Performance Alignment and Competency Enhancement

A tool to help you enhance your performance

User Guide
Name of User: Date received:

Welcome to PACE Whats Inside...

Dear Friends, Taj Hotels have embarked on the quest for excellence. To deliver this challenging vision, it is imperative that each & every employee is focused, energized and working towards the Organizations vision. PACE is a performance management tool that has been designed to make you work better and smarter towards achieving the Organizational vision and goals.

PACE

Using the PACE Guide2 Why a Performance Management System?2

A look at whos who3

Terms you need to know4 Your performance management cycle5 Your development cycle6 Your performance planning7 Your Mid Year Review 8 Your Year-End Appraisal 9 Rating Scales 11 Linkage to other systems 12

Answering your queries13

Annexure I Sections of the PACE Form 16

The essence of this program is to bring about greater transparency, openness in the organization and help each of us become more accountable, work better in teams, exercise responsibility in our day to day activities and do the right things that contribute to both Individual and Organizational success. The aim is to constantly augment our work satisfaction, enhance effectiveness and raise the bar on performance!
Yours,

Using This Guide

Why a Performance Management System?

This guide has been designed to take you through each stage of the Performance Management cycle which includes planning for your performance, receiving feedback and helping you in your development. Also, it will show you how to use various parts of the form and explain to the people involved in this process.

The Performance Management System at IHCL is based on the basic premise of the 4Cs - i.e it helps you: Build a Common Understanding of Organization goals and objectives. Helps you answer the question: Where is the organization headed?

In addition, various terms used in the form and the system on a whole, have been defined. To aid you during various stages of the PACE - Performance management cycle, tips and techniques on participating in this process have also been outlined.
In the annexure, every section of the form has been explained, outlining when, how and by whom, the form is to be filled. If you have any questions regarding this Performance Management System,please feel free to ask your Appraiser or any member from the Human Resource Department.

Set Clear Expectations by communicating to you your role and how it contributes to the Organizations success
Build Capability through ongoing feedback and coaching, training and development that helps you grow Build Commitment by ensuring that the rewards you receive match your performance and the effort you make

A look at Whos Who for PACE :

The Appraisee - This is your Performance Planning, Assessment and Feedback! Your role is to be an active partner with your Appraiser during the entire process. You are also expected to initiate the Performance Process and complete parts of the form earmarked for you. But, of course, your most crucial responsibility in the PACE cycle is to demonstrate outstanding performance during the year and achieve success for yourself and hence for the Organization.

Reviewer - This is your bosss boss! The Reviewer, an individual senior to your Appraiser, ensures that your Assessment has been conducted objectively and takes note of any disagreements voiced by you during the process. Along with HR, the Reviewer decides what to do incase disagreements have been voiced or any other objections have been raised. He is however not present during the Performance Planning and Feedback discussions.

HR - This is another department to help you through the PACE process! Appraiser - This is your immediate boss! Your Appraiser is the person to whom you are accountable and whom you report to on a regular basis. He is responsible for your work allocation. Your Appraiser will be closely associated with you in all aspects of your performance management - performance planning, ongoing feedback, learning & development and recognition. Your Appraisers responsibility is to decide, after discussion with you, your Performance Plans for the year as well as your ratings on KRAs at the end of the year. A key role of the Appraiser is to guide you in fulfilling your Performance Plan, provide assistance, give regular feedback and ensure that your development needs are met. It is HR who maintains all your performance records and ensures that the process is conducted as per schedule. HR also helps your Appraiser in performance related decision making. Whenever you are dissatisfied with the feedback or rating you have received, HR will analyze the matter and take a decision along with the Reviewer whether another Feedback session needs to be scheduled. Jointly with your Appraiser, HR takes decisions regarding your increment, Variable pay, training, and career progression.

Key Result Areas

Terms You Need to Know:

Throughout this process, there are some terms which will be used frequently. Make sure you know what each ones means and how it applies to you.The glossary below can be your quick reference tool.

