Performance Management System
Performance Review Policy
Introduction
Company Name’s Annual Performance Review process has been designed to
provide a vital link between the organisation’s Business Plan, its vision and
guiding principles, and individual staff members. It is also designed to ensure
that goals and objectives flow from the top of the organisation to the personal
objectives of each individual. it is integral to fostering an engaged and
productive workforce, recognising and rewarding good performance, and
managing underperformance.
This Policy applies to permanent and part-time paid employees only. If
requested, volunteer workers can participate in and have access to an annual
review in order to obtain feedback regarding their position and performance.
Purpose
The purpose of this policy is to ensure that a consistent approach is followed for
conducting Annual Performance Reviews, and that job-related skill and
knowledge, and employee competencies and behaviours, are evaluated and
compared against set standards and business objectives.
Principles for the performance appraisal review
1. The Performance Appraisal and Development Review process is an
integral part of the way the Trust manages employee performance and
development.
2. All staff will have a formal annual Performance Appraisal and
Development Review against agreed performance expectations (key
result areas or work objectives).
3. Performance Appraisal and Development Review is a two-way process.
It provides an opportunity for all staff to:
Receive feedback on their performance against performance
expectations
Reflect on their work performance and give feedback on experiences
working in the Trust and work area
Confirm the requirements of their job and agree work objectives for
the coming year Discuss and agree development needs and how
these might be met
Discuss career development aspirations
4. The Performance Appraisal and Development Review provides a
context for the individual role by referring to the department and
Trust objectives.
5. The Performance Appraisal and Development Review will be recorded
on the appropriate Trust documentation and will include an agreed
record of achievements, brief descriptions of how performance meets
Trust values and behaviour requirements, future work objectives,
ongoing work responsibilities (e.g. mandatory training) and agreed
development.
6. The Performance Appraisal and Development Review will result in the
production of a personal development plan (PDP) identifying any
learning and development requirements and how they will be met.
7. The Performance Appraisal and Development Review will take place
between staff and their manager or, where appropriate, another
appropriately trained senior team member.
Appraisal outcomes
As an outcome of the appraisal for all staff, a performance rating should be
awarded based on a review of all aspects of performance using the following
scale:
Rating Definition
Exceeding expectations - Not only meets all objectives and ongoing work
responsibilities, but consistently goes the extra mile and is a role model.
Meeting expectations consistently - Performance is good or excellent;
consistently meets expectations in relation to objectives and ongoing work
responsibilities.
Development - Performance is below expected levels in one or more key areas /
majority of areas. Development identified.
Unacceptable performance - Performance is below expected levels in majority of
areas. Under formal performance management measures.
Roles and responsibilities
1. Managers are responsible for:
Implementing this policy, ensuring that all staff are appraised on an
annual basis.
Ensuring that all appraisers with delegated responsibility for appraisal
are appropriately trained/briefed.
Ensuring staff are aware of the knowledge and skills requirements of the
role as part of the induction process and work-based objectives are
confirmed at the end of the induction period.
Ensuring staff receive regular feedback including recognition for work
done well and addressing concerns when they arise.
Ensuring staff are made aware of mandatory training requirements.
Ensuring staff are made aware of the relevant documentation to be used
in advance of their appraisal and given sufficient notice of the appraisal
meeting (approximately 2-3 weeks).
Agreeing work objectives and a personal development plan annually as
an outcome of the appraisal discussion.
Recording individual performance appraisal and development reviews on
the Trust ‘Performance and Development Review Form’ (or other
appraisal form approved by Learning and Development) and notifying HR
of the date and the name of the appraiser via the ‘Appraisal Entry Form’
Notifying HR of the outcome of appraisals.
2. Staff are responsible for:
Their own performance and ensuring that they understand
expectations in relation to work objectives and ongoing work
responsibilities for their role.
Actively participating in the performance and review process by
preparing for the appraisal discussion, contributing to their personal
appraisal development plan and actively applying newly acquired
knowledge and skills within the role.
