Term Paper

INFORMATION SYSTEM INCORPORATES WITH HUMAN RESOURCES
MANAGEMENT
Md. Rofiqul Islam
Mohammad Zahidur Rashid Bhuiyan
Md. Mizanur Rahman
Post-Graduate Diploma in Human Resource Management
Session 2012
Bangladesh Institute of Management
4 Sobhanbag, Mirpur Road
Dhaka-1207

INFORMATION SYSTEM INCORPORATES WITH HUMAN RESOURCES
MANAGEMENT
This Term Paper is submitted to BIM as a partial fulfillment for the Diploma in Human
Resource Management.
S. M. Ariful Islam
Senior Management Counselor
Md. Rofiqul Islam
Roll#116
Session 2012
Roll# 96
Session 2012
Md. Mizanur Rahman
Roll# 97
Session 2012

(ii)
ACKNOWLEDGEMENT
This study will be incomplete until my gratitude and heartfelt regards to my honorable study
supervisor S. M. Ariful Islam, Senior Management Counselor, Bangladesh Institute of
Management is conveyed. His invaluably experienced guidelines and continuous suggestions
encouraged us to step in this study of Information System incorporates with Human Resource
Management. We are simply grateful to our teacher.
In way of the completion of this study we would also like to remember all the help and
support from my colleagues at CARE Bangladesh. Special thanks for my department and IT
for their great tolerance to my boundless queries. We walked together to the path of the
completion of this study.
The contribution of many authors, publishers and firms in the computer industry that
contributed case materials, ideas, illustrations and photographs used in this text are also
thankfully acknowledged.
Md. Rofiqul Islam
Roll#116
Roll# 96
Md. Mizanur Rahman
Roll# 97

(iii)
DECLARATION
We thereby declare that, this term paper has been done by us under the supervision of S. M.
Ariful Islam, Senior Management Counselor, Bangladesh Institute of Management. We also
declare that neither this term paper nor any part of the term paper has been submitted
elsewhere for awarding of any degree or diploma.
Supervised by:
-----------------------------
S. M. Ariful Islam
Senior Management Counselor
Bangladesh Institute of Management
Submitted by:
--------------------------------
Md. Rofiqul Islam
Roll#116
Roll# 96
Md. Mizanur Rahman
Roll# 97

(iv)
ABSTRACT
Human Resources Management (HRM) is always a difficult question for the management of
an organization. In order to support effectively and efficiently this management aspect, in the
information technology (IT) area, the Human Resource Management Information System
(HRMIS) is the key tool for the organization to well organize the HRM information, link it to
the organizational business objectives, and align recourses to support the corporate strategy.
The study provides an introduction to the background organizational perspective aiming
towards a successful and effective scope. A need-based assertion of the organization reveals
the theoretical classification, availability matrices, and other prerequisites of HRMIS. A
structured design and plan against vandalism with a proper maintenance of the network
monitoring both logical and physical security including a supportive environment is the key
for HRMIS. Server performance matrices with a secure server and fault tolerance load
balancing terminology are the other major elements towards a successful data center to
establish a high definition operational information system.

(v)
CONTENTS
Page
LETTER OF TRANSMITTAL………………………...……..……………….. (i)
ACKNOWLEDGEMENT …………………………………………..………… (ii)
DECLARATION………… ……………………………………..…………….. (iii)
ABSTRACT …………………………………………………………...…….… (iv)
CHAPTER
1. INTRODUCTION
1.1 Background of the Term Paper ………………………….… 1
1.2 Problems of the existing system …………………………… 4
1.3 Aim of the Project …………………………………………. 4
1.4 Methodology to be used …………………………………… 5
1.5 Conclusion …………………………………………………. 6
2. HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM
& PERFORMANCE MANAGEMENT SYSTEM
2.1 Introduction ………………………………………………… 7
2.2 HRM Definition ……………………………………………. 7
2.3 HRM Process ………………………………………………. 12
2.3.1 Planning Process …………………………………… 12
2.3.2 Recruitment Process ……………………………….. 12
2.3.3 Selection Process …………………………………... 13
2.3.4 Orientation, training and development process ……. 13
2.3.5 Career planning and development process ………… 14
2.3.6 Performance appraisal process …………………….. 15
2.3.7 Employee compensation and benefit process ……… 15
2.4 Performance Management System ………………………… 16
2.4.1 Performance Management Process …………...……. 16
2.4.1.1 Objectives …………………………..………. 17
2.4.1.2 Key Principles ………….…………..………. 18
2.4.1.2.1 Performance Planning ..…..………. 18
2.4.1.2.2 Performance Monitoring ….……… 19
2.4.1.2.3 Performance Review ..…..…..……. 19

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Page
2.4.2 Performance Planning …………………………….... 20
2.4.2.1 Objectives …………………………..………. 20
2.4.2.2 Benefits………….…………..………………. 21
2.4.2.3 Performance Planning Process ……………… 21
2.4.2.4 Performance Planning Documents ………….. 22
2.4.2.5 Annual Operating Plans ………..……………. 22
2.4.2.6 Job Description ………..…………………….. 23
2.4.2.7 The Planning Session ………..………………. 24
2.4.2.8 Focus Areas for the Planning Session ……….. 25
2.4.2.8.1 Developing AP Objectives ……….... 25
2.4.2.8.2 Measures and Results …………….... 26
2.4.2.9 Core Values and Org. Competencies ………… 26
2.4.2.9.1 Core Values ………………………… 27
2.4.2.9.2 Organizational Competencies ……… 27
2.4.2.10 Management Standards ………………….… 28
2.4.2.11 Monitoring and Feedback ………………..… 30
2.4.2.12 Annual Development Plan ……………….… 32
2.4.2.13 Performance Planning Tools …………….… 32
2.4.2.13.1 How to Set SMART Obj. ………..… 32
2.4.2.13.2 Multi-rater Feedback Guidelines ……34
2.4.3 Performance Monitoring …………………………….. 34
2.4.3.1 Objectives ……………………………….… 35
2.4.3.2 Observing Performance ………………….… 35
2.4.3.3 Feedback …………………………………… 36
2.4.3.4 Methods for SP Feedback ……………….… 36
2.4.3.5 Coaching ………………………………....… 37
2.4.3.6 Coaching for SP Situations ………………… 37
2.4.3.7 Coaching for Continued Performance ……… 38
2.4.3.8 Coaching for Improved Performance …….… 38
2.4.3.9 Motivating the High Performer …………..… 39
2.4.3.10 Employee Responsibilities ……………….… 41
2.4.3.11 Effective Communication ………………….. 42

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Page
2.4.4 Performance Review ……………...……………….…. 42
2.4.4.1 Objectives ……………...………………….…. 43
2.4.4.2 Assessing Performance ...………………….…. 43
2.4.4.3 Review Performance Related Information .….. 44
2.4.4.4 Guidelines for Documenting Performance …… 45
2.4.4.5 Prepare the Review …...………………….….... 45
2.4.4.6 Annual Performance Assessment ………….….. 46
2.4.4.7 Preparation for the APS Session …………….… 47
2.4.4.8 Performance Rating Dif. And Clarifications .…. 47
2.4.4.9 Performance Improvement .………………….… 49
2.5 HRMIS in Organization ………………………………………. 51
2.6 Conclusion ……………….…………………………………… 51
3. GENERAL FINDINGS
3.1 Introduction ………………………………………………… 52
3.2 Basic Concepts ……………………………………………… 52
3.3 HR and Information Systems ……………………………….. 54
3.3.1 Impact of IS on HR strategic management …………. 54
3.3.2 Benefits of HRMIS …………………………………. 54
3.4 Scope define ……………………………………………….. 55
3.5 Information requirement ……………………………………. 56
3.5.1 Job Description ……………………………………... 57
3.5.2 Annual Training Plan ………………………………. 57
3.5.3 Peer Feedback ………………………………………. 57
3.5.4 Client Feedback …………………………………….. 57
3.5.5 Self Assessment ……………………………………. 58
3.5.6 Supervisors …………………………………………. 58
3.6 Data elements ……………………………………………….. 58
3.7 Entity Relationship Diagram (ERD) ………………………... 59
3.8 Database Design …………………………………………….. 60
3.9 Conclusion …………………………………………………... 60

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Page
4 MAJOR FINDINGS
4.1 Introduction ………………………………………………… 61
4.2 Critical Analysis ………………………………………….… 61
4.3 Conclusion ………………………………………………….. 63
5 CONCLUSION
5.1 Analysis of the Contribution ………………………………. 64
6 RECOMMENDATION
6.1 Recommendations and Suggestions ………………………. 68
REFERENCES …………………………………………………….. 70
ANNEXURES
Annexure I ………………….………………… A(i) – A(v)
Annexure II ……………………...…………… A(vi)
Annexure III ……………………...……………A(vii)
Annexure IV ………………….……………… A(viii) – A(xiv)
Annexure V ………………….…………….… A(xv) – A(xvi)
Annexure VI ………………….……………… A(xvii) – A(xxiii)
LIST OF FIGURES
Figure 1: HRM Definition ………..………………………… 9
Figure 2: Entity Relationship Diagram …………………….. 59

