AT

Moser Baer Projects Private Limited

Submitted by: Mahima Sharma Roll no : 50081 BBS II C

SHAHEED SUKHDEV COLLEGE OF BUSINESS STUDIES

CONTENTS

DECLARATION ACKNOWLEDGEMENT ABSTRACT OBJECTIVE COMPANY PROFILE

ABOUT MBPPL DIVISIONS
SOLAR HYDRO THERMAL MINING

EXPERTISE PEOPLE AT MBPPL

INTRODUCTION OF THE TOPIC PMS OF MOSERBAER

RECOMMENDATIONS

BIBLIOGRAPHY

DECLARATION
I, Mahima Sharma, a bonafide student of (BBS) Bachelor of Business Studies at Shaheed Sukhdev College of Business Studies , Delhi University, hereby declare that I have undergone the Summer Training at Moser Baer Projects Pvt. Ltd.under the supervision of Mr. Subodh Singh from 21 / 05 / 2012 to 09 / 07 / 2012. I also declare that the present project report is based on the above summer training and is my original work. The content of this project report has not been submitted to any other university or institute either in part or in full for the award of any degree, diploma or fellowship. Further, I assign the right to the university, subject to the permission from the organization concerned, use the information and contents of this project to develop cases, caselets, case leads, and papers for publication and/or for use in teaching.

Mahima Sharma 50081

ACKNOWLEDGEMENT
I wish to express my enormous gratitude to my project coordinator Mr. Subodh Singh for his support and guidance which helped me in motivating and inspiring me to do the needful regarding the project assigned to me.

I am grateful to the entire staff in the Human Resource Department, for being so congenial and making my stay there comfortable. I especially thank Ms.Shikha for taking pains to explain me the various functions of their unit and for her cooperation during all interactive sessions.

And finally to all persons who rendered their precious time, valuable tips, and patient support without which the completion of the project would not have been possible.

OBJECTIVE OF THE RESEARCH

To study the performance management system of MBPPL and understand the methods of performance appraisal followed in the company.

COMPANY PROFILE

ABOUT MOSER BAER

Moser Baer Projects Private Limited (MBPPL) was incorporated with the vision to become a leading energy developer in India. It is one of the fastest growing integrated power companies in India, operating across a synergetic span of verticals comprising Power Generation, Power Trading, EPC, Development and Renewables (Solar). MBPPLs projects are spread across India. Our portfolio approach is:

Thermal including coal mining core generation with high PLF Hydro with significant capacities available and merchant power Solar Farms exploiting solar expertise and driving penetration in Indian / international

markets

DIVISIONS
SOLAR POWER
Moser Baer Clean Energy Limited (MBCEL) was incorporated in September 2008 with a strategy to undertake development of solar power projects worldwide. MBCEL is a project developer, owner and operator of solar power projects. MBCEL is a Moser Baer promoted company, established for setting up solar PV power projects in India and in international geographies. It is Indias largest solar power development company with a presence in key international markets. MBCEL has 250 MWp under development across multiple states in India and a project portfolio of over 200 MWp in Europe to be developed by 2012.

Services Offered
Moser Baer Clean Energy Limited (MBCEL) is focused on developing large scale solar energy projects from concept to commissioning stage through its EPC arm Moser Baer Engineering & Construction Limited (MBECL). MBCEL provides services in:

Consulting
The consulting process prior to the development of a project provides integrated and comprehensive framework for various parameters such as:

Which locations are best, based on solar radiation assessment? Major activities that need to be considered while planning the project Procuring Land for the project Obtaining Government/Statutory Approvals Assessment of the structural, electrical and environmental elements Preparation of project reports and providing required information to various project stake holders and lenders Support services during pre-construction, construction & post construction period Financial services

Development
MBCEL has the expertise to provide a complete array of services necessary for successful completion of feasible projects. They integrate various stakeholders and governing authorities connected with the project towards procuring all necessary permits and clearances for the fast track development of the project.

Implementation
They take pride in completing the project before the defined timelines and ensure quality, reliability and functional requirements of the Solar PV System. They perform site management services like supervision of construction, erection, testing and commissioning of equipments and facilities to ensure compliance to quality, safety and performance requirements. Their certified field staff manages the entire erection & commissioning process and if required, the power evacuation infrastructure set up as well.

Training, Operation & Maintenance

They also undertake O&M activities and deploy trained staff to maintain the system over longer periods of time and ensure timely rectification of issues, if any. In addition, they provide manpower services for providing training to the technicians on the operation, repairing and maintenance of solar PV plant

HYDRO POWER
Moser Baer Electric Power Limited (MBEPL) undertakes development of hydropower projects sustainably by respecting the environment, public safety and well being by synergizing economy and development in a viable balance.

MBEPL recognizes the responsibility for environmental management and pushes hydro power development to contribute to substitution of emissions towards the inevitable need and good of low carbon economy. The challenge of balanced hydro power development in a responsible and viable manner calls for innovations and best engineering practices in the project design and development with diligent social responsibility. The process of development of hydro power projects by MBEPL is an extensive one that involves strategic assessment of the project site and project parameters prior to preparing the project for execution. The project is then executed through consultation and evaluation with all stakeholders and laws that guide and facilitate sustainable hydropower development. Long-Term Responsible Investor There is a resurgence of interest in hydro power industry as a result of the national call for low carbon economy, energy security and improved water management. MBEPL would provide regional and local benefits and has potential to play an important role in enabling communities to meet sustainable development objectives.

Hydro Strategy

Generate long term and strong cash-flows for Moser Baer Group on the strength of low and lowering cost of generation. Create base for synergetic businesses around each major hydro power station. Careful selection of the project locations and sites. Portfolio of projects that suit the market opportunities by location and maximization of peak generation. Early and efficient execution. Innovation in design & project scheduling. Sustainable development

Best Practices
Differentiate ourselves from the as usual developers. (Through basin / cluster approach) Measure value of each project.

Understand each project opportunity diligently through site visits and technical analysis. Be a serious and systematic developer. Extensive geo-technical investigations to minimize/pre-empt surprises. Rigorous process for DPR preparation. Engage internationally acknowledged consultants and review consultant. Independent design, construction, engineering and review team of eminent experts to ensure relevance and soundness of the DPR. Design and development of these projects to suit merchant markets. Appropriate contracting strategies: taking contractors as the partners for achieving. Aiming for early land acquisition to commence the preparations.

Advisory and Services

MBEPL provides Advisory Services for development of HEP sites in higher reaches of India and Nepal. We have a team of specialists in different fields of hydro electric projects. These experts have long experience of eminence.

THERMAL POWER

Moser Baer Power & Infrastructures Ltd (MBPIL), was incorporated in 2008 with the strategy to foray into power and infrastructure. The operations span the entire value chain of the power sector including generation, transmission and distribution. MBPIL also aims to diversify into coal mining and become an integrated power and infrastructure company through strategic tie-ups with other players. The company aims at having a thermal generation portfolio of 5000-6000 MW by 2015. The company is all set to enter into power distribution business through strategic tie-ups with various leading power sector companies. Currently MBPIL is developing three Thermal Power Generation Projects with a combined generation capacity of around 4000 MW in the states of Madhya Pradesh and Chhattisgarh.

