INDUSTRY SCENARIO The Aditya Birla Group is India's first truly multinational corporation. Global in vision rooted in Indian value, the group is driven by a performance ethic pegged on value creation for its multiple stakeholder. A US $6 billion conglomerate, with a market capitalization of US $5 billion, it is endorse by an extraordinary forced of 72,000 employees belonging to over 20 different nationalities. Aditya Birla Group has 66 states-of-the-Arts manufacturing units and sectoral service span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. A premium conglomerate, the Aditya Birla Group is a dominant player in all the sectors in which it operates. Among these are viscose staple fiber, non-ferrous metals, cement, viscose, filament yarn, branded apparel, carbon black, chemical, fertilizer, sponge iron, insulator and financial services. It is: -
The world no. 1 in viscose staple fiber
The world largest single location palm oil production
Asia's largest integrated Aluminum producer
A globally competitive, fast growing copper producer
The world's third largest producer of insulators
Globally the 4th largest producer of carbon black
The world's 8th largest producer of cement and the largest in a single geography
India's premier branded garments player
Among India's most energy efficient private sector fertilizer plants
India's second largest producer of viscose filament yarn
India's second largest private sector insurance company
One of the India's leading asset management company
The group has also made successful successful forays into the IT (information (information technology) and BPO (business process outsourcing) sectors. 1
BEYOND BUSINESS The Aditya Birla Group believes in the trusteeship concept of management. It is the specialty of the group that is profits are used into meaningful welfare-driven initiative. These all activities are carried out under the Aditya Birla Center for Community Initiative and Rural Development.
INDUSTRIAL PORFOLIO
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BEYOND BUSINESS The Aditya Birla Group believes in the trusteeship concept of management. It is the specialty of the group that is profits are used into meaningful welfare-driven initiative. These all activities are carried out under the Aditya Birla Center for Community Initiative and Rural Development.
INDUSTRIAL PORFOLIO
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Aditya Cement, it was established in March 1995, which is one of the latest cement division of Grasim Industries Ltd. It is a record o Aditya Cement that they produce 1 million tones per annum cement unit. This record is completed in 22 months from the beginning. This plant is located at Shambhupura (Adityapuram) in Chittorgharh district of Rajasthan. It is 18 kms far from Chittorgharh railway station. This plant has 465 manpower for the manufacturing of cement. In Aditya Cement there are lot many modern equipments which are supplied by the world major and renowned Krupp Polusius of Germany and quality control systems by Gamma Matrix of United States Of America. This plant has already certified by ISO-9002 and ISO-14001 Certificates. The plant has proximity to limestone deposits and has an on- line Cross Belt Analyzer to ensure limestone of consistent quality. Its 82% of power requirements are met through captive source.
World Class Eco-Friendly Plant-Aditya Cement
The specialty of Aditya Cement Plant is, it's a World Class Eco-Friendly Plant. Adit Aditya ya Ceme Cement nt has has adop adopte ted d the the most most mode modern rn and and late latest st dry dry proc proces ess s prec precal alci cina nati tion on
tech techno nolo logy gy
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automatic, using highly sophisticated sate-of-the- arts technology, having on line process computer with color VDU control panels. Aditya Cement took the lead in the country for energy conservation by installing High Pressure Roller Press for raw material and cement grinding and vertical roll roller er mill mills s impo import rted ed from from the the worl world. d. This This plan plantt has has also also beli believ eved ed in the the import importance ance of conserv conservati ation on of environ environmen ment. t. By this this policy policy of awarene awareness ss of environment they installed high efficiency Electrostatic Precipitators, Bag House and Bag filters to keep the environment free from pollution.
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ORGANIZATION STUCTURE Aditya Cement is a Unit of Grasim Industries limited a flagship company of the Aditya Birla Group rank among India's largest private sector companies, with a turn over of Rs.5, 213.3 corers in 2003-2004. BOARD OF DIRECTORS
Mr. Kumarmanglam Birla, Chairman Mrs. Rajshree Birla Mr. M.L. Birla Mr. B.V. Bhargava Mr. R.C. Bhargava Mr. Y.C. Gupta Mr. Cyril Shroff Mr. S.G. Subhramanyam Mr. Shailendra Jain BUSINESS HEADS
Mr. Shailendra Jain, Viscous Staple Fiber Mr. Sourabh Mishra, Cement Mr. Ravi Kastiya, Sponge Iron Mr. S.K. Saboo, Textile Spinning Mr. Vikram Rao, Textile Fabric Mr. K.K. Maheshwari, Chemicals Mr. D.D. Rathi, Chief financial officer, Group Executive president and CFO
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IMPORTANCE OF PERFORMANCE APPRAISAL SYSTEM
Performance Appraisal is method of evaluation the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of performance. It is a systematic and objective way of evaluating both work-related behaviour and potential of employees. It is a process that involves determining communicating to an employee how he or she is performing the job and ideally establishing a plan of improvement. PERFORMANCE APPRAISAL PROCESS
The term appraisal means evaluation of the performance of employees. Evaluation of employees’ performance or potential provide data about past, present and expected performance so that appropriate decisions can be made. Systematic, formalized appraisals of an employee are likely to occurs at regular intervals throughout the history of one’s employment in an organization performance Appraisal assists mangers in making decisions about differential treatment to be accorded to individual employees in salary administration, promotion, transfer, performance planning, training, counseling, discipline an other matters to enhance the attainment of organizational goals. Performance appraisal is a process of evaluating employee performance in order to guide and develop the employee's potential. In many extension organizations, which are government departments, the performance appraisal is nothing more than a confidential judgment of work done and a character report used to facilitate disciplinary action or promotion. Performance appraisal is planned, developed and implemented through a series of steps: Establish performance standard
Appraisal system requires performance standards, which serve as benchmarks against which performance is measured.
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Communicated the standard
Performance Appraisal involves at least two parts- the appraiser who does the appraisal and the appraisee whose performance being evaluated. Both are expected to do certain things. The appraiser should prepare job description clearly; help appraisee set his set his goals and targets; analyse results objectively; offer coaching and guidance to appraisee whenever require an reward good results. Measure actual performance
After the performance standards are set and accepted, the next steps are to measure actual performance. This requires the use of dependable performance measures, the rating used to evaluate performance. Performance measures, to be helpful must be easy to use, be reliable and report on the critical behaviours that determine performance. Four common sources of information, which are generally used by manager regarding how to measure performance; Personal observation, statistical reports, oral report and written report. Compare actual performance with standard and discuss the appraisal
Actual performance may be better than expected and sometimes it may go off the track. Whatever be the consequence, there is a way to communicate and discus the final outcome. Taking corrective action, if necessary
Corrective action is of two types. The one which puts out the fires immediately and other one which at the root of the problem permanently. Immediately and other one which strike at the root of the problem permanently.
