taha pm final report 2003

8/13/2019 Taha Pm Final Report 2003

1/37

INTRODUCTION OF PERFORMANCE MANAGEMENT

Performance management includes activities to ensure that goals are

consistently being met in an effective and efficient manner. Performance

management can focus on performance of the organization, a department,

processes to build a product or service, employees, etc.

Performance management of individual

employees differs. It generally includes the

work planning, setting goals, offering

feedback and reviews, offering opportunities

to learn more in ones field, and rewarding

employees who perform well.

Employee performance management works

best when work is planned and goals are

consistent. This may mean having a clear way to communicate regarding

work epected at the moment and upcoming work. Planning also includes

defining epectations of the employee so that he or she is not broadsided byevaluation criteria not included in planning.

Planning and setting goals in performance management also creates a

system of predictable rewards for good performance, and conse!uences for

poor performance. It also involves giving feedback to employees on a more

consistent basis than the average annual review. Instead, an employees

ability to eceed or failure to meet goals may be monitored on a monthly

basis. This provides the employee with either the opportunity to receive

compliments and rewards fairly regularly or to make behavior changessooner if performance is not up to par.


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AE Design History

"E #esign is the premier engineering design and $onsultancy $ompany in

Pakistan. They are specializing in the engineering and analytical related

services for the mass automotive and industrial machine industries. "E

#esign provides its clients with professional, eperienced design and

engineering services while maintaining a focus on economical and on%time

delivery.

"E #esign assists their clients from concept through validation to finished

prototypes and&or

finished products if

re!uested. 'ur

professional in%house

team brings your ideas

to fruition, be it an

integral part of a sub

assembly or an entire

system. Each of our

engineers holds

international degrees and brings a level of epertise adaptable to a changing

manufacturing environment without compromising their professional

integrity or the !uality of their technical services.

"E #esign was started in ())(. The $E' of the company *aafir +aheed

focuses on providing engineering services to the automotive industry. ince

these early days, they have epanded our horizons to include motor sports,

recreational, aerospace and industrial machine design. "E design clients are

based primarily world%wide with most residing in Europe and the -nited

tates. "E #esign continuing dedication to ecellence is carried forth

throughout the team.

MISSION


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"E #esign mission is to provide solution is to meet and eceed the

epectations of automotive clients with their acceptable timeframe and

budget./

VISION

"E #esign is looking forward for their epansion, engineering challenges

with ecitement, and produce solution with vigor./

ORGANIZATIONAL STRUCTURE


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PERFORMANCE MANAGEMENT SYSTEM

OF AE DESIGN

Performance System Procedure: -

0. Performance "ppraisal shall be comprised of ( parts i.e. Performance

1oals and $ompetencies. Performance "ppraisal shall carry a weight

age of 2)3 for performance goals and 4)3 for competencies.

(. Every year for all confirmed employees according to their annual

increment dates respectively, 5.6 #ept shall initiate Performance

"ppraisal by sending the performance appraisal format to all#epartment heads.

4. The performance goals as already set and agreed to between the

Eecutive & 7anager 8"ppraisee9 and his immediate boss 8appraiser9

shall be indicated in the format.

:. The appraisers shall evaluate the performance of the appraisees

according to the agreed criteria between them at the time goals were

set.

;. The appraiser shall discuss with the appraisee each and every goal in

the light of its achievement and the success criteria.


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2. In the course of Performance "ppraisal the training needs of the

appraisee shall also be determined.

=. >oth the appraiser and the appraisee shall sign the format. In case

there is any reservation the appraisee shall give his comments.

?. "fter the appraisal the appraiser shall forward the format to his

immediate senior who shall review the appraisal and give his

comments.

0). In those cases where an Eecutive have two reporting officers

,both shall conduct the Performance "ppraisal send the case to

functional incharge for this evaluation of the concerned individual and

who shall send the case to his incharge for review.

00. The total marks of an appraisal shall be categorize as under@

Aeeds

Improvement

0 >elow

;;3

>elow

epectations

( ;;3 %


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0;. The goals shall be based upon key performance indicator of

individuals Bob position.

0


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progress reviews with their employees. They donDt limit their

interactions to formal appraisals at the end of appraisal period.

+ith the discussion between top management the functional heads they

align the obBectives of employees with the ision of company.

