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PERFORMANCE MANAGEMENT
SYSTEM
State Mining Corporation Limited
2017
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3
TABLE OF CONTENTS ACRONYMS __________________________________________________________________ 7
DEFINITIONS _________________________________________________________________ 8
Chapter 1: Introduction _______________________________________________________ 11
1.1 Aims ________________________________________________________________________ 11
1.2 Objectives ____________________________________________________________________ 12
1.3 Policy ________________________________________________________________________ 12
1.4 Definition of Performance Management System _____________________________________ 13
1.5 Linkage between Organisational and Individual Performance __________________________ 13
1.6 Key issues underpinning the success of PMS ________________________________________ 14
Chapter 2: Annual Compact ____________________________________________________ 15
2.1 Objectives ____________________________________________________________________ 15
2.2 Principles ____________________________________________________________________ 15
2.3 Compact structure _____________________________________________________________ 16
2.4 Assignment of weight __________________________________________________________ 18
2.5 Key considerations for setting targets ______________________________________________ 18
2.6 Finalisation and signing of compacts _______________________________________________ 19
2.7 Timeframe of process ___________________________________________________________ 19
The table below provides the calendar of activities comprising the compact
process: _____________________________________________________________________ 19
2.8 Performance review, reporting and monitoring ______________________________________ 19
2.9 Performance evaluation _________________________________________________________ 20
2.10 Performance based incentives ___________________________________________________ 21
Chapter 3: Team Appraisal System ______________________________________________ 33
3.1 Introduction __________________________________________________________________ 33
3.2 Objectives ____________________________________________________________________ 33
3.3 Principles ____________________________________________________________________ 33
3.4 Applicability __________________________________________________________________ 35
3.5 Performance targets at various levels ______________________________________________ 35
3.5.1 Performance targets at company level _________________________________________ 36
3.5.2 Performance targets at department level _______________________________________ 37
3.5.3 Performance targets at division/Unit level ______________________________________ 37
3.6 Performance review, monitoring and reporting ______________________________________ 37
3.7 Process timeline _______________________________________________________________ 38
3.8 Performance evaluation _________________________________________________________ 38
3.9 Performance based incentives ____________________________________________________ 41
3.9.1 Annual bonus ______________________________________________________________ 41
Chapter 4: Employee Appraisal System __________________________________________ 45
4.1 Introduction __________________________________________________________________ 45
4
4.2 Objectives ____________________________________________________________________ 45
4.3 Applicability __________________________________________________________________ 45
4.4 Definitions ___________________________________________________________________ 46
4.5 Employee Appraisal System Cycle _________________________________________________ 49
4.6 Performance planning and target setting ___________________________________________ 51
4.6.1 Supervisor’s Role _______________________________________________________ 53
4.6.2 Employee’s Role ___________________________________________________________ 53
4.6.3 Discussion of Barriers and Help Need _______________________________________ 54
4.6.4 Discussion of Priorities ___________________________________________________ 54
4.6.5 Categorization of employees ______________________________________________ 54
4.6.6 Work plans ____________________________________________________________ 55
4.6.7 Performance dimensions _________________________________________________ 56
4.6.8 Performance weightages _________________________________________________ 56
4.7 Performance monitoring and coaching _____________________________________________ 57
4.7.1 Supervisor’s Role ___________________________________________________________ 58
4.7.2 Employee’s Role ___________________________________________________________ 58
4.8 Performance review and evaluation _______________________________________________ 58
4.8.1 Role of Employee (appraisee): ________________________________________________ 59
4.8.2 Role of Appraiser ___________________________________________________________ 59
4.8.3 Role of Reviewer:___________________________________________________________ 59
4.8.4. Role of HR Manager: _______________________________________________________ 60
4.8.5 Role of Performance Evaluation and Review Committee: ___________________________ 60
4.8.6 Mechanism for appeal ___________________________________________________ 60
4.8.7 Performance Ratings ________________________________________________________ 60
4.9 Performance rewards and development____________________________________________ 61
4.9.1 Performance based incentives ________________________________________________ 62
4.9.1.1 Annual bonus __________________________________________________________ 62
4.9.1. 3 Other incentives linked to performance _______________________________________ 62
4.10 Administrative and management issues ___________________________________________ 63
4.10.1 Extension to probation period _______________________________________________ 63
4.10.2 Eliminating rater error ___________________________________________________ 63
4.10.3 Case of employee transfers _______________________________________________ 63
4.10.4 Case of new appointees __________________________________________________ 64
4.10.5 Case of retirement/resignation ____________________________________________ 66
4.10.6 Case of absence from work _______________________________________________ 66
4.10.7 Common Rating Errors _____________________________________________________ 66
4.11 Handling Performance Disputes Plan _____________________________________________ 67
4.12 Employee Appraisal Feedback ___________________________________________________ 68
4.13 Provisions for CEOs ___________________________________________________________ 68
4.13.1 Performance Dimensions _________________________________________________ 68
4.13.2 Performance weights ____________________________________________________ 69
4.13.3 Performance evaluation __________________________________________________ 69
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4.13.4 Performance Rewards ___________________________________________________ 70
List of tables
Table 1: Timeframe of compact process ____________________________________________ 19
Table 2: Periodic reporting timeframe ______________________________________________ 20
Table 3: PBVA payout against compact achievement _______________________________ 22
Table 4: Process timeline _________________________________________________________ 38
Table 5: Performance weights at three levels _______________________________________ 39
Table 6: Performance rating workout for the Unit ___________________________________ 39
Table 7: Annual bonus payout against compact achievement ________________________ 41
Table 8: Example of creation of bonus pool fund ____________________________________ 42
Table 9: Target Setting Authority __________________________________________________ 52
Table 10: Categorization of employees _____________________________________________ 54
Table 11: Performance Weightages ________________________________________________ 57
Table 12: Performance rating guide ________________________________________________ 61
Table 13: Performance Appraisal Authority _________________________________________ 61
Table 14: Performance weights for CEO ____________________________________________ 69
Table 15: CEO's performance workout _____________________________________________ 69
Table 16: PBVA payout for CEOs based on final performance rating _________________ 70
Table 17: Ability to Pay Index (API) ___________________ Error! Bookmark not defined.
Table 18: Performance weightage by employee category and levels of performances
____________________________________________________ Error! Bookmark not defined.
Table 19: Performance based increment (PBI) _________ Error! Bookmark not defined.
List of figures
Figure 1: Performance incentives linked to annual compact __________________________ 21
Figure 2: Target setting and cascading process flow ________________________________ 35
Figure 3: Annual bonus payout at functional Unit level ______________________________ 43
Figure 4: Employee appraisal system cycle _________________________________________ 50
Figure 5: Employee appraisal process ______________________________________________ 50
Figure 6: Annual salary increment computation model _ Error! Bookmark not defined.
Figure 7: Performance at different levels ______________ Error! Bookmark not defined.
Forms
Annexure I: Annual compact format 25 Annexure II: Annual Performance Report Forms (Organizational Level) 26-31
Annexure III: Appraisal Form for probationary employee 63
Annexure IV: CEO’s Performance Evaluation Survey Forms 98-72
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Annexure V: Employee Performance Appraisal Forms for Executive Group (E3-E1) 73-81
Annexure VI: Employee Performance Appraisal Forms for Managerial Group (M3-M1) 82-90
Annexure VII: Employee Performance Appraisal Forms for Supervisory Group (O3-S1) 91-99
Annexure VIII: Employee Performance Appraisal Forms for Operational Group (O7-O4) 900-104
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ACRONYMS
AGM Annual General Meeting
AMI Annual Increment Multiplier
API Ability to Pay Index
ASIM Annual Salary Increment Model
CEO Chief Executive Officer
CPBD Corporate Planning and Business and Development
DHI Druk Holding and Investments Limited
DCC DHI Controlled Company
DOCs DHI Owned Companies
EAS Employee Appraisal System
EAF Employee Appraisal Forms
ESP Elementary Service Personnel
IBI Inflation Based Increment
KPI Key Performance Indicator
MOF Ministry of Finance
OPEX Operating Expenditure
PAT Profit After Tax
PBI Performance Based Increment
PBBS Performance Based Bonus System
PBIS Performance Based Incentive System
PBVA Performance Based Variable Allowance
PLIS Performance Linked Incentive System
ROA Return on Assets
ROCE Return on Capital Employed
ROE Return on Equity
ROI Return on Investments
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DEFINITIONS
Annual Compact A performance agreement containing key performance areas
and targets signed between the company and DHI (Shareholder) at corporate
level. It is used to assess performance at the Corporate level.
Board - Means the Board of Directors of State Mining Corporation Limited.
Board or Board of Directors - The chairman and other members of the board of
directors of the SMCL within the definition of the Companies Act of the kingdom
of Bhutan 2016.
Chief Executive Officer - Means Chief Executive Officer of the SMCL
Company – State Mining Corporation Limited incorporated and registered under
the Companies Act of Bhutan, 2000.
Core functions – The functions (manufacture of goods and/or provision of
services), for which a company primarily exists.
Compact Guidelines for DHI Companies - Document prepared and issued by
DHI, which among others, provides guidelines on the annual compact target
setting, evaluation and reward system for DHI owned companies.
Compact Plus – A document, which details out the performance areas and
targets for various functional units in a company. It is prepared in order to
cascade targets from the annual compact among various functional units.
Besides targets cascaded from the compact, this document shall contain
additional targets assigned by the board or identified by the management.
DHI linked company – A company, in which DHI’s ownership is 50% or less of
its shares.
DHI Owned Company– A company, which is fully owned by DHI.
Functional unit – Departments, divisions, sections and units as per its
organizational structure.
Head - A personnel designated officially by the CEO to head a department or
division in the company.
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Inflation- A sustained increase in the general level of prices for goods and
services is called inflation. It is measured as an annual percentage increase.
Inflation figures shall be taken from the data published by National Statistical
Bureau of Bhutan.
Key Performance Indicators (KPI) – A set of financial as well as non-financial
quantifiable indicators a company uses to measure the performance of the
company in meeting their strategic objectives.
Management - An executive body or panel of officials of the company responsible
for making day-to-day management decisions.
Performance at Corporate level: The performance compact signed by a
company with DHI board to assess its performance at the corporate level.
Performance at Company level: Targets at this level shall consist of relevant
targets extracted from the annual compact and any additional targets that the
management may decide. Performance at the Company level shall be applicable
for units that provide support functions services such as planning and
monitoring, accounts and internal audit.
Performance at Department Level: Cascading of the compact targets to
departments that run independently or are involved in core functions shall be
the basis for assessing performance at the Department level.
Performance at functional unit Level: The performance targets set at the
department level shall be further cascaded down to the various constituent
divisions and units, which shall form the performance target at the Unit level.
Probation Period Means the period of 6 (six) months or such other extended
service period commencing from the date of appointment up to the date of
confirmation in service.
Support functions –Functions such as corporate planning, Internal audit,
finance and accounts, which are not the core functions of a company, but provide
support services.
Work plan - Performance targets agreed and signed between an employee and
his supervisor. The work plan shall be derived from the ‘mini-compact’ of the
unit to which an employee is attached.
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Work-related competencies -Work related competencies are knowledge, skills
and attitudes that an employee is expected to possess to successfully perform
his job.
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Chapter 1: Introduction
State Mining Corporation is state owned corporation with the commercial as well
as the social mandates. As a commercial company, it needs to sustain its growth
through various strategies. The success of the company will be determined by
the type of systems and process that are put in place in line with the vision and
mandates of the company.
The employees are the most valuable assets of the company and need to be
managed strategically. Therefore, it is imperative to have proper policies and
systems to attract and retain the right talents. The PMS Guideline is required to
frame and institutionalize the Performance Management System based on the
Annual Compact cascading to functional Departments/Divisions, Units and
individual employees.
Performance management system (PM) is a goal-oriented process directed toward
ensuring that organizational processes are in place to maximize the productivity
of employees, teams, and ultimately, the organization. This Performance
Management System entails a framework that describes and represents how the
Company’s cycle and processes of performance planning, monitoring,
measurement, review, reporting and improvement will be conducted, organized
and managed, including determining the roles of the different role players.
Performance appraisal occurs at a specific time, is a dynamic, ongoing,
continuous process. Every person in the organization is a part of the PM S. Each
part of the system, such as training, appraisal, and rewards, is integrated and
linked for the purpose of continuous organizational effectiveness.
Performance Management, therefore, is not only relevant to the organization as
a whole, but also to the individual employees in the organization. Given this
background, it is important that a framework for Performance Management be
established, implemented and monitored.
This framework therefore describes how the SMCL’s performance process, for
the organization as a whole will be conducted, organized and managed. The
different performance appraisal forms have been designed for different levels of
employees which are relevant and linked to their functional roles and ensure
objective assessment of performance.
1.1 Aims
This system aims to:
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Clarify the processes of implementing the performance management
system in line with the organizational goals and objectives;
Clarify definitions and standards for performance management;
Ensure compliance with the relevant legal framework;
Demonstrate how the system will be conducted, organized, operated and
managed from the planning stage up to the stages of performance review.
Define roles and responsibilities;
Determine the frequency of reporting; and
Promote accountability and transparency of performance management
within the Company.
1.2 Objectives
The main objectives of the Performance Management System are to:
Translate the Company’s vision, mission and mandates into clear
measurable outcomes, indicators and performance levels that define
success;
Ensure the implementation of the plans and programmes;
Provide a tool for assessing, managing and improving the overall health
and success of business processes and systems;
Ensure efficient utilization of resources;
Create a culture of best practice;
Promote accountability;
Include measures of quality, cost, customer service and employee
alignment, motivation and skills to provide an in-depth and predictive
Performance Management System; and
Assess performance of the Company and its employees.
1.3 Policy
The policy on performance management system (PMS) at SMCL is to promote a
dynamic work culture in which employees are enabled to perform to the best of
their abilities. PMS shall be strictly considered as a whole work system toward
improving employee performance and sustaining effectiveness to meet the goals
and objectives of SMCL.
Clarify and translate annual company targets across various business
Units and identify and assign employees their performance targets;
Identify performance improvement areas across the business Units and for
individual employees so that development needs are appropriately
determined; and
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Assess, rationalize and evaluate systematic performance measures to
recognize and reward annual accomplishments, and to serve as a basis for
administering appropriate human re- source actions.
1.4 Definition of Performance Management System
Performance Management System is a strategic approach to management, which
equips leaders, managers, employees and stakeholders at different levels with a
set of tools and techniques to regularly plan, continuously monitor, periodically
measure and review performance of the organization in terms of indicators and
targets for efficiency, effectiveness and impact. This system will therefore in turn
ensure that all the leaders, managers and individuals in the company are held
accountable for their actions which should bring about improved service delivery
and value for money.
The Performance Management System must:
Have appropriate performance indicators, including outcomes and impact,
with regard to company’s priorities and objectives set out in the Annual
Compact.
Have measurable targets
Reflect baseline information
Comment on how to improve performance
Monitor performance
Measure and review performance periodically
Aim to improve performance
Establish a process of regular reporting
Provide an early warning system to identify areas of poor performance
Performance management is potentially the area of management that can make
a significant contribution to organizational and individual performance. The
system is designed to improve strategic focus and organizational effectiveness
through continually seeking to improve the performance of the company as a
whole and the individuals in it.
1.5 Linkage between Organisational and Individual Performance
The performance of the organization is integrally linked to that of staff. It is
therefore important to link organizational performance to individual performance
and manage at the same time.
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As per the CG Code and Policy of DHI, the company is mandated to sign Annual
Performance Compact (APC) with DHI that include performance objectives and
targets which must be practical, measurable and based on key performance
indicators set out in APC.
