PM Playbook

PERFORMANCE
MANAGEMENT

Playbook

Group Human Capital Division
FGV Holdings Berhad

CONTENT 3
6
 What, Why and Who 8
 The Framework 10
 Evaluation 12
 Performance Cycle 21
26
 Performance Planning 28
 Quarter Review 31
 Mid-Year Review 39
 Year-End Assessment 40
 Calibration
 Rewards & Consequences
 Related Documents

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PERFORMANCE MANAGEMENT:

WHAT, WHY AND WHO ?

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What is Performance Management?

An ongoing, continuous process of communicating and clarifying job responsi-
bilities, priorities and performance expectations in order to ensure mutual un-
derstanding between manager and employee in support of accomplishing the
strategic objectives of the organization.

Why do we need it?

4

Applicable to whom?

The performance assessment is compulsory to all employees.

Employee Status Conditions and Eligibility

All employees except those Based on current performance year
 Who is serving notice
of termination
 Temporary employee

Transfers / secondment Performance assessment and appraisal will be
during the current perfor- based on employee’s service tenure as follows:
mance year (including to
JV companies)  Appraiser who supervises an employee for
more than nine (9) months shall be the sole ap-
Matrix reporting praiser of the said employee for that year
Under Probation
Long leave of absence  Less than nine (9) months

 Both current and previous Appraisers to as-
sess

 Performance score to be prorated accord-
ingly

Bold line Appraiser will be responsible to assess
Appraisee’s performance in consultation with the
dotted line Appraiser

Employees under probation will undergo a proba-
tion assessment process and shall only be as-
sessed under PMS upon confirmation

Employees who are on long leave of absence for
more than nine (9) months in the current perfor-
mance year shall be excluded from the PMS cycle

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PERFORMANCE MANAGEMENT:

THE FRAMEWORK

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The Framework

The Performance Management Framework is designed to help devel-
op HIGH PERFORMANCE CULTURE with the following objectives :
 to raise both individual and organization's performance
 to enhance the capacity and competency of individuals to meet

organizational expectations
 to promote a 2-way communication for clarifying expectations on

roles and accountability
 to encourage empowerment, motivation & effective rewards

mechanism

7

Evaluation

Evaluations are based on two components:
 Key Performance Indicator (KPI) : C.O.D.E. Perspective
 Leadership Competency (LC) : P.R.I.D.E. Elements

Tool for monitoring the strategic busi-
ness objectives/ goals approved by
the FGV's Board based on indicators
previously established and that
should permeate through four per-
spectives:
 Cost (C)
 Operational Excellence (O)
 Development (D)
 Engagement (E)

There are eighteen items of LC which are grouped into five known as PRIDE.

 Partnership (P)  Dynamism (D)
 Respect (R)  Enthusiasm (E)
 Integrity (I),

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Weightage

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PERFORMANCE MANAGEMENT:

THE CYCLE

10

Performance Management Cycle

The cycle of Performance Management starts with Annual Business Plan
Approval and GMC KPI Challenge. After the KPIs being cascaded down,
all employees will have to do Performance Planning. The Quarter 1 Review
will then takes place before the KPI Audit is being carried out. Then, the
Feedback & Coaching Audit will be done right after the Mid-Year Review
ends. Finally, employees will be assessed for the current performance year
during the Year-End Assessment after the Quarter 3 Review. Each Sec-
tor / Division / Company / will then carry out Calibration process before it is
presented at HC Steering Committee. The Rewards / Consequences Man-
agement will be based on the final score.

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Performance Planning

The Performance Planning is the initial stage where Appraiser and
Appraisee review Appraisee’s performance expectations (KPI)
including both the behaviors (Leadership Competency) they are ex-
pected to exhibit and the results they are expected to achieve.

Key Performance Indicator (KPI)

Categorised into two :
1. Non-Executive Group
2. Executive and above Group

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For Non– Executive:
Pre-Determined KPI is used. The elements to be measured are as follows:

13

For Executive and above:
Appraisee and Appraiser plan and set the targets / objectives to
be achieved by the Appraisee which must be:
aligned to the Group/ Sectors/ Divisions/ Companies/ Departments
goals, objectives, initiatives and projects
aligned to the position, roles, accountability and responsibility of the
Appraisee
based on the C.O.D.E perspective
expressed using S.M.A.R.T criteria and standards
measured by correct Unit of Measurement (UOM)

C.O.D.E Perspective

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SMART Element

Note :

From 4 to 10 items only

 Minimum 5% and Maximum 30%
 Must be in accordance to Appraisee’s

position, roles, accountability and re-
sponsibility

15

Example of Target Setting using SMART

(Human Resource Manager)

Example of KPI Setting :

KPI Statement
Target Distribution

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Example of Target Setting using SMART

(Mill Manager)

Example of KPI Setting :

KPI Statement
Target Distribution

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Leadership Competency (LC)

Appraisee and Appraiser come into an agreement on the Leadership Compe-
tency (LC) of which the Appraisee’s need to improve within the current perfor-
mance year. Appraisee to :

identify 1 competency from each PRIDE element
fill in the competency gap of each element chosen
come out with an action plan to close the gap for each of the competency
chosen
Example of PRIDE Setting :

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Filling in the Performance

Where are we supposed to fill in
the Performance Planning?