Key Result Areas or KRAs are the key performance parameters for a role. These are defined as Critical outcomes towards which effort is directed to support achievement of desired business results. Team KRAs for your role are cascaded from the Corporate Scorecard of IHCL, the scorecard of the respective SBU and are along the 4 perspectives of the Balanced Scorecard Individual KRAs are certain specific goals which can be directly influenced by your individual performance.

Action Plan
This tells you how you intend to go about achieving your KRAs. It requires that you mention specific steps that will enable you to accomplish the KRAs outlined by you.

Leadership Behaviour
Leadership Behaviours are skills and abilities described in Behavioral terms that are coachable, observable, measurable, and critical to successful individual and Organization performance. The Leadership Behaviour relevant for your role is mentioned in your Performance Form. For further details and explanation of each Behaviour, please contact HR.

Final Rating
Each Appraisee would be communicated final ratings, which will be an aggregation of the scores obtained by the Appraisee on KRAs and will determine payouts based on the Variable Pay Plan.

Rating Scale
Five-point scales used to assess the extent of your accomplishment on your KRAs and Leadership Behaviour.

Your Performance Cycle

Definition of Corporate Strategy and Scorecard

March

Definition of Division/ Function strategy and Scorecard

March

Linkage with Pay and Potential Assessment

Definition of Hotel and Department Scorecard

April

Creation of Individual Scorecard

April

End-year Evaluation of KRAs

Mid year Review of KRAs

April

October

Your Development Cycle

Definition of Corporate Strategy and Scorecard

March

Definition of Division/ Function strategy and Scorecard

March

Linkage with Training, Pay and Potential Assessment

Creation of Training Calendar

April

Review of Development Goals Creation of Individual Scorecard

April

End-year Evaluation of KRAs

Leadership Behaviour Assessment & Development Goal Setting

April

May

Your Performance Planning:

Your Planning Session is complete if.
In the latter part of April, you will meet with your Appraiser to do your Performance Planning. You can prepare for this session by looking at your previous years appraisal and identifying what you think could be focus areas for the year. For this session, carry your Form and Job Description. Incase you do not have a copy of the above, then request HR to send it to you. During this session, you and your Appraiser will identify Key Result Areas and review development goals set against the Leadership Behaviours for the Performance Period. KRAs - KRAs are designed to provide you with tangible goals towards which you should direct your effort. Team KRAs - You and your Appraiser need to cull out KRAs critical for a particular performance period from your Organization/ Hotel/ Department Scorecard. Individual KRAs This includes individual performance measures for the job as well as managerial feedback on. The managerial feedback will be based on special projects, PIT, ideas suggested etc. mutually agreed with the manager For each KRA, you and your Appraiser will jointly decide on Action Plans, which are the efforts and steps you need to take for successful achievement. Your Appraiser will also communicate to you the weightage for the Team KRA and discuss weightage for the Individual KRAs.
You understand where the Organization and your Function / Department are headed You Performance Plan is set and agreed upon

You clearly understand how you are going to achieve your Key Result Areas
Your Appraiser has explained to you how your performance will be evaluated at the end of the year You have documented the discussion on the form Your Appraiser has sent the form to HR

Mid Year Review:

Mid Year Review will essentially include assessment of your performance on the KRAs, against the targets outlined.

Your Appraiser will rate your performance on the KRAs articulated at the beginning of the year on the basis of the Action Plan defined by you for its accomplishment and the extent of achievement against outlined targets for the period. You also need to voice your career aspirations. Your Appraiser will document the same post his/ her discussion with you and also pen down his/ her assessment of your readiness/ potential for the said post. The same will then be commented upon by the reviewer and stored by HR in a database for future career moves.

Your Session is complete if.

You have asked your Appraiser for guidance and support Your Appraiser has given you feedback on each KRA You have discussed your career aspirations with your Appraiser and he/ she has documented the same along-with his/ her views on your readiness/ potential Your Appraiser has documented the discussion Your Appraiser has sent the form to HR.