Effectively, the organizational scorecard is executed by the
departments/divisions, Unit and employees of the company. This process is then
cascaded down throughout the hierarchy of each of the department in the
company. The heads of departments/division sign compact with the Chief
Executive Officer, Unit/Unit head with the department/division head and
individual performance plans with the Unit heads.
Each employee’s job description and work plan must be aligned with the
individual performance plan of the head of the department. In this way all
employees are working towards a common goal. Therefore, the management
must create an environment, so that the employees can deliver the objectives
and the targets set for them in their performance contracts and job descriptions.
The above figure illustrates the link between the organizational performance
management and individual performance management. Once the organizational
objectives and targets have been set it then cascaded down to the relevant
functional departments, Units and individuals.
1.6 Key issues underpinning the success of PMS
The Board and top management to drive the system
A need for clarity regarding the strategy of the company so that these can
be used to determine the objectives of the company, each business Unit
and each employee.
Channels of communication needs to be in place
A clear understanding and appreciation of the value of having a
performance measurement system.
The development of employees identified through the performance
management process and providing learning opportunities through the
process of planning, coaching and reviewing performance.
Performance management is an ongoing process not once a year event of
conducting a performance review.
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Chapter 2: Annual Compact
The company shall prepare and sign the Annual Compact with DHI
(Shareholder). The compact shall be a comprehensive document detailing
annual performance targets, review and evaluation processes and linkage
between the final evaluated ratings of compacts to performance based incentives.
2.1 Objectives
The key objectives of the annual compact are:
a) To provide company with a framework for annual target setting,
reviewing and evaluation;
b) To streamline and delineate responsibilities in the compact process;
c) To enable a regular reporting through use of standardized reporting
structure and formats; and
d) To provide linkages between the performance of company (as
determined by the evaluation of their compact) and the payout of
performance based incentives.
2.2 Principles
Setting of annual performance targets and evaluation of the company’s
performance shall be guided by the following principles:
a) Non-financial indicators and metrics shall only be included to the
extent that they:
i) Support the achievement and realization of financial indicators;
ii) Provide evidence on the sustainability of projects. Projects that
are not viable/feasible should not be included in the compact;
iii) Explain (counter-balance) financial performance indicators;
and
iv) Relate to the implementation of government policies.
b) Performance targets in the annual compact shall be closely aligned to
the Corporate Strategic Plans and Five Year Investment Plans of
company.
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c) DHI and company shall together identify and finalize Key Performance
Indicators (KPI) that best measure the performances of company; and
d) Performance target setting, monitoring, evaluation and rewarding
shall be an iterative process.
2.3 Compact structure
A compact shall generally consist of the following parts:
a) Background of the company;
b) Financial compact;
c) Non-financial compact; and
d) Write-up on the compacts and KPIs
Each part of a compact is elaborated below:
i) Background
This Unit of the compact shall provide the background of the company
focusing on its long-term goals, its strategic objectives and vision and
mission. The write-up in this Unit shall provide a clear perspective of the
financial and non-financial compact that follow.
ii) Financial compact
A financial compact shall normally consists of the following KPIs:
Revenue/Income
Profit After Tax (PAT)
Return on Equity (RoE)
Return on Assets (RoA)
Return on Investments (RoI)
Return on Capital Employed (ROCE)
List of crucial controllable costs
Any other company specific indicators
The company may select KPIs on the basis of mutual discussion and
decision between the board and management of the company and the DHI.
iii) Non-financial compact
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A non-financial compact shall contain KPIs and targets that are relevant
and strategically important to the company. KPIs shall be listed under the
following sub-categories:
a) Customer Service: This shall include indicators that are intended to meet
current and anticipated needs of the customers regarding the quantity and
quality of goods and services offered by company. Wherever relevant,
indicators related to customer service assessment and plans for
improvement of key services of company shall be included.
b) Organizational management: This shall include indicators that are
intended to improve internal systems and processes, including review and
development of process and systems manuals, review and development of
rules and polices and conducting organizational development exercises in
the company.
c) Policy directed indicators: This shall include targets received from the
government. Such targets are normally gathered by the Ministry of Finance
(MoF) and passed on to the relevant company through DHI.
Besides the common performance areas elaborated above, company may
have other performance areas and targets that are relevant and
strategically important to achieve during a particular performance period.
iv) Write-up on the KPIs
This Unit of the compact shall, among others, include the following:
a) Background of the KPIs/targets: The write-up shall provide a brief
background on the set targets stating clearly why the target is important
and how the company anticipates achieving the targets.
b) Risk(s) associated with the achievement of targets: The write-up shall
identify any uncontrollable risk(s) and challenges that the company is
expected to face in achieving its targets.
c) Methods and formula for evaluating targets: The write-up shall clearly
identify the methods and formula for evaluating and rating the
achievement of targets at the end of the year, including method for
prorating of scores. The clarity of the evaluation process will ensure that
the assessment and assignment of ratings is as objective as possible.
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2.4 Assignment of weight
a) An annual performance compact shall be evaluated out of 100 i.e. it
shall carry a total weight of 100%. The total weight shall be divided
between the financial and non-financial compacts. Break up of actual
weight between financial and non-financial compacts shall be
determined in close consultation with DHI during the annual compact
negotiation process and shall depend, among other factors, on the
priorities of the respective indicators.
b) Principally, weights shall be assigned as follows:
i) Financial compact shall normally be assigned with the highest
weight (50 to 70%) as achieving financial targets is normally the
most important goal and the targets are relatively more objective
in terms of their measurement and verification.
ii) Non-financial compact shall be assigned with the remaining
weight (30-50%), as targets in a non-financial compact are
relatively more subjective in terms of their achievement and
assessment.
iii) Within non-financial KPIs and targets, a small weight (10-20%)
shall be assigned to targets and indicators related to
organizational management. Such targets are designed to alert
and improve the internal environment, which require redressal.
iv) The remaining weight (20% -30%) shall be assigned to other non-
financial and policy-directed indicators.
2.5 Key considerations for setting targets
a) As stated above, compact targets shall be closely aligned to the Strategic
Plans and Five Year Investment Plan of the company.
b) Generally, targets on variable indicators (such as PAT and Revenue) shall
be set on the basis of previous period actual achievement plus a
reasonable growth rate. In doing so, however, if the previous year happens
to be an outlier (not a normal year) then an average of the immediate past
three years or periods shall be considered.
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c) Targets for variables that are non-quantifiable in terms of measurable
Units may be set in terms of percentage of completion by a certain
timeframe.
2.6 Finalisation and signing of compacts
The chairman and CEO of DHI and the SMCL shall sign the approved compact.
2.7 Timeframe of process
The table below provides the calendar of activities comprising the compact
process:
Table 1: Timeframe of compact process
TIMEFRAME ACTIVITIES
November Initiate the preparatory process and send information to departments
and divisions reminding them to initiate the process and complete the
draft non-financial and financial compacts.
December Review the achievement of annual compact of the company.
Finalize and present the draft compact to the board for finalization and submit to DHI.
January/February By mid-January negotiation and finalization of financial and
nonfinancial compacts with DHI.
March/April
By mid-March, financial and nonfinancial compacts for the previous year is evaluated by the DHI and SMCL Board during AGM.
By April, performance based incentives for the previous year are finalized and announced.
July Review achievement of the compact till June 30 and discuss issues
and submit to Board for finalization and discussion during mid-term review.
August DHI together with the respective Board shall conduct mid-term review
of the compact. Besides taking a stock of the compact, the midterm
review shall also allow company to reprioritize activities.
2.8 Performance review, reporting and monitoring
a) The approved and signed annual compact shall be the guiding
document for the performance review of company.
b) On a mutually agreed date in July-August, mid-term review of compact
is undertaken, whereby company present the status of their compact
to DHI Board Committee for Performance Management (BCPM). During
the mid-term review, company can reprioritize the targets subject to the
submission of strong justifications. The BCPM shall allow for the
reprioritization and revision of targets only under special
circumstances. In making revisions, the weights shall be reassigned or
additional points allocated in case of additional initiatives.
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c) Company shall report to DHI and the Board, on a quarterly, half-yearly
and annual basis, on the progress of the execution of the compact and
submit performance reports in prescribed format to DHI.
Reporting structures are shown in Annexure I: Sample copy of a
performance report.
d) The same information reported in the quarterly report by management
to Board shall be submitted to DHI Board.
e) The board shall use the progress report to review and monitor the
performance of the company.
f) The company shall periodically report to DHI as per the schedules given
below:
Table 2: Periodic reporting timeframe
PERFORMANCE
PERIOD
DELIVERABLES REPORTING
DEADLINE
1st Quarter
1st quarter Accounts
Compact deliverables that are due
within the first quarter
End of April
2nd Quarter
Half-yearly accounts
Half yearly performance report
Compact deliverables that are due
within the first half
End of July
3rd Quarter
Accounts for 3rd quarter of the year
Compact deliverables that are due
within the 3rd quarter
End of October
4th Quarter
Annual accounts
Annual performance report
Compact deliverables
End of March of
the following
year
2.9 Performance evaluation
Evaluation and rating of performance compact is an important step in the
performance management system of company and shall be carried out as
per the process detailed below.
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a) Annually, board shall evaluate and provide performance score on
compact of the company. The board shall present the evaluation and
score to DHI during the AGM;
b) The compact shall be evaluated based on the formula and methodology
stated in “The Blue Book: Enhancing Performance Management
System” the guideline issued by DHI.
2.10 Performance based incentives
The annual compact evaluation rating shall be linked to corporate level
incentives as promulgated and approved by DHI from time to time. Currently,
the evaluation of compact is linked to performance based variable allowance
(PBVA).
Figure 1: Performance incentives linked to annual compact
ANNUAL COMPACT
PERFORMANCE BASED VARIABLE ALLOWANCE
(PBVA)
CAP < 75% = NO PAYOUTCAP 76% - 94% = PAYOUT TO BE PRORATEDCAP > 95% = FULL PAYOUT
PBVA shall be determined based on the achievement of the Annual Compact
CAP: Compact Achievement Point
ANNUAL SALARY INCREMENT
PERFORMANCE BASED INCREMENT
INFLATION BASED INCREMENT
These performance-based incentives are elaborated below:
i) Performance based variable allowance (PBVA)
a) For regular employees PBVA is currently set at 15% of their basic salary
per month.
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b) For contract employees, PBVA shall be paid only if it is mentioned in their
contract agreements.
c) For Chief Executive Officer, PBVA shall be 25% of the basic pay or as
specified in their contract agreements. The PBVA shall be calculated based
on the total performance rating points obtained by a CEO, which shall
consist of 20% for leadership performance rating and 80% for compact
achievement.
d) Board and DHI BCPM shall jointly decide the payment of PBVA during the
Annual General Meeting. The approval of PBVA for employees, which is
based on the final rating assigned to a compact, shall be as follows:
Table 3: PBVA payout against compact achievement
Compact
Achievement
PBVA payout
CEO Employees
> 95.00 Full (25% or as specified in
their contracts) 15%
76% - 94% Prorate 1.25% for every point
of achievement
Prorate 0.75% for every point
of achievement
< 75.00% 0 0
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Annexure I: Annual compact Financial & Non-financial
Company: State Mining Corporation Limited
Reporting Period: January- December, 2017
1. Financial compact (xx% Weight)
Sl. No. Financial Key Performance
Indicators
Previous Year
Actual
Current Year
target Weight (%)
Total
2. Non-financial Targets (xx% weight)
Sl. No. Performance Indicators Target/Output Deadline Weight (%)
A. Core Activities (X%)
B Other activities (X%)
Total
3. Organizational Management/Corporate Governance (XX% Weight)
Sl. No. Performance Indicators Target/Output Deadline Weightage
Total
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Detailed write-up on the compacts targets
1. Financial targets 1.1 Total Revenue of Nu. xx Million
a. Background and details
Main products for revenue generation for the company
Sales revenue projected is based on disposal target set for each project/mine/quarry
The mandate of the company b. Risk associated
c. Methods/formula for measuring this KPI
1.2 Profit After Tax of Nu. XX Million
a) Background and details b) Risks associated c) Methods/formula for measuring this KPI
1.3 Selected cost indicators
a) Risks associated b) Methods/formula for measuring the above KPI
2. Non-Financial Targets A. Core Activities
a) Background and details b) Risks and hindrances c) Measures and outputs
B. Other activities
a) Background and details
b) Risks and hindrances c) Measures and outputs
3. Organizational Management/Corporate Governance
a) Background and details
b) Risks and hindrances c) Measures/outputs
(Chairman) (Chairman) DHI SMCL
(Chief Executive Officer) (Chief Executive Officer) DHI SMCL
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Annexure II: Annual Performance Report
Annual Performance Report YYYY
Reporting Period: From January 1 to December 31, YYYY
A Company State Mining Corporation Limited
B Line of Business
C Share Capital in million Nu.
E Reserve and Surplus in million Nu.
F Debt if any in million Nu.
G Total Assets (Net Book Value) in
million Nu.
H Total No. of Employees
Regular:
Contract:
Wage:
I DHI Shareholding in %
1. Performance as per Annual Compact
1.1. Financial Performance
Sl.
No. Financial KPI
Previous
Year
Actual
Current
Year
Target
Current
Year
Actual
Variance in % Remarks
(Provide
explanation in
areas where
variances are
beyond +-5%)
From
Previous
Year
Actual
From
Current
Year
Target
1 Revenue in
million Nu.
2 Profit After Tax
in million Nu.
3
Return on
Equity (PAT/
(Capital +
Reserve))
4
Selected cost
heads as
reflected in the
compact
26
1.2. Customer Service
1.3. Corporate Governance
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
1.4. Additional Targets Assigned by RGoB
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
1.5. Negative List
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
27
2. Operational Performance ( not captured in the above tables)
Sl.
No. KPI
Previous
Year
Actual
Current
Year Target
Current
Year
Actual
Variance in % Remarks (Provide
explanation in areas
where variances are
beyond +-5%)
From
Previous
Year
Actual
From
Current
Year Target
3. Additional Financial Information (figures in million Nu.)
Sl. No.
Particulars Previous
Year Actual
Current Year
Budget
Current Year
Actual
Variance in %
Target for
Following Year
Remarks (Provide
explanation in areas where
variances are beyond +-5%)
From Previo
us Year
Actual
From Current
Year Budget
1
Total Expenditure: A) Current
(Revenue Exp.)
B) Capital
2 Profit Before Tax
3 Tax
4 Total Dividend Declared
4. Future Investment Plans and its Financing
4.1. Future Investment Plans (For next 5 years)
Sl.
No. Activities
Amount (million
Nu.)
28
4.2. Financing for the Investment Plans1 (figures in million Nu.)
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Total Investment
Equity Financing (not
applicable to FIs)
Loan Financing (not
applicable to FIs)
5. Issues and Recommendations
5.1. Liquidity risk, foreign exchange risk, operational risk if any and risk
management system in place
5.2. Off balance sheet items which are deemed material and require disclosure
5.3. Significant Audit Observations and action taken if any
5.4. Other Issues: (Highlight the constraints/management issues/challenges faced during
the current reporting period if any)
5.5. Recommendations:(Include your recommendations/remedial actions to address the
problems/issues)
6. Future plan for improvement of customer services (for service-oriented companies)
7. Activities under Corporate Social Responsibility
8. Additional information for Financial Institutions only:
Particulars Previous
Year Actual
Current
Year Actual
Target for
Following Year
Total Deposit in million Nu.
% Growth in Deposits
Total Loans/Advances
% Growth in loan
Total NPL in million Nu.