1
Chapter 1
Introduction
1.1 Background of the Term Paper
In the 21st
Century, no country can develop without the use of Information Technology and
Automated System. We have to spend money on hardware and software. The percentage of
money we spend on software and hardware, mostly we have to spend on Software. Plus, the
price of software is getting higher every year.
Organizations are spending billions of dollars every year for further improvement of Human
Resources Management. Automation is one of the parts of that. Here we will emphasis only
the performance management portion. To develop software within organization initiative, we
can save the money and use this money for other development project. We are far away from
the use of automated system. Information Technology has reached only in
Telecommunication Industries, Financial Institute and in some Multi National Company.
Information Technology has also been introduced in Governmental institute but, still most
cases planning stages, may be some of them in implementation stage. The country is still far
away from the blessings of new digital age.
Invariably, Human Resource Management (HRM) issues have been major concern for
managers at all levels, because they all meet their goals through the efforts of others, which
require the effective and efficient management of people. The spacious array of HRM
activities for example, planning, recruiting, selection, and training just to mention but few
place enormous responsibilities on supervisors and managers alike. These embrace analyzing
jobs, planning labor needs, selecting employees, orienting and training employees, managing

2
compensation, communicating (which includes counseling and disciplining), and maintaining
employee commitment.
In addition to the already mentioned activities are, ensuring fair treatment, appraising
performance, ensuring employee health and safety, building and maintaining good employee/
labor relations; handling complains and grievances, and ensuring compliance with human
rights, occupational health and safety, labor relations, and other legislation affecting the
workplace. Regardless of field of expertise, from accounting to production control, learning
about employee rights, employer responsibilities, and effective HRM practices may provide
all managers with knowledge that enables them to perform more effectively.
However, according to Stewart (1996), the Human Resource Management function has faced
a scuffle in justifying its position in organizations. Firms easily justify expenditures on
training, staffing, reward, and employee involvement systems in favorable conditions, but
when faced with financial difficulties, such Human Resource (HR) systems become prime
target for cutbacks. Nonetheless, introducing Strategic Human Resource Management
(SHRM), in exploring HR’s supportive role in business strategy, presented a possibility for
demonstrating its value to the firm.
Lately, the increasing pressure to support strategic objectives and the greater focus on
shareholder value have led to changes in both job content and expectations of HR
professionals (Storey et al., 2000; Ball, 2000)[Ref-8] [Ref-10]
. Similarly, Schuler et al., (2001)[Ref-
7]
and Mayfield et al., (2003) noted that one such major changes included contemporary use
of Information Systems (IS) in support of the HRM process. More so, a careful analysis
indicated that increased Human Resource Management Information Systems (HRMIS) usage

3
enabled improved professional performance and thus facilitated involvement in internal
consultancy activities (PMP (UK) Ltd 1997). In addition, according to Ulrich (1997), using
HRIS provides value to the organization and improves HR professionals’ own standing in the
organization.
HRMIS provides management with strategic data not only in recruitment and retention
strategies, but also in merging HRMIS data into large-scale corporate strategy. The data
collected from HRMIS provides management with decision-making tool. Through proper HR
management, firms are able to perform calculations that have effects on the business as a
whole. Such calculations include health-care costs per employee, pay benefits as a percentage
of operating expense, cost per hire, return on training, turnover rates and costs, time required
to fill certain jobs, return on human capital invested, and human value added. It must be
noted though, that, none of these calculations result in cost reduction in the HR function
(Gerardine DeSanctis, 1986: 15). The aforementioned areas however, may realize significant
savings using more complete and current data made available to the appropriate decision
makers. Consequently, HRMIS are seen to facilitate the provision of quality information to
management for informed decision-making. Most notably, it supports the provision of
executive reports and summaries for senior management and is crucial for learning
organizations that see their Human Resource as providing a major competitive advantage.
HRMIS is therefore a medium that helps HR professionals perform their job roles more
effectively (Grallagher, 1986; Broderick and Boudreau, 1992).
Even though, numerous studies in this area have provided substantial empirical and
theoretical contributions to the field of HRMIS this area of investigation is still in its infancy.
Interestingly, little however is known about the role of HRMIS in SHRM. As the pressure to

4
shift from HRM to SHRM keeps on mounting, coupling with severe global competition, and
in conjunction with the ever-increasing demand for HRMIS, further research is still needed in
this field.
1.2 Problems of the existing System
Existing system are as follows:
1. Staff information preserves in Excel file.
2. Transaction Tracking.
3. Training Information.
4. Manual Reports.
Problems of the existing system are;
1. Working scope is limited.
2. Not integrated fully with information system.
3. Less flexibility.
4. Time consuming.
5. Reports not fulfill management requirements.
6. Developed with the help of Excel file.
1.3 Aim of the Project
i. Major Objective:
The major objective is to study the nature and effectiveness of the information
system in an organization, analysis the performance management through
information system and make policy recommendation for improvement. This
would assist policy makers and development practitioners to review and

5
update the existing policies toward performance management and contribute
in further accelerating the process.
ii. Specific Objective:
a. To analysis the cause of performance variation, specially low
performance.
b. To examine the various contributing factors such as organization
values, best practices, initiatives etc. that work for better environment.
c. To study the role of management.
d. To contribution of the employee.
e. To analysis the effectiveness of information system.
1.4 Methodology to be used
The following methodology would be used for this project.
 Sampling: For this purpose we have chosen the position Section Support Manager-HRD
& M in CARE-Bangladesh INGO.
 Source of Data: Performance Appraisal of the position Section Support Manager-HRD
& M.
 Data Collection Tools and Techniques: Data collection tools will be Performance
Appraisal format, Questionnaire, 3600
feedback and Client Survey. And data collection
techniques will be Discussion, Previous Documents, and Interview etc.
 Study Area: Performance Management System of CARE-Bangladesh for the position of
Section Support Manager.
 Major Activities: Based on the analysis of performance through some key indicators,
identified major activities are;

6
• System Analysis, Process Analysis, Function Analysis.
• Discus and share opinion.
• Questionnaire finalization.
• Design Draft Database.
• Collect data through questionnaire.
• Input data in the database.
• Analysis through query.
1.5 Conclusion
In conclusion, the development of a project management culture within the organization has
meant a long-term commitment. One cannot really pinpoint in time when it began, but like
most other organizations, my organization has progressed along a path of project
management maturity. As a result of a major project failure in the early 1990’s, there was
recognition of the need for a structured approach to managing projects to increase their
likelihood of success. My organization’s project management methodology will be develop
and evolve over the past ten years. It has been an iterative process with input from various
parts.
The Project Management Resources and Information Project will be an exercise in
organizational change management. It resulted in the establishment of my organization
Project Management Framework and a small Project Services team. This team continues to
work collaboratively with our practitioners to keep our project management culture alive and
healthy. This work does require passion, commitment and continual championship for ‘the
cause’.

7
Chapter 2
Human Resource Management Information System & Performance
Management System
2.1 Introduction
The HRM concept is elaborated from different and varying view points. More so, the various
definitions of the concept, context and scope of HRM and its associated processes are
presented. The chapter ends with a summary. The term ‘Human Resource Management’ has
been the subject of considerable debate, and its underlying philosophy and character are
highly controversial. Much of this controversy stems from the absence of a precise
formulation of an agreement on its significance and definition (Storey, 1989; and 1995a) [Ref-
8]
, as cited by Bratton and Gold (2003: 7)[Ref-2]
. Obviously, definition of the subject matter is
needed for analysis and understanding of HRM theory and practice.
2.2 HRM definition
HRM has a variety of definitions but there is general agreement that it has a closer fit with
business strategy than previous models, specifically personnel management. In all the debates
about the meaning, significance and practice of HRM, nothing seems more certain than the
link between HRM and performance (HRM Guide October 2006). Below are some of the
definitions of HRM, although it can be argued that these will only be ones of several possible
definitions.
De Cenzo and Robbins (1996: 8)[Ref-3]
defined HRM as the part of the organization that is
concerned with the people dimension, and it is normally a staff or support function in the
organization. HRM role is the provision of assistance in HRM issues to line employees, or

8
those directly involved in producing the organization’s goods and services. Acquiring
people’s services, developing their skills, motivating them to high levels of performance, and
ensuring their continuing maintenance and commitment to the organization are essential to
achieving organizational goals. This is much the case regardless of the type of organization,
government, business, education, health, recreation, or social action. The authors proposed an
HRM specific approach as consisting of four functions- staffing, training and development,
motivation, and maintenance.
Addition, Bratton and Gold (2003: 7) [Ref-2]
define HRM as the strategic approach to
managing employment relations which emphasizes that leveraging people’s capabilities is
critical to achieving sustainable competitive advantage. This is achieved through a distinctive
set of integrated employment policies, programs and practices. The authors presented HRM
functions as planning, recruitment and selection, appraisal and performance management,
reward management, development, employee relations, health and safety, and union-
management relations. Moreover, to Alan Price (2004: 32)[Ref-1]
HRM aims at recruiting
capable, flexible and committed people, managing and rewarding their performance and
developing key competencies.
Contributing to the working definition of HRM is Abecker et al., (2004)[Ref-13_1]
. They see
HRM as a strategic and target oriented composition, regulation and development of all areas
that affect human resources in a company. Efficient and effective management of these
resources to a large extend, affects human resource behavior, and consequently the
performance of the organization as a whole. Moreover, the authors identified HRM with the
field it covers. These include planning aspects- personnel requirements analysis and

9
personnel asset analysis, and change aspects- recruitment, personnel development and labor
displacement (Ibid). Next, is the diagrammatic representation of the said field?
Figure
According to Torrington et al., (2005: 5) [Ref-9]
HRM is fundamental to all management
activity and has evolved from a number of different strands of thought. It is best described as
a loose philosophy of people management rather than a focused methodology. Thus,
distinction has been made between HRM as body of management activities on one hand
-1 (HRM Definition)
It is however, somehow strange, that, an important aspect of HRM, payroll or
compensation/payment is missing from the field in figure 1 above propounded by the authors.
Abecker et al., (2004) [Ref-13_1]
like the previous other authors, did not present a conclusive
and detailed definition of HRM including the other concepts (HR processes).
Lastly considered are the opinions of various management scholars who have taken a more
in-depth look at the whole concept of HRM. These opinions should be given the greatest
weight, since they reflect more in-depth research on the subject than is done by most textbook
authors. Few such authors are Dessler et al., (1999)[Ref-4]
, and Torrington et al., (2005)[Ref-9]
.

