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Pakistan State Oil Company Limited

A Critical Analysis of the Performance Management System
A Prefatory Note


This report was prepared as a result of physically visiting PSO House, Karachi. The information was collected through a formal and face-to-face interview with Ms. Ayesha Mansoor, Executive HR (Performance Management). The group of four that was involved in the collection of information and preparation of report is as follows: Mansoor Ali Seelro Adeel Ahmed Larik Naveed Ahmed Siddiqui Waqar Hussain Memon

Table of Contents


Interview date: April 30, 2013


We are very thankful Sir Waheed Ali Umrani, our Performance Management instructor, who provided us with the opportunity to pay a formal and official visit to PSO House, Karachi. Literally, this visit broadened our hands-on knowledge, experience, and exposure. Moreover, in future, any one or all of us wont feel that sort of difficulty in terms of socializing with the people and the environment once after being employed there, InshaAllah. Once again we would like to express our warm gratitude to sir Waheed for all this. We would also like to express our bundle of thanks to PSO management who managed to afford to fix date for our official visit there and spared a few hours out of their precious, hectic time schedule. Particularly, our special gratitude goes to Mr. Rizwan-ul-Haq, Manager Training & OD at PSO, who referred us for this project. Secondly, we are obliged to Ms. Ayesha Mansoor, Executive HR (Performance Management) at PSO, who answered and filled out our entire questionnaire without reservation. Thirdly, we express our thanks to Mr. Rana M. Idrees, General Manager HR at PSO. Finally, we value the time spent with PSO, thanks PSO.

Cordially, Mansoor Ali Seelro Adeel Ahmed Larik Naveed Ahmed Siddiqui Waqar Hussain Memon


This report is divided into two parts labeled Part I and Part II. Information covered in Part 1 is exactly extracted from the website of the company i.e. PSO. On the other hand, Part 2 contains the information that is wholly discussion-based and was collected through the interview. Our main purpose is to focus on the information in Part 2 since it was our main project to collect information on the Performance Management System, and finally to analyze all this critically. In addition, the Part 2 of the report is not intended to show effective or ineffective handling of the system. Rather, our purpose of this report was to see the gap that exists between the theory and practice. To recap, this was simply a term assignment for which our group chose PSO Companys Performance Management System.

Address of the Company: PSO House, Khayaban-e-Iqbal, Clifton, Karachi-75600, Pakistan.

Contacts: Mr. Rizwan-ul-Haq, Manager Training & OD +92-21-35636430 Mr. Rana M. Idrees, General Manager HR +92-21-99203782 Ms. Ayesha Mansoor, Executive HR +92-21-35636437

Website: www.psopk.com

Cordially, Our jovial group


As mentioned earlier, the information in Part 2 wholly comes from the interview at PSO House. Because we were short of time there, we tried to the extent possible to collect as significant, accurate and relevant information as possible. But there always are chances of misinterpreting the information especially when one lacks time. So, we disclaim any misinterpretation that could have taken place during the interview on our part. Plus, at some points, if it necessitates, we have interpreted and elaborated the things our own way, at our discretion, to add value to the report.

Cordially, Our jovial group

(Page numbers are labeled as per pdf count)

Introduction .. 06
Marketing & Distribution .. Acquisition of Products . Storage ... Product Movement ... Lubes Manufacturing & Sales .. 06 06 07 07 07 07 08 08 09 10 11 11 11 11 12 12 12 13 13 13 13 14 14

Vision . Mission ... Values . History ...

PSO: Step by Step ..

Business Units ... HR Philosophy .. Work Environment ..

Employee Recognition ... Motivation Survey .. Communication . Zero Tolerance ... Cafeteria/fitness facility/recreational activities

Career Opportunities ...

Advertised/Experienced Positions . Recruitment Cycles (Entry-levels) .

Career Development . Performance Management ..