Projects
Under Implementation 1.Anuppur Thermal Power Project MBPIL is developing 2520 MW coal based Thermal Power project in the district Anuppur, Madhya Pradesh. The project is planned to be executed in two phase as follows: Phase 1: 1200 MW (2X600 MW) Phase - 2: 1320 MW (2X660 MW) MBPIL is currently developing the first phase of 1200 MW (2X600 MW) through its Special Purpose Vehicle i.e. MB Power Madhya Pradesh Limited (MBPMPL). Coal for the project will be sourced from South Eastern Coalfields and water will be sourced from River Son. The company has set new benchmarks in the power sector by achieving critical mile stones (in terms of land acquisition, Coal and Water linkage, securing various statutory

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and other clearances and award of various contracts) in a record time. The Company has already achieved financial closure of Phase-1 of this project and construction work is underway. Development of the Phase-2 of the Project is scheduled to be taken up shortly. Project Location

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2.Chhattisgarh Thermal Power Project MBPIL is developing a 1320 MW (2X660 MW) coal based super critical project in district Champa, Chhattisgarh. The project marks the companys entry into the state which has 18 percent of the countrys coal reserves.

The company is actively pursuing various pre-developmental activities to achieve the planned Commercial Operation of this project by 2014. Project Location

Captive Power Plant MBPIL is also developing a 150 MW coal based Captive Power Project in Chhattisgarh. This project is being developed by a Joint Venture Company (JVC) of MBPIL and a PTC Energy Limited (a 100% owned subsidiary of PTC India Ltd). The project is expected to be operational from September 2012 onwards. In Pipeline In addition, MBPIL also plans to develop projects in Andhra Pradesh, Jharkhand and Orissa with an aggregate capacity of around 3000 MW by 2015-16. Apart from thermal generation, the company also has plans of making a foray into power
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 EXPERTISE
Solar
Moser Baer Clean Energy Limited (MBCEL) is backed by Moser Baer India Limited which is among the top two optical storage media manufacturers in the world. MBCEL benefits from backing by strong promoters who have a long term perspective and positive outlook for the solar sector. MBCEL also benefits from the Groups strong EPC capabilities and presence in various parts of the value chain.

Mining
Implementation of Greenfield Mining Coal Project We undertake all consultancy services for domestic and international clients in different phases of coal mining operations. We have a strong team with an average experience of over 100 years in the coal mining industry. Advisory services in Coal Mining MBPPL offers advisory services throughout all phases of coal mining project. We offer clients: Resource evaluation.

Mine planning and optimization. Project management, including mine statutory responsibility. Mining infrastructure development. Mine rehabilitation and resettlement plan.

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 PEOPLE AT MBPPL
Our people reflect our industry, our sector, our products and most importantly, our values, delivering performance with teamwork, integrity, passion and speed. Our culture is dynamic, adapting and challenging. How we work is as important as what we do. MBPPL is attracting some of the most experienced leadership talent in the world, passionate and dedicated towards building truly affordable and sustainable clean energy solutions. We look for people who are extremely versatile, adaptable, able to multi-task at high levels and well accustomed to build strategic long-term partnerships.

Life at MBPPL
Not only do we place great importance on building the renewable energy industry, we also stress on personal growth and creating a balance between work and life. We value relationships, promote communication and team environments. We recognise potential and continually encourage professional development across departments, management and leadership levels. We value achievements, reward and celebrate them. We welcome your interest in becoming a part of a great legacy being built here. We value your energy in growing the renewable industry.

Equal Opportunity
MBPPL believes in providing equal opportunity. All employment related decisions are based solely on merit and relevant job criteria.

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INTRODUCTION
WHAT IS PERFORMANCE MANAGEMENT?
Performance management is a forward looking process for setting goals and regularly checking progress toward achieving those goals. It is a continual feedback process whereby the observed outputs are measured and compared with the desired goals. Any discrepancy or gap is then fed back into changing the inputs of the process, so as to achieve the desired goals. The feedback process involves communicating the required change and promptly taking action to effect the desired change. This helps the system or organization being managed to achieve the required goal or the strategic plan. Performance management describes the processes by which managers improve the performance of their employees by utilising their power to reward, develop or discipline as appropriate. A performance management system documents these processes as company policy and may form a legally binding contract between the company and one or more employees. It can be negotiated through individual contracts or by collective bargaining either directly with employees or with the involvement of a union.

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DEFINITION OF PERFORMANCE MANAGEMENT

Performance management is the practice of actively using performance data to improve the public's health. This practice involves strategic use of performance measures and standards to establish performance targets and goals, to prioritize and allocate resources, to inform managers about needed adjustments or changes in policy or program directions to meet goals, to frame reports on the success in meeting performance goals, and to improve the quality of public health practice. Performance Management components include:

Performance Standards - establishment of organizational or system performance standards, targets and goals and relevant indicators to improve public health practice Performance Measures - application and use of performance indicators and measures Reporting of Progress - documentation and reporting of progress in meeting standards and targets and sharing of such information through feedback

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Quality Improvement - establishment of a program or process to manage change and achieve quality improvement in public health policies, programs or infrastructure based on performance standards, measurements and reports.

A Performance Management System is the continuous use of all the above practices so that they are integrated into the organization's core operations. Performance management can be carried out at multiple levels, including the program, organization, community, and state levels.

ESSENTIALS COMPONENTS OF PMS

The essential components of a performance management system are: A performance plan is negotiated between a manager and employee for a given period (usually one year). The employee agrees to achieve a specified level of performance in exchange for a reward or to avoid discipline. The plan also commits the manager to assist the employee improve his/her performance. During the year the manager gives employees feedback on their performance and may suggest how it can be improved. Performance is appraised at year-end and decisions are made to reward, discipline or develop employees. Performance is measured in terms of either goals or competencies. Goals are best reserved for professional or managers and competencies used for employees who are less skilled and/or have less control over their work environment. Performance pay or promotional opportunities are typical rewards. Discipline may include dismissal, suspension, loss of privileges or counselling and are usually applied only to wilful misbehaviour. Employee development, (rather than discipline) is used to address incompetence. Employees who either cannot or will not successfully undertake this development are made redundant to their position and either redeployed to a position they can handle (if one is available) or given a redundancy package.
The cycle is completed with a new performance plan.

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Performance Planning Establish and align organizational, functional, and individual goals Define expectations o Key result areas o Behavioral Metrics Create scorecard to define key organizational priorities Identify quantitative and qualitative measurement of goals

Feedback and Appraisal Establish mechanisms for frequent, open, honest feedback Create appraisal process that ensures consistency and alignment throughout individual functions and across the organization

Rewards and Recognition Ensure that reward and recognition programs fully support the achievement of strategic goals

Communication Build a communication infrastructure that reinforces all components of Performance Management Provide training to managers on their roles and responsibilities in the Performance Management process

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FEATURES OF PERFORMANCE MANAGEMENT

A good staff performance management system normally consists of the following features : a. Open fair and objective The system designed should aim to facilitate objective and fair assessment by the management and encourage frank and constructive feedback of appraisees. These can be achieved through : setting clear targets and standards; providing opportunities for supervisors to inform appraisees of their performance regularly, to be accompanied by timely coaching and counseling permitting the appraisee to have access to the entire report and to review the appraisal before the appraisal interview; and where necessary an assessment panel should be formed to ensure fairness in performance rating.