10
(generically described as personnel management) and then on the other as a particular
approach to execute those activities (carrying out people-oriented organizational activities
than traditional personnel management).
An organization gains competitive advantage by using its employees effectively, drawing on
their expertise and ingenuity to meet clearly defined objectives. Torrington et al., (2005: 5)
[Ref-9]
identified the role of the human resource functions with the key objectives. These four
objectives are the corner stone of all HR activities. These include Staffing, Performance,
Change-management and Administration. Staffing objective focuses on finding the
appropriate pool of human resources needed to ensure full and timely supply of work force
(Ibid). It therefore involves designing organizational structures, identifying working
conditions for different groups of employees followed by recruiting, selecting and developing
the personnel required to fill the roles. Performance objective aims at ensuring workforce
motivation and commitment for effective performance. Consequently, employees training
and development remain important.
Moreover, managing change effectively and efficiently remains one of the core objectives in
almost every business. Key issues here include recruiting and/or developing people with the
required leadership skills to drive the change process. Change agents are employed to
encourage acceptance of change by coming out with reward systems associated with the
change process. Employees’ involvement is also paramount here and is encouraged. The aim
is to avoid resistance to change, more especially where it involves cultural changes (attitude,
philosophy or long-present organizational norms). Administration objective aims at
facilitating the smooth running of the organization. Hence, there is the need for accurate and
comprehensive data on individual employees, records of achievement in terms of

11
performance, attendance, training records, terms and condition of employment and personal
details are (Ibid).
However, for the purpose of this study, literature on the HRM concept will be based on the
opinions of Dessler et al., (1999) [Ref-4]
. The authors defined HRM as the management of
people in organizations. It consists of the activities, policies, and practices involved in
obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate
number and skill mix of employees to accomplish the organization’s objectives. The goal of
HRM is to maximize employee’s contributions in order to achieve optimal productivity and
effectiveness, while simultaneously attaining individual objectives and societal objectives
Dessler et al., (1999: 2) [Ref-4]
. To the authors, the function of HRM include assisting the
organization in attracting the quality and quantity of candidates required with respect to the
organization’s strategy and operational goals, staffing needs, and desired culture. Helping to
maintain performance standards and increase productivity through orientation, training,
development, job design, effective communication, and performance appraisal. Helping to
create a climate in which employees are encouraged to develop and utilize their skills to the
fullest. Helping to establish and maintain cordial working relationship with employees.
Helping to create and maintain safe and healthy work environment. Development of
programs to meet economic, psychological, and social needs of the employees. Helping the
organization to retain productive employees and ensuring that the organization complies with
provincial/territorial and federal laws affecting the work place such as human rights,
employment equity, occupational health and safety (Ibid).

12
2.3 HRM processes
This sub section illustrates the processes involved in executing the HRM functions. Each of
the functions: planning, recruitment, selection, orientation and training, performance
appraisal etc. goes through a process. Unless otherwise stated, the rest of this section will be
drawn from (Dessler et al., 1999)’s [Ref-4]
literature based on pages 165 to 533.
2.3.1 Planning process
Human Resource Planning (HRP) process reviews human resources requirements to ensure
that the organization has the required number of employees, with the necessary skills, to meet
its goals, also known as employment planning. HRP is a proactive process, which both
anticipates and influences an organization’s future by systematically forecasting the demand
for and supply of employees under changing conditions, and developing plans and activities
to satisfy these needs. Key steps include forecasting demand for labor considering
organizational strategic and tactical plans, economic conditions, market and competitive
trends, social concerns, demographic trends, and technological changes.
2.3.2 Recruitment process
Recruitment is the process of searching for and attracting an adequate number of qualified job
candidate, from whom the organization may select the most appropriate to field its staff
needs. The process begins when the need to fill a position is identified and it ends with the
receipt of résumés and completed application forms. The result is a pool of qualified job
seekers from which the individual best matching the job requirements can be selected. The
steps in recruitment process include identification of job openings, determination of job
requirements, choosing appropriate recruiting sources and methods, and finally, generating a

10
13
pool of qualified recruits. Job openings are identified through human resource planning or
manager request. Next is to determine the job requirements.
This involves reviewing the job description and the job specification and updating them, if
necessary. Appropriate recruiting sources and methods are chosen because there is no one,
best recruiting technique. Consequently, the most appropriate for any given position depend
on a number of factors, which include organizational policies and plans, and job
requirements.
2.3.3 Selection process
Selection is the process of choosing individuals with the relevant qualifications to fill existing
or projected openings. Data and information about applicants regarding current employees,
whether for a transfer or promotion, or outside candidates for the first time position with the
firm are collected and evaluated. The steps in the selection process, in ascending order
include preliminary reception of applicants, initial applicant screening, selection testing,
selection interview, background investigation and reference checking, supervisory interview,
realistic job previews, making the hiring decision, candidate notification, and evaluating the
selection process. However, each step in the selection process, from preliminary applicant
reception and initial screening to the hiring decision, is performed under legal, organizational,
and environmental constraints that protect the interests of both applicant and organization.
2.3.4 Orientation, training and development process
Employee orientation is the procedure of providing new employees with basic background
information about the firm and the job. Is more or less, considered as one component of the
employer’s new-employee socialization process. Socialization process is an ongoing process

14
of initialing in all employees the prevailing attitudes, standards, values, and patterns of
behavior that are expected by the organization. Training however is the process of teaching
new or present employees the basic skills/competencies needed to perform their jobs.
Whereas training focuses on skills and competencies needed to perform employees’ current
jobs, employee and management development is the training of long-term nature. The aim is
to prepare current employees for future jobs with the organization or solving an
organizational problem concerning, for example, poor interdepartmental communication.
Training and development processes include needs analysis, instructional design, validation,
implementation, and evaluation and follow-up.
2.3.5 Career planning and development process
It is the deliberate process through which persons become aware of personal career related
attributes and the lifelong series of activities that contribute to their career fulfillment.
Individuals, managers, and the organization have role to play in career development.
Individuals accept responsibility of own career, assess interests, skills, and values, seek out
career information and resources, establish goals and career plans, and utilize development
opportunities.
The career stage identification entails career cycle (the stages through which a person’s career
evolves). These stages include the following: growth, exploration, establishment,
maintenance, and decline stages. Occupational orientation identification is the theory by John
Holland. This theory enumerates six basic personal orientations that determine the sorts of
careers to which people are drawn. They include realistic orientation, investigative
orientation, social orientation, conventional orientation, enterprise orientation, and artistic
orientation.

15
2.3.6 Performance appraisal process
Performance appraisal may be defined as any procedure that involves setting work standards,
assessing employee’s actual performance relative to these standards, and providing feedback
to the employee with the aim of motivating the worker to eliminate performance deficiencies
or to continue to perform above par.
Processes in performance appraisal contain three steps: defining performance expectations,
appraising performance, and providing feedback. First, defining performance expectation
means making sure that job duties and standards are clear to all. Second, appraising
performance means comparing employees’ actual performance to the standards that has been
set, which normally involves some type of rating form. Third, performance appraisal usually
requires one or more feedback sessions to discuss employees’ performance and progress and
making plans for any required development. Some of the appraisal methods include graphic
rating scale, alternation ranking, paired comparison, forced distribution, and critical incident
methods.
2.3.7 Employee Compensation and benefits process
Employee compensation involves all forms of pay or rewards accrued to employees and
arising from their employment. This however consists of two main components: direct
financial payments, and indirect payments. While direct financial payments are in the form of
wages, salaries, incentives, commissions, and bonuses, indirect payments are in the form of
financial benefits like employer-paid insurance and vacations. Moreover, legal considerations
in compensation, union influences, compensation policies, and equity and its impact on pay
rates are the four basic considerations influencing the formulation of any pay plan.

16
Benefits are indirect financial payments given to employees. These may include
supplementary health and life insurance, vacation, pension, education plans, and discounts on
say company products. Furthermore, income and medical benefits to victims of work-related
accidents or illness and/or their dependents, regardless of fault are all part of employees’
compensation.
The processes in establishing pay rates involve the following five steps: First, conducting
wages/salary survey to determine the prevailing wage rates for comparable jobs, which is
central in job pricing. Second, determine the relative worth of each job (job evaluation) by
comparing the job content in relation to one another in terms of their efforts, responsibility,
and skills. This eventually results in wage or salary hierarchy. Third, group similar jobs into
pay grades, a pay grade comprises of jobs of approximately equal value or importance as
determined by job evaluation. Forth, price each pay grade using wage curves. A wage curve
is graphical description of the relationship between the value of job and the average wage
paid for the job. However, if jobs are not grouped into pay grades, individual pay rates have
to be assigned to each job. Fifth, fine tune pay rates. This involves correcting out-of-line rates
and usually developing rate ranges.
2.4 Performance Management System
2.4.1 Performance Management Process
CARE mission is to serve individuals and families in the poorest communities in the world. It
is established upon the core values of Respect for the dignity and worth of every human
being, Integrity, Commitment to service, and Excellence. Superior performance of each
individual and work unit/team is the foundation of our excellence as a global organization.