A Critical Analysis of the Performance Management System of PSO 15
Performance Management Process . Defining Performance and its Determinants .. Approaches to Measuring Performance ... Performance Appraisal .. Performance Management System as a whole: communication, engagement, evaluation and feedback issues ... 16 17 17 17 18

APPENDIX A: Questionnaire APPENDIX B: Ideal Performance Management System Checklist


Pakistan State Oil (PSO) is the nations largest energy company, and is currently engaged in the marketing and distribution of various POL products including Motor Gasoline (Mogas), High Speed Diesel (HSD), Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG, Petrochemicals and Lubricants. In addition to these products, PSO also imports other products based on their demand patterns. A brief overview of each of PSOs business facets is presented below: Marketing & Distribution PSO possesses the largest distribution network in the country comprising of 3,689 outlets out of which 3,500 outlets serve the Retail sector and 189 outlets serve our bulk customers. Out of the total of 3,689 outlets, 1,691 Retail and 167 Consumer Business outlets have been upgraded with the most up-to-date facilities as per the visualization of the New Vision Retail Programmed. Acquisition of Products: The automotive sector is the main consumer of Motor Gasoline (Mogas) and High Speed Diesel (HSD) whereas Furnace Oil (FO) is marked for power plant usage. To meet the supply deficit of the country, PSO imports Mogas, HSD, JP 1 and FO as and when required. The total import of black and white oil in Pakistan last year was 12.4 million metric tons and PSO had the lions share of this import with 11.2 million metric tons which came to over 90% of the total fuel imports of the country. Other than product imports, PSO acquired 1.75 million metric tons from various refineries based in Pakistan in order to cater to our market needs.

Storage PSO possesses the largest storage capacity in the country. The companys infrastructure stretches from Karachi to Gilgit. With 9 installations and 23 depots located across the country PSOs storage capacity of approximately a million metric tons represents 74% of the total storage capacity owned by all the oil marketing companies. Product Movement PSO uses three mechanisms for the movement of POL products namely, tank Lorries (road), tank wagons (railways) and pipelines. We currently have a total fleet of 8,595 tank Lorries out of which 2202 tank Lorries are New Vision tank lorries which are complying with the latest ADR standards and are equipped with pilferage proof tracker systems. With the commencement of operations of the White Oil Pipeline Project (WOPP) from Karachi to Mehmood Kot via Shikarpur and the MFM (Mehmood Kot/Faisalabad/Machikey) pipeline, the supply pattern for white oil from Karachi has switched from tank lorries to pipelines. PSO is present as a partner in this project and holds a 12% equity share in this venture. Lubes Manufacturing & Sales PSO is steadily progressing in the field of lubricants. With state-of-the-art Lubricants Manufacturing Terminal (LMT) located in Korangi Industrial Area, Karachi we are catering to a number of sectors including automotive, Hi-street and industrial consumers through the provision of sectors including automotive, Hi-street and industrial consumers through the provision of products.

To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first.

We are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based on: o Professionally trained, high quality, motivated workforce, working as a team in an environment, which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development o Lowest cost operations and assured access to long-term and cost effective supply sources o Sustained growth in earnings in real terms o Highly ethical, safe environment, friendly and socially responsible business practices

Excellence We believe that excellence in our core activities emerges from a passion for satisfying our customers' needs in terms of total quality management. Our foremost goal is to retain our corporate leadership. Cohesiveness We endeavor to achieve higher collective and individual goals through team. This is inculcated in the organization through effective communication Respect We are an Equal Opportunity Employer attracting and recruiting the finest people from around the country. We value contribution of individuals and teams. Individual contributions are recognized through our reward and recognition program.

Integrity We uphold our values and Business Ethics principles in every action and decision. Professional and personal honesty, dedication and commitment are the landmarks of our success. Open and transparent business practices are based on ethical values and respect for employees, communities and the environment. Innovation We are committed to continuous improvement, both in New Product and Processes as well as those existing already. We encourage Creative Ideas from all stakeholders. Corporate Responsibility We promote Health, Safety and Environment culture both internally and externally. We emphasize on Community Development and aspire to make society a better place to live in.

The creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when on January 1st; the government took over and merged Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL). Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation (PSDC) came into existence. PSDC was then renamed as State Oil Company Limited (SOCL) on August 23rd 1976. Following that, the ESSO undertakings were purchased on 15th September 1976 and control was vested in SOCL. The end of that year (30th December 1976) saw the merger of the Premier Oil Company Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO). After PSOs inception, the corporate culture underwent a comprehensive renewal program which was fully implemented in 2004. This program over the years included the revamping of the organizational architecture, rationalization of staff, employee empowerment and transparency in decision making through cross functional teams. This new corporate renewal program has divided the companys major operations into independent activities supported by legal, financial, informative and other services. Inorder to reinforce and monitor this structural change, related check and balances have been established by incorporating monitoring and control systems.

Human Resource Development became one of the main priorities on the companys agenda under this corporate reform. It is due to this effective implementation of corporate reform and consistent application of the best industrial practices and business development strategies, that PSO has been able to maintain its market leadership in a highly competitive business environment.

January 1, 1974 The federal government took over the management of PNO (Pakistan National Oil) and DPL (Dawood Petroleum Limited), renamed into POCL (Premier Oil Company Limited) under marketing of Petroleum Products (Federal Control Act, 1974)

June 6, 1974 The government incorporates Petroleum Storage Development Corporation PSDC

August 23, 1976 PSCDC renamed to State Oil Company Limited (SOCL)

September 15, 1976 The Governement purchases ESSO undertakings, vests their control in SOCL

December 30, 1976 The Government merges PNO and POCL into SOCL (State Oil Company Limited) and renames it Pakistan State Oil Company Limited (PSO)

1999 The new vision program is launched with the new logo of PSO.

Business Units
As per the business needs and to hold on to a customer focused image, we have an organizational structure comprising of three (03) main business units that encompass all the major functions of the company: o Customer Services o Finance & Information Technology o Human Resource & Services

HR Philosophy
o o o o o Consider human asset - the only asset which appreciates with the passage of time Right person at the right place Continuously re-align organization in line with contemporary business practices Make Organization lean and flexible to become more responsive Handle HR issues with all fairness and transparency


Work Environment
Employee Recognition To boost the morale of employees a reward and recognition scheme is in place for the last few years and has been a great source of creating a spirit of healthy competition amongst employees. Each year employees are nominated for two company-wide ceremonies viz.

Shaukat Raza Mirza Management Excellence Award and PSO Managing Directors Performance Award. It acknowledges exceptional, smart and beyond the call of duty performance. Motivation Survey Special efforts for continuously enriching our business systems and implementing relative strategies have always been fruitful which are aimed at augmenting a work culture that enhances employee motivation as well as gaining a better understanding of forces that shapes motivation, attitude, behavior patterns and expectations. Employee Motivation surveys are conducted that recognize the needs, opinions, concerns and perceptions of our human capital about the organization and what they value in terms of professional and personal interests and incentives. Keeping a human element is mind these surveys help identify a meaningful employee relationship with the organizational objectives and understand their job responsibilities and work expectations. Communication o Open-book & direct approach environment o An assortment of forums/meetings at hand (Executive Committee, Management Committee, Employee Leadership Team) inspire discipline and accelerate establishment of processes & systems o Encourage team work & group dynamics while inculcating a sense of ownership through empowered Cross Functional Teams (CFTs) o Employ Business Process Reengineering (BPR) to maintain an international working environment by streamlining processes and removing unnecessary layers o Interactive sessions are regularly held by the Managing Director at all levels because clear, coherent and consistent messages ensure that employees are able to integrate the inputs into their thinking. o All organizational changes are announced. Zero Tolerance We have high ethical standards and a Business Principles and Ethics Policy in place. We value, encourage and inculcate corporate reforms, good governance, best business practices and an environment of continued adherence to Zero Tolerance, resulting in the development of our human capital and meeting all business challenges.

