Performance Management System
- 1. Employee Performance Evaluation Performance Management System for Indian Air Force Ea11001 – A V Suresh, EMP (Defence) Under the Guidance of Prof. MG Jomon XLRI - Jamshedpur
- 2. TABLE OF CONTENTS Introduction ............................................................................................................................. 2 Purpose ................................................................................................................................... 2 Applicability .............................................................................................................................. 2 Objective of Performance Appraisal ............................................................................................. 2 Performance Appraisal in Government Organizations ..................................................................... 3 Suggested Components of Performance Management System for IAF .............................................. 4 Performance Counseling & Objective Setting .............................................................................. 4 Performance Assessment ......................................................................................................... 4 Performance Development ....................................................................................................... 4 PMS Format .............................................................................................................................. 5 THE OBJECTIVE ........................................................................................................................ 6 INSTRUCTIONS – READ CAREFULLY: ................................................................................... 6 Conclusion.............................................................................................................................. 11 1
- 3. PERFORMANCE MANAGEMENT SYSTEM I NDIAN A IR F ORCE INTRODUCTION According to Edwin B. Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of employees during a given period of time and planning for his future. Performance Appraisal is an objective system to judge the ability of an individual employee to perform his tasks. A good performance appraisal system should focus on the individual and his development, besides helping him to achieve the desired performance. This means that while the results are important the organization should also examine and prepare its human capital to achieve this result. This holds true even for new inductees. There is a strong linkage between induction, training and appraisal. In a large number of firms worldwide, a new recruit is expected to discuss his schedule of work in achieving his induction objective. Performance Management System is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. PURPOSE To institutionalize the Performance Management System by developing an integrated process of objective setting, assessment and evaluation that will support individual, departmental & organizational growth and help create a performance driven culture in the Indian Air Force. APPLICABILITY This Performance Management System would be applicable to all Air Warriors of Indian Air Force after due approval. The Appraisal Year would be from 01 April to 31 March. OBJECTIVE OF PERFORMANCE APPRAISAL To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. 2
- 4. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. Almost all organizations practice performance appraisal in one form or another to achieve certain objectives. These objectives may vary from organization to organization or even within the same organization from time to time. It has been found that there are two primary objectives behind the use of this methodology. One is to use it as an evaluation system and second, to use as a feedback system. The aim of the evaluation system is to identify the performance gap. This means that it helps determine the gap between the actual performance of the employee and that required or desired by the organization. The aim of the feedback system is to inform the employee about the quality of his work or performance. This is an interactive process by which the employee can also speak about his problems to his superior. PERFORMANCE APPRAISAL IN GOVERNMENT ORGANIZATIONS The commitment to the performance appraisal system in public organizations in India is very low. Low commitment and lack of accountability are the major reasons for the low institutionalization of the performance appraisal processes in government organizations. Performance appraisal in most of the government enterprises is not directly linked to rewards, training or promotions due to which the approach towards the whole process remains unprofessional. There is a lack of the appropriate atmosphere and professional approach towards the performance appraisal system and the objective of the whole exercise is defeated. The most common method of Performance appraisal that is used in most of the government organizations is confidential report (popularly known as CR) written by the superior of the employees. The following are the major discrepancies found in the performance appraisal processes being followed at the government organizations. Most of the indicators used for measuring the performance the employees are not quantifiable in nature, making it difficult to measure the performance. Due to the lack of accountability and job security, most government employees have a laissez- faire attitude towards their work. Unavailability of the job descriptions for many employees. Most of the objectives in government organizations are unchallenging, unrealistic and not timely reviewed and updated. It is difficult to measure the average performance of the government employees. Unprofessional and unstructured approach towards the process. There is often a lot of bias and subjectivity involved in the ratings given by the superiors. 3