'rganization strictly believes that appraisers should balance positiveand negative performance feedback. They should be well prepared to

give praise for accomplishments as well as provide constructive

criticism.

7anagers review the performance appraisal with employees. They need

to build consensus on the final appraisal document and the document

should be signed by the both parties and submitted to the 5uman

6esource department. -nder the supervision of 5uman 6esource

department, line managers conduct appraisal meetings. They are

directed to do preparation and prioritize the tasks and issues beforegoing in the appraisal meetings.

7anagers are responsible to schedule the appraisal meeting in advance.

Provide employee the opportunity to prepare whatever he or she wants

to say. 7ake sure to allow sufficient time for the meeting and give

employee the feel of importance and value.+hile conducting the performance appraisal meeting it is directed to

both parties 8the appraiser and appraise9 to avoid discussion of personal

issues. 7anagers should concentrate on the employeeDs behavior and

their performance.


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LINING OF APPRAISER AND APPRAISE

The linking between appraiser and appraise in "E #EI1A are different

department and designation wiseC

Department Appraiser Appraise

"ccounts Finance 7anager r. "ccountant

"ccounts Finance 7anager "ccountant#esign Engineering ProBect 7anager

#esign

$"# upervisor

#esign Engineering ProBect 7anager

#esign

#esign Engineer

#esign Engineering ProBect 7anager #raftsmen


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#esign

#esign Engineering ProBect 7anager

#esign

r. Engineer

Information

Technology

IT 7anager Aetwork Engineer

Information

Technology

IT 7anager +eb Engineer

Information

Technology

IT 7anager r. Aetwork

Engineer

"dmin "dmin Eecutive Procurement

'fficer

"dmin "dmin Eecutive Technical$oordinator

ales 1erman ales

7anager

"ssistants

5uman 6esource 56 7anager Front desk officer

$E' 56 7anager

$E' IT 7anager

$E' "dmin Eecutive

$E' ProBect 7anagers

8#esign9

ProBect 7anagers

8imulations9

ProBect 7anagers


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8#evelopment9

$E' "dmin Eecutive

$E' Finance 7anager

$E' 1erman ales 7anager

'rganizations organogram clearly reflects the linking between appraisers

and appraises. #espite this concrete Performance 7anagement system,

linking of appraise and appraiser is a potential problem which can result in

the negligence of maintain the documentation of the performances. In many

areas appraise and appraise are not directly linked at the work place. If we

take the case of #raftsmen, this position is reporting to #evelopment

coordinator and that position reporting to $"# upervisor and he is reportingto r. Engineer and enior Engineer is reporting to ProBect 7anager.

"nother issue is found that some designations are reporting to the two or

more heads at a same time. Those are clearly mentioned in the organogram

by solid line.

GOALS ! O"#ECTIVE SETTINGS

LINING OF GOAL SETTING AND APPRAISAL SYSTEM


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In "E #EI1A while conducting appraisal the appraiser is directed to set

the goals for the appraisee for the net financial year.

0. The goals shall be based upon key performance indicator of

individuals Bob position.

(. The goals must be specific and time bound.

4. The appraiser and the appraisee shall decide success criteria to

avoid any disputeat the time of appraisal.

:. The goals must be measurable.

;. Each goal shall be given weight age according to its relative

importance out of 2)3 reserved for performance related

evaluation.


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Aeeds

Improvement

0 >elow ;;3

>elow

epectations

( ;;3 %


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STAFF PERFORMANCE APPRAISA

FOR T!E PERIOD """""#

To be filled in by the immediate supervisor and discussed and shown to

the appraisee

NAMEDESI$NATI

ON

SAAR%AO&ANC

ES

D#O#'DEPARTME

NT

OCATION

APPRAISER

PERFORMANCE COMPETENCES

S(

#

)E!A*IO+RA ASSESSMENT PERFORMANCE

DIMENSIONSO&

!I$

!

MAR,S

O)TAINE

D

#

'o. ,no/0ed1eC Possesses knowledge of methods,

techni!ues and skills@ conversant with all phases of Bob

and related matters.

0 ( 4 : ;

2#

P0annin1 and Or1ani3in1C "nticipates needs@

forecasts conditions, plans, organizes and monitors

results till completion of tasks. -tilizes time effectively

and meets deadlines with effective and realistic action

plans.

