Handbook

Performance Management System

Indian Oil Corporation Limited Indian Oil Corporation Limited

www.indianoilxpress.com
 Performance Management System

For all officers in Grades A-I

CONTENTS

Terms You Need to Know 5

PMS -Objectives, Coverage and Roles 11

Features of PMS 15

Appendix I - Competency Definitions & Proficiency Levels 49

Appendix II: Frequently Asked Questions 85

3
 Terms
You Need to Know
Term Description
PMS Performance Management System- The
unique system of managing
performance at IndianOil

Alignment (of objectives Exists when individual and group

& results) objectives and results contribute directly
to achievement of the organisation
results

Appraisee Every Officer whose performance is

assessed under PMS

Appraiser Every Officer who assesses the

performance of one or more Appraisees
that report to him/her

Cascade The process of sequentially breaking

down organisational objectives and
targets into those of various levels of the
organisation. The individual KRAs (Key
Result Areas) would also include KRAs
over and above these cascaded ones
such as applicable to divisions, units,
functions, areas and individuals

Competency Skills and abilities described in terms of

behaviours that are coachable,
observable, measurable and critical to
individual performance

Countersigning officer The final authority in an individual's

performance appraisal process

e-Enabled Delivered through software

Final Performance The rating given to an Appraisee after

Rating countersignature

Internal Change Agent Pre-selected, s/he is the first point of

contact for any queries on PMS process
at his/her location

7
Term Description
Key Result Area (KRA) Critical achievements required to deliver
IndianOil’s desired business results
Typically are outcomes that directly
contribute to IndianOil’s MoU, strategic
objectives and/or operational goals
Usually measurable or verifiable
Role-based KRAs KRAs that are predetermined for a role
in role profile
Additional KRAs KRAs that are predetermined for other
roles in the organization, and the officer
can choose from among these if s/he
finds necessary
Special KRAs KRAs to be written out by the Appraisee,
in case required in his/her performance
plan based on special projects or
membership of task forces, committees
etc.
Performance Diary A tool for the Appraisee to record
significant events or aspects of
performance which may be used for
performance discussions/ review
Performance Period The period for which performance is
being planned, reviewed or evaluated
Performance Plan A description of KRAs, KPIs (Key
Performance Indicator) and their targets
expected to be accomplished during the
performance period
Proficiency Level The level at which a set of behaviours is
required to be demonstrated in a
particular role
PMS Facilitator/ Responsible for centrally administering
Administrator the e-Enabled PMS software
PMS Tools Tools developed within PMS to facilitate
effective usage: Roles, Stretch, Rating
Scales, e-Enabled PMS, Performance
Diary etc.
8 9
Term Description
Rating Scale 5-point scale used to define and assess
level of achievement on an element
Reviewer Typically the Appraisers' Appraiser, who
is responsible for reviewing the entire
performance process
Score on an Element Level of achievement on the 5-point
Rating Scale for KPIs, Competencies,
Values and Potential.
Section Score (KPI The summation of each element (KPI/
section score, competency/value/potential) rating
Competency section multiplied by the assigned weightage on
score, Values section that element and the stretch level (for
score, Potential KPI section)
section score)
Final Score Overall Score calculated by multiplying
each section score with the section
weightage and then summating the
same. This score is validated by the
Reviewer
Stretch The degree of difficulty built into targets
at the time of Performance Planning
Target A measurable and verifiable definition of
outcomes to be accomplished
Unique Role (UR) Jobs that are held by different individuals
but are similar in terms of objectives and
outcomes
Weightage The percentage value (out of 100%)
allocated to a KPI or a section on the
basis of the criticality, time and effort
required
Performance Management
System - Objectives,
Coverage and Roles
 Objectives of PMS
The performance management system (PMS) aims to encourage
the following:
q Creation of high performance orientation at IndianOil
q Stronger alignment of individual performance with organisational
goals
q Higher degree of transparency, uniformity and process efficiency
q Performance ownership at the employee level

Coverage
All Officers working in Grades A-I.

Key Roles in PMS

Following are the key roles in the Performance Management System:

Appraisee
An individual who is assessed as part of the performance cycle

The key driver of own PMS

Appraiser
An Individual who assesses the performance of one or more
Appraisees that report to him/her
Helps manage performance & provides continuous
feedback and counselling

12 13
 Reviewer
An individual who is responsible for reviewing the entire
performance process and typically is Appraiser’s Appraiser
Ensures objectivity, transparency & consistency

Countersigning Officer
An individual who is responsible for ensuring sanctity of process
at the highest level. He will be the final authority.

Final Authority

Facilitator/Administrator
An individual who acts only as a facilitator and ensures
adherence to timeliness and consistency in the process
Facilitates the process
Features of PMS

14
The following are system features of PMS, which have been detailed
in subsequent sections of this document:
q Performance Period
q Performance Planning
q Mid-year Review
q Final Appraisal, Review & Feedback
q Cornerstones of PMS
The features and tools of PMS have been designed to reduce
subjectivity and individual biases that may impact the effectiveness
of a performance management system.
Key cornerstones of Objectivity, Transparency and Consistency
across IndianOil have been directly addressed. While the various
design features of PMS address all these cornerstones, the emphasis
of each feature is highlighted in the following table.

