Global PMP Policy - SuccessFactors · Global PMP Policy | FY 2016-17 1. ... The process is applicable to all full-time employees of Tata Communications Ltd, as per the eligibility

Global Year End Review Policy Talent Management - Human Resources

Confidential document for internal circulation only

This policy version supersedes any other policy communication with regards to the Performance Management Process in TCL Page 1 of 5

Global PMP Policy | FY 2016-17

1. OBJECTIVE

1.1. To create a high performance culture in the company by institutionalizing an integrated performance management process including on-going and continuous goal management, performance review and capability development of employees in a unified process flow thereby improving overall performance and capability of the company

1.2. To help differentiate talent by rewarding high performance and to further leverage these PMP outcomes in other Talent Management processes

2. SCOPE

The process is applicable to all full-time employees of Tata Communications Ltd, as per the eligibility criteria listed below.

Who is Eligible Who is not eligible

a. All full-time employees who have joined on or before 31st December and are on active rolls as on 31st March

b. Management Trainees c. Graduate Engineering Trainees d. Canadian Unionized employees e. Global Campus Program trainees*

* GCP Trainees Performance Management will be a part of annual performance management, however, the process, steps and timelines will be slightly different from the rest of the organization’s PMP cycle. GCP Trainees will not be a part of the Energy Curve.

a. Full-time Employees who joined after 31st December b. Full-time employees who are not on active rolls of the

company as on 31st March c. Full-time employees who are on “Unauthorized

Absence” or facing “Disciplinary Action” during the review period

d. Consultants/ temporary employees e. Fixed term contractual employees f. Advisors g. Non-management employees (except Canadian

Unionized employees) h. Off roll employees/ associates

i. Any other trainees

Policy implementation at local level will be in conformance with local laws, respecting the legal rights of all employees.

3. POLICY UPDATES FY 16-17

3.1. The Energy Curve for JM, MM & SM/TM will be as follows (20% BIC; 65% VC; 15% NR+BoP)

3.2. PIP will not be mandatory. It will be the responsibility of people managers to launch PIP as needed. The process for managing NR & BoP would remain same

3.3. Potential will be evaluated on DRIVE attributes

4. YEAR END REVIEW POLICY GUIDELINES

4.1. Year End Review is conducted annually in the month of March. The review period is from 1st April to 31st March of that fiscal year

4.2. The HR team will share an overall Year End Review schedule in advance so that all stakeholders are aware of the dates to be followed for various aspects of the review process

4.3. Respective managers and employees along with BUHR/RHR shall be responsible for timely execution of the review process

4.4. At the commencement of the annual review, employees will self-assess on KRAs and document their key contributions, learning and career development goals. Employees can add or modify KRAs in the year-end review form, in case of any recent role change

4.5. L1 Manager shall conduct an effective assessment of employee’s performance & potential (including ethical conduct) and rate him/her keeping in mind the following:

4.5.1. Self-Assessment done by the employee

4.5.2. Employee’s performance vis-à-vis other team members in similar role

4.6. L1 Manager shall review and rate employee on the overall progress against identified KRAs and provide inputs on his/her learning and career development goals.

4.6.1 She/he shall additionally document detailed development plan in CAP (Career Action Plan) section for the Best in Class (BIC) rated employees




4.6.2 If required, she/he shall additionally document detailed development plan in PIP (Performance Improvement Plan) section for Needs Revving (NR) and Bottom Performer (BoP) rated employees

4.7. Managers should NOT hold any performance review discussion or share rating with employees at this stage

4.8. L2 manager i.e. Manager’s Manager shall review ratings and comments given by L1 Manager and provide inputs to ensure due sanitization on the overall review process

4.9. Function leaders including L3 Managers, LOB Head and Business Head must review and normalize the Energy Curve as per the defined guidelines

4.10. Talent Conclaves shall be held for Energy Curve finalization and developmental discussions of Best in Class (BIC) rated employees

4.11. There shall be three levels of mandatory talent conclaves to cover employees at different levels during the appraisal round. These are further detailed below

4.12. Post Talent Conclave sessions, ratings shall be published to the employees by the manager during the final review discussion. Employees are expected to acknowledge the rating and complete the process on PRISM

4.13. All year-end review forms shall automatically be routed to the next steps for the following stages: Self Review by employee, Manager Review by L1 manager, Reviewer Approval by L2 manager, Energy Curve Finalization, Publication by L1 manager, Acknowledgement by Employee. All forms that remain unacknowledged post the stipulated timelines will be deemed acknowledged and will automatically be routed to the Completion stage

4.14. Manager should have a performance feedback discussion with the employee while communicating the outcome of the review

4.15. In case the employee does not agree with the performance rating as discussed with the manager, she/he can raise a request for reassessment. BUHR will facilitate the entire process by carrying out a detailed investigation of the case. The BU HR Head shall be involved to ensure the case is being reviewed in a fair, uninfluenced and justified manner

