Employee Performance Management System Training

Employee Performance Management System (EIL) Overview

• Performance Management System (PMS) aims to set clear objectives and provide feedback.
• Training for managers is essential to enhance their capabilities in using PMS effectively.
• A structured PMS guide helps managers navigate the performance review process.

Performance Review Agenda

• Overview of the performance management cycle with a focus on:
  • Goals evaluation
  • Behavior evaluation
  • Mid-year and year-end reviews
  • Conducting review meetings
  • Providing constructive feedback

Objectives of the Performance Review

• Enhance managers' understanding of the performance review process.
• Offer guidance for effective target setting and performance conversations.

Expectations from Supervisors

• Key responsibilities include:
  • Differentiating and aligning employee performance.
  • Engaging and coaching employees regularly.
  • Rewarding high performance through recognition.

Key Principles for Performance Reviews

• Ensure transparency in the evaluation process.
• Encourage employees to strive for high performance.
• Facilitate individual development through constructive feedback.

Roles and Responsibilities

• Employees should prepare for evaluations and understand role expectations.
• Supervisors must provide regular feedback and ensure alignment with developmental needs.
• Function heads ensure consistent PMS operation and act as role models.
• Human Resources oversees the evaluation system, promotes best practices, and provides ongoing training.

Performance Management Structure

• Evaluations comprise both outcomes (goals) and processes (behavior).
• Individual goals should align with departmental and company goals.
• Essential competencies for each role are evaluated alongside performance metrics.

Weighting and Reflection in Evaluations

• Evaluation outcomes affect salary increases, STI, and promotions.
• Common weighting structures exist for different grades, balancing goals and behavior.

Measurement and Scoring

• A five-point scale rates goals and behavior.
• Goals can be quantitative and qualitative, with performance levels defined clearly.
• Specific achievement ratios are set by each affiliate based on business needs.

Performance Management Cycle

• Key phases include goal setting, mid-year reviews, and year-end evaluations.
• Each stage involves discussions between managers and employees to adjust goals as needed.

Importance of Goal Setting

• Goals must align with overall organizational strategies.
• Effective goal setting clarifies expectations and motivates team members.

Cascading Goals Process

• The process ensures alignment from company strategic priorities down to individual performance.
• Each managerial level communicates and aligns their goals with overall organizational aims.

Balanced Scorecard Framework

• The Balanced Scorecard approach ensures a comprehensive evaluation across four key categories.
• The performance review process supports organizational objectives and aims to mitigate risks during evaluations.### Balanced Scorecard Framework
• Flexibility in assigning weight percentages to four categories: Finance, Customer, Operation, Learning & Growth.
• Maximum total weight for each category is 70%, minimum is 10%.

Goal Setting: SMART Criteria

• Specific: Clearly define who, what, where, when, and how.
• Measurable: Use qualitative and quantitative performance indicators.
• Ambitious but Achievable: Set stretch objectives that match available resources.
• Relevant: Align goals with departmental objectives and customer needs.
• Time-bound: Establish a timeline for achieving objectives.

Writing Goals

• Align goals with action verbs, affected subjects, desired results, and timelines.
• Example: "Increase number of sales by 25% by 31st December."

KPIs for Different Functions

• Sales: Focus on revenue and new product sales.
• Marketing: Emphasize market share and customer acquisition.
• Support Function: Ensure efficient resource allocation and utilization.

Commonly Used KPIs

• Finance: Total assets, profits, gross margin, revenue from new products, cash flow.
• Customer: Satisfaction, loyalty, market share, complaints resolved.
• Operation: On-time delivery, average lead time, waste reduction.
• Learning & Growth: Training investment, employee satisfaction, cross-trained employees.

Sample Financial Goals for Support Functions

• HR: Improve internal hiring, enhance employee satisfaction, reduce training costs through digital methods.
• Finance: Maintain a cash balance for three months, negotiate favorable interest rates on cash reserves.
• Admin: Review suppliers for cost efficiency, secure good flight deals for company travel.

Translating Organizational Goals into Actions

• Align financial, customer, operational, and learning goals with specific KPIs for effective goal setting.

Checklist for Effective Goal Setting

• Set clear direction and priorities aligned with business areas.
• Use SMART model to define individual objectives, linking them to the four categories.
• Clarify achievement processes for set objectives.

Performance Management Structure

• Align company, department, and individual goals with core values and competencies.
• Individual goals should encompass both qualitative and quantitative aspects.

Behavior Evaluation

• Focus on attributes required for effective job performance.
• Emphasize behaviors that reflect how objectives are achieved.

Common Competencies in ALA

• Core Values: Emphasize customer focus, integrity, and compliance.
• Essential Competencies: Include effective planning, execution, collaboration, and communication skills.

Definition and Expected Behaviors

• Reflect organizational commitments and responsibilities, particularly in compliance and ethical behavior.### Integrity
• Maintains confidentiality under pressure; admits mistakes and remains principled in decision-making.
• Demonstrates high trustworthiness; continually cultivates behavior across the organization.
• Minimum requirement: dedicate 1% of working time to health/human care activities for all employees.

Customer and Patient Focus

• Ensures customer satisfaction by prioritizing customer and patient needs in all interactions.
• Strives to understand both customer requirements and patient/caregiver interests.
• Staff at all levels work towards exceeding customer expectations and ensuring satisfaction.

Strategic Thinking

• Analyzes information to align team or organizational strategies with objectives.
• Staff and managers utilize data-driven approaches to develop valuable strategic inputs.
• Anticipates changes and strategically addresses risks and challenges for sustainable outcomes.

Innovation

• Encourages creative problem-solving and exploring hidden opportunities for new ideas.
• Emphasizes a culture of nurturing suggestions and new approaches throughout the organization.
• Fosters curiosity and shares insights from both internal and external sources to promote innovation.

Execution

• Develops short- and long-term plans to achieve organizational objectives, focusing on results.
• Identifies major roadblocks and works proactively to address potential challenges.
• Implements effective planning processes to streamline operations and enhance team performance.

Knowledge Building

• Deep understanding of the pharmaceutical industry and actively advances operational knowledge.
• Engages in self-directed learning and maintains professional skills through internal and external resources.
• Shares knowledge and insights with colleagues to improve overall performance.

Coaching and Development

• Identifies developmental needs of team members and supports their growth through coaching.
• Prioritizes talent development and provides actionable feedback for continuous improvement.
• Creates a learning culture that promotes skill development at all organization levels.

Collaboration

• Encourages open communication and mutual respect among team members.
• Effectively expresses opinions while actively listening to others to understand different perspectives.
• Promotes an environment that values honest communication, especially during challenging scenarios.

This quiz covers the essentials of Employee Performance Management Systems, including performance evaluations, mid-year and year-end reviews, and providing feedback. It is designed to enhance managers' understanding and application of the PMS process.