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METHODS OF PERFORMANCE APPRAISAL The methods of performance appraisal may be classified into three categories, as shown in figure; Performance Appraisal Techniques
Individual evaluation methods
multiple-person evaluating
other
methods methods
1.confidencial report
ranking
performance test 2.eassy evaluation
paired comparison
field review
technique 3.critical incidents
forced distribution
4.cheak list 5.graphical rating scale 6.behavioiurally anchored 7.rating scales 8.forced choice method 9.MBO
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PERFORMANCE APPRAISAL IN ADITYA CEMENT Performance appraisal is the systematic, orderly and objectively procedure in order to evaluate current performance of an individual. The main objective of performance appraisal is to acquaint the appraiser with the appraisal system visà-vis appraisal forms, rating scale, appraisal factor and the basic guideline while appraising performance. It aims at developing the Human resources through identifying their strength and weaknesses.
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Appraisal System according to Aditya Cement
Performance Appraisal System is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitatitive aspect of job performance. It is a systematically and objective way of evaluating both work-related behavior and potential of employees. It is process that involve determine and communication to and employee how he/she is performing the job and ideally, establishing a plan of improvement In other words performance appraisal system is a systematically, orderly and objective method of evaluating current performance of the employee in an organization.
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Objectives of Performance Appraisal in Aditya Cement
Performance Appraisal could be taken either for evaluating the performance of employee or for developing them. There are two types of evaluation that are telling the employee where he stand means what is the current position of employees in the organization and using the data for personal decision concerning pay, promotion, transfer etc. So the Performance Appraisal is aimed at achieving:
The main objective behind appraisal is it create and to nourish a performance oriented and learning culture.
It provides a sense of dedication and challenges to employees and their teams through.
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Role clarity is important point of objectives that how an appraisee know about his role in organization.
It enables the appraisee plan and reviews his performance through a participatory process.
Appraisal system establishes a linkage between performance and reward. According to this objective it improve or he/ she is in very good performance so that naturally he/she will get reward. And once get reward than definitely he will try to improve his performance as best as possible.
Appraisal system establishes or facilitates a planned process of management growth and development
It aims to establish an organizational environment where superior performance permeates every aspect or the Aditya Birla Group employee's professional life.
It creates a culture that empires and empower every individual to contribute his/her best in building the business and the organization through self-development and provide opportunities to recognize and develop achievers.
Performance Appraisal also develops and optimizes Human Resources.
Performance Appraisal is biased on the belief that clarity of goals and objective setting through a participatory process provides the foundation for " Superior Performance".
It believes that every individual is capable of setting objectives and assessing one own performance. It underlines introspection as a means of growth.
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Appraisal Process in Aditya Cement
The Performance Appraisal process of Aditya Cement is consists of a series of steps. Each step focuses a specific trait through which an individuals performance is appraised.
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These Appraisals are done in the systematically, through a well defined and developed appraisal form. In these appraisal forms, the Performance of an appraisee is assessed based upon is task and achievement status mentioned by the appraisee by his immediate superior (i.e. Appraiser) and subsequently it is reviewed by his superior’s superior (i.e. Reviewer). Basically three different types of appraisal forms are being used in the Aditya Cement according to different grades of employee. The Appraiser who is immediate supervisor of the person being appraised appraises all the apraisees. The appraisal is done against various factors and the appraiser indicates performance rating, which can be reviewed by the reviewer. In order to review the focus of appraisee's time attention, seriousness and use of resource with the organizational / business needs bi-annual reviews are conduction to assess the performance of the managerial cadre imply. For the first review of appraisee, the reviewer and an appraiser give attention to on the work performance of the month of April to September. This process is completed on the month of October. After that second review is take place in the March. This review is done on the basis of goals, which are completed during the period of October to March.
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Performance Review process : -
The most important part of review is a reviewer who is the immediate supervisor of the appraiser further examines performance appraisal of all employees. The reviewer carefully scrutinizes the Appraisal form. If felt necessary, the Reviewer can revise the appraisal rating with the concurrent or involvement of the appraiser. The reviewer should specially ask for written justifications by appraise in the appraisal form that is called Task Status.
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APPRAISAL PROCESS IN ADITYA CEMENT A DIAGRAMETIC VIEW
HRD puts up from to unit Head for counter signing
HRD sends relevant PADP/MPDP form to Functional Head
HRD incorporate change after review
Functional Heads hands over form to respective Appraisers
Review of specific cases by reviewer in consultation with appraisee
Appraiser hands over form to appraisal of managerial cadre for self-Appraisal
After Goal setting and self appraisal by the appraisee it goes back to the Appraiser
Appraiser assessed the performance of managerial and nonmanagerial cardre employees
HRD collect appraisal rating and sends back form of specific cases for review to reviewer
Reviewer sends filled in appraisal forms to HRD
Appraiser submits the completed form to reviewer
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APPRAISER PROCESS OF ADITYA CEMENT To emphasize the developmental of appraisal, it has been named "Performance Appraisal and Development plan". Presently three different Performance Appraisal and Development Plan forms are in vogue to cadre to the appraisal needs of different level of employee. These are the forms, which are used in Aditya Cement for the better Performance Appraisal.(Appen:1)
COMMON APPRAISAL MANAGERIAL PERFORMANMCE AND DEVELOPMENT PLAN (MPDP) The common appraisal system - Managerial Performance and Development Plan - for the Assistant Managers and above of the Group is implement in Aditya
Cement as well. The system has gone through several refinements based on the feedback received from some of their Directors and other senior managers. The objective of the new common appraisal system is to make it more goal-focused and to standardize it right across the Group. Aditya Cement has some trends for this process. These trends are towards separate system for each cluster of objectives. It is business-linked appraisal. This system is Participative and discussion biased system. It focused on results and processes. In Aditya Cement it is an annual exercise and linked with unit or group objectives. It is a concept of self-appraisal and review of performance. But this process have different standard, rating scales and systems. Specialty of this process is that it is fully confidential system with development orientation. MPDP have some different names like- a performance plan, Performance review, Potential assessment, and a development plan. MPDP have some unique features. It has a concept of self-appraisal process and participatory approach with supportive work culture. Main feature of this process
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is that it is a transparent system. In Aditya Cement a lot of attention is given on performance planning and development because it is mid-course review with corrective action.
