Part 1 KRA Setting

What are KRAs “Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the department’s role is responsible. Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual, the core area which each person is accountable for.

Process of KRA Setting- Step 1 Identification of key tasks and activities by both employee and the manager

Process of KRA Setting- Step 2 Clearly define exactly what the Associate is supposed to achieve. What is his / her role in the organization?

Process of KRA Setting- Step 3 Defining the KRAs

SMART KRAs Specific A SMART KRA is defined as one that is specific, measurable, achievable, result-oriented and time-bound. Measurable Achievable Result-oriented Time-bound

Specific is the What, Why, and How of the S.M.A.R.T. model. KRAs should be simplistically written and clearly define what you are going to do. Specific is the What, Why, and How of the S.M.A.R.T. model.

EXPLANATION of SPECIFIC EXAMPLE of SPECIFIC By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers. EXPLANATION of SPECIFIC “Implement a new performance management system for Department A, Department B and Department C”= what “using clearly defined processes and guidelines” = how “so employees and managers can competently evaluate performance and develop their careers” = why

Measurable KRAs should be measurable so that you have tangible evidence that you have accomplished it. Usually, the entire statement is a measure for the project, but there are usually several short-term or smaller measurements built into the KRA.

EXPLANATION of MEASURABLE EXAMPLE of MEASURABLE By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers. EXPLANATION of MEASURABLE In this KRA, the essential metric of measurement is whether or not the system is operational by August 1st, 2014

and abilities needed to achieve the goal. Achievable Goals should be achievable; they should stretch you slightly so you feel challenged, but defined well enough so that you can achieve them. You must possess the appropriate knowledge, skills, and abilities needed to achieve the goal.

EXPLANATION of ACHIEVABLE EXAMPLE of ACHIEVABLE By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers. EXPLANATION of ACHIEVABLE In order for you to reach this goal, you must have a skill set, in this case in the area of performance management, that allows you to understand the nature of the goal, and the goal must present a large enough challenge for you to remain interested in and committed to accomplishing it.

Goals should measure outcomes, not activities. Result-Oriented Goals should measure outcomes, not activities.

EXAMPLE of RESULT-ORIENTED By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers. EXPLANATION of RESULT-ORIENTED The result of this goal is a process that allows employees and managers to more competently evaluate performance and develop their careers, not the individual activities and actions that occur in order to make the goal a reality.

Time-Bound Goals should be linked to a timeframe that creates a practical sense of urgency, or results in tension between the current reality and the vision of the goal. Without such tension, the goal is unlikely to produce a relevant outcome.

EXPLANATION of TIME-BOUND EXAMPLE of TIME-BOUND By August 1, 2014, implement a new performance management system for Department A, Department B and Department C using clearly defined processes and guidelines so employees and managers can more competently evaluate performance and develop their careers. EXPLANATION of TIME-BOUND August 1, 2014 provides you with a time-bound deadline!

What is our Rating Scale? 5 = Outstanding – Exemplary performance with respect to KRA, in terms of the quantum of achievement, meeting of timelines and adherence to quality standards. 4 = Exceeded expectations – Surpassed expectations with respect to the achievement of goals, meeting of timelines and adherence to quality standards 3 = Met expectations – Good performance. Achieved the goals set for the KRA within reasonable limits and adhered to quality standards 2 = Below expectations – Performance marginally failed to meet expectations in terms of quantum of achievement, adherence to timelines or maintenance of quality standards 1 = Unsatisfactory – Performance significantly below expectations in terms of quantum of achievement, adherence to timelines or maintenance of quality standards.

What Are Weighting Factors? Weighting factors are estimated values indicating the relative importance or impact of each item in a group as compared to the other items in the group.

They help us establish work priorities. Weightings in KRAs The purpose of assigning weightings for KRAs is simple: They help us establish work priorities. In the performance appraisal, they are part of the calculation used to determine an accurate overall performance rating.

What is weighting based on? It may be tempting to assign a priority weighting based on the amount of time spent on a particular KRA and in some cases this may be appropriate. However, other parameters should be considered. For example: Is this KRA a critical process? How important is this KRA to the position, the department, the organization? What is the impact and scope of the expected outcomes? Who is affected and how by this KRA? What are the consequences if this KRA doesn’t happen? How much time is spent on this KRA?

