A Project Report On PERFORMANCE MANAGEMENT SYSTEM For XEROX INDIA LTD

INDIAN INSTITUTE OF FOREIGN TRADE (IIFT)

Submitted By: Pankaj Mishra, Manoj Jha, Ravi Sapra, Rakesh Kumar, Sonia Chawala, Manish Ranjan & Deepak Kumar. EPGDIB (V-SAT) DELHI ROLL NO 49,..

Acknowledgement

XEROX INDIA, which is the Leader in document market. Xerox is committed to profitability and delivery of growth to their customer, shareholder and employees. Interdependence has greater effects than independent work. Work done by the combined efforts of many minds has more value than the single one. The project is also a combined and guided effort of group members.

EXECUTIVE SUMMARY
PERSONAL DEVELOPMENT PLAN
PDP is used to assist the personal development plan of the employee. It records all the actions needed to be taken in order so that the employee meets his job requirement fully, and grows in potential. The starting point of personal development is a thorough review of the previous years performance against plan, as well as the appraisal review. Together this will point those areas of improvement in the employee, which if addressed, will enhance the current worth as well as potential, to employee and to the organization.

PERFORMANCE EXCELLENCE PROCESS

The PEP is an integral part of our Xerox lean six sigma strategy. The PEP is how we align strategies and performance objectives across the entire corporation. It is also how we manage performance to ensure delivery of improved and profitable business result that increases shareholders value. PEP is based on sound quality principles and effective performance management. The process consists of three phases: 1. setting direction 2. deploying direction 3. Delivering and inspecting results. (Daily work process) The Performance Excellence Plan helps us to document our objectives, measures, and targets

Appraisal Review
The PEP and PDP Together constitute the performance plan for an employee appraisal by definition is the review of performance against plan.

Types of Review
Mid year performance review: Full year Review:

CONTENTS
1. 2. 3. Acknowledgement Executive Summary Introductions 3.1 3.2 3.3 4. Xerox India Limited Profile Xerox Motto Xerox Milestone

Performance Appraisals 4.1 4.3. 4.4 Approaches to Performance Appraisals Purposes of Performance Appraisal Summary of Appraisal Methods

5.

Personal Development Plan 5.1 5.2 Personal Development Personal Development Plan form

6.

Performance Excellence Plan 6.1 6.2 6.3 6.4 Background of PEP Preparation for Review Performance Excellence Summary form Leadership Behavior Framework

XEROX IN INDIA
Incorporated in 1983, Xerox India Limited (XIL) is a part of Xerox Corporation (NYSE: XRX), the US $15.7 billion, Fortune 500 global document management company. Over the past 20 years, Xerox India has shaped the Document Management industry in India by ushering in the world's best document processing products and bringing innovative valueadded concepts to cater to customer needs. Xerox India has successfully transitioned three major movements in India since its inception, from copying to printing, black and white to colour and stand-alone analog to digital, networked products. In keeping with the strategic shift in Xerox Corporation globally, Xerox India has transitioned from being a predominantly black-and-white, light-lens Copier Company to a digital, color and document Solutions Company. XIL's growing portfolio of document management solutions combines its offerings of services, software and hardware to deliver high value to its customers. Xerox India used to be called Modi Xerox Xerox India is the Indian subsidiary of xerox Corporation, the printer, photocopier, document supplies, technology & services company. Originally Modi Xerox, the business was derived from a joint venture formed between Dr Bhupendra Kumar Modi through ModiCorp (now SpiceCorp) and Rank Xerox in September 1983. The share structure was 40% ModiCorp, 40% Rank Xerox and 20% private shareholders. It built upon an earlier co-operation, Indian Xerographic Systems, formed in 1982. Other parternships included Modi Xerox Software Systems, created in 1995 and Modi Xerox Financial Services.

XEROX MOTTO
Proud to be Xerox Great People, Great Costumer, Great work place
Value:
1 Xerox succeeds through satisfied customer. 2 Xerox values and empower their employees 3 Xerox deliver quality and experience in all we do. 4 Xerox require premium return on assets. 5 Xerox use technology to develop market leadership. 6 Xerox behave responsibly as a corporate citizen.

Objective: 1 Improves customer experience.

2 Grow revenue. 3 Improve profitability and cash flow. 4 create a great employee experience. 5 live on values. Xerox is committed to profitability and delivery of growth to their customer, shareholder and employees. Their rich heritage is based on costumer focused and employees centered values that help deliver profitability and growth. Founded nearly 100years ago as the haloid company Xerox has become renowned for its innovation. Beginning with the chance the company took on electro photography a technology that few others believed had any potential; Xerox has demonstrated leadership in innovation.

Xerox Global Services

Simplifying business processes is the key to reducing costs, improving responsiveness to the marketplace, and accelerating better decisions. Yet, they've found that many companies are frustrated with business simplification and technology efforts that fail to live up to anticipated results. Market research firm IDC says companies spend up to 10% of their revenue on document production, management and distribution. Xerox Global Services can help you recapture some of those costs by streamlining and digitizing document-intensive business processes. This may include everyday processes - like customer communications, billing, training, and records management. Or, more complex, industry-specific processes - like new client enrollment processes for insurance companies and engineering change management for manufacturers. It is a unique combination of people, process, and technology that leads to success. They work closely with you to identify opportunities, leverage your technology investments, your people, and your business practices to streamline your operations and improve business performance. Theyve worked with more than 6,000 clients in 60 countries to identify and cultivate the hidden opportunities that save time, money, and resources while simplifying work. Xerox Global Services provides a wide range of consulting and technology services in environments that range from the office to the assembly line. They have added value to clients' businesses through services in areas such as knowledge and work practice management, enterprise content management, publishing and IT infrastructure management.