MAIN FEATURES OF MPDP
This process is mid-course review and it also takes corrective action for completing the goals, which was mentioned lastly. It facilitates the process of development that are, executive involvement through self-appraisal and introspection. This process has a different way of rating. They have 4 profiles that are exceptional achiever, high achiever, consistent contributor and performer. Appraisee, Appraiser and reviewer are responsible for the process because they have to do discussion before going to fill the form of appraisal. Appriasee is the executive and one whose performance is to be assessed over one entire cycle. Appraiser is the manager, one under whom the Appraise has closely worked during the appraisal cycle. The Reviewer who is the appraiser's superior does the other part; he is one who has worked closely with the appraiser and oversees and the department or the function where the appraisee works. The MPDP pursues the following objectives: -
To create and to foster a performance oriented and learning culture
To provide a sense of direction and challenge to managers and their teams through role clarity
To enable the appraiser to plan and review his performance through a participatory process
To establish linkage between performance and reward
To facilitate a planned process of managerial growth and development.
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The Managerial Performance & Development Plan is meant to be a development tool in the Aditya Birla Group as whole. It aims to establish an organizational environment where superior performance permeates every aspect of the Aditya Birla Group's Managers' professional life. It seeks to create a culture that inspires & empowers every individual to contribute his/her best in building the business and the organization through self-development. It seeks to create an environment, which provides opportunities to recognize and develop achievers. It believes in the development and optimization of human resources. It is based on the premise that people at all levels are capable of contributing to the overall team performance.
THE
Setting KPS's for the APPRAISAL year ahead (A1) PROCESS
Post appraisal disscussion
Setting agreed objectives A2, A3
Appraisers recommendation (B4)
First 6-month review of objectives (A2)
Potential assessment (B3) Achievement profile reviewers' comments (B2)
Personal & career develop -ment (B1)
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THE APPRAISAL FORM - A GUIDE The purpose of this section is to take you on guided tour of the appraisal form. The first page of the form captures a brief picture of the Appraisee's personal details such as name, designation, qualifications and work experience etc. Unit HRD will be responsible to furnish this data in each appraisal form. A1
Key Performance Areas (KPA's) (To be filled by the Appraisee after discussions with his Appraiser )
A KPA is a thrust area or the area of importance dictated by the needs of a business. It is an area of focus that calls for Appraisee’s time, attention and resource. In short, it summarizes the Appraisee’s job profile and may change in focus from year to year with the change in business context or organizational goals. At the beginning of the year, the Appraiser shares the organizational and functional goals to help the Appraisee prepare his list of KPAs for the year. KPA's are derived from an Appraisee’s function such as Marketing, HRD, Finance and so on. For a Marketing Manager, for example, the thrust area could be the introduction of new products in one year and it could be distribution in another. The Appraisee documents his KPA's, in order of priority on page 1 of the appraisal form. The number of KPA's identified may be less than 5 and may sometimes even exceed 5.
The Appraisee retains the original
appraisal form, gives a copy of pages 1, 2, & 3 to the Appraiser and the Unit HRD for reference.
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A2
First six months' objectives (To be filled by Appraisee after discussion with his Appraiser)
The next step of the form involves listing down objectives based on the KPA's. Objectives are specific quantifiable tasks/targets. They establish a yardstick against which performance may be assessed at the end of the review periods. These objectives should be clear, brief, and measurable and time bound. In the case of service functions, it may not be always easy to set objectives in quantifiable terms but efforts must be made in this direction. An element of challenge should be willingly built into them so that the Appraisee stretches for his own good & organizational excellence. An objective cannot be a routine activity of the Appraisee.
It must be
something that adds a value to the business that did not exist earlier. Let us look at the example of the marketing manager once again.
If his
KPA is to introduce a new product, his objective to achieve this KPA could involve the following:
•
Test marketing the product in region X by July
•
Make the promotion plan by September
•
Hold a launch conference in October Objectives are to be set for each KPA identified for the year.
Total
number of objectives set for the whole year should not exceed 5-6. These objectives need to be divided into two categories i.e. those which will be started and completed within the first 6 months and those which will be started after 1st July and will be completed by the end of December. There may be some objectives, which may take more than six months to achieve. In such cases, the objective should be listed both in sections A2
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and A3, clearly indicating what part of it would be completed in the first 6 months and which part in the second half of the year. The column "agreed key objectives" on page 2 provides space for the Appraisee to document objectives to be achieved in the first six months of the appraisal period. At the end of the first six-month period (i.e. June 30) a meeting between the Appraiser and Appraisee will review the progress in achieving the objectives. Separate sub-columns have been provided for both the Appraisee & Appraiser's qualitative assessment of achievement of objectives e.g. they may comment on whether the objectives have been not achieved or partially/totally achieved. If objectives have been partially or not at all achieved, reasons must be assigned for it. Objectives for the second six months may change due to certain exceptional changes in assignment or focus; these changes may be highlighted in the sub-column "agreed action plan". The Appraisee is also given an opportunity to reflect on his performance and identify factors (external or internal) that may have facilitated or inhibited him in achieving his objectives. e.g. facilitating factors - co-operation from other departments, good control systems, support from his Appraiser. e.g. Inhibiting factors - delayed decision making, delay in supplies, change in management policies, lack of training to operate new equipment, period of ill health.
Care should be taken to record genuine constraints
supported by facts.
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If the Appraisee has made any significant contribution over and above his agreed objectives, it must be captured in the column provided on page 2. Significant contributions may be identified in the following three areas: a) Active role in a Group-wide initiative - e.g. The Group Management
Trainee scheme or the group wide organizational survey, being part of any task force or a TPM team. b) Development of subordinates - This would involve documentation of ways
in which you have created a supportive work environment e.g. through delegation (entrusted your subordinate/s with higher responsibility). c) System implementation - This may include introduction of a new system or
strengthening the existing ones for effective system orientation e.g. a customer feedback system.