% of NPL to total Loan Portfolio
Interest from Loans/Advances
Total Clients
29
Particulars Previous
Year Actual
Current
Year Actual
Target for
Following Year
Avg. Client/Employee Ratio
Loan to Fund Ratio (equity + liabilities)
Capital Adequacy Ratio
Credit to Deposit Ratio
9. Employee details as per the table provided:
RCSC Equivalent Gr. Company Grade No. of Employees
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
GSC-I
GSC-II
Contract
ESP
Total: Bhutanese:
Non-Bhutanese:
Daily Waged: Bhutanese:
Non-Bhutanese:
GRAND TOTAL
10. Attachments: Audited Financial Statements (Profit & Loss Account, Balance Sheet,
Cash flow statement, Auditors’ Report & Directors’ Report)
30
Half Yearly Performance Report YYYY
Reporting Period: From ……………………………to ……………………………
Company: State Mining Corporation Limited
1. Performance as per Annual Compact
1.1. Financial Performance
Sl.
No. Financial KPI
Previous
Year
Actual
Current
Year
Target
Current
Year
Actual
Variance in % Remarks
(Provide
explanation in
areas where
variances are
beyond +-5%)
From
Previous
Year
Actual
From
Current
Year
Target
1 Revenue in
million Nu.
2 Profit After Tax in million Nu.
3
Return on
Equity (PAT/
(Capital +
Reserve))
4
Selected cost
heads as reflected in the
compact
1.2. Customer Service
1.3. Corporate Governance
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
31
1.4. Additional Targets Assigned by RGoB
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
1.5. Negative List
Sl. No. Activities Actual Progress Remarks (Explanations for
underachievement if any)
2. Operational Performance ( not captured in the above tables)
Sl.
No. KPI
Previous
Year
Actual
Current
Year Target
Current
Year
Actual
Variance in % Remarks (Provide
explanation in areas
where variances are
beyond +-5%)
From
Previous
Year
Actual
From
Current
Year Target
3. Issues and recommendations
3.1. Issues: (Highlight constraints/management issues/challenges faced
during the current reporting period)
3.2. Recommendations: Include your recommendations/remedial
actions to address the problems/issues)
3.3. Additional comments:
4. Attachments: Unaudited Financial Statements (Profit & Loss Account,
Balance Sheet, Cash Flow Statement)
1. Previous Period Actual refers to the preceding half yearly actual.
32
2. Current Period Target ideally refers to 50% of the Annual Target. However,
company can decide what should be the half yearly target and report
accordingly.
3. Current Period Actual refers to the current half year actual.
4. Previous Period Actual refers to the preceding half year actual.
5. Current Period Target refers to 50% of the Annual Target. However,
company can decide what should be the half year target and report
accordingly.
6. Current Period Actual refers to the current half year actual.
33
Chapter 3: Team Appraisal System
3.1 Introduction
Once a compact has been finalized and signed, it is cascaded down to various
functional Units (departments, divisions, Units, Units) and eventually to
individual employees in the company.
3.2 Objectives
The objectives of managing and rewarding the performance of functional Units
are as follows:
a) To help the implementation and management of compact signed with DHI
and company board;
b) To cascade the performance areas and targets among relevant functional
Units;
c) To enhance employee motivation, morale and loyalty by providing a sense
of accomplishment and a performance based incentive system;
d) To improve inter-departmental cooperation by aligning departmental
objectives with organizational objectives;
e) To distinguish between the high performing units and non-performing
units;
f) To reward high performing units, and address any issues behind non-
performing Units;
g) To enable the Board to evaluate the performance of the company and to
decide on the bonus payout limit based on the performance at the
company level; and
h) To link the performance of functional Units to the payment of Annual
Bonus.
3.3 Principles
For the company to meet its targets set in the annual compact, each department
must meet its own targets, which in turn, is possible only if the divisions/Units
under each department are able to meet their own targets. Thus, the targets for
most performance areas are set in such a way that if the Units/divisions/Units
achieve their targets, then the departments will also achieve their targets,
ultimately leading to the company meeting its annual targets.
Setting of annual targets for various functional Units and evaluating their
34
performances shall be guided by the following principles:
a) Once the company signs its annual compact with DHI, the targets shall be
cascaded to various levels and functional Units within the company.
b) The Compact plus document shall contain not only targets cascaded from the
annual compact, but also additional targets assigned by the board or
identified by the management.
c) The finalization of performance targets for various functional units shall be a
two way process as show in exhibit below. It shall be a bottom-up process as
the company’s annual compact is based on a close consultation with its Units.
On the other hand, it shall also be a top-down process as the targets agreed
in a compact must be cascaded down to relevant Units, and board may
identify target that is/are not part of the compact drafted by the management.
d) The performance targets for the various units shall consist of both financial
and non-financial targets, as may be relevant.
e) Targets shall be relevant, measurable, easy to understand and fair; as far as
possible, targets shall be set following the SMART principle.
f) Annual targets to be achieved by the various functional Units in the company
shall be clearly defined so that the system aligns the targets of the functional
Units at various levels with the overall objectives of the company.
g) Team Appraisal System (TAS) may draw from the Annual Compact in terms
of its structure and including following details:
A brief description of the departments and functional units incdluign their
mandates
Departments’ and units’ performance targets, with weightages for each
target, timeframe for achievement of the targets
Targets, weightages, timeframe and methods and formulae for evaluation
of targets for each division/unit under the department
Detailed description of how achievement against the various targets will
be measured and payout of performance based rewards will be determined
Advice and suggestions to divisions and units on ways and means of
achieving the targets
h) Rewards and incentives shall be linked to performance at various functional
levels of the company (division/Unit, department and company levels), so that
35
TARGET
SETTING
EXECUTION OF TARGETS
the system not only incentivizes improved performance, but also encourages
functional Units to work in a coordinated manner.
The process flow of target setting and cascading is presented in a schematic
below:
Figure 2: Target setting and cascading process flow
3.4 Applicability
The company consists of many functional Units that perform varied nature of
works. While some Units (departments/divisions/Units) perform core
operational functions, others perform and provide support and ancillary
functions. Company shall identify and classify its various functional units into
core operational units and support function units so that targets can be assigned
appropriately.
3.5 Performance targets at various levels
Company shall adopt a three-tier approach to performance management as part
of Team Appraisal System: Company, Departmental and Unit level.
Corporate Level
Company Level
Department/Division
Division/Section/Unit
Individual Level
Annual Compact
Employee Appraisal
System
Team Appraisal
System
36
a) The compact plus document, which is essentially a performance compacts
signed by a CEO with his immediate subordinates, shall be comprehensive
enough in terms of the targets, assumptions and limitations for achieving
targets, weightages for the various targets and methods and formula for
evaluating the achievement of targets.
b) Weights assigned to targets that are cascaded from the annual compacts shall
be reflective of and relative to the weightage assigned to them in the compact.
c) The compact plus document prepared by the company detailing the targets
at various functional Units may draw from the annual compact in terms of
its structure and detailing. A well-structured performance compact (mini
compact) shall include the following:
A brief description of the departments and functional Units including
their mandates
Departments’ and Units’ performance targets, with weightages for each
target, timeframe for achievement of the targets and formulae and
assumptions to be used to evaluate the achievement of the targets
Targets, weightages, timeframe and methods and formulae for
evaluation of targets for each division/Unit under the department
Detailed description of how achievement against the various targets will
be measured and payout of performance based rewards will be
determined
Advice and suggestions to divisions and Units on ways and means of
achieving the targets.
d. Generally, the company shall adopt a three-tier approach to setting
performance targets for its functional Units, as follows:
3.5.1 Performance targets at company level
The annual compact signed by the company with DHI shall, provide the
performance targets at the company level. Targets at this level shall consist
of relevant targets extracted from the compact and any additional targets that
board and management may decide.
The performance at company level shall be used to evaluate the performance
of the company as a whole for the purpose of determining the payout of
Annual Bonus limit (Maximum two months basic salary of all employees
covered under this benefit) by the Bard.
37
Company level targets shall be applicable, but not limited, to the following:
CEO’s office
Central planning and strategy functions, such as corporate planning
and business development division
Legal, general counsel and company secretary
Accounts
Internal audit
Security services
Other company specific functions
3.5.2 Performance targets at department level
Departments that are generally run independently and are involved in core
functions and operations of the company shall have performance targets.
Performance targets for such departments shall be primarily derived from the
company’s annual compact. In addition, departments may also be assigned
performance targets identified by the board and management.
Besides departments that are involved in core functions and technical
operations of the company, department level targets may also be applicable
to corporate support Units, such as HR and Administration, based on the
criticality of such Units to achieve targets in a particular year.
3.5.3 Performance targets at division/Unit level
The next level of performance management is at the Division/Section/nit
Level depending on the structure of the company. The performance targets
set at this level are cascaded down to the various constituent
divisions/sections and units.
3.6 Performance review, monitoring and reporting
Continuous monitoring and reporting will be an important component of the
performance management of functional Units. Once targets have been
finalized and communicated to the functional Units, regular monitoring and
reporting shall be done. Company shall institute proper system and process
of monitoring and reporting the status of performance targets, using the
following broad principles:
a) Review and reporting shall take place at least once a quarter, with half-
yearly and annual reporting being the most comprehensive.
38
b) The CEO, with technical assistance of the planning and monitoring Unit
(PMU) of the company shall monitor the performance of the various
departments in the company.
c) The heads of concerned departments shall be responsible for monitoring
the performance of divisions/Units under a department. Wherever
possible, each department shall set up a performance monitoring team to
track the performance of all Units on a monthly basis.
d) The heads of respective functional Units shall be responsible for reporting
the status of work plans and targets to their immediate supervisors. For
example, heads of divisions and Units shall report to the heads of
departments, while heads of departments shall report to the CEO through
the PMU.
e) The CEO shall report the performance at the Company level on a quarterly
basis to the board and the DHI.
3.7 Process timeline
The annual timeline for implementation of the system shall be as follows:
Table 4: Process timeline
INDICATIVE TIMEFRAME ACTIVITIES
November of current year (year 0) Formulation of new targets for following year 1
January of following year (year 1) Finalization of new targets for year 1
January of following year (year 1) Assessment/evaluation of performance for year 0
February of following year (year 1) Circulation of targets for year 1
March of following year (year 1) Payout of incentive as applicable for year 0
3.8 Performance evaluation
Evaluation of the compact plus document containing work plans and
performance targets at various levels is an important step in the performance
management of functional Units in the company. The company shall put in place
appropriate structure and process of evaluating the performance of various
functional Units, using the following key principles:
39
a) Performance evaluation and awarding of performance ratings shall be done
objectively and transparently using the assessment methods, formula and
methods of prorating scores as detailed in the mini-compacts.
b) The PMU of the company shall be responsible for monitoring the performance
of the various functional units on a quarterly basis. First, the PMU shall
compile data, analyze and evaluate performances, then the CEO shall approve
it and finally the Board Audit Committee of the company shall endorse it.
c) The performance of support functions (such as PMU, internal audit, finance
and accounts, CEO’s office) that report directly to the CEO shall be approved
by the CEO, in consultation with the head of departments, before being vetted
by the Board Audit Committee.
d) Finally, the compact plus document shall be evaluated by the company’s
board using process ad criteria defined in the document.
As mentioned earlier, the performance of a particular functional Unit shall be
assessed using weighted average of performance at three levels – company level,
department level and Unit level. The weights for the three levels may vary
depending on specific industry and company requirements and the decision of
the company’s board. However, company may use the following weights:
Table 5: Performance weights at three levels
Performance level Weight
Unit level 60%
Department level 20%
Company level 20%
For example, functional Unit A is under the Projects Department and the
performance rating of the Unit is 90%. On the other hand, the performance rating
of the Projects Department is 95% and that of the company as a whole is 97%.
In such a scenario, the final performance of the functional Unit A shall be
calculated as follows:
Table 6: Performance rating workout for the Unit
40
Performance Level Performance
Rating % Weight (%) Weighted Score
Company level 97 20 19.4
Department Level 95 20 19.0
Functional Unit level 90 60 54.0
Final performance rating of the
Unit 92.4%
Likewise, performance of all the functional Units shall be evaluated and final
performance rating given as per the levels of their performances.
However, it may be difficult for the company to apply this principle of assigning
weights for some of its functional Units. The following clarification is provided to
guide company to handle cases where it is not possible to use the above
weighting system:
i. For divisions and Units that have performance targets, the weights may
be 60%: 20%: 20% for Unit, department and company level
performance respectively.
ii. For departmental levels, the weights may be 80%: 20% for department
and company level performance respectively.
iii. For support functions that do not have specific performance targets a
simple average of the performance rating of all departments & divisions
only shall be given as their performance rating. The functional units,
such as but not limited to, the following shall generally be considered
as support functions:
CEO’s Office
Central Planning and Strategy functions, such as corporate
planning and business development division
Legal, general consul and company secretary
Accounts
Internal Auditing
Security services
Other company specific functions
41
3.9 Performance based incentives
The performance evaluation of functional units conducted through the
evaluation of TAS shall be linked to certain incentives as approved by the
company’s board from time to time.
3.9.1 Annual bonus
Annual Bonus is an important part of the performance based incentive system
at the company. Payout of bonus shall be done in the following manner:
a) Evaluation of performance at the company level and determination of the
overall annual bonus limit, subject to a maximum limit of 2 months basic
salary of employees.
b) Evaluation of the performance of various functional units and the distribution
of bonus among functional unit based on their performance ratings.
This section elaborates the complete process of Annual Bonus from budgeting to
the payout up to functional unit level.
a) Budgeting for bonus
In the beginning of a fiscal year, the company shall budget an amount equivalent
to twice the basic salary of all its employees towards the probable payment of
bonus. This is to ensure that the company has enough funds to pay bonus as
and when it is approved by its board/AGM.
b) Evaluation of annual compacts and declaration of bonus limit
The company’s board shall declare bonus limit based on the evaluation of the
Compact Plus document of the company and the liquidity position of the
company. It shall normally take place during the first quarter of the succeeding
year.
Declaration of bonus shall be subjected to a maximum ceiling of two months
basic pay, as shown in the table below:
Table 7: Annual bonus payout against compact achievement
Compact Achievement Bonus Payout
≥ 95.00% 2 months basic pay
85.00% - 94.99% 1.5 months basic pay
75.01% - 84.99% 1 month basic pay
42
<75.00% No bonus
c) Creation of bonus pool fund for the company
Once its board approves the bonus limit, the company shall create a pool fund
equivalent to the basic salary of all its employees times the bonus limit. For
example, if the board approves a bonus limit of 1.5 months, the pool fund shall
be 1.5 times the basic salary of all employees for the assessment period.
While salary of all employees of the company during the performance year (for
which bonus is being paid) shall be taken into account to create the pool fund,
salary of employees who worked only partway through the year (either because
they were on long term leave or joined the company mid-way) shall be taken on
a prorated basis.
For example: The AGM of company X has declared a bonus limit of 1.5 months.
The company has five employees (a,b,c,d and e) with salary of Nu. 10,000,
Nu.20,000, Nu.12,000, Nu, 16,000 and Nu. 18,000 respectively. All other
employees worked the full year, but employee ‘d’ worked only for seven months
during the performance year because he was on extraordinary leave for the
remaining five months. In such a scenario the pool fund would be created as
follows:
Table 8: Example of creation of bonus pool fund
Employee Basic salary (a) Computation (b) Amount (Nu) (axb)
A 10,000 10000x1.5 15,000
B 20,000 20000x1.5 30,000
C 12,000 12000x1.5 18,000
D 16,000 (16000x1.5)x7/12 14,000
E 18,000 18000x1.5 27,000
Total bonus pool for
the company: Nu
104,000
d) Creation of bonus pool fund for functional Units
This is the first stage differentiation in the payout of bonus and involves the
creation of bonus pool fund for each functional unit depending on the
classification of units for work planning and performance target setting.
