Performance Management:

Focus on Performance
Appraisals
Performance Management
System
Performance Management
Performance Management starts
with the Annual KRA and Goal
Setting Process:
4 Pillars of PMS
What are Key Result Areas
(KRAs)
 Setting Goals

 Goal Setting is a road map to aspired

results.

 At the individual level, goals provide

direction and momentum to attain the
desirable outcomes in both personal
and professional life.

 In organisational context, goals define

what organisations, functions,
departments and individuals are
expected to achieve over a period of
time.
Set SMART Goals….
 Why Set Goals??
A goal is a statement of intent,
describing a situation or condition that
will be achieved in a specific time
frame.
 Goals should be
Measurable….
Measures are defined in terms of
Quantity, Quality, and Timeliness
of accomplishment or by cost /
resource utilization for a specific
goal.
Weightages….
Elements
of PMS

 Linked to Business Drivers

 Aligned across levels and functions
 Actionable
 Dialogue based
 Top – down aspiration setting plus
bottom – up budgeting
 Development focused performance
review
 Annual Evaluation at the year end
 What is the difference
between a KRA and a
Goal???
KRAs are generic responsibilities
while goals specify the deliverables of
the responsibilities. A KRA may have
one or more corresponding goals.
 Rating Scale

5 – Outstanding (Exceeds Standards) – Always (above 90%)

4 – Excellent (Fully Meets Standards) – Most Often (between

70 & 90 %)

3 –Good (Usually Meets Standards) – Most Often (between

30 & 70%) Several

2 – Acceptable (Fails to Meet Standards) – Sometimes (between

10 & 30%) Some

1 – Poor (Much Below the Average) – Rarely (less than 10%)

Only one or two
 Outstanding (Exceeds
Standards)
 Clearly considered to be exceptional
performers.
 Consistently exceed the communicated
expectations of the job function,
responsibility or goal.
 Demonstrate unique understanding of
work beyond assigned area of
responsibility.
 Identify needs and provide unique,
innovative and workable solutions to
problems. 
 Achievements and abilities are
obvious to subordinates, peers,
managers and customers.
Excellent (Fully Meets
Standards)
 These employees are “on track” and
fully achieve expectations.
 Independently and competently
perform all aspects of the job
function, responsibility, or goal.
 Performance consistently meets the
requirements, standards, or
objectives of the job.
 Occasionally exceeds requirements.
 Recognizes, participates in, and
adjusts to changing situations and
work assignments.
 Good (Usually Meets
Standards)

 Generally meet expectations

required for the position.
 Competently perform most
aspects of the job function,
responsibility or goal.
 May require improvement in one
or two areas of consistent
weakness.
 Employee requires coaching in a
weak area or may need additional
resources or training to meet
expectations.
 Average
(Somehow Meets Standards)

 Employees with this somehow

satisfactorily perform most aspects of
the position (or function).
 Performance levels are below
established requirements for the job.
 Employee requires close guidance and
direction in order to perform routine
job duties.
 Performance may impede the work of
others and the unit.
 A performance improvement plan
must be submitted to HR.
 Poor (Fails to Meet
Standards)
 Employees with this rating fail to
satisfactorily perform most aspects of
the position (or function).
 Performance levels are much below
established requirements for the
job.
 Performance may impede the work
of others and the unit of great
extent.
 Action plan to be prepared for his
separation from the organisation.
 Scheduling the
Meeting

 Notice
 Location
 Self-evaluation
 Appropriate form
 Comments
 Supervisory approval
 Filling out the Form
 Review notes
 Behaviors vs. value
judgments
 Align categories on
form with
employee’s job
responsibilities
 Optional categories
 Set goals
 Setting Effective Goals

 Quick Tips
 S.M.A.R.T. Goals
 Specific
 Measurable
 Achievable/Agre
ed Upon
 Relevant
 Time-bound
 Aligned
Set Goals Communicate
 Adjustable

Evaluate Observe
Common Mistakes
 Labeling
 Recency
 Central
Tendency
 Leniency
 Horns/Halo
Effect
 Constancy
 Similarity
 Performance Appraisal
Practice
 Review Performance
Appraisal for items
that are:
 Under-rated
 Over-rated
 Poorly stated
 Refer to employee
background
 Rewrite Performance
Appraisal using tools
reviewed today
 Make sure to fill out
the form completely
including the Goals
section
Common
Performance
Appraisal
Challenges
Conducting the Meeting
 Review rating system
 Discuss employee’s
self review
 Let employee talk
 Be aware of all three
parts of the messages
you send:
 Words
 Tone
 Body Language

 Stay focused on
performance
Thank You….