Features Objectivity Transparency Consistency

Definition of Performance 4 4 4
Joint Planning & Review
with Appraiser 4
Active role of Reviewer 4 4
Defined & articulated
Rating Scales 4 4 4
Communication of
Ratings upto review stage 4
e-Enabled PMS 4 4 4
Stretch Tool 4 4
Definition of Competencies 4 4

17
Performance period This stage involves discussion between Appraisers and Appraisees
to set and agree on the contents of the Appraisees’ performance
PMS follows an April-March annual cycle aligned to the financial year. plan parameters for the coming year. Once approval is obtained from
The cycle consists of three phases, namely, Performance Planning, the Reviewer, the performance plan is considered final.
Mid-Year Review, and Final Performance Review. The critical calendar
months and the sequence of events for these phases are represented Unique Roles
in the following figure:
In order to standardise the performance planning process and
measurement of performance across divisions/ functions/ units, each
officer in the organisation has been mapped to a Unique Role (UR).
Periodic & This also ensures strong alignment between performance plans and
Ongoing organisational business requirements.
development
activities These unique role profiles were created by role holders across
divisions and locations, and then validated by respective functional
experts.
Performance
Planning Definition of Performance
(April - June)
Definition of Performance in PMS is based upon Key Result Areas
(KRAs), Competencies, Values and Potential. The achievement
against targets set for each of these will together constitute the
Appraisee’s performance.
Final Rating Ongoing q KRAs are identified areas of performance that support the
computation and Feedback Mid Year Review organisation’s goals that are to be accomplished during the year.
feedback (October) Each KRA is accompanied by one or more KPIs.
(April-May) q Competencies are knowledge, skills and abilities described in
behavioural terms that are coachable, observable, measurable,
and critical to successful performance.
Final Appraisal
q Potential includes the critical attributes which do not get covered
(April)
in competencies and reflect an individual’s capacity to shoulder
higher responsibility.
q Values are statements that express IndianOil’s ethical
Cascading process
commitments and guiding principles which are timeless and will
Performance planning is undertaken from April to June. Once the stand the test of time, market forces and management practices,
MOU between the organisation and MOP&NG is finalised, these and on upholding of which, individuals are assessed.
targets are cascaded to the divisions. The division heads then cascade
The relative weightages of these 4 sections-KRAs, Competencies,
them down to their subordinates. This process is followed at all levels
Values and Potential, have been pre-decided.
at which this is possible. At each stage of cascade, some other targets
which may not necessarily be cascaded down, may also be added-
these would be specific to specific roles, and may be in respect of
ongoing projects and carried forward from the previous year.

18 19
 PMS allows the Appraisee to define his/her performance measures
using the three categories of KRAs defined in the following section.
Additionally, to be able to focus and prioritise on the basis of

Potential

Potential
Potential

10%

10%
15%
importance, each KPI also has a weightage. This would be finalised
between Appraiser and Appraisee during the performance-planning
phase.

KRA:
Definition - Key Result Areas (KRAs) are “Critical outcomes towards
which effort is directed to support achievement of desired business
results”. Each KRA in a role profile would fall in one of the following
brackets:
(a) Operational / Direct or Critical Outputs: KRAs pertaining to
Values

Values

Values
functional / operational activities (in terms of efficiency) as
15%

10%

10%
performed in the organisation
A,B,C grades (b) Financial: KRAs pertaining to direct impact on top line (revenue)
D,E,F grades

or bottom line (cost) at a decision-making level

G,H,I grades

(c) Strategy and Growth / Forward Planning: KRAs pertaining to

strategic direction setting or establishing differentiation with
respect to manufacturing, selling & marketing, product & process
development and delivery
(d) People / Team Management: KRAs pertaining to people
Competency

Competency
Competency

development, training, performance management and employee

satisfaction activities for all Appraisers with direct reports
20%

10%
20%

(e) Boundary Management / Coordination and Liaison: KRAs

pertaining to liaising / coordinating with Government (local, state,
central), Administrative, Regulatory, Statutory bodies and vendors
/ customers (external & internal)
*Titles in Italics would apply only to ABC & DEF grade officers

Select KRAs
Broadly, three categories of KRAs can be selected / created:
KRA
70%
KRA
50%

KRA
60%

20 21
 These would be defined in the system and
Defining KPIs for KRAs

certain tasks that might be of some other

There could be incumbents performing

role existing in the same function or

in a location carrying out administrative

some other function e.g. Finance person

the user would be able to choose from

Key Performance Indicators (KPI) are specific indicators of
performance to measure extent of achievement on set KRAs within

These would be defined in the role

a given time frame. Each KRA corresponds to specific KPIs defined
to quantify or verify the extent of performance achievement in a given
performance time frame.
Refers to KRAs that are
applicable to an incumbent

the
by the virtue of role s/he is

For each KRA selected, the Appraisee should select at least one
KPI. In case of Special KRAs, s/he would define a KPI.