Your Year-End Appraisal:

In the first week of April, you will meet with your Appraiser for your Year-End Feedback session. Before going for this meeting, review your Performance Plan Key Result Areas and Action Plan. Also go prepared for your development review by completing your self assessment on Leadership Behavior. Also think of any constraints/ favorable conditions which influenced your performance. Use the rating scales mentioned in the following section for evaluating your performance. During this year-end session, the extent of your accomplishment of your KRAs will be discussed. Your Appraiser will share his comments on each area of your performance, giving examples, where required. Your Appraiser will also request you for your views and self assessment. Based on your achievement against target, your score on each KRA will be decided. Ratings will be given on each Leadership Behaviour based on the supporting incidents. Together, you will identify Leadership Behaviour that are priority areas for development. Your previous years Development Plan and the extent of its completion will be discussed. Your Appraiser will then suggest development activities that you can participate in during this year.

Your overall score on KRAs for the year would be the weighted average of the Final Scores on all KRAs. In each section, ratings will be given from the five point scale mentioned in the next section. You or your Appraiser do not have to calculate the Overall Score as the same will be calculated by the system itself. The scoring is done on the under-mentioned principle: Overall Score = Sum of (Final Score on each KRA * KRA Weightage) Besides, you need to outline other skill areas, technical or Behavioral, which you feel are development areas and you would want to bridge the same during the course of the year. Your Leadership Behaviors and other skill gaps would together comprise your Development Plan for the year and has to be verified and approved by your Appraiser and Reviewer.

Your Session is complete if.

In case you disagree with your Appraiser on ratings, comments or the way your session was conducted, you should list your reasons on the form in the section where you give your signature. Your dissatisfaction will be discussed by the Reviewer and HR and a decision to schedule another Year-End Feedback session might be taken.

Your Appraiser has given you feedback and a rating on each KRA Your Appraiser has given you feedback and a rating on each Leadership Behaviors Your Appraiser has discussed your development during the year against last years Development Plan Your Appraiser has verified your Overall Performance Score and communicated the same to you Your required proficiency levels for Leadership Behaviors for next year are discussed in detail You have identified other skill gaps for your Development Plan You have documented the discussion on the form and both you and your Appraiser have signed the form You have documented reason for dissatisfaction, if any Your Appraiser has sent the form to the Reviewer

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Rating Scales

Whats cooking now?

The Organization values your contribution and efforts and would like to reward them.

For KRAs
1: Significantly Below Target 2: Below Target 3: On Target 4: Above Target 5: Significantly Above Target

Recognition [Instructions For Appraisers]

Recognizing employees of your team is a meaningful motivator. You must encourage personal achievements of employees to feed their sense of achievement. Being the Appraiser, it is your responsibility to find out what motivates your employees. Make sure that recognition is given soon after the act or desired Behavior has taken place. Recognition is not something that needs to be done only during a formal feedback and assessment session. On the other hand, it is something that must be done throughout the year on an ongoing basis.

For Leadership Behaviours

1: Rarely Demonstrates the Behaviour

2: Demonstrates the Behaviour in some situations

3: Demonstrates the Behaviour in most situations 4: Role Model

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Linkage to other systems:

Variable Payouts
At the end of year, you will be eligible for payouts as per the Variable Pay Scheme, depending on how you performed during that year. For this, your overall score (minimum score of 3) on KRAs will be used. The payout percentages at various levels of performance for your Grade will be communicated to you by HR.

Training & Development

Training Needs
Training needs would be identified from the developmental planning section of the form that you complete during your mid year review. HR will consolidate this for all employees, and will take into account training needs for the organisation, division & department as a whole and create a Training Calendar. HR will send invites for participation to the training sessions outlined, few days before the scheduled training date. However, it will be the sole responsibility of the Appraiser to ensure that the training needs of the Appraisees reporting to him/ her for the year are met.