XEROX TECHNOLOGY
Xerox India is dedicated to providing document solutions that simplify work and enhance productivity. Whether it's a small business or a multinational corporation, they offer products and services that can help a company improve its business processes and share crucial information and knowledge. Technology helps Xerox to lead the industry. Since its inception, a billion dollars have been spent on research and development. This way the customers are assured of products and services with matchless quality, an abundance of features, fast network support and speed. Xerox's reach extends across India with national distributors, regional distributors and resellers. With over 100 plus products for the Indian market and the launch of 20 new products planned for 2005, Xerox has added technologically advanced products and services which have matchless quality, an abundance of features, fast network support and speed.

HONOURS
First in industry to achieve ISO 9002 for both Manufacturing and Customer Service Support. Among first 10 companies in India to obtain ISO 14001 for complete environment management systems. National HRD Award Quality training programs and Best Practices imbibed and shared within Xerox (Egypt and Saudi Xerox) as well as lead management bodies in India. Export Achievement Awards 1996-97 & 1997-98 1999 Golden Peacock Award for Value Engineering new Modi Xerox 5216 copier variant. Enviable Environment Health & Safety record: Seven British National Safety Council Awards 22 Xerox Earth Awards Xerox D&M Safety and Safety Gold Award Benchmark levels on biological and environmental

Milestones
XIL was the first in India to help recognize the new value of documents in the creation, capture and transfer of knowledge in the workplace. It was the first in industry to achieve ISO 9002 for both, Manufacturing and Marketing/ Customer Service Support and among first 10 companies in India to obtain ISO 14001 for complete environment management systems. Xerox has a world class facility for manufacture of copiers, consumables and parts in India and is the industry number one in overall Customer Satisfaction and Service with its nationwide distribution and reach.

The Xerox India Limited story can be divided into the following phases: The Start-up years (1983 - 86) The Take-off Phase (1986 - 89) Maturing of the Partnership (1989 - 91) Evolution into The Document Company (1991 - 95) Gearing up for Globalization & Knowledge Growth (1995 - 99) 2000 & Beyond : Leading the Digital Document Revolution

Xerox India Limited has successfully transitioned three major movements in India since its inception: From copying to printing. From black and white to co lour. From stand-alone analog to digital, networked products. Xerox hammers a century Create printing history. Xerox document digital color press ideal combination of speed, reliability, flexibility, image quality and Value Print short run, on demand. Maximizes the potential of variable data printing. Grows volumes with faster turnarounds and mixed media jobs

Performance Appraisal
Evaluating an employees current and/or past performance relative to his or her performance standards. The identification, measurement, and management of human performance in organizations. Performance appraisals provide an ideal opportunity for collaborative, two-way communication between supervisors and their employees. Yet, they also carry an incredible legal responsibility: the right to a fair appraisal of job performance starts with the actual job description itself

Approaches to Performance Appraisals

There have been two prevalent approaches to performance appraisal. The first approach has been the traditional approach. This approach has also been known as the organizational or overall approach. The traditional approach has been primarily concerned with the overall organization and has been involved with past performance. The second approach to performance appraisal has been the developmental approach. This approach viewed the employees as individuals and has been forward looking through the use of goal setting.

Purposes of Traditional Performance Appraisals

Performance appraisal for evaluation using the traditional approach has served the following purposes: Promotion, separation, and transfer decisions Feedback to the employee regarding how the organization viewed the employee's performance Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization Reward decisions, including merit increases, promotions, and other rewards Ascertaining and diagnosing training and development decisions Criteria for evaluating the success of training and development decisions Information upon which work scheduling plans, budgeting, and human resources planning can be used

Two serious flaws in the traditional approach to performance appraisal exist. The flaws are: Organizational performance appraisal is typically primarily concerned with the past rather than being forward looking through the use of setting objectives or goals.

Performance appraisal is usually tied to the employees' salary review. Dealing with salary generally overwhelmed and blocked creative, meaningful, or comprehensive consideration of performance goals.

Purpose of Performance Appraisal

The developmental approach to performance appraisal has been related to employees as individuals. This approach has been concerned with the use of performance appraisal as a contributor to employee motivation, development, and human resources planning. The development approach contained all of the traditional overall organizational performance appraisal purposes and the following additional purposes: Provided employees the opportunity to formally indicate the direction and level of the employee's ambition Show organizational interest in employee development, which was cited to help the enterprise retain ambitious, capable employees instead of losing the employees to competitors Provided structure for communications between employees and management to help clarify expectations of the employee by management and the employee Provide satisfaction and encouragement to the employee who has been trying to perform well.

Expectations of a Manager in doing a Performance Appraisal

The following is typically expected from company managers when doing performance appraisals: Translate organizational goals into individual job objective. Communicate management's expectations regarding employee performance. Provide feedback to the employee about job performance in light of management's objectives. Coach the employee on how to achieve job objectives/requirements. Diagnose the employee's strengths and weaknesses. Determine what kind of development activities might help the employee better utilize his or her skills improve performance on the current job.

Performance Appraisal Process

The performance appraisal process typically consists of four inter-related steps as follows: Establish a common understanding between the manager (evaluator) and employee (evaluate) regarding work expectations; mainly, the work to be accomplished and how that work is to be evaluated.

Ongoing assessment of performance and the progress against work expectation. Provisions should be made for the regular feedback of information to clarify and modify the goals and expectations, to correct unacceptable performance before it was too late, and to reward superior performance with proper praise and recognition. Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family. The formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a Development Plan.