In this stage the performance rating obtained by each of the functional Units is
taken and the company wide bonus pool fund (refer c above) divided among all
the functional units on a prorated basis. Functional units that receive a relatively
43
higher performance rating shall receive a higher bonus fund than units that
receive relatively lower ratings.
The step-by-step process of payout of bonus fund creation at functional Unit
level is shown below:
Figure 3: Annual bonus payout at functional Unit level
COMPACT PLUS
Annual bonus
Creation of bonus pool fund for the
company
Bonus pool fund at the functional unit level will be determined based on the performance evaluation of the functional unit
Creation of bonus pool fund for the
functional unit
Approved annual bonus
fundMultiply
Total bonus fund for the functional unit
Performance bonus payout weightage:
Company Level = x
Department Level = y
Unit/Division Level = z
---------------------------------------------------
Final rating of the unit =
(x*ps)+(y*ps)+(z*ps)
---------------------------------------------------
Functional unit’s
performance rating
PS: Performance Score
For the determination and payout of bonus at the various functional unit level,
the company shall design and develop relevant financial models e.g Excel model.
e) Determination and payout of bonus to employees
Depending on performance secured at the functional unit based on its
performance rating will be used to payout bonus to individual employees within
that unit.
The payout of bonus to individual employees from the pool fund of the functional
Unit, to which employees are attached, shall be based on performance rating
obtained by individual employees. The performance management of individual
employees, including the payment of performance based bonus and other
rewards, is detailed in Chapter 4.
44
45
Chapter 4: Employee Appraisal System
4.1 Introduction
Individual employees are the ultimate bastions of performance in the company.
After cascading of performance targets from annual compacts to various
functional Units in the company, the targets are eventually cascaded down to
individual employees. Work plans are signed between employees and their
immediate supervisors at various levels.
4.2 Objectives
The primary objectives of an EAS shall be as follows:
a) Ensure alignment of individual goals and objectives with that of the
organisation and to coordinate efforts in order to achieve those goals;
b) To provide a framework to review and monitor the performances of
individuals employees;
c) To communicate and clarify organization goals to employees;
d) To identify individual accountability for accomplishing organizational
goals;
e) To identify gaps in the performance of an individual and prepare
development plans to improve;
f) To use appropriate measures of performance as the basis for recognizing
and rewarding accomplishments;
g) To provide linkage between the performance of company and the payout
of performance based incentives, including annual salary increment and
bonus; and
h) Avail the incumbents of learning and development opportunities to
competently meet their performance targets.
i) Understand what is expected from the incumbents, by when it is expected
and to what standard is expected.
4.3 Applicability
Employee Appraisal System shall apply to all employees at State Mining
Corporation Limited, except the Chief Executive Officer where the performance
shall be monitored and assessed by the Board. Based on the functions and job
responsibilities, different appraisal forms for different levels of employees have
been designed which are relevant to their jobs.
46
4.4 Definitions
a. Appraiser or the Reporting Officer
Appraiser (synonymous with “Supervisor ” and “Reporting Officer”) is a person
who is responsible for developing performance plans, for monitoring
performance, and/or for rating the performance of an employees under his
supervision. Only supervisors who directly supervise and monitor the
performance of an employee shall rate that employee’s performance. Supervisor
is an individual in a position who is responsible for the duties and
responsibilities of which require or authorize the individual to assign, formulate,
determine, work plans for the Appraisee.
b. Appraisee
An appraisee is an employee whose performance shall be rated by his
supervisor/appraiser. There may be several appraisees under one appraiser, just
as a supervisor supervises several subordinates. Key responsibilities of an
appraisee include the following:
He shall continually strive to achieve excellent performance and be
accountable for his actions.
He shall take an active role in developing himself to meet corporate goals.
He shall be responsible for completing relevant EAS forms on time.
c. Reviewer
Reviewer is an appraiser’s manager or direct supervisor like the Head of the
Division/Department and the Chief Executive Officer. Chief Executive Officer
shall also be the Reporting, and Accepting Officer in the case of the Head of the
Department/Mines/Quarry and official directly reporting to him and same apply
to the Heads of Departments and Mines/Quarry that has staff directly reporting
to them without next layer of hierarchy.
The primary responsibility of a reviewer is to cross check the evaluation of an
appraisee done by an appraiser. The reviewer, in close consultation with the
appraiser, shall either agree with the evaluation done by the appraiser or shall
decide to change the final evaluation rating.
A reviewer shall ensure that all appraisers/supervisors reporting to him have
completed all relevant appraisal forms on time. Failing to do so, a reviewer’s
final performance may be reduced by 0.25 percent for every supervisor/appraiser
47
who fails to complete the process on time.
c. Competency
Competencies are behaviors, skills, and values expectations that are crucial to
the success of individual as well as organization.
e. Evaluation Unit - Evaluation Unit shall be a group of employees under one
appraiser in any Unit, Division and Departments. The appraiser who is
directly responsible for performance planning, managing, monitoring and
rating the performance of all employees in that group shall head each
Evaluation Unit.
f. Absolute Rating - Absolute rating is the summation of performance rating
achieved by an employee against the competencies and weighted average of
targets achieved as identified in the performance appraisal form. The
weightages against each competency is pre printed on the appraisal form.
Absolute rating shall be out of 100%. The performance of individual employee
shall be assessed against the set targets.
g. Performance Evaluation Period - Performance period is synonymous with
‘appraisal period’ and ‘evaluation period’ and shall mean the established
period of time for which performance will be reviewed and rating record will
be prepared.
Levels Definition
The performance of an employee shall be leveled as Un-acceptable, Below
Satisfactory, Satisfactory, Commendable and Outstanding. These levels have
been defined to ensure there is consistency and uniformity for the purpose of
interpretation levels as follows:
1. Unacceptable
The employee has clearly failed to function at an acceptable level of performance.
The performance is below the minimal acceptable standards, and has
demonstrated only a few, if any, of the competencies and targets required for the
job. Constant monitoring and serious interventions by the supervisor is required
on a day-to-day basis to get the work done by an employee. Immediate
improvement of the employee is required.
48
2. Below Satisfactory
The employee sometimes meets performance targets at the most basic level, with
room for improvement. Demonstrated some of the competencies required for the
job, but more competencies are still required to perform better. The individual
employee can plan the work and handle problems better under the guidance of
his supervisor.
3. Satisfactory
The employee demonstrates proficiently in all the competencies required for the
job at his current level and able to meet the targets and requirements. The
employee is responsible for the works assigned to him, and has the ability to
handle un-expected problems. Innovative and has the ability to make use of
available resources working diligently and submitting the works on deadlines
and occasionally even exceeds deadlines. Supervisory intervention and
monitoring is required only sometimes to guide the performance.
4. Commendable
The employee meets all the competencies required for his current level and has
begun to exceed, even exhibiting competencies associated with the next higher
level. The employee is initiative by taking responsibility for planning work and
handling unexpected problems, through innovative thinking and use of available
resources, and develops creative solutions. The employee is sincere and
hardworking who always meets and sometimes exceeds deadlines. The employee
is active and always initiates collaborative efforts beneficial to task
accomplishment, and works cooperatively with others. The supervisor is rarely
involved in monitoring the performance but has to sometimes guide the
performance to next higher levels. Such performance is consistent and sustained
throughout the performance evaluation period.
5. Outstanding
The employee is practically at the entry point for the next level. The employee is
“clearly over the line” and should be considered seriously for promotion to the
next level. The employee demonstrates personal initiative in taking additional
responsibility than those normally assigned to him for planning work and
handling unexpected problems. The employee demonstrates extremely high level
of innovative thinking and for innovative use of available resources. The
employee is an asset in developing creative solutions for work problems and is
involved whenever a problem comes up. The employee always exceeds deadlines
49
and sustains that throughout the appraisal period. The employee demonstrates
excellent quality work that is technically sound, accurate, and thorough. He is
an excellent team player and is known to involve team members in collaborative
efforts for exceeding task accomplishment. The supervisor is never involved in
monitoring the performance and no supervisor intervention is required to
complete the work assigned. Such performance is consistent and sustained
throughout the performance evaluation period.
HR Manager - The head of human resource and administration in a company
shall be responsible for efficient administration of the EAS defined in this
chapter. Among others, he shall be responsible for the following:
To provide and distribute relevant work planning forms to employees.
To identify and communicate information on the appraiser and reviewer
for all the employees. An employee must know who his appraiser and
reviewer are.
To communicate deadlines to appraisers and appraisees.
To compile final performance evaluations and submit to management.
To archive performance evaluations for future record and auditing.
To continually look for and implement improvement in the system,
including improvements in EAS forms, performance evaluation
parameters and categorization of employees for performance management.
Performance Evaluation and Review Committee
Is the committee to receive and review appeals related to performance
evaluations submitted by an appraisee. This committee shall have at least three
members, from among senior employees (excluding the appraiser himself), who
shall be nominated by the CEO of the company.
The primary responsibility of the committee shall be to receive and review
appeals related to performance evaluations submitted by an appraisee. The
committee shall ensure that an appeal gets its due consideration and that a
collective decision is taken without prejudice to the appraiser or the appraisee.
4.5 Employee Appraisal System Cycle
EAS is an iterative process, which can be divided into four major phases:
a) Performance planning and target setting
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b) Performance monitoring and coaching
c) Performance review and evaluation
d) Performance rewards and development
The figure below, illustrates the EAS cycle.
Figure 4: Employee appraisal system cycle
Figure 5: Employee appraisal process
Performance planning and target setting
Performance monitoring and
coaching
Performance review and evaluation
Performance rewards and development
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4.6 Performance planning and target setting
The performance planning involves setting goals for each individual employee in
Vision, Mission &
Objectives
Supervisor Goal Setting Employee
Performance
Improvement Plan
Performance
Review
EXIT Plan
Mid-term
Performance Review Confirmation
Input on
Competencies,
Learning &
Development
Needs
Performance
Recognition &
Reward
Adjustment
Expansion of Roles
& Responsibilities
Annual
Appraisal
Ratings
flows to
HRA
52
line with Unit, division, department and company’s annual target/compact at
the beginning of the year.
a) The performance planning and targets setting will be done at the beginning
of a year, whereby an employee (appraisee) and his supervisor (appraiser)
agree on a list of performance targets to be achieved by the appraisee during
the appraisal period.
b) The company’s annual compact signed with the DHI shall be the performance
compact of its CEO.
c) Targets for employees in a functional Unit shall primarily be derived from the
work plans of that Unit.
d) Employees may also be assigned with targets that are not derived from the
work plans of the functional Units, but derived from management decisions.
e) Performance targets for employees shall be relevant, measurable, easy to
understand and fair; as far as possible, targets shall be set following the
SMART principle.
f) Performance targets for employees are generally made more stringent from
year to year, especially to connect to similar ratcheting of targets at the
functional Unit level.
g) All targets in a work plan are assigned with appropriate weightages such that
the total of all the targets is 100%.
h) Targets for activities that are non-quantifiable shall be set by clearly defining
the measure or indicator that will be used to evaluate the targets. Such
assessment measures may include the percentage of completion by a certain
deadline, or a clear definition of what the achievement of the target would
mean. This will enable an objective evaluation and assessment of targets.
Table 9: Target Setting Authority
SN Level of staff Target Setting
Authority
Approving
Authority
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1 Staff working in Unit Head of Unit Head of Division
2 Head of Unit Head of Division Head of Department
3 Staff working in Division Head of Division Head of Department
4 Head of Mines/Quarries Head of Division Head of Department
5 Head of Department Chief Executive
Officer
Chief Executive
Officer
6 Head of independent Unit
(Corporate Office)
Chief Executive
Officer
Chief Executive
Officer
4.6.1 Supervisor’s Role
Have a thorough understanding of the work involved – the critical
functions and key tasks.
Review job description to ensure that information is accurate and up to
date.
The performance planning process involves a relatively equal partnership
between supervisor and employee and negotiate together as they share the
common interest.
Since the supervisor may be more expert in the “big picture” issues his/her
responsibility is to discuss how the employee supports the organizational
needs of the department or division and fits with other employees in the
Unit.
Identify priority areas, if appropriate, among the core and job-specific
competencies that will be emphasized in the evaluation.
Communicate how the results of the employee’s work contribute to the
department’s, division’s or company’s goals.
Ask the employee what information, resources, tools, training and
supervision is needed.
4.6.2 Employee’s Role
Have a thorough understanding of the work involved – the critical
functions, key tasks.
Review job description to ensure that information is accurate and up to
date.
Understand what constitutes “successful performance” of the core
competencies related to the job.
Come prepared to share and discuss personal objectives and the measures
of success related to each objective.
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Understand how the results of position contributes to the department’s,
division’s, or company’s goals and objectives.
Communicate what information, resources, tools, training and supervision
is needed.
Ask questions to clarify information and inform the discussion.
4.6.3 Discussion of Barriers and Help Need
Since the principle goal of the performance planning process is to support
employee success and foster employee growth and development, it is important
that the supervisor and employee discuss any difficulties, challenges, or
problems that might interfere with achieving the objectives and meeting
standards. As a partner in the process, the supervisor’s role is to actively
participate in identifying ways he or she can assist the employee in being
successful. This dialogue may also include the identification of training or
development needs of the employee that are important to his or her success
4.6.4 Discussion of Priorities
It is important that the supervisor and employee agree on which objectives are
most important and which are of less importance. The purpose of this discussion
is to help the employee know where to allocate his or her time without having to
consult with the supervisor on everything. A simply way to do this is to designate
a priority for each task or objective. The setting of priorities should be a fairly
straight forward process and should be done together, so they arrive at a
common understanding. The discussion should ensure the priorities that the
department or division needs in order to achieve their respective goals and
objectives.
4.6.5 Categorization of employees
The employees will be categorized into four groups as per their job
responsibilities to ensure objective measurement of performance. This is because
of the variation in nature of their job responsibilities and will be difficult to
measure the performance of all employees in the same manner or by using the
same criteria.
Table 10: Categorization of employees
Group Grade Roles
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Executive E3-E1 Leadership, Managerial and Strategic roles
Managerial M3-M1 Managerial, supervisory and routine roles
Supervisory O3-S1 Supervisory Roles & performing routine
tasks
Operational O7-O4 Performing routine & repetitive jobs & do
not supervise others
GSC GSC II – GSC I Routine/Operational roles.
Group Executive (E3 –E1) - Head of the Department/Head of the Division.
Group Managerial (S3–M1) - Legal Officer (Assistant, Senior, Dy. Chief/Chief),
Company Secretary, Engineer (Senior/Executive/Chief), Finance Manager
(Assistant/Deputy/Senior/Dy. Chief/Chief), Internal Auditor
(Deputy/Assistant/Senior/Dy. Chief/Chief), Environment Officer
(Assistant/Senior/Dy. Chief/Chief), Geologist (Assistant/Senior/Dy.
Chief/Chief), Surveyor (Assistant/Senior/Dy. Chief/Chief), Personal Secretary.
Group Supervisory (O3-S1) - Engineer (Assistant, Junior), Mines Supervisor,
Foreman, Surveyor, Accountant, Marketing Assistant, Accountant,
Administrative Assistant, Personal Assistant, Laboratory Technician,
Weighbridge Assistant, Surveyor.
Group Operational Level (O7-O4) - Dispatcher, Receptionist, Driver, Security
Guard, Survey Assistant, operators/technician, quality control assistant, driller,
and blaster.
