INTRODUCTION OF PERFORMANCE MANAGEMENT

Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on performance of the organization, a department, processes to build a product or service, employees, etc. Performance management of individual employees differs. It generally includes the work planning, setting goals, offering feedback and reviews, offering opportunities to learn more in ones field, and rewarding employees who perform well. Employee performance management works best when work is planned and goals are consistent. This may mean having a clear way to communicate regarding work e pected at the moment and upcoming work. Planning also includes defining e pectations of the employee so that he or she is not broadsided by evaluation criteria not included in planning. Planning and setting goals in performance management also creates a system of predictable rewards for good performance, and conse!uences for poor performance. It also involves giving feedback to employees on a more consistent basis than the average annual review. Instead, an employees ability to e ceed or failure to meet goals may be monitored on a monthly basis. This provides the employee with either the opportunity to receive compliments and rewards fairly regularly or to make behavior changes sooner if performance is not up to par.

AE Design History
"E #esign is the premier engineering design and $onsultancy $ompany in Pakistan. They are specializing in the engineering and analytical related services for the mass automotive and industrial machine industries. "E #esign provides its clients with professional, e perienced design and engineering services while maintaining a focus on economical and on%time delivery. "E #esign assists their clients from concept through validation to finished prototypes and&or finished products if re!uested. 'ur professional in%house team brings your ideas to fruition, be it an integral part of a sub assembly or an entire system. Each of our engineers holds international degrees and brings a level of e pertise adaptable to a changing manufacturing environment without compromising their professional integrity or the !uality of their technical services. "E #esign was started in ())(. The $E' of the company *aafir +aheed focuses on providing engineering services to the automotive industry. ,ince these early days, they have e panded our horizons to include motor sports, recreational, aerospace and industrial machine design. "E design clients are based primarily world%wide with most residing in Europe and the -nited ,tates. "E #esign continuing dedication to e cellence is carried forth throughout the team.

MISSION

."E #esign mission is to provide solution is to meet and e ceed the e pectations of automotive clients with their acceptable timeframe and budget./

VISION
."E #esign is looking forward for their e pansion, engineering challenges with e citement, and produce solution with vigor./

ORGANIZATIONAL STRUCTURE

PERFORMANCE MANAGEMENT SYSTEM OF AE DESIGN

Performance System Procedure: 0. Performance "ppraisal shall be comprised of ( parts i.e. Performance 1oals and $ompetencies. Performance "ppraisal shall carry a weight age of 2)3 for performance goals and 4)3 for competencies. (. Every year for all confirmed employees according to their annual increment dates respectively, 5.6 #ept shall initiate Performance "ppraisal by sending the performance appraisal format to all #epartment heads. 4. The performance goals as already set and agreed to between the E ecutive & 7anager 8"ppraisee9 and his immediate boss 8appraiser9 shall be indicated in the format. :. The appraisers shall evaluate the performance of the appraisees according to the agreed criteria between them at the time goals were set. ;. The appraiser shall discuss with the appraisee each and every goal in the light of its achievement and the success criteria. <. Each goal shall be marked in proportion to the achievement and the total weightage, likewise the competencies shall also be graded.

2. In the course of Performance "ppraisal the training needs of the appraisee shall also be determined. =. >oth the appraiser and the appraisee shall sign the format. In case there is any reservation the appraisee shall give his comments. ?. "fter the appraisal the appraiser shall forward the format to his immediate senior who shall review the appraisal and give his comments. 0). In those cases where an E ecutive have two reporting officers ,both shall conduct the Performance "ppraisal send the case to functional incharge for this evaluation of the concerned individual and who shall send the case to his incharge for review.

00.