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For More Info :

User Guide Performance Planning
- Non Executive
User Guide Performance Planning
- Executive and Above

Video on Performance Planning

Infographic on Performance Planning

User Guide Leadership Competency (LC)

Video on 5 Common KPIs Mistakes

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Quarter Review

Appraisee and Appraiser hold a formal performance assessment discus-
sion to review and assess the Appraisee’s achievement for the quarter
of the performance year.
During the discussion, the Appraiser must provide feedback & coaching
to the Appraisee.

What Need to be Done?
Appraisee to :
 Update KPI (CODE) and Leadership Competencee

(PRIDE) via the Extended HR Apps under Perfor-
mance Review
 Fill in Status and Remark for Situation (S), Task (T),
Action (A) and Results (R)

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Feedback and Coaching

Feedback is an on-going process between Appraisee and Appraiser
where information is exchanged concerning the performance expected
and the performance exhibited while coaching is a process where Ap-
praiser facilitates the development and action planning of Appraisee in or-
der to bring positive changes.
During the Feedback and Coaching session between Appraisee and Ap-
praiser, B.E.S.T process is used to help remove the barriers in communi-
cation that enables engagement between the Appraisee and Appraiser.

BEST Process

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When providing feedback, both of the Appraisee and Appraiser must use the
STAR model. This model helps Appraisee and Appraiser to visualize a
pattern in providing good positive feedback that encourage Appraisee to take
initiative and complete her/ his tasks efficiently.

STAR Model

Example of Quarter Review Assessment : KPI (Executive)
Executive Sales : Cost Perspective - To achieve sales RM4 Million
Sample of Appraisee's Feedback and Coaching:
ST/T : Unable to achieve the targeted sales
A : Provide feedback form to sellers and customers

to identify issues. An intervention plan taken to
ensure increase in sales
R : The % of sales increases compared to months
before

Sample of Appraiser's Feedback and Coaching:
ST/T : Appraisee fails to achieve the targeted sales
A : Advice Appraisee to take initiative by distrib-

uting feedback form to sellers and customers
R : Expected to increase sales within two months

period after the intervention plan carried out

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Example of Quarter Review Assessment : KPI (Non-Executive)

Pre-Determined: Absenteeism (Missing at Work Place)

Sample of Appraisee's Feedback and Coaching:
ST/T : Found missing during working hours and

received warning from Appraiser to not repeat
it again
A : Discuss with Appraiser on problems faced and
come into solution to always be at work place
during working hours
R : Understand the consequences if found miss
ing again and permission is required in case of
emergency to leave working place during
working hours

Sample of Appraiser's Feedback and Coaching:
ST/T : Appraisee was found missing during working

hours
A : Remind and warned Appraisee and explain the

consequences he might get if found missing
again
R : Appraisee is at work place during working
hours

WHY IS IT IMPORTANT TO GIVE
CONTINUOUS FEEDBACK IN THE

WORKPLACE?

1. ENCOURAGES GROWTH
2. BUILDS A COACHING CULTURE
3. FACILITATES DATA DRIVEN DECISION MAKING

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Example of Quarter Review Assessment : LC (PRIDE)

Enthusiasm (Resilient)

Sample of Appraisee's Feedback and Coaching:
ST/T : Having difficulties in adapting to the new

policy enforced by the management

A : Consult Appraiser on its implementation and
find ways to make it easier

R : Use of free source apps to increase sales
and adapting well to the new policy

Sample of Appraiser's Feedback and Coaching:
ST/T : Appraisee is struggling to adapt to the new

implemented policy.

A : Explained and described why and how to en
sure the new policy is enforced

R : Appraisee uses free apps and develops online
method to ensure he complies to the new poli
cy and to be able to increase sales and attract
new customers

Partnership (Collaborates)

Sample of Appraisee's Feedback and Coaching:
ST/T : Work in silo

A : Was assigned by Appraiser with a task that
require team works. Conduct series of meet
ings and brainstorm together solutions.

