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Performance Management System in Indian Oil Corporation Ltd

Set up as a robust, transparent performance measuring system to reward according to individual/ small team performance, suitably differentiating higher performance, based on well defined performance measures. IndianOil implemented e-PMS for officers in 2005-06

Departmental promotion, individual based incentive are disbursed based on ePMS output ratings and scores

Introduced system intervention in ePMS to improve Performance Bell Curve approach Transparency and provide Opportunity to make representation against the entries and final grading

ePMS seeks to determine individual performance and potential through a system that is: Objective Transparent Aligned to the Business needs Robust Easy to Use and Manage

ePMS features
Role based KRAs and KPIs

Special KRAs/Additional KRAs

Weightage to KPIs Stretch Tool for target setting Self Appraisal and Final rating Performance diary

Monitoring of status

Appraisal Cycle
Performance Planning

April - June

Feedback and Review

Mid Year review & feedback

Ongoing monthly review and feedback

Final Performance Appraisal April

Performance Planning process

Appraisee completes Performance Plan on KRA section by setting targets, assigning weightages for each KPI chosen in his plan Appraiser assigns stretch on each chosen target, makes modification if needed & Appraiser signs-off on the Plan Plan is sent to Reviewer for inputs and Final Sign-off Final Performance Plan for Appraisee is ready

Scale for appraisal of KPIs

5-point continuous scale
Level 1 Level 2 Level 3 Level 4 Level 5

Significantly below expectations

Moderately below expectations

Just Meets Expectations

Moderately above expectations

Significantly above expectations

Performance Appraisal-Soft Skills

Moving from critical attributes to competencies. Competencies are like an iceberg. Competencies are the underlying characteristics of individual/s i.e. Knowledge, Skills, Attitudes, Values, Self-Concepts, Traits and Motives that have a causal relationship with effective and/ or superior performance in a job situation.


Deep Rooted





Performance Appraisal-Soft Skills

Potential Ability to shoulder higher responsibilities

Junior Management Senior Management

Adaptability to change Collaboration Cost Consciousness/ Resource utilisation Dependability Quality of Work / Output

Managing Change Boundary Management Entrepreneurial Leadership Enhancement of Quality and Output

Performance Diary

Final Year Review process

Appraisee completes Self Appraisal on KPIs & submits Appraiser determines Rating on each KPI, Competency, value and potential element Reviewer validates each rating and makes changes, if any System calculates the PMS Score as per weightages of elements and overall weight of sections based on KPI competencies, values and potential

The overall grade and assessment of integrity communicated through online display

Final KPI score is used for PRP. Overall grade is finalised by Countersigning officer. This is used for DPC

Benefits accrued
Well defined Roles /targets/clear expectation for all officers Performance cycle aligned with fiscal year Appraisal process streamlined/Better monitoring/Online robust MIS Opportunity to differentiate performance (bell curve approach) on a continuous linear scale from 1 to 5 and reward accordingly Online display of Overall grade and assessment of integrity