The total marks of an appraisal shall be categorize as under@ Aeeds 0 Improvement >elow e pectations 7eets E pectations E ceeds E pectations ( 4 : >elow ;;3 ;;3 % <?3 2)3 % =;3 =<3 0))3 %

0(. 'nce the review is completed the Performance "ppraisal format shall be sent to 56 #epartment. 04. The annual increase in salary, promotion, transfer, training shall be decided on the basis of this performance appraisal in a meeting of the compensation $ommittee specially convened for this purpose. 0:. +hile conducting appraisal the appraiser shall set the goals for the appraisee for the ne t financial year.

0;. The goals shall be based upon key performance indicator of individuals Bob position. 0<. The goals must be specific and time bound.

02. The appraiser and the appraisee shall decide success criteria to avoid any dispute at the time of appraisal. 0=. The goals must be measurable.

0?. Each goal shall be given weight age according to its relative importance out of 2)3 reserved for performance related evaluation. (). 'nce the goals are finalized the parties shall sign the format and send the same to 56 dept after getting it endorsed by the 5ead of >ranch & "ctivity & $E'.

FLOW OF ACTIVITIES

The flows of activities in performance management system are a powerful tool. "E #E,I1As believe that by using these ingredients for performance management system are essentialC

Increase communication. ,et up clear e pectations. 6einforce good performance. Improve unsatisfactory performance. Provides the career development and mentoring. "E #E,I1As Performance system tries to keep communication open and asks employees about their acceptability and perceptions. They enthusiastically listen and respond to their input. They conduct on%going

progress reviews with their employees. They donDt limit interactions to formal appraisals at the end of appraisal period.

their

+ith the discussion between top management the functional heads they align the obBectives of employees with the Eision of company. 'rganization strictly believes that appraisers should balance positive and negative performance feedback. They should be well prepared to give praise for accomplishments as well as provide constructive criticism. 7anagers review the performance appraisal with employees. They need to build consensus on the final appraisal document and the document should be signed by the both parties and submitted to the 5uman 6esource department. -nder the supervision of 5uman 6esource department, line managers conduct appraisal meetings. They are directed to do preparation and prioritize the tasks and issues before going in the appraisal meetings.

7anagers are responsible to schedule the appraisal meeting in advance. Provide employee the opportunity to prepare whatever he or she wants to say. 7ake sure to allow sufficient time for the meeting and give employee the feel of importance and value. +hile conducting the performance appraisal meeting it is directed to both parties 8the appraiser and appraise9 to avoid discussion of personal issues. 7anagers should concentrate on the employeeDs behavior and their performance.

LIN ING OF APPRAISER AND APPRAISE

The linking between appraiser and appraise in "E #E,I1A are different department and designation wiseC

Department "ccounts "ccounts #esign Engineering #esign Engineering #esign Engineering

Appraiser Finance 7anager Finance 7anager ProBect 7anager #esign ProBect 7anager #esign ProBect 7anager

Appraise ,r. "ccountant "ccountant $"# ,upervisor #esign Engineer #raftsmen

#esign #esign Engineering Information Technology Information Technology Information Technology "dmin "dmin ,ales 5uman 6esource ProBect 7anager #esign IT 7anager IT 7anager IT 7anager "dmin E ecutive "dmin E ecutive 1erman ,ales 7anager 56 7anager ,r. Engineer Aetwork Engineer +eb Engineer ,r. Aetwork Engineer Procurement 'fficer Technical $oordinator "ssistants Front desk officer

$E' $E' $E' $E'

56 7anager IT 7anager "dmin E ecutive ProBect 7anagers 8#esign9 ProBect 7anagers 8,imulations9 ProBect 7anagers

8#evelopment9 $E' $E' $E' "dmin E ecutive Finance 7anager 1erman ,ales 7anager

'rganizations organogram clearly reflects the linking between appraisers and appraises. #espite this concrete Performance 7anagement system, linking of appraise and appraiser is a potential problem which can result in the negligence of maintain the documentation of the performances. In many areas appraise and appraise are not directly linked at the work place. If we take the case of #raftsmen, this position is reporting to #evelopment coordinator and that position reporting to $"# ,upervisor and he is reporting to ,r. Engineer and ,enior Engineer is reporting to ProBect 7anager. "nother issue is found that some designations are reporting to the two or more heads at a same time. Those are clearly mentioned in the organogram by solid line.