4.6.6 Work plans
a) Once targets are finalized, employees shall sign work plans with their
immediate supervisors.
b) Work plans signed by an employee with his immediate supervisor shall be
comprehensive enough in terms of the targets, assumptions and limitations
for achieving targets, weightages for the various targets and methods and
formula for evaluating the achievement of targets.
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c) Weightages assigned to targets that are cascaded from the annual compacts
and work plans of functional Units shall be reflective of and relative to the
weightage assigned to them in the annual compact.
d) Employees in O7 – O4 do not have to sign work planning forms as they are
involved in performing routine and repetitive jobs.
4.6.7 Performance dimensions
Performance of employees shall be evaluated on the basis of two parameters:
a) Achievement of targets:
The set of targets identified for an employee is formalized in the form of a work
plan and shall form the basis for evaluating the performance of an employee.
However, some employees in the company may not be part of any operational
Unit as they are involved in providing support/pool services and perform
repetitive jobs. Therefore, the performance of such employees shall be
evaluated based on the actual volume of work done.
b) Work-related competencies:
Work related competencies are knowledge, skills and attitudes that an
employee is expected to possess to successfully perform his job.
The minimum set of competencies that are necessary for all employees will be
same at all level and must be part of the performance appraisal system.
The separate sets of work related competencies that are job specific are to be
identified and used for employees in different groups. However, the company
may also use the same or similar set of competencies for other group of
employees but with different level of expectations and rating for the groups.
4.6.8 Performance weightages
Employees in each group shall have a different set of combination of weights for
the performance dimensions explained as shown below:
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Table 11: Performance Weightages
Performance Dimension Group & weightage
E3-E1 M3-M1 O3-S1 O7-O4
Achievement of Targets 70% 60% 40% 0
Work-related Competencies 30% 30% 30% 30%
Volume of actual work performed 0 10% 30% 70%
Higher level group of employees are assigned with a higher weight under
achievement of targets than for work related competencies. This is because the
achievement of targets is more objective than work related competencies in terms
of its use in assessing employee performance and shall minimize the subjectivity
of evaluation.
Contrary, for lower level group of employees, whose achievement of targets is to
be judged on the volume of work performed, a relatively higher weight may be
assigned to work related competencies as compared to higher level employees.
4.7 Performance monitoring and coaching
After the performance planning is over and targets have been set, it is imperative
that supervisors monitor the progress and the quality of the work output using
supervisory techniques to support employee efforts to meet or exceed their
performance targets.
Coaching is an ongoing process of communication between the supervisor and
the employee focused on improving current performance and building
capabilities for the future. It involves the supervisor and employee working
together to share information about work progress, potential barriers and
problems, possible solutions to problems, and how the supervisor can help the
employee through informal conversations or notes, as well as more formal
coaching meetings and written documentation. Coaching includes a variety of
activities, such as:
a. observing performance
b. providing instruction
c. directing employee’s efforts
d. providing encouragement
e. correcting poor performance
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f. recognizing excellent performance
g. listening to employee concerns and ideas
h. removing barriers to performance
Coaching should occur on an as-needed basis throughout the year and may be
initiated by either the supervisor or the employee. Supervisor and the employee
should be encouraged to document these discussions as appropriate.
4.7.1 Supervisor’s Role
Provide ongoing performance feedback to prevent problems from arising.
Provide ongoing performance feedback to employees to recognize excellent
performance.
Solicit ideas and suggestions from the employee for improving work
processes.
Work with the employee to remove barriers to success and identify
strategies to minimize barriers.
Discuss the employee’s learning and professional development needs.
Solicit employee feedback on supervisory coaching effectiveness.
4.7.2 Employee’s Role
Ask supervisor for coaching when it is needed.
Listen and respond to feedback from the supervisor.
Provide feedback to supervisor about what he needs to know to help the
employee be successful.
4.8 Performance review and evaluation
At the end of each half of a year, the supervisors shall review the subordinates’
progress and provide coaching, assistance and feedback in problem areas. Half-
yearly reviews aims to track the performance of employees and identify
development needs in relation to his/her performance. The performance
evaluation form shall consist of the review of performance targets, evaluation of
competencies and training and development plan.
Employees shall be assessed on their work-related competencies, achievements
of targets and the actual volume of work performed by them as per the weightage
assigned.
Performance shall be evaluated only at the end of the second half of the year. It
is the formal assessment on an employee’s performance for the appraisal period.
During evaluation supervisors shall determine the following:
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How effectively the agreed targets and goals have been carried out and
met?
Performance shall be evaluated on the basis of the performance measure
or indicator assigned to each target. Full scores are given for tasks that
are achieved 100% or better and pro-rated scores given to those that are
not fully achieved. Weighted score of each of the target is then calculated
by using the score given and the weight assigned to the target.
How has an employee fared in terms of exhibiting the work related
competencies defined for his group?
Was performance affected by any constraints or obstacles?
What are the training and development needs of the employee identified
during the evaluation?
4.8.1 Role of Employee (appraisee):
He shall continually strive to achieve excellent performances and be
accountable for his actions.
He shall take an active role in developing himself to meet corporate goals.
He shall be responsible for completing relevant EAS forms on time.
4.8.2 Role of Appraiser
Ensure that employees have the appropriate tools, resources, training and
development needed so that they can successfully carry out their duties.
Together with the appraisee, set work targets and review performance;
Discuss employees’ goals, performance, and development throughout the
performance management cycle.
As the supervisor, recognize the needs for coaching and mentoring to
improve the performances of subordinates.
A supervisor/appraiser who fails to ensure that each of his subordinates prepare
and complete the relevant appraisal forms may be given a written warning and
his final performance reduced by 0.5 percent for every appraisee. However, if
more than 75% of his subordinate employees do not complete appraisal forms,
the supervisor’s performance shall be rated as ‘Unacceptable Performance’.
4.8.3 Role of Reviewer:
The primary responsibility of a reviewer is to cross check the evaluation of an
appraisee done by an appraiser. The reviewer, in close consultation with the
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appraiser, shall either agree with the evaluation done by the appraiser or shall
decide to change the final evaluation rating.
A reviewer shall ensure that all appraisers/supervisors reporting to him have
completed all relevant appraisal forms on time. Failing to do so, a reviewer’s
final performance may be reduced by 0.25 percent for every supervisor/appraiser
who fails to complete the process on time.
4.8.4. Role of HR Manager:
The head of human resource and administration in the company shall be
responsible for efficient administration of the EAS. Among others, he shall be
responsible for the following:
To provide and distribute relevant work planning forms to employees.
To identify and communicate information on the appraiser and reviewer
for all the employees. An employee must know who his appraiser and
reviewer are.
To communicate deadlines to appraisers and appraisees.
To compile final performance evaluations and submit to management.
To archive performance evaluations for future record and auditing
To continually look for and implement improvement in the system,
including improvements in EAS forms, performance evaluation
parameters and categorization of employees for performance management.
4.8.5 Role of Performance Evaluation and Review Committee:
The primary responsibility of the committee shall be to receive and review
appeals related to performance evaluations submitted by an appraisee. The
committee shall ensure that an appeal gets its due consideration and that a
collective decision is taken without prejudice to the appraiser or the appraisee.
4.8.6 Mechanism for appeal
An appraisee shall submit an appeal within 10 working days if he/she is not
satisfied with the final rating which was rated based on EAS of the company.
4.8.7 Performance Ratings
At the end of an appraisal period employees shall receive performance ratings
that correspond with their performance using the company’s performance rating
guides as given below:
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Table 12: Performance rating guide
Level Adjectival
Rating
Explanation
Outstanding 90.0-100
Performance consistently and clearly exceeds
performance objectives and standards. Initiative and
self-direction are evident
Commendable 80.0-89.9
Performance consistently above standard in meeting
performance objective. Exceeds requirements in some
areas, but not consistently or not without exception.
Satisfactory 65.0-79.9
Meets all performance objectives and job
responsibilities dimensions and meets normal
performance standards. Problems or errors are
reported and corrected promptly.
Below
Satisfactory 50.0-64.9
Performance is below expectations. Assigned tasks
maybe incomplete, requires constant supervision and
guidance and requires reasonable time to correct
problems.
Unacceptable 0.0-49.9
Demonstrates poor performance. Work output is
consistently low, regularly fails to meet required
outcomes, requires constant supervision, and shows
an indifference to job responsibilities
Table 13: Performance Appraisal Authority
SN Level of staff (Appraisee) Appraiser Accepting/Reviewing
Authority
1 Staff working in Unit Head of Unit Head of Division
2 Head of Unit Head of Division Head of Department
3 Staff working in Division Head of Division Head of Department
4 Head of Mines/Quarries Head of Division Head of Department
5 Head of Department Chief Executive
Officer
Chief Executive
Officer
6 Head of independent Unit
(Corporate Office)
Chief Executive
Officer
Chief Executive
Officer
4.9 Performance rewards and development
At the end of an EAS cycle, employees are rewarded according to their
performance. Similarly, the final evaluation and assessment of an employee’s
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performance during a performance period shall lead to the identification of
development needs, including training for the employee.
4.9.1 Performance based incentives
The evaluation and rating of employees shall be linked to certain incentives as
approved by DHI and/or the company’s board from time to time. The payment
of following incentives will be linked to performance evaluation of employees:
a) Annual bonus
b) Other incentives
4.9.1.1 Annual bonus
The primary monetary incentive based on performance at the individual level
shall be the annual bonus. The bonus pool fund created at the functional Unit
level shall be distributed among the employees in a functional Unit based on
their individual performance ratings and using the following principles:
Payment of bonus shall be based on the performance rating of individual
employees.
Bonus shall be distributed on the principle that the entire pool fund will
be used and that there is no under or over drawing of funds.
An employee with a higher performance rating shall receive a higher
bonus than his colleague with a lower rating
The maximum amount of bonus paid to an employee shall not exceed
three months of his basic salary.
4.9.1. 3 Other incentives linked to performance
The EAS may also be used to reward, incentivize and motivate employees by
linking it to company’ HR systems. Some of the key possibilities are as follows:
a. Promotion
The ratings given to an employee at the end of a performance period may be used
for the purpose of promoting the employee. Promotion of an employee who
performs consistently well shall be an important part of the reward system.
Therefore, performance ratings shall be used as one of the criteria to consider
normal, meritorious and fast tracked promotions.
b. Training
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Supervisors may, as part of employee appraisals, recommend training for two
purposes (i) For developmental purposes and (ii) to improve performance in an
employee's present job.
The performance appraisal process shall be one of the methods used to identify
areas where remedial training may be necessary for an employee to meet or
surpass specified performance standards.
c. Outstanding employee award
An employee with the highest performance rating, for a particular performance
period, may be awarded by the company in recognition of the hard work put in
order to achieve his/her targets. The employee being recognized may be awarded
a certificate commending his/her performance, a token gift item with the
company’s logo displayed and his/her photograph framed and displayed at the
company’s ‘Hall of Fame’. He/she may also receive a standing ovation from co-
workers at the time of receiving the award.
4.10 Administrative and management issues
4.10.1 Extension to probation period
New employees shall be carefully observed during their probationary period to
determine whether they can perform their duties acceptably and have the
qualities needed to become successful career employees. The probation period of
employees shall not be extended if they do not achieve required standards of
performance and shall be dealt as per Section 2.6.3, Chapter 2 of the SMCL HR
Manual 2016.
4.10.2 Eliminating rater error
During a performance appraisal process, appraisers should be aware of the
common rating errors in order to minimize subjectivity, biasness and
inaccuracies. A wrong appraisal and evaluation can lead to wrong HR decisions
in promotion, retention, or recruitment. In addition, when a performance
appraisal is affected by rating errors, the employee may be justified in filing
discrimination charges.
4.10.3 Case of employee transfers
In case an employee is transferred to another functional Unit, the functional Unit
under which an employee has served the longest during a performance year shall
be taken as the evaluation Unit for the employee. In case of mid-year transfers
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occurring in July, the evaluation will be based on performance of the current
Unit or an average of the two Units as per the convenience of the company.
4.10.4 Case of new appointees
New employees placed under probation shall not be eligible for the payout of
bonus. Once the probation period is over, the bonus may be paid out on a pro-
rated basis for the period of regular service. For new employees appointed
without having to undergo probation, bonus payout will be made on a pro-rata
basis for the actual number of months worked during the year. Probationary
employee eligible for bonus payout will be required to complete Employee
Appraisal Form.
A sample copy of the Employee Appraisal Form for probationary employee is
provided in Annexure III: – EAF Probationary employee evaluation.
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Annexure III: – EAF Probationary employee evaluation.
Period from: _________________________________________
Personal Details
1. Name :
2. Designation :
3. Qualification :
4. Grade :
5. Pay Scale :
6. Place of posting :
7. Employee ID No. :
8. Citizenship ID No. :
Brief description of duties:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Sl. No. Competency Rating (1 – lowest & 5 – highest)
1 2 3 4 5
1. Attitude
2. Adaptability
3. Work Output
4. Interpersonal relation ship
5. Work knowledge and skills
6. Communication skills
7. Integrity and trust
Total Score obtained
Fit to clear probation if minimum score obtained is above 20 points
Yes/No
Signature of Reporting Officer
Signature of reviewing/accepting officer
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4.10.5 Case of retirement/resignation
Employees retiring or resigning are entitled to bonus payouts calculated on a
pro-rata basis. For such employees, the last pay drawn will be used for the
payout calculation.
4.10.6 Case of absence from work
i. Leave:
Employees availing leave for a period more than 30 days during the
performance year shall not be eligible for bonus for the period of their absence
beyond 30 days. Bonus payouts for such employees shall be prorated to the
period of active duty i.e absence from work beyond 30 days shall be deducted
from their active duty.
Bonus shall not be applicable for the period of an extraordinary leave.
For example, if an employee has availed a total leave of 35 days in a year, the
payout will be prorated such that he/she will lose the payout only for 5 days.
However, maternity leave of up to three months shall be considered as active
duty and eligible for bonus payout.
ii. Training:
Similarly, for short-term training programs exceeding 30 days at a stretch,
employees shall not be paid bonus for the period exceeding 30 days. Bonus
payout for employees in such cases shall be prorated to the period of active
duty.
iii. Suspension:
Employees on suspension due to disciplinary actions shall not be eligible for
bonus payout for the period of suspension, unless the suspension period is
later revoked.
iv. Case of deputation
Bonus payout for an employee on deputation to the company shall be based
on the performance of the departments or divisions or under which the
employee is attached and shall be prorated to the actual number of months
worked.
4.10.7 Common Rating Errors
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The appraisers shall avoid the following common errors, while completing the
performance appraisal:
a) Labeling: Avoid labeling of employees. Behaviors should be listed
clearly. For example, instead of marking ‘very dedicated’ can be marked
as ‘Works long hours, always proofs work before sending it out;
Expresses interest to take on more responsibilities’. Instead of ‘lazy’ or
‘poor work ethic’ it can be ‘high incidence of absenteeism and work is
incomplete’, etc.
b) Recency: During the time of rating the appraiser should avoid focusing
on most recent examples of behavior rather the performance over the
period under review should be given due consideration than recent
behavior of an employee. This can occur because of inadequate record
keeping.
c) Central Tendency: The tendency of the appraiser to rate everyone
shouldn’t be same, or, at least avoid extreme ratings. He should use
the ends of the scale as well as the middle.
d) Leniency: The appraiser shouldn’t be lenient at the time of rating but
rate according to the performance of the employee. Usually appraiser
avoid low ratings to avoid conflict or because of the uneasiness that low
ratings of employee might badly reflect their performance. This can
happen when the reviewer is rushing or under pressure to complete the
appraisal.
e) Horns/Halo Effect: A tendency to rate the same individual
‘Outstanding’ on every trait or ‘Satisfactory’ on every trait or vice versa.
