Performance management at artistic milliners

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PERFORMANCE MANAGEMENT
REPORT

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TABLE OF CONTENTS
EXECUTIVE SUMMARY.......................................................................................................3
1. CORPORATE INFORMATION......................................................................................5
1.1 MISSION .........................................................................................................................5
1.2 VALUES..........................................................................................................................5
2. PMS STRATEGY AND ORGANIZATIONAL STARTEGY – INVESTIGATING THE
FIT 7
POSITIONING OF THE COMPANY.....................................................................................9
ARTISTIC MILLINERS HR STRATEGY.............................................................................9
ORGANIZATIONAL STRATEGIES.............................................................................10
ORGANIZATIONAL CHARACTERISTICS................................................................. 12
PERFORMANCE MANAGEMENT SYSTEM AT ARTSITIC MILLINERS ................14
ORGANIZATIONAL CAPABILITIES..........................................................................50
ENVIRONMENT...........................................................................................................51
JD’S OF KEY POSITIONS ......................................................................................................53
3. ROOT CAUSE ANALYSIS ....................................................................................... ….59
4. ANALYSIS AND RECOMMENDATIONS...................................................................62
5. ACTION PLAN ...............................................................................................................69
6. CONCLUSION................................................................................................................76

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EXECUTIVE SUMMARY
With changing demographics, advancing technology and global talent wars, the challenge to build a
competitive, transparent, documented and fair performance management structure has become more
critical than ever for organizations looking to attract and retain the best people. However, the task is
not as simple as it sounds.
As companies begin to understand the importance of having a talented team, irrespective of the size
of the company, they are looking to make strategic decisions to promote a high caliber of work and
that is next to impossible without having a solid performance management strategy in place.
As competition in the global business landscape intensifies, the war for talent is getting fiercer with
each passing day. While Artistic Milliners is a one of the leading industries in the Textile sector, the
HR practices followed by the company are not very impressive. In order to retain their edge, they
need to address these issues especially issues in their performance management structure – key to
retaining top talent.
The report highlights major issues in Artistic Milliners Performance Management Structure and
discusses possible solutions to address these issues. The company needs to invest time and
resources in the design and implementation of their competitive, pay for performance structure in
order to succeed. A credible and fair pay for performance system will require an effective job

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evaluation and performance evaluation system and people who are knowledgeable, qualified and
dedicated.

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1. CORPORATE INFORMATION
Established in 1949, Artistic Milliners is one of the leading vertical denim manufacturing
companies in Pakistan with a strong focus on women empowerment, innovation & sustainability.
Operating on an area of 165,922 square meters and employing 7,650 employees, the company is
divided into six divisions: Denim, Spinning, Weaving, Dyeing, Finishing, and Garment.
1.1 MISSION
Artistic Milliner’s mission is, “To sustain their reputation as one of the top manufacturers in the
world by striving for excellence in each function of our business.”
1.2 VALUES
The company is governed by four core values, which include:

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 Quality
 Innovation
 Service
 Sustainability

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2. PMS STRATEGY AND ORGANIZATIONAL STARTEGY – INVESTIGATING
THE FIT
The human resources department at Artistic Milliners is responsible for developing initiatives and
offers strategic support to the management. The company has a strong performance management
system in place for evaluation of employee performance.
It not only helps the company manage the performances of teams and individuals for ensuring the
achievement of the overall organizational ambitions and goals but also helps them separate the
wheat from the chaff.
Before discussing the strategies, it is important to take a look at the company’s organogram
(hypothetical) to understand how the structure looks like.

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CEO
Managing Director
GM Preparatory & Dyeing GM HR & Admin GM Finance &
Accounts
GM Weaving
Manager Preparatory
Asst. Manager
Shift Engineer
Sr. Production
Officer
Production Officer
Asst. Production
Officer
Manager Dyeing
Asst. Manager
Senior Chemist
Chemist
Asst. Chemist
Manager
Marketing
Coordination,
Production &
Marketing
Maintenance
Asst. Manager
Shift Engineer
Sr. Production
Officer
Production Officer
Asst Production
Officer
HR Manager
Manager Finance
& Accounts
Manager Weaving
Asst. Manager
Shift Engineer
Sr. Production
Officer
Production Officer
Asst. Production
Officer
Asst. Manager
Officer HR
GM Marketing
Trainee Officer

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POSITIONING OF THE COMPANY
Artistic Milliners (Private) Limited (AML) is positioned as country's leading denim and garment
manufacturer with vertically integrated operations. The company deals in manufacturing of yarn,
denim fabric and garments and operates through 14 facilities/units located at Korangi and Landhi
in Karachi, Pakistan.
ARTISTIC MILLINERS HR STRATEGY
HR at Artistic Milliners supports and develops its people – by enabling them to deliver
outstanding business performance.
The HR department offers support to the line management in different departments, performs
centralized service tasks, and ensures application of operational human resources activities. Main
areas of responsibility include manpower planning, organizational development, recruitment, job
classification, and salary administration, training and development, performance appraisal,
advancement, internal mobility, social services, social security, working conditions and
settlement of disputes.
The primary objective of the company’s human resource department is to maximize the return on
investment from the organization's human capital and minimize financial risk and to do so in an
effective, legal, fair and consistent manner.

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Consistency
Fit
 ORGANIZATIONAL STRATEGIES
Artistic Milliners has been growing progressively. The management team continually introduces
new set of policies and systems to cultivate a high performance culture in the organization. These
policies are aimed at making the systems structured and transparent while establishing a culture
of transparency, openness and trust by allowing free information flow and knowledge sharing.
With an aggressive plan for expansion and a focus on increasing shareholder value, Artistic
Milliners is all set to make its way to the top position in the Textile sector. The plan is aimed at
growing profits and extending the benefits of company’s growth & prosperity to the local
community, partners and other stakeholders.
Organizational
Strategies
Environment
PMS Improved Firm
Performance
Organizational
Capabilities
Organizational
Characteristics
Consistency
Fit

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For fiscal 2018-2019, the focus of Artistic Milliners business strategy will be on:
 Increasing reliability & sustainability of the business
 Expanding production capacity
 Aligning HSE systems in line with best international practices
 Strengthening the quality of workforce by attracting, hiring and retaining competent &
experienced professionals
 Increasing the efficiency of key human resource processes including recruitment &
selection, succession planning, performance management and learning and training by
implementing HR modules
 Investing on projects of socio-economic development, with complete involvement &
engagement of local communities
Artistic Milliners has a bureaucratic organizational structure. Like any other bureaucratic
organization, red-tapism and lack of responsiveness are the key characteristics of its corporate
culture. Although the corporate strategy of the organization is well-mapped, tightly held
organizational structure gets in the way of successful execution of organizational objectives.
While traditional hierarchical structure suits the nature of company’s business, the management
needs to understand that in a highly competitive business landscape, speed in taking decisions,

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efficient methods of functioning and operating are the traits that can help the company take the
leading spot in the textile sector.
 ORGANIZATIONAL CHARACTERISTICS
Any organization is governed by a set of characteristics that define it. It includes, its culture, its
unique way of doing things, its policies and processes. Key organizational characteristics of
Artistic Milliners are outlined below:
1.1 CULTURE
HR supports and develops Artistic Milliners most important asset – the people – by enabling
them to deliver outstanding business performance. The culture of the organization is based on
mutual respect and trust. The job of the HR is to ensure they hire people that offer a good job-fit
as well as organization-fit.
1.2 TEAMWORK
Teamwork is an essential part of life at Artistic Milliners because they are a large business
operating in a truly global environment. Every individual is responsible for contributing to the
team's efforts. Through working closely together, the company fosters a true sense of
collaboration.