Additional KRAs
in

Once the Appraisee has finalised the list of KRAs and corresponding
KPIs, s/he will propose weightages and 5 levels of targets for each

them, if required
KPI.
organisation
performing

S/he will also use the stretch tool to determine the stretch involved in
the targets at level 3.

duties
Note: The Appraiser will finally view and accept / discuss / 'refer to Reviewer'
the performance plan.
While implementing PMS, occasions might arise when there are
different points of view between the Appraiser and the Appraisee. In
situations such as these, the Appraiser and the Appraisee should
attempt to achieve a consensus through a process of discussion. In
most cases, the Appraiser is expected to arrive at an outcome that
Role based KRAs

satisfies both the Appraisee and the Appraiser.

In case the Appraiser feels the need, he/she can approach the
Reviewer for appropriate inputs. The Reviewer and Appraiser would
arrive at a solution through a process of discussion that would align
the points of view of the Appraiser and Appraisee. The Appraiser
would discuss the same with the Appraisee to close the issue.
In the unlikely event of the need for further escalation, the issue
These would be defined by role

can be taken to the Reviewer on a case to case basis. The

Refers to certain specific
initiatives and goals that an

testing a new product in a

incumbent might have during
a year e.g. Special project of

holder in the particular year, if

Reviewer would have a joint discussion with the Appraisee and

Special KRAs

the Appraiser where the decision taken by the Reviewer would

be final.
It is mandatory for the Reviewer to view and approve all plans before
the performance-planning phase is closed.

Stretch
Stretch is defined as the degree of difficulty built into targets. A
refinery

required

consistent process for target setting ensures uniformity in degree of

loading and stretch in targets for individuals. The target setting process
in PMS works on the following 5 dimensions:

22 23
q Relative to previous achievements
q Degree of dependence on uncontrollables
q Degree of complexity
q Skill Requirements
q Need for innovations
During the performance-planning phase, the Appraisee proposes
targets for each KPI. S/he then assesses the overall degree of stretch
of each target using a four-point (High, Moderate, Low, and Nil) scale
along these 5 dimensions.
Stretch needs to be calculated for the annual target at level 3 of the
performance of the target. This is the target level for MoU and centre
point of scale and also the logical definition of target based on Meets-
Expectations definition of scale.
The 4-point scale for each dimension is as follows:

Dimension Nil Low Moderate High

Relative to previous Nil Standards of timeliness Standards of timeliness Standards of timeliness

achievements (deadlines), quantity, quality
and costs of outcomes can
be met with normal effort.
Standards have been
regularly met before.
(deadlines), quantity, quality
and costs of outcomes
require some significant
effort. Standards have been
met once or twice before.
(deadlines), quantity, quality and
costs of outcomes require very
significant, sustained effort.
Requires standards that have
never been met before.

Degree of dependence Nil Limited support from others Others' work or support is Others' work or support is
on uncontrollables is necessary for success of necessary for success, but it necessary for success, but it
the initiative. may be late or not complete. may take a new direction at any
point.

Degree of complexity Nil Steps, milestones and Target requires the Required steps, dependencies
resource requirements coordination of more and time frames have not
follow a tested route. resources and elements previously been planned,
than tested route. integrated, or executed.

Nil Existing skills may be
Skill requirement
challenged, but new skills
are not required.
Required skills can be Focused and dedicated time
developed by training with and resources will be
minimal disruption. necessary to gain required
skills.

Need for innovation Nil Can use standard Involves some innovation in Requires revolutionary
technology and tools. adapting existing tools or innovations and technology.
methods.

24 25
Once the targets have been jointly assessed by the Appraiser and What Should I Demonstrate?
Appraisee along each of the 5 dimensions, the total points are
averaged to arrive at a stretch score for a KPI. 1. Passion for Excellence
Stretch can reduce subjectivity but not eliminate it. Appraiser and 2. Care for all stakeholders i.e. Customers, Shareholders,
Appraisee objectivity and process adherence are required for stretch Employees and Community
to function adequately. Reviewer is expected to ensure balance in 3. Commitment to Organisation including its National obligations
stretch across similar roles. The degree of Stretch varies across KPIs.
But the overall stretch is the weighted average of the stretch on various How Should I Conduct Myself?
KPIs. This will provide a perspective on the overall stretch of a
1. Honesty
performance plan.
2. Integrity
Competencies 3. Transparency
Definition - Behavioural Competencies are defined as "Skills and 4. Truthfulness
abilities described in behavioural terms that are coachable, 5. Courage of Conviction
observable, measurable, and critical to organisational performance.
Competencies form the foundation of "what" capabilities are required The complete descriptions will be made available on the IndianOil
for the successful execution of roles and responsibilities, thereby Intranet.
driving functional, unit and organisation performance" Following are the values for grades G,H,I (as prescribed by the Public
Enterprises Selection Board):
The list of generic / behavioural and leadership competencies are
appended (Page 49) to this document. Functional competencies q Fairness- decisions are made objectively, free from patronage
include technical skills and know-how required to discharge duties. and reflect the just treatment of employees and applicants.
The list and detailed models for functional as well as generic q Transparency- there is open communication about every aspect
competencies are available on the IndianOil Intranet. of managerial decisions which concern people.
Based on the varying demands of each role, competencies and their q Trust- trustworthiness leading to confidence
manifestation degrees vary. Therefore, for each role, applicable - allow staff the freedom to grow and develop
competencies from this list and the desired proficiency level for these
- relate to others on the basis of mutual respect
have been identified and included in each UR. A detailed list of all
competencies, generic and functional, and the proficiency levels - courage to stand by your convictions
defined for each has been provided in Appendix I. q Candour- frank and forthright
Although the Appraisee does not have the option to select - give and receive constructive criticism/suggestions
competencies defined for his role, s/he may view the competencies - openly discuss performance deficiencies and take corrective
and proficiency levels which are applicable to his role and he is action
expected to demonstrate on the job. - appreciate good performance
- be consistent in words and deeds
Values
- face up to your mistakes
Following are the values which have been defined by the organisation
as essential to display for Grades A-F. q Collaboration- working in tandem
- be open in sharing information and in seeking suggestions /
opinions