A3
Second six months' objectives (To be filled by Appraisee after discussions with his Appraiser)
The column on page 3 is similar in concept to the column on page 2. The only difference is that it highlights the agreed objectives set for the second six month's period of the appraisal cycle and the review of that performance.
B1
Personal and Career Development (To be filled only by the Appraisee) The Appraisee has the opportunity to list down:
•
Any new learning of a significant nature e.g. an innovative way of solving a technical problem or an insight about business acquired from his experience. The idea here is to enable a manager to think through his previous year's experience so that he can reinforce new learning's.
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Any skills and/or expertise acquired or sharpened during the past year in course of work or through training e.g. budgeting, media planning, lateral thinking, interpersonal skills etc.
•
Areas where he wishes to further improve
•
His plans to achieve the improvements he desires
•
His career interests, immediate and short term (next 1-3 years) so that these may be taken into consideration when planning future assignments for him.
•
And others in the Group.
This will also aid more meaningful Human
Resource Planning.
B2
Achievement profile (To be filled only by the Appraiser)
Its purpose is to provide an overall perspective of the Appraisee’s contribution & performance.
The achievement profile relates to the
present job performance & not to potential. This profile is identified by the Appraiser and shared with the Appraisee. The appraiser should use the following scale to arrive at the achievement profile of the Appraisee: Exceptional High Achiever
Achiever
Consistent
Performer
Contributor
I___________I____________I___________I
A detailed description of each profile is given below.
It highlights certain
attributes; behavior patterns & performance to enable the appraiser draw a pen picture of the Appraisee, taking into consideration the overall applicability of the profile.
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EA - Exceptional achiever - is one:
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Whose performance is well in excess of the agreed objectives, with a very high stretch under adverse/normal conditions
•
Who conserves & utilizes his resources optimally
•
Who demonstrates complete mastery of his job & continuously acquires and applies new knowledge
•
Who demonstrates a high degree of initiative and the ability to work independently with a high level of confidence
•
Normally uses creative approaches/solutions when confronted with difficult business situations or problems.
•
Who motivates and inspires his team to contribute its best through mutual trust and two-way communication.
HA - High achiever - is one:
•
Whose performance is in excess of the agreed objectives with a high degree of stretch under adverse/normal conditions.
•
Who conserves and utilizes his resources well
•
Who demonstrates commendable grasp of his job
•
Who demonstrates moderate initiative & seeks guidance only in certain difficult situations
•
Frequently comes up with creative solutions to issues.
CC - Consistent contributor - is one:
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Whose performance just about meets objectives with a good stretch under adverse/normal conditions
•
Who utilizes his resources well but does not make an effort to conserve them
•
Who possesses reasonably good skills to meet the job requirements
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•
Takes reasonable amount of initiative but requires reminders & guidance in some routine and many difficult situations.
•
Occasionally comes up with creative approach to problems
Managerial Competencies
The appraiser is expected to assess and comment on the Managerial Competencies and personal Attributes of the Appraisee along the dimensions given below. However, it is not essential to comment on all or only the following dimensions.
The appraiser may identify dimensions, which have had a
significant bearing on the Appraisee’s performance.
As far as possible, the
appraiser is expected to use live examples; from the actions of the Appraisee in the previous year to make the comments data based. Functional knowledge Leadership Problem solving Strategic Thinking . Resource Allocation Networking
Personal Attributes
Maturity Creativity Winning instinct Initiative/Motivation Interpersonal competence
While the appraisal is being done for Unit Heads, their appraisers' should focus on the following three dimensions, in addition to the one/s the appraiser may have identified relevant to the Appraisee.
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Overall business
has a basic interest in and sensitivity to the business Perspective environment. Possesses a strong drive to entity new avenues and redefine the industrial sector.
Management of change
A facilitator who possesses the ability to anticipate, respond and adapt to changes in the business scenario to be ahead of competition.
Gains the
acceptance of his subordinates in the change process, involves them in the implementation of the changes. Development orientation the
ability
to
identify
subordinates' strengths.
and
capitalize
on
his
To create an environment
conductive for them to express themselves, learn and support them to acquire new skills and higher levels of performance.
B3
Potential assessment is a measure of the extent to which the Appraisee possesses certain skills and competencies to take on higher responsibilities.
This helps to identify areas where the
Appraisee can contribute his/her best. The appraiser would need to consider several factors while assessing the Appraisee's potential. e.g. The Appraisee's career growth till date and his/her career aspirations; the quality of performance in the past and at present; strengths and weaknesses; knowledge, skills and attitudes required at higher level and/or any other function; professional qualifications, age, state of health and so on.
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The Appraiser would basically need to match the competencies and personal attributes of the Appraisee with specific functional requirements. While looking for potential to be a Unit head, the appraiser must also consider the managerial competencies stated on page 6 and 7 of the booklet. The appraiser may express the Appraisee’s suitability in his current role and assign reasons why he thinks or doesn't think so. He may also suggest ways of preparing the Appraisee to take on higher responsibility or be rotated to any other function/units.
B4
Recommendations (To be filled only by the Appraiser)
After having identified the Appraisee's potential, the Appraiser would need to recommend the Appraisee for a promotion or transfer or to take on additional responsibility in the same/any other Unit. Similarly, relevant recommendations regarding increment/increase in salary have to be made by the appraiser. After the Appraiser signs the appraisal form, the Appraiser forwards it to his Superior (the reviewer) for his input. The reviewer shares and documents his views about the entire appraisal and then forwards it to the Unit head for his signature. The Unit HRD will compile the data generated, after the recommendations have been made by the Appraiser, Reviewer and the Unit Head so
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as to accordingly plan the implementation of the recommendations so made.
B5
Post Appraisal Discussion (to be filled by Appraiser & Appraisee after discussion)
The post appraisal discussion is a constructive dialogue between the Appraiser and the Appraisee. It provides a forum to freely discuss the entire year's performance, personal/career development, factors that have inhibited or facilitated his performance, areas of improvement and the Appraisee’s development plan. Sufficient time should be devoted to prepare for and hold discussion. The Appraiser is responsible for documenting all the main points discussed. The Appraiser must encourage the Appraisee to analyze his own successes, setbacks etc. The Appraisee should express this assessment on the appraisal process. He may also identify areas in which he would like the support and help of his Appraiser, to contribute more effectively. In case the Appraisee has disagreement with his appraisal done by the Appraiser, the Appraiser is responsible to escalate it to his Superior. The Appraiser & Appraisee may jointly arrive at 1 or 2 development opportunities which are likely to have the biggest impact on achieving the Appraisee's performance plan and fulfilling his development needs. Specific actions to be taken by the Appraisee and Appraiser together, within a specified time frame, must be documented.
