performance management policy

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Performance Management Policy

Prepared by Khan Sarfaraz Ali

National Human Resource Specialist and

CEO, LIFE www.lifebangladesh.com


Performance Management (PM)

Performance Management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas. PM is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities.

Performance management originated as a broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in applications methods) for managing both behavior and results, two critical elements of what is known as performance. A formal definition of performance management, according to Daniels' is “a scientifically based, data-oriented management system”. PM consists of three primary elements - measurement, feedback and positive reinforcement.

As a part of Human Resource Development process introducing a Performance Management policy and procedure for KWASA is obvious that will apply regarding hiring, advancement, performance appraisal, discipline, and retirement. This performance management policy and procedure is internal to KWASA only, and in no way circumvent the civil service rules on advancement, performance appraisal, discipline, etc. It is only designed to make clear the job tasks and outputs performance criteria required between the employee and the supervisor within the KWASA organization. Job Descriptions A Performance Management System comprises three (3) basic parts. The first part is the job description. A job description is a basic HR management tool that helps to increase individual and organizational effectiveness. For each employee, a good job description helps the job holder to understand:

Their responsibilities and tasks

Their outputs

The importance of their responsibilities

How their position contributes to the mission, goals and objectives of the organization For the organization, good job descriptions contribute to organizational effectiveness by:

Ensuring that the work carried out by staff is aligned with the organization's mission

Helping management clearly identify the most appropriate employee for new responsibilities and realigning work loads

Job descriptions are also the foundation for most HR management activities particularly the Performance Management System where the job description and the Performance Review Report are used to monitor performance. While job descriptions establish the activities that need to get done in order to deliver the services of the organization, performance objectives define the qualitative and quantitative standards for each of the key activities. Employees at all levels in the

http://en.wikipedia.org/wiki/Aubrey_Daniels


organization should be able to clearly understand how their job activities and the level of their performance directly contribute to the success of the organization. Employee performance management provides an opportunity to build trust and foster constructive and productive working relationships, particularly between employees and their supervisors. A performance management process that encourages collaboration in setting performance objectives and evaluation results is more effective in motivating employees. Performance Appraisal Formal performance appraisal is governed by GoB civil service rules. The following discussion and process is internal to KWASA only. While most organizations require an annual performance review be done with all employees, effective people management is based on on-going feedback, coaching and support throughout the year. Supervisors are responsible for monitoring day-to-day performance and providing employees with timely and constructive feedback - both positive and negative. Monitoring day-to-day performance does not mean watching over every aspect of how the employee carries out assigned activities and tasks, and produces outputs. Supervisors should not micro-manage employee performance but instead should focus their attention on results achieved, as well as individual behaviors and team dynamics affecting the work environment. In most organizations supervisors are required to conduct a formal review with all of their employees, usually annually. The Performance Appraisal process will be integrated with local and/or national government civil service requirements. Performance Management Performance management is a process by which supervisors and employees work together to plan, monitor and review the employee’s work objectives and overall contribution to the organization. Its more than just an annual performance appraisal, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals. It involves the supervisor using an approved job description to sit down with the employee at the beginning of a work period or new job and developing a Performance Review Plan, which describes the tasks to be performed and the outputs required. Then at scheduled intervals or informal discussions the supervisor and the employee will review how well job requirements are being met. Performance Management involves four (4) activities: setting performance criteria, performance planning, ongoing coaching, and performance review. The objectives of the Performance Management System are:

To help achieve departmental objectives through staff

To help employees achieve better performance

To evaluate employee performance and improve communication between managers and staff on managing performance

To provide opportunities for development for staff


The Performance Management System has a one-year appraisal period over which the phases described are completed. The appraisal period starts from the employee's anniversary date and every year thereafter. The following timeline shows an overview of what tasks should be completed at each month.

