Performacne Appraisal System Performance appraisal is the systematic evaluation of the individuals with respect to his performance on the

job and his potential for development. Performance appraisal is concerned with determining the differences among the employees working in the organization. Generally, the evaluation is done by the individual's immediate superior in the organization and whose performance is reviewed in turn by his superior. Thus, everyone in the organization who rates others below him is also rated by his superiors. Performance appraisal emplys rating techniques for comparing individual employees in the work group, in terms of personal qualities or deficiencies and the requirements of their respective jobs. Existing Performance Appraisal This policy had its primary purpose the continual monitoring and development of each employee's talents, skills and abilities as they relate to the job performance. The policy applies to all regular full time employees of the company. It doesnot cover temporary, non regular trainees like summer/project trainess and other similar categories. Appraisal Objectives Primary objective is to utilize the approval process as a performance assessment tool and development tool and thereby establish a linkage between the KRA set by each employee with the business mission of the company on to say that individuals target win out of company goals. To establish the linkage firstly by ensuring and matching company goals with individual KRA set during and after the goal setting process. To establish the linkage secondly through measurement of individual employee achievement against KRA set by him/her with respect to the company achievement of overall goals, or to say that the individuals achievement has helped the company in moving towards its goals. Secondary objective is to utilize the appraisal process as a development tool and assess the employee potential vis-a-vis and recommend development measures to facilitate the employees to move upward and downward. Finally use the process and date generated to reward a deserving employee as per the guidelines set by the company. Overview I. Performance reviews shall be conducted twice a year during the months of september and april every year by means of a sysytem known as the Performance management System. II. The truth used will be a KRA based Performance Appraisal Booklet called The Truth over Harmony, Performance Appraisal Management System. III. The performance management systems will beconducted in a private, interactive, face to face meeting between an employee and his/her immediate superior. IV. A portion of the superiors responsibility includes timely and satisfactory completion of the performance management process for each employee supervised. V. If a superior doesnot complete plans or evaluations when due, the concerned employee/s may draw the attention of the Human Resource Department as well as the concerned Functional Head who will ensure that discussions on KRA take place and evaluation are completed. The necessary documents should thereafter be forwarded to the Human Resource Department for facilitating completion of the process. VI. New employees should be informed about the Company's Performance Management Systems soon as possible after employment and, preferably before the performance planning process is intiated. Performance Plans/ Targets (KRA) Setting and Review 1. Performance plans/targets (KRA) should be completed during the first month of 12 month

performance cycle. Normally, performance plans (KRA) will remain effective for one year. 2. A performance plans for new employees should be created within 30 days of the date of employment. 3. Employees who have recieved promotion, or have been assigned different dutiers or assignment should have performance plans created or modified within 30 days after the change of duties. 4. During the performance planning process, a discussion should occur between the superior and the subordinate about objective and subjective assessment that would be used in the evaluation of the KRA's along with the development needs. Coaching and Progress Review 1. Progress review, coaching and feedback will be done on a perodic basis to bridge the gap between the performance plan and the final evaluation. 2. While the superior is responsible for providing the feedback and coaching at the mid-year point, the individual employee is also required to actively solicit feedback to improve performance. 3. During these seasons the performance plan will be reviewed and adjustments can be made if necessary. 4. Written documentation of the progress review meeting will be kept on a quaterly basis. Performance Evaluation 1. In normal circumstances, formal written performance evaluation will be done twice in a year during the months of October and April. 2. In instances where an employee is being transferred from one position to another, through either promotion or lateral transfer, the immediate superior must complete a formal evaluation, using the prescribed form, prior to the transfer the releasing department. The completed form must then be forwarded to the Human Resource Department for processing. 3. If a supervisory employee is leaving that position, he/she shall complete prior to the last working day in the position, a formal evaluation of each employee supervised. Complted evaluation forms must be sent to Human Resource Department before the supervisory employee leaves. However, this is not necessary if a formal, documented evaluation on each supervised employee was completed within 90 days prior to the supervisory employee's last working day. 4. If an employee reported to more than one superior during the evaluation period, the other superior/s shall be consulted for input on the evaluation. 5. For an employee under probation the superior must conduct at least one written performance review during the probationary period and no later than 30 days before the completio of the probation period. In addition to this required review, the superior should conduct a review anytime there a question concerning the emplyee's qualify of performance. 6. When an employee's performance evaluation indiactes that performance is 'unsatisfactory' the employee's performance and progress must be reviewed again within 3 months. If the performance continues to be 'unsatisfactory' after consultation with the Human Resource Department. 7. Such corrective action may result in extension of observation period by 3 months, or in a termination of employment. 8. Once complted, the formal performance evaluation document will be forwarded to the Human Resource Department through the Department / Unit Head. The Human Resource Department will review the forms to see that they are properly completed and that all instruction have been followed. 9. The Human Resource Department will enter individual employee's performance information into the Human Resource Information System and file orginal evaluation form in the employee's file.

Complted performance evaluation documents must be treated as confidential records. Access to these records will be restricted to authorized employees of the Human Resource Department and others within the company on a need-to-know basis, related to their job function. Performance Appraisal System Performance Appraisal Format

Appraiser

HR Department (for clarification if needed)

Appraisee for Self Approval

Filling Up the Format

In case of Objection by Appraiser for Discussion Put Down the Feedback/Communication Appraisee Remark Column with Appraisee OK

Appraiser/Rating Signature

HR Department for Consolidation