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Goal Setting

How to recognize and analyze effective goal statements.


How to write effective goals.
SMART Goals.
Coaching
Importance of Coaching.
Qualities of a good coach.
Performance Appraisal
What is performance appraisal.
How to conduct performance appraisal.
Problems in appraising performance.

WHY GOAL SETTING

Helps to ensure that the organization reaches its


goals and objectives.
Provides the basis for giving the staff member
performance feedback.
Provides a basis for coaching and dealing
with poor performance.
Helps to identify problem areas and leads toward
solutions.

GOAL INTERACTION MODEL


ORGANIZATIONAL

PLANNING

GOALS

Resources
Constraints

ACTION
STEPS
(Performance)

RESULTS

YOU

GOAL SETTING CRITERIA

Specify desired results.


Make the results measurable
Set time frames
Discuss resource considerations
Avoid fuzzy goals such as as soon as possible,
optimum results, maximize sales,etc.

SMART GOALS
Goals should be SMART

SPECIFIC - Are the goals specific, do they clearly outline what is required?
MEASURABLE ATTAINABLE -

Are the goals measurable, can they be evaluated?

Are the goals realistic, if stretched, are they attainable?

RELEVANT - Are the goals in line with department/unit objectives?


TIME BOUND - Are the goals time bound?

NON-SMART

SMART

Increase sales volume


substantially

Increase sales volume by 10%


over last year by Dec. 2005

Train department staff

Ensure at least 10 employees from


the department attend training
sessions every quarter

Control expenses for better


utilization of resources

Ensure 5% saves over last year


on all department expenses by
4th quarter

GOAL SETTING MODEL

REVIEW GOALS

EXPLAIN GOAL REQUIREMENTS

GET FEEDBACK

OBTAIN COMMITMENT

COMPONENTS OF GOAL STATEMENT

What must be accomplished?

Define what must be done

Clearly define the end result

How will it be measured?

Goal statements should describe


action things which can be
measured and observed

COMPONENTS OF GOAL STATEMENT


How will it be achieved?
Take into account the following:

Available time

Staff (who is the best person


to do the job)

Training needs

Other unit goals

When will it be achieved?

Include a time frame in goal statements

WHAT IS COACHING?

Coaching is the art of improving the performance of others.


Managers who coach encourage their teams to learn from
& be challenged by their work.
Create the conditions for continuous development by
helping your staff to define and achieve goals.

STRUCTURING COACHING
DEFINE
DEFINE

Determine
Determineperformance
performancegoals
goals

ANALYZE
ANALYZE

Understanding
Understandingthe
thepresent
presentreality
reality

EXPLORE
EXPLORE

Explore
Exploreoptions
optionsto
toachieve
achievegoals
goals

ACT
ACT

Say
Saywhen
whentasks
taskswill
willbe
bedone
done

LEARN
LEARN

Implement
Implementagreed
agreedactions
actions

FEEDBACK
FEEDBACK

Review
Reviewprogress
progressat
atnext
nextsession
session

QUALITIES OF A GOOD COACH


Readiness to Listen
Ability to
Prioritize

Belief in Peoples
Potential

High
Expectations

Coach

Interest in People

Feedback

Set Targets

PERFORMANCE STANDARDS

Performance standards answer the question,


How will the employee and the manager
know when the employee is meeting or
exceeding expectations for his or her
position?.

PERFORMANCE STANDARDS
Performance Standards define the minimum acceptable
performance for the task or function.
Performance standards lets both supervisor and the
employees know what the expectations are for performance
of a specific function.
Mutual understanding and recognition of the standards is
necessary, however mutual agreement with the employee
is not always possible.
Characteristics of performance quality should be defined in
a way that is measurable and would meet or exceed
expectations.

Most pertinent questions asked by employees


What am I expected to achieve in my job and how will
success be judged?
How am I doing?
How are we doing (relative to competitors)?
Where do I stand?
Where am I going?
What do I need to work on?

WHAT IS THE PURPOSE OF APPRAISAL


Providing basis of feedback on employees
performance.
Planning goals for job performance with employee.

Determining training and development needs.


Identifying promotion potential.
Identifying employees with skills and abilities.
Determining merit increases.