0 ( 4 : ;

4#Decision Ma5in1C Takes rational, sound and timely

decisions based on relevant information and facts.0 ( 4 : ;

:.

GeadershipC #evelops in subordinates, the will

H desire to work towards common obBectives@assigns work to subordinates H keeps track of

the progress, corrects deviations to achieve

the common goals.

0 ( 4 : ;


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6#

Discip0ine7Attendance7Punctua0ity: Follows

guidelines as established by policies. The etent to

which the employee reports to work on time,

communicates schedule changes promptly to

supervisor, and maintains regular attendance and work

discipline.

0 ( 4 : ;

8#

Pro.0em So09in1 S5i00sC Gogically breaking problems

down to their essential elements@ carrying out

diagnosis, developing and implementing solutions.

0 ( 4 : ;

#Tenacity and Crisis !and0in1C 6emains steadfast H

maintains stability of performance under pressure and

stressful conditions H pursue tasks until completed.

0 ( 4 : ;

;#

De9e0opin1 staffC Identifies H motivates others to

improve their capabilities and standards of performance

through counseling, Bob rotation etc.

0 ( 4 : ;

#

Communications S5i00sC "bility to listen carefully H to

present facts and ideas verbally and in written form in a

very clear, effective and convincing manner.

0 ( 4 : ;

6

#Interpersona0 S5i00sC >uilds persuasive arguments on

logic&merit without hurting feelings of others.0 ( 4 : ;

8

#

Adapta.i0ityC "bility to alter behavior and opinions in

the light of new info and responds constructively to

changing situations.

0 ( 4 : ;


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Ma?imum Score ;=

Tota0 Mar5s O.tained

Performance @ BTota0 Mar5s O.tained 7 ;= ? ==

FORMAL REWARD SYSTEM

There is no formal and documented reward system eists in "E

#EI1A. It might be given on the sole discretion of the $E'. >ut there

is no documented policy available for that.

5ence the performance management system has no compliance with

the rewards and coercions.


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PROPOSED PERFORMANCE SYSTEM

PERFORMANCE MANA$EMENT

" Performance 7anagement process is meant for ensuring thatemployees are focusing their work efforts in ways that contribute toachieving the organizations mission. It consists of three phasesC

8a9 etting epectations for employee performance,8b9 7aintaining a dialogue between supervisor and employee to keepperformance on track, and8c9 7easuring actual performance relative to performance epectation.

P+RPOSE OF PERFORMANCE MANA$EMENT

The purpose of the performance management system is to ensurethatC

0. The work performed by employees accomplishes the work of theorganization.

(. Employees have a clear understanding of the !uality and !uantity ofwork epected from them.4. Employees receive ongoing information about how effectively theyare performing relative to epectations.:. "wards and salary increases based on employee performance aredistributed accordingly.;. 'pportunities for employee development are identified.


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OPERATI*E PERFORMANCE MANA$EMENT

'perative performance management system shall consist ofC

0. " process for communicating employee performance epectations,maintaining ongoing performance dialogue, and conducting annualperformance appraisals.(. " procedure for addressing employee performance that falls belowepectations.4. " procedure for encouraging and facilitating employee development.

:. Training in managing performance and administering the system.;. " procedure for resolving performance pay disputes.

PERFORMANCE APPRAISA

Performance appraisals are a way to give feedback to staff regarding

their performance. The appraisal can be used to encourage good work

as well as point out opportunities for improvement. "ppraisals can also

be used to set measurable targets and obBectives to continually spur

performance improvement.

Increasing Role Clarity

Performance appraisal is a tool for communicating the skills,

knowledge and attitudes re!uired for the different Bob roles. The

appraisal criteria acts as a guide to the attitudes and behaviours

that "E #EI1A would like their staff in their various capacities to

have.

Training and Development

Performance appraisals measure an individuals performanceand can identify opportunities for improvement or learning

through training.

Compensation and Reward


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"E #EI1A re!uires that bonuses and annual increments are

linked to performance, a system for measuring performance in

an e!uitable way is necessary. Performance appraisal

encourages the use of obBective, !uantifiable criteria to measure

performance which will be known to all staff. This system

improves fair Budgment and the perception of e!uity among staff.


