the year
Any other points that you may want to highlight
Appraiser share overall Feedback on performance.
Discuss strengths, areas of improvement and career aspirations the employee
Discuss future goals and responsibilities that will employee is likely to handle.

Normalization
Normalizations is defined as :

Differentiation of performance based on
- performance on the job
- accomplishments
- differences in contributions
- behaviors displayed
Normalization is done based on the Overall Rating of the employee. It is all about
valuing the relative contribution


Benefits of Normalization
- brings uniformity and objectivity to the process
- Multiple inputs and multiple reviews minimizes subjectivity
- helps in identifying high performers in any department


Normalization
Steps in Normalization


Step 1 : Review by Product /Functional Head
Step 2 : Review by HRC
Step 3 : Approval by Country Head
Step 4 : The final rating after normalized and approved communicated to the
employee by the immediate Appraiser

HRC to moderate the discussions
Note : The product wise bell curve would need to be adhered to while normalizing
ratings
Way Forward
Please down load the form, complete the self assessment , identify the
training needs, fill in the strengths and improvement area and submit it to
your Appraiser.

Based on the self assessment, the concerned employee has a discussion
with his Appraiser for his/her performance.


Based on the performance and behavior displayed, the Appraiser would
rate the employee and submit the form for normalization..






Timelines
S.N Actions Completion
Dates
Responsibility
1 Communication email for appraisals
10
th
June 14
HR
2 Self Assessment by Appraise
Appraisee has to fill all details mentioned in PMS form .
20
th
June 14
Appraisee
3 Performance Review by Appraiser
1. Appraiser will complete one on one discussion with all Appraise .
2. Review of Appraisal outcome, Final ratings ,Increment /Incentive
recommendation with BH.
3. BH to submit appraisal forms to HR along with PMS sheet.
9
th
July 14


Appraiser /
Business Heads
4 Data Consolidation and Validation for HRC discussion
10
th
July 14
HR
5 HRC discussion with all respective business heads +
Normalization
11
th
16
th
July 14
HRC
6 Final Approval by Country Head
21
st
July 14
CH
7 Issuance of Increment letters.
30
th
July 14
HR
8 Payouts
July payroll
HR
FAQs

Q) Is the process similar in all departments, I feel rating is done leniently in some
departments compared to my department, so we end up losing all the time?

I. The process is the same across the entire company. Normalization at different levels
addresses the above issue. For eg the product/function Head would look at the ratings
of all staff in the dept, normalized by HRC and approved by Country Head

Q) I am never aware of the ratings I am given, can I expect it this time?

I. Overall Ratings are communicated to all the employees after completion of the
normalized process. You may ask for the same from your Appraiser.

Q) On what basis is promotions activated, I mean is it based on legacy/ no of years of
experience or there is some separate assessment that is being done for people
getting promotions.

I. Promotions depend on consistent good performance, potential of the individual
(behaviors, competencies displayed) and availability of a role in the higher grade.









Q) My Appraiser has told me a certain rating when we met during appraisals, however
there was a mismatch between what he said and what was translated as my i, can
you explain me the process what happens after my Appraiser has given me the
rating. I am very unclear about that.

I. The overall ratings are assigned by Appraisers based on KRA achievement, overall
performance on the job and behaviors displayed. This rating undergoes different levels of
normalization until it is approved and finalized by the HRC & Country Head. The final
ratings are communicated after the normalization and that is what that gets translated into
the incentive and increments.

Q) Why are we making things complicated by introducing self assessment and all in the
Olam Appraisal form?

I. Self Assessment is an opportunity for you to highlight your accomplishments, hits and
misses and actions taken for self development. It is a good preparatory ground for the
appraisal discussion and is also an input for your Appraiser while making the appraisal
decision.





FAQs





Q) I think that the rating given to me is subjective. How does the process take care of
that ?
I. Appraiser rates the employee based on multiple data points on performance and
behavior. The same undergoes multiple reviews with the Product Head, HRC and
Country Head before the final rating is decided.
Q) If I do not agree to the rating that is allotted to me, who do I appeal to and how?
I. You may escalate the same to your one over one Appraiser and to your HR Appraiser

Q) What happens if I am on leave and I am not able to complete the appraisal on time
according to the schedule you are showing?
I. The schedule and timelines needs to be adhered to ensure completion of appraisals
and comp payouts on time. You would need to complete the same prior to proceeding
on planned leave.

FAQs
Q) What happens to all the work I have done which is not a part of my KRAs, however
they are very important. How do I highlight that?

A) The Self Assessment column is meant to highlight the same. The overall performance on
the job ( apart from KRA) is taken into account while arriving at the final overall rating

Q) What happens if my Appraiser gets changed during the course of the year or I am
transferred to a new team. Who takes ownership of the ratings ?

A) The ratings are always owned by the current Appraiser. In case of a change in Appraiser,
the feedback is taken from the previous Appraiser for the concerned period.

Q) Who do I contact in case of queries?

A) Please feel free to get in touch with your immediate Appraiser or with Roshan Tamak,
Amit Pant, Krishanu Chakravarty, Abhimanyu and Avnit .

FAQs
All the Best.




Thank you