This may happen when the supervisor feels that the employee has some
shortcomings and then rates them poorly on everything as a result (or
conversely, rates too high on everything based upon a few high ratings).
f) Constancy: A tendency of appraiser to rate their employees in rank
order rather than based on individual performance and adjust scores
to match the ranking order.
g) Similarity: The appraiser shouldn’t rate high for those whom he favors
and vice-versa.
4.11 Handling Performance Disputes Plan
If the appraiser and appraise disagree on the contents of the performance plan,
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the appraiser and appraisee should attempt to resolve the disagreement
informally. However, the approving official must make the final decision
regarding the contents of the plan. If the employee refuses to sign the plan, the
rating official should annotate the plan to indicate that it was discussed with the
employee (the employee shall be given a copy), but refused to sign. The
employee's refusal to sign does not preclude the plan's implementation or the
employee's obligation to perform under it.
Similarly, if the appraiser and employee disagree on the ratings, the appraiser
and employee should resolve the disagreement mutually. Both the appraiser and
employee should have evidence to prove their views and arguments. If the
disagreement is not resolved mutually, the reviewing/accepting authority shall
attempt to resolve the disagreement. When the reviewing/accepting authority
had failed to resolve, the decision of the competent authority designated by the
management shall become final and binding. The competent authority may form
special employee appraisal committee to look in to such disputes and to ensure
that there is sufficient transparency in the whole process of the employee
appraisal system.
4.12 Employee Appraisal Feedback
Performance appraisal system is seen as employee development process and not
a fault finding mechanism to punish the employee. Therefore, a constant
feedback on the performance of individual employee has to be there. The
immediate supervising official, Head of Department, Plant, Division and Unit
shall be responsible to identify strengths, weaknesses and any learning activity
for employee and apprise, discuss and resolve on any other constraints that
comes on the way while performing any given job responsibilities. The strengths,
weaknesses and learning activity and development needs shall be clearly
recorded in the performance appraisal form for reference and improvement plan.
4.13 Provisions for CEOs
This Unit provides broad guidelines on the performance management of CEOs
of the company.
4.13.1 Performance Dimensions
The performance of a CEO shall be assessed using two parameters:
Achievement of targets:
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For a CEO, the Annual Compact of the company shall be his/her work plan for
the year. The compact shall form the basis for evaluating the performance of the
CEO.
Achievement of leadership competencies:
A set of competencies shall be used to evaluate the leadership performance of a
CEO. The existing instrument used by Board of DOCS to evaluate leadership
performance is attached as Annexure : Sample copy of CEO performance
evaluation survey form.
4.13.2 Performance weights
The two performance parameters shall carry weights as shown below:
Table 14: Performance weights for CEO
Performance Dimension Percentage Weight
Achievement of Annual Compact 80%
Achievement of leadership competencies 20%
4.13.3 Performance evaluation
The Annual Compact of the company shall be evaluated as detailed out in earlier
chapter and shall account for 80% of the performance rating of its CEO. On the
other hand, the leadership performance shall be assessed by the board using a
set of given criteria and shall account for 20% of the performance rating.
Next, the PBVA shall be calculated based on the total performance rating points
obtained by a CEO, which shall consist of 80% for compact achievement and
20% for leadership performance rating.
An example is shown below to illustrate the calculation of payout of PBVA:
For example, a CEO receives a performance rating of 90% on compact achievement
and 80% on leadership achievement. In this case, the calculation will be as follows:
Table 15: CEO's performance workout
Performance Dimension Weight Rating (%) Weighted Score
Compact achievement 80% 90 72
70
Leadership achievement 20% 80 16
Total performance rating 100% 88
4.13.4 Performance Rewards
Depending on the terms and conditions spelled out in the contract, CEOs may
be eligible for the following performance based rewards:
a. Performance based variable allowance (PBVA)
A CEO shall receive 25% (or as specified in his/her contract agreement) of his
basic pay as PBVA. The payout of PBVA shall be prorated to a CEO’s total
performance rating as follows:
Table 16: PBVA payout for CEOs based on final performance rating
Final Performance Rating
of CEO Payout of PBVA to CEO
> 95.00 Full (25% or as specified in their contracts) PBVA
76% - 94%
Prorated incrementally. E.g., if the PBVA is 25%, payout
should be prorated by 1.25% for every increase in percentage
point
PBVA=(88-76=X *1.25)Basic Pay
< 75.00% No PBVA
b. Bonus
Depending on the terms and conditions of his contract agreement, a CEO shall
receive bonus based on the performance of the company. The payout of bonus
shall be as detailed in Chapter 4.
c. HR linkages
Among others, the rating will be used for renewal or extension CEOs service
contracts as detailed in the CEOs selection and recruitment guidelines.
71
Annexure IV: CEO’s Performance Evaluation Survey Form
Basic Information
Company:
Name of CEO:
Name of Evaluator:
Period of Evaluation:
Introduction
CEO’s performance evaluation consists of two components: i ) Leadership assessment which
carries 20% weightage and ii) Assessment of Annual Compact Targets of the company which
carries 80% weightage.
This survey is being conducted to assess the leadership component of CEO’s performance
evaluation for the period January-December 2015. The survey will be confidential and the
results be presented in consolidated form.
The Board Directors are requested to give fair and honest judgment about the leadership
competencies and attributes of the CEO. The CEO shall be evaluated on five KEY Result
Areas (KRAs):
i) Visioning and strategic planning,
ii) Integrity and ethical conduct,
iii) Relationship with the Board,
iv) Decision-making and interpersonal skills,
v) Employee engagement and development
Each KRA has five Key Performance Indicators (KPIs).
Rating Scale
Please use the following rating scale to rate each leadership competency.
5= Outstanding: Performance is superior and far exceeds expectations.
4= Commendable: Performance generally meets or exceeds expectations.
3= Satisfactory: Performance is adequate, meets the expectations.
2= Below Satisfactory: Performance needs to be improved, fails to meet some expectations.
1= Unacceptable: Performance is below acceptable levels or fails to meet most of the
expectations.
72
1. Visioning and Strategic Planning
Please rate the CEO on his visioning and strategic planning skills.
Leadership competency/attribute Outstanding
(5)
Commendable
(4)
Satisfactory
(3)
Below
Satisfactory
(2)
Unacceptable
(1)
Leads in defining/reorienting
vision and strategic direction of
the company
Develops effective strategies to
achieve the vision and missions of
the company
Acts as a catalyst for
organizational change
Demonstrates high level of
personal drive to accomplish the
goals and objectives of the
company
Prioritizes and implements annual
plans consistent with the long
term goals and strategies of the
company
2. Integrity and Ethical Conduct
Please rate the CEO on his integrity and ethical conduct.
Leadership competency /attribute Outstanding
(5)
Comme
ndable
(4)
Satisfactory
(3)
Below
Satisfactory (2)
Unacceptabl
e (1)
Behaves in an honest, fair and ethical
manner
Ensures practice of highest ethical
standards throughout the company
Refrains from engaging in political or
self serving behavior
Leads by example in upholding the
organizational values
Takes appropriate actions for unethical
behavior of the employees
73
3. Relationship with the Board
Please rate the CEO on his relationship with the Board.
Leadership competency /attribute Outstanding
(5)
Commen
dable (4)
Satisfactory
(3)
Below
Satisfactory (2)
Unacceptab
le (1)
Offers professional advice to the Board in
making strategic decisions
Provides relevant, accurate and timely
information (papers and reports) to the
Board for informed decision making
Implements the policies and decisions of
the Board in timely and efficient manner
Keeps the Board informed on important
issues related to the company’s
operations
Maintains harmonious working
relationship with the Board
4. Decision Making and Interpersonal Skills
Please rate the CEO on his decision making and interpersonal skills.
Leadership competency /attribute Outstanding
(5)
Comme
ndable
(4)
Satisfactory
(3)
Below
Satisfactory
(2)
Unacceptab
le (1)
Demonstrates sound knowledge about
the company and the industry in which
it operates
Keeps up to date on changes in
domestic and global business
environments and capitalizes on the
opportunities and manages risks
Makes well informed, effective and
timely decisions
Uses creative and innovative
approaches in solving problems and
exploring new business areas
Demonstrates effective interpersonal
and networking skills
74
5. Employee Engagement and Development (KRA 5)
Please rate the CEO on his employee management skills.
Leadership competency /attribute Outstanding
(5)
Comm
endabl
e (4)
Satisfactory
(3)
Below
Satisfactory
(2)
Unacceptab
le (1)
Takes initiatives to attract and retain
talents in the company
Takes initiatives for succession
planning at strategic position levels in
the organization
Takes initiatives to develop professional
and managerial competencies of the
employees
Motivates and maintains high employee
morale and loyalty to the company
Fosters teamwork and cooperation in
the organization
Comments and Feedback
Please provide general comments and feedback on the leadership competencies
and attributes of the CEO particularly highlighting areas where the CEO needs
improvement.
75
Annexure V: Appraisal Forms for Executive Group (E3-E1)
Part I: PERFORMANCE PLANNING FORM (Targets 70%)
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
PART I
Instructions: At the start of each half-year, the supervisor and the appraise should discuss and develop a list of
activities/responsibilities that an appraise should attempt to accomplish during the appraisal period. This shall
be reviewed in July and December. This form shall be compiled by the supervisor/HRA and shall serve as basis
when giving the final rating of the employee.
Sl. No Targets Weightage (70%) Date line Weightage
Total
Add additional sheets if needed.
Tick as appropriate below:
I have discussed and understood the Performance Plans above and agree to the targets on which
my performance would be evaluated during the Appraisal Period.
The performance Plan as above has not been understood by me, and I do not agree to the above
activities/targets on which my performance would be evaluated during the Appraisal Period. The
same may be forwarded to the Reviewer for consideration and appropriate modification.
Employee's Name and
Signature Date: Comments
Supervisor's Name and
Signature Date: Comments
Part II: Work Plan
76
Period: ……………………………………………………………………………………………
Name:……………………………………………Designation:……………………………….
Division:……………………………………………..
Sl.
No. Targets Activities
Start
Date
End
Date
Weight-
age Remarks
I have discussed and understood the above Work Plan and agree to the targets on which my performance
would be evaluated during the Appraisal Period.
The Work Plan as above has not been understood by me, and I do not agree to the above activities/targets on
which my performance would be evaluated during the Appraisal Period. The same may be forwarded to the
Reviewer for consideration and appropriate modification.
Comments (If any)
Date: Signature of Employee (Appraisee)
Comments (If any)
Date: Signature of Supervisor (Appraiser)
77
Part III: HALF YEARLY PERFORMANCE REVIEW FORM
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Half Yearly Accomplishments
Instructions: At the end of each half-year, an employee shall submit this form showing what he or she has accomplished for the
half year. These forms shall be compiled by the supervisor and shall serve as reference when giving the final rating to
subordinate.
Sl. No Performance Targets Accomplished
Targets
Remaining
Targets Supervisor's comments
Add additional sheets if needed.
Other Accomplishments: Additional effort(s) made in achieving goals aside from those agreed in the Planning Form
Attach additional sheets as needed.
Employee's Name and Signature Date: Comments
Supervisor's Name and Signature Date: Comments
78
Part IV (A) : PERFORMANCE EVALUATION FORM
Appraisal Period:
Name:
Employee ID No.
Designation:
Grade
Date of joining SMCL:
Department/Division
PERFORMANCE RATING GUIDE
Adjective Rating Rating Explanation
Unacceptable 0.0 -49.9
Demonstrates poor performance. Work output is consistently low, regularly
fails to meet required outcomes, requires constant supervision, and shows
an indifference to job responsibilities
Below Satisfactory 50.0-64.9
Performance is below expectations. Assigned tasks maybe incomplete,
requires constant supervision and guidance and requires reasonable time to
correct problems.
Satisfactory 65.0-79.9
Meets all performance objectives and job responsibilities dimensions and
meets normal performance standards. Problems or errors are reported and
corrected promptly.
Commendable 80.0-89.9
Performance consistently above standard in meeting performance
objective. Exceeds requirements in some areas, but not consistently or not
without exception.
Outstanding 90.0-100.0
Performance consistently and clearly exceeds performance objectives and
standards. Initiative and self-direction are evident
ADJECTIVAL PERFORMANCE APPRAISAL
Give a brief description of the employees work during the appraisal period
Name & signature of Supervisor: Name & signature of Reviewer:
79
Part IV (B): ANNUAL PERFORMANCE REVIEW FORM (Targets 70%)
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Half Yearly Accomplishments
Instructions: At the end of each half-year, an employee shall submit this form showing what he or she has accomplished for the half
year. These forms shall be compiled by the supervisor and shall serve as reference when giving the final rating to subordinate.
Sl.
No Performance Targets Achievement
Total (x)
Total (A) =(X/100)x70
Add additional sheets if needed.
Other Accomplishments: Additional effort(s) made in achieving goals aside from those agreed in the Planning Form
Attach additional sheets as needed.
Employee's Name and Signature Date: Comments
Supervisor's Name and Signature Date: Comments
80
Part IV (C ): PERFORMANCE EVALUATION FORM (Competencies 30%)
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL: Department/Division
PERFORMANCE RATING GUIDE
Performance Scale Explanation
Unacceptable 1
Demonstrates poor performance. Work output is consistently low, regularly fails to meet
required outcomes, requires constant supervision, and shows an indifference to job
responsibilities
Below Satisfactory 2 Performance is below expectations. Assigned tasks maybe incomplete, requires constant
supervision and guidance and requires reasonable time to correct problems.
Satisfactory 3 Meets all performance objectives and job responsibilities dimensions and meets normal
performance standards. Problems or errors are reported and corrected promptly.
Commendable 4 Performance consistently above standard in meeting performance objective. Exceeds
requirements in some areas, but not consistently or not without exception.
Outstanding 5 Performance consistently and clearly exceeds performance objectives and standards.
Initiative and self-direction are evident.
PART IV (B): EVALUATION OF COMPETENCIES
Sl.
No. Core Competencies Score
Rating
Self Supervisor
1
Leadership and decision making
5
Ability to motivate, empower, inspire, collaborate and encourage others to work; Develop
a culture where employees feel ownership in what they do and continually improve the
business; provide others with clear direction; Encourages others to pursue development
opportunities and create learning opportunities for associates; autonomy and
empowerment of staff; Demonstrates sound knowledge about the company in which it
operates. Makes well informed, effective and timely decisions.
2
Strategic thinking and Planning
5
Champions the organization's vision. Leads in defining/reorienting vision and strategic
direction of the company. Develops effective strategies to achieve the vision and missions
of the company. Acts as a catalyst for organizational change.
3
Resource usage
5
Ability to identify, monitor and reallocate financial and material resources in the most
optimal manner. Ability to take decisive steps to avoid or correct instances of potential
fraud, waste and/or abuse; Ability to measure the cost consciousness and ability to handle
costs well and optimally.
4 Integrity & ethics 5
81
Maintains high ethical standards; Does not compromise ethics to advance personal or
even organizational agenda and gains; Acts without consideration of personal gains; Does
not deliberately mislead others and keep promises; Takes clear ethical stands even if they
are unpopular; Immediately addresses any situation in which a peer, staff member, etc.,
is acting in an untrustworthy or dishonest manner; Does not abuse authority; Displays a
fair, sincere and honest attitude to all people and openly admits mistakes and takes action
to 5correct them
5
Communication
5
Writes and speaks effectively, using conventions proper to the situation; states own
opinions clearly and concisely; demonstrates openness and honesty; listens well during
meetings and feedback sessions; explains reasoning behind own opinions; asks others for
their opinions and feedback; asks questions to ensure understanding; exercises a
professional approach with others using all appropriate tools of communication; uses
consideration and tact when offering opinions.