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Career Planning

Performance appraisals will allow "E #EI1A to assess the skill

set of their eisting staff to ascertain the career path for each

individual.

Enhance Corporate Values

"E #EI1As corporate value is the pursuit of innovative !uality

in the areas of $ustomers, Employees, ociety, Products,

Technology, 7anagement and Fairness. These values are

translated to performance measures that are used in the

appraisal. This enhances awareness of corporate values andpromotes behaviours that are in line "E #EI1As values.


20/37

DE*EOPIN$ PERFORMANCE TAR$ETS AND $OAS

P6'$E#-6

E

"$TI'A E"7PGE

tep 0

>egin by writing

down the basic

nature of the task

using only a verb

and a noun

ource new clients

Increase sales volume

6educe reBection rates

$omplete planning phase

tep (

Include the

!uantity or !uality

that must be met

by the person

responsible for the

task

ource number of

!ualified clients within Jmonths

Increase sales volume by3 by certain time

6educe reBection rates by

;3 by the end of theyear

$omplete the planning

phase by certain time

tep 4

If necessary, add

any procedures or

criteria that

describe the action

to be taken to

achieve the target

or goal

ource number of

!ualified clients within Jmonths by activelydelivering services topotential clients withinthe automotive industry

tep : 6eview and refine

the target or goal if

necessary


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C!EC,IST FOR TAR$ETS AND $OAS

The performance goals should be operational and development. They

must be 7"6T 1oals.

SMART/ Performance 1oalsC

Specific

Measurable

A chievable

Results%oriented

T ime%bound

To ensure that the obBectives are properly defined, each of the

following !uestions must be answered positivelyC%

8i9 #oes the statement of performance targets&goals limit the

results to one specific areaK

8ii9 "re the results well defined in terms of what is epected of the

Bob holderK

8iii9 "re the obBectives measurable and observableK +ere obBectives

!uantified whenever possibleK

8iv9 +as a time frame specifiedK

8v9 "re the performance targets&goals reasonable and within the

reach of the Bob holderK

'bBectives of +riting Performance Targets and 1oals

pecific and measurable targets and goals define what is epected

from a Bob holder.

The performance targets and goals serve as standards by whichperformance can be accurately measured.


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DE*EOPIN$ ,E% PERFORMANCE INDICATORS B,PIs

CoreMana1er E?ecuti9e Staff

Customers

Customer Focus

7aintains high priority in achieving customer satisfaction 8both

internal and eternal customers9 by !uickly and accuratelyidentifying and responding to customers actual needs.

Is effective in dealing and negotiating with internal and eternal

customers.Emp0oyee

s

taff Training and !elfare

"ctively provides guidance and helps staff in their career

developmentInterpersonal& Facilitation of Teamwork

Promotes and develops good working relationships with other

staff

Communication "ill

peaks, listensand writes clearly and logically to share information and

skills

Society Cost Consciousness

#emonstrates concern for the society through practices that

save companys resources and reduce wastage


23/37


Products

and

Ser9ices

#ob $nowledge% Technical "ills

#emonstrates good knowledge and skill in Bob area

!or" &ttitude

#isplays commitment, planning and organizational skill,

initiative and a sense of urgency toward work and awillingness to learn

'uality (indset

7aintains high standards for how work is done in terms of

accuracy and consistency

afety

Ensures careful work habits that comply with the safety

re!uirements

'uantity of !or"

"bility to handle a reasonable volume of work

Tecno0o1

y

Process Improvement

6ecognizes the need for continuous improvement

Mana1em

ent

8to be

completedfor

appraisees

with

supervisory

duties9

Problem olving

Identifies issues and problems, secures relevant information

from different sources and resolves problems effectively

)eadership% upervision * (otivation of taff

ets a good eample for subordinates and effectively controls

and leads them


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+oal ,rientation

ets realistic challenges and acts to achieve them#ecision 7aking

Takes the right action at the right time

Fairness Integrity

"cts ethically and honestly in line with the companys code ofconduct

Dependability % Responsibility

Is reliable in the discharging of duties and is willing and

adaptable in taking on new responsibilities

&ttendance% Punctuality

5as good attendance and is punctual


25/37

PROPOSED ANN+A O)'ECTI*E FORM

"s it is mandatory in 5uman 6esource practice to document the

obBectives or targets set by appraiser and accepted by appraise. This

procedure supports at the time of appraisal and made the process

reliable and transparent. They should follow this pattern while setting

the obBectives.

