Theme Establishing performance management department in a company main features to address are: 1. Strategy Statement. 2. Process. 3. Need of the department

1.  Submitted to
Respected Faculty Amin Changan
 Prepared by
Syed Muhammad Humza Hussain Roll No. 12544
 Course Title
Human Resource Management
 Topic
Performance management
 Dated
August 7, 2018
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2. Table of Contents
ABSTRACT ............................................................................................................4
INTRODUCTION TO PERFORMANCE MANAGEMENT................................4
COMPANY PROFILE............................................................................................5
Mission ....................................................................................................................5
Vision.......................................................................................................................5
STRATEGY STATEMENT.....................................6
Detailed Strategy:...............................................................................................6
PERFORMANCE MANAGEMENT
PROCESS............................................................................................6
PLAN.......................................................................................................................7
Determining the major duties & responsibilities: ..............................................7
Planning for smart goals:....................................................................................8
Planning for performance standards: .................................................................8
 Quality Standards:......................................................................................8
 Quantity:.....................................................................................................9
 Time restraint: ............................................................................................9
 Cost effectiveness:......................................................................................9
 Behavior: ....................................................................................................9
Planning for performance evaluation:..............................................................10
 Appraisal strategy/Performance rating: ...................................................10
 Rating Criteria..........................................................................................10
Planning for feedback: .....................................................................................10
 Ongoing performance monitoring and feedback: ....................................10
 Performance assessment (appraisal): .......................................................10
Planning for rewards and compensation:.........................................................11
 Reward for outstanding performer:..........................................................11
 Reward for above average performer: .....................................................11
 Reward for average performer: ................................................................11
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3.  Reward for below average performer: .....................................................11
COACH .................................................................................................................11
Provide feedback:.............................................................................................11
 Positive Feedback:....................................................................................11
 Constructive Feedback:............................................................................12
Consent action plan with employee: ................................................................12
Mentor the employee:.......................................................................................12
EVALUATE/APPRAISAL...................................................................................12
NEED OF DEPARTMENT...................................17
References .............................................................................................................17
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4. ABSTRACT
This report is written on the basis on the observation has been carried out on recently
established Fast-Moving Consumer Goods (FMCG) company named as TastyFoods
Industries (Pvt) Limited. In this subject we put a glance on the performance of this company
in every department (Finance, Hunan Resource, Procurement, Production, Warehouse,
Marketing, Sales, Logistics, Accounts and Legal). We have gathered every department
objective, procedures and techniques which they have adopted to accomplish their goal and
compare it with the Company’s Vision and Goals. We have observed that there are some
departments where performances are not aligned with the company’s goals that’s why designed
a yardstick to measure the performance as per the requirement of the company. We also
addressed individual goals of every employee associated with the company &design a
performance level which needed to be meet for betterment of both the company and the
individual as well.
INTRODUCTION TO PERFORMANCE MANAGEMENT
Performance is the ability of a person or entity to do a work it could be above average, average
or below averagewhen we measure iton some grounds, for an organization performance
management is a yardstick which an organization makes for the accountability its employee’s
contribution in the organizational goals. The performances that are aligned with the company’s
goals are considered to satisfactory or dissatisfactory in case of nonaligned.
Since all businesses has a simple core of tradeoff so those employees who contribute
aggressively towards company’s goals are compensated &appreciated in form of incentives
both cash, noncash& promotions. Those who contribute at par level which is just needed to
grow more or just aligned at a satisfactory level to achieve organizational goals are also
appreciated but relative lower than the one which is discussed as above (outstanding
performers) and at last those whose performance are under satisfactory levelare considered to
be misfit for the organization or sometimes the department which may not be the field of their
interest. The corporate world makesway to let them understand that their performance is below
average and they should find another job through low or no increment and no appreciation.
