Performance Management System
Performance Management System
Performance Management System
System
Performance management system
PMS • Assessment of
Process KPAs,
• Communicatio Competencies,
Annual
n of score Feedback Values and
Assessment
• Developmenta Potential by
l feedback appraiser
Step 5 • Training and
Step 3
Normalisation Development
Process Plans
• Review by
Step 4 reviewing officer
PACE Cycle (Important Dates)
Numeric
◦ PLA, Availability, Profit, Cost, Inventory
Time/ Deadline
◦ Projects, Clearance, Maintenance, Land Acquisition, Accounts, Budgets,
Engineering
Negative
◦ Complaints, Grievance, Accidents, IR problems, man days lost, Rejection,
etc.
PMS would comprise assessment on four parameters with different
wieghtages for various levels
SNo. PMS Parameter E1-E3 E4 E5 E6-E8 E9
1. KPA 80 75 65 50 50
2 (a) Functional 10 10 10 10 5
Competency
Assessment
2 (b) Executive/Managerial 05 05 10 15 15
Competency
Assessment
3 Core Values 05 05 05 15 20
Assessment
4 Potential Assessment Nil 05 10 10 10
• For executives in lower grades, there is higher weightage on KPAs and functional competencies as the
there is higher focus on achieving the immediate functional tasks
• The weightage on managerial competencies and values increases for an executive as the grade increases
because the role requires achieving business goals by managing work of other employees
Performance Management System
adopted by
Indian Oil Corporation Ltd
15
Appraisal Cycle
Performance
Planning
April - June
April-May
October
Ongoing monthly review
and feedback
Final Performance
Appraisal
April
16
System Design
The relative weightages are as follows:
HI grades
KRA Competency Value Potential
45% 20% 15% 20%
G grade
KRA Competency Value Potential
50% 20% 15% 15%
DEF grades
KRA Competency Value Potential
55% 20% 10% 15%
ABC grades
KRA Competency Value Potential
60% 15% 10% 15%
17
Stretch in target setting
Dimensions of Stretch
• Target relative to previous years achievement
• Dependence of uncontrollables
• Complexity
• Skill requirements
• Need for Innovation
18
Performance Appraisal-Soft Skills
Values
19
Performance Appraisal-Soft Skills
Potential
•Ability
to shoulder higher responsibilities
Junior Management Senior Management
20
Calculation of Final Score – An
Illustration
PMS Calculation Sheet
DGM Level
KRA Weight Rating Stretch Individual KPI Score
50% (weight * rating * stretch)
KPI 1 20% 3.5 0.85 0.595
KPI 2 30% 4.7 0.75 1.058
KPI 3 40% 4.2 0.95 1.596
KPI 4 10% 2.0 0.60 0.120
KPI Score 3.369
Overall Score= (KPI rating * KPI weight + Competency rating * Competency weight + values rating * Values
weight + Potential rating * Potential weight ) 21
Thank You