ANN+A O)'ECTI*ES 7 TAR$ETS

Name: Desi1nat

ion:

Departme

nt:

ocation:

AoteC #iscuss all the 'bBectives&Targets with the appraisee in detail.

S (#

O)'ECTI*ES7TAR$ETS FOR T!E %EAR 2==-2=

Please !uantify as much as possible

&EI$!TA$E

&BTota0 Score for

tis o.Gecti9e

TOTA


26/37

IN,IN$ AND SCED+AIN$ PERFORMANCE MANA$EMENT

It is proposed that "E #EI1A should start their performance

management cycle with financial year.

L 56 #ept to identify"ppraisers for eachdepartment,particularly fordepartments with morethan one appraiser

L 56 #ept to provide"ppraiser withappraisal forms

L "ppraiser to completeforms for respectivestaff

L $onduct performance appraisalinterview

L "ll Eecs and 7anagers will

undergo the appraisal interviewincluding setting performancetargets and goals for the net timeperiod

STA$ES OF T!E PERFORMANCE MANA$EMENT S%STEM

L "ppraisers to schedule0hr sessions for eachemployee

Inform EmployeesInform Employees

Preparation for 6eviewPreparation for 6eview

L "ppraisers to informemployees at least oneweek before thescheduled interview

Performance 6eviewand

"greement

Performance 6eviewand

"greement

7anagement6eview

7anagement6eview

56 #ept 6eview56 #ept 6eview

0st week of Muly

0st week of Muly

(nd week of Muly

4rd and :th week of Muly

:th week of Muly

L "ppraisers to submitcompleted form to respectivesuperiors for review andcountersigning

L "ppraisers to submit form to56 #ept

L 56 #ept to confirmrecommendations on salaryincrements and promotionswith 7anaging #irector

L 56 #ept to prepare letters tostaff accordingly

L 56 #ept to file appraisals inpersonnel forms

0st week of " ugust

chedule interviewschedule interviews


27/37

PROPOSED APPRAISA S%STEM

$urrently "E #EI1A is using the >ehavioral "nchored 6ating cale8>"69 Evaluation system. They name that system as >ehavioral

"ssessment Performance #imension/. "s we propose them that they

should not only use this system but also include the 7anagement by

'bBectives 87>'9 Evaluation system.

MANA$EMENT )% O)'ECTI*ES

Please fill the resent achieved against the obBectives&targets given to the appraisee in the beginning

of the year. Please discuss all the achievements with the appraisee in details.

This form comprises of -./ weightage of Performance &ppraisal

S

(

#

ist 5ey o.Gecti9es priority /ise a1reed at te

.e1innin1 of re9ie/ period.

&ei1ta1e

& BTota0

Mar5s for

tis

o.Gecti9e#

Resu0ts

Acie9ed#

P0ease try to

Huantify

resu0ts# Read

te e?amp0es

.e0o/#

Ratin1 R

BMar5s

Acie9ed

a1ainst tat

o.Gecti9e# $i9e

mar5s out of

te tota0 mar5s

B& a00ocated to

tis o.Gecti9e#

E?amp0es for +nderstandin1:

Sa 0es: Responsi.0e for acie9ement of ==@

Annua0 Sa0es Tar1ets

!R: Comp0ete irin1 /itin ; /ee5s of

recei9in1 te !irin1 ReHuest#

IT: De9e0op 8 Modu0es of !uman Resource

Information System /itin tis year#

46

4=

>=

Acie9ed

a0most =@

Customer

Comp0aints

reduced .y

==@

acie9ed too5

= /ee5s on

a9era1e >

modu0es /ere

comp0eted

de9e0oped 4

SOPs

46

2=

2

Tota0 & Tota0 R


28/37

Performance @ BTota0 R 7 Tota0 & ? ==

Fina0 A11re1ated Ratin1 BFAR for Form )

Performance @ ? =#=

@

Di9ision

Score

d O9era00 Performance

Form

A 4)3E?ceeds E?pectations B;8

==@

Meets E?pectations B= ;6@

Form

) 2)3

Tota0 ==@)e0o/ E?pectations B66

8' and >"6, by giving

2)3 and 4)3 respectively.