4.16. The below section highlights treatment in specific scenarios to facilitate easy understanding of performance assessment for such employees

S. No. Scenario Policy Guideline

1 For employees on authorized leave (including maternity leave) during the PMP cycle and have worked for less than or equal to three months (<=3) in a fiscal year

In such cases, there will be no self-review/ self-assessment for the employee. The employee’s the current Year End rating will be based on his/her previous year rating: a. If the previous year’s performance rating of the employee was BIC/ VC,

the default rating in current Year End review would be VC b. If the previous year’s performance rating of the employee was NR/BoP

and they have successfully completed their PIP, the rating suggested to be given in the current year-end review would be VC. However, if they have not successfully completed their PIP or if the PIP is incomplete or if

Talent Conclave Level Employee Group Committee Expected Outcomes

Talent Conclave 1* For BICs in Junior Management (Till Band B4-1)

Concerned LF member + BU HR SPOC

a. Sign-off on the Energy Curve b. Review and adoption of individual CAPs for BIC

employees c. Promotions to DGM and below bands to be signed

off by the concerned person (To be implemented during the compensation cycle) *BIC rated Global Campus Program trainees will also be discussed during their respective BU/SSU’s Talent Conclave 1

Talent Conclave 2 For BICs in Middle Management (B4-2 and B5-1)

BU Head & DRs + BUHR Head

Talent Conclave 3

For band B6-1 & above

CEO, CHRO and GMC members

a. Rating and Energy Curve Finalization

For band B6-1 & above (Talent Exchange to be conducted in October)

CEO, CHRO and GMC members

a. Promotions b. Other Talent Management programs




the PIP was not launched, the current Year End rating will be at the discretion of the manager

2 For employees on authorized leave (including maternity leave) during the PMP cycle and have worked for more than three months (>3) in a fiscal year

The employee will be given the option of conducting their self-review, and the rating will be decided via the Year End review process. If the employee is unable to conduct self-review, the following will be the next steps: a. If the employee’s previous year’s rating was BIC or VC, the rating in

current Year End review is suggested to be taken as VC b. If the previous year’s performance rating of the employee was NR/BoP

and they have successfully completed their PIP, the rating suggested to be given in the current Year End review would be VC. However, if they have not successfully completed their PIP or if the PIP is incomplete, or if the PIP was not launched, the rating will be at the discretion of the manager

3 For employees on unauthorized leave during the PMP cycle

a. There will be no self-review/self-assessment b. Manager shall review the employee’s performance and close

accordingly. The rating in the current year-end review would be at the discretion of the manager

5 For TAS managers

The performance Appraisal for all TAS Managers would be done by Tata Communications through PRISM as well as by the TAS Office through the online TAS-PAS system. The company performance rating will be used to compute 30% of the total performance rating while the TAS rating will be used to compute the balance 70%

6 For manager change

In cases where managers exit the system or get transferred, the Year End review of his/her team will be managed as per following guidelines: a. Exit/Transfer on or before 1st March

The new manager will complete the Year End review process of the team member wherein he/she can seek inputs regarding employee’s performance from the previous manager

b. Exit/Transfer after 1st March The Year End review of the team members should be completed by the exiting manager before his/her exit/transfer date, as part of handover process

7 For exiting employees

Employees who exit on or after 31st March should complete their PMP process on PRISM with their managers before their last working day

Note: It is important for the exiting employees to complete their self-assessment to be eligible for annual bonus payout

8 For employees with matrix reporting

For employees with matrix reporting, year-end review will be done by the reporting manager. The reporting manager should consult the matrix (functional) manager for additional inputs regarding the employee’s performance during the fiscal year

9 For role change during the fiscal year

a. Employee has worked for 9 months in previous role and 3 months in new role or vice versa The employee should change the weightage of old KRAs and modify to include KRAs of the new role in a 75(old KRA): 25(new KRA) ratio or vice versa

b. Employee has worked for 6 months in previous role and 6 months in current role The employee should change the weightage of old KRAs and modify to include KRAs of the new role in a 50(old KRA):50(new KRA) ratio




10 Global Campus Program trainees

Global Campus Program Trainees Performance Management will be a part of annual performance management. however, the process steps/timelines will be slightly different from the rest of the organization’s PMP cycle. GCP Trainees will not be a part of the Energy Curve.