GOALS ! O"#ECTIVE SETTINGS LIN ING OF GOAL SETTING AND APPRAISAL SYSTEM

In "E #E,I1A while conducting appraisal the appraiser is directed to set the goals for the appraisee for the ne t financial year. 0. The goals shall be based upon key performance indicator of individuals Bob position. (. The goals must be specific and time bound. 4. The appraiser and the appraisee shall decide success criteria to avoid any disputeat the time of appraisal. :. The goals must be measurable. ;. Each goal shall be given weight age according to its relative importance out of 2)3 reserved for performance related evaluation. <. 'nce the goals are finalized the parties shall sign the format and send the same to 56 dept after getting it endorsed by the 5ead of >ranch & "ctivity & $E'. This reflects that organization is using the concept of ,7"6T 1'"G,. 7anagers are directed to set the obBectives shall be based of two parts Functional 1oals and #evelopment 1oals. ,imilarly while allocating the time and at time of evaluation, proper weightages should be there.

The performances are linked with appraisal system by adopting the total marks of an appraisal shall be categorized as under@

Aeeds Improvement >elow e pectations 7eets E pectations E ceeds E pectations

>elow ;;3

( 4 :

;;3 % <?3 2)3 % =;3 =<3 0))3 %

Each goal shall be marked in proportion to the achievement and the total weightage, likewise the competencies shall also be graded. Performance "ppraisal shall be comprised of two partsC Performance 1oals and $ompetencies.

Performance "ppraisal shall carry a weight age of 2)3 for performance goals and 4)3 for competencies.

APPRAISAL SYSTEM
$urrently "E #E,I1A is using the >"6, Evaluation system. They name this system as . >ehavioral "ssessment Performance #imension/.

STAFF PERFORMANCE APPRAISA

FOR T!E PERIOD """""# To be filled in by the immediate supervisor and discussed and shown to the appraisee
NAME SA AR% D#O#' OCATIO N DESI$NATI ON A O&ANC ES DEPARTME NT APPRAISER

PERFORMANCE COMPETENCES S( # )E!A*IO+RA ASSESSMENT PERFORMANCE DIMENSIONS

'o. ,no/0ed1eC Possesses knowledge of methods, techni!ues and skills@ conversant with all phases of Bob and related matters. P0annin1 and Or1ani3in1C "nticipates needs@ forecasts conditions, plans, organizes and monitors results till completion of tasks. -tilizes time effectively and meets deadlines with effective and realistic action plans. Decision Ma5in1C Takes rational, sound and timely decisions based on relevant information and facts.

MAR,S O& !I$ ! O)TAINE D

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GeadershipC #evelops in subordinates, the will H desire to work towards common obBectives@ assigns work to subordinates H keeps track of the progress, corrects deviations to achieve the common goals.

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Discip0ine7Attendance7Punctua0ity: Follows guidelines as established by policies. The e tent to which the employee reports to work on time, communicates schedule changes promptly to supervisor, and maintains regular attendance and work discipline. Pro.0em So09in1 S5i00sC Gogically breaking problems down to their essential elements@ carrying out diagnosis, developing and implementing solutions. Tenacity and Crisis !and0in1C 6emains steadfast H maintains stability of performance under pressure and stressful conditions H pursue tasks until completed. De9e0opin1 staffC Identifies H motivates others to improve their capabilities and standards of performance through counseling, Bob rotation etc. Dependa.i0ityC $arries out commitment H obligations of his&her position efficiently and e peditiously H takes prompt and reliable decisions after considering available options and their implications. Inno9ationC 1enerates original H Imaginative ideas and suggests solutions to problems to achieve improvements in work operation. Initiati9eC #oes things before being asked to or forced by events and acts at the right time. Team SpiritC E hibits team spirit in the performance of duties to achieve overall common obBectives. Efficiency and OrientationC Gooks for the best use of resources@ actively seeks ways to improve current systems, methods H structure. #emonstrates deep concern and is Budicious with companyDs funds, property and interests. Communications S5i00sC "bility to listen carefully H to present facts and ideas verbally and in written form in a very clear, effective and convincing manner. Interpersona0 S5i00sC >uilds persuasive arguments on logic&merit without hurting feelings of others. Adapta.i0ityC "bility to alter behavior and opinions in the light of new info and responds constructively to changing situations.