PERFORMANCE APPRAISAL MODEL


Review your comments and ratings with staff member.
Discuss the staff members need for improvement

Discuss the staff members development and potential


for growth.
Get the staff members agreement.

PERFORMANCE RANKING GUIDELINES

5. OUTSTANDING/ EXCEPTIONAL: The obtained


results significantly surpassed ALL expected results.
4. VERY GOOD: The obtained results frequently
surpassed expected results.
3. GOOD: The obtained results were in line with
expected results.
2. NEEDS IMPROVEMENT: The obtained results were
generally in line with expected results, with a few
exceptions.
1. INADEQUATE PERFORMANCE: For the most part,
the obtained results were not in line with expected
results.

PERFORMANCE APPRAISAL SYSTEM


PURPOSE

Determines how effectively employees perform


their work against the requirement of their
position
Identifies improvement and development needs.
Identifies their potential for advancement and
provides a transparent path for career
progression.
Provides plan for correcting deficiencies
Feedback to employees about their strengths
and weaknesses.
Input for promotion & salary raise decisions.

THE BELL-CURVE APPRAISAL METHODOLOGY

Bell curve or Normal Probability Distribution Scale is one of the most


popular tools for evaluating employees' performance.

Employees are ranked from best to worst, typically within a


department, Job level or seniority cadre.

Normal Probability Distribution Scale buckets people, typically in


bell-curve fashion, and limits how many fall into each category.

It indicates that most employees will wind up in the middle average,


whereas fewer employees will end up in extremes at either end.

The Management will use bell curve methodology for the annual
appraisal for employees and all employees would be relatively
positioned in the bell curve and be functionally clustered.

THE BELL-CURVE APPRAISAL METHODOLOGY

CLUSTERS

Employees of each department are placed within the department's


bell curve.

Simultaneously, ranking lists are prepared for Management Cadre


employees in three groups (Pay group V to VII, VIII and IX, X).

Employees are then functionally clustered (department wise) and


placed within a company-wide bell curve.

THE BELL - CURVE


APPRAISAL METHODOLOGY
60

50

50
40
30

20

20
10

20

0
OS

5
VG

BELL CURVE

NI

IP

APPRAISAL FORMS TO BE USED FOR


PERFORMANCE ASSESSMENT

Two Appraisal forms shall be used: EMPLOYEE ACTION/REVIEW FORM


(EAF1) & EMPLOYEE APPRAISAL FORM (EAF-2).
FORM EAF-1: Reviews Key objectives
FORM EAF-2: The Form is divided into two parts:

Part A : Employee Self Assessment/Job Review. Employee defines his


development needs & specifies areas for development/ improvement.

Part B : Employees is rated against 17 attributes grouped into 4 broad


categories:Results, Methods, Personal Qualities & Knowledge. Each
employee is evaluated by the Reporting Officer giving the Employee
Performance.

The accomplishments in EAF-1 & employee attributes in EAF2, Part B,


are rated on a scale of 1 to 5 (1 being the lowest). An average of the two is
calculated to get the final rating of the employee.

THE APPRAISAL PROCESS

STEP 1:

The Appraisal Forms (EAF 1 & EAF 2) are issued


by the HR Department and kept with all Admin
Managers at Head Office & other stations. The
Appraisal is for a period of 12 months from 1st Jan
to 31st Dec.

STEP 2:

Employee in consultation with his Reporting Officer


would complete Form EAF-1, the employee would
provide his feedback in column 2,stating his
"Accomplishments" for the year 2005.

THE APPRAISAL PROCESS


STEP

STEP

3: Employee also has to fill up a Self Assessment Form,


(EAF 2), PART A in which he has to give a detailed
review of his review period for the year 2005, what
difficulties he faced,need for training/self development etc.

4: The Reporting Officer would assess the employee in


column 3 on the basis of objective accomplishment for the
year 2005.
STEP 5: Reporting Officer completes Part B & the Overall Assessment
(Part C) and also suggests the Employee Development Plan. At
this stage involvement of the next Superior Reporting Officer is
suggested to make the process transparent and fair.