Refining Performance Appraisal

Probably no other organizational function strikes as much terror in the hearts of Extension agents as the annual job evaluation or performance appraisal. "...the process of identifying, measuring and developing human performance in organizations,"1 performance appraisal tries to: Give feedback to employees to improve subsequent performance. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions-salary (merit) increases, disciplinary actions, Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

Some common Appraisals drawback

Obstacles to the success of formal performance appraisal programs should be familiar to most managers, either from painful personal experience or from the growing body of critical literature. Here are the most troublesome and frequently cited drawbacks: Performance appraisal programs demand too much from supervisors. Formal performance appraisals obviously require at least periodic supervisor observation of subordinates' performance. However, the typical first-line supervisor can hardly know, in a very adequate way, just what each of 20, 30, or more subordinates is doing. Standards and ratings tend to vary widely and, often, unfairly. Some raters are tough, others are lenient. Some departments have highly competent people; others have less competent people. Consequently, employees subject to less competition or lenient ratings can receive higher appraisals than equally competent or superior associates. Personal values and bias can replace organizational standards. An appraiser may not lack standards, but the standards he uses are sometimes the wrong ones. For example, unfairly low ratings may be given to valued subordinates so they will not be promoted out of the rater's department. More often, however, outright bias dictates favored treatment for some employees. Because of lack of communication, employees may not know how they are rated. The standards by which employees think they are being judged are sometimes different from those their superiors actually use. No performance appraisal system can be very effective for management decisions, organization development, or any other purpose until the people being appraised know what is expected of them and by what criteria they are being judged. Appraisal techniques tend to be used as performance panaceas. If a worker lacks the basic ability or has not been given the necessary training for his job, it is neither reasonable to try to stimulate adequate performance through performance appraisals, nor fair to base salary, dismissal, or other negative decisions on such an appraisal. No appraisal program can substitute for sound selection, placement, and training programs. Poor performance represents someone else's failure.

In many cases, the validity of ratings is reduced by supervisory resistance to making the ratings. Rather than confront their less effective subordinates with negative ratings, negative feedback in appraisal interviews, and below-average

salary increases, supervisors often take the more comfortable way out and give average or above-average ratings to inferior performers. Performance appraisal ratings can boomerang when communicated to employees. Negative feedback (i.e., criticism) not only fails to motivate the typical employee, but also can cause him to perform worse Only those employees who have a high degree of self-esteem appears to be stimulated by criticism to improve their performance. Performance appraisals interfere with the more constructive coaching relationship that should exist between a superior and his subordinates. Performance appraisal interviews tend to emphasize the superior position of the supervisor by placing him in the role of judge, thus countering his equally important role of teacher and coach. This is particularly damaging in organizations that are attempting to maintain a more participative organizational climate

The most commonly used appraisal techniques or Method include:

Essay appraisal. Graphic rating scale. Field review. Forced-choice rating. Critical incident appraisal. Management-by-objectives approach. Work-standards approach. Ranking methods.

1. Essay appraisal
In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight. The assumption seems to be that an honest and informed statement -either by word of mouth or in writingfrom someone who knows a man well, is fully as valid as more formal and more complicated methods. The biggest drawback to essay appraisals is their variability in length and content. Moreover, since different essays touch on different aspects of a man's performance or personal qualifications, essay ratings are difficult to combine or compare. For comparability, some type of more formal method, like the graphic rating scale, is desirable.

2. Graphic rating scale

A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employees level of performance for each trait. This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication. The graphic scale has come under frequent attack, but remains the most widely used rating method. In a classic comparison between the "old-fashioned" graphic scale and the Much more sophisticated forced-choice technique, the former proved to be fully as valid as the best of the forced-choice forms, and better than most of them. (4) It is also cheaper to develop and more acceptable to raters than the forced-choice form. For many purposes there is no need to use anything more complicated than a graphic scale supplemented by a few essay questions.

3. Field review
When there is reason to suspect rater bias, when some raters appear to be using higher standards than others, or when comparability of ratings is essential, essay or graphic ratings are often combined with a systematic review process. The field review is one of several

techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. This group-judgment technique tends to be more fair and more valid than individual ratings and permits the central staff to develop an awareness of the varying degrees of leniency or severity -as well as bias- exhibited by raters in different departments. On the negative side, the process is very time consuming.

4. Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party. Although there are many variations of this method, the most common one asks raters to choose from among groups of statements those which best fit the individual being rated and those which least fit him. The statements are then weighted or scored, very much the way a psychological test is scored. People with high scores are, by definition, the better employees; those with low scores are the poorer ones. Since the rater does not know what the scoring weights for each statement are, in theory at least, he cannot play favorites. He simply describes his people, and someone in the personnel department applies the scoring weights to determine who gets the best rating. The rationale behind this technique is difficult to fault. It is the same rationale used in developing selection test batteries. In practice, however, the forced-choice method tends to irritate raters, who feel they are not being trusted. They want to say openly how they rate someone and not be second-guessed or tricked into making "honest" appraisals. A few clever raters have even found ways to beat the system. When they want to give average employee Harry Smith a high rating, they simply describe the best employee they know. If the best employee is Elliott Jones, they describe Jones on Smith's forced-choice form. Thus, Smith gets a good rating and hopefully a raise. An additional drawback is the difficulty and cost of developing forms. Consequently, the technique is usually limited to middle- and lower-management levels where the jobs are sufficiently similar to make standard or common forms feasible. Finally, forced-choice forms tend to be of little value- and probably have a negative effectwhen used in performance appraisal interviews.