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1.3 TRAINING OPPORTUNITIES
As the company continues to translate its strengths into business success, Human Resource
development is becoming fundamental to their long-term growth and progress. The company
believes that the coming years will pave the way for a new performance driven culture at Artistic
Milliners, which will be geared towards enhancing their human resource capacity at par with
global standards, embarking on a corporate management training plan to develop future
leadership from within the organization, and achieving excellence at every level.
Artistic Milliners focuses on polishing technical, behavioral as well as managerial skills of their
valued resources. Training Methods used at the company include:
1. On-the-Job Training: Employees learn much of what they need to know by working
with knowledgeable colleagues and receiving regular coaching and feedback. Wherever a
new employee joins, in whatever capacity, he will have a wide variety of experiences
developing skills relevant to his job and giving him an overview of how the company
works.
2. Off-the-Job Training – In addition to on-the-job trainings, off-site trainings are also
given to employees as per schedule and training planto develop and polish their
competencies. Specific programs ensure that an employee builds expertise in their chosen
career; supervisors assess trainees on the trainings they receive.

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Although Artistic Milliners strives to offer a good work environment to its employees, there are a
great many areas that need serious attention. It is a family-owned business and we know the state
of family owned businesses in Pakistan. The credit of keeping everyone together mainly goes to
the people working in the organization. The company has invested a great deal in making the
premises environment-friendly; however, the knowledge of employees in regard to health, safety
and environment (HSE) is not very encouraging. The focus of training across most job categories
is technical and this area remains largely ignored. In order to promote a culture of care, safety
and productivity, Artistic Milliners need to focus on other areas of trainings such as HSE, time
management, stress management and other related trainings. Such trainings will not only
improve their awareness & knowledge but will also help boost their morale and job satisfaction.
 PERFORMANCE MANAGEMENT SYSTEM AT ARTSITIC MILLINERS
180° performance evaluation method is used to evaluate employee performance at Artistic
Milliners. The process involves the appraisee (the person being appraised) completing a self-
evaluation form, which is then discussed and agreed with the appraiser (the person conducting
evaluation) during the appraisal review meeting. Once the information is agreed upon by both
the appraiser and appraisee, the appraisal is signed off.
The company believes 180° feedback is a nice, friendly, two-way conversation between the
employee and their supervisors that not only help bring down the barriers between the two,

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making them more comfortable with each other but also ensures a more rounded and objective
performance appraisal.
At the moment, Artistic Milliners is using Excel-based performance management system, which
is still a used tool for undertaking employee performance review, performance evaluation &
appraisal cycle in a number of Pakistani organizations. Customized worksheets for performance
appraisals based on the nature of job of each employee, is used for performance appraisals.
Employees are rewarded according to their performance annually or on standard regular basis;
performance related to rewards positively shape their behavior and increases their productivity.
MS Excel-based performance management systems are a thing of the past. Artistic Milliners is
operating in a highly competitive industry and it’s high time they abandoned their outdated

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systems in favor of automated systems. The biggest factor that affects overall HR activities of the
organization in a “not-so” positive manner is the fact that most people working in the HR has
been transferred from operations or production department and have no practical knowledge of
HR and latest HR trends.
It has been four years since the company’s HR came into existence. They have managed to get
the hang of basic hiring operations (because unfortunately they still have the impression that HR
is only meant for hiring and managing payroll) and that’s pretty much it. Another major
weakness in their performance management system is that they do not have clearly defined
benchmarks for each job position let alone individual KPI’s. The only day an employee receives
feedback from their supervisor is the day of final appraisal.
The performance management process begins with defining competencies for a given position.
The section that follows outlines the process of defining competencies for the organization and
respective positions, followed by defining goals, actions, KPI’s and rating or ranking system
against which performance of individuals is measured. Here is how the process goes on. The
process is explained for the position of HR Operations Manager.
 ORGANIZATIONAL COMPETENCIES
Key competencies that define our organization’s culture and our people include:

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1. Innovation & Creativity - Creating and identifying novel approaches to address challenging
situations and problems.
2. Initiative - Does more than is required or expected in the job.
3. ‘Can-Do’ Attitude – Finds a way to get things done. Demonstrates concern for achieving or
surpassing results against an internal or external standard of excellence.
4. Time Management - Sets priorities, goals, and timetables to achieve maximum productivity.
5. Adaptability - Responds to change with a positive attitude and a willingness to learn new ways to
accomplish work activities and objectives.
These are some general competencies Artistic Milliners looks for when hiring new people regardless
of the position title for which hiring is being done. It is important to have organizational
competencies defined because these help build the organization’s culture and also sets the base
standard for person-organizational fit decisions.
POSITION TITLE: HR OPERATIONS MANAGER REPORTS TO: GM HR
REPORTED BY:
AM – HR Operations, AM – Learning and Development, AM Compensation and Benefits, AM – Talent Acquisition
Grade: M III DEPARTMENT: HUMAN RESOURCES

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JOB PURPOSE/SUMMARY
The position is responsible for building people and leadership capability, developing an adaptive
and competitive organization and creating a productive environment to deliver increased
business results and competitive advantage for the Company. To fulfill this responsibility, the
HR Manager plays four roles: Business Partner, Change Agent, Employee Champion, and
Administrative Expert.
TASKS/DUTIES
 Manage Benefits, Insurance policies and Claims– Manage, implement and annually
update the benefits program; administer insurance processes, review liability reports,
monitor program costs and recommend policy changes to the GM of human resources.
 Employment Data Management – Develop, administer and reviewemployee records
and departmental reports.
 Departmental Policies and Procedures – Develop, recommend and implement
personnel policies and procedures; prepare and maintain handbook on policies and
procedures; perform benefits administration to include claims resolution, change
reporting, approving invoices for payment, annual re-evaluation of policies for cost-
effectiveness, information activities program and cash flow.