b. Competancy based Competency refers to the knowledge, attributes, attitude and skills required to perform a job effectively. There are two broad categories of competencies : core competencies and functional competencies. Core competencies are the generic competencies associated with effective performance required by a group of job holders in a department across different divisions/sections. An example is managerial competencies required for staff in managerial positions. Functional competencies are the competencies specific to certain job functions, such as computer programming skills for programmers in the Computer Section and classroom skills for trainers in the Training Division of a department. Competencies are reflected in a set of desirable behaviour patterns which are observable, measurable and can be tracked and monitored. Developing and using a competency-based approach enables departments to use a common language and structured way to define and describe appropriate job behaviours at different ranks as officers progress through the grade. The approach help to assess staff's potential and promotability to the next higher rank and identify development needs of the staff. It also enhances the objectivity and transparency of performance assessment. When core competency-based approach is adopted, departments need to ensure that the competencies are developed properly by : aligning individual performance objectives with departmental ones, securing senior management's commitment, and involving staff in the process.
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 Furthermore there should be a clear differentiation in competency descriptions among different ranks in the same grade. An unduly long list of competencies may adversely affect the effectiveness of the system. For competencies to effectively serve the needs of a department, they should be department-specific and reflect the missions, values and culture of the department. Any list of competencies cannot be exhaustive. It only provides the common language and understanding of the key dimensions and descriptions that warrant attention. Upon implementation, there should be proper and adequate training for the staff on the implementation of the performance management system. c. Continous process Staff performance management cycle is a continuous process which involves : performance planning continuous coaching and development interim review

Performance planning
Performance planning starts with a session between the appraising officer and the appraisee to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraisees, that is key result areas (KRAs). Examples of KRAs are : timely completion of caseloads customer satisfaction and relations staff development resource management resource management

Specific, measurable, achievable and timebound targets will then be set on the basis of the KRAs. The appraising officer should ensure that these targets are in alignment with the overall departmental objectives and that they are clearly understood by the appraisee. Depending on the nature of the job, appraising officers may alternatively agree with appraisees a list of key responsibilities with specific performance results. This list provides the appraisees and the appraising officers with the yardstick to objectively discuss, monitor and assess performance. The list should be kept under frequent review and be revised whenever there are changes in the job.

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 Continuous coaching and development

The performance management system is a on-going process. After work targets and standards have been decided and performance objectives agreed upon, the appraising officer should start the coaching and development process which threads through performance planning, regular feedback and guidance, interim reviews and performance appraisal. Coaching is about providing regular feedback to staff on their performance. It aims at : giving recognition to encourage and reinforce good performance; and providing advice and counselling to help improve performance, and where appropriate, take corrective action.

Through the coaching sessions, training needs should also be identified and followed up.

Interim review
An interim review is a scheduled, formal discussion between the appraising officer and the appraisee to review the latter's progress in meeting the agreed objectives/responsibilities. This usually takes place in the middle of the appraisal period. An interim review should take the form of a structured session to provides an opportunity for additional coaching, for problem solving, and for updating objectives/responsibilities. An interim review aims to identify performance results that are below, on or above target and determine appropriate responses on corrective measures. Supervisors should use this occasion to recognize and encourage good performance. On the other hand, performance below targets is to be pointed out and guidance for improvement to be given;assess and follow up development or training need of staff to assist them in achieving their objectives/responsibilities.

OBJECTIVES OF A PERFORMANCE MANAGEMENT SYSTEM

Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. A staff performance management system aims: A) To help achieve departmental objectives through staff Departments formulate strategies and objectives to support their vision, mission and values. To achieve these broad objectives, departments have to turn them into specific objectives and targets for the divisions, sections, units and subsequently individual job objectives and targets for implementation. As individual job objectives are linked to those of departments', the performance of individual officers contributes to the delivery of departmental objectives.

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B) To evaluate performance and improve communication between managers and staff on managing performance The staff performance management system provides a mechanism to monitor and evaluate staff performance. Performance objectives are set at the beginning of the performance management cycle through open discussion between the supervisors and the appraisees. Progress is monitored regularly and feedback from staff and supervisors is collated to help clarify objectives and output expectation; and to enhance performance. C) To provide opportunities for development The staff performance management system serves as a multi-purpose management tool. It provides valuable information to help identify individual training needs so as to enhance performance and to develop the potential of the staff for further advancement.

PERFORMANCE MANAGEMENT PROCESS MATERIALS

The Performance Management Process (PMP) is an ongoing process that begins with setting expectations and goals for employees, continues with ongoing feedback throughout the year, and concludes with a formal PMP form and appraisal discussion. To help with this process, employees and managers can use the forms and job aids listed below to ensure that the goalsetting and feedback sessions are successful. Employees Employee: How to Prepare for a Performance Review Self-assessment Worksheet

Managers

Supervisor: How to Prepare for a Performance Review How to Conduct a Fair Evaluation Levels of Performance Performance Analysis Worksheet Challenges in Providing Feedback

Employee:How to Prepare for a Performance Review

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Verify when and where the Performance Review is to be held: Date: Time: Place: Review the results of the last Performance Review conducted. Review the results of the Midway Feedback session. Review the current review period PMP form, the factors and their definitions. Review the expectations set at the beginning of the performance review period. Also review any expectations that have been amended or revised throughout the review period. Gather documentation to support or define both positive and negative performance incidents. Read the rating scale and the definitions located on the evaluation form. Be sure to understand that Meets Standards means good performance that is expected of a fully experienced and competent employee. Conduct a Self-Assessment. Make a copy of the Performance Review form and assign a rating to each expectation. Also include any additional written comments on performance and documentation. Identify areas of strengths and areas in need of improvement or enhancement. Identify an action plan to correct deficiencies or enhance performance in any areas that do not meet desired levels of performance. Identify any training opportunities or assignments for areas that need improvement. Bring the completed Self-Assessment to the meeting to discuss with the supervisor.

Employee Self-Assessment

These questions will help the employees prepare for their performance appraisal discussion. 1. What critical abilities does my job require? To what extent do I demonstrate them? 2. What do I like best about my job? The least?

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3. What were my specific accomplishments since the last appraisal period? 4. Which goals or standards did I fall short of meeting? 5. How could my supervisor help me do a better job? 6. Is there anything the organization or my supervisor do which hinders my effectiveness? 7. What job changes would improve my effectiveness? 8. Does my present job utilize my capabilities? How could I become more productive for the organization? 9. What do I expect to be doing five years from now? 10. Do I need more experience or training in any aspect of my current job? How could it be accomplished? 11. What have I done since my last appraisal to prepare myself for more responsibility? 12. What new goals and standards should be established for the next appraisal period? Which old ones should be modified or deleted?

Supervisor How to Prepare for a Performance Review

Contact the employee one to two weeks ahead of time and schedule the Performance Review for a mutually convenient time and location. Ask the employee to complete a Self-Assessment. The employee should receive a copy of the Performance Review form. The employee will then assign a rating to each expectation on the form and include documentation and any additional written comments on performance.

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Think about the goals and objectives of the work unit. Think about how the work of the employee supported the goals and objectives of the unit. To what degree has the employee completed the duties, tasks, and required functions of the position, the office, and the department in accomplishing the goals and objectives? Review the results of the last Performance Review conducted. Review the results of the Midway Feedback Session. Review the PMP form, the factors, and their definitions. Also review Identifying Rating Errors. Review the expectations set at the beginning of the Performance Review period. Also review any expectations that have been amended or revised throughout the review period. Gather documentation to support or define both positive and negative performance incidents. Determine what rating the employee should receive for each performance area. Write comments under each factor or area to support the assigned rating. Identify areas of strengths and areas in need of improvement or enhancement. Record those areas on the last page of the PMP form. Identify an action plan to correct deficiencies or enhance performance in any areas that do not meet desired levels of performance. Identify any training opportunities or assignments for areas that need improvement. List specific OJT and training and development opportunities that may help the employee improve. Set dates by which the action plan and training will be accomplished, and specify follow-up dates to make certain they are completed. Record this information on the review form. Start establishing expectations for the next performance review period.