Critical incident appraisal

The discussion of ratings with employees has, in many companies, proved to be a traumatic experience for supervisors. Some have learned from bitter experience what General Electric later documented; people who receive honest but negative feedback are typically not motivated to do better - and often do worse - after the appraisal interview.

Consequently, supervisors tend to avoid such interviews, or if forced to hold them, avoid giving negative ratings when the ratings have to be shown to the employee. One stumbling block has no doubt been the unsatisfactory rating form used. Typically, these are graphic scales that often include rather vague traits like initiative, cooperativeness, reliability, and even personality. Discussing these with an employee can be difficult. The critical incident technique looks like a natural to some people for performance review interviews, because it gives a supervisor actual, factual incidents to discuss with an employee. Supervisors are asked to keep a record, a "little black book," on each employee and to record actual incidents of positive or negative behavior. For example: Bob Mitchell, who has been rated as somewhat unreliable, fails to meet several deadlines during the appraisal period. His supervisor makes a note of these incidents and is now prepared with hard, factual data: "Bob, I rated you down on reliability because, on three different occasions over the last two months, you told me you would do something and you didn't do it. You remember six weeks ago when I. . ." Instead of arguing over traits, the discussion now deals with actual behavior. Possibly, Bob has misunderstood the supervisor or has good reasons for his apparent "unreliability." If so, he now has an opportunity to respond. His performance, not his Personality is being criticized. He knows specifically how to perform differently if he wants to be rated higher the next time. Of course, Bob might feel the supervisor was using unfairly high standards in evaluating his performance. But at least he would know just what those standards are. There are, however, several drawbacks to this approach. It requires that supervisors jot down incidents on a daily or, at the very least, a weekly basis. This can become a chore. Furthermore, the critical incident rating technique need not, but may, cause a supervisor to delay feedback to employees. And it is hardly desirable to wait six months or a year to confront an employee with a misdeed or mistake. Finally, the supervisor sets the standards. If they seem unfair to a subordinate, might he not be more motivated if he at least has some say in setting, or at least agreeing to, the standards against which he is judged?

Management by objectives
Involves setting specific measurable goals with each employee and then periodically reviewing the progress made. a. Set the organizations goals. b. Set departmental goals.

c. d. e. f.

Discuss departmental goals. Define expected results (set individual goals). Performance reviews. Provide feedback.

At the beginning of the review period, meet with employee and agree on goals for the employee to achieve by the end of the period 1. Involve employee in setting goals 2. Measurable goals 3. Challenging but realistic, difficult but achievable At the end of the review period, meet with employee and, for each goal, determine if the goal has been achieved A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager

MBO Objectives should be:

Specific (not general and vague, or activity focused with an unclear purpose) Measurable Achievable (not over optimistic/pessimistic) Realistic (not too numerous and unbalanced) Time specific (not indeterminate) - focus on milestones

7. Work-standards approach
Instead of asking employees to set their own performance goals, many organizations set measured daily work standards. In short, the work standards technique establishes work and staffing targets aimed at improving productivity. When realistically used, it can make possible an objective and accurate appraisal of the work of employees and supervisors. To be effective, the standards must be visible and fair. Hence a good deal of time is spent observing employees on the job, simplifying and improving the job where possible, and attempting to arrive at realistic output standards.

It is not clear, in every case, that work standards have been integrated with an organization's performance appraisal program. However, since the work-standards program provides each employee with a more or less complete set of his job duties, it would seem only natural that supervisors will eventually relate performance appraisal and interview comments to these duties. I would expect this to happen increasingly where work standards exist. The use of work standards should make performance interviews less threatening than the use of personal, more subjective standards alone. The most serious drawback appears to be the problem of comparability. If people are evaluated on different standards, how can the ratings be brought together for comparison purposes when decisions have to be made on promotions or on salary increases? For these purposes some form of ranking is necessary. 8. Ranking methods For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this. Comparing people in different units for the purpose of, say, choosing a service supervisor or determining the relative size of salary increases for different supervisors, requires subjective judgment, not statistics. The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking.

9. Alternation ranking
Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. In this method, the names of employees are listed on the left-hand side of a sheet of paper preferably in random order. If the rankings are for salary purposes, a supervisor is asked to choose the "most valuable" employee on the list, cross his name off, and put it at the top of the column on the right-hand side of the sheet. Next, he selects the "least valuable" employee on the list, crosses his name off, and puts it at the bottom of the right-hand column. The ranker then selects the "most valuable" person from the remaining list, crosses his name off and enters it below the top name on the right-hand list, and so on.

10. Paired-comparison ranking

Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which the better employee of the pair is: This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome.

11. Forced distribution method

1. Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories. 2. Evaluator must place a fixed percentage of employees in each performance category Example: 10% must be rated 5 = Excellent 20% must be rated 4 = Very satisfactory 50% must be rated 3 = Satisfactory 15% must be rated 2 = Unsatisfactory 5% must be rated 1 = Very unsatisfactory -----5-------4-------3-------2-------1-----Excellent

Poor

No more than 5% of employees should receive a 5 rating. At least 50% of employees should receive a rating of 3 or lower

Key Learning
Performance Appraisals help people get better at what they do How a real give and take can uncover hidden motivations Ways to encourage top performers to do better How to overcome objections to 360-degree feedback Why on-going feedback reduces difficulties at the performance appraisal meeting The importance of staying focused on work-related issues

Performance manager Role

Set, track and measure goals and objectives. Set reminders of upcoming reviews, performance milestones and due dates.