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Ma?imum Score Tota0 Mar5s O.tained Performance @ A BTota0 Mar5s O.tained 7 ;=C ? -==

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FORMAL REWARD SYSTEM

There is no formal and documented reward system e ists in "E #E,I1A. It might be given on the sole discretion of the $E'. >ut there is no documented policy available for that. 5ence the performance management system has no compliance with the rewards and coercions.

PROPOSED PERFORMANCE SYSTEM

PERFORMANCE MANA$EMENT

" Performance 7anagement process is meant for ensuring that employees are focusing their work efforts in ways that contribute to achieving the organizations mission. It consists of three phasesC 8a9 ,etting e pectations for employee performance, 8b9 7aintaining a dialogue between supervisor and employee to keep performance on track, and 8c9 7easuring actual performance relative to performance e pectation.

P+RPOSE OF PERFORMANCE MANA$EMENT The purpose of the performance management system is to ensure thatC 0. The work performed by employees accomplishes the work of the organization. (. Employees have a clear understanding of the !uality and !uantity of work e pected from them. 4. Employees receive ongoing information about how effectively they are performing relative to e pectations. :. "wards and salary increases based on employee performance are distributed accordingly. ;. 'pportunities for employee development are identified. <. Employee performance that does not meet e pectations is addressed.

OPERATI*E PERFORMANCE MANA$EMENT 'perative performance management system shall consist ofC 0. " process for communicating employee performance e pectations, maintaining ongoing performance dialogue, and conducting annual performance appraisals. (. " procedure for addressing employee performance that falls below e pectations. 4. " procedure for encouraging and facilitating employee development. :. Training in managing performance and administering the system. ;. " procedure for resolving performance pay disputes.
PERFORMANCE APPRAISA

Performance appraisals are a way to give feedback to staff regarding their performance. The appraisal can be used to encourage good work as well as point out opportunities for improvement. "ppraisals can also be used to set measurable targets and obBectives to continually spur performance improvement. Increasing Role Clarity Performance appraisal is a tool for communicating the skills, knowledge and attitudes re!uired for the different Bob roles. The appraisal criteria acts as a guide to the attitudes and behaviours that "E #E,I1A would like their staff in their various capacities to have. Training and Development Performance appraisals measure an individuals performance and can identify opportunities for improvement or learning through training. Compensation and Reward

"E #E,I1A re!uires that bonuses and annual increments are linked to performance, a system for measuring performance in an e!uitable way is necessary. Performance appraisal encourages the use of obBective, !uantifiable criteria to measure performance which will be known to all staff. This system improves fair Budgment and the perception of e!uity among staff.

Career Planning Performance appraisals will allow "E #E,I1A to assess the skill set of their e isting staff to ascertain the career path for each individual. Enhance Corporate Values "E #E,I1A,s corporate value is the pursuit of innovative !uality in the areas of $ustomers, Employees, ,ociety, Products, Technology, 7anagement and Fairness. These values are translated to performance measures that are used in the appraisal. This enhances awareness of corporate values and promotes behaviours that are in line "E #E,I1A,s values.

