Performance Management:

Performance Management Purpose:

Performance Management is a continuous (daily) process of monitoring planned performance and appraisal in an organization, with a main objective to help employees understand the nature and quality of expected performance; motivate them to achieve it; identify where to improve and develop.

Specific objectives for the PMP are:

• Link the individuals’ performance dimensions and targets to the business strategy and objectives.
• Identify the individual’s training and development needs and growth opportunities.
• Serve as catalyst to give feedback and coaching to staff.
• Plan for the following performance cycle upon year end appraisal.
• Link to reward, thus pay for performance.
• Serve as formal documentation on performance, thus basis for strategic people decisions.

Pillars of Evaluation

The performance appraisal framework is built on the following three key pillars to ensure a holistic and fair evaluation of employees:

1. Job Performance

• Quality, accuracy, and consistency of work.
• Achievement of assigned objectives and KPIs.
• Productivity and efficiency in role delivery.

2. Behavior & Values

• Professionalism, reliability, and accountability.
• Teamwork, collaboration, and adaptability.
• Initiative, ownership, and positive mindset.

3. Punctuality & Skills

• Adherence to working hours and attendance policies.
• Consistence in meeting deadlines and commitments.
• Dependability in handling assigned responsibilities.

Performance Management Rating Scale:

• Company’s follows a 5-point rating scale for performance assessments defined as allows:
• EXCEPTIONAL (rating 95.1-100%): This describes performance which is characterized by exceptional achievement clearly demonstrating outstanding initiative, creativity, and/or results, and which is immediately identifiable by superiors and by colleagues as being far more than the requirements of the job in ALL respects. This is unlikely to be achieved by more than 5% of employees.
• ABOVE EXPECTATIONS (rating 90.1-95%): The individual is routinely going to the extra mile. The individual consistently seeks to apply new and better ideas. Normally 10 to 15% of the employees’ population will fall in this category, hence maximum 15% will be allowed.
• MEET EXPECTATIONS (rating 80.1-90%): Performance is regularly competent and dependable. In SOME aspects of the work the employee might be excellent but, on balance, his/her overall performance fully meets the requirements of the job. This normally covers 60-70% of population.
• NEED IMPROVMENT (rating 60.1-80%): This performance generally falls short of the expected standard for the job and improvement is needed. This rating would accommodate 10-15% of employees. The line manager shall counsel such employees towards improving their performance and reviewing their progress on the job every 3-6 months.
• POOR (rating less than 60%): Performance is unacceptable to meet the basic requirements of the job. Performance is characterized by failure to meet the basic requirements of the job. The number of employees is unlikely to be more than 5% of the total population.   Unless there are extenuating circumstances and a significant improvement is anticipated, the employees’ service with the company will be discontinued.

Performance Appraisal Process and Timeline

The annual performance appraisal process follows a structured sequence to ensure fairness, transparency, and alignment with Somabay Group’s standards. The process unfolds as follows:

1. Preparation (3^rd Week of December):
   HR prepares and sends each leader a spreadsheet that includes the full list of their team members scheduled for appraisal.
2. One-to-One Meetings (^1st Week of January):
   Leaders conduct individual meetings with their team members to review appraisal results, provide feedback, and complete the Performance Appraisal Form. The form must be signed by both the leader and the employee.
3. Completion by Leaders (1^st Week of January):
   Leaders review their teams, insert performance rating scores for each member into the spreadsheet, and return the completed file to HR.
4. Final results after Calibration with CEO (2^nd Week of January):
   HR consolidates all appraisal data and holds a calibration session with the CEO to ensure alignment with the Normal Distribution Curve and to maintain consistency across departments.

Eligibility of Employees Being Appraised

Employees are included in the annual performance appraisal cycle based on the following conditions:

1. Appraisee:

• Employees who joined on or before June 30^th of the appraisal year are eligible for both appraisal and annual bonus/salary increase.
• Q3 Joiners: Employees who joined between July 1^st and September 30^th will be eligible for performance appraisal only. Their performance will be evaluated and feedback shared, to support further HR decisions (e.g., contract renewal, internal transfer recommendations, etc.).
• Q4 joiners Employees who joined on or after October 1st are still in probation at the appraisal cycle are assessed only through the Probation Evaluation Form. Once probation is passed, they will join the next appraisal cycle.
• Employees who were on extended leave (e.g., maternity, unpaid, or medical leave) for more than 6 months of the appraisal year will be excluded from the cycle.

3. Appraiser:

• The appraiser shall be the current Department Manager, provided that the employee has worked under their supervision for at least three (3) months.
• Employees who are still in probation at the appraisal cycle cutoff are excluded from the appraisal process and will only be assessed through the Probation Evaluation Form.
• Once probation is successfully completed, the employee will be included in the next appraisal cycle.
• If the employee has worked under their current manager for less than three (3) months, the appraisal may be conducted jointly with the previous manager.
• Employees who have changed roles, departments, or entities within the Somabay Group will be evaluated jointly by both their previous and current managers, covering their respective supervised periods.
• In cases where more than one manager has supervised the employee, the appraisal will be conducted jointly, with the primary assessment led by the manager who supervised the employee for the majority of the period, and the overall rating reflecting a balanced average of inputs from both managers.