Provides expert advice to deal with performance issues properly and quickly. Access past and present reviews for easy reference. Employee log tracks performance year round. Access coaching ideas and expert, context-sensitive advice and tips. Import employee data from your HRIS.

Purposes of Performance Appraisal

Evaluation
Performance Measurement Compensation Motivation

Development / Other
Management Development Identification of Potential Feedback Human Resource Planning Communications Performance Improvement Research on legal Compliance

Why appraise performance?

Appraisals play an integral role in the employers performance management process. Appraisals help in planning for correcting deficiencies and reinforce things done correctly. Appraisals, in identifying employee strengths and weaknesses, are useful for career planning

Appraisals affect the employers salary raise decisions.

Performance Appraisal Roles

Supervisors Usually do the actual appraising. Must be familiar with basic appraisal techniques. Must understand and avoid problems that can cripple appraisals. Must know how to conduct appraisals fairly.

HR department
Serves a policy-making and advisory role. Provides advice and assistance regarding the appraisal tool to use. Prepares forms and procedures and insists that all departments use them. Responsible for training supervisors to improve their appraisal skills. Responsible for monitoring the system to ensure that appraisal formats and criteria comply with EEO laws and are up to date.

Steps in Appraising Performance

Defining the job Making sure that you and your subordinate agree on his or her duties standards. and job

Appraising performance Comparing your subordinates actual performance to the standards that have been set; this usually involves some type of rating form.

Providing feedback Discussing the subordinates performance and progress, and making plans for any development required.

Strategic objectives considered

2. Job analysis

3. Strategic choices in PA a. Purpose of PA c. PA information b. PA raters d. PA rating format 4. Performance standards 5. Coaching and feedback 6. Tie to other performance management activities 7. Evaluation

Designing the Appraisal Tool

What to measure? Work output (quality and quantity) Personal competencies Goal (objective) achievement

How to measure? Graphic rating scales Alternation ranking method

Behavioral Observation Scales (BOS):

Evaluators rate the frequency with which an employee engages in specific behaviors Example: on a list of possible employee behaviors, rate how often the employee engages in each behavior using a rating scale where: 1 = almost never 5 = almost always Weighted checklist: from a list of possible employee behaviors, check off the ones that apply to the employee

Behaviorally anchored rating scale (BARS)

An appraisal method that uses quantified scale with specific narrative examples of good and poor performance.

Replace the vague descriptors in a traditional rating scale with specific examples of performance Example: Customer assistance

5 = could be expected to volunteer to help customer and to walk with customer to desired product location 4 = could be expected to walk with customer to desired product location when asked for help by customer 3 = could be expected to tell and point customer to where the desired product is located 2 could be expected to shrug shoulders and walk away when asked for assistance by customer 1 = could be expected to hide from customers in the employee break-room

Developing BARS
Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument

Advantages of using BARS

A more accurate gauge Clearer standards Feedback Independent dimensions Consistency Job-relevant measures of performance Involves employees in developing scales

Disadvantages:
1 More work to develop BARS (time & money) 2 Employees may not consistently fit into one of the BARS categories (solution to this problem is BOS)

Computerized and Web-Based Performance Appraisal

Performance appraisal software programs Keep notes on subordinates during the year. Electronically rate employees on a series of performance traits. Generate written text to support each part of the appraisal. Electronic performance monitoring (EPM) Having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance. Potential Rating Scale Appraisal Problems Unclear standards An appraisal that is too open to interpretation. Halo effect Occurs when a supervisors rating of a subordinate on one trait biases the rating of that person on other traits. Central tendency A tendency to rate all employees the same way, such as rating them all average.

A Graphic Rating Scale with Unclear Standards

Note: For example, what exactly is meant by good, quantity of work, and so forth?

Bias The tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings employees receive.

How to Avoid Appraisal Problems?

Learn and understand the potential problems and the solutions for each. Use the right appraisal tool. Each tool has its own pros and cons. Train supervisors to reduce rating errors such as halo, leniency, and central tendency. Have raters compile positive and negative critical incidents as they occur.

Who Should Do the Appraising?

The immediate supervisor Peers Rating committees Self-ratings Subordinates 360-Degree feedback

Advantages and Disadvantages of Appraisal Tools

The Appraisal interview

How to conduct the appraisal interview Talk in terms of objective work data. Dont get personal. Encourage the person to talk. Dont tiptoe around.

How to handle a defensive subordinate Recognize that defensive behavior is normal. Never attack a persons defenses. Postpone action. Recognize your own limitations.

How to criticize a subordinate

Do it in a manner that lets the person maintain his or her dignity and sense of worth.

Criticize in private, and do it constructively. Avoid once-a-year critical broadsides by giving feedback on a daily basis, so that the formal review contains no surprises. Never say the person is always wrong Criticism should be objective and free of any personal biases on your part.

How to ensure the interview leads to improved performance

Dont make the subordinate feel threatened during the interview. Give the subordinate the opportunity to present his or her ideas and feelings and to influence the course of the interview. Have a helpful and constructive supervisor conduct the interview. Offer the subordinate the necessary support for development and change.

How to handle a formal written warning

Purposes of the written warning To shake your employee out of bad habits. Help you defend your rating, both to your own boss and (if needed) to the courts. Written warnings should: Identify standards by which employee is judged. Make clear that employee was aware of the standard. Specify deficiencies relative to the standard. Indicates employees prior opportunity for correction.