Cafeteria/fitness facility/recreational activities PSO encourages recreational activities of workforce at all levels. Formation and functioning of PSO Club provides assistance to employees for their mental and physical health as well as for their social activities. Sports and recreational activities are organized through this forum, where employees and their families are encouraged to participate. It is our top priority to ensure the employees are in good shape and health. To physically show that we care, we have in-house food service with subsidized meals in a cafeteria that can cater all the employees stationed at PSO House. Employees can enjoy gymnasium facility right in PSO's corporate vicinity, a convenience of walking from your workstation to a private gym for a revitalizing workout.

Career Opportunities
In order to meet the challenges of an increasingly competitive business environment PSO incorporates a complete transparent recruitment system. We are focused towards attracting and retaining capable qualified employees and believe that the investment in human capital results in benefiting from the collective knowledge and experience of existing ones. In line with this strategy we have proper hiring processes in place. a. Advertised/Experienced Positions: These vacancies occur as and when we need to explore outside experience. b. Recruitment Cycles (Entry-levels): All these positions are qualification based and anyone being a fresh graduate or having less than 5 years of experience can apply, however these vacancies would be announced as & when required. o o o o o Management Trainee Program (MBAs) Trainee Engineer Program (BEs) Associate Engineer Program (DAEs) Chemists (MSc Chemistry/Applied Chemistry) ACCA Trainee Program [A-levels/B.Com + CAT/ACCA part I clear (min requirement)]

Career Development
Leadership skills enhancement of trained workforce takes place through challenging assignments, empowerment, promoting employees within the organization, wherever possible and concentrating on Fast-Track employees, to fill higher vacancies. Our employees who are willing to maximize their contributions are identified for career development. The young and experienced professionals who can bring a significant change are given assignments that encompass a great deal of responsibility and autonomy.

Performance Management
o System of authentic performance evaluation and feed back is implemented at PSO and is an integral part of our appraisal management o Individual performance is aligned with the business goals and company objectives o Performancebased rewards are offered to all employees on a yearly basis o Bell curve covers all management employees annual appraisal through a population spread.


A Critical Analysis of the Performance Management System of PSO

According to Executive HR, the Performance Management System at PSO is going through a process of makeover and that a lot of improvements are being injected into the existing system. For example, they are now revamping and shifting to the Strategic HR and Performance Management System, a system that was previously termed as administrative, not strategic. Moreover, measures have also been taken to improve the performance appraisal form so that to give it a strategic look and use, disclosed Executive HR, Ayesha Mansoor. This part of the report contains the information collected through the interviewer-assisted questionnaire. Interviewer refers to our group. The information was all related to the Performance Management System of PSO. But it cannot be claimed that the information is thorough and comprehensive and that information is covering the entire Performance Management System. Since, Performance Management is an ongoing process, so one cannot cover all such information in an interview lasting for only one or two hours. Nevertheless, our group has tried to the extent possible to seek as thorough information as possible. In this section, well analyze the information vis--vis the Performance Management Process and the checklist for an Ideal Performance Management System (see APPENDIX B). Doing so will give us some important insights regarding the strategic orientation of the system. Plus, how many elements of an Ideal Performance Management System are present in the existing Performance Management system of PSO. We start with illustrating the Performance Management Process, and then comparing the information collected with this process. Here is the illustration of 6-step Performance Management Process.

Performance Management Process 1. Prerequisites:

Knowledge of the organizations mission & strategic goals Knowledge of the job in question (JD).

2. Performance Planning:
o o o Key accountabilities Objectives Performance standards


Developmental Plan:

3. Performance Execution:
Managers/supervisors role Employees role

4. Performance Assessment:
Performance appraisal form Performance measurement approaches/tools

5. Performance Review:
Appraisal meeting Areas for improvement

6. Performance Renewal & Recontracting:

Includes insights from other steps, & leads to again first step i.e. prerequisites

The interpretation of the information collected didnt reveal any strategic congruence of the operational level goals with the top level goals. This interpretation directly comes from the answer that Executive HR at PSO gave us. She told that it had been for three to four years that they had not revised their performance appraisal form. She further disclosed that this was caused by not having proper job descriptions. Even if they are in place, then not by having proper implementation of the job descriptions.