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5. COMPANY PROFILE
Tasty Industries (Private) Limited is incorporated in Security and Exchange Commission of
Pakistan CRO Karachi as on 16th
December, 2016 with registration No. 0000007, the company
has a complete support mechanism of manufacturing, marketing and distributing a large range
of value added frozen food products.
Mission
 To deliver consistent taste and quality to our valued customers by using the purest
ingredients and technology.
 Be dedicated to a continuous improvement through alliance with international companies.
 To promote professionalism at all levels through education, training & development of
human resources.
Vision
Times are changing and the modern man continuously struggles to find more time for
himself. People crave for convenience in life and the only way to make more time is by
cutting down on time consuming jobs like cooking, house cleaning etc. A company that
believes in quick food preparations gives its customers more quality time to enjoy life and
great tasting food.
 To produce locally and expand globally.
 To make our brands an essential part of every household.
 To maintain the highest standards in frozen food products and take advantage of being
pioneer in the frozen food market as well as research and development.
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6. STRATEGY STATEMENT
“There isalways room for improvements. We design process which contribute towards
continuous improvement for the company’s growth and also provide a career path for
ambitious employees”
Detailed Strategy:
1. Identify the major department of the company.
2. The desired performances of departments which are aligned with the company’s
performance.
3. The desired performance level of individual in different departments.
4. Performance measuring tool.
5. The keys people who will monitor their department performance.
6. Appreciation for outstanding performers
7. Addressing below average performers.
PERFORMANCE MANAGEMENT
PROCESS
Performance management is a communication process by which managers and employees
work together to plan, monitor and review an employee’s work objectives and overall
contribution to the organization. More than just an annual performance review, performance
management is the continuous process of setting objectives, assessing progress and providing
ongoing coaching and feedback to ensure that employees are meeting their objectives and
career goals.
PMP
Plan
CoachEvaluate
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7. PLAN
Determining the major duties & responsibilities:
The planning phase is a collaborative effort involving both managers and employees during
which they will:
• Review the employee’s job description.
• Identify and review the relationship between the employee’s job description and his or
her work plan, organization’s goals, objectives and strategic plan.
• Develop a work plan that outlines the tasks or deliverables to be completed, the
expected results and the measures or standards that will be used to evaluate
performance.
• Identify critical areas that will be key performance objectives for the year. The choice
of areas may be determined by the organization’s strategic plan, by the employee’s
desire to improve outcomes in a certain part of his or her job or by a need to emphasize
a particular aspect of the job.
• Identify training objectives that will help the employee grow his or her skills,
knowledge and competencies related to the work.
• Identify career development objectives that can be part of longer-term career planning.
Determine
the major
duties
Setting smart
goals
Performance
standards
Evaluate the
performance
Feedback
Rewads and
appreciation
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8. Planning forsmart goals:
Often, the most difficult part of the planning phase is developing clear and appropriate
language to describe performance objectives and measures or indicators of success.
Supervisors need to ensure that the performance objectives are a good representation of the full
range of duties carried out by the employee, especially everyday tasks that take time, but are
often not identified as significant accomplishments. The objectives and indicators need to be
SPECIFIC
Clearly specify the task to be done, when it must be completed, who
is to accomplish it, and how much is to be accomplished.
MEASUREABLE
Use multiple measures if possible, for example, quantity, quality,
time frame and cost. Ask questions such as: How much? How many?
How will I know when it is accomplished?
ATTAINABLE
Ensure there is a reasonable path to achievement and an excellent
chance that objectives will be accomplished.
RELEVANT
Goals should be aligned with the organization’s overall mission or
strategy. Goals measure outcomes, not activities.
TIME BASED
Set a clear time frame for achieving performance objectives/goals. In
most cases, objectives must be completed by the end of the
performance review period.
Planning for performance standards:
Standards that can evaluate the performance are the basic main tool which provide a clear
picture of the standing position of an employee. The main features of standards are mentioned
below:
 QualityStandards:
Quality is the core essence of any business which builds trust and value in the mind of
customer.Quality is how well the work is performed. In food production no one can
compromise on quality until he or she is deliberately and maliciously wishing to have
quick profit and move away.
