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

1. Presented by By:
Syed Muhammad Humza Hussain Roll No. 12544
Adnan Razi Roll No. 12525
Taslim Kausar Roll No. 12773
Syed Jahanzeb Razi Pasha Roll No. 13971
Azeem Roll No. 17040
S M Sajjad Hussain Roll No. 12073
Muhammad Shoaib Sadiq Roll No. 14841

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

3. This presentation has been made on a recently established Fast-
Moving Consumer Goods (FMCG) company named as Tasty
Foods Industries (Pvt) Limited. In this subject we put a glance on
the performance of this company in every department (Finance,
Hunan Resource, Procurement, Production, Warehouse,
Marketing, Sales, Logistics, Accounts and Legal). We have
gathered every department objective, procedures and techniques
which they have adopted to accomplish their goal and compare it
with the Company’s Vision and Goals. We have observed that
there are some departments where performances are not aligned
with the company’s goals that’s why designed a yardstick to
measure the performance as per the requirement of the company.
We also addressed individual goals of every employee associated
with the company & design a performance level which needed to
be meet for betterment of both the company and the individual as
well.

4.  Performance management is an ongoing process of
communication between a supervisor and an
employee that occurs throughout the year, in order to
accomplish the strategic objectives of the organization

5. STRATEGY STATEMENT
“There is always room for improvements. We design process
which contribute towards continuous improvement for the
company’s growth and also provide a career path for
ambitious employees”
 Detail of Strategy:
 Identify the major department of the company.
 The desired performances of departments which are aligned with
the company’s performance.
 The desired performance level of individual in different
departments.
 Performance measuring tool.
 The keys people who will monitor their department performance.
 Appreciation for outstanding performers
 Addressing below average performers.

6. PERFORMANCE MANAGEMENT PROCESS
PMP
Plan
CoachEvaluate

8. Determine
the major
duties
Setting smart
goals
Performance
standards
Evaluate the
performance
Feedback
Rewards and
appreciation

9. Determining the major duties & responsibilities:
 Review the employee’s job description.
 Identify and review the relationship between the employee’s job
description (JD) and his or her work.
 Develop a work plan that outlines the tasks and the measures or
standards that will be used to evaluate performance.
 Identify critical areas that will be key performance objectives for
the year.
 Identify training objectives that will help the employee grow his or
her skills, knowledge and competencies related to the work.
 Identify career development objectives that can be part of longer-
term career planning.

10. Setting smart goals:
SPECIFIC Clearly specify the task to be done, when it must be
completed, who is to accomplish it, and how much is to be
accomplished.
MEASUREABL
E
Use multiple measures if possible, for example, quantity,
quality, time frame and cost. Ask questions such as: How
much? How many? How will I know when it is
accomplished?
ATTAINABLE Ensure there is a reasonable path to achievement and an
excellent chance that objectives will be accomplished.
RELEVANT Goals should be aligned with the organization’s overall
mission or strategy. Goals measure outcomes, not
activities.
TIME BASED Set a clear time frame for achieving performance
objectives/goals. In most cases, objectives must be
completed by the end of the performance review period.

12.  Standards that can evaluate the performance are the basic main
tool which provide a clear picture of the standing position of an
employee. The main features of standards are mentioned below:
1. Quality Standards:
In Quality we focus on four M(s).
 Man
 Material
 Machinery
 Methodology

13. 1. Quality Standards:
 Examples:
 For Man, the quality refers to the mature Job analysis which
brings right people for the right post and the policies which
attracts them to serve for a long period.
 For Material, the procurement department it is the responsibility of
procurer to ensure that the inventory they receive are as per the
quality standards or not & if found any low-quality inventory, so
should return the same immediately with a credit note.
 The Machinery, that are operating in the factory are working at
their best capacity and have negligible waste.
 The Procedures, that we are following are cost effective and time
saving or not.

14. 2.Quantity:
 How much work is produces, A quantity measure can be
expressed as an error rate, as how much error is acceptable or
negligible in production. How much to increase sales?
 Example: The average production of our factory should be
60,000 ton per year
3. Time restraint:
 Time is one of the most important things to standardize, the
perfect time of taking risk can bring huge profit, at the same time
if the time of taking risk is not favourable than it could be the end
of any entity. Timeline standards should be followed strictly to
cover any loss which may occur due to time barred. In our
company time has to be meets on daily bases in form of sales to
lower the chances of being stock out/ out of stock.