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 Employee Relations – Administer and interpret various labor agreements, administer grievance
procedures, and provide labor relations support during contract negotiations. Provide advice and
counsel to managers and supervisors regarding personnel practices, policy and employment laws.
 Team Development – Support, develop, enable, and empower people to create the environment
for productivity and satisfaction.
 Innovation/Cost Savings –Evaluate and report, decisions and results of department initiatives in
relation to established goals. Recommend new approaches, policies and procedures to effect
continual improvements in efficiency of department and services performed.
 Compliance with Statutory Requirements - Ensure compliance with all federal, state and local
employment laws.
 System Development - Participate in developing department goals, objectives and systems.
Develop and administer various human resources plan and procedures for all company personnel.
 Information Security – Manage appropriate usage of confidential information while ensuring that
all users of company information understand their responsibilities for protecting the
confidentiality and integrity of company’s information assets.
S.
No.
GOALS ACTIONS KPI’S
1- To manage all the renegotiations and
renewal of insurance policies and ensure
Efficient management of
under mentioned employees
All renegotiations and
renewal of insurance

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80% quarterly claims completion benefits in accordance with
the company’s approved
policy/procedures and
statutory requirements:
1. Complete Leave
Management Plan
2. Health Insurance
3. Life Insurance
4. EOBI/ Pension Plan
5. Social Security
6. Any other benefits
and when applicable
policies were updated
and reported quarterly
and 80% claims were
successfully
completed by the end
of each quarter
2- Ensure all the departmental managers
cascade the statutory guidelines to their
subordinates on a quarterly basis in order
to be 100% compliant with the laws and
regulations throughout the period under
review
Ensure timely and accurate
maintenance of employees’
benefits record in the Human
Resource information system
as well as in the hard copy
format as per the approved
standards/entitlements.
Employment record is
maintained and
updated at all times
and a proper report is
submitted at each
quarter to GM-HR

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3- Review and update policies and
procedures every three months to ensure
compliance with business objectives
Implement and monitor
Policies and Procedures based
on set strategy to support
achievement business
objectives.
Ensured 100%
compliance with the
HR policies.
4- Ensure weekly meetings with AM – HR
Operations, AM – Learning and
Development, AM Compensation and
Benefits, AM – Talent Acquisition to
discuss weekly progress and submit
monthly report of these meetings to GM-
HR.
Communicate with internal
employees on a day to day
basis. Ensure that employees
are treated with care and
respect to foster loyalty and
future company growth in
accordance with the agreed
Ensured free flow of
communication with
the employees at all
levels. Reports of
weekly meetings
were submitted on
time each month

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corporate objectives. throughout the year
under review
5- Mentor at least two star performers and
groom them for future leadership roles.
File the entire progress and submit report
to GM-HR at year end
Select two star performers as
mentees, assist them as a
mentor and develop the
potential to meet current and
futurejob challenges
The mentoring and
development process
was performed
efficiently as evident
by progress reports
submitted to GM-HR
during the period
under review
6- Review procedures and systems every 3
months to ensure process efficiency and
effectiveness. Document suggestions
given to stakeholders and their results to
GM-HR at year end.
Continuously review the
existing systems and
procedures to ensure that
benefits are processed
effectively enough to meet the
current and future business
requirements. Suggest
Systems and
procedures were
reviewed, monitored
and updated on a
quarterly basis and
report was submitted
to GM-HR

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improvement to the concerned
stakeholders to bring
innovation & cost saving
ideas in the business
processes.
7- Review and update policies every 6
months to ensure compliance with
statutory requirements during the period
under review
Adhere to and ensure
compliance of all government
regulations applicable to the
business.
Ensured 100%
compliance of
statutory requirement
Meet with the IT head every 3 months to
discuss the performance of IT systems in
terms of efficiency and effectiveness and
suggest improvement when needed. Every
time an improvement is suggested,
document it and submit report to GM-HR
Coordinate with IT
Development departments and
upgrade, enhance IT systems
as needed.
Ensured system for
benefits, data
management,
employee data
management is up to
date as per global
standards as evident

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by quarterly reports
submitted to GM-HR
8- Timely and accurate measurement of
employee data in the HRMS with less
than 5% chances of error on an annual
basis so that all the HR related operations
pertaining to employees can run smoothly
Responsible to use the
information as per following:
Using the information only
for the purpose intended by
the organization.
Complying with all controls
established by the
Organization.
Ensuring that classified or
sensitive information is not
disclosed to anyone without
permission of the appropriate
authority.
Ensured the
information usage is
in line with the policy
and procedure of the
company. The
percentage of error
reported in processes
was less than 5% as
evident by reports
submitted to GM-HR

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 KSA’S (KNOWLEDGE, SKILLS & EXPERIENCE)
1. Knowledge (Education):
 Master’s/ Graduate with a reputable local or foreign university.
2. Experience:
 A minimum 5 years’ experience in the related activities.
 Must have an experience of managing a large team, be a tough business-minded person.
3. Behavioral Competencies:
BEHAVIORAL
COMPETENCIES
KEY ACTIONS
Problem Solving Skills 1. Identifies issues, problems, and opportunities
Recognizes issues, problems, or opportunities and determines whether action is
needed.
2. Gathers information
Identifies the need for and collects information to better understand issues,
problems, and opportunities.
3. Interprets information
Integrates information from a variety of sources; detects trends, associations, and
cause-effect relationships.

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4. Generates Alternatives
Creates relevant options for addressing problems/opportunities and achieving
desired outcomes.
5. Chooses appropriate action
Formulates clear decision criteria; evaluates options by considering implications
and consequences; chooses an effective option.
6. Commits to action
Makes decisions within a reasonable time.
7. Involves others
Includes others in the decision-making process as warranted to obtain good
information, make the most appropriate decisions, and ensure buy-in and
understanding of the resulting decisions.
Collaboration 1. Clarifies the current situation
Explores all parties’ needs, concerns, and initial positions, including own.
2. Identifies points of agreement/disagreement
Builds common ground by highlighting areas of agreement; focuses efforts by
pointing out areas of disagreement.
3. Keeps discussion issue oriented
Manages the interpersonal process to stay focused on the task; constructively

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addresses emotions and conflict.
4. Develops others’ and own ideas
Engages in mutual problem solving by brainstorming alternative positions or
approaches and evaluating them openly and fairly.
5. Builds support for preferred alternatives
Builds value of preferred alternatives by relating them to the other party’s needs;
responds to objections by emphasizing value; exposes problems with undesirable
alternatives.
6. Facilitates agreement
Seeks a win-win solution through a give-and-take process that recognizes each
party’s core needs.
Communication and
Interpersonal skills
1. Organizes the communication
Clarifies purpose and importance; stresses major points; follows a logical
sequence.
2. Maintains audience attention
Keeps the audience engaged through use of techniques such as analogies,
illustrations, humor, an appealing style, body language, and voice inflection.
3. Adjusts to the audience
Frames message in line with audience experience, background, and expectations;
uses terms, examples, and analogies that are meaningful to the audience. ƒ

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4. Ensures understanding
Seeks input from audience; checks understanding; presents message in different
ways to enhance understanding.
5. Adheres to accepted conventions
Uses syntax, pace, volume, diction, and mechanics appropriate to the media being
used.
6. Comprehends communication from others
Attends to messages from others; correctly interprets messages and responds
appropriately.
Initiative/Perseverance 1. Responds quickly
Takes immediate action when confronted with a problem or when made aware of
a situation.
2. Takes independent action
Implements new ideas or potential solutions without prompting; does not wait for
others to take action or to request action.
3. Goes above and beyond
Takes action that goes beyond job requirements in order to achieve objectives.
Delivering results 1. Develops direction
Ensures that the purpose and importance of the team are clarified (e.g., team has a
clear charter or mission statement); guides the setting of specific and measurable

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team goals and objectives.
2. Develops structure
Helps to clarify roles and responsibilities of team members; helps ensure that
necessary steering, review, or support functions are in place.
3. Facilitates goal accomplishment
Makes procedural or process suggestions for achieving team goals or performing
team functions; provides necessary resources or helps to remove obstacles to team
accomplishments.
4. Involves others
Listens to and fully involves others in team decisions and actions; values and uses
individual differences and talents.
5. Models commitment
Adheres to the team’s expectations and guidelines; fulfills team responsibilities;
demonstrates personal commitment to the team.
 RANKING SCALE
SKILLS DEFINITION Partially
Performing
Performing Exceeding
Collaboration RESPECT: Treats Does not treat all Consistently, in Is a role model for