Food products have many quality checks in every stage of its production from raw
material to finished good
We focus on four M in quality check.
1. Man
2. Material
3. Machinery
4. Methodology
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9. Examples:
For HR the quality refers to the mature Job analysis which brings right people for the
right post and the policies which attracts them to serve for a long period.
In procurement department it is the responsibility of procurer to ensure that the inventory
they receive are as per the quality standards or not & if found any low-quality inventory,
so should return the same immediately with a credit note.
The machinery in the factory are working at their best capacity and have negligible
waste.
The procedures that we are following are cost effective and time saving or not.
 Quantity:
How much work is produces,A quantity measure can be expressed as an error rate, as
how much error is acceptable or negligible in production. How much to increase sales?
Example: The average production of our factory should be 60,000 ton per year
 Time restraint:
Time is one of the most important things to standardize, the perfect time of taking riskcan
bring huge profit, at the same time if the time of taking risk is not favourable than it could
be the end of any entity. Timeline standards should be followed strictly to cover any loss
which may occur due to time barred. So, everybody should work as quickly as they can
and there is a defined limit to complete task and objectives. In our company time has to
be meets on daily bases in form of sales to lower the chances of being stock out/ out of
stock.
 Cost effectiveness:
Is it not only the responsibility of the upper level management to control cost. it is also
the responsibility of middle level managers to control cost the at every stage it is the cost
which make our product less profitable so we make a system where we reward all those
employees who manage their departmental budget to its best without affecting the
quality.
 Behavior:
You must have positive attitude when you are inside our organization.
There are ways the channel/hierarchy in our organization to follow for any grievances.
There are certain behaviors which are intolerance to the organization such as on job
relationship scandals, harassments, shouting on colleagues either senior or junior.
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10. Planning for performance evaluation:
On the above basis we evaluate each employee and categories them as per their level of
performance.
 Appraisal strategy/Performance rating:
We adopt a hybrid method of self-evaluation and competency rating, this method consists
of reward points for every task, in this pertain we categorized the whole task as:
1. Objective/Goal achievement points (Quality & Quantity) 85 points (divided in no. of task)
2. Time points (Punctuality points, Leaves points, Behavior) 5+5+5=15 points
3. Supersede point (additional points for getting 100 points) 10 Points
 Rating Criteria
If you get 100 points you get 10 plus points = 110 points outstanding performer
Above 95 points are considered to be above averageperformer
Above 75pointsare considered to be average performer
Below 75 points are considered to be low rating or below averageperformer
Planning for feedback:
 Ongoing performance monitoring and feedback:
It’s included in the task of every manager to monitor its subordinates and give
immediate feedback, also note&evaluate rating of performance from time to time.
 Performance assessment (appraisal):
Appraisal is due after the performance year ends (normal year) and is has to be completed
within 3 months ended 31st
March so that the increment can be made in start of fiscal
year. In which the supervisor or manage evaluate the self-assessment which was made by
the employee themselves and adjust the points by putting their view upon it and justify
their rating, the employee can argue on their rating, after mutual consensus the manager
forward that to HR for final rating & rewards
The Appraisal has three part:
1. Self-Evaluation.
2. Manager endorsement or defy.
3. Final Rating by HR.
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11. Planning for rewards and compensation:
 Reward for outstanding performer:
 Promotion for 3 year consistent supersede performance + 200% cash reward on salary
(two months’ salary) + 7 days leaves + increment (Normal + performance +Market Gap
adjustment, if any)
 Reward for above average performer:
50% cash reward on salary + increment (Normal + Performance)
 Reward for average performer:
25% cash reward on salary + normal increment
 Reward for below average performer:
No rewards + inflationary rate increment
COACH
In coaching step, we define& explain the duties& responsibilities to every department setting
up departmental goals which are aligned with company’s goal and individual employees
through a comparison b/w the work they are currently doing and their respective JD’s, in this
pertain we conduct meetings with upper level management to lower level management and
guide them the way to do work.Monitoring day-to-day performance does not mean watching
over every aspect of how employee’s activities and tasks. Managers should not micro-manage
employees, but focus their results achievement, as well as individual behaviors.