This is how the first step in the performance management process is missing. And if it holds, then all other steps in the process will not work the proper way. For example, accountabilities for employees jobs were solely determined and decided by their immediate supervisors/ managers or department head. So far as meetings are concerned, there were some informal meetings between the managers and employees.

Defining Performance and its Determinants Performance can be defined in terms of both behaviors as well as results. At PSO, the same is true that for some jobs, performance is evaluated based on results. For other jobs, it is evaluated based on behaviors. Means, both approaches are of equal importance to them. Also, all three determinants viz. declarative knowledge, procedural knowledge and motivation are believed to be performance determinants at PSO.

Approaches to Measuring Performance Two approaches are in place to measuring performance at PSO i.e. Behavior approach and Results approach. Some of the points related to the results approach have already been discussed in the first section of this part of the report. So, in this section, we specifically turn to the behavior approach. But before moving ahead, one point related to results approach is that objectives and standards set under this approach are all meaningful, specific, agreed upon, prioritized and relevant. Out of a number of methods available to measuring competencies indicating particular behaviors, forced distribution (from Comparative Systems of measuring performance); and behavior checklist (from Absolute Systems of measuring performance) are only in operation. Forced distribution is in operation with a little modification in its name and use. It is actually called Bell Curve Distribution at PSO. Moreover, there is no proper gauge to measure competencies that indicate certain behavior, divulged openly by Executive HR.

Performance Appraisal Performance appraisal process at PSO takes place once a year at the end of fiscal year. Appraisal process does not seek information from stakeholders, thus, no 360 degree feedback system is in place. Only two sources are involved in appraisal process i.e. supervisor and employee (self). That is, all elements of a typical performance appraisal form are present in the existing form except the element stakeholders input. One more element that is not as

such considered to be included in the appraisal form is performance standards. Aside from this, two of the desirable features of the form are missing halfway i.e. simplicity and adaptability as revealed unguardedly by the Executive HR. A separate form is used for objective setting and training and development needs. In addition, one good point of the appraisal is that the overall rating of the employee reached in appraisal form is solely based on mechanical procedure since it is score-based as opposed to subjective judgement of the overall rating. On the other hand, one flaw was that the same form was used for all the job families or categories. Since all appraisal systems are subject to rater errors, at least to unintentional errors, appraisal system at PSO is not the exception to this. According to the facts brought to light during the interview, the most common of the intentional errors is the error of central tendency. So far as unintentional errors are concerned, it was disclosed that they vary supervisor to supervisor and rater to rater.

Performance Management System as a whole: communication, engagement, evaluation and feedback issues The communication of the Performance Management System is done through multiple channels of communication viz. circulars, memos, notice boards, and other media specific to the concerned department. However, employee involvement is not that welcomed in this process. Neither pilot testing is conducted before the actual implementation of the system nor is an effort expended to monitor and evaluate the system on an ongoing basis. The main reason being believed for all this is that a revamp effort is under way that limits the ability to pay attention to all such things. Feedback on both positive and negative performance is given. But the culture of face-to-face feedback is not common to the full extent. Moreover, no feedback, suggestion, or any sort of input from employees regarding how should performance be measured, what should be criteria, etc. is gathered. Finally, PSO employs an appeals process through which employees can challenge unjust or incorrect decision. All through this process, employee privacy is respected to the extent possible.


Performance Management System Information Questionnaire

(The information collected herein will be used for report writing purpose only. Also it will remain confidential and will not be redistributed to any third parties)

Interview with: _______________________________ Designation: _______________________ Division, subsidiary or region (youre reporting data for herein): __________________________ Phone: __________________________________ E-mail: ________________________________ City: ____________________ Address: ______________________________________________

1. At PSO, how will you define performance? It is about behaviors It is about results Both, behaviors and results Other, please specify: ___________________________________________________

2. Whenever there is performance lapse, how do you identify it and what do you think what causes it? Declarative Knowledge Procedural Knowledge Motivation All three factors above together determine performance Other, if any: __________________________________________________________

3. Task performance is always there. Do you encourage contextual performance (OCB/PSB) at PSO? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