THE APPRAISAL PROCESS

STEP 6:

STEP 7:

STEP 8:

STEP 9:

The Superior Reporting Officer completes Part D &


records his observations about the Appraisal & his
final comments.
The Bell Curve is then finalized for the entire Group
in conjunction with the SVP
The appraisal interview is held with the employee
informing him of his accomplishments,areas of
development and ranking. The Employee records his
views about the appraisal and signs off
The Form is completed in all respects, the Original
goes to HR & A for review. Copy each is kept by the
Departmental Admin Manager and the Employee.

THE APPRAISAL PROCESS


HR & A Department reviews all the appraisals received
from different departments. Department wise and Group wise
clustering is done and bell curve for each cluster is developed.
Shown in Step 10.
Points

Rating

Bell Curve

> = 4.6

Outstanding

5%

> = 3.6 and <4.6

Very Good

20%

> = 2.6 and <3.6

Good

50%

> = 1.6 and <2.6

Needs
Improvement

20%

< 1.6

Inadequate
Performance

5%

STEP 10: Employees of each department are placed within the


department's bell curve based on the above ratings.
The
Departments are then functionally clustered,
and all
employees relatively positioned.These
functional clusters are
made separately for each group
of employees.

THE APPRAISAL PROCESS

STEP 11: Company-wide bell curve and the promotion lists


will be reviewed & approved by the ELT.

STEP 12: In the event of a substantial difference in the overall


appraisal as approved by the department head/SVP
and
already discussed with the employee and the final overall
performance approved by the ELT, the
employee will be
advised appropriately.

STEP 13: Human Resource Department issues increment/


promotion letters to be delivered to the employees by the respective
Departmental Heads / GM. Increments and performance rewards
are based on
the rating of the employees.

BENEFITS OF THE APPRAISAL METHOD

The system creates and sustains a highperformance, high-talent culture.

Correlates with the Company's overall goals


and objectives.

Establishes well-defined consequences


(performance-based rewards, timely
promotions, etc.).

Awards Top-performing employees


substantially than the average performers.

Let employees know where they stand.

Helps the managers identify the most and least


talented members of the work group.

GUIDELINES TO COMPLETE APPRAISAL


FORMS: FORM EAF-2 RATINGS
5 OUTSTANDING
[ 5% OF TOTAL EMPLOYEES]
The employees rated in this category stand out in all aspects of their
work, are exceptional performers in terms of originality, initiative,
aggressiveness, versatility and soundness of judgment and require
minimum supervision and follow-up.

4 VERY GOOD
[ 20% OF TOTAL EMPLOYEES]
These employees excel in some important aspects of their work. They
unusually are quick to grasp ideas of others. They are more than
ordinarily dependable & are often singled out by the supervisor for
more important or difficult assignments.

GUIDELINES TO COMPLETE APPRAISAL


FORMS: FORM EAF-2 RATINGS
3 GOOD [ 50% OF TOTAL EMPLOYEES]
The employees rated in this category constitute the majority of
personnel. These performers are usually qualified and competent
employees who produce quality results within allotted
schedules. They have no notable deficiencies in important work
aspects.

2 NEEDS IMPROVEMENT [ 20% OF TOTAL EMPLOYEES]


The employees are deficient in one or more basic & important aspects
of their work, although they are able to achieve average standards
and partially short fall of their job requirements.

GUIDELINES TO COMPLETE APPRAISAL


FORMS: FORM EAF-2 RATINGS

1 INADEQUATE [ 5% OF TOTAL EMPLOYEES]


The employees rated in this category does not meet the job
requirements and is deficient in all basic aspects of his/her
work. His/her performance is dissatisfactory overall and is
unacceptable.

SPECIFIC QUESTIONS TO BE ADDRESSED BY THE


REPORTING OFFICER
FOR PART B Qualities Of An Employee

A) What He Accomplishes?
What assigned tasks and responsibilities have been
carried out by the employee over the review period?
B) What has the employee done particularly well?
By answering this question with specific examples, you will be supporting your
assessment of his overall performance in Part C (Form EAF-2). Please list his
strengths, as evidenced by examples of usually good performance.
C) In what areas has the employee's performance fallen below the acceptable
standards?
Your answer to this question is also intended to support your overall rating of the
employee's performance. Please substantiate to the extent possible by specific
instances. List the areas in which the employee's performance can and should
be improved.

SPECIFIC QUESTIONS TO BE ADDRESSED BY THE


REPORTING OFFICER
FOR PART C Record of Appraisal Interview & Development Plan For
Employee

The objectives of the appraisal interview should be:

To give recognition to accomplishments and to enhance his level


of motivation.