Functions of Performance Appraisal

Employee Development Tool Assist employee in achieving career progression goals Determine training needs

Administrative Tool Link rewards to performance Pay increases, promotions, demotions, dismissals, disciplinary actions

Evaluate HRM policies and programs Example: before-after study (pretest-posttest design)

Performance Feedback
Employees need good feedback Allow time & eliminate distractions Types of feedback sessions: Tell-and-sell Tell-and-listen Problem-solving Mixture of tell-and-sell and problem-solving Doesnt hurt to cover both administrative (e.g., pay increase) and developmental (e.g., future goals) issues in one feedback session Provide specific feedback : Dont say: Youre always late Do say: You were more than 5 minutes late on 25 separate occasions in the last 3 months. This is unacceptable. We need to develop (1) a specific goal concerning prompt attendance, and (2) an action plan that you will follow to achieve the goal.

Guidance on Rating Formats

Most formats are acceptable, but note that ... Behaviors and outcomes preferred to traits. System, forms should be work-related and job-related. Performance dimensions, rating scales, and performance standards should be reliable and valid. System, forms should be accepted and useful to the raters and ratees.

Common Rating Errors

Halo and horn: rater erroneously rates similarly on all performance dimensions Restriction of range error: Leniency: using only the high portion of the rating scale. Strictness: using only the low portion of the rating scale. Central tendency: using only the middle points of the rating scale.

Situational (System) Factors to Consider in Determining the Causes of Performance Problems

Poor coordination of work activities among workers. Inadequate information or instructions needed to perform a job. Low-quality materials. Lack of necessary equipment. Inability to obtain raw materials, parts, or supplies. Inadequate financial resources. Poor supervision. Uncooperative coworkers and/or poor relations among people. Inadequate training. Insufficient time to produce the quantity or quality of work required. A poor work environment (for example, cold, hot, noisy, frequent Interruptions.) Equipment breakdown.

Reasons Appraisal Programs Fail

Lack of top-management information and support Unclear performance standards Rater bias Too many forms to complete Use of the appraisal program for conflicting purposes

Managerial Issues Concerning Appraisals

Managers feel that little or no benefit will be derived from the time and energy spent in the process. Managers dislike the face-to-face confrontation of appraisal interviews. Managers are not sufficiently adept in providing appraisal feedback. The judgmental role of appraisal conflicts with the helping role of developing employees.

Common Appraisal Problems

Inadequate preparation on the part of the manager. Employee is not given clear objectives at the beginning of performance period. Manager may not be able to observe performance or have all the information. Inconsistency in ratings among supervisors or other raters. Performance standards may not be clear. Rating personality rather than performance. The halo effect, contrast effect, or some other perceptual bias. Inappropriate time span (either too short or too long). Overemphasis on uncharacteristic performance. Inflated ratings because managers do not want to deal with bad news. Subjective or vague language in written appraisals.

Organizational politics or personal relationships cloud judgments. No thorough discussion of causes of performance problems. Manager may not be trained at evaluation or giving feedback. No follow-up and coaching after the evaluation

Legal Guidelines for Appraisals

Performance ratings must be job-related. Employees must be given a written copy of their job standards in advance of appraisals. Managers who conduct the appraisal must be able to observe the behavior they are rating. Supervisors must be trained to use the appraisal form correctly. Appraisals should be discussed openly with employees and counseling or corrective guidance offered. An appeals procedure should be established to enable employees to express disagreement with the appraisal.

Sources of Performance Appraisal

Manager and/or Supervisor Appraisal done by an employees manager and reviewed by a manager one level higher.

Self-Appraisal Performance By the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.

Subordinate Appraisal Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes.

Peer Appraisal Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employees manager.

Team Appraisal Appraisal, based on TQM concepts, recognizing team accomplishment rather than individual performance.

Customer Appraisal Appraisal that seeks evaluation from both external and internal customers.

Pros and Cons of 360-Degree Appraisal

PROS The system is more comprehensive in that responses are gathered from multiple perspectives. Quality of information is better. (Quality of respondents is more important than quantity.) It complements TQM initiatives by emphasizing internal/external customers and teams. It may lessen bias/prejudice since feedback comes from more people, not one individual. Feedback from peers and others may increase employee self-development. CONS The system is complex in combining all the responses. Feedback can be intimidating and cause resentment if employee feels the respondents have ganged up. There may be conflicting opinions, though they may all be accurate from the respective standpoints. The system requires training to work effectively. Employees may collude or game the system by giving invalid evaluations to one another. Appraisers may not be accountable if their evaluations are anonymous.

Rater Errors
Error of Central Tendency .A rating error in which all employees are rated about average.

Leniency or Strictness Error A rating error in which the appraiser tends to give all employees either unusually high or unusually low ratings.

Recency Error A rating error in which appraisal is based largely on an employees most recent behavior rather than on behavior throughout the appraisal period

Contrast Error A rating error in which an employees evaluation is biased either upward or downward because of comparison with another employee just previously evaluated

Similar-to-Me Error An error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection.