6
Change Management and initiative
5
Ability to easily integrate changes in work practice to accommodate demands,
implementation of new technology or process, staff shortages, etc.; Adapts easily to
changes a; Accepts new ideas and approaches to work and respond appropriately
constructive criticism and to suggestions for improvement. Plans work and carries out
tasks without detailed instructions; makes constructive suggestions; prepares for
problems or opportunities in advance; undertakes additional responsibilities; and creates
solutions to problems.
7
Interpersonal relation and team work
5
Ability to establish and maintain positive and productive working relationships; create
wide network of good relationships with peers, subordinates, supervisors and customers;
Ability to generate trust and cooperation amongst these groups; Ability to meet regularly
with clients, stakeholders and his ability to institutionalize such relationships in order to
engender their cooperation and support. Works harmoniously with others to get a job
done; responds positively to instructions and procedures; able to work well with staff, co-
workers, peers and managers.
8
Service Focus and linkages
5
Values and delivers high quality, innovative service to all customers. Listens and responds
effectively to customer questions; resolves customer problems to the customer’s
satisfaction; respects all internal and external customers; uses a team approach when
dealing with customers; follows up to evaluate customer satisfaction; measures customer
satisfaction effectively;
commits to exceeding customer expectations
9
Occupational Safety
5
Ability to follow correct practices and concern the health and safety of colleagues and
public at large as well as one’s own safety; Ability to bring a sense of discipline, sound
management and his ability to follow correct procedures for all safety related activities
and encourages the use of safety procedures across the organization.
10
Employee Management and Development
5
The ability of appraisee to motivate and train employees and also their ability to optimally
utilize human resources in achievement of company goals. Also measures the ability of the
appraisee to develop his subordinates and enhance their skills.
82
11
Job knowledge
5
Demonstrates knowledge of techniques, skills, equipment, procedures and materials.
Applies knowledge to identify issues and internal problems; works to develop additional
technical knowledge and skills.
12
Work Output
5
Quantity of work done compared to expected output. The quantity of work done should
also be measured against the expected timeframe to complete assigned task
13
Quality of work
5
Establishes high standards and measures; is able to maintain high standards despite
pressing deadlines; does work right the first time and inspects work for flaws; tests new
methods thoroughly; considers excellence a fundamental priority.
14
Attendance and punctuality
5
The initiative of the Appraisee to make himself/herself present for duty and attend to
assigned job as and when required. The presence of the Appraisee on time for all duties,
work beyond normal hours of duty and his willingness to take on assigned tasks with zest
and vigor.
Total weights and scores (Self rating is only indicative and not taken into account in the final
rating) 70 X
Employee's comments:
Supervisor's comments:
Employee self rating (Self rating is only indicative and not
taken into account in the final rating):
Total Score by supervisor (B) = (X/70)x30:
83
PART D: CALCULATING OVERALL PERFORMANCE RATING
1 Overall Work/Target Rating (Max 70%)
2 Overall Competency Rating (Max 30%)
3 Overall Performance Rating (A + B)
PART E: EMPLOYEE TRAINING AND DEVELOPMENT PLAN
1
Specify any factors which may have impeded your performance during the performance period
Employee's comments:
Supervisor's comments:
2
Skills that may not have been utilized during the appraisal period
Employee's comments:
Supervisor's comments:
3
Progress against previously identified training and development needs(Use additional sheet if required)
Development Area Progress Special courses/trainings
4
Development and training priorities for the next appraisal period (Use additional sheet if required)
Priorities Plan for achievement
(What suggestions/steps are felt to address these
development priorities. E.g. on the job training, job rotation,
training and coaching)
Confirmation of completion (Please sign and date to signify that the review has been completed along with dialogue and discussion)
Employee's signature Date
Supervisor's Signature Date
Reviewer's signature Date
Reviewer's comment (If any)
84
Annexure VI: Employee Appraisal Forms for Managerial Group (M3-M1)
Part I: PERFORMANCE PLANNING FORM (Targets 60%)
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Targets
Instructions: At the start of each half-year, the supervisor and the appraise should discuss and develop a list of activities/responsibilities that an appraise should attempt to accomplish during the appraisal period. This shall be reviewed in July and December. This form shall be compiled by the supervisor/HRA and shall serve as basis when giving the final rating of the employee.
Sl. No Targets Weightage (60%) Date line Weightage
Total
Add additional sheets if needed.
Tick as appropriate below:
I have discussed and understood the Performance Plans above and agree to the targets on which
my performance would be evaluated during the Appraisal Period.
The performance Plan as above has not been understood by me, and I do not agree to the above
activities/targets on which my performance would be evaluated during the Appraisal Period. The
same may be forwarded to the Reviewer for consideration and appropriate modification.
Employee's Name and
Signature Date: Comments
Supervisor's Name and
Signature Date: Comments
85
Part II: Work Plan
Period: ……………………………………………………………………………………………
Name:……………………………………………Designation:……………………………….
Division:……………………………………………..
Sl.
No. Targets Activities
Start
Date
End
Date
Weight-
age Remarks
I have discussed and understood the above Work Plan and agree to the targets on which my performance
would be evaluated during the Appraisal Period.
The Work Plan as above has not been understood by me, and I do not agree to the above activities/targets on
which my performance would be evaluated during the Appraisal Period. The same may be forwarded to the
Reviewer for consideration and appropriate modification.
Comments (If any)
Date: Signature of Employee (Appraisee)
Comments (If any)
Date: Signature of Supervisor (Appraiser)
86
Part III: HALF YEARLY PERFORMANCE REVIEW FORM
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Half Yearly Accomplishments
Instructions: At the end of each half-year, an employee shall submit this form showing what he or she has accomplished for the half year.
These forms shall be compiled by the supervisor and shall serve as reference when giving the final rating to subordinate.
Sl. No Performance Targets Accomplished
Targets
Remaining
Targets Supervisor's comments
Add additional sheets if needed.
Other Accomplishments: Additional effort(s) made in achieving goals aside from those agreed in the Planning Form
Attach additional sheets as needed.
Employee's Name and Signature Date: Comments
Supervisor's Name and Signature Date: Comments
87
Part IV (A) : PERFORMANCE EVALUATION FORM
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL: Department/Division
PERFORMANCE RATING GUIDE
Adjective Rating Rating Explanation
Unacceptable 0.0 -49.9
Demonstrates poor performance. Work output is consistently low, regularly
fails to meet required outcomes, requires constant supervision, and shows
an indifference to job responsibilities
Below Satisfactory 50.0-64.9
Performance is below expectations. Assigned tasks maybe incomplete,
requires constant supervision and guidance and requires reasonable time to
correct problems.
Satisfactory 65.0-79.9
Meets all performance objectives and job responsibilities dimensions and
meets normal performance standards. Problems or errors are reported and
corrected promptly.
Commendable 80.0-89.9
Performance consistently above standard in meeting performance objective.
Exceeds requirements in some areas, but not consistently or not without
exception.
Outstanding 90.0-100.0
Performance consistently and clearly exceeds performance objectives and
standards. Initiative and self-direction are evident.
ADJECTIVAL PERFORMANCE APPRAISAL
Give a brief description of the employees work during the appraisal period
Name & signature of Supervisor: Name & signature of Reviewer:
88
Part IV (B): ANNUAL PERFORMANCE REVIEW FORM (Targets 60%)
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Overall Accomplishments
Instructions: At the end of each half-year, an employee shall submit this form showing what he or she has accomplished for the half
year. These forms shall be compiled by the supervisor and shall serve as reference when giving the final rating to subordinate.
Sl. No Performance Targets Achievement
Total (x) X
Total (A) =(X/100) x 60
Add additional sheets if needed.
Other Accomplishments: Additional effort(s) made in achieving goals aside from those agreed in the Planning Form
Attach additional sheets as needed.
Employee's Name and Signature Date: Comments
Supervisor's Name and Signature Date: Comments
89
Part IV (C ): PERFORMANCE EVALUATION FORM (Competencies 30%)
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL: Department/Division
PERFORMANCE RATING GUIDE
Performance Scale Explanation
Unacceptable 1
Demonstrates poor performance. Work output is consistently low, regularly fails to meet
required outcomes, requires constant supervision, and shows an indifference to job
responsibilities.
Below Satisfactory 2 Performance is below expectations. Assigned tasks maybe incomplete, requires constant
supervision and guidance and requires reasonable time to correct problems.
Satisfactory 3 Meets all performance objectives and job responsibilities dimensions and meets normal
performance standards. Problems or errors are reported and corrected promptly.
Commendable 4 Performance consistently above standard in meeting performance objective. Exceeds
requirements in some areas, but not consistently or not without exception.
Outstanding 5 Performance consistently and clearly exceeds performance objectives and standards.
Initiative and self-direction are evident.
PART IV (B): EVALUATION OF COMPETENCIES (30%)
Sl.
No. Core Competencies Score
Rating
Self Supervisor
1
Leadership and decision making
5
Ability to motivate, empower, inspire, collaborate and encourage others to work; Develop
a culture where employees feel ownership in what they do and continually improve the
business; provide others with clear direction; Encourages others to pursue development
opportunities and create learning opportunities for associates; autonomy and
empowerment of staff; Demonstrates sound knowledge about the company in which it
operates. Makes well informed, effective and timely decisions
2
Strategic thinking and Planning
5
Champions the organization's vision. Leads in defining/reorienting vision and strategic
direction of the company. Develops effective strategies to achieve the vision and missions
of the company. Acts as a catalyst for organizational change
3
Resource usage
5
Ability to identify, monitor and reallocate financial and material resources in the most
optimal manner. Ability to take decisive steps to avoid or correct instances of potential
fraud, waste and/or abuse; Ability to measure the cost consciousness and ability to handle
costs well and optimally.
4 Integrity & ethics 5
90
Maintains high ethical standards; Does not compromise ethics to advance personal or
even organizational agenda and gains; Acts without consideration of personal gains; Does
not deliberately mislead others and keep promises; Takes clear ethical stands even if they
are unpopular; Immediately addresses any situation in which a peer, staff member, etc.,
is acting in an untrustworthy or dishonest manner; Does not abuse authority; Displays a
fair, sincere and honest attitude to all people and openly admits mistakes and takes action
to 5correct them
5
Communication
5
Writes and speaks effectively, using conventions proper to the situation; states own
opinions clearly and concisely; demonstrates openness and honesty; listens well during
meetings and feedback sessions; explains reasoning behind own opinions; asks others for
their opinions and feedback; asks questions to ensure understanding; exercises a
professional approach with others using all appropriate tools of communication; uses
consideration and tact when offering opinions.
6
Change Management and initiative
5
Ability to easily integrate changes in work practice to accommodate demands,
implementation of new technology or process, staff shortages, etc.; Adapts easily to
changes a; Accepts new ideas and approaches to work and respond appropriately
constructive criticism and to suggestions for improvement. Plans work and carries out
tasks without detailed instructions; makes constructive suggestions; prepares for
problems or opportunities in advance; undertakes additional responsibilities; and creates
solutions to problems.
7
Interpersonal relation and team work
5
Abilty to establish and maintain positive and productive working relationships; create
wide network of good relationships with peers, subordinates, supervisors and customers;
Ability to generate trust and cooperation amongst these groups; Ability to meet regularly
with clients, stakeholders and his ability to institutionalize such relationships in order to
engender their cooperation and support. Works harmoniously with others to get a job
done; responds positively to instructions and procedures; able to work well with staff, co-
workers, peers and managers.
8
Service Focus and linkages
5
Values and delivers high quality, innovative service to all customers. Listens and responds
effectively to customer questions; resolves customer problems to the customer’s
satisfaction; respects all internal and external customers; uses a team approach when
dealing with customers; follows up to evaluate customer satisfaction; measures customer
satisfaction effectively;
commits to exceeding customer expectations
9
Occupational Safety
5
Ability to follow correct practices and concern the health and safety of colleagues and
public at large as well as one’s own safety; Ability to bring a sense of discipline, sound
management and his ability to follow correct procedures for all safety related activities
and encourages the use of safety procedures across the organization.
10
Employee Management and Development
5
The ability of appraisee to motivate and train employees and also their ability to optimally
utilize human resources in achievement of company goals. Also measures the ability of the
appraisee to develop his subordinates and enhance their skills.
91
11
Job knowledge
5
Demonstrates knowledge of techniques, skills, equipment, procedures and materials.
Applies knowledge to identify issues and internal problems; works to develop additional
technical knowledge and skills.
12
Quality of work
5
Establishes high standards and measures; is able to maintain high standards despite
pressing deadlines; does work right the first time and inspects work for flaws; tests new
methods thoroughly; considers excellence a fundamental priority.
13
Attendance and punctuality
The initiative of the Appraisee to make himself/herself present for duty and attend to
assigned job as and when required. The presence of the Appraisee on time for all duties,
work beyond normal hours of duty and his willingness to take on assigned tasks with zest
and vigor.
14
Supervisory
Ability to motivate, empower, inspire, collaborate and encourage others to work; Develop
a culture where employees feel ownership in what they do and continually improve the
business; Ability to build consensus when appropriate; Ability to provide others with clear
direction.
Total 70 X
Total weights and scores (Self rating is only indicative and not taken into account in the final rating)
(B) =(x/70)x30
1
Volume of work performed (10%)
10
Quantity of work done compared to expected output. The quantity of work done should
also be measured against the expected timeframe to complete assigned task.
Total (C )=10% 10 X
Employee's comments:
Supervisor's comments:
Employee self rating (Self rating is only indicative and not taken into account in the final rating):
Total Score by supervisor = (B+C)
92
PART D: CALCULATING OVERALL PERFORMANCE RATING
1 Overall Work/Target Rating (Max 60%)
2 Overall Competency Rating (Max 30%)
3
Volume of work performed (10%)
4 Overall Performance Rating (1 + 2+3)
PART E: EMPLOYEE TRAINING AND DEVELOPMENT PLAN
1
Specify any factors which may have impeded your performance during the performance period
Employee's comments:
Supervisor's comments:
2
Skills that may not have been utilized during the appraisal period
Employee's comments:
Supervisor's comments:
3
Progress against previously identified training and development needs(Use additional sheet if required)
Development Area Progress Special courses/trainings
4
Development and training priorities for the next appraisal period (Use additional sheet if required)
Priorities Plan for achievement (What suggestions/steps are felt to address these development priorities. E.g. on the job training, job rotation, training and coaching)
Confirmation of completion (Please sign and date to signify that the review has been completed along with dialogue and discussion)
Employee's signature Date
Supervisor's Signature Date
Reviewer's signature Date
Reviewer's comment (If any)
93
Annexure VI: Employee Appraisal Forms for Supervisory Group (O3-S1)
Part I: PERFORMANCE PLANNING FORM (Targets 40%)
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Targets
Instructions: At the start of each half-year, the supervisor and the appraise should discuss and develop a list of activities/responsibilities that an appraise should attempt to accomplish during the appraisal period. This shall be reviewed in July and December. This form shall be compiled by the supervisor/HRA and shall serve as basis when giving the final rating of the employee.
Sl. No Targets Weightage (40%) Date line Weightage
Total
Add additional sheets if needed.
Tick as appropriate below:
I have discussed and understood the Performance Plans above and agree to the targets on which my performance would be evaluated during the Appraisal Period.
The performance Plan as above has not been understood by me, and I do not agree to the above activities/targets on which my performance would be evaluated during the Appraisal Period. The same may be forwarded to the Reviewer for consideration and appropriate modification.
Employee's Name and
Signature Date: Comments
Supervisor's Name and
Signature Date: Comments
94
Part II: Work Plan
Period: ……………………………………………………………………………………………
Name:……………………………………………Designation:……………………………….