26 27
 - be sensitive to the concerns of others
Grades A,B,C Grades D,E,F
- honour your commitments
- encourage team work across departments/functions Adaptability to change Managing Change
q Involvement- total commitment Collaboration Boundary Management
- Be dedicated and committed to work, build commitment by Cost Consciousness/ Entrepreneurial
encouraging wide participation in decision making process to Resource utilisation Leadership
the maximum extent possible. Dependability Enhancement of Quality and
q Flexibility- Ability to participate and adapt to changing Quality of Work / Output Output
circumstances using sound judgment
- be open to accepting new ideas The complete descriptions will be made available on the IndianOil
- be willing to learn from anyone and to do things differently Intranet.
- Be prepared to operate and adapt to different environments Following are the attributes which have been defined by the
q Willingness to accept challenge- organization for Grades G,H,I.
- be willing to experiment q Leadership abilities- demonstrates ability
- allow for freedom to fail, but learn from it too - for guiding collective decision making
q Discipline- adherence to accepted norms - for succession planning
- Honours promises and adheres to agreed system - crisis management
- Respect for others’ time and space - ability to take risks
- Exercise self control q Team building- demonstrates effectiveness in re-organising his/
her own department
q Ethical Behaviour- Demonstrate honesty and sincerity in every
action - manage diverse and divergent views and group processes
without losing sight of objectives
- Apply sound business and professional ethics
q Ability to build a strategic vision- Demonstrates ability to manage
- Show consistency with principles, values and behaviours
change
The detailed set of values is available on the IndianOil Intranet. The
- Focus on long term issues
Appraisee will also be able to view the set of values applicable to his
level, in the e-PMS. - Strategic thinking
- Translate vision into goals
Potential
q Business sense- commitment to bottom-line results by enhancing
Following are the attributes which have been defined by the revenue generation by addressing interest of customers and
organisation for Grades A-F. stakeholders
- balancing need for viable short and long term performance
- optimising unit / organisation's contribution while supporting
corporate objectives

28 29
 - spotting and pursuing new business opportunities wherever
possible

Administrator
Facilitator/
q Communication skills- communicate ideas and information

4
effectively through public speaking and presentation, ability to
convert ideas through action plan and ensure acceptability within
the organisation and performance at board meetings
The Appraisee will be able to view these elements of potential which
s/he is expected to demonstrate.

Reviewer

4
4
4

4
Editing performance plan

Responsibility
In situations where, extraneous circumstances significantly impact
performance plans, changes in the plans may be incorporated, e.g.
Changes in business environment which may impact Key Results
Areas, KPIs or targets of various individuals. Editing the performance

Performance Planning - Process steps, Roles and Responsibilities

plan is to be initiated by the Appraisee, the rationale for the same is

Appraiser
to ratified by the Appraiser and the Reviewer before the change can

4
4

4
be formalised into the system. Once approval is obtained from the
Reviewer, the Appraisee is able to modify his plan and this then follows
the same process as the initial performance planning module.

Appraisee

4
4
4
4
4
4
4

4
Identify additional and special KRAs

Final approval of Performance Plan

Close performance planning phase
Identify overall weightage for KPIs
Propose weightages for each KPI
Initiate performance planning

Initiation of change in plan

Identify Role-based KRAs

Validate degree of stretch

Propose targets for KRAs

Ratification and sign off

Identify appropriate UR

Achieve consensus
phase for the year
Process Step

for the year

30 31
Feedback and Counseling

Describe consequences of improved / not improved

The process of continuous Feedback and Counselling is an inherent

Focus on behaviour that can be changed, not the

Together explore options for solving the problem

and critical part of PMS.