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Performing
all people with
dignity, respect and
fairness. Resolves
interpersonal
conflicts
constructively.
Shares time, energy
and knowledge
with others to
ensure they can
succeed.
INCLUSIVENESS:
Demonstrates
awareness and
respect of cultural
and individual
values. Appreciates
and leverages the
people with
dignity, respect,
and fairness.
Avoids conflict, or
engages in conflict
in a way that is
unproductive.
Misses
opportunities to
share time,
resources and
knowledge with
others.
Seldom promotes
awareness and
all cases, treats
everyone, with
dignity, respect
and fairness; is
very easy to
approach and
helpful
Resolves
interpersonal
conflicts
constructively
and
professionally;
seldom requires
outside
assistance.
consistently treating
all people with
dignity, respect, and
fairness; inspires and
ensures that others
do so as well,
holding them
accountable if they
do not.
Consistently, in all
cases, resolves
interpersonal conflict
constructively;
utilizes conflict as an
opportunity rather
than a problem.

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Performing
strengths of others
to accomplish
goals, regardless of
background.
Listens to ideas
from others, even
when different
from own. Is
careful to ensure all
sides are heard
before reaching a
conclusion.
respect of cultural
and individual
values and
differences;
overlooks
opportunities to
leverage the
strengths of others.
Does not show
interest in
listening to ideas
from others; has
difficulty
respecting ideas
when different
from own; tends to
reach conclusions
Enthusiastically
spends time
with others to
help them and
the team
succeed.
Promotes
awareness and
respect of
cultural and
individual
values and
differences;
leverages the
strengths of
others to
accomplish
Anticipates and acts
upon opportunities
for helping others
succeed; consistently
and enthusiastically
shares time,
resources and
knowledge with
others.
cases, promotes
awareness and
respect of cultural
and individual values
and differences;
proactively seeks out
others from a variety

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Performing
before listening to
all sides.
Does not value the
importance of
teamwork; has
difficulty
resolving team
conflicts; neglects
the importance of
respect for all
when interacting
with the team.
goals,
regardless of
background.
Listens to and
carefully
considers ideas
from others,
even when
different from
own; ensures
all sides are
heard before
reaching a
conclusion.
Encourages
teamwork
of backgrounds to
assist in
accomplishing goals.
Actively solicits and
encourages ideas
from a wide variety
of individuals; is
always careful to
ensure every side is
heard and considered
before reaching a
conclusion; lets
others know they’ve
been heard and are
valued.
Visibly and

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Performing
among direct
reports;
facilitates
resolution of
team conflicts;
promotes
respect among
all team
members.
proactively
encourages
teamwork among
direct reports;
consistently
facilitates the
resolution of team
conflicts in a way
that is mutually
agreeable; promotes
respect and
recognizes
contributions from
all team members.
Delivering Results PRODUCTIVITY:
Strives to
consistently
Is inconsistent in
completing tasks
and goals;
Achieves
excellence in
all tasks and
Coaches team on
best practices in
achieving and

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Performing
achieve excellence
in all tasks and
goals. Maintains
focus and
perseveres in the
face of obstacles.
Uses time
efficiently and
responds quickly
and constructively
when confronted
with challenges.
Prioritizes tasks
based on
importance.
PERSONAL
GROWTH:
Ensures job
demonstrates little
desire for
excellence in
work.
Struggles to
maintain focus,
perseverance, and
resilience in the
face of obstacles -
allows roadblocks
to cease progress.
Struggles to use
time efficiently; is
often slow to
respond; becomes
distracted or
goals.
Maintains focus
and perseveres,
even in the face
of obstacles
Uses time
efficiently;
adapts plans
when changes
occur.
Prioritizes tasks
based on
importance.
Delegates
appropriately.
maintaining
excellence in all
tasks and goals.
cases, maintains
focus and perseveres
in the face of
obstacles; inspires
others to do the
same.
Always uses time
efficiently and
responds quickly and
constructively when
confronted with
challenges. Adjusts

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Performing
knowledge and
skills are current
and valuable.
Receptive to
feedback.
unable to complete
tasks when
confronted with
challenges. Is slow
to adjust priorities.
Ineffective in
delegating
assignments.
Does not actively
seek to develop
job knowledge and
skills; misses key
opportunities for
personal
development or
developing others.
Actively
pursues
professional
development
and growth for
self and team.
Is receptive to
and implements
suggestions for
improvement.
Solicits
feedback.
Actively
identifies ways
to improve.
Holds direct
quickly to changing
priorities. Carefully
plans the delegation
of assignments,
based on skill,
developmental needs
and urgency.
Inspires others to
ensure job
knowledge and skills
are current and
valuable; provides
others with
experiences and
opportunities for
development. Makes
staff development a

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Performing
Criticizes or
ignores feedback
from others;
struggles with
accepting
developmental
feedback.
Does not hold
others accountable
for providing
timely and quality
results; provides
inadequate or little
guidance to others
on how to
maintain focus and
overcome
reports
accountable for
producing
quality, timely
results; helps
others maintain
focus and
overcome
obstacles.
Provides
performance
feedback that
facilitates
development
priority.
Actively solicits
feedback from others
and works to
implement
suggestions. Utilizes
feedback to improve
leadership
effectiveness.
Leads a high
performing team that
far exceeds
expectations. Shares
best practices for
maintaining focus
and overcoming

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Performing
obstacles.
Struggles to
provide
constructive
performance
feedback.
obstacles.
cases, provides and
instructs others on
how to give
constructive
performance
feedback that
facilitates
professional
development
Communication and
Interpersonal skills
Effectively
transfers thoughts
and expresses ideas
orally or verbally in
individual or group
situations.
At times does not
provide regular,
consistent, or
meaningful
information to
others; requires
Provides
regular,
consistent, and
meaningful
information to
others; ensures
Proactively gives
regular, consistent,
and meaningful
communication
throughout
organization; ensures

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Performing
frequent
prompting and
follow-up.
Does not listen
carefully; seldom
ensures message is
understood.
Does not
consistently
communicate in a
clear and concise
manner; does not
use proper
grammar,
pronunciation, or
tone; is difficult to
appropriate
individuals are
informed.
Listens
carefully to
others, asks
questions for
clarification,
and ensures
message is
understood.
Communicates
in a clear and
concise manner
using
appropriate
important matters are
shared with all
appropriate
individuals.
Consistently listens
to others with care
and interest; asks
questions for
clarification and
ensures the message
is understood.
Consistently
communicates in a
clear and concise
manner; utilizes
proper grammar,

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Performing
understand.
Struggles with
demonstrating
professionalism
through body
language,
including poor
eye-contact and
improper posture.
Does not tailor
communication
style to the needs
of the audience;
shows little
appreciation for
importance.
grammar,
pronunciation
and tone;
conveys
message using
appropriate
method of
communication
(email, phone,
in person).
Demonstrates
an ability to
influence others
by modeling
appropriate
body language
and nonverbal
pronunciation, and
tone to enhance
understanding;
consistently conveys
message using
appropriate method
of communication
(email, phone, in
person).
Takes special care to
always demonstrate
professionalism by
modeling appropriate
body language and
nonverbal
communication.