15. 4. Cost effectiveness:
 It is the cost which make our product less profitable so we make a
system where we reward all those employees who manage their
departmental budget to its best capacity.
5. Behavior:
 You must have positive attitude when you are inside our
organization.
 There are ways channel/hierarchy in our organization to follow for
any grievances or putting up idea.
 There are certain behaviors which are intolerance to the
organization such as on job relationship scandals, harassments,
shouting on colleagues either senior or junior.

17.  In coaching step, we define & explain the duties & responsibilities
to every department setting up department & make a comparison
b/w the work they are currently doing and their respective JD’s, in
this pertain we conduct meetings with upper level management to
lower level management and guide them the way to do work.

18.  Mentor the employee:
 Provide accurate and timely feedback.
 Assess resources which can be utilized by the employee.
 Set priorities that are aligned with the company’s goal as per their
importance.
 Recommend the changes in the work method to improve
performance.

20.  Every supervisor/manager should communicate to its span over
his/her performance and his or her behavior that may affect the
objective. Feedback has to factor that are stated below.
 Positive Feedback:
 Appreciate good performance of the employee will increase their
motivational level in this regard ever manager can issue letter of
appreciation to it prospective subordinate mentioning the reason of
appreciation. He has another platform that is employee’s social web
page where a top performer list is published every month and an
appreciation board is also placed inside the organization to paste the
same list on monthly basis.
 Constructive Feedback:
 Feedback should be descriptive, detailed and focus on the action
rather than general statements the supervisor and manager should
define cause and effects of low performance. The core purpose is to
make the employee realize that where they stand now and what is
the expected performance and behavior from him.

21.  Ongoing performance monitoring and feedback:
 It’s included in the task of every manager to monitor its
subordinates and give immediate feedback, also note & evaluate
rating of performance from time to time.

23.  Performance assessment (appraisal):
 Appraisal is due after the performance year ends (normal year)
and is has to be completed within 3 months ended 31st March so
that the increment can be made in start of fiscal year. In which the
supervisor or manage evaluate the self-assessment which was
made by the employee themselves and adjust the points by
putting their view upon it and justify their rating, the employee can
argue on their rating, after mutual consensus the manager
forward that to HR for final rating & rewards
 The Appraisal has three part:
1. Self-Evaluation.
2. Manager endorsement or defy.
3. Final Rating by HR.

24.  There are two forms in the appraisal:
1. From I (Self Assessment by Employee).
In Form I the employee rate them as under:
Rating Scale:
1 - Outstanding/Role Model 2 – Above Average
3 –Average 4 - Improvement Needed/ below average
2. Form II (Managers Assessment over employee):
From II is prepared when the manager negotiations on
the above rating

25.  On the above basis we evaluate each employee and categories them as per their
level of performance.
Appraisal strategy/Performance rating:
 We adopt a hybrid method of self-evaluation and competency rating, this
method consists of reward points for every task, in this pertain we categorized the
whole task as:
 Objective/Goal achievement points (Quality & Quantity) 85 points (divided in
no. of task)
 Time points (Punctuality points, Leaves points, Behavior) 5+5+5=15 points
 Supersede point (additional points for getting 100 points)10 Points
Rating Criteria
 If you get 100 points you get 10 plus points = 110 points outstanding performer
 Above 95 points are considered to be above average performer
 Above 75 points are considered to be average performer
 Below 75 points are considered to be low rating or below average performer

27.  Reward for outstanding performer:
 Promotion for 3 year consistent supersede performance + 200%
cash reward on salary (two months salary) + 7 days leaves +
increment (Normal + performance +Market Gap adjustment, if
any)
 Reward for above average performer:
 50% cash reward on salary + increment (Normal + Performance)
 Reward for average performer:
 25% cash reward on salary + normal increment
 Reward for below average performer:
 No rewards + inflationary rate increment

28.  Basic reason to establishing this department is to Identify, justify,
motivate and appreciate those incumbents whose contribution is
outstanding and are credible assets for the organization. We
believe that everybody should get what they deserve.
 The reason to form this department is because our target sales
have decline and we have many quality, stockout, procrastination,
segregated department and individual objective issues that is why
we proposed this department to systemize and categorize the
company’s performance so that the actual/collective goal can be
achieve