To establish awareness of important deficiencies and to discuss


improvement plans.

Please record the employees review in Part C (EAF 2),


employee's reaction to the points discussed regarding the
appraisal, your comments to his reaction, employee's views &
suggestions for improving his performance.

SPECIFIC QUESTIONS TO BE ADDRESSED


BY THE REPORTING OFFICER
FOR PART C Record of Appraisal
Interview & Development Plan For Employee

A) Indicate areas of knowledge or experience requiring improvement


and development?
The purpose of development planning is to devise specific plans &
programs for an employee's development and for his performance
improvement.
B) What training do you recommend?
The employees can be nominated to participate in training programs
organized by certain institutions of repute or organized by the Company.
C) Actions proposed for improvement in present job performance?
Please indicate here what immediate steps you would like to take to
reduce the employee's deficiencies and improve his performance.

SPECIFIC QUESTIONS TO BE ADDRESSED


BY THE REPORTING OFFICER
FOR PART C Record of Appraisal Interview &
Development Plan For Employee
D) Actions proposed for development?
Please specify here what actions should be initiate for employee development.
E) Do you think the employee merits greater responsibility?
To judge an employees capacity for advancement beyond his present position, each
aspect of his performance, experience and other qualifications need to be taken into
consideration, like:

Demonstrated ability & Experience


Self-development and motivation
Knowledge & Intelligence
Management Skills & Relationships
including Leadership qualities
Personal matters like age, health etc.

PROCEDURE TO BE FOLLOWED FOR


PERFORMANCE APPRAISAL

Each performance appraisal form (EAF-1 & 2) should


be prepared and duly signed by the appraiser,and the
appraise. The date, on which the appraisal is
prepared, must be indicated.

The appraisal should be reviewed and initialed by the


next higher supervisor and the General Manager.

Copies of the Appraisal Form should be sent to the


HR & A Department for .

COMMON APPRAISAL PROBLEMS


Failure to get information from other sources.
The better your sources of information on performance the greater
your ability to make informed decisions.

Failure to prepare for the discussion.


Start preparation and organization at least
two weeks in advance.

Failure to be open, candid and specific.


Employees dont want things sugar coated. Tell it like it is,
as long as you are willing to provide assistance to help
improve employees performance.

COMMON APPRAISAL MISTAKES

Past performance effect

Associations

Compatibility effect

Critical incident

An outstanding asset

Mirrored effect

Fast tracker effect

Personality plus or minus

All-star on a losing club

Self-fulfilling prophecy

COMMON APPRAISAL PROBLEMS

PAST PERFORMANCE EFFECT good deeds and effective


performance from the recent past may carry over into the current
review period.

COMPATIBILITY EFFECT those whom we like, who agree with us


and model themselves after us, get higher ratings.

AN OUTSTANDING ASSET the blue eyed boy, the smooth talker,


or the graduate from the right school receives higher ratings.

FAST TRACKER EFFECT a staff members paper credentials


overshadow his or her measurable contributions.

ALL-STAR ON A LOSING CLUB effective staff


member in a weak unit receives lower ratings than
poor players on a winning team

COMMON APPRAISAL PROBLEMS


ASSOCIATIONS judging people by the company they keep, either
good or bad
CRITICAL INCIDENT -- over-valuing the importance of a recent goof
or win in the overall performance picture.
MIRRORED EFFECT -- the supervisor wants it done the way he/she
used to do it.
PERSONALITY PLUS OR MINUS some people are too brash or too
meek for the supervisors taste. Certain traits are good or bad.
SELF-FULFILLING PROPHECY staff members are judged to be
good workers or poor workers. They are treated that way and soon
begin to act accordingly.

COMMON APPRAISAL PROBLEMS


RATING INCONSISTENCIES
Rating inconsistencies can occur when the focus
is on the person rather than performance.
Generalization of a personality trait can lead to
inconsistent performance ratings.
When only recent accomplishments
or errors are taken into consideration
Beware of personal biases.

REWARDS

Pay systems alone do not manage people or


performance.
Rewards such as recognition, praise, training,
career development, and other non-financial
rewards are equally important.

What gets measured, gets managed

THANK YOU