KRA BASEDKRA BASEDPERFORMANCE PERFORMANCE

APPRAISAL APPRAISAL SYSTEMSYSTEM

Flow of the presentation

• Overview-Performance Appraisal System

• Basics - KRA - Key result areas & KPI - Key performance indicator

• KRA derivation process

• Tamarind Individual KRA System

• KRA based Performance Appraisal Cycle

• Appraisal Feedback and it’s utilization

• Recap

Performance Appraisal

• Annual Activity with mid-year reviews • Two way evaluation process of employee

performance. • Measures performance during the year,

setting up future goals.• Basis for decision –growth in terms of

Remuneration, Promotion, training.• Identify potential for additional and

higher roles and responsibilities

Why KRA based Performance Appraisal?

Don't measure yourself by what Don't measure yourself by what you have accomplished, but by you have accomplished, but by

what you could have what you could have accomplished with your ability. accomplished with your ability. • Focused growth pathFocused growth path

• Better monitoring with growing timesBetter monitoring with growing times• Bench mark against global standardsBench mark against global standards• Scientific methodology of evaluation Scientific methodology of evaluation

towards standardization and fairness of towards standardization and fairness of the Appraisal Instrumentthe Appraisal Instrument

Meaning: KRA

• Key Result Area• Identified out of the day to day routine

activities• Primary Job objectives or Major Goals• Outcomes or Expectations of a Job

Position• Groups relevant activities under one

cluster forming a KRA

Meaning: KPI

• Activity/Assignment /Process to accomplish the main Goal/KRA.

• Process and procedure done on daily basis i.e. routine nature

• Sub Activity/s under each KRA

– Eg;- KRA- Increase profit per file

»KPI 1- Get competitive rates»KPI 2- Effective Negotiation with the

parties• There can be more than one KPI under a KRA

How KRA are derived ????

Mission and Vision derived

Individual KRA

Individual KRA

Individual KRA

Organization Objective

Management Goals

Dept Goal / Manager KRA

What do “I” do ??????

Fulfill Customer

requirements

Support Function

Hotel Booking

Leisure

Transfers

Tamarind Individual KRA (TIK) Score break- up

80%

20%

A. Target

i.e. Achievement of goals

B. Critical Behavioral Attributes

i.e. on the job behavior

Contd…

KRA 1Achieve and

Surpass the GOP

KRA 2Error Free

Operations

KRA 3Compliance

Target Score CBA Score

TIK Score

KPI 1Costing

80% 20%

100%

KPI 2Follow Up

KPI 3Negotiation

•Service oriented Industry •One organization- One Set of values•Differentiation factors - Personal Touch •Higher the responsibility, more emphasis on behavioral skills•Better the interpersonal skills, better the growth prospects •Long Term success Mantra

Significance of behavioral Attributes

Why Measure Behaviour • Communication on phone, email, chat is the mainstay

of our business• Say the right thing the right way – negotiate, convince

and convert.• Relationships determine your business• We cannot work in isolation - team work is important• Display of responsibility and leadership determines the

leaders for the future• Keeping abreast of the market environment is essential

to distinguish leaders from followers

All the above results in growth of business for thecompany and an edge over the rest, for the individual.

B. Critical Behavioral B. Critical Behavioral AttributesAttributes

==20% of TIK20% of TIK

Relationship Building and managing

Time Management

Result Orientation

Communication

Leadership

Team Management Client Orientation

Business Acumen

KRA should be……..

SPECIFIC – KRA’s should be specific and logical.

MEASURABLE – KRA’s should be quantifiable and measurable.

ACHIEVABLE – KRA’s framed should be achievable.

RELEVANT– KRA’s should be associated to job.

TIME BOUND – KRA’s framed should be defined for a specific period

Process

Rewards,Corrective steps,

New Targets

Final Performance

Appraisal

Mid-year Review & advise

Performance Appraisal

Cycle

KRA is set

KRA based Appraisal form- Page 1 (Sample)

Name: Emp. No: Designation: Department:Date of Joining:

Rating Performance Variable

1 Unsatisfactory 2 Average

3 Good

4 Excellent

5 Outstanding

Signature of the Appraisee(after self rating)

CBA Score (Section 2) 0.00TIK Score (Section 1) + (Section 2) 0.00

Signature of the Appraiser

(after Appraisal)Signature of the Reviewer

(after Moderation)

(To be filled by Appraiser in conjunction with the reviewer after the review discussion with Appraisee

Indicate specific remarks pertaining to the Appraisee’s performance, future prospect, Weaknesses and Training needs.)