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To ensure that CARE accomplishes its mission, we must have a mechanism in place that
enables us to monitor the performance of employees at every level, take corrective action
when necessary, and reward strong performance. The Performance Management process is
such a mechanism.
Performance management at CARE is a cycle of continuous performance enhancement
consisting of three major phases: Performance Planning, Performance Monitoring, and
Performance review. Each dynamic, interactive phase includes distinct activities to be carried
out during the annual performance cycle by managers and employees. Each phase is fully
described in this handbook.
2.4.1.1 Objectives
CARE's Performance Management process is designed to:
• Link the organization's mission, strategy, priorities, and core values to individual
performance and contributions.
• Articulate, clarify, and review performance expectations.
• Monitor progress toward the achievement of organizational, unit/team, and individual
objectives.
• Encourage continuous feedback and communication between employees and
managers.
• Support employee growth and development.
• Provide the basis for merit increases, promotions, and rewards.

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2.4.1.2 Key Principles
CARE's Performance Management process operates on the basic principles of performance
planning, performance monitoring, and performance review. An effective process requires
that managers and non-managers adhere to these principles to achieve the organization's
objectives.
2.4.1.2.1 Performance Planning
Performance Planning is the process of establishing performance expectations. It allows
managers, units/teams, and individuals to:
• Set achievable objectives within fiscal, capital, physical, and other resource
constraints.
• Understand the relationship among objectives of the organization, unit/team, and
individual, as expressed in the Strategic Plan, the Annual Operating Plan, the
Individual Annual Performance Objective, and the Job Description.
• Distinguish between objectives that are achievable and objectives that lie totally
beyond an employee's capability.
• Develop accurate measures of success for each objective.
• Streamline activities to minimize duplication of effort.
• Determine realistic timeframes for completing tasks.
• Prioritize activities (especially when unexpected demands arise).
• Identify the Core Values and Competencies to be demonstrated in the performance
period.
• Determine the skills and capabilities needed to accomplish performance objectives.
• Establish a reasonable number of priorities.

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2.4.1.2.2 Performance Monitoring
Performance Monitoring during the Performance Management process provides opportunities
for ongoing communication about performance and performance expectations; adjustment of
organizational and unit/team priorities; and an exchange of information on individual
priorities and progress.
Performance Monitoring consists of formal and informal feedback and coaching. In an
effective feedback/coaching session, managers and employees should:
• Consider the cultural context in which communication occurs, given the diversity of
the CARE staff.
• Listen effectively.
• Discuss issues openly and honestly.
• Provide both formal and informal feedback.
• Give and receive positive and negative feedback clearly and sincerely.
• Focus on behavioral performance.
• Document observations and discussions concisely and objectively.
2.4.1.2.3 Performance Review
Performance review is that part of the Performance Management process that assesses and
measures performance against established organizational, unit/team, and individual
objectives. It allows managers and employees to:
• Gather relevant information about performance.
• Assess performance for a performance period accurately and fairly.
• Recognize patterns of behavior that may affect performance.
• Synthesize data collected into meaningful summaries that accurately describe
performance.

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• Examine possible causes of performance problems.
• Develop feasible solutions for inadequate performance.
• Incorporate competencies and behavioral anchors.
2.4.2 Performance Planning
Performance planning is the foundation of CARE's Performance Management process. This
critical first phase of the performance management cycle:
• Establishes an action plan and frame of reference for setting expectations, reviewing,
and evaluating performance throughout a performance period.
• Ensures that employees' efforts are directed toward achieving the organization's
ultimate objectives as articulated in its strategic plan.
• Leads to the formulation of an individual Annual Performance objective based on the
employee's job description (JD) and annual operating objectives for a Division,
Department or Unit's AOP.
2.4.2.1 Objectives
The Performance Planning phase requires that managers and employees:
• Arrive at an agreement about individual objectives that are to be achieved during a
performance period.
• Determine the key competencies for successful performance for each objective. This
will provide benchmarks for employees to measure their performance throughout the
year.
• Determine the resources needed to meet performance expectations.
• Decide how performance will be monitored, reviewed, and evaluated throughout the
period.

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• Reach a general understanding of the development activities that may be needed to
meet performance expectations.
2.4.2.2 Benefits
Both the manager and employee need to be actively involved in all aspects of the planning
process. When there is joint participation of both managers and employees in performance
planning the benefits are:
• Better understanding of the employees' roles and how they contribute to the
accomplishment of organizational and unit/team objectives.
• More accurate information on the manager's expectations of employees and
employees' expectations of their managers.
• Understanding of how individual and unit/team performance will be measured.
• Enhanced employee morale due to opportunities for input, resulting in greater
employee acceptance and trust of the process.
2.4.2.3 Performance Planning Process
To adequately plan performance, managers and employees will need to follow a four-step
process, as follows:
• The manager and employee review a series of key documents, described below.
• On the basis of this document review, and preliminary formal or informal discussions
with the manager if needed, the employee prepares a draft Annual performance
Objectives in the APAA form.
• After a full discussion in a performance planning session, the manager and employee
agree on the:
 Objectives to be accomplished during a given performance period.

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 Measures indicating success in each objective.
 Core values and competencies that must be demonstrated.
 Manner in which monitoring and feedback will occur.
 Employee’s development needs (Annual Development Plan)
• Finalization of the Annual Performance Agreement and Assessment based on the
performance planning session.
2.4.2.4 Performance Planning Documents
In planning performance, reviewing the documents below is vital in preparation for
developing the employee's Individual Operating Plan:
• Annual Operating plan (CO wide/Davison/Unit)
• Job Description
• Job Specific Competencies
• Most recent Annual Agreement and Assessment Form (APAA)
• Interim Performance review
2.4.2.5 Annual Operating Plans
The Country Office Wide Annual Operating Plan outlines strategies and objectives to support
achievement of the organizational Strategic Plan for a fiscal year. Using the Country Office
wide AOP, each division develops its own plan and priorities to support the achievement of
the Country Office wide AOP. These divisional AOPs, in turn, form the basis for
departmental or unit AOPs, which are then used to determine the needed individual
contributions.

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In the context of planning individual performance, employees and managers should review
the Country office wide and Division/Department/Unit AOPs to:
• Determine critical priorities for the unit.
• Identify current work activities that support the AOP.
• Identify activities that should be changed or eliminated because they do not advance
the priorities.
• Generate specific ways the employee can contribute.
• Identify areas of the job description that need to be emphasized.
• Understand capabilities that will be necessary to achieve performance.
2.4.2.6 Job Description
The Job Description defines the scope and parameters of the work the employee may be
expected to carry out and the capabilities needed to do the job. Both the manager and
employee should review the current Job Description to:
• Understand all responsibilities and tasks.
• Verify the accuracy of current duties, organizational purpose, and responsibilities.
• Determine which of the tasks and responsibilities will be reflected on the Annual
Performance Objectives (APO).
• Determine priority activities.
• Identify expectations about performance outcomes.
If a job description is out of date or inaccurate, the manager should notify Human Resources.

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2.4.2.7 The Planning Session
With the preliminary preparation finished and a draft APAA in hand, the manager and
employee are ready for their performance planning session. Both manager and employee
must commit to creating an environment and a performance plan that maximizes both the
organization's needs and the employee's capabilities and motivation.
During the Planning Session: - The manager and employees should arrive at the session
prepared to:
• Maintain perspective and focus.
• Strive for mutually satisfactory decisions.
• Listen effectively.
• Focus on issues and organizational needs, not personalities.
• Allow adequate time, even if a second meeting must be held.
• Work to build and nurture trust and respect.
The purpose of the planning session is that both the manager and employee should:
• Agree on the contents of the employee’s APAA and ensure that the APAA is mutually
understood, and a common understanding established of the basis for year-end
appraisal
• Clarify intended outcomes of the Annual Performance objectives to ensure that they
are easily verifiable and help measure achievement of unit milestones
• Discuss core values, competencies and development needs.
The session should address the questions:
• What will be the main performance areas for the next year?