- 5. Lack of complete information on appraisal forms due to expertise and relevant training; often, the appraisals are not conducted on a regular basis. In government organizations, team appraisal is often not possible. SUGGESTED COMPONENTS OF PERFORMANCE MANAGEMENT SYSTEM FOR IAF In the suggested Performance Management System for IAF, every individual would be reported upon / assessed by two levels of hierarchy. That is one who is immediately placed above him and by the one who is placed immediately above his immediate superior. This method is suitable as it removes the objectivity in the reporting chain by providing a counter balance. The PMS components are given below:- Performance Counseling & Objective Setting Performance Assessment Performance Development PERFORMANCE COUNSELING & OBJECTIVE SETTING Performance counseling is an important part of the Performance Management System as it makes the objectives of the Organisation and individual performance clear and simple. It also aligns individual goals to organizational objectives at every level in the Organizational Hierarchy. Individual objectives and KPA’s are then decided for the appraisal year through consultation and mutual agreement between the appraisee and the appraiser by 1st of April of every year. Every Appraisee is to be counseled at least once in a quarter. The Appraiser is to maintain a Counseling Register, which would be a Confidential Document. The Appraisal form appended below is to be filled at the end of the Appraisal Year. PERFORMANCE ASSESSMENT Performance Assessment is done in an objective and scientific manner as explained. The appraisee is to fill up the PMS Form and submit the same to the appraiser before 31st March. PERFORMANCE DEVELOPMENT Inputs from the Performance Counseling exercise and Part-III of the PMS form can be used for planning the career development of the individual. To ensure the growth of an individual, development strategies like training, coaching, mentoring, job rotation & job enlargement may be deployed. To achieve career enhancement, areas for development needs to be identified with focus on the current as well as future job responsibilities of the appraisee. 4
- 6. PMS FORMAT The PMS form would be in three parts. Part – I consists of self-evaluation of the Job by the appraisee. Using the Self appreciation of one’s own job, the appraiser can get an understanding of how well the appraisee has understood his Job, and would form a part of input to the Counseling activity, where, the gap in understanding can be filled. The KPAs have to be worked out after discussing with the appraisee and the same need to be recorded in the Counseling Register. Part-II is to assess the appraisee on the following six competencies. The maximum marks that can be allotted and the sub qualities that would be assessed are given under each competency. Job Knowledge Quality of Work Approach to work Interpersonal skills Communication Organisation and Culture. Part-III is about the training and development needs of the appraisee. The appraiser is also to fill up a pen picture of the individual. The scores given by the appraiser is to be in conformity with the pen picture. The pen picture written by the appraiser would also help the reviewing officer to assess the individual. The reviewing officer, would, any way know the appraisee. Therefore, the pen picture given by the appraiser also acts as a check and balance for a fair appraisal system. 5
- 7. -------CONFIDENTIAL WHEN FILLED----- APPRAISAL FORM THE OBJECTIVE To assess past level of goal achievement and identify development needs. To involve appraisee and appraiser in identifying future performance goals. To encourage leader – follower communication. INSTRUCTIONS – READ CAREFULLY: This appraisal form should be submitted by the appraisee to the appraiser after filling the self- appraisal (Column A) section of the form and signing on each page at top and bottom with his service number. The appraiser has to thoroughly go through the self-appraisal given by the appraisee and carry out a performance counseling before finalizing the rating. The Performance Counseling should be carried out in an atmosphere of privacy. Carefully analyze the person’s overall job performance and traits. Do not make a snap judgment. Column A to be filled by Appraisee, Column B to be filled in by Appraiser, Column C has to be filled in by Reviewing Officer before forwarding to the HR section. GUIDELINES FOR APPRAISAL Every individual should receive ongoing feedback during the year and a formal annual performance assessment / appraisal. During the counseling / assessment sessions the Appraiser should create an open and approachable environment in which a two-way discussion can be made possible with the Appraisee. The Appraisee on his part should be willing to give and receive proper feedback during the counseling / assessment session. Performance Counseling should cover how the year that went by was for the Appraisee, what he has achieved, how was it done and what the way forward is for the Appraisee. The Appraiser should maintain a counseling register (Confidential Document) in which the proceedings of each counseling session be entered and the signature of the appraisee be obtained. Both Appraiser and the Appraisee should have all the facts and data to support the Appraisee’s KPA performance achievements ready with them during the appraisal discussions so that any ambiguity in the target achievement can be cleared. 6