PERFORMANCE SUMMARY:

Final KRA Score

Target Score (Section 1) 0.00

Performs at a fairly poor level in terms of output, quality and timeliness (50% and below)

Performs at an average level in terms of output, quality and timeliness (51-70%)

Performs at a fairly above average level in terms of output, quality and timeliness (71-90%)

Performs and Delivers the required level of output, quality and timeliness (91-99%)

Performs and Exceeds the required level of output, quality and timeliness (100% and above)

Performance Appraisal Feedback ( to be filled by Appraiser)

Reviewer:

Rating Parameters

Quantitative Achievement

Senior Consultant - Sales Last Increment: Sales Appraiser:

Review Period 1st April 2012 till 31st march 2013Last Promotion:

KRA based Appraisal form- Page 2 (Sample)

Section 1: Target Score (80% of the TIK Score)

Sr KRA Performance Indicators

Measure (Targets/

Deadlines)

Achieved (To be

filled by self)

Weightage (A)

Self rating

Appraiser's Rating (B)

Weighted avg score -

WA= (A*B)/100

Comments

1 Increase sales and market share

Achieve and Surpass the GOP targets

40 0.00

Recognize and grow new business segments and clients.

10

0.00 Effective sales plan and implementation, to increase the existing and new client business

5

0.00 Timely and result-oriented reporting, and follow-up internally and externally

10

0.00

Develop strong relationships within the team, and with clients and vendors

10 0.00

Constant upgradation of product knowledge and effective use in sales calls

10 0.00

2

Compliance of Laid down

Policies and Procedures of the company

Adherence to all the organization's policies, rules and procedures.

5

0.00 Compliance of credit policy with regards to non- credit clients / agents

10

0.00

Aggregate Total ( sum of WA)/ No. of KPIs 0.00 Target Score =Aggregate Total x 80 / 100 0.00

KRA based Appraisal form- Page 3 (Sample)

Section 2 : Critical Behavioral Attributes (CBA) (20% of the TIK Score) Critical attributes are those behavioral characteristic identified by the organization which are important to achieve one's present role and develop oneself for future role

requirement..

Sr ATTRIBUTES (Behavioral Characteristics/ Factors/Traits/Qualities) RATING SCORE (1 to 5)

Self ( A )

Appraiser ( B )

Comments

1 Communication Skills

2 Relationship Maintaining & Building

3 Time Management

4 Client Orientation

5 Results Orientation

6 Teamwork

For Assistant Managers & Above

7 Leadership

8 Business Acumen

Aggregate Total ( sum of individual Bs)/ No. of CBAs 0.00

CBA Score = Aggregate Total x 20 / 100 0.00

Appraisal Procedure

• Employee Details• Self Appraisal by the Employee• Appraisal by the Immediate Reporting

Manager• Moderation by the Reviewer i.e. Profit

Center Head• Data collection and analysis by HR• Decisions taken• New KRAs set based on the data

Bonus Policy

• Scope: Covers all the confirmed employees• Applicable for the F.Y. 1st April to 31st March• Purpose: To reward employees for their contribution• Eligibility: Junior consultant and above• Bonus amount will correspond to performance rating• Rating components: Employee weightage, Team

weightage and company weightage• Bonus earned: Revenue generating departments (i.e

Operations, Sales, MICE, CPP, GRE) can earn maximum 3 months bonus of gross salary

1

Bonus Policy (contd…)

• Bonus Earned: Support departments (i.e Accounts, HR, Administration and IT can earn maximum of 2 months gross salary)

• Eligibilty criteria : Confirmed employee as on March 31

• Scored a KRA rating of 3 and above• Scored performance rating of 3 and above.• Process• Bonus slab• Payout: Along with the salary of June

Coming Soon

Reward and recognition policy

Thank You…..