How to Conduct a Fair Evaluation

The Performance Management Process (PMP) is specifically designed to overcome common rating errors and give the supervisor an opportunity to evaluate performance in an objective manner. The performance review is based on measurable job-related behaviors, not an individuals personal traits.

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COMMON RATING ERRORS

Performance review research has shown that supervisors commonly make a number of rating errors when evaluating an employees performance. Common rating errors include:

Halo or Horn Error The supervisor allows the employees performance on one aspect

of the job to influence an overall evaluation or an evaluation of other aspects of the job. This can be based on a positive aspect of performance (the halo effect) or a negative aspect of performance (the horn effect). She always comes to work on time. Expectations rating on Quality of Work. Obviously, she should get an Exceeds

Of course I gave him a Below Expectations rating on Job Knowledge. How could anyone who dresses like that for work know anything about how to do the job?

Restriction of Range Error The supervisor fails to use the entire range of scores on

the evaluation scale. There are three types of restrictions that the supervisor may incorrectly use. Leniency The supervisor always gives an Outstanding rating regardless of performance. The supervisor may do this because he or she does not what to confront any possible performance problems, wants to motivate the employee through high praise, or maintain the present working relationship without disruption. Severity The supervisor commonly rates employees as Below Expectations because of unrealistic standards or selective perception. Central Tendency The supervisor gives all employees an average rating, Meets Expectations, for fear of singling out an outstanding or poor performer. I dont dare give anyone a rating lower than an Outstanding. They expect it and will file a grievance if its anything less. No one in this department will get more than a Meets Expectations rating. I want them to shoot for something more.

Contrast Error The supervisor will compare employees to one another rather than to a

fixed standard, the performance expectations for the job. No, I cant really say that she deserves the Exceeds Expectations rating I gave her, but compared to others in this unit, she sure stood out.
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 Frame of Reference Error The supervisor will compare an employees performance

to the raters own personal standards for that job, rather than those on the performance review form. I cant help it if you would give Smith an Exceeds Expectations rating if he were in your unit. Exceeds Expectations to me is walk on water behavior, no matter what the standard is.

First Impression Error The supervisor will have an initial favorable or unfavorable

judgment about an employee and then ignore or subconsciously distort subsequent information so as to support the initial impression. Johnson may appear to be performing well to you now, but youll see. I knew he was worthless after that horrible first week on the job, and nothing has changed my mind.

Recency Error The supervisor will evaluate performance based on very recent or

current incidents rather than those occurring throughout the year. I gave you a Below Expectations on Quantity of work because last month you got behind on those notification letters. Usually youre up to date on those, but you really slipped up then.

Levels of Performance

Levels Outstanding Consistently above standards Always produces more than required Anticipates needs Exceptional achievement / contribution to department

Appraisal Approach Tone: Very Pleased Expectation: Review job description Evaluation: Discuss strengths & weaknesses (include examples) Goals: Ask employee their goals Work Plan: Design action plan Development: Stress beyond parameters of current job Thank employee Tone: Pleased Expectation: Review job description Evaluation: Discuss strengths &

Above Standards Exceeds standards in many aspects Frequently produces more than required

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Always prompt Always completes work

Meets Standards Acceptable performance in all important aspects Consistent Meets expectations Reliable and predictable

weaknesses (include examples) Goals: Ask employee their goals Work Plan: Design action plan Development: Plan to further strengthen performance Thank employee Tone: Coaching- Comment reliability Expectation: Review job description Evaluation: Discuss strengths and weakness Goals: Improve regular performance/initiative Work plans: Action plan including improvements Development: Follow-up meetings/offer support

Below Standards Needs to improve in some important areas Inconsistent in performance Needs reminders / supervision Unsatisfactory Frequent Reminders Rarely on time with work Unreliable Requires supervision Costs valuable time

Tone: Coaching and directive Expectations: Review job description and clarify basic work requirement Goals: Write agreed-upon actions for improvement Development: Set follow up meetings, offer developmental support Tone: Coaching and directive Expectations: Review job description and clarify basic work requirement Goals: Write agreed-upon actions for improvement Development: Set follow up meetings, offer developmental support Plus: No surprises Formal discipline initiated Timeframes in action plans Change or leave

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Performance Analysis Worksheet

There are various causes to performance problems, and the actions a supervisor would take depend on the causes. The list of questions below is useful in identifying the causes and required actions. YES 1. Does the employee have a clear understanding of what is expected in the performance area? 2. Does the employee understand the importance of the performance area and how it fits into the goals of the department? 3. Does the employee understand how his/her performance will be measured in this area? 4. Does the employee receive timely feedback during the year on his/her performance in the area? 5. Does the employee receive adequate coaching from the manager during the year? 6. Does the employee have the necessary resources to meet the performance requirement in this area? 7. Are there obstacles in the way of desired performance? 8. Are there positive consequences for high performance in the area and negative consequences for low performance? NO

Challenges in Providing Feedback

Challenges/Possible Problems Defensive response from employees

Solutions Protect self-esteem Focus on problem, not person

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 Deal with problems early, when they are small Involve employee in problem solving Dealing with socially sensitive subjects (e.g., personal appearance) Explain why performance area is important Deal with issue in relaxed, friendly manner Ask for employees self-assessment State excellence of overall performance Explain how one area is not up to employees own high standards Ask employee for his/her ideas Express confidence in employee Do good job of analyzing performance Practice using feedback skills Role play tough situations in advance Issue is too important not to find time Focus on the most important performance areas Set up systems where employees provide own feedback Keep discussions short and to the point.

Overall performance is excellent, but one area needs to be addressed

Manager uncomfortable in providing feedback

Manager too busy to provide much feedback

PMS CYCLE
The Performance Management Cycle involves Four Stages:
1. PLANNING PERFORMANCE:

Formulating Objectives, Key Performance Indicators (KPI's: Input and Output-based), and Performance Standards (Quantitative, Qualitative, Behavioural) and Targets for each position/employee, using a suitably designed Performance Agreement Form.
2. MANAGING PERFORMANCE:

Performance observation, measurement, recording, feedback and coaching, as well as managing the performance environment. This stage includes Performance Coaching and

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Counselling whenever employee performance or behaviour is not up to standard/expectation.

3. APPRAISING (REVIEWING) PERFORMANCE:

Using a suitably designed Performance Appraisal Form that facilitates the smooth running of appraisal interviews (See our Constructive Performance Appraisals Workshop).
4. REWARDING PERFORMANCE:

Linking actual performance to appropriate rewards/remuneration to reinforce excellence in performance. (We assist organisations in designing suitable reward/incentive systems or schemes for their employees.)

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THE IMPLEMENTATION OF PMS

The implementation of a performance management system that drives focus and transparency is vital to the success of todays leading organisations.

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The primary purpose of performance management is to align individual performance contracts with departmental business plans to achieve the overall company vision, mission and strategies.

The success of your performance management system lies in the ability to equip your employees with the skills and tools to take charge of their work responsibilities, development and future. The Balanced Scorecard has emerged as a proven and effective tool to capture, describe, and translate organisations strategic goals into meaningful objectives at corporate, divisional, and individual employee levels, thereby allowing for the strategies to be successfully implemented.

