PROJECT REPORT P ERFORMANCE

MANAGEMENT SYSTEM

KUSHAGRA SAXENA
SUMMER INTERN 2005

ACKNOWLEDGEMENT

Kushagra Saxena
 PREFACE
Kushagra Saxena
PMIR 2004-06
XLRI, Jamshedpur

METHODOLOGY
Step I – Defining Scope and Expectations
Step II – Data Collection
Step III – Benchmarking
Step IV – Designing the Performance Appraisal System
Step V – Linking Performance Appraisal System to other fields
Step VI – Primary Presentation to Baddi Team & Incorporation of Inputs

Step VIII – Approvals

 PERFORMANCE
MANAGEMENT SYSTEM

BADDI FACILITY
COLGATE PALMOLIVE (INDIA) LTD

CONTENTS
INTRODUCTION 10
SCOPE 10
PERFORMANCE APPRAISAL SYSTEM 11
Performance Appraisal Criteria 11
Performance Appraisal Frequency 12
Number of Appraisers 13
Performance Appraisal Tools 13
13
14
14
14
14
15
15
15
15
Performance Appraisal Methodology 16
Performance Appraisal Feedback System 19
Scope for Future Modification 20
PERFORMANCE REWARD SYSTEM 21
Benchmarking 21
Performance Reward 21
21
22
Performance Reward System – Salient Features 23
LINKING PERFORMANCE APPRAISAL T&D 24

EMPLOYEE RECOGNITION SCHEME 25

Team of the Month 25
Thank You Slips 27
Innovator Employee 27
RECOMMENDATIONS ON GRADE SYSTEM 29
Benchmarking 29
Merits & Demerits 30
Recommendations 30

ANNEXURE
Annexure 1 – Critical Incident Diary 31
Annexure 2 – Performance Appraisal Form 35
Annexure 3 – Evaluation Manual 39
Annexure 4 – Ranking Meeting Guide 45
Annexure 5 – Skill Inventory 49

INTRODUCTION
SCOPE
PERFORMANCE APPRAISAL SYSTEM
“Below Expectations”, “Meets Expectations” or “Exceeds Expectation”
PERFORMANCE APPRAISAL CRITERIA
Functional Competency:
Quantitative Measures:
3. Adherence to Baddi Guiding Principles:
o
o
o
o
o
PERFORMANCE APPRAISAL FREQUENCY
NUMBER OF APPRAISERS

PERFORMANCE APPRAISAL TOOLS

CRITICAL INCIDENT DIARY1

PERFORMANCE APPRAISAL FORM2

EVALUATION MANUAL3

CALCULATION SHEET
SKILL INVENTORY4
RANKING MEETING
Ranking Meeting Guide
IMPROVEMENT STATEMENT
COUNSELING SESSION
REVIEW SESSION
PERFORMANCE APPRAISAL METHODOLOGY
1. Explaining the Performance Appraisal Mechanism to Employees:
objectives, methodology and rationale
2. Critical Incident Recording

must
Negative as well as Positive
real timei.e.
3. Filling Performance Appraisal Form
evaluation manual
Each rating must be backed by clearly written down critical incidents
skill inventory6
improvement statement
Gating Concept
No employee will get an overall rating greater than or equal to “Meets
Expectation” unless the ratings in all three components are at least
“Meets Expectation”
4. Counseling Session

Form Submission:
Ranking Meeting:
Ranking Meeting
Guide
7. Review Session – Final Rating & Feedback:

8. Signatures:
PERFORMANCE APPRAISAL FEEDBACK SYSTEM:
1. Personal Counseling Sessions:
2. Improvement Statement:

Review Session:
4. Dissatisfaction with Appraisal:
SCOPE FOR FUTURE MODIFICATION

PERFORMANCE REWARD SYSTEM

BENCHMARKING
PERFORMANCE REWARD SYSTEM

PERFORMANCE BASED WAGE INCREMENT

•
•
o
o

Average
Low Performers High
Performers Performers

•
 •
•
Rationale
•
•
•
PRODUCTIVITY BONUS
•
•
•
example

Rationale
•
•
•
•

PERFORMANCE REWARD SYSTEM – SALIENT FEATURES

•
o
o
•
o
o
 LINKING PERFORMANCE APPRAISAL TO T&D
EMPLOYEE RECOGNITION (NON MONITORY) SCHEMES
1. Team of the Month
Concept
Purpose
•
•
•
•

Evaluation

Total 100 Marks

Reward
Thank You Slips
Concept
out of the way
Purpose
•
•
•
•
Evaluation
•
•
Reward
 and
3. Innovator Employee
Concept
Purpose
•
•
•
•
Evaluation
Reward
•
•
•