Express confidence in the Appraisee's ability to

Define the impact on you and other members

Tips for Giving Negative Feedback

Share your expectations for future behaviour

The mid-year and final reviews are specifically focused on Feedback

Offer support to help or remove obstacles

and Counseling and hence require the Appraisee and the Appraiser
to have a formal feedback session.
For Feedback and Counselling to be truly effective, it should be
provided and received on an on-going basis. When used effectively,
Feedback & Counselling are powerful means of positively impacting
performance.
Feedback and Counseling helps an Appraiser in both obtaining
information and providing inputs on how an Appraisee is performing
and whether or not he / she is headed in the right direction. It is also
an opportunity for the Appraisee to solicit resources and help that

performance
may be required for enhancing his / her own performance.
Most people are comfortable in providing positive feedback. However,

improve

person
they are hesitant to initiate a conversation that involves sharing of
negative or unpleasant performance-related information. Such
hesitation can be overcome by considering the importance of their
feedback in correcting the performance level of the Appraisee, and

Check to be sure clear communication has occurred

Provide timely feedback, both positive & corrective
the consequent benefit to the Appraisee's career.

Listen to the other person's viewpoints and ideas

Feedback is of various types:

Catch performance problems early while they

Tips for Giving Positive Feedback

Provide specific examples in your feedback

q positive feedback
q corrective feedback

Recognise good performance often

q feedback focused on identifying obstacles to performance

Solicit as well as provide feedback

q feedback for the purpose of sharing information etc.

messages

are small
32 33
 Mid- Year Review
Remember - Giving Feedback is like Giving GIFTS
The objective of a mid-year review is to ensure that performance
Goes both ways: Feedback should be a two-way exchange. It is management is not limited to "once-a-year report card" but has a
critical to listen to the Appraisee to whom you are giving feedback. mid-year process for reviewing and tracking achievements. It also
Initiated by the person who sees a need: Feedback should be reduces the scope for surprises at the end of the year and ensures
initiated by the person who sees the need first. When Appraisee that the Appraisee is always aware of expectations.
has requested feedback, he or she is less likely to be defensive. A
climate conducive to giving and receiving feedback, and one that
values honest communication, makes it easier for people to ask
for feedback when it's needed.
Frequent: Feedback needs to be provided on a regular basis. If
the Appraisee is surprised by the message, feedback is not frequent Appraisee will complete
enough. Appraisee will submit
Self-Appraisal on KPIs Self-Appraisal to
Timely: Generally, feedback that is given as close to the event as against targets set for Appraiser
possible is most useful. However, timely doesn't necessarily mean first 6 months
that feedback must follow immediately after a triggering event,
especially if there are emotions involved.
Specific: Non-specific comments leave the Appraisee with
insufficient information about what changes or improvements he
or she might need to make. Base your feedback (positive, negative,
or corrective) on observed behavior and facts, and not on
inferences, assumptions, or what you've heard from others.

Performance Diary Appraiser will discuss

Mid Year Appraisal / the review with
The Performance Diary is a tool provided to the Appraisee to keep review completed
record of key information related to performance. The Appraisee can Appraisee
make entries as when required; all the entries will be stamped by the
date and time entered.
Every Appraisee entry is intimated to Appraiser and every Appraiser
entry is intimated to Appraisee.
The Reviewer is able to view the Appraisee's performance diary when
he desires.
The diary is expected to ease the effort of tracking key performance
events/ activities. This would be used as a support document during
performance reviews.

34 35
Mid-Year Review of performance for each individual is conducted The Final Review Process
during the month of October. This is initiated as a self-appraisal by
the Appraisee and a review by the Appraiser. The Mid-Year Review
does not result in a performance score, but is a half-yearly opportunity
to record comments on performance issues.
The Mid-year review is also an opportunity where under extraneous
circumstances changes in performance plans may be incorporated; System will
e.g. Changes in business environment which may impact Key Results calculate the
Areas of various individuals. Appraisee Appraiser Appraiser Reviewer PMS Score
will will will will as per
Final Appraisal, Review & Feedback complete review determine validate weightages
Self – Self - Rating on each of elements
Objectives
Appraisal Appraisal each KPI, rating and overall
Final Appraisal, Review & Feedback is an assessment phase when on KPIs & and Compe- and make weight of
Appraisers assess level of achievement of KRAs, targets and routine submit to perfor- tency, changes sections
responsibilities and demonstration of competencies for each the mance value and if any based on
Appraisee. Appraiser outcomes potential KPI, compe-
of the element tencies,
The final performance review and feedback is undertaken in the month
Appraisee values and
of April-May. Ratings and feedback will be given based on what the potential
employee has delivered vis-à-vis the set and agreed performance
plan.
During the final appraisal, review and feedback phase, first the
Appraisee undertakes a self-appraisal and gives a rating on all the
performance parameters i.e. KRAs, Routine Responsibilities and
Competencies. The Appraiser then does the assessment & rating.
He/ she also reviews the actions taken towards achievement of the Concl- Countersigning Only the
Appraisees's development plan. The Reviewer then reviews the udes Final officer validates Final score
ratings on KRAs, Routine Responsibilities and Competencies. At any Review and moderates on KPIs is
Phase final PMS rating as shared with
stage the Appraiser and/or Reviewer can call for a discussion with
per current Appraisee
the Appraisee. The final ratings have to be a consensus between
process
Appraisee, Appraiser & the Reviewer. In case of a dispute, the
Reviewer's rating will be treated as final and will feed into the Overall
performance score of the Appraisee.
Feedback and guidance to the Appraisee should be provided on a
continuous basis throughout the year. PMS provides the Appraisee
and the Appraiser opportunity to input the key achievements as and
when they happen through an on-line personal diary. This will also
help capture all performance-related information and keep continuous
focus on performance.