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Performing
Seldom
encourages direct
reports to
communicate
consistently,
clearly or
professionally.
communication.
Tailors
communication
style to the
needs of each
situation and
audience
Encourages
direct reports to
communicate
consistently,
clearly and
professionally.
cases, tailors
communication style
to the needs of the
audience; often
follows up to ensure
message is
understood.
Teaches direct
reports best practices
in delivering
consistent, clear and
professional
communication;
provides coaching
and guidance as
needed.

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Performing
Initiative/Perseverance Taking prompt
action to
accomplish
objectives; taking
action to achieve
goals beyond what
is required; being
proactive.
Infrequently seeks
ways to improve
outcomes.
Seldom takes
responsibility for
or provides
leadership in
projects/initiatives.
Often waits for
direction to initiate
action on projects.
Shows little
enthusiasm for
seeking or
Actively seeks
out ways on
own to improve
outcomes,
processes or
measurements.
Takes
responsibility
and provides
leadership on
projects or
initiatives
Takes action on
projects without
being directed
cases, seeks out
ways on own to
make improvements
to outcomes,
processes and/or
measurements.
Collaborates with
external units to
create and develop
opportunities for
improvement
cases, takes
responsibility and
provides leadership

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Performing
accepting
additional
responsibilities,
inside or outside
the context of
one’s job
description.
Rarely encourages
or identifies staff
development
opportunities.
to do so, and
looks for
opportunities to
move projects
along.
Enthusiastically
seeks and
accepts
additional
responsibilities,
both in the
context of the
job and outside
immediate job
responsibilities.
Encourages
on projects or
initiatives and brings
projects to a
successful
conclusion.
Always advances
projects by
identifying and
recommending
internal /external
resources when
available resources
are insufficient.
Recognizes
external/internal
risks and develops
projects to address

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Performing
staff to identify
and address
process
improvements,
participate in
projects and on
committees
when
appropriate.
issues. Advocates for
change when needed.
Is a role model for
seeking and
accepting additional
responsibilities.
Inspires others to
contribute above and
beyond the context
of the job, for the
good of the
organization.
Identifies and/or
provides
opportunities for
staff to assume

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Performing
leadership roles on
projects and/or
committees.
Problem Solving Skills Considers multiple
sides of an issue.
Weighs
consequences
before making final
decision. Makes
informed decisions
based on available
information.
Recognizes issues,
and determines
actions needed to
advance the
Seldom breaks
down problems
into their parts, or
examines root
causes. Seldom
considers
consequences
before making
final decision.
At times makes
decisions that
overlook
Breaks down
problems into
fundamental
parts. Identifies
root causes and
addresses
problems in
ways that lead
to innovative
solutions.
Consistently, in
all cases, makes
Generates
innovative, elegant
solutions that are
aligned with the
company’s mission
and vision. Sees
beyond the
immediate solution
to potential process
improvements.
cases, makes

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Performing
decision making
process. Follows up
as necessary.
important
available
information.
Fails at times to
recognize issues
that require a
solution;
overlooks actions
needed to advance
the decision
making process.
Becomes
discouraged by
ambiguous
situations. Does
not always adjust
informed
decisions based
on available
and hard to find
information.
Utilizes
information that
is relevant,
current and
clear.
Recognizes
typical as well
as complex and
unusual issues,
and actions
needed to
advance the
informed and well
thought out
decisions, based on
all available and
obscure information.
Always utilizes
information that is
relevant, current and
clear – and which
leads to creative
solutions.
Even in the most
difficult situations,
recognizes issues
and determines
whether action is
needed; takes charge

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Performing
approach to
achieve results.
Overlooks
opportunities to
assist employees
with solving
problems. Does
not recognize
others for
successful
problem solving.
decision
making
process.
Recommends
possible
solutions.
Follows up to
ensure
resolution.
Creates new
ideas and
processes
despite initial
ambiguity of
the situation;
modifies
approach to
of a group when
necessary and makes
decisions in a timely
manner.
cases, creates new
ideas and processes
despite initial
ambiguity of the
situation. Empowers
and inspires others to
find solutions in a
timely manner
Often gives staff
opportunities to
apply and strengthen
problem solving

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Performing
achieve results
in changing
situations.
Assists
employees in
diagnosing
problems and
recognizing
issues. Takes
time to help
employees
identify critical
connections,
consequences
and
alternatives.
Recognizes
skills. Challenges
staff with
opportunities.
Establishes a culture
that embraces
problem solving for
personal growth

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Performing
successful
adaptations
Before anything else, the first thing that needs to be done is job analysis so that they have clearly
defined JD’s and Job specifications for each job. Next they need to begin thinking about
implementing a performance management software system to improve the efficiency of their
performance management system. And before that they need to conduct a salary survey to make
sure their pay structure is market competitive. In addition to getting these procedures done, some
of the reinforcement schedules Artistic Milliners can follow to improve their performance
evaluation system include:
1.3.1 Developmental Feedback - In this type of feedback, line managers keep a check on
employee’s performance, scrutinize their work, provide necessary response on specific
actions and also keep a check on their yearly goals and identify training and development
needs to help them achieve their targets.
1.3.2 Documental Feedback - Unlike developmental feedback, the documental feedback is
given after fixed time interval. The main purpose in documental feedback is to provide

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promotion and succession to employees as per their performance. The time interval
followed is standardized at Artistic Milliners and the rewards and ratings are also
formally standardized and uniform. This feedback helps employees improve their work
patterns and perform better.
1.3.3 Individual Performance Factor IPF - The yearly bonuses & rewards are awarded to
employees based on performance. Individual performance factor plays a crucial role in instilling
motivation in employees and driving them to perform their best.
1.3.4 Professional Development Planning - Performance and Development Planning (PDP) is
an integral part of employee development. The process supports employees in identifying
weaknesses, developing areas of weakness and delivering results. It also helps groom employees
for future roles.
My Goals
My Strategy
My CompetenciesMy Environment
What’s Next?

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1.3.5 Ongoing Commitment - PDP provides a continual process that allows for a thorough
evaluation of performance of each individual working for the company. It's an approach designed
to encourage clarity and transparency throughout the year. This is an on-going dialogue between
an employee and their manager, which is all about listening, sharing & accepting feedback and
taking responsibility for the next step in their career.
The main objectives that lay the foundation of a strong performance management system
include:
1 Setting employees’ goals
2 Aligning goals with business objectives
3 Identifying Training & Development needs
4 Determining merit pay for performance
5 Fair evaluation of employee performance
This point is continued in detail in the recommendations section of this report.
 ORGANIZATIONAL CAPABILITIES
Artistic Milliners has gained its reputation as one of the most desirable textile companies to work
for by providing a work environment where individuals can excel professionally. The company
offers vast range of roles, disciplines, functions and international locations to satisfy the most

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determined minds. As the company’s business evolves, new possibilities arise. Artistic Milliners
is governed by its core values. They shape the culture and define the character of the
organization, forming the foundation on which its employees perform and make decisions.
Beyond a shadow of doubt, the organization has the capability and the resources to become the
leading textile industry in Pakistan if they focus on long term thinking, integrity, mutual respect,
pragmatism and openness to diversity and include them in their culture. Ambitious vision,
charismatic leadership, transparency and equity are some traits that can transform the culture of
the organization while promoting employee job satisfaction and organizational commitment.
 ENVIRONMENT
1. External Environment
From pioneering the building of first LEED factory in Pakistan to standardizing their
operations/processes via ISO 14001, Artistic Milliners underscores environmental responsibility
as one of the decisive factor of its business model. LEED building consumes 31% less energy,
50% less water and diverts 95% of waste away from landfills compared to conventional building.
In terms of compensation, the company offers market compatible salary to management grade
employees, however, labor-grade employees in many job classes are not being paid market
compatible compensation.