The most significant reasons of using Performance appraisal are:

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Making payroll and compensation decisions 80% Training and development needs 71% Identifying the gaps in desired and actual performance and its cause 76% Deciding future goals and course of action 42% Promotions, demotions and transfers 49%

METHODS OF PERFORMANCE APPRAISAL

The performance appraisal methods may be classified into three categories, as shown in Figure below.

Under the individual evaluation methods of merit rating, employees are evaluated one at a time without comparing them with other employees in the organization. (a) Confidential report: It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employees immediate superior. The report highlights the strengths and weaknesses of the subordinate. The report is not databased. The impressions of the superior about the subordinate are merely recorded there. It does not offer any feedback to the appraisee. The appraisee is not very sure about why his ratings have fallen despite his best efforts, why others are rated high when compared to him, how to rectify his mistakes, if any; on what basis he is going to be evaluated next year, etc. Since the report is generally not made public and hence no feedback is available, the subjective analysis of the superior is likely to be hotly contested. In recent years, due to pressure from courts and trade unions, the details of a negative confidential report are given to the appraisee.

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(b) Essay evaluation: Under this method, the rater is asked to express the strong as well as weak points of the employees behavior. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating. While preparing the essay on the employee, the rater considers the following factors: (i) Job knowledge and potential of the employee; (ii) Employees understanding of the companys programmes, policies, objectives, etc.; (iii) The employees relations with co-workers and superiors; (iv) The employees general planning, organizing and controlling ability; (v) The attitudes and perceptions of the employee, in general. Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e., the essay provides a good deal of information about the employee and also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitations:

It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will be evaluated more favorably then other employees. Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. It is very difficult to find effective writers nowadays. The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly without properly assessing the actual performance of the worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point of the firm, because the time of the evaluator (supervisor) is costly.

(c) Critical incident technique: Under this method, the manager prepares lists of statements of very effective and ineffective behaviour of an employee. These critical incidents or events represent the outstanding or poor behaviour of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behaviour. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance. An example of a good critical incident of a sales assistant is the following: July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the customers problem. On the other hand the bad critical incident may appear as under: July 20 The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store managers call thrice. He is lazy, negligent, stubborn and uninterested in work. This method provides an objective basis for conducting a thorough discussion of an employees performance. This method avoids regency bias (most recent incidents get too much emphasis). This method suffers however from the following limitations:
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Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it.

Most frequently, the critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates.

(d) Checklists and weighted checklists: Another simple type of individual evaluation method is the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behaviour. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist. l 2 3 4 5 Is the employee really interested in the task assigned? Is he respected by his colleagues (co-workers) Does he give respect to his superiors? Does he follow instructions properly? Does he make mistakes frequently? Yes/No Yes/No Yes/No Yes/No2 Yes/No

A rating score from the checklist helps the manager in evaluation of the performance of the employee. The checklist method has a serious limitation. The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. Another limitation could be that this method is expensive and time consuming. Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviors. In spite of these limitations, the checklist method is most frequently used in the employees performance evaluation.

(e) Graphic rating scale: Perhaps the most commonly used method of performance evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted

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by including traits that the company considers important for effectiveness on the job. A model of a graphic rating scale is given below. Table: Typical Graphic Rating Scale Employee Name................... Job title ................. Department ......................... Data .................................. Rate ...............

Quantity of work: Volume of Unsatisfactory work under normal working conditions Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Attitude: Exhibits enthusiasm and cooperativeness on the job Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance, reliefs, lunch breaks, etc. Cooperation: Willingness and ability to work with others to produce desired goals.

Fair

Satisfactory

Good

Outstanding

From the graphic rating scales, excerpts can be obtained about the performance standards of employees. For instance, if the employee has serious gaps in technical-professional knowledge (knows only rudimentary phases of job); lacks the knowledge to bring about an increase in productivity; is reluctant to make decisions on his own (on even when he makes decisions they are unreliable and substandard); declines to accept responsibility; fails to plan ahead effectively; wastes and misuses resources; etc., then it can safely be inferred that the standards of the performance of the employee are dismal and disappointing.

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The rating scale is the most common method of evaluation of an employees performance today. One positive point in favor of the rating scale is that it is easy to understand, easy to use and permits a statistical tabulation of scores of employees. When ratings are objective in nature they can be effectively used as evaluators. The graphic rating scale may however suffer from a long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another pitfall is that each characteristic is equally important in evaluation of the employees performance and so on.

(f) Behaviorally anchored rating scales: Also known as the behavioral expectations scale, this method represents the latest innovation in performance appraisal. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. The critical incidents serve as anchor statements on a scale and the rating form usually contains six to eight specifically defined performance dimensions. The following chart represents an example of a sales trainees competence and a behaviorally anchored rating scale. Table: An Example of Behaviorally Anchored Rating Scale (BARS) Performance Extremely good Points 7 Behavior Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to unload the trucks when asked by the supervisor. Can expect to inform only a part of the customers. Can expect to take extended coffee breaks and roam around purposelessly.

Good Above average Average Below average Poor Extremely poor

6 5 4 3 2 1

How to construct BARS? Developing a BARS follows a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees.

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Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behavior related to job performance. Step 2: Identify performance dimensions: The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between five and ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customers, handling of paper work and meeting day-to-day deadlines. While developing varying levels of performance for each dimension (anchors), specific examples of behavior should be used, which could later be scaled in terms of good, average or below average performance. Step 3: Reclassification of incidents: Another group of participants who are knowledgeable about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as being too subjective. Step 4: Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or one-to-nine scale with respect of how well it represents performance on the appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance. The second group of participants usually assigns the scale values. Means and standard deviations are then calculated for the scale values assigned to each incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale) are retained. Step 5: Producing the final instrument: About six or seven incidents for each performance dimension all having met both the retranslating and standard deviation criteria will be used as behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or measured) by the final incidents. Each incident is positioned on the scale according to its mean value.

Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job-specific and identifies observable and measurable behavior, it is a more reliable and valid method for performance appraisal. Researchers, after surveying several studies on BARS, concluded that despite the intuitive appeal of BARS, findings from research have not been encouraging. It has not proved to be superior to other methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is that the behaviors used are activity oriented rather than results oriented. This creates a potential problem for supervisors doing the evaluation, who may be forced to

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deal with employees who are performing the activity but not accomplishing the desired goals. Further, it is time consuming and expensive to create BARS. They also demand several appraisal forms to accommodate different types of jobs in an organization. In a college, lecturers, office clerks, library staff, technical staff and gardening staff all have different jobs; separate BARS forms would need to be developed for each. In view of the lack of compelling evidence demonstrating the superiority of BARS over traditional techniques such as graphic rating scales. Decotis concluded that: It may be time to quit hedging about the efficacy of behavioral scaling strategies and conclude that this method has no clear-cut advantages over more traditional and easier methods of performance evaluation.

(g) Forced choice method: This method was developed to eliminate bias and the preponderance of high ratings that might occur in some organizations. The primary purpose of the forced choice method is to correct the tendency of a rater to give consistently high or low ratings to all the employees. This method makes use of several sets of pair phrases, two of which may be positive and two negative and the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker. Actually, the statement items are grounded in such a way that the rater cannot easily judge which statements apply to the most effective employee.

The following is a classic illustration of the forced choice items in organizations.

1.