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• What constitutes fully successful performance in each area?
• How will results be tracked and measured?
• What behaviors are needed to demonstrate core values?
• What competencies are needed to perform satisfactorily?
• What kind of support and resources are required for successful performance?
• What needs to be done to bolster skills and abilities for moving forward?
After the Planning Session
Both manager and employee should follow up and follow through with each other on:
• Unresolved Issues
• Performance Monitoring and Feedback
• Finalization of the APAA
2.4.2.8 Focus Areas for the Planning Session
Below in detail are the main focus areas for discussion during the performance planning
session.
2.4.2.8.1 Developing Annual Performance Objectives
The first major area to consider is a set of Annual performance objectives. Performance
objectives define what is to be achieved or accomplished during this performance period,
taking into account on-going job responsibilities. Create objectives that are specific,
measurable, attainable, relevant and time-bound (SMART). (See the Tools section of this
chapter for How to set SMART objectives)

26
Once objectives have been agreed on, the next step is to determine the actions that are critical
in bringing about the result. Together the manager and employee identify key activities for
each objective. Then they create a realistic timeline for completing each activity. It is
important at this point to discover any barriers to performance that exist and to identify the
resources or support the employee will need to accomplish each objective. Making this
determination early will also help the manager understand how much guidance the employee
will need during the performance period.
2.4.2.8.2 Measures and Results
Measures for each objective need to be developed. Measures answer the questions:
• How do we know if the employee is succeeding in meeting the objectives?
• What does good performance look like?
Measures should outline what constitutes fully successful performance in each area. They are
the indicators of success. Measures can be quantitative (by numbers or facts), qualitative (by
observation, description, or anecdotal), or both, depending on the objective. It is critical to
develop measures that will help both manager and employee agree when performance is on
track and when it is not.
There are many ways to look at performance, including quantity, quality, cost, results,
methods and time. (See How to measure results in the Tools section of this chapter.)
2.4.2.9 Core Values and Organizational Competencies
A key component of CARE's Performance Management process is how and to what degree
core values and organizational competencies are demonstrated in the employee's

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performance. Since these are a part of the review process, it is important to get agreement on
the role of core values and competencies in the job performance.
2.4.2.9.1 Core Values
CARE requires that all employees be reviewed against the following core values regardless
of their position in the organization. During planning, employee and manager need to agree
on the types of actions that reflect core values.
• Respect for the dignity and worth of every human being: We affirm the dignity,
potential and contribution of participants, donors, partners, and staff.
• Integrity: Act consistently with CARE's mission, be honest and transparent in what
we do and say, and accept responsibility for our collective and individual actions.
• Commitment to Service: Working together effectively to serve the larger community.
• Excellence: We constantly challenge ourselves to higher levels of performance and
learning to achieve greater impact.
2.4.2.9.2 Organizational Competencies
Organizational competencies represent the core skills, behaviors, and knowledge required to
carry out job responsibilities, and the APAA objectives and activities. The core
organizational competencies are grouped in four clusters. These, in brief, include:
• Leading Change: Managing and facilitating change in the face of uncertainty, using
periods of chaos to test new ideas and approaches, strategic decision-making,
understanding context, critically analyzing evolving situations, systems thinking.
• Managing Self: Managing stress and uncertainty for self and others, proactive
problem solving, handling challenges in a manner consistent with core values,
generating innovative solutions, dealing effectively with multiple priorities.

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• Building and Nurturing Relationships: Collaborating effectively with others,
negotiating outcomes that win acceptance of all parties, conveying information in a
way that is clearly understandable, listening, building commitment to ideas and plans.
• Working with Others for Results: Coaching, delegating responsibility, facilitating
the completion of team goals, fostering trust and dialogue to enhance performance of
self and others, establishing partnerships, choosing effective approaches and courses
of action.
Not all competencies apply to every job. An employee’s job defines which of the
competencies are relevant. Job-specific competency profiles and a Competency.
2.4.2.10 Management Standards
There are six components to our Standards for anyone who supervises or manages another
employee at CARE:
• Set Direction
 Establish direction and define actions for individuals and teams that are
aligned with CARE strategy through the Annual Performance
Management system, unit plans and other planning tools
 As organizational needs change, adjust plans and resources to reset
direction
 Clarify that direct reports and teams clearly and consistently
understand their roles, priorities and expectations of their assignments

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• Coach and Develop
 Improve performance of direct reports and teams through observation,
feedback, training and the timely use of the Annual Performance
Management process
 Provide direct reports with the materials, tools, time and resources to
do their jobs
 Engage direct reports in career development discussions
 Encourage innovative thinking
• Promote Staff Wellness and Safety
 Promote workplace and environment safety for all direct reports
 Provide support to direct reports that fosters good mental, social and
physical well being
• Practice and Promote Compliance
 Promote high ethical standards and conduct in accordance with
CARE’s Code of Conduct
 Comply with CARE policies and procedures, including those of the
departments of finance, travel, procurement, information technology,
program and donor requirements
 Provide timely reporting of division, unit, and/or team results as
required for organizational performance tracking

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• Model Gender Equity and Diversity
 Display sensitivity to and for the perspectives and interest of those
from different cultural backgrounds, belief systems and
world-views
 Advocate for fairness and equal opportunity in decision-making and in
implementing policies
and practices
 Ensure that plans and actions reflect the results of efforts from diverse
representation and broad participation in all activities
• Communicate.
 Share general business information on a regular and timely basis
 Inform direct reports of changes in the organization and how they may
affect their work
 Find opportunities for direct reports to celebrate results and exchange
knowledge and solutions to problems
 Foster two-way communication and seek feedback from direct reports
on your own communication effectiveness
Development Planning Guide, which details all competencies and the behaviors associated
with them, are available to refer.
2.4.2.11 Monitoring and Feedback
It is necessary to determine how performance will be monitored or tracked and how and
when feedback will occur. Performance is more likely to begin and remain on track if clear

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monitoring and feedback processes are in place at the start of a performance cycle.
Monitoring allows both the manager and employee to:
• Recognize problems before they have a chance to escalate.
• See how the employee is progressing.
• Determine if s/he needs redirecting or coaching.
• Recognize and praise good performance.
Feedback needs to be given to the employee throughout the performance cycle; otherwise the
employee may not be aware that performance needs to be corrected. More about when and
how to give feedback can be found in the Performance Monitoring section of this handbook.
Formal feedback is collected throughout the year using a variety of methods, from private
conversations with observers to formal surveys. Using these methods ensure that all
employees receive, at a minimum, two times a year feedback from sources other than their
manager.
Multi-Rater Feedback, which is mandatory at CARE, is a formal method of collecting
performance-related information from a variety of sources, e.g., supervisor, peers, direct
reports, and possibly internal and external customers. The varied perspectives these
individuals provide on performance results, skills, specific behaviors, and areas for
development give an appraiser a clearer understanding of the employee's performance. At the
beginning of the performance period, selection of feedback sources should be made for this
process.
Guidelines for Multi-Rater Feedback can be found in the Tools section of this chapter.

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2.4.2.12 Annual Development Plan
During performance planning, it is critical to identify areas for development. To do this, the
manager should review previous appraisals, obtain feedback from reliable sources, make
personal observations, and ask the employee.
The purpose of Development Plan is to increase the employee's learning, growth,
performance, and satisfaction in his/her current job. Professional development ensures that
the employee has the skills, knowledge, and capabilities to perform fully and satisfactorily in
all areas of the current position. If it is determined that a change to the employee's job
responsibilities or a change in position is likely to occur, then the manager must determine
what future capabilities will be needed.
2.4.2.13 Performance Planning Tools
This section contains the following Performance Planning Tools:
• How to Set SMART Objectives
• How to Measure Result
• Multi-Rater Feedback Tool
• Planning Session Agenda – Manager’s Guidelines
• Planning Session Agenda – Employees’ Guidelines
2.4.2.13.1 How to Set SMART Objectives
At the unit/department and individual levels, objectives must be SMART.

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• Specific: The objective must focus on a specific area and be clear and precise.
General statements (focus on reduction) should be replaced with specific targets for
performance (cut operational cost by 10%).
• Measurable: The objective must be measurable to ensure that the employee knows
when s/he has achieved it. Some measuring sticks may be quantitative; others are
qualitative. Both qualitative and quantitative measures can be used to address the
same objective. In fact, multiple measures are often necessary to provide adequate
indicators of successful performance.
• Attainable: Based on the current situation, a challenge, and available resources, is
this objective doable? Does it provide a meaningful level of "stretch" and challenge
for the employee?
• Relevant: Relevance has two components:
Time-bound: An objective must have a beginning and a proposed end. The end can be
adjusted as situations within the organization changes. Making an objective time-bound
allows the employee to report on the progress that is being made in achieving the goal.
For example, is the employee staying on schedule, getting behind or ahead? In addition,
objectives should be short-term, typically less than a year in duration. Longer time frames -
such as for multi-year projects - should be broken into intermediate milestones (i.e., sub-
objectives) so that progress can be monitored more easily.
SMART objectives defined:
• What is to be accomplished?
• Who is responsible?

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• Who is expected to be involved?
• The standards for performance.
• Any significant constraints, limitations or requirements on the activities.
2.4.2.13.2 Multi-rater Feedback Guidelines
Multi-rater feedback is intended to facilitate the performance management process. It is
intended to aid the Manager in the performance management process and is strongly
recommended for use in obtaining feedback about staff performance from peers, subordinates
and other CARE staff with whom the employee being assessed has had significant interaction
during the performance period. It is designed to provide supervisors with accurate, valid, and
credible feedback from colleagues regarding staff performance.
2.4.3 Performance Monitoring
Once performance plans have been established, the manager's focus should shift to observing,
communicating with, and developing his/her employees. At CARE, continuous feedback and
coaching builds trust and motivates employees to achieve organizational, unit/team, and
individual objectives.
Managers need to view every encounter with employees as a potential opportunity to:
• Learn more about the employee and his or her work through formal and informal
observation of performance.
• Give and receive feedback on performance.
• Develop and improve performance through coaching.