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As I already discussed, the company needs to conduct a salary survey first and then modify their
salary structure accordingly. Needless to mention, they need to modify job classes and pay
grades in order to design a salary structure that is fair and market competitive. Next, they need to
link pay with performance so that everyone knows what is expected of them. Again, this point is
discussed in detail in the recommendations section of this report.
 Internal Environment
Artistic Milliners embraces diversity in their workforce. The workforce is composed of people
from different religions and areas of Pakistan. As I already discussed, HSE demands serious
attention because a manufacturing company of this much can’t afford to overlook this single
important aspect of employee safety and wellness.
The company should realize that people are its important asset and that they are likely to sustain
their performance if they are satisfied with their jobs and company’s environment and so the
management should lays great focus on fitness of heart, mind and spirit of employees by creating
a vitalizing work experience and environment for its people. The primary aim is to energize them
and motivate them to put their best foot forward – a Win-Win situation for everyone.
BOTTOM LINE

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Looking at all the factors individually i.e. organizational characteristics, environment,
organizational capabilities and organizational strategies; they do not offer a strategic fit with the
organization’s performance management system. I have proposed my recommendations for each
of these in in-depth detail in the recommendations section of this report.
JD’S OF KEY POSITIONS
The JD’s for key positions at Artistic Milliners are outlined below:
1. HR MANAGER
The HR Manager is both a strategic and hands-on role that provides full cycle Human Resources
support to our initiatives around flexible fulfillment centers. The role is critical in executing our
people initiatives, providing great internal customer support, and driving HR functional
excellence and process improvement.
Successful candidates will demonstrate:
 The ability to understand business goals and recommend new approaches, policies and
procedures to effect continual improvements in business objectives, productivity and
development of HR within the company
 A true hands-on approach as well as the ability to successfully monitor the "pulse" of the
employees to ensure a high level of employee engagement

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 Experience with rapid and complex changing work environment
 Passion for innovative HR solutions and process improvement; Demonstrated experience
driving processes improvements and specific skills in Kaizen methodologies preferred
 Strong project management skills; ability to lead projects at a network level to influence
and obtain buy-in, and then drive execution and achievement of the right results
 Success in creating and driving effective employee relations, retention and reward
programs
 The ability to be comfortable with high volume workload and not be afraid to "roll up
your sleeves"
 A strong solutions focus and be comfortable working in an environment which demands
strong deliverables along with the ability to identify problems and drive appropriate
solutions
 Strong internal and external customer service focus
 The ability to manage multiple priorities simultaneously - orientated on results
 Excellent organizational and interpersonal skills
 Must be willing to work a flexible schedule that includes nights, weekends, and holidays
Basic Qualifications
 A completed Bachelor’s Degree from an accredited university
 Resume that shows steady progression in HR Management for the last 5+ years

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 Prior experience leading, coaching, and mentoring direct reports.
 5+ years experience in Fortune 500 company(s).
 Prior experience supporting hourly employee client groups (distribution, manufacturing,
or call center environments).
Preferred Qualifications
 Advanced degree from a top tier graduate school. (MBA or Masters in HRM preferred)
 Strong evidence of stretch assignments that are evidence of superior performance in
previous roles.
2. MARKETING MANAGER
The marketing manager manages the day to day marketing activities of the organization and long
term marketing strategy for the company.
Duties of the Marketing Manager include:
 Managing all marketing for the company and activities within the marketing department.
 Developing the marketing strategy for the company in line with company objectives.
 Coordinating marketing campaigns with sales activities.
 Overseeing the company’s marketing budget.
 Creation and publication of all marketing material in line with marketing plans.

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 Planning and implementing promotional campaigns.
 Manage and improve lead generation campaigns, measuring results.
 Overall responsibility for brand management and corporate identity
 Preparing online and print marketing campaigns.
 Monitor and report on effectiveness of marketing communications.
 Creating a wide range of different marketing materials.
 Working closely with design agencies and assisting with new product launches.
 Maintain effective internal communications to ensure that all relevant company functions
are kept informed of marketing objectives.
 Analyzing potential strategic partner relationships for company marketing.
Requirements of the role:
 Master’s degree in Marketing.
 Qualified chartered marketer.
 Strong analytical and project management skills.
 Confident and dynamic personality.
 Strong creative outlook.
3. Accounts & Finance Manager

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Accounts and Finance manager responsibilities include establishing financial status by
developing and implementing systems for collecting, analyzing, verifying and reporting
information. We are also looking for someone to work closely with our financial
management team.
Duties of the Accounts and Finance Manager include:
 Monitor the day-to-day financial operations within the company, such as payroll,
invoicing, and other transactions.
 Oversee financial department employees, including financial assistants and accountants.
 Contract outside services for tax preparation, auditing, banking, investments, and other
financial needs as necessary.
 Track the company's financial status and performance to identify areas for potential
improvement.
 Seek out methods for minimizing financial risk to the company.
 Research and analyze financial reports and market trends.
 Provide insightful information and expectations to senior executives to aid in long-term
and short-term decision making.
 Review financial data and prepare monthly and annual reports.

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 Present financial reports to board members, stakeholders, executives, and clients in
formal meetings.
 Stay up to date with technological advances and accounting software to be used for
financial purposes.
 Establish and maintain financial policies and procedures for the company.
 Understand and adhere to financial regulations and legislation.
Finance Manager Skills and Qualifications:
Advanced degree in accounting, business, economics, finance, or a related field; several years of
experience in a finance role; superior mathematical skills; leadership skills and experience;
employee management; understanding of data privacy standards; solid communication skills,
both written and verbal; public speaking skills; deep understanding of business principles and
practices; superior attention to detail; organisational skills; planning skills; research skills;
analytical skills; critical thinking skills; problem-solving skills; computer skills; multi-tasking
abilities; integrity, honesty.