DE*E OPIN$ PERFORMANCE TAR$ETS AND $OA S

P6'$E#-6 E

"$TI'A,
>egin by writing down the basic nature of the task using only a verb and a noun

EI"7PGE,
,ource new clients Increase sales volume 6educe reBection rates $omplete planning phase

,tep 0

Include the !uantity or !uality that must be met by the person responsible for the task

,tep (

,ource I number of !ualified clients within J months Increase sales volume by I3 by certain time 6educe reBection rates by ;3 by the end of the year $omplete the planning phase by certain time ,ource I number of !ualified clients within J months by actively delivering services to potential clients within the automotive industry

,tep 4

If necessary, add any procedures or criteria that describe the action to be taken to achieve the target or goal

,tep :

6eview and refine the target or goal if necessary

C!EC, IST FOR TAR$ETS AND $OA S

The performance goals should be operational and development. They must be ,7"6T 1oals. .SMART/ Performance 1oalsC S pecific M easurable A chievable R esults%oriented T ime%bound To ensure that the obBectives are properly defined, each of the following !uestions must be answered positivelyC% 8i9 8ii9 8iii9 8iv9 8v9 #oes the statement of performance targets&goals limit the results to one specific areaK "re the results well defined in terms of what is e pected of the Bob holderK "re the obBectives measurable and observableK +ere obBectives !uantified whenever possibleK +as a time frame specifiedK "re the performance targets&goals reasonable and within the reach of the Bob holderK

'bBectives of +riting Performance Targets and 1oals ,pecific and measurable targets and goals define what is e pected from a Bob holder. The performance targets and goals serve as standards by which performance can be accurately measured.

DE*E OPIN$ ,E% PERFORMANCE INDICATORS B,PIDsC

Core Customer s

Mana1er

E?ecuti9e

Staff

Customer Focus

Emp0oyee s

7aintains high priority in achieving customer satisfaction 8both internal and e ternal customers9 by !uickly and accurately identifying and responding to customers actual needs. Is effective in dealing and negotiating with internal and e ternal customers. taff Training and !elfare "ctively provides guidance and helps staff in their career development Interpersonal& Facilitation of Teamwork Promotes and develops good working relationships with other staff Communication "ill ,peaks, listens and writes clearly and logically to share information and skills Cost Consciousness #emonstrates concern for the society through practices that save companys resources and reduce wastage

Society

Core

Mana1er

E?ecuti9e

Staff

#ob $nowledge% Technical

"ills

#emonstrates good knowledge and skill in Bob area Products and Ser9ices !or" &ttitude #isplays commitment, planning and organizational skill, initiative and a sense of urgency toward work and a willingness to learn 'uality (indset 7aintains high standards for how work is done in terms of accuracy and consistency afety Ensures careful work habits that comply with the safety re!uirements 'uantity of !or" "bility to handle a reasonable volume of work TecEno0o1 y Mana1em ent 8to be completed for appraisees with supervisory duties9 Process Improvement 6ecognizes the need for continuous improvement Problem olving

Identifies issues and problems, secures relevant information from different sources and resolves problems effectively )eadership% upervision * (otivation of taff

,ets a good e ample for subordinates and effectively controls and leads them

Core

Mana1er

E?ecuti9e

Staff

+oal ,rientation ,ets realistic challenges and acts to achieve them #ecision 7aking Takes the right action at the right time

Fairness

Integrity "cts ethically and honestly in line with the companys code of conduct Dependability % Responsibility Is reliable in the discharging of duties and is willing and adaptable in taking on new responsibilities &ttendance% Punctuality 5as good attendance and is punctual

PROPOSED ANN+A O)'ECTI*E FORM

"s it is mandatory in 5uman 6esource practice to document the obBectives or targets set by appraiser and accepted by appraise. This procedure supports at the time of appraisal and made the process reliable and transparent. They should follow this pattern while setting the obBectives.

ANN+A O)'ECTI*ES 7 TAR$ETS Name: Desi1nat ion: ocation:

Departme nt:

AoteC #iscuss all the 'bBectives&Targets with the appraisee in detail.