5. ASSESSMENT POLICY GUIDELINES

5.1. Performance & Potential Assessment will be evaluated based on 4-point rating scale as mentioned below

PERFORMANCE It will be evaluated on the overall progress

against identified KRAs

POTENTIAL It will be evaluated on DRIVE attributes

Rating Summary Narration Rating Summary Narration

A Exceeds Expectations

Consistently achieves desired results and exceeds expectations most of the time

4 Evidence of strength on almost all components of DRIVE

Consistent demonstration of desired DRIVE attributes, acting as a role model for other employees leading to significant impact on the function’s performance & business improvement

B Meets Expectations

Consistently achieves desired results and exceeds expectations some times

3 Evidence of strength on most but not all components of DRIVE

Frequent demonstration of most DRIVE attributes, leading to team excellence

C Meets Most Expectations

Comes close to achieving desired results – is not consistent; Achieves results in some areas

2 Evidence of strength on only some components DRIVE

Intermittent demonstration of DRIVE attributes with some evidence of positive impact on personal performance

D Low Performance

Falls short in achieving desired results; Achieves results in one or two areas

1 Gaps in effective display of DRIVE

Rare demonstration of expected DRIVE attributes; this indicates the ability to demonstrate

5.2. Managers should refer to the below 16-block grid and table to assign a final rating (composite rating of performance and potential evaluation) to direct reports

5.3. The Energy Curve should comply with the distribution of 20% BIC, 65% VC and 15% NR+BoP

5.3.1. Diagonal cells in the grid - B3, C3 & C2 have 2 options to choose from – Top and Bottom

5.4. Energy Curve needs to be applied at a) Team b) BU and c) Company-level. At a BU level, the distribution needs to be applied at each sub-band separately

5.5. For team size < 30, it is still essential to differentiate talent though the distribution may not completely conform to the 20%-65%-15% distribution. However, manager cannot have more than 20% Best in Class (BIC) rated employees in their teams

5.6. The following shall be INCLUDED in the Energy Curve:

5.6.1. All eligible employees, viz. all full-time employees who have joined on or before 31st December and are on active rolls as on 31st March, Management Trainees, Graduate Engineering Trainees, Canadian Unionized employees (Refer eligibility criteria as per point 2)

5.6.2. Employees put on PIP during the current financial year (rated BIC/VC in previous performance cycle, or joined during that fiscal year) who exited during the year and involuntary performance exits of the current financial year




5.6.3. Graduate Engineering Trainees and Management Trainees

5.7. The following shall NOT be INCLUDED in the Energy Curve:

5.7.1 Employees who are not on active rolls of the company before 31st March will no longer be part of the PMP cycle and their ratings will not be included in the Energy Curve

5.7.2 Global Campus Program trainees

5.7.3 Consultants/ temporary employees, fixed-term contractual employees, advisors, non-management employees, off roll employees/ associates

5.7.4 Employees who have joined post 31st December of the financial year

5.8. Guidelines for Best in Class (BIC) rating:

5.8.1 All BUs need to comply to the prescribed BIC percentage for all sub bands & not only at overall BU/SSU level

5.8.2 If any people manager has been in bottom quartile twice (or more) and has never been in top quartile in the recent three ESAT scores, then he/she cannot be rated BIC

5.8.3 The performance rating in the year immediately after promotion to B6-1 or above level cannot be BIC. At these senior levels, it would take employees ample time to raise the performance to meet the requirements of the new (higher) role

6. EXCEPTION TO THE POLICY

Any exception to this policy will require written approval from the respective GMC member and CHRO

ANNEXURE: Key Definitions

a. Self-Assessment

Self-Assessment is an opportunity for the employee to evaluate his/her performance against set KRAs – highlighting key achievements with relevant instances to demonstrate the quality, quantity and impact of work done during the fiscal year.

b. Best in Class (BIC)

An employee who strives for functional and company goals instead of only focusing on his individual goals. Goes above and beyond individual focus areas and delivers optimal results in the defined timeframe and quality parameters

c. Career Action Plan (CAP)

CAP is designed to support managers to manage aspirations and careers of their Best in Class rated team members in line with the short to long term business imperatives.

d. Talent Conclaves

Talent Conclaves are annual talent review meetings held to provide insight into top talent across organization. Besides Energy Curve finalization, these meetings mainly focus on critical future talent initiatives for the Best in Class employees. These are the most critical part of the PMP process, with participation from the GMCs, CHRO, CEO, BU HR Heads in various combinations for different categories of the conclaves. These set the stage for the process of Energy Curve finalisation.

e. Energy Curve

Energy Curve is the histogram distribution of the Performance-Potential rating showing the percentage/number of employees in the respective rating categories of Best in Class, Vital contributor, and Need Revving & Bottom Performer. At this step, function leaders including L3 Managers, LOB Head and Business Head review and normalize the energy curve.

f. Reassessment Process

The Reassessment Process is a platform provided to the employees to record and address their strong dissatisfaction related to their performance rating

g. Performance Improvement Plan (PIP)

Performance Improvement Plan (PIP) is a focused development plan to facilitate improvement in performance of the under/poor performers within the organization.

Documents

Global PMP Policy - SuccessFactors · Global PMP Policy | FY 2016-17 1. ... The process is applicable to all full-time employees of Tata Communications Ltd, as per the eligibility