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3. ROOT CAUSE ANALYSIS
To identify the root cause of the problems in Artistic Milliners PMS, I have used Fish Bone
(Cause and Effect Diagram).
Unclear or Vague
Performance
Management Strategy
Internal Disparity Lack of Structure
Not reviewed periodically
Subject to biases
Performed by HR
No formal
(documented) JDs
Unstructured process
No formal performance
management philosophy
Compensation system is
not strategically aligned
with performance
Ineffective Performance
Appraisal System
Job responsibilities are not
aligned with respect to job
size
Career path not
clearly outlined and
communicated
Inconsistent/improper job evaluation
procedure
Inconsistent Job Evaluation
Process
Disconnects in Compensation
Expectations
No job sizing

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To effectively execute performance management processes, it is of utmost importance to have a
clear and realistic strategy in place that is communicated effectively to everyone in the company.
Getting a buy-in across the company is crucial in order to ensure success. Transparency is of
essence here. When employees feel that a set of indicators or a review system is handed down
without any communication, without any understand what the process is about, they are far less
likely to be engaged with the process. It is essential that everyone in the company understands
the bigger picture and the relevancy of that picture with their jobs and performance. This way a
sense of buy-in, inclusivity and trust is created.
• Internal Disparity - Inequities or disparities exist in organizations when the job
responsibilities of employees are not distributed as per job size. When job responsibilities
are not clearly outlined, it impacts the overall job evaluation procedures & performance
related compensation decisions. This in turn leads to organization misalignment.
Organizational alignment occurs when; there are appropriate, justified and fair
differences in pay between top executives, senior, middle and junior level managers and
other employees in different grades as well as employees in the same pay grade with
different levels of responsibility, knowledge, skills and performance.
• Inconsistent/Improper Job Evaluation Procedures - Managers in all organizations
have the expectation that they will be able to attract, recruit and retain the best people;
whereas employees in all organizations expect to be treated fairly. At Artistic Milliners

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job evaluations are conducted internally by the HR department. The HR department is
unaware of job sizing and its importance in building a fair, documented and transparent
performance management system and compensation structure. Because of inconsistent
and improper job evaluation procedures followed, the issue of internal disparity is getting
worse.
Needless to mention, job evaluation differentiates among the size of jobs within a
workplace by developing a measuring scale for each factor, and weighting these factors
according to their importance to the organization. Since there is lack of awareness in the
company about job evaluation and job sizing, managers are not aware of the procedures
that are followed to submit requests for job evaluation (especially when job roles are
modified). Additionally, there are no job evaluation request forms available. Let alone
job evaluations, they don’t even have formally documented JDs for jobs.
• Disconnects in Compensation Expectations - While some employees are naturally
inclined to believe they’re undervalued or underpaid, HR can still make the compensation
system transparent by linking performance to pay. However, the task is pretty
challenging. This is because the performance evaluation system used at Artistic Milliners
is obsolete. They are still using excel-based system for performance evaluation. The
procedure that is being followed is not only vague but is also poorly communicated.

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And since the company does not have proper job analysis and job evaluations practices in
place, employees are unsure about KPI’s of their positions and resulting pay increases for
achieving targets.
• Lack of Structure - The biggest flaw in Artistic Milliners performance management
system is that they do not have a formally documented philosophy that could explain the
“why” behind performance standards and create a framework for consistency.
The concept of merit pay or pay for performance has been around for as long as people
have been working for pay and has long been used as a mechanism for calculating salary
raises based on performance. Higher levels of employee performance should result in
higher pay levels. Employees, in turn, appreciate the recognition and increased pay
provided to them by merit plans. The performance management system followed by the
company has become outdated and needs redesigning. The current processes for
evaluating the performance of their people and then training them to build capacity,
promoting them and paying them accordingly is increasingly misaligned. Flaws in
Artistic Milliners performance management system negatively impact the overall
compensation structure of the organization.
4. ANALYSIS AND RECOMMENDATIONS

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As discussed in previous sections, the biggest flaw in Artistic Milliners performance
management system is unclear or vague performance management strategy. The system lacks
structure, which is the primary reason why there are inconsistencies in performance evaluation
process. Unfortunately, Artistic Milliners does not have a formally documented Performance
Management Process, nevertheless, based on my observations (gathered during a meeting for
another HR related project), I’m outlining the flowchart of PMP being followed at Artistic
Milliners.
180° performance evaluation method is used to evaluate employee performance at Artistic
Milliners. The process involves the appraisee (the person being appraised) completing a self-
evaluation form, which is then discussed and agreed with the appraiser (the person conducting
evaluation) during the appraisal review meeting. Once the information is agreed upon by both
the appraiser and appraisee, the appraisal is signed off.
Performance Management Process at
Artistic Milliners
(180° Evaluation)
Self-Evaluation Form
Filled by Appraisee
Appraisal Review Meeting
1. Self-Evaluated Form
Performance Standards

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Before proposing remedial measures for performance management process improvement, I
would like to discuss a few things that I believe are extremely important. First off, Artistic
Milliners does not have a proper job analysis done for jobs, hence, they there are no formally
documented JD’s and JS’s for jobs, which means, there are no formally documented job-related
KPI’s as well. As job-related KPI’s are not formally defined, performance standards are also
unclear. When performance standards and expectations are unclear, employees have very little or
vague idea of what’s expected of them. This lack of structure not only affects individual
performance of employees but also organizational performance.
Keeping this very point in mind, I have designed a comprehensive performance management
process that interlinks key functions of HR (Artistic Milliners does not have formally
documented processes for any HR function let alone Performance Management Process),
because I believe unless they start from the very first step, i.e. Job Analysis, they won’t be able
to improve their Performance Management Process. Needless to say, Performance Management
is not an isolated process; it is connected with almost all functions of HR, including succession
planning, learning and development, compensation and benefits, and so on and so forth.
My proposed Performance Management Process is as follows:

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Performance Management
Job Analysis Recruitment &
Onboarding
Compensation &
Benefits
Performance
Management Process
&Appraisals
Succession
Planning
Learning &
Development
Job Descriptions
Setting KPIs and
Accountabilities
Attracting Top
Talent
Documentation,
Communication &
Implementation
Performance
Planning
1. Establish Desired
Results/Performance
Standards
2. Goal Setting
Performance
Monitoring &
Coaching
1. Provide ongoing
feedback
2. Provide Coaching,
mentoring & training
as needed
Performance
Review & Dialogue
1. Evaluate
Performance against
set goals
2. Feedback &
Improvement Plan
3. Recognize &
Reward good
performance
4. Document
Appraisal
Skill Gaps
Analysis
Coaching &
Mentoring
Training &
Development
Identify Hi-Po’s
Develop Hi-Po’sSelecting the best
Talent (Job Fit,
Organizational fit)
Job Specifications
Compensation
Philosophy
Job Evaluation/Job
Sizing
Salary Structure
(Salary Survey)
Reward Great
Performance
(Performance
related Bonuses &
Raises)
Onboarding

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Recommendation #1: Adopt a Performance Management Philosophy
One of the first things to be done is to establish a Performance Management philosophy that
would provide the appropriate framework and guidelines for evaluating performance.
It is important for the philosophy to be reviewed periodically and modified based on how well it
is working and current factors affecting the business. Furthermore, it should be able to:
• Identify the company’s performance related remuneration strategies.
• Identify how the strategy supports the organization’s business strategy, competitive
outlook, operating objectives and human capital needs.
• Motivate employees to perform at the best of their competencies, abilities and skill sets.
• Retain key talent and reward high-performing employees.
Recommendation #2: Hire an external consultant and get job analysis and job evaluation
done.
Based on job evaluation (job sizing) endorse an externally informed, formal classification system
with a corresponding salary structure. This is the most important step since the process of setting
performance standards (job-related KPI’s) begins with job analysis.
Job Analysis
JD’s & JS’s Job related KPI’s
Job Evaluation &
Job Sizing
Compensation
Structure