RECOMMENDATIONS ON GRADE SYSTEM

BENCHMARKING
Sl Company Grade No Of Basis of
No Name Location System Grades Promotion Observations
1. Responsibilty of work
lies with upper grades
2. Lower grades at times
exploited by upper grades
3. Same work but clear
1 Dabur Baddi Yes 3 Performance "percieved" growth path
1. Completely flat
structure for 9 years
2. Differentiation only in
terms of performance
linked payscales
3. Workers percieve
growth in terms of
performance pay and the
Unichem start performer respect
2 Pharma Baddi No - - that comes along
1. Aims at providing clear
growth path
2. Each higher grade
comes with greater
responsibility and "higher
3 Joyco/Wrigleys Baddi Yes 5+8 Performance level" work
4 Pepsi Sangrur Yes 6 NA
Performance
5 Nestle Moga Yes 5 + Skill
1. Three levels within
Performance grades with seniority as
6 Morepen Parwanoo Yes 9 + Seniority pre requisite
7 HLL Rajpura Yes 4 NA
Indo-Gulf
8 Fertilizers Jagdishpur Yes NA NA

9 Godrej Mumbai Yes NA NA

1. Seniority is pre
requisite for promotion
irrespective of
performance
Seniority + 2. Some promotions only
10 ITC Bangalore Yes 14 Performance if vacancy exists

MERITS & DEMERITS

• •
o o
o o
o
• •
RECOMMENDATIONS
• Premature to introduce grade system
o
o
o
o
• Review: August 2007
o
o
o
ANNEXURE 1
Critical Incident Diary
 Employee Name: ________________________ Employee Code: ______

CRITICAL INCIDENT DIARY

Our People
•

Business
•
•
Our Values
•
•

Our Environment
•
Communication & Decision Making
•
•

GUIDELINES
must
Negative as well as Positive
real timei.e.
 ANNEXURE 2
Performance Appraisal Form
 COLGATE PALMOLIVE INDIA LTD BADDI
FACILITY

PERFORMANCE REVIEW FOR TECHNICIANS & TEAM MEMBERS

APPRAISEE’S NAME: _________________________________ EMP. CODE: ___________ DATE : _____________

DD/MM/YYYY

Date Of Joining : _____________ APPRAISAL: ROUTINE REVIEW APPRAISAL No : 2005 /

APPRAISERS' NAME: (1). _________________________________ (2). ___________________________________

Scoring Key:
Below Expectation – 2 Points Meets Expectation – 3 Points Exceeds Expectation
– 4 Points

1. FUNCTIONAL COMPETENCY –
(Weightage - 50%) |------------------Tick One---------------------|
Below Meets Exceeds
Core Skills Expectatio Expectatio Expectatio Comments
n n n

F1 -

F2 -

F3 -

F4 -

F5 -

Functional Rating (Tick One)

Percentage Score: [(F1+F2+F3+F4+F5)/20] x 100 = [(__+__+__+__+__)/20]*100 Below 65% : Below Expectation 

A= % 65% – 85% : Meets Expectation

Above 85% : Exceeds Expectation


 COLGATE PALMOLIVE INDIA LTD BADDI
FACILITY

2. QUANTITATIVE MEASURES
(Weightage – 25%) |------------------Tick One---------------------|
Below Meets Exceeds
Measure Expectatio Expectatio Expectatio Comments
n n n

Q1 – ATTENDANCE

Q2 – PUNCTUALITY

Quantitative Measures Rating (Tick One)

Percentage Score: [(Q1+Q2)/8] x 100 = [(__+__)/8]*100 Below 65% : Below Expectation 

B= % 65% – 85% : Meets Expectation

Above 85% : Exceeds Expectation



3. FOLLOWING OUR GUIDING PRINCIPLES

(Weightage – 25%) |------------------Tick One---------------------|
Below Meets Exceeds
Measure Expectatio Expectatio Expectatio Comments
n n n

ADHERANCE TO BADDI
GUIDING PRINCIPLES
Guiding Principles Rating (Tick One)
Percentage Score: [Score/4] x 100 = [(___)/4]*100 Below 65% : Below Expectation 

C= % 65% – 85% : Meets Expectation

Above 85% : Exceeds Expectation


 COLGATE PALMOLIVE INDIA LTD BADDI
FACILITY
4. FINAL RATING Final Rating [After Applying Gating] (Tick
(A x 0.5) +(B x 0.25) + (C x 0.25) One)
5. IMPROVEMENT STATEMENT
D= % Below 65% : Below Expectation
65% – 85% : Meets Expectation


Above 85% : Exceeds Expectation 
GATING: If rating in any of the three components of Performance Appraisal is “Below Expectation”, then overall rating will be “Below
Expectation”

COMMENTS BY APPRAISER 1 COMMENTS BY APPRAISER 2 COMMENTS BY Function Head :

6. SIGNATURES DATE : _____________

APPRAISEES' SIGNATURE : ______________________ APPRAISERS' SIGNATURE : (1). ________________________

Function Head’s SIGNATURE : ___________________ (2). ________________________

ANNEXURE 3
Evaluation Manual

Evaluation Manual
1. Functional Competency
•
•
•
•
• critical incident diary
•
Percentage Score: [(F1+F2+F3+F4+F5)/20] x 100 =
[(__+__+__+__+__)/20]*100
A= %

•
Below 65% Below Expectation
65% – 85% Meets Expectation
Above 85% Exceeds
Expectation