Fixed Pay Increments

At the end of the year, your PMS scores will be one of the important parameters for any decision on Fixed Pay Increment. Your performance increment will be based on your Overall KRA Score, your Leadership Behaviour Score (calculated during the mid year review) and necessary market correction. A payout matrix will be created by HR which will detail what your increment is based on your Grade and Rating.

Career Development
Your overall KRA Score and Leadership Behaviour Score will form key inputs for your career development. These will also be used as a filter for defining eligibility for the Potential Assessment Centre conducted as part of the EL Taj program.

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Answering Your Queries

...On KRAs
What is the Balanced Scorecard Tool?
The Balanced Scorecard is a way of using financial and non-financial measures to provide a balanced report on performance. It has 4 perspectives Financial, Customer, Process and Capability. The Balanced Scorecard Tool will be used to translate the strategy of IHCL into measures for the organization, in the Management Committee Scorecard. While cascading the targets from the Management Committee Scorecard, the targets will be equally stretched/ have the same level of difficulty across Divisions/ Functions. Thus, the targets that are cascaded will also be equally stretched across roles.

How are weights for KRAs decided?

Like KRAs, weights will also be decided based on strategic priorities, while defining the Division/ Function and Department Scorecard.

Is there any scope for revising my targets?

There would be years in which there are unanticipated events which impact performance, of either the organization as a whole, or your region and Hotel. In such circumstances, you can discuss this with your Appraiser anytime during the year, and with the approval of the Reviewer, your targets can be revised. If the event affects the entire organization, then the Management Committee will take a decision and revise targets downward/ upward as needed.

What are Key Result Areas and Targets?

KRAs are Critical outcomes towards which effort is directed to support achievement of desired business results. Some examples of KRAs include Average Room Revenue, RevPar Premium, Guest Satisfaction Score etc. Targets are numbers attached to each KRA and form the performance expectation during the year.

I take some initiatives beyond the scope of my rolewould those be KRAs?

If you undertake any special initiative apart from your daily responsibilities, and this is not accounted for in the KRAs that are cascaded, you can suggest to your Appraiser to include them in the section Managers Assessment. This section has been created to account for Hotel specific initiatives.

How are KRAs decided?

Your KRAs will be defined through the Balanced Scorecard Cascade Process and the specific targets which would be relevant to the department and you at a micro level. They will be defined jointly by HR and your Department Head.

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...On Coaching and giving Feedback

How do I share positive feedback?

Cite specific accomplishments Show appreciation Ask employees how they can leverage performance in a particular area to enhance their overall performance Encourage employees to continue high level of performance

What is feedback and Coaching?

Informal and formal opportunities for Appraisers to connect or touch base with you to: Keep performance on track Provide support and direction for your development

What types of messages can you get from feedback?

Coaching and feedback can include: Positive feedback and recognition Corrective feedback Identifying obstacles to performance Sharing information

How do I share negative feedback?

Describe the observed Behavior and provide specific examples Define the impact on you and other members Get a reaction from the employee Share your expectations for future Behavior Together explore options for solving the problem Agree on a time table to review progress Offer support to help or remove obstacles Express confidence in the employees ability to improve

What messages are inappropriate?

Personal insults Conflicting information or too much, all at once Unclear messages causing the other person to guess

How should one give feedback?

Recognize good performance often Provide specific examples in your feedback messages Provide timely feedback, both positive and corrective Listen to the other persons view points and ideas Catch performance problems early, while they are small Solicit as well as provide feedback Check to be sure clear communication has occurred

How do I express developmental needs?

Ask the employee to explain why a Behavior or skill is not being displayed Is it a cant do or wont do problem Ask for specific ways to enhance performance Create an action plan, with measures and deadlines to address development need

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...On Reviewing Performance How do I prepare for the Appraisal Session?

Appraisees should prepare by: Reviewing own performance Coming prepared with data, examples on performance/ non-performance Thinking about a development plan for the next year: Activities youd like to participate in Skills or knowledge youd like to develop Appraiser should prepare by: Having data on areas of performance/non-performance Thinking about the messages to share with the Appraisee Considering development needs for the employee and tracking the extent to which needs identified in the previous development plan have been met, and suggesting mid-course corrections, if required

What should an Appraiser avoid during the Appraisal?