&EI$!TA$E F&F
BTota0 Score for tEis o.Gecti9eC

S (#

O)'ECTI*ES7TAR$ETS FOR T!E %EAR 2=-=-2=--C Please !uantify as much as possible

TOTA

IN,IN$ AND SCED+A IN$ PERFORMANCE MANA$EMENT

It is proposed that "E #E,I1A should start their performance management cycle with financial year.
STA$ES OF T!E PERFORMANCE MANA$EMENT S%STEM
0st week of Muly

,chedule interviews ,chedule interviews

L "ppraisers to schedule 0hr sessions for each employee L "ppraisers to inform employees at least one week before the scheduled interview

0st week of Muly

Inform Employees Inform Employees

(nd week of Muly

Preparation for 6eview Preparation for 6eview

L $onduct performance appraisal interview L "ll E ecs and 7anagers will undergo the appraisal interview including setting performance targets and goals for the ne t time period

4rd and :th week of Muly

L 56 #ept to identify "ppraisers for each department, particularly for departments with more than one appraiser L 56 #ept to provide "ppraiser with appraisal forms L "ppraiser to complete forms for respective staff L "ppraisers to submit completed form to respective superiors for review and countersigning L "ppraisers to submit form to 56 #ept L 56 #ept to confirm recommendations on salary increments and promotions with 7anaging #irector L 56 #ept to prepare letters to staff accordingly L 56 #ept to file appraisals in personnel forms

Performance 6eview Performance 6eview and and "greement "greement

:th week of Muly

7anagement 7anagement 6eview 6eview

0st week of "ugust

56 #ept 6eview 56 #ept 6eview

PROPOSED APPRAISA S%STEM

$urrently "E #E,I1A is using the >ehavioral "nchored 6ating ,cale 8>"6,9 Evaluation system. They name that system as .>ehavioral "ssessment Performance #imension/. "s we propose them that they should not only use this system but also include the 7anagement by 'bBectives 87>'9 Evaluation system.

MANA$EMENT )% O)'ECTI*ES
Please fill the resent achieved against the obBectives&targets given to the appraisee in the beginning of the year. Please discuss all the achievements with the appraisee in details.

This form comprises of -./ weightage of Performance &ppraisal

Ratin1 FRF BMar5s AcEie9ed a1ainst tEat o.Gecti9e# $i9e mar5s out of tEe tota0 mar5s B&C a00ocated to tEis o.Gecti9e#C

S ( #

ist 5ey o.Gecti9es priority /ise a1reed at tEe .e1innin1 of re9ie/ period.

&ei1Eta1e F&F BTota0 Mar5s for tEis o.Gecti9eC#

Resu0ts AcEie9ed# P0ease try to Huantify resu0ts# Read tEe e?amp0es .e0o/# AcEie9ed a0most :=@ Customer Comp0aints reduced .y -==@ acEie9ed too5 -= /ee5s on a9era1e > modu0es /ere comp0eted de9e0oped 4 SOPs

E?amp0es for +nderstandin1: Sa 0es: Responsi.0e for acEie9ement of -==@ Annua0 Sa0es Tar1ets !R: Comp0ete Eirin1 /itEin ; /ee5s of recei9in1 tEe !irin1 ReHuest# IT: De9e0op 8 Modu0es of !uman Resource Information System /itEin tEis year#

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46 2= 2:

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Tota0

Performance @ A BTota0 R 7 Tota0 &C ? -== Fina0 A11re1ated Ratin1 BFARC for Form ) A Performance @ ? =#:=

@ Di9ision Form A Form ) Tota0 4)3 2)3 -==@

Score d

O9era00 Performance
E?ceeds E?pectations B;8 I -==@C Meets E?pectations B:= I ;6@C

)e0o/ E?pectations B66 I 8<@C

Needs Impro9ement B)e0o/ 66@C

The appraisal should include both evaluation forms 7>' and >"6,, by giving 2)3 and 4)3 respectively. Elements of the &ppraisal Form The appraisal form must cover the following key areasC "ssessment of performance. Employees growth and development % strengths and areas for improvement. Training re!uirements. "chievements. 1oals and targets 8for managers and e ecutives9. 6eview with staff 8for managers and e ecutives9. 6ecommendations. 7anagement review% 6eview by $ountersigning "uthority.