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Each job’s relative value, and hence its location in the pay structure, is determined by the job
size (skills, problem solving skills, accountability) assigned to it. Once the system is finalized,
jobs are evaluated to derive a final hierarchy of job sizes which then serve as the foundation for
the base pay structure.
During the period of job evaluation and afterwards, there is a need to communicate regularly
with employees about the process and to make available documentation that explains how the
organization’s jobs were evaluated. These measures aid in promoting a sense that the process is
fair and equitable, especially in relation to their own jobs.
Furthermore, managers should be trained at Artistic Milliners on the process of requesting
position evaluations when new positions are being created or when an existing position is
changed significantly.
Recommendation #3: Endorse modifications to current performance management process
and resulting pay raises to address performance management issues consistent with the
compensation philosophy, by adopting “pay for performance” approach going forward.
Performance management at Artistic Milliners should be a continuous process that begins with
the setting of challenging/SMART objectives at the start of each review period supported by
open, direct and constructive performance management dialogue throughout the review period -
till the year end. By encouraging appropriate challenge and developmental support, Artistic
Milliners will be able to maximize the potential and performance of its people and the
organization as a whole.
The main objectives that should lay the foundation of Artistic Milliners performance
management process are summarized below:

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 Setting SMART Goals
 Provide On-going Feedback & Support
 Reward Great Performance/ Determining Increments and Promotions as per Performance
 Unbiased Evaluation of Employee Performance
Recommendation # 4: Ditch Outdated Excel Based Performance Management Systems and
Go for Automation. As I discussed in previous sections, Artistic Milliners still follows excel-
based performance management system that needs to be replaced. There are tremendous benefits
of automation such as cost savings, increased efficiency, and enhanced productivity (of HR
people).
To keep pace with today’s swift and fast-paced business environment, the performance
management department of an organization needs to be flexible and responsive enough to be able
to constantly update its knowledge and skill base in order to play an active role in the growth and
development of the organization as a whole.
Recommendation # 5: Promote a performance driven culture. It goes without saying that
successful performance management is not just about changing the way performance review is
done; rather, performance management is about creating and promoting a culture where
performance reigns supreme. Additionally, performance management process should be aimed
atimproving the overall organizational performance by managing the performances of teams and
individuals.

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5. ACTION PLAN
Performance Management plays an integral role in the successful delivery of strategic objectives.
Attracting and retaining the most capable employees on a global basis should be central to
Artistic Milliners Performance Management strategy. The cornerstone of this is the concept of
pay for performance, with due consideration of major Hr factors that are linked directly with
performance management such as compensation.
It goes without saying that organizations that have been successful in creating alignment are
those that have a clearly articulated compensation strategy - one that maps to and supports
business strategy and HR strategy while still remaining dynamic.
As we seek to polish the performance management structure of Artistic Milliners by aligning
performance to evolving internal and external expectations, reviewing procedures and processes
followed in this report, I propose the following action plan (based on my recommendations).

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S.No. Recommendation Explanation Schedule
(estimated
duration)
Stakeholders Course of Action to
Follow
1. Adopt a Performance Management
Philosophy
Our compensation
philosophy seeks to
ensure our performance
management structure
is: (1) fair and
transparent, (2) aligned
with best practices, and
(3) rewards
performance
1 month
April –May
2018
HR department,
representative
sample of
employees and
department heads
1. Identify the company’s
performance management
strategies.
2. Identify how the
strategy support the
organization’s business
strategy, competitive outlook,
operating objectives and
human capital needs.
3. Define how the
organization plans to pay and
reward competitively, based
on business conditions,

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(estimated
duration)
Follow
competition and ability to
pay.
2. Hire an external consultant and get
job analysis and job evaluation
done. Based on job evaluation (job
sizing) endorse an externally
informed, formal classification
system with a corresponding salary
structure.
Job evaluation
differentiates among
the size of jobs within
the organization. When
job evaluation and
survey data are used
jointly, internal and
external equity are
mutually reinforced.
2 months
May –
August
2018)
Consultant, HR
department, Line
Managers
1. The relative value of jobs
will be measured, and hence
its location in the pay
structure, is determined by
the job size (skills, problem
solving skills, accountability)
assigned to it.
2. Once the system is
finalized, jobs are evaluated
to derive a final hierarchy of
job sizes which then serve as
the foundation for the base

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(estimated
duration)
Follow
pay structure.
3. During the period of job
evaluation and afterwards,
employees will be
communicated about the
process and documentation
will be made available that
explains how the
organization’s jobs were
evaluated.
3. Endorse modifications to current
performance management process
and resulting pay raises to address
performance management issues
In addition to being fair
and transparent, the
performance
management structure
3-4 months
August 2018
– November
2018
HR department 1. Address challenges to job
satisfaction and engagement
caused by performance
management issues.

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(estimated
duration)
Follow
consistent with the compensation
philosophy, by adopting “pay for
performance” approach going
forward
should promote a
performance based
culture at Artistic
Milliners
2. Designing of fair,
competitive, transparent
structure that is in line with
the compensation structure
4. Ditch Outdated Excel Based
Performance Management Systems
and Go for Automation
Implement a
performance
management module to
ensure efficiency, save
costs and improve
productivity by saving
time that is wasted in
manual handling of
tons of data
3 months
November –
February
2018
HR, IT, Consultant
1. Gap Analysis - Identifying
gaps in the organization
2. Package Evaluation -
Selecting the best from
available modules vendor
packages
3. Team Training – Training

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(estimated
duration)
Follow
the team on how to manage
and use the module
4. Testing – Testing the
module before the final
launch
5. Launch - The key
deliverable here is that the
modules are launched as per
schedule
5. Promote a Performance Driven
Culture
When organizations
make it a point to focus
on employee
performance, there is
On-Going
Process
HR
Align processes and systems
with strategic vision and
mission of the company

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(estimated
duration)
Follow
an air of motivation in
the office environment
that usually results in
great numbers.

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6. CONCLUSION
Artistic Milliners has a progressive outlook and the good news is the company is beginning to
realize that they need to have a progressive outlook if they want to sustain their edge in the
market. Once all the factors are aligned, they will contribute significantly toward enhanced
performance.
The company lacks in several areas of HRM including performance management, which is one
of the most important HR functions. Right from using obsolete system to not having a concrete
performance management guideline, the function seems to be one of the most overlooked HR
functions.
Artistic Milliners is looking to automate its performance management function in 2018 by
deploying a performance management module, which is expected to improve the efficiency and
effectiveness of their performance evaluation system, which is a positive sign. Nevertheless, only
automation is not going to work out for them. I have discussed in detail some other aspects of
performance management that are directly or indirectly related to performance management that
needs to be revised, tweaked and improved along with automation.
To conclude, top performers gravitate to employers that reward performance in a transparent
way. They want to be rewarded for their higher skill, extra efforts and out-sized results. They

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will not accept job offer if they think the organization’s philosophy is full of vague platitudes.
While on one hand, poor performers love environments where everyone is left in the dark and
treated the same - they don’t want their performance measured and evaluated too closely, star
performers always want their efforts to be seen and recognized and expect to be rewarded
accordingly.
Management at Artistic Milliners realizes that in today’s competitive environment, only those
organizations will succeed that are able to efficiently balance the goal of ensuring sustainability
of business environment with the traditional goal of maximizing the profitability of the
shareholders and they are taking all measures to ensure the company sustains its leading position
in the Textile sector.

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