In this pertain the employees and managers should meet regularly to:
• Assess performance on the basis of performance objective.
• Pointing out the problem or lacking which effects their performance.
• Share feedback related to progress.
• Alter in action plan which may be required for improvement.
• Determine the scale of extra support that may berequired for better performance.
Provide feedback:
Every supervisor/manager should communicate to its span over his/her performance and his or
her behavior that may affectthe objective.Feedback has to factor that are stated below.
 Positive Feedback:
Appreciate good performance of the employee will increase their motivational level in
this regard ever manager can issue letter of appreciation to it prospective subordinate
mentioning the reason of appreciation. He has another platform that is employee’s
social web page where a top performer list is published every month and an
appreciation board is also placed inside the organization to paste the same list on
monthly basis.
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12.  Constructive Feedback:
Feedback should be descriptive, detailed and focus on the action rather than general
statements the supervisor and manager should define cause and effects of low
performance. The core purpose is to make the employee realize that where they
standnow and what is the expected performance and behavior from him.
Consent action plan with employee:
Consultation for every task is very important so that the manager will know the ability and
capacity of the employee that helps them to give as much objectives to them which he or can
easily manage. In this process a manger should do certain things which are listed below.
1. Ask employee to suggest his way to complete the objective.
2. Agree on a specific plan of action and document it.
3. Specify the consequences to the employee if performance is not up to the mark.
Mentor the employee:
1. Provide accurate and timely feedback.
2. Assess resources which can be utilized by the employee.
3. Set priorities that are aligned with the company’s goal as per their importance.
4. Recommend the changes in the work method to improve performance.
EVALUATE/APPRAISAL
After the planning, coaching and full year monitoringis complete as discuss earlier at the end
of the fiscal year date stated in the planning part we conduct the final evaluationin which
documentation is prepared and meetings are conducted where the evaluation is defended by the
employees, manager points out those factors which are lacking and affected the
performanceafter that a mutually accepted evaluation is forwarded to human resource
department for final endorsement.Only issues that have previously been discussed with the
employee should be part of the assessment documentation and meeting. This helps ensure
managers address performance issues as they arise and assures the employee there will be no
surprises during the performance assessment meeting.
In explanation to the factors of performance objects/goals achievement.The mangers have to
endorse or defy evaluation form on the basis of monitoring which they have done throughout
the year and point out the mistakes to them and manager put itscomment/ evaluation upon a
separate sheet and sent it to HR. Note that manager evaluation is open to employee as
discussed above. Employee’s self-assessment form is as under:
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13. EvaluationForm -I
Employee Name: _________________________________________ Date: _______________
Job Title: ____________________________ Location: _______________________________
Supervisor's Name: ___________________________________________________________
Performance Review Period: ____________________________________________________
Employee Instructions:
Please complete and return this self-evaluation to your supervisor by [15th
May, ________].
Your thorough and timely participation in the appraisal process will help facilitate a fair and
comprehensive review of your progress and accomplishments since the last performance
review. If you have been employed by the company less than a year, substitute references to
"since the last performance appraisal/review" with "since you were hired" and answer the
questions accordingly.
1. List your most significant accomplishments or contributions since last year. How do these
achievements align with the goals/objectives outlined in your last review?
2. Since the last appraisal period, have you successfully performed any new tasks or
additional duties outside the scope of your regular responsibilities? If so, please specify.
3. What activities have you initiated, or actively participated in, to encourage camaraderie
and teamwork within your group and/or office? What was the result?