R : Better result due to collaboration with other
departments

Sample of Appraiser's Feedback and Coaching:
ST/T : Appraisee having difficulties to collaborate with

other people from different departments

A : Assigned task to Appraisee that required him
to also include other people from different
departments

R : The output of the task was good because of
involvement from others and Appraisee man
aged to overcome his weaknesses

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Mid-Year Review

Appraisee and Appraiser shall hold a formal performance and competency as-
sessment discussion to review and assess the Appraisee’s achievement on the
first half (1H) of the performance year. During the discussion, the Appraiser
must provide feedback and coaching to the Appraisee.

Mid-Year Review Video User Guide for Non-Executive

User Guide for Executive Mid-Year Review Guideline

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For Executive and Above Group:

Want to make changes to Do not want to make any
KPI changes to KPI

Go to menu Amend Performance Proceed to Mid-Year Review via
Plan via ePerformance ePerformance

Make amendment to the KPI Update progress status on KPI

Get approval from Appraiser Proceed to Performance Review
via Extended HR Apps for Feed-
Proceed to Mid-Year Review via
ePerformance back and Coaching input

Update progress status on KPI

Proceed to Performance Review
via Extended HR Apps for Feed-

back and Coaching input

For Non- Executive Group:

Proceed to Mid-Year Review via ePerformance
& Update progress status on KPI

Proceed to Performance Review via Extended HR Apps for Feedback and
Coaching input

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Year-End Assessment

Year-End Assessment is the final performance appraisal stage where the Ap-
praisee and Appraiser shall hold a formal performance assessment discus-
sion on Appraisee’s KPI and PRIDE (LC) to assess the Appraisee’s overall
performance of the current year. During the discussion, the Appraiser must
provide feedback and coaching to the Appraisee.

What Need to be Done?

 Update overall achievements and justifications for KPI and PRIDE (LC)

based on actual performance of the current performance year via ePer-
formance under Year-End assessment.

 Proceed to Performance Review via Extended HR Apps for Feedback

and Coaching input

“All growth depends upon activity. There is no development phys-
ically or intellectually without effort, and effort means work.”
Calvin Coolidge

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Appraiser / Reviewer Evaluation

Common Rating Errors
Rating errors are factors that mislead or blind managers in the appraisal
process

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For more info :

Charles Darwin

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PERFORMANCE MANAGEMENT:

CALIBRATION

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Calibration

Why calibration process is needed?

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Calibration Committee

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How it was done?

Step 1 : Identification of Employees
According to :
 Position
 Movement
 Status of employment

No Position Grade
1 Group Management Committee (GMC) GMC
2 Senior Vice President (SVP)
3 Vice President (VP) 2
4 Senior General Manager (SGM) 3
5 General Manager (GM) 4
6 Senior Manager (SM) 5
7 Manager (M) 6
8 Senior Executive (SE) 7
9 Executive (E) 8
10 Assistant Executive (AE) 9
11 Non-Executive 10
12 Non-Scale G1-G7
NS

Step 2 : Identification of Rating & Range of Scores

Rating Range of Score

5 4.80 - 5.00
4 4.00 – 4.79
3 3.00 – 3.99
2 2.00 – 2.99
1 1.00 – 1.99

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Step 3 : Check the Bell Curve
Compare and balance the percentage of before calibration based
on the percentage of bell-curve distribution which has been given by
the Management

Employees’ overall score

Reference Bell-Curve Distribution
Step 4 : Scores Adjustment
According to employees’ level of :
 Responsibility
 Accountability
 Effort
 Contribution

35

Step 5
Provide complete and clear justification for employee’s score adjust-
ment in case it was added or deducted.

36

Step 6

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Communication

Employees’ final scores after being approved at the FGV Board level should be
communicated to them through respective Direct Manager or KPIs Evalua-
tor.

Click here for video on
Calibration

Click here for
infographic

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PERFORMANCE MANAGEMENT:

REWARD AND CONSEQUENCES

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Reward & Consequences

The final score may be used by the HR departments for relevant
GHC purposes (Talent Management & Succession Plan and Com-
pensation & Reward etc. )

Reward

Bonus, increment and others

Performance Improvement Program
(PIP)

Low performer will be considered to
be placed under the PIP programs

Talent Management

Succession plan, talent pool

40

Related Documents
Policy

Performance Management

Standard Operation Procedure (SOP)

Performance Management Performance Improvement Plan

Compensation Grievances Management

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MODULE 3:
APPLICATION OF

COACHING &
PERSONALITY PROFILING

Ability is what you're capable of
doing. Motivation determines
what you do. Attitude determines

how well you do it.

____________________
Lou Holtz

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