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Other means of development such as being part of a task force, visits to plants that have state-of-the-art technology, visits to a company that has introduced a new concept/system that has led to a turn around, may also be documented to be followed up.
Responsibilities
The Appraisee and his Appraiser will share the responsibility of preparing the MPDP. The Appraisee - is the one whose performance is to be assessed over one
entire appraisal
•
Takes the initiative to prepare the first draft of the P & DP and contribute to its timely completion within 15 days from the receipt of the form from the Appraiser.
•
Informs the Appraiser about his readiness to share & finalize his KPA's
•
Documents the mutually agreed KPA's and objectives in the appraisal form.
•
Retains the original appraisal form, gives a copy of pages 1,2 & 3 to the Appraiser and Unit HRD for reference.
•
Evaluates his progress on the achievement of objectives at the end of six months period and at the end of the year.
•
Forwards the appraisal form to the Appraiser twice during appraisal year (i.e. for a joint progress review after six months & at the end of the year for the final assessment.
The Appraiser (The Appraisee's immediate Superior) - is one under
whom the Appraisee has closely worked during the appraisal cycle.
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•
Gives as much importance to the planning of the work and aligning it to organizational objectives, as to evaluating performance and giving feedback.
•
Gives the Appraisee insight into the organizational and departmental objectives.
•
Records major achievements/contributions made by the Appraisee during the year.
•
Ensures that a joint progress review after first six months period takes place.
•
Ensures that the feedback is constructive and actionable.
•
Makes note have and shares specific examples of behavior and incidents for positive and negative feedback.
•
Ensures that the post appraisal discussion is a constructive dialogue between himself and the Appraisee.
•
Shares the MPDP with the Appraisee & ensures its timely completion.
•
At the end of the year, after the final assessment by the Appraiser, he forwards the form to the Reviewer (the Appraiser's Superior).
The Reviewer (Appraiser's Superior ) - is one who has worked closely with the
appraiser and oversees the department or the function where the Appraise works.
•
Documents his inputs about the performance of the Appraisee
•
Ensures that it does not have generalizing or vague language
•
Calibrates ratings across the function
•
Checks for discrepancies that may occur in rating e.g. If the achievement profile is not supported by valid qualitative feedback.
•
Redirects the MPDP to the Appraiser if it does not meet the requirements.
The Unit Head 27
•
Ensures the timely distribution of the appraisal forms to the various functional heads in the Unit.
•
Calibrates ratings across the different functions.
•
Acknowledges the appraisal evaluation by signing on each appraisal form
•
Sends all the completed appraisal forms to Unit HRD in time.
Unit HRD •
Fills in the section on the executive's personal data e.g. name, designation, years of experience etc. and sends the appraisal form to the all Unit heads.
•
Ensures the speedy and effective implementation of the MPDP e.g. obtains feedback from time to time.
•
Ensures uniformity of approach and objectivity in decision making
•
Ensures that compensation revision reaches managers in time
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Ensures that the appraisal forms reach back to Appraiser for the post appraisal discussion
Corporate HRD •
Familiarizes unit heads, functional heads and Unit HRD with the common appraisal system and its components.
•
Ensures uniformity of approach and objectivity in decision making
•
Equips Unit HRD to implement the system in their units.
•
Elicits feedback from the units about the effectiveness of the system e.g. through a survey
•
Fine-tunes and refines the system on basis of the feedback received from time to time.
There are some important process steps and responsibilities, which is done by the particular person. 28
Process steps
responsibilities
Jointly setting of KPA's and objectives
Appraiser and Appraisee
(A1, A2, A3) 0 Joint review of objectives after the first
Appraiser and Appraisee
six months period 1 Personal and career development (B1)
Appraisee
2 Achievement profile (B2)
Appraiser
3 Potential assessment (B3)
Appraiser
4 Appraiser's recommendations (B4)
Appraiser
5 Post Appraisal discussion (B5)
Appraiser and Appraisee
Senior executive Overall business perspective : -
Has
a
business
basic
interest
environment.
in
Process
and a
sensitivity
strong
drive
to to
identify new avenues and redefine the industrial sector. Management of change : -
A facilitator who possesses the ability the anticipate, respond and adapt to change in the business scenario to be ahead of competition. Gains the acceptance of his subordinate in the change process, involves them in the implementation of the change. Development orientation : -
The
ability
subordinate
to
identify
strength.
To
and create
capitalist an
on
his
environment
conductive for them to express themselves, learn and support them to acquire new skills and higher level of performance.
PERFORMANCE APPRAISAL DEVELOPMENT PALN(PADP) 29
Performance level Rating for PADP (Managerial Employees) and PADP (NonManagerial Employees) are same as mentioned for MPDP i.e. Exceptional Achiever, High Achiever, Consistent Contributor, performer and non-performer. Managerial competencies are specific to MPDP. With increasing competitive pressures on business, productive of teams and individual performance is getting under the spotlight. No progressive business or team likes to carry less than consistently performing members as part of their team. In Aditya Cement, they have been making continuous effort to improve their performance. Each business must identify its top performer as well as poor performers. Poor / non-performer are not only a drag on the business, but also impact team morale and efficiency of High Performers. PADP (managerial) and PADP (non-managerial) are the way by which Aditya Cement can know who is the best and in what they want improvement. It provides goals and work plan for the next year and these plans are determined by the last achievements, this is the main and important feature. It is created only because Appraiser wants to know that particularly which factor does the employee affect and which factors are perfect. According to that they can easily mention that what would be the score of a particular are of an individual employee. These factors are coming under the Performance Assessment.