Division:……………………………………………..
Sl.
No. Targets Activities
Start
Date
End
Date
Weight-
age Remarks
I have discussed and understood the above Work Plan and agree to the targets on which my performance
would be evaluated during the Appraisal Period.
The Work Plan as above has not been understood by me, and I do not agree to the above activities/targets on
which my performance would be evaluated during the Appraisal Period. The same may be forwarded to the
Reviewer for consideration and appropriate modification.
Comments (If any)
Date: Signature of Employee (Appraisee)
Comments (If any)
Date: Signature of Supervisor (Appraiser)
95
Part III: HALF YEARLY PERFORMANCE REVIEW FORM
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Half Yearly Accomplishments
Instructions: At the end of each half-year, an employee shall submit this form showing what he or she has accomplished for the
half year. These forms shall be compiled by the supervisor and shall serve as reference when giving the final rating to
subordinate.
Sl. No Performance Targets Accomplished
Targets
Remaining
Targets Supervisor's comments
Add additional sheets if needed.
Other Accomplishments: Additional effort(s) made in achieving goals aside from those agreed in the Planning Form
Attach additional sheets as needed.
Employee's Name and Signature Date: Comments
Supervisor's Name and Signature Date: Comments
96
Part IV (A) : PERFORMANCE EVALUATION FORM
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL:
Department/Division
PERFORMANCE RATING GUIDE
Adjective Rating Rating Explanation
Unacceptable 0.0 -49.9
Demonstrates poor performance. Work output is consistently low, regularly
fails to meet required outcomes, requires constant supervision, and shows
an indifference to job responsibilities.
Below Satisfactory 50.0-64.9
Performance is below expectations. Assigned tasks maybe incomplete,
requires constant supervision and guidance and requires reasonable time to
correct problems.
Satisfactory 65.0-79.9
Meets all performance objectives and job responsibilities dimensions and
meets normal performance standards. Problems or errors are reported and
corrected promptly.
Commendable 80.0-89.9
Performance consistently above standard in meeting performance objective.
Exceeds requirements in some areas, but not consistently or not without
exception.
Outstanding 90.0-100.0
Performance consistently and clearly exceeds performance objectives and
standards. Initiative and self-direction are evident
ADJECTIVAL PERFORMANCE APPRAISAL
Give a brief description of the employees work during the appraisal period
Name & signature of Supervisor: Name & signature of Reviewer:
97
Part IV (B): ANNUAL PERFORMANCE REVIEW FORM (Targets 40%)
Review Period (month & year):
Name: Position Title:
Employee ID No.: Grade:
Overall Accomplishments
Instructions: At the end of each half-year, an employee shall submit this form showing what he or she has accomplished for the half
year. These forms shall be compiled by the supervisor and shall serve as reference when giving the final rating to subordinate.
Sl.
No Performance Targets Achievement
Total (x)
Total (A) =(X/100)x40
Add additional sheets if needed.
Other Accomplishments: Additional effort(s) made in achieving goals aside from those agreed in the Planning Form
Attach additional sheets as needed.
Employee's Name and Signature Date: Comments
Supervisor's Name and Signature Date: Comments
98
Part IV (C ): PERFORMANCE EVALUATION FORM (Competencies 30%)
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL: Department/Division
PERFORMANCE RATING GUIDE
Performance Scale Explanation
Unacceptable 1
Demonstrates poor performance. Work output is consistently low, regularly fails to meet
required outcomes, requires constant supervision, and shows an indifference to job
responsibilities
Below Satisfactory 2 Performance is below expectations. Assigned tasks maybe incomplete, requires constant
supervision and guidance and requires reasonable time to correct problems.
Satisfactory 3 Meets all performance objectives and job responsibilities dimensions and meets normal
performance standards. Problems or errors are reported and corrected promptly.
Commendable 4 Performance consistently above standard in meeting performance objective. Exceeds
requirements in some areas, but not consistently or not without exception.
Outstanding 5 Performance consistently and clearly exceeds performance objectives and standards.
Initiative and self-direction are evident
PART IV (B): EVALUATION OF COMPETENCIES (30%)
Sl.
No. Core Competencies Score
Rating
Self Supervisor
1
Resource usage
5
Ability to identify, monitor and reallocate financial and material resources in the most
optimal manner. Ability to take decisive steps to avoid or correct instances of potential
fraud, waste and/or abuse; Ability to measure the cost consciousness and ability to handle
costs well and optimally.
2
Integrity & ethics
5
Maintains high ethical standards; Does not compromise ethics to advance personal or
even organizational agenda and gains; Acts without consideration of personal gains; Does
not deliberately mislead others and keep promises; Takes clear ethical stands even if they
are unpopular; Immediately addresses any situation in which a peer, staff member, etc.,
is acting in an untrustworthy or dishonest manner; Does not abuse authority; Displays a
fair, sincere and honest attitude to all people and openly admits mistakes and takes action
to 5correct them
3
Communication
5
Writes and speaks effectively, using conventions proper to the situation; states own
opinions clearly and concisely; demonstrates openness and honesty; listens well during
meetings and feedback sessions; explains reasoning behind own opinions; asks others for
their opinions and feedback; asks questions to ensure understanding; exercises a
99
professional approach with others using all appropriate tools of communication; uses
consideration and tact when offering opinions.
4
Change Management and initiative
5
Ability to easily integrate changes in work practice to accommodate demands,
implementation of new technology or process, staff shortages, etc.; Adapts easily to
changes a; Accepts new ideas and approaches to work and respond appropriately
constructive criticism and to suggestions for improvement. Plans work and carries out
tasks without detailed instructions; makes constructive suggestions; prepares for
problems or opportunities in advance; undertakes additional responsibilities; and creates
solutions to problems.
5
Interpersonal relation and team work
5
Ability to establish and maintain positive and productive working relationships; create
wide network of good relationships with peers, subordinates, supervisors and customers;
Ability to generate trust and cooperation amongst these groups; Ability to meet regularly
with clients, stakeholders and his ability to institutionalize such relationships in order to
engender their cooperation and support. Works harmoniously with others to get a job
done; responds positively to instructions and procedures; able to work well with staff, co-
workers, peers and managers.
6
Service Focus and linkages
5
Values and delivers high quality, innovative service to all customers. Listens and responds
effectively to customer questions; resolves customer problems to the customer’s
satisfaction; respects all internal and external customers; uses a team approach when
dealing with customers; follows up to evaluate customer satisfaction; measures customer
satisfaction effectively;
commits to exceeding customer expectations
7
Occupational Safety
5
Ability to follow correct practices and concern the health and safety of colleagues and
public at large as well as one’s own safety; Ability to bring a sense of discipline, sound
management and his ability to follow correct procedures for all safety related activities
and encourages the use of safety procedures across the organization.
8
Job knowledge
5
Demonstrates knowledge of techniques, skills, equipment, procedures and materials.
Applies knowledge to identify issues and internal problems; works to develop additional
technical knowledge and skills.
9
Quality of work
5
Establishes high standards and measures; is able to maintain high standards despite
pressing deadlines; does work right the first time and inspects work for flaws; tests new
methods thoroughly; considers excellence a fundamental priority.
10
Attendance and punctuality
The initiative of the Appraisee to make himself/herself present for duty and attend to
assigned job as and when required. The presence of the Appraisee on time for all duties,
work beyond normal hours of duty and his willingness to take on assigned tasks with zest
and vigor.
11 Supervisory
100
Ability to motivate, empower, inspire, collaborate and encourage others to work; Develop
a culture where employees feel ownership in what they do and continually improve the
business; Ability to build consensus when appropriate; Ability to provide others with clear
direction.
Total 55 X
Total weights and scores (Self rating is only indicative and not taken into account in the final rating)
(B) =(x/55)x30
1
Volume of work performed (30%)
30
Quantity of work done compared to expected output. The quantity of work done should
also be measured against the expected timeframe to complete assigned task.
Total (C )=30% 30 X
Employee's comments:
Supervisor's comments:
Employee self rating (Self rating is only indicative and not taken into account in the final rating):
Total Score by supervisor = (B+C)
101
PART D: CALCULATING OVERALL PERFORMANCE RATING
1 Overall Work/Target Rating (Max 40%)
2 Overall Competency Rating (Max 30%)
3 Volume of work performed (30%)
4 Overall Performance Rating (1 + 2+3)
PART E: EMPLOYEE TRAINING AND DEVELOPMENT PLAN
1
Specify any factors which may have impeded your performance during the performance period
Employee's comments:
Supervisor's comments:
2
Skills that may not have been utilized during the appraisal period
Employee's comments:
Supervisor's comments:
3
Progress against previously identified training and development needs(Use additional sheet if required)
Development Area Progress Special courses/trainings
4
Development and training priorities for the next appraisal period (Use additional sheet if required)
Priorities Plan for achievement (What suggestions/steps are felt to address these development priorities. E.g. on the job training, job rotation, training and coaching)
Confirmation of completion (Please sign and date to signify that the review has been completed along with dialogue and discussion)
Employee's signature Date
Supervisor's Signature Date
Reviewer's signature Date
Reviewer's comment (If any)
102
Annexure VII: Employee Performance Appraisal Forms for Operational
Group (O7-O4)
Part IV (A) : PERFORMANCE EVALUATION FORM
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL: Department/Division
PERFORMANCE RATING GUIDE
Adjective Rating Rating Explanation
Unacceptable 0.0 -49.9
Demonstrates poor performance. Work output is consistently low, regularly
fails to meet required outcomes, requires constant supervision, and shows
an indifference to job responsibilities
Below Satisfactory 50.0-64.9
Performance is below expectations. Assigned tasks maybe incomplete,
requires constant supervision and guidance and requires reasonable time to
correct problems.
Satisfactory 65.0-79.9
Meets all performance objectives and job responsibilities dimensions and
meets normal performance standards. Problems or errors are reported and
corrected promptly.
Commendable 80.0-89.9
Performance consistently above standard in meeting performance objective.
Exceeds requirements in some areas, but not consistently or not without
exception.
Outstanding 90.0-100.0
Performance consistently and clearly exceeds performance objectives and
standards. Initiative and self-direction are evident
ADJECTIVAL PERFORMANCE APPRAISAL
Give a brief description of the employees work during the appraisal period
Name & signature of Supervisor: Name & signature of Reviewer:
103
Part I (A ): PERFORMANCE EVALUATION FORM (Competencies 30%)
Appraisal Period:
Name: Employee ID No.
Designation: Grade
Date of joining SMCL: Department/Division
PERFORMANCE RATING GUIDE
Performance Scale Explanation
Unacceptable 1
Demonstrates poor performance. Work output is consistently low, regularly fails to meet
required outcomes, requires constant supervision, and shows an indifference to job
responsibilities
Below Satisfactory 2 Performance is below expectations. Assigned tasks maybe incomplete, requires constant
supervision and guidance and requires reasonable time to correct problems.
Satisfactory 3 Meets all performance objectives and job responsibilities dimensions and meets normal
performance standards. Problems or errors are reported and corrected promptly.
Commendable 4 Performance consistently above standard in meeting performance objective. Exceeds
requirements in some areas, but not consistently or not without exception.
Outstanding 5 Performance consistently and clearly exceeds performance objectives and standards.
Initiative and self-direction are evident
EVALUATION OF COMPETENCIES (30%)
Sl.
No. Core Competencies Score
Rating
Self Supervisor
1
Integrity & ethics
5
Maintains high ethical standards; Does not compromise ethics to advance personal or
even organizational agenda and gains; Acts without consideration of personal gains; Does
not deliberately mislead others and keep promises; Takes clear ethical stands even if they
are unpopular; Immediately addresses any situation in which a peer, staff member, etc.,
is acting in an untrustworthy or dishonest manner; Does not abuse authority; Displays a
fair, sincere and honest attitude to all people and openly admits mistakes and takes action
to 5correct them
2
Communication
5
Writes and speaks effectively, using conventions proper to the situation; states own
opinions clearly and concisely; demonstrates openness and honesty; listens well during
meetings and feedback sessions; explains reasoning behind own opinions; asks others for
their opinions and feedback; asks questions to ensure understanding; exercises a
professional approach with others using all appropriate tools of communication; uses
consideration and tact when offering opinions.
3
Change Management and initiative
5
Ability to easily integrate changes in work practice to accommodate demands,
implementation of new technology or process, staff shortages, etc.; Adapts easily to
104
changes a; Accepts new ideas and approaches to work and respond appropriately
constructive criticism and to suggestions for improvement. Plans work and carries out
tasks without detailed instructions; makes constructive suggestions; prepares for
problems or opportunities in advance; undertakes additional responsibilities; and creates
solutions to problems.
4
Interpersonal relation and team work
5
Ability to establish and maintain positive and productive working relationships; create
wide network of good relationships with peers, subordinates, supervisors and customers;
Ability to generate trust and cooperation amongst these groups; Ability to meet regularly
with clients, stakeholders and his ability to institutionalize such relationships in order to
engender their cooperation and support. Works harmoniously with others to get a job
done; responds positively to instructions and procedures; able to work well with staff, co-
workers, peers and managers.
5
Occupational Safety
5
Ability to follow correct practices and concern the health and safety of colleagues and
public at large as well as one’s own safety; Ability to bring a sense of discipline, sound
management and his ability to follow correct procedures for all safety related activities
and encourages the use of safety procedures across the organization.
6
Employee Management and Development
5
The ability of appraisee to motivate and train employees and also their ability to optimally
utilize human resources in achievement of company goals. Also measures the ability of the
appraisee to develop his subordinates and enhance their skills.
7
Job knowledge
5
Demonstrates knowledge of techniques, skills, equipment, procedures and materials.
Applies knowledge to identify issues and internal problems; works to develop additional
technical knowledge and skills.
8
Quality of work
5
Establishes high standards and measures; is able to maintain high standards despite
pressing deadlines; does work right the first time and inspects work for flaws; tests new
methods thoroughly; considers excellence a fundamental priority.
9
Attendance and punctuality
The initiative of the Appraisee to make himself/herself present for duty and attend to
assigned job as and when required. The presence of the Appraisee on time for all duties,
work beyond normal hours of duty and his willingness to take on assigned tasks with zest
and vigor.
Total 45 X
Total weights and scores (Self rating is only indicative and not taken into account in the final rating)
(A) =(x/45)x30
1
Volume of work performed (70%)
70
Quantity of work done compared to expected output. The quantity of work done should
also be measured against the expected timeframe to complete assigned task.
Total (B )=70% 70 X
105
Employee's comments:
Supervisor's comments:
Employee self rating (Self rating is only indicative and not taken into account in the final rating):
Total Score by supervisor = (A+B)
106
PART D: CALCULATING OVERALL PERFORMANCE RATING
1 Overall Competency Rating (Max 30%)
2 Volume of work performed (70%)
3 Overall Performance Rating (1 + 2)
PART E: EMPLOYEE TRAINING AND DEVELOPMENT PLAN
1
Specify any factors which may have impeded your performance during the performance period
Employee's comments:
Supervisor's comments:
2
Skills that may not have been utilized during the appraisal period
Employee's comments:
Supervisor's comments:
3
Progress against previously identified training and development needs(Use additional sheet if required)
Development Area Progress Special courses/trainings
4
Development and training priorities for the next appraisal period (Use additional sheet if required)
Priorities Plan for achievement
(What suggestions/steps are felt to address these
development priorities. E.g. on the job training, job rotation,
training and coaching)
Confirmation of completion (Please sign and date to signify that the review has been completed along with dialogue and
discussion)
Employee's signature Date
Supervisor's Signature Date
Reviewer's signature Date
Reviewer's comment (If any)
107