Quantitative Measures

Attendance:
Below Expectation Meets Expectation Above Expectation
• Leave is excessive • Leave is not above site • Rarely takes leave
(above site av.) average • Goes out their way to
• Is poor at providing • Early notification of provide coverage
reasonable notice absence or lateness where required
Punctuality:
Below Expectation Meets Expectation Above Expectation
• Punctual start and • Is punctual with start • Starts early and
finish times are an and finish times finishes late where
issue required to ensure
smooth handovers
•
 Percentage Score: [(Q1+Q2)/8] x 100 = [(__+__)/8]*100
B= %

•
Below 65% Below Expectation
65% – 85% Meets Expectation
Above 85% Exceeds
Expectation

3. Following Our Guiding Principles

•
•
•
•
o
o
o
o
o
•
•
Percentage Score: [(G1)/4] x 100 = [(__)/8]*100
C= %

•
Below 65% Below Expectation
65% – 85% Meets Expectation
Above 85% Exceeds
 Expectation
4. Overall Rating

•
(A x 0.5) +(B x 0.25) + (C x 0.25)
D= %

•
Below 65% Below Expectation
65% – 85% Meets Expectation
Above 85% Exceeds
Expectation
• Gating Concept:
No employee will get an overall rating greater than or equal to “Meets
Expectation” unless the ratings in all three components are at least “Meets
Expectation”
5. Improvement Statement
6. Signatures
 ANNEXURE 4
Ranking Meeting Guide

RANKING MEETING GUIDE

PURPOSE
RANKING MEETING
PRE-WORK FOR RANKING MEETING
PARTICIPANTS OF RANKING MEETING
Ranking Meeting
RANKING MEETING PROCESS
Step I
•
• No Discussion
•
o
o
Step II
•
•
Step III
•
•
•
•
Step IV
•
FINAL RANKING LIST
•
•
•

ANNEXURE 5
Skill Inventory
 Skill Inventory Below Expectation
2 3
Does not fully understand the changeover
Change-Overs process; Does not complete work in an
accurate and timely manner
Does not fully understand the C&S process;
Does not understand the C&S SOP and
Cleaning & Sanitization visual clean standards. Does not complete
work in an accurate and timely manner,
Needs constant supervision.
Does not appriciate the need for
documentation and data collection; Lacks
Documentation complete understanding of documentation
process; Has had issues with timely and
accurate completion of documentation
Does not understand the manufacturing
Cross Functional process and how his work links to operations
Knowledge performance; Has not made effort to become
involved outside own work area
Core Work
Lacks in skills of PM, has had issues with
Preventive Maintainance timely completion of PM work, needs
continuous inputs/feedback
Does not respond quickly to breakdowns; No
sense of urgency when doing repairs;
Break Downs Repairs are generally inadequate or sub
standard
Meets Expectation Above Expectation
4
Demonstrates complete familiarity with all
Understand sequence and steps of core
aspects changeover process, tools & line
aspects of Changeover process; Completes
changeover timely, in right sequence, with
adjustments; Consistently contributes to
reducing changeover times without
the right tools
compromising safety and quality
Understand sequence and steps of core
Demonstrates complete familiarity with all
aspects of C&S process; Completes C&S
aspects C&S process; Understands and
timelyand accurately. Understands and
trains others in C&S SOP and visual clean
follows C&S SOP and visual clean
standards. Needs virtually no supervision.
standards. Needs minimal supervision
Takes initiatives to ensure that self and team
Completes required data collection & documentation is completed timely &
documentation timely and accurately; accurately ; Adresses & Corrects all issues;
Reports errors in documentation Identifies need for additional value adding
documentation
Takes initiative to be involved and build
Understands the manufacturing operation
relationships with the operations teams;
and how his work links to operations
Leverages understanding of operations to
performance
identify improvement oppurtunities
According to Function
Creates ways for speeding up PM’s;
Suggests new PM’s that need to be done;
Understands types and frequency of PM
Tracks uncomplete PMs and takes intiative to
work; Completes PM timely and accurately;
bring it to closure; Shows ability to work
Communicates status to team leader
towards predictive maintainance and
communicates to team leader
Responds quickly to breakdowns; Repairs
Overcomes recurring problems; Instills a
done with a sense of urgency; Repairs done
to an adequate standard; Raises major
sense of urgency in others; Is considered an
expert in their area
concern & issues in a timely manner
 Does not fully understand and appreciate the
quality standards, inspections and
Quality documentation; Has had issues in meeting all
quality expectations
Does not fully comply with PPE
requirenments; Demonstrates unsafe work
Safety practices; Does not implement safety
feedback
Understands the product quality standards;
Completes all quality tests, inspections and
documentation; Immediately addresses
and/or raise the alarm about quality issues
Follows all PPE requirenments;
Demonstrates safe work practices
Proactively identifies and takes steps to
rectify quality issues; Suggests and
implements ways to improve quality
Identifies unsafe practices and condtions;
Provides feedback to otherts on safety
requirenments; Identifies improvement
opportunities