PERFORMANCE APPRAISAL DEVELOPMENT PALN (Managerial Personal)
1. Contribution on the job
a) Meeting target and tasks
Completion of task within deadlines
b) Consciousness for cost, quality and productivity
Accuracy and neatness of work
Consistency of output
Adherence to standard laid down and instruction given
Awareness of cost involvement and attempts to minimize them
Optimum use of resource and time in completion of task
30
c) Managerial effectiveness through positive discipline and leadership
Ability to win the confidence and support of subordinates
Setting personal example to promote discipline
Conflict resolution and redresal of grievances
Clear guidance and communication to subordinate
d) Internal and external customer orientation
Awareness of internal and external user of his output
Sensitivity their needs with of various groups
Meeting their needs with respect to speed and quality of output
2) TPM/ISO/EHS/SA-8000 Systems
a) Understanding TPM/ISO/EHS/SA-8000 Systems
Familiarity with the principle, objectives and salient feature of TPM/ISO/EHS/SA- 8000
Systems; knowledge of TPM, Quality and Environment Policy
Awareness of the department's role vis-a vis organizational compliance with these systems
Consciousness of the importance of these systems to the organization
Understanding Total Quality Concept
b) Implementation of systems
Application of TPM/ISO/EHS/SA-8000 philosophies in work practice
Meeting of requirements of these systems with regard to quality of work, safety, environment, documentation and etc.
Member ship of sub-committees.
Preparation of activity boards, work procedures/ work instructions
c) Continuous monitoring and achievements
31
Constant monitoring
to
ensure
compliance of all
systems
to
TPM/ISO/EHS/SA- 8000 requirement at all time
Continuous assessment of targets to measure their relevance and efforts to revise them as and when required
Continuous effort to improve upon TPM/ISO/EHS/SA-8000 target and goals
Contribution in preparation of application for various awards
Role as internal auditor and auditee
Attending circle meeting and monthly TPM communication Meetings
3) Ability to Delegate an Exercise Control
a) Willingness and extend to delegation and decentralization
Confidence in the ability of their subordinates
Willingness to take the risk of allowing the subordinates to "get their feet wet"
Equip subordinate with the authority to effectively carry out their responsibilities
Constant effects to introduces subordinates to new roles and responsibilities
b) Consultation with subordinates on decision affecting their work
Awareness of impact of decisions on subordinates work and communicating the same to them
Sensitivity to work related needs of subordinates
Involving them in the decision making process to the extent possible
4) Analytical Ability and Decision Making
a) Ability to plan and organize
Chart out a plan for every major task
32
Setting of goals and targets
Clear understanding of resources and time required and optimal allocation thereof
Constant monitoring to ensure meeting the targets
b) Mental awareness and grasping ability
Quickness in understanding problems and issues
Ability to concentrate for long hours
Ability to process diverse information streams simultaneously
Sensitivity to changes in the environments
c) Problem solving and decision-making
Ability to go to the crux of a situation and understand it thoroughly
Ability to envision facets of a situation, extract relevant information and analyze it
Ability to visualize all decision alternatives and gauge the effect of each alternative
Ability to take a firm stand and follow it up, and the flexibility to change it, if the situation so demand
5) Ability to develop people
a) Fairness and objectivity
Ability to look at situation from various viewpoints
Elimination of basis and preconceived notion while taking decision having an implementation for subordinates
Avoiding imposition of one's value system in others
Awareness of subordinates needs and motivations
33
b) Training and development of subordinates
Awareness
of
subordinates'
job
requirement,
strength,
weakness, interests and career plans
Identifying training and development needs of subordinates based on the above and ensuring that they are met
Giving constant feedback to subordinates on their performance and giving inputs to upgrade their performance and giving inputs to upgrade their job related skills.
c) Motivation and moral building
Ability to act as role model
Guiding subordinates to help them achieve their realistic needs
Constant interaction with for subordinate so they can stretch themselves
Inculcating "we feeling' in subordinates
Generosity with support and praise
d) Development of successor
Identification of likely successor based on job requirement and personal qualities and competence of subordinates
Identification of skill/attitude gaps related to grooming of the identified successor
Holding of training session and providing counseling, job coaching, OJT's and formal training to the successor to facilitate his/her transition
6) Knowledge of work and awareness of environment
34
a) Job related knowledge
Sound grounding in fundamentals of functional area
Ability to translate/adapt theory into practice
Familiarity with work practices in functional area
Expertise in own field of specialization within functional area
Good overall knowledge of related field within functional area
Ability to appreciate linkage with other functional areas and contribution of other area to the organization
b) Awareness of latest development in field of operation
Updating of knowledge by regularly by reading journal and books related to field of operation
Ability to use acquired knowledge to add value to the department and the organization Eagerness to work with people possessing good knowledge or experience in his area.
Membership of professional bodies
c) Ability to adapt/ responsiveness to change
Awareness of the impact of various changes in the e internal and external environment on the department and the organization
Change of work practices in accordance with the change in scenario
d) Knowledge of organization polices and procedures
Familiarity with the vision, mission and core values of the
organization
Awareness
of
organization
imperatives
and
the
environmental factors influencing organizational direction
Familiarity with organizational rules, policies and procedures
Adherence to organizational values, culture, policies and
rules
35
7) Conceptual and innovative skills
a) Anticipation of problems and planning of corrective action
Ability to recognize symptoms of a problem situation
Quickness of reaction to strike at the problem's root
Effectiveness of planning to ensure success in solving
problems
Constant monitoring to ensure adequate progress in tackling
problem
Documentation of learning to enables combat of similar
nature in future
Ability to think new/ alternative approaches
Ability to generate new ideas continuously
Ability to find ways to translate ideas into practices
questioning of existing work practice that may not be optional b) Modification proposed and executed
Generation of new ideas and approached
Creation of entirely new systems
Revamp of existing systems
Identification of new action areas hitherto ignored
Efforts for continues improvement
8) Teamwork and relationships
a) Ability to work in teams/promotion of group culture
Ability to put team goals in perspective and direct focus towards team goals
36
Alignment with team rather than individual objectives
Active contribution to team work and encouraging inputs from all members
Ability to resolve team conflicts
b) Ability to work with superiors, peers and subordinates
Ability to establish rapport with people within and outside the department
Respectful attitude towards superiors and friendly relations with peers and subordinate
9) Communication
a) Clarity of thought and willingness to share information
Ability to express thought coherently and in a logical manner
Elimination of ambiguities/ loose ends in communication
Keenness to share information of use to other, within and outside the department
b) Verbal and written communication skills
Ability to put one's point across forcefully with out causing disrespect
Use of appropriate language in written and verbal communication
Ability to communicate precisely without omitting key detail
c) Capacity to listen to and appreciate other points of view
Openness to suggestions
Tolerance of dissenting viewpoint
Encouragement of feedback
Willingness to change the stand in light of new facts
Patience in listening to other's problems or grievances
37
Ability to look at things from the viewpoint of "the other persons"
There after Appraisee got overall rating out of 200. The purpose of assigning performance level ratings is to provide an overall perspective of an Appraisee’s contribution, performance and behavior.