3. Human Resource department responsible for:
Delivering appropriate training and advice for both managers and
staff in preparing for performance appraisal and development
reviews.
Monitoring and reporting completion of appraisals through use of the
‘appraisal entry form’.
Providing advice and guidance to both managers and staff with issues
or concerns about performance management.
Further support / dealing with disagreements
If an employee has concerns about any part of the Performance Appraisal
and Development Review process this should be discussed in the first
instance between the individual and their appraiser. If there are still
concerns these should then be raised with the appraiser’s manager. The
appraiser’s manager, or another agreed individual, may be involved in
the Performance Appraisal and Development Review if appropriate.
In the instance where disagreements arise and a subsequent appraisal
review meeting is conducted, formal amendments to the appraisal record
may be agreed based on relevant supporting evidence.
Timing
All staff will have a formal Performance Appraisal and Development
Review on at least an annual basis.
Managers will determine the timing of annual Performance Appraisal and
Development Reviews based on Trust and departmental objective setting
cycles, annual incremental dates.
Performance Development plan
Promotion Policy
Increment
To better overall performance through recognition of individual’s
contribution, bringing in accountability for individuals, promote teamwork
and bring in focus on Company Name’s success as a whole. Excellent
performance needs to be recognized and appropriately rewarded.
Simultaneously, for non-performers areas of improvement need to be
identified and necessary corrective action initiated.
Process
Annual Increment is based on the following parameters:
a) Individual performance
b) Company Name’s performance
c) Last year’s increment trends
d) Industry trend
Increment is based on percentage increase in CTC and is disbursed once in a
year. The range of percentage increase is decided taking the above factors
into account.
In cases of exceptional performance or where the Management feels it
necessary, increase in CTC beyond the range may be considered.
Promotion Policy
A promotion is a career opportunity for an employee that involves greater
responsibilities and may also involve an increase in salary. Promotions of
employees generally take place within their own department.
However, depending upon business requirement an employee may be
transferred and promoted to a position outside his own department provided
the employee possesses the requisite qualification and experience for the
post.
An employee has to complete at least one year’s service in his existing
designation to be considered eligible for promotion to a higher position.
Promotions will generally take place from 1st April along with grant of
annual increments.
In cases of exceptional performance or where the Management feels it
necessary, promotion out of turn may be considered.
Process
Performance Rating - At least “Meeting Expectations” Rating, in the last
Performance Review cycle. Suitability assessment by the Supervisor and
Director of the Company Name.
The employee not having undergone any disciplinary action/proceedings or
Performance Enhancement Plan (PEP) in the last 6 months.
Minimum tenure - Employee needs to have performed in the Band for a
minimum period to a corresponding performance rating as defined below:
Minimum Performance Tenure in
Performance rating (Last applicable)
the Band
Outstanding 12 months
Beyond Expectations 18 months
Meeting Expectations 24 months
Employees who meet the above criteria will be considered for Career
Progression in the beginning of the following quarter of the financial year.
e) Frequency - Progressions will happen on a quarterly basis.
Lateral Movement Policy:
Purpose
The purpose of this policy is to provide an opportunity to all the employee as
to apply for a vacant position to enhance career growth opportunities. It is
also the objective of the organization to assign employees to a position that
effectively utilizes the employee’s skills consistent with the overall
organization’s requirements.
Scope
The Policy on Lateral Movement is applicable to all positions vacant in the
company.
Recruitment Process
1. All positions including replacement and new will be first circulated
internally and if no applications are received within time frame or no
suitable candidates are found during the interviews, the post then will be
advertised for open recruitment.
2. The necessary approval Director and advertisement process for
recruitment through Lateral Movement will be obtained through mail or in
person.
3. After receiving the approval from Director, the HR department will initiate
the recruitment process by circulating the Vacancies (on the internal email
group of the company).
4. The time frame for receiving of applications from interested candidates is
7 working days.
5. The candidates interested for the concerned position should submit a hard
copy application along with the updated resume & NOC from the respective
reporting manager in which the employee is currently working.