PARAMETERS TO COND+CT PERFORMANCE APPRAISA

)EFORE T!E APPRAISA

Neep good records 6eview previous goals 1et input from others Prepare carefully Prepare administrativ e details

>oth praise and criticism are most meaningful when supported by factual e amples. -se previous goals to evaluate progress.

,eek feedback from others who work with the appraisee in areas they will have obBective knowledge of and get e amples where available. Prepare in advance so that you can deliver the message that you intend to. "gree on a time % set aside at least one hour. "void postponing the appointment, and give the employee full attention. ,elect a location % office or conference room is best. "sk employee to prepare % ask the employee to review his&her goals, and come prepared with !uestions. 'utline what is about to happen for the session.

E plain the meeting agenda Encourage communicati on

Gisten. Encourage two%way communication. "sk for ideas on how they can improve performance. "sk for how they feel you can help them. "sk for feedback on the appraisal section.

their

D+RIN$ T!E APPRAISA

,tay focused $ommunicati ng shortcomings >e open

Neep the session focused on past and future performance, summaries discussion issues often to ensure agreement. The employee e pects and should know what he&she needs to improve. >e versatile and open%minded if you hear things that cause you to change your opinion.

D+RIN$ T!E APPRAISA

Evaluation process

7aking promises 6eview goals

>egin with the positive things that were well done. Follow this with areas that need improvement and a plan on how to address them. $onclude with a reinforcement of your desire to help the person grow and improve. #ont make promises you do not have control over 8e.g. salary increments, promotions, transfers etc9. $oncentrate on a few areas% things that make a difference. Try to encourage continuation and growth in the areas of strength. ,et up .smart/ goals that will build strength in areas needing attention.

AFTER T!E APPRAISA

"dministratio n

Follow%up Gearning

$omplete the paperwork re!uired for the results of the appraisal. 7ake sure the appraise signs on the bottom line. 7ark the calendar on when your ne t appraisal session with the person will be. Follow%up on agreements made during the appraisal. 6eview what you have learnt about the employee, your records and systems, yourself, the appraisal process and your management style.

A*OID ERRORS IN PERFORMANCE APPRAISA

Common Ratin1 Errors +hilst completing the appraisal form, the appraiser is advised to e ercise caution, as there may be several pitfalls which may skew the assessmentC 0alo Effect " person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well, even when such a rating is undeserved. 1egative Effect " low rating in one area yields lower than deserved ratings for other accomplishments. Central Tendency "ssigning an average rating for all !ualities. Confrontation &voidance #iscomfort with giving negative feedback. Initial Performance 6ating an employee based solely on initial impressions of performance. Recency 6ating an employee based solely on most recent performance which overshadows the entire years performance.

$RADIN$ IN PERFORMANCE APPRAISA

There must be proper and well defined grading criteria. That must be properly communicated to appraise by their appraisers. "ppraise is then graded according to the level of his&her performance in each category according to the final scoreC

,utstanding Performance is e ceptional and far e ceeds e pectations. $onsistently demonstrates e cellent standards in all Bob re!uirements. Very +ood Performance is consistent, and e ceeds e pectations in all situations. +ood Performance is consistent. $learly meets essential re!uirements of Bob. Fair Performance is satisfactory. 7eets re!uirements of the Bob. 1eeds Improvement Performance is inconsistent. 7eets re!uirements of the Bob occasionally. ,upervision and training is re!uired for most problem areas. 2nsatisfactory Performance does not meet the minimum re!uirements of the Bob.