Summary of Appraisal Methods

Trait Methods

Advantages Are inexpensive to develop Use meaningful dimensions Are easy to use Disadvantages Have high potential for rating errors Are not useful for employee counseling Are not useful for allocating rewards Are not useful for promotion decisions

Behavioral Methods
Advantages Use specific performance dimensions Are acceptable to employees and superiors Are useful for providing feedback Are fair for reward and promotion decisions Disadvantages Can be time-consuming to develop/use Can be costly to develop Have some potential for rating error

Results Methods
Advantages Have less subjectivity bias Are acceptable to employees and superiors Link individual to organizational performance Encourage mutual goal setting Are good for reward and promotion decisions

Disadvantages
Are time-consuming to develop/use May encourage short-term perspective

May use contaminated criteria May use deficient criteria

Performance appraisals fail because

Lack of appraisal skills Manager not taking appraisal seriously Manager not prepared Employee not receiving ongoing feedback Manager not being honest or sincere Ineffective discussion of employee development 7Unclear languages Insufficient rewards for performance Manager lacks information\

10 Tips for Effective Performance Appraisals

Well-written performance appraisals are among the most effective tools for managing by objective and for developing people. Use these 10 Tips for Effective Performance Appraisals to significantly increase your team's effectiveness and perceived value within your organization. 1. Increase your employees' comfort level with performance appraisals. At the beginning of each review period, explain the appraisal process, rating system, and appraisal form to your employees. Agree on performance objectives and measurements for the upcoming review period

2. Take full advantage of performance appraisals. Start thinking about appraisals as an opportunity to increase the efficiency and effectiveness of your team. Use them to: Clarify team and individual responsibilities and priorities so that everyone stays focused on activities that produce desired results. Summarize continuing on-the-job discussions to reinforce their significance. Document performance of the entire review period; recognize team and individual accomplishments and contributions. Measure performance based on mutually understood job-relevant criteria. Identify and suggest actions to improve results. Appraise

3. In addition to keeping your own records, encourage your employees to keep ongoing records: Updates to team and individual objectives when Company objectives change, progress reports, commendations, descriptions of results achieved with special assignments, documentation of ongoing coaching discussions and of feedback from other business areas. Having the employee's input will let you know what the employee considers important (that is how well you are communicating priorities) and will help ensure an accurate, fair appraisal. 4. Use examples, facts, and accomplishments drawn from these ongoing records to present a factual, complete summary of employees' results. Specific wording keeps employees focused on objectives, proves ratings, and gives employees something concrete to "latch on to" to improve or maintain performance. Finally, specific, accurate wording protects the Company in the unlikely event of legal proceedings. 5. Use objective (factual) wording so that you concentrate on observed behaviors rather than on personality traits or "attitude.

Instead of "Swati has a bad attitude, Write, "Swati customer interactions meet two of Customer Service's 'Five Criteria for Excellence.' Improvement areas are 'focus,' 'courtesy and 'listening.'" 6. Help employees achieve their full potential through recognition and encouragement. Use constructive wording to cite accomplishments and suggest improvements. Be thorough and honest, but be careful to consider the effect of negatively worded comments on employees. Comment on only a few development areas: those that are critical to your team's success and those that you have discussed previously with the employee. Translate those areas into improvement suggestions. 7. Use benefit wording to reinforce desired behavior and motivate employees. Remind your employees and your next level manager of the value and significance of your employees' actions 8. Use performance appraisals to summarize the year's performance and your discussions with your employees, not to introduce development areas for the first time. Include no "surprises." Feedback to an employee has its most significant impact immediately after a specific behavior has occurred. Always deal at once with unsatisfactory performance, especially serious conduct violations employee performance is usually best evaluated by means of a standard form followed by a superior-subordinate discussion. Through feedback provided during this discussion, the purposes of the performance appraisal are served. How effectively they are served depends on how the appraisal form is designed and how the discussions are conducted. Our service therefore focuses on these two aspects of the performance appraisal system. The aim is to minimize the difficulty supervisors encounter when appraising the performance of and giving feedback to their subordinates. We achieve this through training in appraisal principles and techniques and, when requested, revision of an organization's performance appraisal forms, so that they contain valid performance criteria and standards and in turn yield more valid and reliable performance data.

9.

When writing action plans for development needs: Keep an immediate or short-term focus. Link the plan and any training you recommend to team business objectives. Write clearly stated and task-related action plans The performance appraisal focused on significant accomplishments and critical improvement areas that are tied to your team's business objectives

XING PERFORMANCE EXCELLENCE

Preparation (self-assessment) Form

This form is intended to assist your preparation for your forthcoming Performance Excellence Review. Remember that the value of your review discussion will largely depend on what you contribute to it. Full Name: Appraisal Date: Job Title: Location:

CURRENT JOB PERFORMANCE Against which areas of your Personal Objectives have you been most successful? Why?

How could your overall performance have been improved? By yourself By your Manager

SKILLS DEVELOPMENT What do you consider to be your strengths?

What skills I characteristics do you need to develop further?

What do you see as your priority role objectives in the forthcoming 6 months / years What is your personal development plan? What actions are necessary to make this happens?

PERSONAL DEVELOPMENT PLAN

PDP is used to assist in the personal development plan of the employee. It records all actions needs to be taken in order that employee meets his job requirement fully, and grows in potential. Its considered as an important tool in Xerox.

The starting point of personal development is a thorough review of the previous years performance against plan, as well as the appraisal review together this will point those areas of improvement in you, which if addressed, will enhance your current worth as well as potential, to yourself and to the organization. Personal Development Plan is a key document which can be used to summaries your current activities, identify your aims and goals over a defined period and outline the activities required to achieve these goals. As far as possible you should bring together your personal aspirations and your organizational needs resulting in an agreed personal development plan for the immediate future.

Personal Developmental Goals

In the process, staff members also set personal developmental goals that will increase their ability to contribute to the success of Xerox. The accomplishment of these goals also provides a foundation for their career success whether in your organization or elsewhere, so they ought to be motivated and excited about achieving these goals. PDP meetings are held, at least, quarterly in Xerox to review the staff person's progress on the overall goals and objectives. Your staff person's progress on the action plans that result from the PDP goals is reviewed at your weekly one-on-one meeting. This weekly meeting allows to offer assistance and to identify any help or tools the staff person needs to succeed. Personal Development Planning in Xerox will help to define and explore your goals and map out ways to turn them into reality. It will enable you to articulate the skills you are developing now in order to open up opportunities in the future. Using the templates in this guide you can build up your Personal Development Plan from goal-setting exercises, together with reflective notes and useful feedback. It will grow according to your input and should prove an excellent tool to manage your own development.