Elements of the &ppraisal Form

The appraisal form must cover the following key areasC

"ssessment of performance.

Employees growth and development % strengths and areas forimprovement.

Training re!uirements.

"chievements.

1oals and targets 8for managers and eecutives9.

6eview with staff 8for managers and eecutives9.

6ecommendations.

7anagement review% 6eview by $ountersigning "uthority.


29/37

PARAMETERS TO COND+CT PERFORMANCE APPRAISA

)EFORE

T!E

APP

RAISA Neep good

records

>oth praise and criticism are most meaningful when

supported by factual eamples.

6eviewprevious

goals

-se previous goals to evaluate progress.

1et input

from others

eek feedback from others who work with the appraisee in

areas they will have obBective knowledge of and get

eamples where available.

Prepare

carefully

Prepare in advance so that you can deliver the message

that you intend to.

Prepareadministrativ

e details

"gree on a time % set aside at least one hour. "voidpostponing the appointment, and give the employee fullattention.

elect a location % office or conference room is best.

"sk employee to prepare % ask the employee to reviewhis&her goals, and come prepared with !uestions.

Eplain the

meeting

agenda

'utline what is about to happen for the session.

Encourage

communicati

on

Gisten.

Encourage two%way communication.

"sk for ideas on how they can improve their

performance.

"sk for how they feel you can help them.

"sk for feedback on the appraisal section.


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D+RIN$T

!E

APPRAISA tay focused Neep the session focused on past and future performance,

summaries discussion issues often to ensure agreement.

$ommunicati

ng

shortcomings

The employee epects and should know what he&she

needs to improve.

>e open >e versatile and open%minded if you hear things that

cause you to change your opinion.

D+RIN$T

!E

APPRAISA Evaluation

process

>egin with the positive things that were well done.

Follow this with areas that need improvement and a

plan on how to address them.

$onclude with a reinforcement of your desire to help theperson grow and improve.

7aking

promises

#ont make promises you do not have control over 8e.g.

salary increments, promotions, transfers etc9.

6eview goals $oncentrate on a few areas% things that make a

difference. Try to encourage continuation and growth in

the areas of strength. et up smart/ goals that will build

strength in areas needing attention.

AFTE

R

T!E

APPRAISA "dministratio

n

$omplete the paperwork re!uired for the results of the

appraisal.

7ake sure the appraise signs on the bottom line.

7ark the calendar on when your net appraisal session

with the person will be.Follow%up Follow%up on agreements made during the appraisal.

Gearning 6eview what you have learnt about the employee, your

records and systems, yourself, the appraisal process andyour management style.


31/37

A*OID ERRORS IN PERFORMANCE APPRAISA

Common Ratin1 Errors

+hilst completing the appraisal form, the appraiser is advised to

eercise caution, as there may be several pitfalls which may skew the

assessmentC

0alo Effect

" person outstanding in one area tends to receive outstanding or

better than average ratings in other areas as well, even when such arating is undeserved.

1egative Effect

" low rating in one area yields lower than deserved ratings for other

accomplishments.

Central Tendency

"ssigning an average rating for all !ualities.

Confrontation &voidance

#iscomfort with giving negative feedback.

Initial Performance

6ating an employee based solely on initial impressions of performance.

Recency

6ating an employee based solely on most recent performance which

overshadows the entire years performance.


32/37

$RADIN$ IN PERFORMANCE APPRAISA

There must be proper and well defined grading criteria. That must be

properly communicated to appraise by their appraisers. "ppraise is

then graded according to the level of his&her performance in each

category according to the final scoreC

,utstanding

Performance is eceptional and far eceeds epectations.$onsistently demonstrates ecellent standards in all Bob

re!uirements.

Very +ood

Performance is consistent, and eceeds epectations in all

situations.

+ood

Performance is consistent. $learly meets essential re!uirements ofBob.

Fair

Performance is satisfactory. 7eets re!uirements of the Bob.

1eeds Improvement

Performance is inconsistent. 7eets re!uirements of the Bob

occasionally. upervision and training is re!uired for most problem

areas.

2nsatisfactory

Performance does not meet the minimum re!uirements of the Bob.