Least A B C D Does not anticipate difficulties Grasps explanations easily and quicklyB Does not waste time Very easy to talk to

Most A

C D

2.

Least A B C Can be a leader Wastes time on unproductive things At all times, cool and calm

Most A B C

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Smart worker

The favorable qualities earn a plus credit and the unfavorable ones earn the reverse. The worker gets over plus when the positive factors override the negative ones or when one of the negative phrases is checked as being insignificantly rated. They overall objectivity is increased by using this method in evaluation of employees performance, because the rater does not know how high or low he is evaluating the individual as he has no access to the scoring key. This method, however, has a strong limitation. In the preparation of sets of phrases trained technicians are needed and as such the method becomes very expensive. Further, managers may feel frustrated rating the employees in the dark. Finally, the results of the forced choice method may not be useful for training employees because the rater himself does not know how he is evaluating the worker. In spite of these limitations, the forced choice techniques is quite popular.

(h) Management by Objectives (MBO): MBO represents a modern method of evaluating the performance of personnel. Thoughtful managers have become increasingly aware that the traditional performance evaluation systems are characterized by somewhat antagonistic judgments on the part of the rater. There is a growing feeling nowadays that it is better to make the superior work with subordinates in fixing goals. This would inevitably enable subordinates to exercise self-control over their performance behaviors. The concept of management by objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne in management science. Management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. MBO thus represents more than an evaluation programme and process. Practicing management scientists and pedagogues view it as a philosophy of managerial practice; it is a method by which managers and subordinates plan, organize, control, communicate and debate. Features MBO emphasizes participatively set goals that are tangible, verifiable and measurable MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). MBO, by concentrating on key result areas translates the abstract philosophy of management into concrete phraseology. The technique can be put to general use (nonspecialist technique). Further it is a dynamic system which seeks to integrate the companys need to clarify and achieve its profit and growth targets with the managers need to contribute and develop himself.

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MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals. It allows the subordinate plenty of room to make creative decisions on his own.

THE LINK TO REWARDS

Research (Bannister & Balkin, 1990) has reported that appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other. There is also a group who argues that the evaluation of employees for reward purposes, and frank communication with them about their performance, are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is, say critics, based on inconsistent and muddled ideas of motivation. In many organizations, this inconsistency is aggravated by the practice of having separate wage and salary reviews, in which merit rises and bonuses are decided arbitrarily, and often secretly, by supervisors and managers.

PMS OF MOSERBAER
OBJECTIVES:
To align everyones objectives and hence their efforts into achieving corporate goals and objectives as defined in the annual business plan. This is done by framing the corporate business scorecard and cascading these objectives in the functional scorecard of different functions and key result areas of individuals.

To provide clarity to each individual about his/her role profile .In the process of scorecard cascade ,the areas, where each function and thereafter each individual, needs to support other functions is spelled out and clarified apart from ones own focus areas of each individual and provides a clear cut direction to each employee. Also the mutual clarification of the expectation between the employee and manager with regard to the work and performance would build in accountability and responsibility for ones work

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Through the system the process of development and growth of employees is also addressed through the linkage to the development planning process .comprehensive performance dialogue between the employee and the manager at the goal setting stage the midyear review stage as well as the end of the end of the period performance review stage ; and ongoing feedback and coaching by the manager would help the development process of the employee .The development planning process will be linked to the performance management process formality to ensure consistency.

ELIGIBILITY:
All on roll employees who have completed six months/one year of service on the day of start of appraisal period.

APPRAISAL PERIOD
For all senior officers/engineers and below the appraisal system is applicable which has two cycles, the April-March cycles and October-September cycle. For assistant manager and above, the performance management system reflections is applicable which is carried out in April-March cycle

PERFORMANCE MANAGEMENT CYCLE OF MOSERBAER

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STEPS

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Section-1
The Performance Appraisal System (PAS) is designed to improve overall organizational performance by encouraging a higher level of involvement and motivation and increased staff participation in the planning, delivery and evaluation of work. The system establishes a process for achieving responsibility and accountability in the execution of programmes approved by the General Assembly. It is based on linking individual work plans with those of departments and offices and entails setting goals, planning work in advance and providing ongoing feedback. An important function of the PAS is to promote communication between staff members and supervisors on the goals to be achieved and the basis on which individual performance will be assessed, encouraging teamwork in the process.

Section 2 Appraisal period

2.1 Except as provided in sections 3.2 to 3.4, the performance cycle shall be an annual one, beginning on 1 January or 1 April of each year. The head of each department or office shall decide on the commencement date, based on the needs of that department or office, and shall inform the Under-Secretary-General for Management of that decision. 2.2 When a staff member takes up new duties upon recruitment, transfer or assignment in the course of the performance year, an individual work plan shall be established, a mid-point review conducted and an appraisal made for the period between the beginning of the new duties and the end of the performance year if such period is six months or more. 2.3 When a staff member or his or her supervisor is reassigned or transferred from a department or office, or is separated from service, an appraisal shall be made for the period between the beginning of the performance year and the reassignment, transfer or separation, if such period is six months or more. 2.4 A staff member may request a special evaluation report in respect of an assignment of less than six months in another work unit or in a mission. Such a report should be consistent with the principles of the PAS. The report should state what was expected of the staff member and whether this was discussed by the staff member and the supervisor. The supervisor should appraise the performance and give an overall performance rating consistent with the rating system set out in section 8. Special evaluation reports shall be included in the official status file of the staff member concerned.

Section 3 Work planning and goal setting

3.1 Prior to the beginning of the performance cycle, heads of departments and offices meet with the senior managers under their direct supervision and develop, as appropriate, a departmental or office work plan that will be the foundation for work unit plans. Departmental and work unit plans may be developed on an annual or biennial basis, depending on the needs of the department or office. In the light of these plans, programme managers meet with the staff under their direct supervision to ensure that the objectives of the work unit are understood, and annual individual work plans are drawn up. Supervisors may meet with the staff in their work unit either as a group or individually.
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3.2 Each staff member prepares, in a timely manner, a draft work plan briefly describing the goals and specific actions for which the staff member is responsible during the performance year. Goals may include ongoing responsibilities, special projects or activities to be undertaken during the period. For each goal there should be an indication of how success will be determined. Differences of opinion between a staff member and the first appraising officer relating to an individual work plan should be resolved through discussion. If this is not possible, the first appraising officer should bring the matter to the attention of the second appraising officer. Regular feedback and guidance should be a mandatory requirement of the process, 3.3 Every staff member is expected to indicate at least one professional development goal to be achieved in the reporting period. The action to be taken may include special assignments, continuing education, on-the-job training, seminars, conferences or individual study. 3.4 All staff with managerial or supervisory responsibility for a work unit are also required to indicate managerial and supervisory goals that relate to managing the human and financial resources entrusted to them; leading, motivating and developing staff, and demonstrating gender and crosscultural responsiveness.

Section 4 Mid-year performance review

4.1 In the middle of each performance year, the first appraising officer reviews with each staff member the manner in which the individual work plan has been carried out and provides performance feedback and guidance for the accomplishment of the goals set out in the work plan. At that time, the work plan may be revised if there have been significant changes in the nature of the functions carried out by the staff member, or if such revision is required to pursue revised goals of the work unit. Comments are required only in cases where there are changes in assignments or priorities, or where remedial action is proposed to close performance gaps. 4.2 Staff members and supervisors are encouraged to take the initiative to discuss work performance whenever needed in the course of the performance year, in addition to the midyear performance review. As soon as a performance shortcoming is identified, the supervisor should discuss the situation with the staff member and take steps to rectify the situation, such as the development of a performance improvement plan, in consultation with the staff member.