Month 1 Create Performance Plan

Month 2 Identify critical elements for upcoming year

Identify developmental and training needs

Create a plan for monitoring performance and communicating throughout the year

Month 3

Month 4

Month 5

Month 6 Conduct Progress Review

Month 7 Check employee progress

Provide feedback on performance so far

Adjust critical elements if necessary

Month 8

Month 9

Month 10

Month 11

Month 12 Rate Performance

Discuss employee performance

Provide the employee with a summary rating

Explain grievance process if necessary

Performance Criteria is the information that provides the foundation for measuring performance competencies, expectations, and goals. It is derived mainly from the job description. Performance Planning is the discussion between a supervisor and employee to establish clear, specific performance goals and expectations at the beginning of the performance cycle. Performance Planning is the next step in the Performance Management process. It is a discussion between a supervisor and an employee to:

Outline the major tasks and outputs assigned to the position

Establish and agree upon performance goals and expectations

Clarify what the employee will be evaluated on

Set the stage for ongoing feedback and coaching throughout the year In the Performance Management process, the supervisor and employee will engage in a performance planning discussion at least once annually; ideally, performance planning should occur at any point in which performance goals and expectations change. For new employees, this discussion must occur within the employee’s first week on the job. It is important that the supervisor documents the agreed-upon goals and expectations in the Performance Review Plan and makes a copy for the employee. The Performance Review Plan, located in Appendix 1, is provided as the documentation tool for this activity. Job descriptions are written using broad responsibility statements to describe a job that could be held by several employees. Duties that are specific to and only performed by one individual may or may not be found in the broad responsibility statements in a job description. The Performance Management Plan allows a supervisor, in conjunction with the employee, to list duties that may be


specific to the individual position rather than using the broad responsibility statements. Any duties listed must, of course, be job-related and remain consistent with the broader statements of the job description. The Human Resources Department is available to consult with work units and supervisors on their specific needs and the use of this Policy. In addition, Human Resources can provide overview training on the Performance Management process as well as in-depth training on specific topics related to performance management. Coaching is an ongoing process of communication between the supervisor and the employee focused on improving current performance and building capabilities for the future. It involves informal conversation or notes, as well as more formal coaching meetings and written documentation. The actual performance review discussion is an extremely important component of the performance management process. It is the conversation between the supervisor and employee regarding:

Where performance exceeded, met, or fell below expectations

The learning and development needed and received

Goals that were set and achieved by the staff member

Feedback from others affected by the staff member’s performance

Future goals Information from the performance review is critical not just for performance improvement, but for other human resource decisions, including appropriate job assignments. In the Performance Management Process, it is a requirement that every staff member will receive, at minimum, an annual review on their anniversary hire date that will be discussed, documented, and submitted to Human Resources for the employee’s personnel file. A Performance Review Plan is in Appendix 1. The various parts give guidance on how supervisors and employees can work together to build the Performance Review Plan; that is a formal set of developmental goals with action steps and targeted completion dates, established at the beginning of the performance year. As we use the term here, development includes “training” (learning directed toward specific objectives such as following certain regulations or procedures or the application of an acquired skill) and “education” (learning directed at broader objectives such as becoming a more effective supervisor or better leader). Rating Scale A Rating Scale is provided in Appendix 2 for indicating the task and output performance attained. The rating scale has five (5) measures ranging from exceptional performance to unsatisfactory. Performance Improvement Plan (PIP) A Performance Improvement Plan is in Appendix 3 to use in planning developmental activities to improve Level 1 (Unsatisfactory Performance).


If at any time during the performance cycle an employee's performance becomes Level 1 (Unsatisfactory) in one or more critical elements, document the specific performance deficiencies on the performance plan and afford the employee an opportunity to demonstrate acceptable performance. Subsequently, complete a Performance Improvement Plan (PIP).

What the PIP Should Contain?

A description of the critical element in which performance is unsatisfactory and specific instances of Level 1 (Unsatisfactory) performance:

What the employee must do in order to demonstrate acceptable performance

Time period allowed for the opportunity to improve

Suggestions for improving performance

Offer of assistance to the employee to improve performance including training, if applicable

Statement of the possible consequences of failure to raise performance to an acceptable level during the opportunity period

The Human Resources Department will provide guidance and technical assistance to the supervisor throughout the duration of the PIP, including any subsequent performance-based actions. Instructions on how to complete the Performance Improvement Plan and the PIP form can be found in Appendix 3. Performance Management Policy The Khulna Water Supply and Sewerage Authority is committed to supporting its employees to achieve their job performance and career goals. Performance management in the form of regular constructive feedback and development plans, and facilitates the professional and career success of our staff to align their performance goals with the goals of the KWASA organization. The policy can be found below. The policy proposes an annual performance review cycle for employees consistent with GoB civil service rules. The process emphasizes establishing and reviewing job performance and career goals, and determining the resources and support needed to achieve those performance goals for each employee within each Department.