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2.4.3.1 Objectives
Through continuous monitoring, guidance, dialogue, and support, managers and employees
can:
• Clarify roles and responsibilities.
• Measure progress toward agreed-upon objectives.
• Define and handle problems proactively.
• Revise performance plans, objectives, or outcomes, if necessary.
• Discuss required additional activities or support.
2.4.3.2 Observing Performance
Performance discussions are more effective when managers have shown a continual interest
in the employees and their work. There should be no surprises during the quarterly
performance periods.
Depending on the job, performance expectations, and personal style, a variety of methods and
tools can be used when observing or monitoring employee performance. These may include:
• Maintenance of an ongoing narrative log of the employee's performance.
• Recording of critical incidents of particularly good or poor performance as they occur.
• Recording of peer or manager's observations in meetings and day-today interactions.
• Reference of existing information such as absenteeism records, project status reports,
monthly reports, etc.

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2.4.3.3 Feedback
Communication is the most critical component in the performance management process.
Feedback based on firsthand observation is more likely to influence employee performance.
The key to effective feedback knows how to give and receive it properly.
2.4.3.4 Methods for Soliciting Performance Feedback
There are a variety of methods for soliciting useful feedback on an employee's performance
and behavior. Managers and employees may be creative in identifying other sources and
approaches that best fit individual needs.
Some of the more common ones are listed here.
• Customer perceptions of the employee's performance through interviews, surveys,
solicited and unsolicited comments and communications, satisfaction ratings, Multi-Rater
Feedback, and end of project/assignment evaluations of individual contributions.
• Reports and other documents normally generated by the project or assignment.
• Records of deadlines met, or missed with justifications.
• Budget analyses to determine how well projects are remaining within budget.
• Customer evaluations of products and services and how well they met defined needs.
• Critical incident reports of both good and poor performance.
• Peer and manager observations during meetings and day-to-day interactions.
The employee has a responsibility to obtain feedback if s/he believes that s/he is not receiving
adequate feedback about performance or at any time the employee is questioning whether
his/her performance is on track.

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2.4.3.5 Coaching
One of the primary objectives of feedback is to help managers and employees determine how
to develop new skills and improve future performance. Effective coaching benefits both
managers and employees by:
• Strengthening communication.
• Increasing productivity by helping the employee attain performance objectives.
• Increasing employee motivation and commitment.
• Maintaining and increasing employee self-esteem.
• Allowing managers to delegate more effectively.
• Minimizing or eliminating surprises in performance reviews.
• Improving the quality of life in the workplace.
2.4.3.6 Coaching for Specific Performance Situations
Coaching should focus on the needs of the individual employee. The key to focusing on
individual needs is identifying the employee's level of performance. Employee performance
will generally fall into one of three areas, and the coaching session should be done
accordingly:
• Generally performing well in most aspects of the job. Coach for continued
performance.
• A noticeable decline or deficiency in one or more performance area(s). Coach for
improved performance.
• Peak performance in most areas of the job. Coach to motivate the high performer.

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2.4.3.7 Coaching for Continued Performance
Most employees will fall into this category, where performance is on-track. Coaching here
focuses on aspects of the employee's performance that are a stretch for the employee and
need development. However, managers should also comment on what the employee is
performing well to increase the employee's confidence to perform without direct supervision.
Guidelines for Coaching for Continued Performance
• Agree on performance area(s) to be discussed. Focus only on one or two areas.
• Review progress made so far and provide a balance of feedback about performance,
praising the employee for work successfully completed—be specific—and indicating
clearly, with examples, where development is needed.
• Provide specific direction in areas where the employee may be having difficulty.
• Determine any support or resources needed.
• Identify any necessary changes to development plans.
• Agree on monitoring process.
2.4.3.8 Coaching for Improved Performance
Occasionally one or more aspects of an employee's performance may decline. If a decline
occurs, it is imperative that the issue be addressed immediately to prevent further poor
performance. Allowing poor performance to continue can communicate a message to both the
employee and the rest of the unit that current inadequate performance is not only acceptable
but also condoned by management.

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Guidelines for Coaching for Improved Performance
• Describe the specific performance issue that is to be addressed. Discuss how the
performance has missed the mark or standards for performance and why it is
important in terms of impact on the unit or organization.
• Get agreement on the performance issue. It is crucial for both the employee and the
manager to agree that there is a performance issue before problem solving can occur.
Listen to the employee.
• Explore causes. The employee is in the best position to identify the reasons for the
performance decline, but the manager must come prepared with specifics on the
employee's performance. This step is not to be viewed as a way to generate excuses
but rather as a time to get at the root of the performance problem so that a meaningful
solution can be developed.
• Generate possible solutions to eliminate the performance issue, based on the identified
causes.
• Identify action steps to be taken by both the manager and the employee. Obtain a
commitment to take action.
• Set up monitoring process to review progress. The frequency should be determined by
the severity of the problem and/or the employee's level of competence in the
performance area.
2.4.3.9 Motivating the High Performer
The high performer is an employee who has maintained a superior level of performance in
most aspects of the job with minimal supervision. This employee would be considered highly
competent.

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Formal coaching sessions would involve preparing the employee for additional responsibility
in his/her current job, or grooming him/her for a lateral or higher position. This preparation
should not be viewed as a guarantee of a change in status but rather a way to help the
employee stay challenged in the current position and become ready should another position
for which s/he is qualified become available. Some ideas to provide challenges to keep high
performers motivated are:
• Involve employee in cross-functional task forces or teams to give him/her exposure to
other functions, an opportunity to build relationships and networks, and work on
complex issues.
• Have employee represent CARE at a conference or symposium.
• Assign the employee "trouble-shooting" duties in which s/he gains experience in
managing change, analyzing business problems, and tackling tough assignments.
• Give them a temporary lateral assignment that allows him/her to see the organization
from an alternative perspective.
• Assign the employee projects that require him/her to interface with higher levels of
managers.
• Have the employee represent the manager or department at a meeting and conduct a
formal presentation on findings or results.
• Assign the high performer to mentor a new employee or inexperienced employee,
which will require the employee to learn how to coach, to provide direction, and to
support people.
• Assign the employee formal training responsibilities for others.

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2.4.3.10 Employee Responsibilities
Monitoring and tracking performance is not just the manager's responsibility; it is also the
employee’s. Monitoring performance must be a shared responsibility between the manager
and the employee. The list below outlines how the employee can take an active role in
monitoring performance and achieving performance goals.
• Set goals and establish a monitoring system. Review the activities set forth in the
APAA to determine priorities. Set goals concerning accomplishments and
development needs. Decide how to track personal performance.
• Reflect on and assess performance on a regular basis (weekly, monthly). Contemplate
accomplishments toward desired goals. Determine what is working and what needs to
be changed.
• Maintain personal accountability and self-discipline. If performance is not on track,
look for causes within personal control and outside influences. Do not assess blame.
Take actions to correct.
• Keep a learning log. Record goals and describe actions taken towards goals. It is a
good tool to use to reflect on and measure progress.
• Be receptive to feedback and suggestions. The key is to be open, not defensive.
• Demonstrate a willingness to receive coaching and to change behavior.
• Find and establish a relationship with a partner—other than your manager—for
performance. Choose people who will provide honest and helpful feedback about
performance.
• Seek help if there is a problem. Don't wait or be ashamed to ask for help.

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2.4.3.11 Effective Communication
Communication plays a crucial role in feedback and coaching. It is a two-way process that
includes both speaking and listening. Effective communication leads to greater organizational
effectiveness, improved employee morale, and higher productivity. In addition, managers and
employees can avoid many problems if and when they know how to receive information,
understand it, and respond appropriately to what they have heard. Both the manager and the
employee have the responsibility to identify impediments to performance and to open a
discussion about how the manger can help the employee to perform well.
2.4.4 Performance Review
Reviewing performance is an ongoing process. Yet, there are designated times for managers
and employees to assess formally what has been accomplished over a past performance
period and to determine what needs to occur in an upcoming performance period.
At CARE, performance review sessions are held semi annually and at the end of the
performance period year, and may occur at the end of probation period for new employees
(new hires) or current employees who are in new positions (Re-hires, Promotions, Transfers,
and Class Changes e.g., temporary to regular). General guidelines for how to prepare for the
performance review sessions, objectives for the sessions, and suggestions for how to conduct
them are found in the following sections. An annual calendar that lists the primary activities
for conducting each of the reviews may be found under Performance management Process –
Calendar of Activities in the Tools section of this chapter. A separate calendar is provided for
the manager and the employee.

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2.4.4.1 Objectives
Performance review sessions should be viewed as learning experiences for both the manager
and the employee. The intent of these sessions should be to provide opportunities to:
• Discuss specific organizational, unit, team, and individual objectives.
• Determine whether employees are meeting performance expectations.
• Guide employees in meeting performance objectives and expectations.
• Identify development needs.
• Recognize achievement.
• Handle discipline issues.
2.4.4.2 Assessing Performance
The primary goal in assessing performance is to determine if the employee has accomplished
the performance objectives for the performance period. The process of assessing performance
is accomplished in three phases:
• Review performance related information
• Synthesize information
• Prepare the quarterly review
This section will be helpful in assessing performance for the interim quarterly reviews and
the Annual Performance Appraisal. The process outlined below is intended primarily to assist
managers in accurately and fairly assessing employee performance; however, the employee
may also find this section useful for self-appraisal and for developing a clear understanding
of how performance is evaluated.