36 37
Rating Scale

Expectations
Significantly
Outstanding
All performance ratings in PMS are done on a 5-point rating scale.

Above
The scale description is different for different sections.

5
KPIs
KPIs have a 5-point scale with each point on the scale anchored to
target metrics - reflecting degree of performance achievement against
each KPI. The target metrics against the 5 levels of achievement
have been proposed by the Appraisee, validated by the Appraiser

Expectations
Moderately
and reviewed by the Reviewer during the performance-planning

Achiever

Above
phase. The following is an illustration of the scale:

4
Level Level Level of Target
Achievement
(illustrative for
Sales in INR Crores)
1 Significantly Below Expectations 120 crores

Expectations
Contributor
2 Moderately Below Expectations 130 crores

Meets
3 Meets Expectations 145 crores

3
4 Moderately Above Expectations 155 crores
5 Significantly Above Expectations 170 crores

Improvement

Expectations
Moderately
Needs

Below
2
Unsatisfactory

Expectations
Significantly
Below
1
KPIs

38 39
 Competencies

2
1 3 4 5
Development
Learner Capable Strength Role Model
Area

40
Has not yet Sometimes Often Always Encourages &
demonstrated demonstrates demonstrates demonstrates influences others
this competency this competency this competency this competency to display this
competency

Values

2
1 3 4 5
Development
Learner Capable Strength Role Model
Area
41

Sometimes Often Encourages &

Does not Always
demonstrates demonstrates influences
demonstrate demonstrates all
some of these most of these others to display
these values of these values
values values these values
 influences others
Calculation of stretch

Encourages &

to display this
Role Model
As discussed in the section on performance planning, stretch is the

attribute
degree of difficulty built into the target at the time of performance

5
planning. The year end rating on each KPI will be multiplied by the
stretch on it to get the performance score for each KPI.
This process will ensure that Appraisees whose targets are stretched
are not disadvantaged as compared to those whose targets have
lower stretch. Stretch has been considered for IOCL given the need
to address issues on loading in PMS targets which may be

demonstrates
this attribute
accentuated given the planned linkage of KRA/KPI section PMS
Strength

Always
scores to Individual PIS Design.
4

5 Dimensions of Stretch Degree of Stretch

Nil Low Medium High

Relative to the previous years 0.25 0.5 0.75 1
Dependence on uncontrollables 0.25 0.5 0.75 1
demonstrates
this attribute
Capable

Complexity 0.25 0.5 0.75 1

Often

Skill requirements 0.25 0.5 0.75 1

3

Need for Innovation 0.25 0.5 0.75 1

Total Score 1.25 2.5 3.75 5
Stretch 0.25 0.5 0.75 1
demonstrates
Development

this attribute
Sometimes

The performance score is calculated based on performance on KPIs.

Area
2

KRA Weight Rating Stretch Individual KPI

Score
(KPI weight *rating
*stretch)
KPI 1 20% 3 0.85 0.51
demonstrated

KPI 2 30% 4 0.75 0.90

this attribute
Has not yet
Learner

KPI 3 40% 4 0.95 1.52

1
Potential

KPI 4 10% 2 0.60 0.12

KPI Score 3.05

42 43
The following is an illustration of how overall performance scores can be calculated for individuals:

PMS Calculation Sheet

GHI Level
KRA Weight Stretch Rating Individual KPI Score
50% (weight*stretch*rating )
KPI 1 20% 0.85 3 0.51
KPI 2 30% 0.75 4 0.90
KPI 3 40% 0.95 4 1.52
KPI 4 10% 0.60 2 0.12
KPI Score 3.05
Competency Weight Rating Individual
Competency Score
20% (weight * rating)
Competency 1 33% 3 1.00
Competency 2 33% 4 1.33
Competency 3 33% 3 1.00
Competency Score 3.33
Values Weight Rating Individual Values Score
15% (weight * rating)
Values 1 33% 4 1.33
Values 2 33% 3 1.00
Values 3 33% 4 1.33
Values Score 3.67
Potential Weight Rating Individual Potential Score
15% (weight * rating)
Potential 1 33% 4 1.33
Potential 2 33% 5 1.67
Potential 3 33% 4 1.33
Potential Score 4.33
Overall Score 3.391
Overall Score = (KPI rating * KPI Weight + Competency rating * Competency Weight + Values rating * Values Weight + Potential rating * Potential
weight) Overall Score = (3.05*50% + 3.33*20% + 3.67*15% + 4.33*15%) = 3.391