PROPOSED REWARD SYSTEM ! LIN ING

There are two modes of rewards, e trinsic and intrinsic. Employees are motivated by both intrinsic and e trinsic rewards. To be effective, the reward system must recognize both sources of motivation. "ll reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. It has found that among employees all the time money is not the most important motivator, and in some cases managers have found money to have a de%motivating or negative effect on employees. To ensure that the reward system is effective and motivates the desired behaviors, it is essential to consider carefully the rewards and strategies utilized and ensure the rewards are linked to or based on performance. To be effective, any performance measurement system must be tied to compensation and some sort of reward. 6ewarding performance should be an ongoing managerial activity, not Bust an annual pay%linked practice. ,trategies for rewarding employees performance and contributions include both non%financial and financial mechanisms. ,ome of the mandatory ones are discussed below. The list is not comprehensive, and individual departments of "E #E,I1A may identify additional mechanisms that are appropriate for and support their culture and goals.

Praise7reco1nition from super9isors

Praise and recognition from supervisors is consistently found to be among the most important motivators. Employees want to be recognized and feel

their contributions are noticed and valued. It is important that supervisors recognize the value and importance of sincerely thanking employees verbally and&or in writing for their specific contributions.

CEa00en1in1 /or5 assi1nments $hallenging&new work assignments are another mechanism available for supervisors to reward good performance. ,uch assignments can provide employee the opportunities to develop new skills, e pand their knowledge, and increase their visibility within the organization. They also send an important message that employees contributions are recognized and valued. In considering such assignments, supervisors should consult employees about the types of assignments that would be most valued, and they should also assess whether workloads will need to be redistributed to ensure employees have ade!uate time to devote to new tasks.

Professiona0 1ro/tE and de9e0opment opportunities ,upervisors may provide employees opportunities to participate in educational programs or other activities that will e pand their skills and knowledge. Employees benefit by developing new skills, and the organization benefits from the additional e pertise individuals bring to the Bob.

Paid ea9e 'rganization may award employees up to 0= paid leaves annually in recognition of commendable performance with the approval of their line supervisors keeping in confidence the human resource department.

Pro1ression tErou1E tEe sa0ary ran1e Employees may receive salary increases to recognize the attainment of new and the enhancement of e isting skills and competencies or for assuming increased responsibilities within the scope of the current position. The salary increase represents a progression through the salary range approved for the position. This directs that their must a proper road map defined.

Merit .ased increases Policy should allow supervisors to give employees an annual merit increase to recognize consistently commendable performance or successful completion of a proBect that had a significant impact on a department or the university. The reward may be in any amount or percentage, depending on the availability of funds. To be eligible for a merit increase, employees must have been employed for at least si continuous months and at least si months must have onwards since the employeeDs last salary increase, promotion, salary increase due to progression in the salary range, demotion or transfer from another department.

Promotions and 0atera0 mo9es Promotions and lateral moves may be long term rewards that recognize employees professional growth, e pertise, and capacity to contribute to the institution in new roles. Promotions are typically associated with an increase in salary.

)onuses >onuses are compensation for employees for work performed@ they are paid in addition to salary or wages. >onuses are considered compensation if they Oarise out of an employment relationship or are associated with the performance of services.O Neeping in mind the "E #E,I1As profitability the management should introduce this system.

Administrati9e sa0ary supp0ements "s it is observed that in "E #E,I1A employees are sharing responsibilities so employees who assume new or additional responsibilities on an interim basis may receive administrative salary supplements that are paid in addition to the base salary. The supplement is discontinued when the employee is no longer responsible for the additional responsibilities. Informa0 re/ards +hen necessary, supervisors may choose to give employees informal rewards for specific accomplishments or contributions. 'rganization can set an amount for employee informal non%cash rewards that demonstrate the supervisors and organizations appreciation. ,upervisors can be creative in identifying informal rewards that will be appreciated by the particular individual being recognized, but, in selecting and purchasing rewards, supervisors must be sensitive to the organizations responsibility.