Performance Management System Philosophy

 Performance Management System Philosophy & Objective  Key components of PMS  Different Approaches to PMS  Characteristics of an effective PMS  Types of Measure  Errors in Performance ratings  PMS in organization  Balance Scorecard Approach - TCS (BPO)  360 Degree Approach  Management by Objective

- Hewitt Associates - Intelenet

Philosophy Purpose of PMS is  To create an environment *

in which each individual is given optimum opportunity to realize his / her full potential

 To aid every manager promoting the most effective use of human resources. 

To ensure that... *

Each member makes the optimum contribution to the company’s performance and the profitability.

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Helps self & team members to get high degree of job satisfaction.

PMS OBJECTIVES  To provide analysis of how well individual is performing .  In his current responsibilities  Based on goals set & results achieved  An objective analysis.

 To promote shared understanding of task and relationship between supervisors & sub ordinates.  To aid in determining performance rewards that are commensurate with individual achievements & capabilities.  To prepare a development plan for individual to  Improve individual performance  Prepare him for future responsibility

Key components of PMS

Approaches to measuring performance  Comparative approach  Attribute approach  Behavioral approach  Results approach  Quality approach  Means-based approach

Characteristics of an effective PMS  Clearly defined goals  Regular feedback  Coaching & Mentoring  Focus on solving problems  Promotes self assessment  Balance between Performance & potential  Transparency in ratings  Focus feedback on behavior or results  Manage marginal performers Types of Measures  Input measures track the resources dedicated to or consumed by the program.  Output measures track the direct products of agency activities. Usually reported as the number of units of service provided.  Quality measures track the responsiveness, accuracy, and completeness with which services are provided, and how well clients/customers are satisfied with the services.

 Outcome measures track changes/benefits experienced by intended beneficiaries at least partially as a result of agency services provided to them. Changes/benefits typically relate to beneficiaries’ behavior, condition, knowledge, attitude, skills, and values.  Efficiency measures track the amount of outputs/outcomes produced in relation to inputs used. Typically expressed as cost or time used per output/outcome. Problems of Rating  Leniency 

Severity

 Central Tendency  Halo Error  Primacy and Regency Effects  Perceptual Set  Performance Dimension Order  Spillover Effect Introducing Performance Management – at Hewitt Associates All performance and development planning documentation to be completed to be eligible for Annual Incentive Purpose: Align efforts to business objectives Provide Basis for assessment and reward Career and development priorities Philosophy involves key conversations about Performance reward and development throughout the assessment year

HA Performance Management Database

Performance Calendar Conversation

By When?

Performance Planning

Documented by 30th April, Ongoing additions/ changes/ edits

Development Planning

Documented by 30th April, Ongoing additions/ changes/ edits

Ongoing Coaching & Feedback

At end of each project; Throughout the Year;

Performance Assessment

August – September

Pay and Recognition

October

Career Planning

October; As and when required

What we cover Performance Development aspects –

End of project assessment and review (EOPAR)

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Scorecard quadrants (as applicable)

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Financial goals such as revenue, collections, profitability

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Client goals such as client satisfaction, repeat business, revenue from targeted clients

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Talent goals such as retention, developing team, engagement of team, training others, involvement in talent acquisition, mentoring, being a Buddy, etc.

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“Build for future” goals such as involvement in launch of new offers, organizational development, etc.

10-11 competencies •

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Assessment vis-à-vis proficiency level expected as per Band

Initiative taken to develop oneself

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Increasing capability by successful participation in L&D activities

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Improvements made via mentoring People Management

Whom to seek feedback from on each of the above aspects -

Manager/Mentor; Project Manager o

working across Practices; may or may not be working with your People Manager during the year

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with several Project Managers during the year

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We use a 5 point rating scale

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Feedback is solicited from people you work with and is always multiple sources

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Relative Assessment is done

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Assessment will be done once a year o

All Associates go in for performance assessment

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October-September Cycle

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Less than 6 months of service – assumed rating of “C”, increment prorated

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6 months and above – full rating, increment prorated

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All Associates are brought on to the Hewitt Cycle

Rating Scale E: Does Not Meet Expectation Started on some, but not all goals and responsibilities set for the year Did not complete any goals and responsibilities during the performance cycle Demonstrated poor and unacceptable performance quality on work almost all the time Lacks base level Proficiency for performing current role Does not possess basic required behavioural competencies for performing role, and lacks depth even

D: Inconsistently Meets Expectation Started on some, but not all goals and responsibilities set for the year Completed only some goals; others were left partially done or incomplete Demonstrated expected performance quality on some work done, but below expectation work most of the Demonstrates base level proficiency in a few areas of the role only Possesses few basic competencies required for the role, but has inconsistent depth within each of these

C: Consistently Meets Expectation Started on all goals and responsibilities that were set for the year Successfully completed all goals and responsibilities that were set Demonstrated expected performance quality on all work done, all of the time Demonstrates base level proficiency levels in all areas of work Possesses all the competencies required for the role, and demonstrates consistent depth within each of

B: Often Exceeds Expectation Started on all goals and responsibilities that were set for the year, including some that were not defined in Successfully completed all goals and responsibilities that were set, including some that were not defined in Demonstrated expected performance quality on all work done all of the time, and above expected levels Demonstrates above base level proficiency levels for current role Possesses all the competencies required for the role, and demonstrates above average depth within each

A: Consistently Exceeds Expectations Started on all goals and responsibilities that were set for the year, including a significant number that were Successfully completed all goals and responsibilities that were set, including a significant number that were Demonstrated above expected levels of performance quality all of the time Demonstrates exceptional proficiency levels for current role; is ready to take on greater levels of Possesses more than the required competencies required for the role, and demonstrates above average

Career Movements •

Movement are based on performance and potential to fit role in next band

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Cross Practice movement is based on interest, suitability for role and technical competency

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Years of service/tenure, which “batch” I am from, etc are not factors which are considered

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There is no fixed “number of years that one spends at each level before I move”

Bonus Plan Principles •

Simple trumps elegant

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Regional linkage to the Global results of Consulting group

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Strong linkage to Financial performance

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SMART and stretch goals for all associates

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Fully funded bonus pools linked to performance

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NOI accountability will be rolled up at the Market level

Other provisions on payouts •

Payout –

Based on achievement of objectives, as per Band

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Is calculated on TFP and is taxable •

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TFP = Actual TFP paid during the Financial Year

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Limited to the amount of pool created

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Prorated by length of service

Eligibility: –

Associate must be on Hewitt rolls as on September 30th, 2008; Associates on notice period are not eligible

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Performance plans must be documented on HA Database by April 30th

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Performance rating of “Does not meet expectations is an exclusion”