Personal Development Planning

Personal Development Planning (PDP) describes the process in which HE teachers encourage students to reflect upon and evaluate their own learning experiences and essentially plan for their own development. It is defined as a structured and supported

process undertaken by an individual to reflect upon their own learning, performance and / or achievement and to plan for their personal, educational and career development.'

Why do we need Personal Development Planning?

PDP is a way of providing evidence about what learners can do and how they have developed over a period of time. It can be used simply to monitor student progress, but increasingly PDP is used to provide evidence of a process of learning and development. Portfolios and personal development plans can encourage students to become reflective and critical about their learning, requiring them to provide evidence of their learning or skill developed.

Benefits
You can either print your documents, or store them to disk. However you decide to manage your files, make sure you keep them safe to use as a reference when you leave University. Improves organizational effectiveness by linking an organization's performance development processes to its organizational imperatives Increases the coverage and effectiveness of an organization's performance development processes by simplifying their execution and management Enhances individual and organizational productivity and growth by pinpointing development needs and facilitating the creation of individual and organizational development plans Augments an organization's breadth and depth of leadership talent by accelerating the identification and development of future leaders Raises productivity and reduces recruitment costs by improving the retention of key employees through increased development and advancement opportunities Provides a powerful database of information for analysis of individuals, groups, business units or organizations Facilitates oversight and increases participation in the process for populations of all sizes by providing powerful administrative tools for monitoring and follow-up Eliminates subjective bias and promotes multiple points of view Promotes participation by guiding the participants through the performance development processes Makes the processes practical and time efficient Simplifies the normally cumbersome workflow processes and eliminates administrative bottlenecks Adapts easily to any organizational structure Facilitates integration with other processes and databases for richer results Provides extraordinary adaptability and comprehensive functionality

Performance Development Plan

Developing employee performance furthers the mission of the organization and enhances the overall quality of the workforce by promoting a climate of continuous learning and professional growth; helping to sustain employee performance at a level which meets or

exceeds expectations; enhancing job- or career-related skills, knowledge and experience; enabling employees to keep abreast of changes in their fields; making employees competitive for employment opportunities, promoting affirmative action objectives; and motivating employees. Performance development plans may be considered at each stage of the performance management process. An important component of the performance management process is development of employees' work-related skills, knowledge and experience. The development process offers another opportunity for the employee to work collaboratively to improve or build on his or her performance and to contribute to organizational effectiveness.

Preparing of Performance development plan

There are four principal occasions when preparation of a performance development plan might be considered in Xerox: After review of performance standards, As a part of the ongoing process of observation and feedback, As the final element of the performance appraisal process, When an employee initiates a request for education or development opportunities.

At any of above points in the performance management process, one may discuss training, education or development opportunities with employee. Identify the specific steps to be taken and document a strategy for accomplishing the objectives. That documentation should include: A description of the specific steps to be taken The names of those who will assist the employee End dates for the completion of the plan's objectives A statement of how successful completion of the plan's objectives will be appraised

Below is a list of examples of activities which could be considered appropriate for employee development in Xerox. On-the-job training cross training Course work from external providers, schools, etc. Attending or participating in institutes or conferences Membership in professional organizations Participation in professional organizations Coaching or consulting Writing professional articles or books Individual career counseling New employee orientation Working with a mentor Management development programs (Management Skills Assessment Program, Middle Management Advance, etc.)

Attending teleconferences Internships Self-study or reading assignments Computer-based training Participation in projects Membership in campus organizations (e.g., staff associations) Participation on teams, task forces, or committees

Performance development plans should be considered with the needs of the organization and the needs of the employee in mind. What are the new functions that unit will need to perform in the near term and over the next two to five years? What knowledge and skills will employees need to develop in order to perform these functions?" Doing an assessment of unit's future goals and Objectives will enable to identify development opportunities for employees that will also benefit the organization.

Some of the factors which may be appraised in deciding whether to authorize an employee's participation in a particular activity are: the employee's need for training the employee's career plan the needs and strategic goals of the organization the affirmative action objectives of the organization the resources of the department the advantages of one type of training over another the training needs of other department employees

XING PERFORMANCE EXCELLENCE

Personal Development Plan

Name Employee No. Level Unit / Current Role Job Start Date

Development Actions

Objective
(Specify if for current or future role)

Action

Measure ment/ Evidence of learning

Method / Time / Location

Cost

Target Completion

Status / Completion Date

Validation
Employee Signature Date Line Manager Signature Date Second Level Signature Date

PERFORMANCE EXCELLENCE PLAN

The Performance excellence Plan (PEP) is an integral part of Xerox lean six sigma strategy. The pep is to align strategies and performance objectives across the entire corporation. By which company managed performance to ensure to deliver improved and profitable business result which increases shareholders value. This allows them to reinvest in the growth of the company.

PEP is based on sound quality principles and effective performance management. The process consists of three phases: setting direction deploying direction Delivering and inspecting results. (Daily work process)

The performance Excellence Process replaced the managing for results process and local
level performance management process and integrated them into a single, global process for the corporation .pep is applicable to all performance levels (operating unit, organization /function, department, team /workgroup, individual.). The Performance Excellence Plan helps to achieves objectives, measures, and targets.