Resist the judgmental roledo not play God Give feedback on each aspect of performance separately Dont review an employee in comparison with another review their performance in relation to the expectations set and the requirements of his/her job Dont dominate the discussionit should be a two-way discussion between the Appraiser and Appraisee Dont preach or ramble onstick to the topics on the Performance Plan and use a problem-solving approach Dont dwell on past problemsfocus on current and future performance Dont be general or vague about areas needing improvementidentify specific actions to improve performance

Any tips for the Appraisal? What are some sources of feedback?
Daily interactions Performance Plan and updates Critical incidents noted during the year Coaching and feedback interactions
Stay focusedlimit the discussion to performance Maintain confidentiality Emphasize strengths and areas for improvement Discuss and develop solutions Listen and be prepared to change your mind Ensure there are no distractions Provide enough time for the feedback session

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Annexure - I

The Process

Key Sections of the Form

Now, this guide will help you understand how each section of the form must be filled. Since Performance Management happens through the entire year, there are some sections of the form that are filled earlier and some at a later point in time. The different sections in the form have been discussed in detail, outlining how, where and by whom the said section is to be filled. The form is available with the HR department, and will be provided to you and your Appraiser at the appropriate time to complete the outlined activities in the process.

1 2 3 4 5 6

Employee Information Form Performance Planning Mid year Review Year-end Appraisal Development Planning Development Plan Review

In case you need further clarifications, please feel free to contact your Appraiser or the HR department.

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Employee Information Form

This Section is the Employee Information Form and will be filled by HR and circulated to you at the beginning of each performance year. It contains a section on your Personal Details, your Manager/ Appraisers details and your career history.

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2 (a) Performance Planning

This Section is the Performance Planning. This Section will be filled in April. It lists KRAs (predefined through the cascade process) along each perspective of the Balanced Scorecard. It also lists Individual KRAs which are specific to your department and which you impact directly. During the discussion, you and your Appraiser will define targets at each point of the Rating Scale. You will also define an Action Plan to achieve each KRA.

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2 (b) Performance Planning

At the end of the discussion, you and your Appraiser will sign off stating that the Goal Setting session is complete.

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Mid Year Review

This Section is the Mid Year Review. This Section will be filled in October. It lists KRAs along each perspective of the Balanced Scorecard. You will fill in the achievement till October in the section provided. Your Appraiser will give you feedback on your achievement against target

Your Manager will then summarize the mid year feedback discussion in the space provided and you will sign off the Mid year Discussion.

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Year-end Appraisal

This Section is the Year-end Appraisal. This Section will be filled in April. You will fill in the achievement against each KRA at the end of the year Based on targets set in the beginning of the year and the achievement at the end of the year, your Manager will give you a Performance Rating

You and your Manager will then sign off the sections relating to the Year-end Appraisal.

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Development Planning

This Section is the Development Planning. This Section will be filled in April. This format is currently applicable for all employees who are not covered under the 360 degree feedback process( below the General Manager). The expected proficiency level for your role will be filled in by HR You will then fill in instances in which you displayed the Leadership Behavior These will then be validated by your Manager and jointly, you will arrive at a rating Based on the gap between expected level and rating, some behavior will be identified as priority for development You will jointly identify development actions that you can undertake to develop these Leadership Behaviours

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Development Planning

Your Manager will then encourage you to discuss your career aspirations and jointly you will define an action plan to move to your aspirational role.

You will then discuss with your Manager, any other development needs that you might have specifically technical skills.

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Development Planning

You and your Manager will then sign off that Development Planning has been completed.

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Development Plan Review

This Section relates to review of the Development Plan. This will be completed in May along with the Performance Planning session. You and your Manager will jointly review each Development Action identified and record the progress on it.

You and your Manager will then sign off that the Development Plan review is completed.

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