Please note: This is a hypothetical sample calculation How are KRAs weighted? In the Performance Management System of Wockhardt, KRAs are weighted in terms of percentage. Therefore the sum of weightings of all the KRAs should be 100. KRAs are weighted in order to account for the difference in importance levels of the different KRAs. Following is a simple example of how KRAs are weighted: Key Result Areas Weightage KRA 1 20% KRA 2 25% KRA 3 40% KRA 4 15% TOTAL 100% Please note: This is a hypothetical sample calculation

Obtaining the Weighted Rating Thereafter, each KRA is reviewed and rated, based on the Associate’s performance and the organization’s rating scale. The rating scale in Wockhardt’s Performance Management System is from 1 to 5. Weighted Rating is obtained by multiplying the rating and the weightage. Key Result Areas Weightage Rating Weighted Rating KRA 1 20% 4 80 KRA 2 25% 3 75 KRA 3 40% 5 200 KRA 4 15% 2 30

Arriving at the Performance Score The sum of the Weighted Rating is then divided by 100 (since the total of the weightings is 100) in order to get the AVERAGE score. This is the final Performance Score of the Associate. This score will always be between 1 and 5 due to the rating scale in Wockhardt’s Performance Management System. Key Result Areas Weightage Rating Weighted Rating KRA 1 20% 4 80 KRA 2 25% 3 75 KRA 3 40% 5 200 KRA 4 15% 2 30 Performance Score (∑ Weighted Rating / 100) 385/100 =3.85

Introduction to WINGS Part 2 WINGS Wockhardt’s Initiative for Nurturing Growth and Synergy is Wockhardt’s Performance Management instrument which helps you set objectives in a systematic and focused way to enable you ‘fly higher’ to reach your aspirational goals. WINGS facilitate goal/objective setting and provide opportunity for continuous interaction with and feedback from superiors, and assessment of performance. It also enables development of your competencies. WINGS is the key to MARS/WEVA and annual increment. MARS MARS-Management Appraisal and Review System is applicable to all Associates in MT to M3 / RST to R6 / FM3 to FM5 grades and is disbursed bi-annually. The Performance review period for Associates covered by MARS will be April to September and October to March. WEVA WEVA-Wockhardt Economic Value Addition is applicable to all Associates in M4 / R7 and above grades. The Performance review period for WEVA will be April to March and payouts are disbursed annually.

Key Milestones Activities Responsibility End Date Self-Assessment All associates 6th April 2015 FLM & SLM (First & Second Line Manager) Assessment All FLMs & SLMs 20th April 2015 Final Rating Submission to HR (post adherence to bell curve) All Functional/Business/Site Heads 30th April 2015 Increments/MARS/WEVA etc HR 10th  May 2015

Performance Review Guidelines for Appraisee Part 3 Performance Review Guidelines for Appraisee

Prepare a list of your accomplishments Guideline # 1 Prepare a list of your accomplishments Make sure you capture the "how" not just "what" you accomplished. Identify any challenges that limited your abilities to succeed, as well as any support you received from others. Don't get caught in the trap of focusing only on the last few months of performance. Look at performance over the whole review period. Think about your audience. What does your manager need to know? What do they already know?

Guideline # 2 Do a self-evaluation Think about the following: What knowledge, skills and attitude do you need to be successful? How do you feel you rate against these requirements? Quantify your achievements if possible and consider how they have contributed to the organization's success. What has helped and what has hindered you? What can you do better during the next period?

Prepare a list of areas for development Guideline # 3 Prepare a list of areas for development Identify any areas where you felt you struggled, or where others may have noted your performance lacked, and make note of these. You should also identify any areas where you would like to expand your skills/experience/expertise. This will enable you to  ask for coaching, mentoring, training, or whatever support you need to develop, improve or be more successful.

Draft goals for the coming period Guideline # 4 Draft goals for the coming period Don’t wait for your manager to hand down your goals to you. Take a proactive approach and draft some possible goals based on your job description, your department or the organization's higher level goals, your skills/experience/abilities, etc. You can review and refine these in your meeting with your manager.

Guideline # 5 Keep an open mind! Often we come to our performance appraisal meeting with our manager feeling a bit defensive. When we're defensive, we don't listen very well. Prepare yourself for your performance appraisal meeting with your manager by trying to relax and let go of any defensiveness you're aware of. Your goal should be to listen deeply to the feedback your manager provides you, as well as the goals and development plans they lay out for you.

User Manual for PMS in Wockhardt You are required to carefully go through the attached User Manual for Performance Management System in Wockhardt. The same is also available on WIRE

Key Milestones Activities Responsibility End Date Self-Assessment All associates 6th April 2015 FLM & SLM (First & Second Line Manager) Assessment All FLMs & SLMs 20th April 2015 Final Rating Submission to HR (post adherence to bell curve) All Functional/Business/Site Heads 30th April 2015 Increments/MARS/WEVA etc HR 10th  May 2015

Role Play