4. Describe your professional development activities since last year, such as offsite
seminars/classes (specify if self-directed or required by your supervisor), onsite training, peer
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14. training, management coaching or mentoring, on-the-job experience, exposure to challenging
projects, other—please describe.
6. Identify two career goals for the coming year and indicate how you plan to accomplish
them.
7. Evaluate yourself on all factors that apply to you since your last performance appraisal, or
date of hire if employed here less than one year. If a category does not apply to you, indicate
N/A.
Rating Scale: 1 - Outstanding/Role Model 2 – Above Average
3 – Average 4 - Improvement Needed/ below average
Category Self-Rating
a. Technical Skills related to your specific job _________
b. Technical Knowledge (up-to-date on industry/discipline news, articles
and best practices)
_________
c. Quality of Work Product (comprehensive, accurate, timely, etc.) _________
d. Utilization or Productivity _________
e. Business Development _________
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15. f. Project Management Skills _________
g. Technology Skills _________
h. Time Management & Organizational Skills _________
i. Interpersonal Skills (positive attitude; ability to get along well with co-
workers/clients/vendors)
_________
j. Communication Skills—Verbal/Written (proposals/reports, letters, e-
mails, etc.)
_________
k. Innovation or Creativity _________
l. Collaboration/Teamwork
m. Mentoring Skills
_________
n. Employee Policies (knowledgeable of and compliant with company
policies and procedures)
_________
o. Leadership Skills (applies to anyone—not restricted to supervisory level
employees)
_________
p. Professionalism (punctuality, attendance; conduct; responsiveness and
follow through)
_________
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16. q. Overall _________
8. Name any other management personnel, besides your current supervisor, that you feel
should provide input toward your performance appraisal.
Thank you for taking the time to complete the Employee Self-Assessment.
Supervisors: Attach completed Self-Assessments to the Employee's
Performance Appraisal and return to HR.
The above form is not a piece of cake that an employee can write“I scored best” or just puts his
or her best work on it and hide their lacking because the employees has to defendhis/her rating
to his manager/supervisor, the use of word boss is probably the right word here. Because
he/she will prob the subordinate and refers those points which make your assessment natural.
Evaluation Form -II
Name of Employee: _____________________________________ Date: _________________
Job Title: ____________________________________ Department: _____________________
Performance Review Period: ____________________________________________________
List of objectives
given
Deadline Date Date of
Completion
Points Earns
1.
2.
3.
4.
5.
6.
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17. 7.
8. Maximum
Total Rewards points
Remarks on Performance& Behavior:
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Signature of Employee Signature of Evaluator
Designation
NEED OF DEPARTMENT
Basic reason to establishing this department is to Identify, justify, motivate and appreciate
those incumbents whose contribution is outstanding and are credible assets for the
organization. We believe that everybody should get what they deserve.
The reason to form this department is because our target sales have decline and we have many
quality, stockout, procrastination, segregated department and individual objective issues that is
why we proposed this department to systemize and categorize the company’s performance so
that the actual/collective goal can be achieve.
References
1. Wood Hole Oceanographic Institution
(https://www.whoi.edu/HR/page.do?pid=20041)
2. STATE OF OKLAHOMA TRAINING AND DEVELOPMENT OFFICE OF
MANAGEMENT AND ENTERPRISE SERVICES HUMAN CAPITAL MANAGEMEN
(https://www.ok.gov/opm/documents/PMPHandbook.pdf)
3. Berkeley Human resources
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18. (https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/managing-
successfully/performance-management/concepts)
4. Indiana University Indiana UniversityIndiana University (http://www.iu.edu)
5. Form of self-assessment is taken from https://www.shrm.org/resourcesandtools/tools-and-
samples/hr-forms/pages/cms_002006.aspx
6. Self-evaluation BY CIO https://www.cio.com/article/2386859/careers-staffing/careers-
staffing-10-tips-for-making-self-evaluations-meaningful.html
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