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
Mid Year review &
feedback
Feedback and Review
April - June
October
April
Ongoing monthly review
and feedback
Final Performance
Appraisal
April-May
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

Significantly
below
expectations
Moderately
below
expectations
Just Meets
Expectations
Moderately
above
expectations
Significantly
above
expectations

Level 1

Level 2

Level 3

Level 4

Level 5
Performance Appraisal-Soft Skills
Competencies
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.

Competencies


10
Deep Rooted Lasting Predictive Measurable Trainable
Performance Appraisal-Soft Skills
Potential
Ability to shoulder higher responsibilities


Adaptability to change
Collaboration
Cost Consciousness/
Resource utilisation
Dependability
Quality of Work / Output
Managing Change
Boundary Management
Entrepreneurial
Leadership
Enhancement of Quality
and Output

Senior Management Junior Management
Performance Diary
Final Year Review process

Appraisee
completes
Self
Appraisal
on KPIs &
submits
Appraiser
determines
Rating on
each KPI,
Competency,
value and
potential
element
System calculates
the PMS Score as
per weightages of
elements and
overall weight of
sections based on
KPI
competencies,
values and
potential
Reviewer
validates each
rating and
makes changes,
if any
Final KPI score
is used for PRP.
Overall grade is
finalised by
Countersigning
officer. This is
used for DPC
The overall
grade and
assessment of
integrity
communicated
through online
display
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