33/37

PROPOSED REWARD SYSTEM ! LINING

There are two modes of rewards, etrinsic and intrinsic. Employees aremotivated by both intrinsic and etrinsic rewards. To be effective, thereward system must recognize both sources of motivation. "ll rewardsystems are based on the assumptions of attracting, retaining andmotivating people. Financial rewards are an important component ofthe reward system, but there are other factors that motivateemployees and influence the level of performance. It has found thatamong employees all the time money is not the most importantmotivator, and in some cases managers have found money to have ade%motivating or negative effect on employees.

To ensure that the reward system is effective and motivates thedesired behaviors, it is essential to consider carefully the rewards andstrategies utilized and ensure the rewards are linked to or based onperformance. To be effective, any performance measurement systemmust be tied to compensation and some sort of reward. 6ewardingperformance should be an ongoing managerial activity, not Bust anannual pay%linked practice.

trategies for rewarding employees performance and contributionsinclude both non%financial and financial mechanisms. ome of themandatory ones are discussed below. The list is not comprehensive,and individual departments of "E #EI1A may identify additionalmechanisms that are appropriate for and support their culture andgoals.

Praise7reco1nition from super9isors

Praise and recognition from supervisors is consistentlyfound to be among the most importantmotivators. Employees want to be recognized and feel


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their contributions are noticed and valued. It is important thatsupervisors recognize the value and importance of sincerely thankingemployees verbally and&or in writing for their specific contributions.

Ca00en1in1 /or5 assi1nments

$hallenging&new work assignments are anothermechanism available for supervisors to reward good

performance. uch assignments can provideemployee the opportunities to develop new skills,epand their knowledge, and increase their visibilitywithin the organization. They also send an importantmessage that employees contributions arerecognized and valued. In considering suchassignments, supervisors should consult employees

about the types of assignments that would be most valued, and theyshould also assess whether workloads will need to be redistributed toensure employees have ade!uate time to devote to new tasks.

Professiona0 1ro/t and de9e0opmentopportunities

upervisors may provide employees opportunitiesto participate in educational programs or otheractivities that will epand their skills andknowledge. Employees benefit by developing newskills, and the organization benefits from the

additional epertise individuals bring to the Bob.


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Paid ea9e

'rganization may award employees up to 0=paid leaves annually in recognition ofcommendable performance with the approvalof their line supervisors keeping in confidencethe human resource department.

Pro1ression trou1 te sa0ary ran1e

Employees may receive salary increases to recognizethe attainment of new and the enhancement ofeisting skills and competencies or for assumingincreased responsibilities within the scope of thecurrent position. The salary increase represents aprogression through the salary range approved for theposition. This directs that their must a proper road

map defined.

Merit .ased increases Policy should allow supervisors to giveemployees an annual merit increase to recognizeconsistently commendable performance orsuccessful completion of a proBect that had asignificant impact on a department or theuniversity. The reward may be in any amount or

percentage, depending on the availability offunds. To be eligible for a merit increase,employees must have been employed for at least

si continuous months and at least si months must have onwardssince the employeeDs last salary increase, promotion, salary increasedue to progression in the salary range, demotion or transfer fromanother department.


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Promotions and 0atera0 mo9es

Promotions and lateral moves may be long term rewards thatrecognize employees professional growth, epertise, and capacity tocontribute to the institution in new roles. Promotions are typically

associated with an increase in salary.

)onuses

>onuses are compensation for employees for work performed@ they arepaid in addition to salary or wages. >onuses are consideredcompensation if they Oarise out of an employment relationship or areassociated with the performance of services.O Neeping in mind the "E#EI1As profitability the management should introduce this system.

Administrati9e sa0ary supp0ements

"s it is observed that in "E #EI1A employees are sharingresponsibilities so employees who assume new or additionalresponsibilities on an interim basis may receive administrative salarysupplements that are paid in addition to the base salary. Thesupplement is discontinued when the employee is no longerresponsible for the additional responsibilities.

Informa0 re/ards

+hen necessary, supervisors may choose to give employees informal

rewards for specific accomplishments or contributions. 'rganizationcan set an amount for employee informal non%cash rewards thatdemonstrate the supervisors and organizations appreciation.upervisors can be creative in identifying informal rewards that will beappreciated by the particular individual being recognized, but, inselecting and purchasing rewards, supervisors must be sensitive to theorganizations responsibility.


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taha pm final report 2003

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