It essentially reflects achievement
profile of the Appraisee and relates to present job performance and not to potential. This rating is given by the Appraiser and further examined by the Reviewer. The post-review rating is to be shared by the Appraiser with Appraisee. The appraiser should use the following rating to depict the overall performance level of the Appraisee:
Exceptional
High
Consistent
Performer Non-
Achiever
Achiever
Contributor
(P)
(EA)
(HA)
(CC)
A detailed description of each profile is given below.
Performer (NP) It highlights certain
attributes; behavioral patterns and performance to enable the Appraiser draw a pen picture of the Appraisee, taking into account the overall applicability of the rating category. Exceptional Achiever (EA): is one •
Whose performance is well above the agreed objectives/standards of expected performance with a remarkable consistency under adverse/normal conditions
•
Who conserves/utilizes resources optimally
•
Who demonstrates complete mastery of his job and continuously acquires and applies new knowledge
•
Who demonstrates a high degree of initiative and the ability to work independently with great confidence
38
•
Normally uses creative approaches/solutions when confronted with difficult business situations
•
Who motivates and inspires his team to give its best through effective team building and leadership
High Achiever (HA): A very good performer is a high achiever •
Whose performance is above agreed objectives/standards of expected performance with a marked consistency under adverse/normal conditions
•
Who conserves and utilizes his resources well
•
Who displays commendable grasp of his job
•
Who demonstrates a good degree of initiative and seeks guidance in difficult situations
•
Often comes up with creative solutions to issues
•
Who is able to build a team and sustain its motivation and morale
Consistent Contributor (CC): is one •
Who achieves targets consistently under adverse/normal conditions but does not exceed them
•
Who utilizes his resources well but does not attempt to conserve/optimize them
•
Displays reasonable degree of initiative but requires follow-up and guidance in some routine and most of the difficult situations.
•
Who possesses knowledge and skills to meet the task requirement
•
Occasionally comes up with creative approach to problems
Performer (P): is one •
Who gives just expected performance/level. Finds it difficult to achieve his objectives in adverse conditions or demanding situations
•
Who has limited job knowledge and skills
•
Could have utilized his resources better
39
•
Who takes less initiative and has to be pushed constantly to get work done
•
Carries a conventional approach to job
Non-Performer (NP): is one •
Who consistently fails to achieve targets/expected standards of performance. Displays unwillingness to contribute
•
Who wastes organizational resources
•
Exhibits total ignorance of job knowledge
•
Carries negative attitude and closed mind set
In case any Appraisee is rated as "EA" or "NP" than it is necessary to give at least two specific reasons. At the last there should be the signature of Appraiser and Reviewer with their comments and date as well. On the next page of the Appraisal process the Appraiser should clearly specify one or two areas for Performance Enhancement and suggest the ways through which improvement can be achieved. It is necessary to inform to Appraisee about the Performance Rating and Area of Improvement, with name, designation, and department as well. The last section of the process is especially for the Goals and Work Plans for the upcoming year. This division is to be filled by the Appraisee in consultation with Appraiser with his/ her name, designation and department also. In this section the Key Objectives or Goals are fix on with the target Date for the first and second analysis of the coming year. At the last Appraiser and Appraisee should do signature on it.
40
41
2.6.2. Performance Appraisal and Development Plan (Non-Managerial Personnel)
Successful implementation and institutionalization of Performance Appraisal demands the real support and active participation of all concerned i.e. Appraisee, Appraiser, Reviewer and Unit Head.
They need to make wholehearted
contribution to make this system effective. This Appraisal Process is usually same as the PADP-Managerial Personnel process. Factors are the important part of process, which makes difference between both the PADP Processes. But according to requirement Nonmanagerial personnel need not to make any future plans. So that, this process doesn't have the section of Future Goals and Work Plan. Description of Appraisal Factors
I. Work Performance A. Internal customer orientation •
Awareness of internal and external users of output
•
Sensitivity to the needs of various user groups
•
Meeting their needs with respect to speed and quality of output
B. Job related knowledge •
Sound grounding in fundamentals of functional area
•
Ability to translate/adapt theory into practice
•
Familiarity with work practices in functional area
•
Expertise in own field of specialization within functional area
•
Good overall knowledge of related field within functional area
•
Ability to appreciate linkages with other functional areas and the
contribution of other areas to the organization
42
C. Meeting targets / tasks •
Completion of tasks within deadlines
D. Cost and production consciousness •
Accuracy and neatness of work
•
Consistency of output
•
Adherence to standards laid down and instructions given
•
Awareness of costs involved and attempts to minimize them
•
Optimal use of resources and time in completion of task
E. Modifications suggested / implemented •
Generation of new ideas and approaches
•
Creation of entirely new systems
•
Revamp of existing systems
•
Identification of action areas hitherto ignored
•
Efforts for continuous improvement
II. Quality of Work A. Speed •
Quickness in planning and execution of work
•
Quick response to change
B. Accuracy •
Conformity with instructions and standards
•
Low incidence of errors or rework
C. Consistency •
Uniformly accurate and timely completion of tasks
III. Team Work and Relationships A. Ability to work in teams / promotion of team spirit
43
•
Ability to put team goals in perspective and direct focus towards
team goals •
Alignment with team rather than individual objectives
•
Active contribution to team work and encouraging inputs from all
members •
Ability to resolve team conflicts
B. Relationship with superiors, peers (colleagues) and subordinates •
Ability to establish rapport with people within and outside the
department •
Respectful attitude towards superiors and friendly relations with
peers and subordinates C. Trustworthiness and openness •
Ability to get along with people and win their confidence
•
Willingness to share information useful to others within or outside
department IV . Attitude Towards Work A. Positive thinking and involvement in the job •
Self confidence
•
‘Can do’ attitude towards problem solving
•
Willingness to stretch oneself to achieve tasks
•
Whole hearted commitment to achievement of desired results
B. Intra – departmental (within the department) and inter departmental cooperation and support •
Eagerness to help others within and outside department
•
Broad organization level outlook rather than a narrow department
or sub section level outlook
44
C. Ability to execute jobs without guidance •
Willingness to accept new roles and responsibilities
•
Ability to plan and carry out tasks independently
D. Waste control and safety consciousness •
Awareness of safety and wastage issues in the department and
throughout the organization •
Attempt to minimize wastage and ensure safety in all actions
•
Concern for departmental and organizational environment
•
Concern for safety needs of others
V. Initiative A. Ability to bring new ideas to work place •
Ability to generate new ideas
•
Ability to implement ideas in organizational context
•
Constant questioning of sub optimal systems and procedures
B. Independent thinking and risk taking •
Willingness to rise up to challenges
•
Originality of views
•
Ability to carry forward and test new ideas
C. Readiness to introduce changes voluntarily and shoulder higher responsibility •
Quality of performance of non-routine tasks
•
Attitude towards change measures initiated in department and
organization •
Willingness to accept responsibility for failures as well as
successes
45
VI.