- 8. Service Number: ------------------- Signature: -------------------- PART - I Give a brief description of the duties assigned to you (Both Primary and Secondary). KEY PERFORMANCE Max 1 WEIGHTAGE RESULTS ACHIEVED (A) (B) (C) (D) AREA Marks a b c d Weightage: Each KPA needs to be given a weightage depending on its importance in the individual Appraisee’s job profile. The total weightage of all KPA’s should amount to 100%. I have been personally counseled on the following dates and my strengths and weaknesses were brought out to me. QUARTER - I QUARTER - II QUARTER - III QUARTER – IV Date------------- Date ------------- Date -------------- Date ------------- Name: ____________________ Rank (Sub/Actg):_______________________ Service No: ________________Date: _________________________________ Appraisal Period: ______________________________ 7
- 9. Service Number: --------------- Signature: -------------------- PART - II APPRAISEE APPRAISER REVIEWER AGGREGATE 1 Job Knowledge MAX (A) (B) (C) (D) a Job Knowledge 5 Analysis of Problem & 10 b Suggestions for work improvement Follow up of proper 5 c Procedure Accuracy, Precision, 5 d Thoroughness &Neatness e Reliability & Decision Making 5 2 QUALITY OF WORK a Priority Setting 5 b Amount of work Completed 10 Adherence to Work 5 c Schedule 3 APPROACH TO WORK a Initiative& Innovativeness 5 b Planning 5 c Following Instructions 5 Regular Attendance& 5 d Discipline 4 INTER PERSONAL SKILLS Interaction with 5 a others(superiors, peers &subordinates) Team Work (Participation, 10 b contribution and commitment) 5 COMMUNICATION Ability to convey thoughts 5 a &feelings with clarity ORGANISATION 6 CULTURE Integrity, Loyalty & 5 a Organizational Ethics Follows Organizational 5 b Policies and Procedures TOTAL 100 Service Number: ------------------- Signature: ---------------------- 8
- 10. Service Number: -------------- Signature: ---------------------- PART - III TRAINING FEEDBACK/NEED FOR THE YEAR Please give below the details of all the programmes attended by you in the year. (In-service courses, Conferences, Service specific or any other training programmes) Date Nature of the Particulars of the Facilitator Effectiveness of the programme programme programme Please specify areas where you would need inputs by way of training (both professional & personal development). Also specify what would be your efforts in developing yourself in these areas. S No Training need My commitment/efforts Remarks (Appraiser) Pen Picture of the Individual (To be filled by the Appraiser) Service Number: ------------------- Signature: ---------------------- 9
- 11. I have completed the appraisal form true to the best of my knowledge. Signature & Date: ________________ _______________________________ (Appraise) (Appraiser) Rank ______________________ Rank ______________________ Name ______________________ Name ______________________ Service No. _________________ Service No. _________________ Appointment ________________ Appointment ________________ Signature & Date: ___________________________ (Reviewing Officer) Rank ______________________ Name ______________________ Service No. _________________ Appointment ________________ ------------------------------------------------------------------------------------------------ (FOR HR DEPARTMENT USE ONLY) D= 20% (SUM TOTAL OF A) + 40 %( SUM TOTAL OF B) + 40% (SUM TOTAL OF C) CALCULATION: P ART I*X/100 + PART II*Y/100 WHERE X+Y=100 Final Grading of the Individual………………………………………………… -------CONFIDENTIAL WHEN FILLED----- Outstanding 90%- 100% Performance is exceptional and far exceeds expectations. Consistently demonstrates excellent standards in all job requirements. Very Good 76%-89% Performance is consistent, and exceeds expectations in all situations. Good 60%-75% Performance is consistent. Clearly meets essential requirements of job. 10
- 12. Fair 45%-59% Performance is satisfactory. Meets requirements of the job. Needs Improvement 31%-44% Performance is inconsistent. Meets requirements of the job occasionally. Supervision and training is required for most problem areas. Unsatisfactory 0%-30% Performance does not meet the minimum requirements of the job. CONCLUSION For an organization to be an effective organization and to achieve its goals, it is very important to monitor or measure its’ and its employee performance on a regular basis. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. Timely recognition of the accomplishments also motivates the employees and help to improve the performance. Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses. Performance appraisal is a formal exercise carried out for all executives and workers/staff with respect to their contributions made towards the growth of the organization. The aim is to measure the overall performance of an employee over a period of time, usually one year, by his immediate supervisor so as to provide a feedback to the employees and aid the management. Performance appraisal does not merely measure the performance of the people but has many other benefits. Performance appraisal helps management to collect data on human resources and use it for enhancing responsiveness of the organization. Since performance appraisal is done by people who have emotions, there will always be some subjectivity. Though criterion could be stipulated, personal likings and biases will influence the evaluation. Every assessor has a price expectation of a particular type of behavior. Therefore, our effort should be accept this cognitive bias and to systematize the bias. 11