4. Which of the following approaches do you follow to measure performance? Do you follow the same approach for all types/categories of jobs or does it vary from job to job? Trait approach Behavior approach

Results approach Other, please specify: ___________________________________________________

5. If Results Approach is being followed, how accountabilities are determined? Please elaborate by taking an example of a particular job. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

6. On what basis do you prioritize the accountabilities? (i.e. from most to least important). ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

7. If Results Approach is being followed, how expected objectives (against each accountability) are determined? Please elaborate by taking the example of the same job as taken in Q#05. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

8. Do objectives set for the job have the following characteristics? Please illustrate using the same job example and check only that is (are) applicable. Specific & clear Challenging Agreed upon Significant

Prioritized Bound by timeline Achievable Fully communicated Flexible Limited in number

9. If Results Approach is being followed, how performance standards (per objective for each accountability) are determined? Please elaborate by taking the example of the same job under discussion. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

10. Do performance standards set for the job have the following characteristics? Please illustrate using the same job example and check only that is (are) applicable. Related to the position Concrete, specific and measurable Practical to measure Meaningful Realistic and achievable Reviewed regularly

11. If Behavior Approach is being followed, how competencies (or KSAs) are determined? Please elaborate by taking the example of the same job under discussion. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

12. What indicates whether competency is being demonstrated/displayed by the incumbent of the job? (i.e. what are different indicators of a particular competency). ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

13. Which of the following systems of evaluating competencies (or measuring behaviors) is (are) in action at PSO? Are the same systems followed for all jobs or they vary from job to job? Comparative Systems
Simple Rank Order Alternation Rank Order Paired Comparisons Forced Distribution

Absolute Systems
Essays Behavior Checklists Critical Incident Technique (CIT) Graphic Rating Scale BARS BOS

14. Does the performance appraisal form used at PSO include the following major components? Basic employee information

Accountabilities, objectives & standards Competencies & indicators Major achievements & contributions Developmental achievements (could be included in a separate form) Developmental needs, plans & goals (could be included in a separate form) Stakeholders input Employee comments Signatures 15. Are there any components of that you include in a separate form? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 16. Does the performance appraisal form used at PSO have the following desirable features/characteristics? Simplicity Relevancy Descriptiveness Adaptability Comprehensiveness Definitional clarity Communication Time orientation

17. Which of the following two procedures do you follow to determine overall rating (or score) of the performance of appraisee? Judgmental procedure Mechanical procedure Other, please specify: ___________________________________________________

18. What is length of the appraisal period at PSO? Quarterly Semiannual Annual Other, please specify: ___________________________________________________

19. What is set point of time on which appraisal takes place? On or around annual anniversary date End of fiscal year Combination of both Other, please specify: ___________________________________________________

20. Do you use same (or different) performance appraisal form for all job categories? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

21. Do informal meetings between supervisor and employee regarding performance issues take place on daily basis? Apart from informal meetings, how many of the following formal meetings are scheduled between employee and his immediate supervisor? System inauguration Self-appraisal Classical performance review Merit/salary review Development plan Objective setting Other, please specify: ___________________________________________________

22. How many of the following sources employee performance information is collected from? Supervisors Peers Subordinates Self Customers Other, please specify: ___________________________________________________

23. If disagreements across these sources take place, how will you cope and whose information will likely be used for administrative decisions? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

24. Every Performance Management System intentionally or unintentionally is somewhat subject to performance ratings errors. Which of following errors will most likely be committed at PSO? How will you manage to minimize them? Intentional Errors
Leniency Severity Central tendency

Unintentional Errors
Similar to me Contrast Halo Primacy Recency Negativity First impression Spillover Stereotype Attribution

25. Have you ever initiated following training programs in order to increase rating accuracy and to mitigate rating distortion? What are content areas of the training programs? Rater error training Frame of Reference Training Behavioral Observation (BO) Training Self-leadership Training

26. How do you organization-wide disseminate Communication Plan about Performance Management System? What do you cover in that plan? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

27. Which of the following steps do you take in order to minimize communication barriers? Involve employees Understand employee needs Strike first Provide facts & consequences Put it in writing Use multiple channels of communication Use credible communicators Say it, & then say it again!