Dependability
VII.
Emotional identity with the job and the organization
•
Level of correlation between personal and organizational goals
•
Subordination of personal goals to those of the organization
•
Commitment that goes beyond the fulfillment of professional
responsibilities VIII. Discipline A. Punctuality •
Adherence to work timings
•
Cooperation with requests to complete urgent work beyond office
hours B. Maintenance of dignity and decorum at work •
Respect for peer group and superiors
•
Role model for subordinates
•
Proper attire at all times
•
Neat maintenance of workspace
•
Polite, respectful and civic language
C. Adherence to rules / regulations •
Awareness of organizational rules and regulations
•
Strict adherence thereto
46
4.1. CONCLUSION
From the study, the researcher concludes that in Aditya Cement performance appraisal system is working at an expected pace. The topic Effectiveness of performance appraisal system in Aditya cement is done by the survey method. Successful implementation and institutionalization of Performance Appraisal demands the real support and active participation of all concerned i.e. Appraisee, Appraiser, Reviewer and Unit Head.
They need to make wholehearted
contribution to make this system effective. Appraisal should be viewed essentially as an instrument of development and not an instrument of rewards by the management only.
After the analysis the
researcher comes to know that the Appraiser should try to analyze the strengths and weaknesses of an employee and guide him about building his skill/behavioral gaps. In Aditya cement the Appraiser should organize a feedback session with Appraisee after appraisal during which feedback can be given to appraisee and his difficulties in performing assigned tasks can be understood. For avoiding discrimination in appraisal, Aditya Cement used three types of appraisal process MPDP, PADP (managerial) and PADP (non-managerial). So that every employee get good and appropriate appraisal at proper time. Thus, the policy and practice of performance appraisal at Aditya Birla is none or less service the bank purpose of human resource development and so also the organizational effectiveness.
47
BIBLOGRAPHY
48
Appendix-B (Speciment copy from Aditya Cement)
Managerial Performance and Development Plan ______________________________________________________________________________ _______ Year: 2004 – 2005
Name : Designation : Grade : Qualification : Length of service : Length of service in present position :
Unit
: Location : Department : Last Increment date :
49
A 1 1 1
Key Performance Areas ……………… (Please list down ‘Key Performance Areas’ after discussion between Appraiser and 1 Appraisee)
1.
2.
3.
4.
5.
50
A 2 1 1
First Six Months' Objectives ...
1
Agreed Key Objectives
Results Achieved Appraisee’s Assessment
Appraisor’s Assessment
1
2
3
4
5
Agreed Action Plan
What factors have helped and/or hindered performance during the past six months ?
Any significant contribution made by the Appraisee over and above his/her objectives. (Please refer to the booklet for egs & details)
Signature of Appraiser
Signature of Appraisee
51
A 3 1 1 Second Six Months' Objectives ... 1 Results Achieved
Agreed Key Objectives
Appraisee’s Assessment
Appraisor’s Assessment
1
2
3
4
5
Agreed Action Plan
What factors have helped and/or hindered performance during the past six months ?
Any significant contribution made by the Appraisee over and above his/her objectives. (Please refer to the booklet for egs & details)
52
Signature of Appraiser
1 B 1
Signature of Appraisee
Personal and Career Development … (To be filled by the Appraisee only)
1.
What has been your significant learning during the past year?
2.
List down the skills and competencies that you have acquired or sharpened during the past year?
3.
List down areas you would like to improve further.
4.
How do you plan to achieve the improvements you desire?
5.
What are some of your career aspirations?
53
2 B 1
Achievement Profile (To be filled by the Appraiser only) Exceptional Performer Achiever
High
Consistent
Achiever
Contributor
Comment about the managerial competencies and personal attributes of the Appraisee : (Please refer to the booklet for egs & details)
Comments by the Reviewer
__________________ Signature of Appraiser
__________________ Signature of Reviewer
Date :
Date :
54
3 B 1
Potential Assessment … (To be filled by the Appraiser only)
1.
Are the manager’s abilities best used in his/her present job ? Yes
No
1a. If no, what job should he/she be assigned for best use of his/her current abilities ? (Please explain your recommendation)
2.
Is he/she ready to be assigned higher responsibility ? If yes, what kind of higher responsibility can he/she be given and in what time frame? What preparation does he/she need to make to take up such responsibility ?
3. Does the manager have long term potential to occupy senior positions ? (e.g. Functional Head in large unit, a Unit Head or Head of a new project) Yes
3a.
No
If yes, please explain his/her long term potential and what abilities and qualities indicate such potential ?
If the manager has long term potential (see above), what are the two capacities or roles in which he/she should work in the next 3-5 years for further developing such potential ? 4.
55
B 4 1
1.
Recommendations … (To be filled by the Appraiser only)
The manager may be promoted immediately as :
2. The manager may be transferred and posted as (in the same unit) :
3. The manager may be given additional responsibility of (in the same unit) :
4. An opportunity for the manager should be looked for in another unit as : (Please specify the nature of responsibility)
5. Amount of increment or percentage increase in salary recommended :
6.
Any other comments:
Reviewer’s comments (if any):
Unit Head’s comments (if any):
__________________ __________________ ___________________ Signature of Appraiser Signature of Review Signature of Unit Head
56
5 B 1
Post Appraisal Discussion …
Main points : (To be filled by the Appraiser only)
Appraisee’s overall response : (To be filled by the Appraisee only)
Development Plan : (To be filled after discussion between Appraiser & Appraisee) Training suggested
Time Frame
Reasons
Others means of development : (e.g. visits, short assignments)
___________________ Signature of Appraiser
__________________ Signature of Appraisee
57