Policy Name Performance Management

Application/Scope: Applicable to all Khulna Water Supply and Sewerage Authority (KWASA) employees

Governing Regulations: Government of Bangladesh (GoB)

Approved (date):

Review (date):

Revised (date):


Approved by:

1. Purpose: 1.1 The performance review process is intended to provide an assessment of an employee's accomplishments over a one-year period

1.2 Assessment will consider the outcome of plans made and goals set at the time of the previous year’s evaluation

1.3 Plans for upcoming consecutive years should promote individual staff development and recognize departmental needs and resources

1.4 To ensure that KWASA staff are covered by a single integrated performance management process

1.5 To establish goals against which performance will be assessed

1.6 To document performance to determine progress toward job competency

2. Definitions: 2.1 Performance Management: the process of identifying, measuring, and improving the performance of staff

2.2 Performance Review: an element of Performance Management defined as the regular review and assessment of an individual's job performance against established criteria and organizational objectives, and providing feedback to the individual

2.3 Performance Criteria: expectations used to measure performance

3. Policy: 3.1 Performance Reviews shall be conducted annually and semi-annually or more often as needed

3.2 Formal annual and semi-annual Performance Review meetings are held with each employee to objectively and collaboratively review the employee's performance

3.3 Employees shall maintain satisfactory performance based on the tasks and outputs outlined in the job description

3.4 The annual performance review cycle is set by the civil service rules.

3.5 Employees' performance is assessed at a minimum on an annual and semi-annual basis through a Performance Review and compared to the performance standards for that employee's position


3.6 To begin the performance review cycle in accordance with civil service rules, the employee and supervisor complete a Performance Review Plan using the format provided in Appendix 1 and the Rating Scale in Appendix 2

3.7 The supervisor must ensure that the job description reflects the current tasks and outputs of the employee

3.8 The supervisor will conduct a formal, face-to-face meeting with the employee about the employee's job description and performance standards.

3.9 The supervisor and the employee are required to acknowledge receipt of the Performance Review by signing the Performance Review Plan and the employee will be provided a copy

3.10 The employee may make comments or respond to the review in the section provided on the Performance Review Report Plan

3.11 Annual Performance Review Plans must be submitted in accordance with the civil service rules

3.12 An employee who has one Performance Review that falls below expectations shall be required to meet with the Department Head to discuss a plan for correction and provide achievable targets for the next review period

3.13 An employee who has two or more Performance Reviews with documented performance which falls below expectations or whose performance is inadequate or unacceptable may have their job duties redistributed until performance has returned to satisfactory

3.14 Inadequate performance is documented in accordance with civil service rules and the employee is informed in writing of any area(s) which require improvement

3.15 The employee and supervisor shall complete a Performance Improvement Plan, Appendix 3, for all tasks/outputs which are deemed unsatisfactory


Appendix 1

Performance Review Plan Name:

Department:

Review period: From: To:

Part 1: Reviewing last year’s performance

General review: General review of the year

Setting objectives: Review progress against previous year’s objectives

Tasks and outputs: Review of progress against job description and common performance tasks and outputs

Personal development: Reviewing your personal and professional development

Part 2: Planning for the year ahead

Setting objectives: Setting objectives for the year ahead

Personal development: Setting personal and competency development goals for the year ahead

Part 1: Reviewing last year’s performance

Section 1: General review of the year

General review of the past year - what went well, any difficulties encountered

Section 2: Previous objectives – What did you accomplish?

Objectives agreed to for timeframe under review

Success measures Indicate whether objectives were exceeded, met, partially met or not met

Other key achievements/successes


Job Performance: Tasks and Outputs

Use the Rating Scale in Appendix 2 to mark performance for each task and output.

Section 3

Key technical/professional requirements of your job

Please list specific technical or professional requirements of the

job, and any comments; (place checkmark [] in the appropriate column under satisfactory or unsatisfactory)

Tasks

Outputs

Satisfactory Unsatisfactory

E EE ME IN U

Comments


Development Needs for Job Performance Tasks and Outputs

Section 3a:

Development needs for key technical/professional requirements of your job

Please list specific technical or professional requirements of the job, and any comments

Tasks/Outputs Needs Action Steps Implementation Date

Comments


Common Performance Tasks and Outputs Use the Rating Scale in Appendix 2 to mark performance for each task and output.