44 45
The Appraisee will be communicated the Performance score on KPIs
upto reviewer level. This Performance score will be input into the

Administrator
Facilitator/
calculation of final performance rating. However the final rating
(Significantly Below Expectations/ Moderately Below Expectations/

4
Meets Expectations/ Moderately Above Expectations/ Significantly
Above Expectations) would be arrived at.

Performance Appraisal, Review & Feedback - Process steps, Roles and Responsibilities:
Managing Role Changes

Reviewer
PMS provides for handling role changes arising from transfers,
promotions, change in responsibility allocation etc. When a role

4
4
Responsibility
change happens, the performance appraisal and review is done
before transitioning to the new role, except for incumbents who have
occupied the previous role for a period of less than three months. It
is to be noted that the individual undergoing a change in role needs
to undertake a fresh performance planning exercise as per guidelines
provided in the section on performance planning.

Appraiser
For the purpose of calculating overall performance rating for

4
4

4
4
individuals who have undergone a change in role, a time weighted
average performance rating of the roles performed by the individual
is taken.
In the case of new recruits who come on board during a performance
cycle, if s/he spends less than 3 months in the performance cycle,

Appraisee
his or her performance will not be appraised and reviewed.

4
The following is the list of competencies that form a part of PMS:

Initiate appraisal & review phases

score and feedback to Appraisee

Communication of performance
Commenting on performance

Final Appraisal & Review

Close appraisal & review

Achieving consensus
Year end appraisal
Mid Year Review
(mid-year & final)

(mid-year & final)

Year end review
Process Step

Self Appraisal
Self appraisal

Closure
46 47
 Appendix I -
Competency Definitions &
Proficiency Levels
1) Planning & Organizing
2) Strategic Orientation
3) Change Leadership
4) Championing Customer Focus
5) Performance Focus
6) Seizing Opportunities
7) Personal Effectiveness
8) Team Leadership
9) Developing Self and Others
10) Impact and Influence
11) Strategic Thinking
12) Practical Creativity
13) Openness and Learning
14) Customer Service Orientation
15) Achievement Orientation
16) Analytical Ability
17) Decision Making
18) Problem Solving
19) Negotiation Skills
20) Team Effectiveness
21) People Development
22) Communication skills