Eligibility Criteria
Employee may apply for a lateral movement opportunity provided they meet
the following eligibility Criteria:
• Candidates who are on same level can only apply for the vacant post
• Working continuously with the company from at least last one year on a
full time Consultancy Contract
• Meet the minimum educational qualifications, experience and skill
requirement for the open position.
• Job performance at a satisfactory level and there is no disciplinary case
against him / her.
Shortlisting Process
1. After initial scrutiny of the applications & resumes, the HR section shall
handover the same to the function head of the recruiting division for final
shortlisting of candidates for interview.
2. After receiving the final list of shortlisted candidates, date of interview is
finalized. The Interview is conducted by the head of the department where
the vacancy is.
Approval Process
1. HR department will initiate a file note on selection / no-selection of
candidates and send it to Director of the company.
2. On receipt of approval, the HR Section will intimate the Selected
Candidate & his/her current Reporting Manager about the selection through
email.
3. It will be responsibility of the Reporting Manager to relieve the employee
in around 15 days of receiving the intimation.
Miscellaneous
1. The employee's monthly salary and other entitlements will not change due
to Lateral Movement
2. The appraisal will be done by the reporting head under whom the
Consultant has worked most in that calendar year with inputs from recent
reporting manager if the consultant has worked for more than 90 days under
him / her.
3. There will be no change in the leave balance available to the employee.
4. The date of joining the organization will remain same, but the details of
change of department will be amended in the records.
Succession Planning
Purpose
Succession Planning is an essential component to the survival and growth of
any business. Succession Planning is a tool or an organization to ensure its
continued effective performance through leadership continuity.
The aim of the policy is to plan for orderly succession for appointment to senior
leadership positions. To ensure that company is prepared with a plan to support
operations and service continuity when Key Management Personnel or senior
business leaders vacate their positions.
To prepare a supply of suitably qualified and motivated employees for higher
roles and responsibilities. To ensure systematic and long-term development of
individuals in the KMP and SMP level to replace when the need arises due to
the death, disability, retirement or any other unexpected occurrence.
Applicability:
The Policy shall be applicable for succession planning of the following
personnel:
1. Managing Director and CEO;
2. Key Management Personnel and Senior Managerial Position - i) General
Manager and above ii) Chief Financial Officer;
3. Any other positions within the Company at the discretion of the Managing
Director & CEO in consultation with the Board.
Policy Summary
A nomination committee will be formed to take on all the succession planning
responsibilities. The nomination committee will comprise of the MD, Head of
Human Resources, and Head of Finance.
The Nomination Committee shall apply a due diligence process to determine the
suitability of every person who is being considered for being appointed or re‐
appointed for any key position for the Company Name based on their
educational qualification, experience & track record and any other criteria
stipulated by the concerned regulators. Any appointment or re‐appointment
shall be subject to prior approval / recommendation by Nomination Committee
of the Company Name.
The Nomination Committee must part take in the following exercise throughout
the year-
1. The committee will periodically review and consider the list of key positions
due for retirement / vacancies arising out of attrition during the year.
2. The committee must also consider the new vacancies that may arise due to
the business needs/restructuring of functions/departments.
3. In case if a Key Personnel is due for retirement, will review the possibility of
an extension of such personnel on basis of the health, age and the person’s
willingness to continue for an extended term. In case, if an extension is
possible, such case is forwarded to the Company Name for its approval.
4. In case if such position is to be filled through internally or externally, will
evaluate the suitable candidates for the said positions internally as well as
externally on basis of the criteria such as job role, experience, leadership
qualities, competencies, track record etc.
5. It shall from time to time identify high potential employees who merit faster
career progression to position of higher responsibility and give them adequate
skill development and training requirements for their successful career
progression.
In the event of any unexpected occurrence in respect of any employee in key
position, the next person as per the organization chart (as far as possible) shall
take interim charge of the position, pending the formal appointment in terms of
the succession plan.
Once the identification process is completed by the nomination committee, the
shortlisted candidates are further referred for the position.