Section 4

Common performance criteria

All employees are responsible for demonstrating these

performance criteria (place checkmark [] in the appropriate column under satisfactory or unsatisfactory)

Tasks

Outputs

Satisfactory Unsatisfactory

E EE ME IN U

1. Teamwork Establishes and maintains respectful, cooperative, and productive working relationships with co-workers, team members, supervisors, and other members of the university community

2. Organizational Commitment

Demonstrates a productive work style that is compliant with university and department policies and procedures in support of established goals and objectives

3. Stakeholder Focus Demonstrates concern for satisfying the organizations external and/or internal stakeholders/customers

4. Diversity Commitment Seeks to recognize, understand, and respond effectively to similarities and differences in people and makes better decisions based on that understanding; recognizes and responds to the needs of various groups in the workplace and stakeholders/customers base


so as to improve working relationships, productivity, and stakeholder/customer satisfaction

5. Maintaining a Safe and Secure Work Environment

Committed to maintaining a safe, secure, and non-threatening work environment

Comments


Development Needs for Common Performance Tasks and Outputs

Section 4a

Development needs for common performance criteria

All employees are responsible for demonstrating these performance criteria

Tasks/Outputs Development Needs Action Steps Implementation Date

1. Teamwork

2. Organizational Commitment

3. Stakeholder Focus

4. Diversity Commitment

5. Maintaining a Safe and Secure Work Environment

Comments


Section 5

What did you learn? Reviewing Personal and Professional Development

Previous development objectives agreed to

What did you do to learn and develop

Progress made towards achieving objectives

Comments



Section 1: Setting objectives

Setting objectives Setting objectives for the year ahead

Objectives to be achieved this year

Links to organizational vision and mission

How will success be measured

List new skills, knowledge needed to develop so that you can meet objectives

Notes and amendments at review

Is there anything specific your supervisor and colleagues could do (more of, less of, better, differently) to help you be successful



Section 2: Planning Personal and Professional Development

What skills, knowledge or competencies you need to develop

How you will develop them; what will you do and when

How will success be measured; how you will know you have succeeded; who will give feedback


Notes and amendments at review

Employee’s Name

Supervisor’s Name

Date

Employee’s signature at initial review

Supervisor’s signature at initial review

Employee’s signature at semi-annual review

Supervisor’s signature at semi-annual review

Employee’s signature annual review

Supervisor’s signature at annual review


Appendix 2 Use this Rating Scale to mark performance for each Job and Common Performance Task and Output.

Rating Scale

Level 5 (E)

Exceptional: Performance far exceeded expectations due to exceptionally high quality of work performed in all essential areas of responsibility, resulting in an overall quality of work that was superior; and either 1) included the completion of a major goal or project, or 2) made an exceptional or unique contribution in support of unit, department, or organization objectives. This rating is achievable by any employee though given infrequently.

Level 4 (EE)

Exceed expectations: Performance consistently exceeded expectations in all essential areas of responsibility, and the quality of work overall was excellent. Annual goals were met.

Level 3 (ME)

Meets expectations: Performance consistently met expectations in all essential areas of responsibility, at times possibly exceeding expectations, and the quality of work overall was very good. The most critical annual goals were met.

Level 2 (IN)

Improvement needed: Performance did not consistently meet expectations – performance failed to meet expectations in one or more essential areas of responsibility, and/or one or more of the most critical goals were not met. A professional development plan to improve performance must be outlined in Section 3a and 4a, including timelines, and monitored to measure progress and correct deficiencies.

Level 1 (U)

Unsatisfactory: Performance was consistently below expectations in most essential areas of responsibility, and/or reasonable progress toward critical goals was not made. Significant improvement is needed in one or more important areas. In Section 3a and 4a, a plan to correct performance, including timelines, must be outlined and monitored to measure progress to correct deficiencies.


Appendix 3 Performance Improvement Plan Use this form to document the Performance Improvement Plan. Enter any development needs. Supervisors and employees revisit how the employee has progressed against the development plan and supervisor should complete the comments section.

Employee Name:

Job:

Department:

Supervisor Name:

Date:

Job Tasks/Outputs Unsatisfactory (list all);

Common Tasks/Outputs Unsatisfactory (list all):

What the employee must do in order to demonstrate acceptable performance:

Time period allowed for the opportunity to improve:

Suggestions for improving performance:


Offer of assistance to the employee to improve performance including training, if applicable:

Statement of the possible consequences of failure to raise performance to an acceptable level during the opportunity period (each statement is unique for the employee and the situation):

Comments

Use additional sheets of paper if necessary. Each additional sheet should contain

the following identifying information

Employee Name:

Job:

Department:

Supervisor Name:

Date:

Employee’s Signature:

Date:

Supervisor’s Signature:

Date:

performance management policy

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