44
2.4.4.3 Review Performance Related Information
The first step in the process is to gather feedback information that has been collected about
performance throughout the year. Sources for that information may include:
• Multi –Rater Feedback
• Customer surveys
• Informal interviews
• Employee's self-appraisal
• Manager's observations/documentation
It is also good practice to look again at the employee's, previous performance reviews, and
job description. These documents will help focus attention on relevant performance issues.
This feedback information will help to identify the employee's accomplishments and the
behaviors that s/he has demonstrated during the performance period. The data compiled will
be both quantitative (numeric) and qualitative (descriptive/anecdotal). Information generally
falls into one of three categories:
• Objective: This information is countable, factual and results oriented. For example,
"this employee's average response time is 24 hours."
• Critical Incidents: These represent significant situations in which the employee acted
in ways that were especially effective or ineffective in performing parts of his/her job.
• Behavioral Observations: These are the manager's observations, which should be
documented, of the employee performing his/her duties. These may also include the
observations by others.

45
2.4.4.4 Guidelines for Documenting Performance
Documenting performance refers to how a manager records and keeps track of the specifics
of performance. This documentation may be used to identify employee strengths or potential
problems, or as inputs to disciplinary actions and related grievances or potential legal
complaints. It is important to have an ongoing fact-based record of employee performance.
The following guidelines should be followed:
• Record only job-related performance or behavior, not the individual.
• Record both positive and negative performance.
• Record facts about performance soon after they occur.
2.4.4.5 Prepare the Review
Develop the most accurate narrative description to summarize the performance for APAA
objective and overall job responsibilities. The description should include:
• A statement to summarize how the employee did within the area.
• A specific example supporting the assessment from the data collected.
• A statement directed toward the future. Set a higher goal for the next quarter,
encourage the employee to continue performing at the already fully acceptable level,
or set a target for needed performance improvement.
Ensure that information is brief, objective, factual, and accurate and bias free. Remember that
performance ratings are included only on the Annual Performance Assessment. However
each quarter the objectives of the APAA will be rated either on track or Off truck to indicate
improvement needed in the next quarter. If a high or low rating has been chosen, provide an
appropriate amount of information to support the rating.

46
To determine a final rating that is an accurate and fair representation of the employee's
overall performance, consider:
• The individual ratings for each APAA objective and the primary job responsibilities.
Do these ratings support the final rating?
• The consistency of the core message. Are the core message and the final rating
congruent?
2.4.4.6 Annual Performance Assessment
The Annual Performance Assessment is designed to assess the performance of all employees
over a performance year. It should:
• Analyze employee achievement in relation to the job description and organizational,
unit, team, and individual performance objectives.
• Develop a mutual understanding of future expectations and objectives.
• Identify future support that the employee requires from the manager.
• Identify future development needs and specify development opportunities.
The Annual Performance Assessment generally consists of the following major items:
• APAA Objectives: Evaluation of performance based on the objectives stated in the
employee's APAA.
• Job Summary: Summary and highlights of the employee's performance of primary
responsibilities as indicated in the position description.
• Appraiser's Overall Comments: Summary of the employee's performance as assessed
by the manager with input from other relevant internal and external sources, and
taking into account CARE’s core values and organizational competencies.

47
• Personal and Professional Development Plan: Identified competencies and targeted
activities for employee development for the upcoming performance period.
• Employee's Comments: Employee's assessment of the appraisal and the manager's
implementation of the Performance Management process.
2.4.4.7 Preparation for the Annual Performance Appraisal Session
Both the manager and employee have a responsibility to prepare for the Annual Performance
Assessment session. Manager and Employee guidelines for preparation and a General
Suggested Format for Review Sessions are in the Tools section of this chapter.
2.4.4.8 Performance Rating Definitions and Clarifications
At CARE, there are 5 levels of performance classification, namely:
Significantly Exceed Requirements (SER) - The employee consistently demonstrates
superior performance. Initiative and outputs are over and above the stated requirements. The
employee is an extraordinarily competent and knowledgeable individual who consistently
exceeds requirements. This rating should be reserved for truly outstanding performance.
Performance at this level occurs throughout the year and across all key aspects of the job.
Performance at this level is so distinguished that other individuals at CARE actively seek this
person out for counsel and assistance. This person is widely recognized as a role model. The
SER rating is exceptional and is unlikely to apply to more than 10 percent of CARE staff.
Exceeds Requirements (ER) – The employee demonstrates strong, consistent performance
particularly in critical competencies, skills and responsibilities. Results add value beyond the
scope of the current role, often benefiting the division/department. Performance at this level

48
is demonstrated by an employee who consistently meets and frequently exceeds one or more
critical job requirements.
A staff member who performs at this level shows initiative and versatility, works
collaboratively, and has strong technical & interpersonal skills. The ER rating is unlikely to
apply to more than 15 percent of CARE staff members.
Fully Meets All Requirements (FMR) - The employee consistently demonstrates good,
solid performance. Initiative and outputs are dependable and of high quality as per the stated
requirements. The employee is a competent, knowledgeable individual who consistently
meets and occasionally exceeds the core requirements of the position.
FMR represents successful performance.
Meets Most Requirements (MMR) - The employee demonstrates adequate performance in
most areas, but needs improvements in one or more significant aspects critical to the position.
Initiative and outputs are generally adequate, as per stated requirements. The employee is
generally competent and knowledgeable in most aspects of his/her work, but needs marked
improvement in critical areas of the job.
An overall MMR rating means that while performance is adequate in most areas of the job,
the employee's accomplishments in at least one critical area fall significantly short of
expectations. Such performance shortfalls may be attributable to newness on the job or
missing or undeveloped skills and experience. The message conveyed by the MMR is that
performance does not meet expectations in that area and must be improved.

49
Below Requirements (BR) - The employee consistently performs below the level expected
of this position in all key aspects of the job. Initiative, outputs and quality of work are below
the stated requirements and clearly unacceptable. The employee lacks competence and
knowledge of critical aspects of his/her position, and consistently fails to meet the
requirements of the job.
Performance at the BR level is unacceptable. Unless there is an obvious and immediate
improvement, earning a BR rating should cause CARE and the CARE staff member to
consider seriously whether continued employment at CARE is appropriate.
The completion of the investigation will dictate the adoption of one of the following three
measures:
• Dismissal for failure to perform his/her tasks by invoking justified cause of expulsion;
• Preparation of a work plan for the recovery of the employee with greater monitoring
by direct Supervisor / Manager;
• Submission of an employee to a specific training for greater capacity building that
will help in the performance of his/her duties if it is proved that the problem is lack of
knowledge and in this organization has the responsibility
2.4.4.9 Performance Improvement
The Performance Improvement process is specifically designed to address when the
employee’s performance in one or more significant aspects critical to the position has or have
been assessed as needing improvement. This can occur at any time of the year, not just during
formal performance appraisals or review periods.

50
The purpose of the Performance Improvement process is to give an under-performing
employee the opportunity to understand and meet the manager's expectations. The first step
of the Performance Improvement process requires a manager to:
• Discuss the areas in which the employee is not meeting the manager's performance
expectations.
• Document the following after the meeting for placement in a separate file:
• Date of the discussion
• Areas of needed improvement
• Employee's reactions and comments
• Manager's suggestions for improvement
The second step of the process requires a manager to:
• Re-evaluate the employee's performance within a reasonable amount of time after the initial
discussion. If performance has improved to the desired level, the manager should document
the results in the separate file.
• Discuss the situation either with the employee again, or the HR if performance has not
improved, or improved only partially.
• Develop a Performance Improvement Plan, if appropriate, in consultation with Human
Resources.

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2.5 HRMIS in Organization
The Human Resource Management Information Systems is introduced by presenting the
various definitions, development, costs and benefits, as well as their functions and
relationship with HRM. Furthermore, different automation providers and their solutions are
presented. The chapter then ends with a summary.
HRMIS shape integration between Human Resource Management (HRM) and Information
Technology. Even though these systems may rely on centralized hardware resources
operationally, a small group of IS specialists residing within the personnel department
increasingly manage, support, and maintain them. HRIS support planning, administration,
decision-making, and control. The system supports applications such as employee selection
and placement, payroll, pension and benefits management, intake and training projections,
career-pathing, equity monitoring, and productivity evaluation. These information systems
increase administrative efficiency and produce reports capable of improving decision-making
(Gerardine DeSanctis, 1986: 15).
2.6 Conclusion
Here definition of HRM, HRM process, Performance Management System, HRMIS in
organization and HRIS functions described elaborately and try to clarify its work. It is also
cleared the relation with IT. Hope it will help us to understand the total automation specially
performance management system.

52
Chapter 3
General Findings
3.1 Introduction
Business organizations exist in a competitive environment with scarce resources. Controlling
this resource (physical, organizational, information and human) that gives the company
competitive advantage. The goal of strategic management in an organization is to deploy and
allocate resources in order to provide the management with a competitive advantage. It goes
without saying that two out of three classes of resources (organizational and human)
correlated with the human resource functions. Towards maximum effect, the HRM functions
must be integrally involved in the company’s strategic management process.
Strategic management process first analyzes a company’s competitive situation, develops its
strategic goals and mission, its external opportunities and threats, and its internal strength and
weaknesses to generate alternatives. In his second phase, strategic management process
determines a plan of actions and deployment of resources to achieve the pre-specified goals.
This kind of strategic approach should be emphasized in human resources management.
Strategic Human Resources Management (SHRM) is the pattern of planned human resources
deployments and activities intended to enable an organization to achieve its goals. Then we
are addressing the question of the instruments that will make the odds of the competition in
our favor.
3.2 Basic Concepts
The results approach emphasizes the outcomes and results produced by the employees. It
does not consider the traits that employees may process or how employees do the job. This is

53
basically a bottom-line approach that is not concerned about employee’s behaviors and
processes but, instead, focuses on what is produced. Defining and measuring results usually
takes less time than defining and measuring behaviors needed to achieve these results. Also,
the results approach is usually seen as more cost-effective because results can be less
expensive to track than behaviors. Overall, data resulting from a results approach seem to be
objective and are intuitively very appealing.
The results approach is most appropriate under the following circumstances:
• Workers are skilled in the needed behaviors: An emphasis on results is appropriate
when workers have the necessary knowledge and skills to do the work. In such
situations, workers know what specific behaviors are needed to achieve the desired
results and they are also sufficiently skilled to know what to do to correct any
process-related problems when the desired results are not obtained.
• Behaviors and results are obviously related: In some situations, certain results can be
obtained only if a worker engages in certain specific behaviors. This is the case of
jobs involving repetitive tasks such as assembly-line work or newspaper delivery.
• Results show consistent improvement over time: When results improve consistently
over time, it is an indication that workers are aware of the behaviors needed to
complete the job successfully. In these situations, it is appropriate to adopt a results
approach to assessing performance.
• There are many ways to do the job right: When there are different ways in which one
can do the tasks required for a job, a results approach is appropriate. An emphasis on
results can be beneficial because it could encourage employees to achieve the desired
outcomes in creative and innovative ways.