28. Do you go for Pilot Testing of the Performance Management System before actually implementing it? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 29. Do you monitor and evaluate the system on an ongoing basis? How do you regularly monitor and evaluate it? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

30. While designing a Performance Management System, do you consider strategic objectives of PSO? Various job descriptions? Overall, in what ways do you translate strategic plan of PSO into action? Are individual goals aligned with unit and organizational goals? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 31. What role does a manager play in performance execution? Does an employee play in performance execution? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 32. Does PMS at PSO take into account each and every job in terms of evaluation? In other words, not a single job is left unevaluated? Yes No

33. Do evaluations include performance spanning the entire review period? Yes No

34. Is feedback provided on both positive and negative performance? Also is face-to-face feedback common? Yes No

35. Are employees at PSO informed about the criteria on which their performance is being evaluated or observed? Yes No

36. Only the functions that are under control of the employee are measured? Yes No

37. Do you think well-implemented PMS contributes to organization effectiveness and administrative decisions? Yes No

38. Do you think implementing or following a well-designed PMS is costly? Cumbersome? Yes No

39. Are employees fully informed about what is expected of them and how they can meet those expectations? Yes No

40. Performance measures do not leave out any important performance facets? Yes No

41. Do employees perceive the performance evaluation & rewards received relative to the work performed as fair (distributive justice)? Yes No

42. Do employees perceive the procedures used to determine the ratings & subsequent rewards as fair (procedural justice)? Yes No

43. Do you gather employees input about their performance before the appraisal meeting? Yes No

44. Do you gather employees input/suggestions about how performance should be measured? Yes No

45. Performance is evaluated frequently? Feedback is provided on an ongoing basis? Also standards are communicated on an ongoing basis? Yes No

46. Communication during appraisal meetings is factual, open & honest? Yes No

47. Is there an appeals process through which employees can challenge unjust or incorrect decisions? Yes No

48. Employee privacy is respected throughout Performance Management Process? Yes No


A Checklist for Ideal Performance Management System (PMS)

Characteristics Strategic Congruence


Constituents Individual goals are aligned with unit & organizational goals. All employees are evaluated. Evaluations include performance spanning the entire review period. All major job responsibilities are evaluated. Feedback is provided on both positive & negative performance. It is readily available for use. It is easy to use. It is acceptable to those who use it for decisions. Benefits of the system outweigh the costs. Standards & evaluations for each job function are important & relevant. Only the functions that are under control of the employee are measured. Evaluations take place at regular intervals & at appropriate moments. System provides for continuing skill development of evaluators. Results are used for important administrative decisions. Detailed guidance is provided to employees about what is expected of them & how they can meet those expectations. The system distinguishes between effective & ineffective behaviors & results, thereby also identifying employees displaying various levels of performance effectiveness.






Identification of Effective & Ineffective Performance

Measures include all critical performance facets.


Measures do not leave out any important performance facets. Measures do not include factors outside employee control. Measures of performance are consistent. Measures of performance are free of errors. Employees perceive the performance evaluation & rewards received relative to the work performed as fair (distributive justice). Employees perceive the procedures used to determine the ratings & subsequent rewards as fair (procedural justice). Employee input about their performance is gathered from the employees before the appraisal meeting. Employees participate in the process of creating the system by providing input on how performance should be measured. Performance is evaluated frequently & feedback is provided on an ongoing basis. Appraisal meeting is a two-way communication process & not one-way communication delivered from the supervisor to the employee. Standards are clear & communicated on an ongoing basis. Communications are factual, open & honest. There is an appeals process through which employees can challenge unjust or incorrect decisions. Performance is evaluated consistently across people & time. Supervisors suppress their personal self-interest while conducting evaluations or providing feedback. Supervisors evaluate performance dimensions only for which they have sufficient information. Employee privacy is respected.


Acceptability & Fairness