Section 5 Year-end performance appraisal

5.1 The first appraising officer and the staff member meet at the end of the performance year to discuss the overall performance during the reporting period. Prior to the meeting, the staff member should prepare a preliminary assessment of the manner in which he or she has carried out the work plan defined at the beginning of the performance year. The first appraising officer appraises the extent to which the staff member has achieved the goals set and met the success criteria. The first appraising officer is also required to comment on the staff member's efficiency, competence and integrity in the performance of his or her functions, and assign an overall rating. 5.2 The second appraising officer reviews the performance appraisal form and signs it. He or she may also make comments, if desired.
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5.3 Subsequently, the staff member receives the form for his or her signature. The staff member may make comments on the appraisal, and on the first appraising officer's role as a supervisor during the appraisal period, if desired. The second appraising officer forwards the completed form to the appropriate executive or personnel office for inclusion in the staff member's official status file.

Section 6 Responsibility for timely execution of the Performance Appraisal System

Primary responsibility for the timely execution of the PAS, including completion of the PAS forms, rests with the supervisor. Each staff member is required to provide in a timely manner a draft individual work plan and to participate in scheduled discussions with the supervisor at the mid-year review and the year-end appraisal.

Section 7 Rating system

7.1 The PAS offers the following three ratings for staff who have met or exceeded expectations: Fully meets performance expectations; Frequently exceeds performance expectations; Consistently exceeds performance expectations. These three ratings establish full satisfaction with the work performed and shall be so viewed when staff members having received those ratings are considered for renewal of a fixed-term appointment or selection for a post at the same or a higher level, without prejudice to the principle that such decisions remain within the discretionary authority of the Secretary-General. 7.2 Where staff do not fully meet the performance expectations, one of the following two ratings should be given: Partially meets performance expectations; Does not meet performance expectations. These ratings indicate the existence of shortcomings, which may call for a specific remedial plan. A rating of "partially meets performance expectations" may justify the withholding of a within-grade increment, particularly if the same rating is given for a second consecutive year. A rating of "does not meet performance expectations" may lead to a number of administrative actions, such as transfer to a different post or function, the withholding of a within-grade increment, the non-renewal of a fixed-term contract or termination for unsatisfactory service.

Section 8 Management Review Committee

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A Management Review Committee shall be constituted in each department or office. The members of the Committee, who shall be appointed by the head of the department or office, will normally be the senior line managers of that department or office. The Committee shall oversee and review the overall process of PAS implementation at the departmental level in order to ensure consistency at all phases of the process.

Section 9 Joint Monitoring Committee

9.1 A Joint Monitoring Committee shall be constituted in each department or office. The members of the Committee shall be appointed by the head of the department or office and shall consist of two members nominated by management, two members nominated by the staff from the department or office in accordance with local practice and a chairperson nominated by the head of the department or office in consultation with the staff. Each member shall serve for a two-year renewable term. 9.2 The Joint Monitoring Committee shall monitor and review the implementation of the PAS by the department or office concerned with respect to timeliness of the process, compliance with its procedures and overall results. It shall work with the department or office to support the institutionalization of the PAS in that department or office for the first three years following full implementation of the PAS, after which the necessity for maintaining Joint Monitoring Committees will be reviewed. The head of the department or office shall provide the Committee with the statistical information necessary to conduct this review. While the mandate of the Committee does not include consideration of individual cases, individual staff members may agree that their cases shall be considered in the context of a discussion of broader issues of general impact. The Joint Monitoring Committee shall draw the attention of the Management Review Committee of the department or office to any problems it perceives in the implementation of the PAS and may propose possible solutions. 9.3 The Joint Monitoring Committee shall meet three times a year, namely, at the performance planning stage, immediately after the mid-year review and at the appraisal stage at the end of the performance year. It shall prepare a compliance report for each of those stages. The reports concerning the performance planning stage and the mid-year review shall be submitted to the Management Review Committee through the head of the department or office. The report concerning the appraisal at the end of the performance year shall be submitted to the Global Joint Monitoring Committee within 45 days of the last working day of the relevant performance year. That report shall include a consolidation of the first two reports, a compliance review of the end-of-year appraisals and an overall summary of the PAS implementation process in the department or office for that year.

Section 10 Global Joint Monitoring Committee

I 0 .1 The Global Joint Monitoring Committee shall be a subsidiary body of the StaffManagement Coordination Committee. The Global Joint Monitoring Committee shall be composed of two members nominated by management, two nominated by the staff and a chairperson appointed after staff consultation by the President of the Staff-Management Coordination Committee. Each member shall serve for a one year renewable term. The Global

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Joint Monitoring Committee shall perform its functions for the first three years following full implementation of the PAS. 10.2 The Global Joint Monitoring Committee shall examine policy issues involved in PAS implementation. It shall review the reports submitted by Joint Monitoring Committees and prepare an annual report on the implementation of the PAS in the various departments and offices. That report shall include recommendations on the implementation and overall effectiveness of the PAS are shall be submitted to the Secretary-General through the StaffManagement Coordination Committee. 10.3 The Global Joint Monitoring Committee shall meet once a year, immediately prior to the annual meeting of the Staff-Management Coordination Committee, which will review the report of the Global Joint Monitoring Committee and transmit it to the Secretary-General.

Section 11 Rebuttal panels

11.1 In consultation with the staff representatives of the department or office concerned, the head of the department or office, or his or her representative, shall draw up a list of rebuttal panel members composed of three groups of staff members from the department or office concerned, in equal numbers. The list shall be composed as follows: (a) Rebuttal panel members designated by the head of the department or office; (b) Rebuttal panel members nominated by the staff of the department or office through an election that should identify at least twice the number of individuals required for this group; (c) Rebuttal panel chairpersons, selected by the head of the department or office after consultation with the staff representatives of that department or office. The approved list, subdivided as indicated above, shall comprise nine individuals in all for large departments or offices, six for smaller departments or offices. Every effort shall be made to obtain an appropriate geographical and gender balance, where possible. The head of department or office shall inform the staff in writing of the composition of the approved list. 11.2 Rebuttal panel members shall serve for a two-year term. In the event that a member of the rebuttal panel is assigned to functions outside the department or office concerned, he or she shall be replaced in accordance with the procedure relevant to the group to which the rebuttal panel member belongs. 11.3 In small offices where it maybe difficult to constitute a list from the staff members of that office, the approved list may include staff members from other Secretariat offices at the same duty station, provided those staff members have the knowledge and experience required to review the appraisal and its rating.