54
3.3 HR (specially Performance Management) and Information Systems
3.3.1 Impact of information systems on HR strategic management
• Automating the paper work to save time and effort and to avoid the use of additional
staff.
• Storing data about applicants facilitates searching and selecting tasks.
• Administrating of risk management by monitoring licenses, safety training, physical
exams and report deviation.
• Managing the training activities to specify the organization training needs.
• Upgrading expertise and skills to provide training development.
• Planning and simulating the financial impact and recommending strategy changes.
• Analyzing performance causes.
• Elaborating iterative planning processes by identifying a logical path and monitoring
its steps.
• Administrating flexible-benefits that save time and money.
• Supporting the performance management using IS capabilities in making projection.
• Providing all regular calculations and statistical reports that assist managers.
• Supporting the strategic, tactical, and operational use of the HR of an organization.
This support makes the goals of the HR management a dream come true in a simple effective
and efficient manner.
3.3.2 Benefits of HRMIS
Larger companies are integrating their separate HR systems (HRMIS). An HRMIS may be
defined as interrelated components working together to collect, process, store, and
disseminate information to support decision making, coordination, control, analysis, and

55
visualization of an organization’s human resources management activities. There are many
reasons for applying such a system:
1. Competitiveness, HRMIS can significantly improve the efficiency of the HR
operation and therefore a company’s bottom line, even for mid-size firms.
2. Improve transaction processing. HRMIS packages provide computerized processing
of a wider range of the firm’s HR transactions than would be possible if individual
systems for each HR task had to be used.
3. On-line processing making the company’s employee literally part of the HRMIS.
4. Improved reporting capability. The HRMIS can bump the firm up to a new plateau in
terms of the number and variety of HR-related reports it can produce.
5. HR system integration. Because its software components are integrated, a true
HRMIS enables an employer to reengineer its entire HR function by having the IS
take over and integrate many of the tasks formally carried out by HR employees.
3.4 Scope Define
This introductory section provides information on the organization issuing the HRMIS
(Performance Management), the purpose of the HRMIS and the project background.
The following questions are intended to define the scope of the information in the system,
specifically the nature of the information and the sources from which it is obtained.
What information is to be collected?
The following identifiable information is collected:
• Name
• Designation

56
• Grade
• Project
• Office
• Increment
• Training
• Competency
• Performance rating
From whom is the information collected?
The information is collected from persons currently employed with the. The information is
collected electronically/manually as part of the appraisal process.
3.5 Information Requirement
There are two major important requirements that are required before a performance
management system is implemented: (i) knowledge of the organization’s mission and
strategic goals and (ii) knowledge of the job in question. Knowledge of the organization’s
mission and strategic goals is a result of strategic planning, thus, there is a constant interplay
between mission and vision and strategic planning).
The second important requirement is implemented is to understand the job in question. This
is done through job analysis. Job analysis is a process of determining the key components of
a particular job, including activities, tasks, services and process. A job analysis is a
fundamental requirement of any performance management system.

57
3.5.1 Job Description
Effective performance management starts with a clear and accurate job description. We
would like to believe that no one would intentionally hire someone who isn’t the right fit for
a job. Job description contents knowledge, skills and abilities etc. are the part of organization
mission, vision and core values. A standard job description has attached in Annexure-I.
3.5.2 Annual Training Plan
Annual training plans actually an agreement between supervisor and supervisee purpose of
further development of an employee. At a minimum this plan should include identifying areas
that need improvement and setting goals to be achieved in each area. Development plans
usually include both results and behaviors. A standard annual training plan format has
attached in Annexure-II.
3.5.3 Peer Feedback
Peer feedback is an important evaluation for an employee in a performance appraisal. This
form includes with employee strength and weakness. Given weakness of peer evaluations, it
would not be wise to use them as the sole source of performance information. Peer
evaluations can be part of the system, but information should also be obtained from other
sources, including the supervisor. A standard annual training plan format has attached in
Annexure-III.
3.5.4 Client Feedback
Client and other key stakeholders in general provide yet another source of performance
information. Collecting information from customers can be a costly and time-consuming
process; however, performance information provided by client is particularly useful for jobs

58
that require a high degree of interaction with the client or with particular job-related
individuals.
3.5.5 Self Assessment
Self assessments are an important component of any performance management system. When
employees are given the opportunity to participate I the performance management process,
their acceptance of the resulting decision is likely to increase and their defensiveness during
the appraisal interview is likely to decrease. An additional advantage associated with self
assessment is that the employee is in a good position to keep track of the performance of
several employees. On the other hand, self assessment should not be used as the sole source
of information in making administrative decisions because they are more lenient and biased
than are ratings provided by other sources, such as a direct supervisor. A standard
performance management format has attached in Annexure-IV.
3.5.6 Supervisors
An advantage of using supervisors as a source of performance information is that they are
usually in the best position to evaluate performance in relation to strategic organizational
goals. Also supervisors are often those making decisions about rewards associated with
performance evaluation. In addition supervisors are able to differentiate among various
performance dimensions regardless of the level of experience of the employee being rated. In
short, supervisors are often the most important source of performance information because
they are knowledgeable about strategic issues, understand performance and are usually in
charge of managing employee performance. Although supervisors are usually the most
important and sometimes only source of performance information, other sources should be

59
considered as well. A standard performance monitoring questionnaire has attached in
Annexure-V.
3.6 Data Elements
Conceptual Design Of HR Statistical Data Model
The nature of data elements needed to perform the above calculations is detailed and
aggregate data. Those data will be gathered and stored in the application data in the
organization. We considered the following issues for our data elements;
 Document Current Application Flows and Functionality
 Document Current Technical Architecture
 Conduct Needs Analysis/Business Requirements Definition
 Gap Analysis: Gaps between what we currently do versus what we want to do
 Revisit feasibility based on what is known about existing and desired system and
potential solutions
3.7 Entity Relationship Diagram (ERD)
Figure-2 (ERD)

60
3.8 Database Design
Annexure-VI
3.9 CONCLUSION
HR managers become able to reengineer the way HR department executes its job,
accomplishes those transactional HR jobs cost-competitively, and increasingly turn its
attention to truly being a strategic partner with the firm’s top executives. A HR function can
and should be strategically integrated with a company’s business plan to help the company to
achieve its business objectives. Firms are increasingly moving beyond manual HR systems
today, by computerizing individual HR tasks, installing HR Information Systems, and using
the Internet and Intranet technology. In this context, information technology can support HR
managers not only in achieving the traditional HR functions but also in applying the concepts
of strategic planning.

61
Chapter 4
Major Findings
4.1 Introduction
Performance management is a process by which managers and employees work together to
plan, monitor and review an employee’s work objectives and overall contribution to the
organization. More than just an annual performance review, performance management is the
continuous process of setting objectives, assessing progress and providing on-going coaching
and feedback to ensure that employees are meeting their objectives and career goals.
4.2 Critical Analysis
• Appraisal forms are the key instruments used to measure performance. Care and
attention are required to ensure that the forms include all the necessary components.
Used form include a combination of the following:
o Basic employee information.
o Accountabilities, objectives, and standards.
o Competencies and indicators.
o Major achievements and contributions.
o Development achievements.
o Developmental needs, plans, and goals.
o Client input.
o Employee comments and
o Signatures.
• Regardless of the specific components included in the appraisal form, there are
several characteristics that make appraisal forms particularly effective. These are;

62
o Simplicity.
o Relevancy.
o Descriptiveness.
o Adaptability.
o Comprehensiveness.
o Definitional clarity.
o Communications and
o Time orientation.
• For administrative purposes, it is usually desirable to compute and employee’s overall
performance score. Two approaches are available: judgmental and mechanical.
• Evaluation period maintained quarterly. This provides fairly frequent opportunities for
a formal discussion about performance issues between subordinate and the supervisor.
• Performance management system include up to six separate formal meetings between
the supervisor and the subordinate:
o System inauguration.
o Self assessment.
o Classical performance review.
o Merit/Salary review.
o Development plan and
o Objective setting.
• Several sources have used to obtain performance information: supervisors, peers,
subordinates, self and client.
• In providing performance information, raters may make intentional errors. These
errors may involve inflating or deflating performance scores. This happens because
observing information about performance, storing this information in memory, and

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