Section 12 Rebuttal process

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12.1 Staff members who disagree with the performance rating given at the end of the performance year may, within 30 days of signing the completed performance appraisal form, submit to their Executive Office at Headquarters, or to the Chief of Administration elsewhere, a written rebuttal statement setting forth briefly the specific reasons why a higher rating should have been given. Staff members having received the rating of "consistently exceeds performance expectations" may not initiate a rebuttal. The rebuttal statement shall contain the names of the three individuals, one from each of the three groups identified in section 12.1 above, whom the staff member has selected to serve on the rebuttal panel. A copy of the rebuttal statement shall be placed in the staff member's official status file. 12.2 After receiving a copy of the rebuttal statement, the head of department or office, or his or her representative, shall promptly prepare and submit to the rebuttal panel a brief written statement in reply to the rebuttal statement submitted by the staff member. A copy of the reply to the rebuttal statement shall be given to the staff member and placed in his or her official status file. Unless geographical location makes it impractical, the panel shall hear the staff member, the first and second appraising officers and, at the discretion of the panel, other staff members who may have information relevant to the review of the appraisal rating. 12.3 The rebuttal panels shall prepare with maximum dispatch a brief report setting forth the reasons why the original appraisal rating should or should not be maintained. The report of the rebuttal panel shall be placed in the staff member's official status file. The performance rating resulting from the rebuttal process shall be binding on the head of the department or office and on the staff member concerned, subject to the ultimate authority of the Secretary-General as Chief Administrative Officer of the Organization, who may review the matter as needed on the basis of the record. 12.4 The rating resulting from an appraisal that has not been rebutted, or from the rebuttal process, shall not be subject to further appeal. However, administrative decisions that stem from any final performance appraisal and that affect the conditions of service of a staff member may be appealed.

Section 13 Performance Appraisal System and salary increments

13.1 Under staff rule 103.8 (a), the granting of salary increments is subject to the satisfactory performance and conduct of staff members as evaluated by their supervisors, unless otherwise decided by the Secretary-General in any particular case. The determination that service is "satisfactory' in respect of performance and the procedures for withholding a salary increment when such a determination cannot be made are governed by the provisions of this section. Basis for the decision 13.2 The basis for the decision to award or withhold a salary increment on the basis of performance shall be the record of performance of the staff member as documentedby the PAS. 13.3 The following ratings shall justify a determination that awarding a salary increment is warranted: - Fully meets performance expectations;

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- Frequently exceeds performance expectations; - Consistently exceeds performance expectations. 13.4 One annual rating of "partially meets performance expectations" may justify the withholding of a salary increment, provided it is documented that, during the corresponding performance year, a performance improvement plan was put into place, in accordance with section 5.2 above, but that the staff member's performance failed to rise to a level that would justify a rating of "fully meets performance expectations". 13.5 Two consecutive annual ratings of "partially meets performance expectations" shall normally lead to the withholding of a salary increment. 13.6 One rating of "does not meet performance expectations" shall normally lead to the withholding of a salary increment. Procedures 13.7 The decision whether to grant or withhold a salary increment shall be taken by the first appraising officer on the basis of the staff member's most recent PAS. The decision to withhold a salary increment shall be communicated to the staff member in writing, before the decision is implemented, by the Executive Office, with a copy to the Office of Human Resources Management, or by the local personnel office, Should the PAS rating on the basis of which a salary increment has been withheld be upgraded at a later stage as a result of the rebuttal process described tinder section 13 above, and should the new rating justify the award of the salary increment, that increment shall be awarded and made effective as from the date on which it would have otherwise been paid. 13.8 The decision to withhold an increment on the basis of a PAS rating is not subject to review by a rebuttal panel, which deals only with performance ratings, but may be appealed in accordance with Chapter XI of the Staff Rules.

Section 14 Performance Appraisal System forms and guidelines

14.1 The Office of Human Resources Management shall make available PAS forms and guidelines, which shall be available from the relevant executive or personnel office of the department or office concerned. The forms and guidelines shall also be available electronically.

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PECULIAR CHARACTERISTICS OF PMS AT MOSER BAER 1. 360 DEGREE FEEDBACK

360 degree feedback, also known as'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors -anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal.

2. NORMALIZATION OF SCORES
Rating tendencies of Managers in an organization vary from a 'very lenient' rate to a 'very harsh' rate. The employees reporting to them experience the impact of these variations. This impact becomes crucial in an environment where employees are given performance based remuneration/ incentives. Normalization of scores is intended to introduce greater objectivity in the Employees Performance Management (EPM) System of an organization.

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What does normalization mean? Assume there are ten Managers in an organization who are reporting on 10 different executives each and these Managers, in turn, report to three different Senior Managers, in their respective departments. In this scenario of EPM, there are 13 different 'Appraisers' who are reporting on 110 employees in the organization. Amongst these employees, 100 are at the same level (ie, Executives) and 10 are at the level of Managers. Each of the thirteen Appraisers has a rating style which is different from the others. So the employees reporting to them have a high degree of variability in their performance appraisal scores. The process of balancing this variability is called 'Normalization'. Normalization Process The process comprises of the following steps: Statistical Mean' of organizational rating pattern of all the Managers (ie, Appraisers) at the same level, across various departments, is computed. Let this Mean be 'M'. Statistical Mean for each of the Appraisers at the same level (ie, for all the 10 Managers in the example given above) is computed. Each Manager should have done the Appraisal for 40 to 50 employees (may be over the last 5 years). Let this Mean be 'Mi' (i = 1 to 10). A correction Factor (CF) for each of these Managers (Appraisers) is then computed = Mi/M. Its value, for example, will be 1.0 if the rating pattern of a Manager is the same as the statistical Mean for all the Managers. Performance Score of each individual employee is divided by CF for his/ her Manager to compute its normalized value. This normalized score is utilized for all management decisions.

3. USE OF BELL CURVE

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Bell curve is used for performance management. This theory was conceived by Hernstein & Murray in 1994. If you have 100 employees in a group / tea / project, you rate everybody and colect their self appraisal rating. When you compare you usually come out with a graph, where you have ratings or scores on one hand and number of employees on the other hand. The logic is, as per the bell-curve rule, you got to classify certain number of emplyees forcefully under some defined rules. Bell curve system of appraisal is a forced ranking system imposed on the employees by the management. Forced ranking has been defined as a workforce management tool based on the premise that in order to develop and thrive, a company must identify its best and worst performers, then nurture the former and rehabilitate and / or discard the latter - SWlearning. Bell curve system rates the entire workforce by comparing the performance of those engaged in similar activity and ranking them on the basis of their performance. The entire workforce is segregated as the top performers, medium performers and the poor performers. The percentile varies with the company policy The performance standards set in MBPPL are as follows : Excellent 18% Very Good 37 % Good 40% Average 5%

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RECOMMENDATIONS
The performance management system of MOSER BAER is comprehensive but as there is always roo for improvement , I would like to recommend the following measures :

1.APPRAISAL PERIOD At MBPPL , the performance cycle is annual beginning on 1 April of each year. Mid year review is restricted to course correction and qualitative feedback. In many companies the performance appraisal is half yearly and there are quarterly review meetings to monitor progress and even monthly progress report checks are also in practice. I would suggest that this practice should be followed in MBPPL as well so that more effective results can be obtained.

2.APPRAISAL METHOD The appraisal method used is 360 degree and Forced Distribution. Although both the methods are effective but every technique has its advantages and disadvantages.The drawbacks associated with 360 degree are: Multiple raters are less adept at providing a balanced and objective feedback Raters can have enormous problems separating honest observations from personal differences and biases.

The drawback associated with forced distribution is as follows:

One of the drawback of this theory because you are forcefully by classifying an employee as outstanding or unsatifactory, underestimating his potential. From the point of view of employees, it seems rigid and impractical and ,ight reduce organizational flexibility.

I would suggest that the company incorporates more methods for appraisal as a single system of appraisal has high chances of giving out false reports leading to dispirited workforce. However the bell curve system backed by other measures of performance appraisal can be an added advantage.

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BIBLIOGRAPHY
1.

www.google.com. www.moserbaerprojects.com wikipedia.org/wiki/Performance_appraisal

2.

3.

4. Citehr.com

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