51
Planning and Organizing
Competency definition
Establishes systematic action plans for self and others to assure
accomplishment of specified objectives
Proficiency Level 1
Ability to plan and organize for self
q Develops schedules to accomplish work
q Develops a personal organizational system and work routine
(files, to-do lists, paperwork, pending orders) that facilitates
delivery of work
q Prioritizes activities and issues on daily, weekly, and monthly
basis and reworks plans as required
Proficiency Level 2
Ability to do complex planning for self and team
q Clearly outlines the work, deliverables, and timelines to team
members, if any and helps them work out action plans
q Establishes a course of action to accomplish a specific goal;
plans proper allocation of time and resources.
q Analyzes cost-benefit trade-off and focuses on activities that
have the greatest impact
q Is aware of inter-relationships among different activities and
plans work assignments and allocates resources accordingly
52
Strategic orientation
Competency definition
It is the ability of having the "big picture perspective", the ability of
being able to assess long term implications of what is being done
today and articulate strategies that need to be adopted / designed
to achieve long term goals. This ability requires the individual to
have a sound knowledge of the organisation and its environment
and be aware of global developments. "Conceptual orientation" is
evaluated as a key building block for an individual to be able to
articulate strategy. It is the ability of an individual understanding a
situation or problem by putting the pieces together, seeing the larger
picture.
Proficiency Level 1
Deep understanding of the organisation and environment
q Demonstrates understanding of the overall organisation value
creation cycle
q Displays a good understanding of the environment -
organisation, industry understanding, global developments, etc.
q Displays a good understanding of initiatives in own area and
how they influence overall organisational strategy.
q Demonstrates ability to use financial data for business decisions
- (EPS; revenue/profitability analysis; handling of debt; market
capitalization, etc).
Proficiency Level 2
Ability to construct and articulate strategic intent
q Is able to use multiple sources such as knowledge of the
environment (competition, global development, etc.), knowledge
of the organisation, into a meaningful strategic intent for the
organisation/ division/ functional area
q Demonstrates ability to analyse a business situation in detail -
pros and cons of business options possible
q Displays the ability to do scenario building
53
 Proficiency Level 3
Converts long term vision into strategy
q Anticipates situations well in advance (1-3 yrs) and is able to
draw the contours of the trends and bases inferences on these
to articulate a vision
q Communicates his vision of the future to the key stakeholders
and the workforce at large and obtains their commitment
q This level is characterized by individuals that have a deep
understanding of the business today and going forward. They
have the ability to be able to isolate the key drivers from an
overall complex division / organisation strategy and hence be
able to focus self and others on influencing those drivers
54
Change leadership
Competency definition
It is the ability to question status quo and to change or easily accept
changes in own organisation or job area. It is defined as the skills,
knowledge and commitment to adapt, shift perspectives, and use
different approaches to meet diverse and changing organisational
requirements. The superior performers are differentiated in this
competency by element of "innovation" in the change process,
and the "complexity" of change involved.
Proficiency Level 1
Adaptability to change; questions status quo
q Understands the changes in the business context and responds
to adapt to the new situation
q Questions status quo; does things (to improve performance)
that have not been done before in that job before, but may
have been done elsewhere in the organisation
q Determines what needs to be done differently to achieve
progress and builds a case for change
Proficiency Level 2
Conceptualises change; acts as a leader/sponsor of change
q Acts as a leader/sponsor of change (i.e. articulates the need
for change, mobilises people and resources, actively leads
change processes, recognises and rewards required behaviours
and is willing to deal with behaviours / people blocking change)
q Leads change by doing something new and different for the
company but not necessarily new for the Industry
q Acts as a sponsor of change at the function/division levels
(including all behaviours detailed in level 1)
55
 Proficiency Level 3
New to the Organization/ Industry; (organization wide impact)
q Leads change by doing things that are unique, cutting-edge,
and new to the industry
q Challenges fundamental and basic organisational principles and
generates new alternatives or solutions in order to ensure
continued organisational success
q Acts as a sponsor of change at the organisation/industry levels
(including all behaviours detailed in level 1)
56
Championing customer focus
Competency definition
"Championing customer focus" is the ability of a leader to orient
and drive self and others for satisfying customer needs. Customer
Orientation implies an understanding of the importance of service
to the customer. It involves focussing efforts on discovering and
meeting the customer needs. The customer may be an external or
internal customer.
Proficiency Level 1
Addresses explicit needs
q Responds and corrects service problems promptly and non-
defensively
q Demonstrates ability to do simple things that delight the
customer
Proficiency Level 2
Addresses implied needs; becomes a customer advocate
q Seeks information about the real, underlying needs of the
customer, beyond those expressed initially and match these to
available products or services
q Gets "under the skin" of the customer's thinking process,
decision making process, and hence is able to do simple things
that delight the customer
q Puts in place processes to get genuine feedback from customers
in a structured manner and on a periodic basis
q Role models customer focused behaviours through regular
personal contact with key customers
57
 Proficiency Level 3
Business partner
q Works with the customer as a business partner to identify
underlying needs and develop products and services to fulfill
these needs
q Works with a long-term perspective in addressing the client
needs; plans trade offs for long-term gains.
q Initiates actions that have tangible improvement on the business
(profitability, growth) of customers
q Creates a value proposition that makes the customer seek out
IOCL for products / services
q Role models customer focused behaviours through regular
personal contact with a variety of customer segments
58
Performance Focus
Competency definition
"Performance focus" is a desire for doing one's own work well or
for competing against a standard of excellence. The focus of
individuals demonstrating this competency is on the outcome and
on over-achieving the outcome. An individual demonstrating this
competency may set standards based on his/ her past performance
or performance of others or those based on innovation.
Proficiency Level 1
Creates Own Standards of Excellence and Strives to Improve
Them
q Uses personal methods of measuring outcomes against a
standard of excellence (not imposed by the organisation)
q Demonstrates ability to plan in detail for goal achievement
q Demonstrates a strong personal belief to succeed
q Demonstrates ability to persist in actions over a long period of
time
q Demonstrates ability to maintain focus on goals inspite of
diversions
Proficiency Level 2
Persists in effort
q Makes specific changes in the system or in own work to improve
performance, without any specific performance improvement
standards set
q Sets challenging goals for self and others (a challenging goal
is one which has a 50-50 chance of achievement - it is a definite
stretch, but not unrealistic or impossible)
q This level is characterized by people who persist in their efforts
to meet goals that maybe new to the division/ organisation
59
 Proficiency Level 3
Sets new benchmarks in performance
q Sets up benchmarks in performance, which are international
class
q Takes numerous sustained actions over time in the face of
obstacles to reach very challenging goals. This level
incorporates significant levels of innovation for achieving set
goals
60
Seizing Opportunities
Competency definition
"Seizing opportunities" is a bias for action. It includes the ability of
taking ownership for decisions, being decisive, displaying
calculated risk taking and business savvy. These capabilities help
enhance job results, avoid problems and find or create new
opportunities. The differentiating competency here is
"entrepreneurial effort" - taking ownership and ensuring that the
opportunity is capitalised upon.
Proficiency Level 1
Bias for action; logical
q Demonstrates a clear bias for action
q Demonstrates ability to take initiative where the situation
requires (within domain) / (even outside his domain)
q Acts quickly and will be decisive in a crisis (where the norm is
to wait, "study", and hope the problem will resolve itself)
q Demonstrates ability to use a logical and rational thinking
process for decision making
61
 Proficiency Level 2
Spots opportunities; displays business savvy
q Demonstrates ability to spot opportunities within / outside his
domain
q Displays business savviness while making critical decisions -
has sound business intelligence and uses this to identify
opportunities; has an understanding of business economics,
etc.
q Takes ownership for decisions in his area, and decides to moves
ahead in organization's interest, even without availability of all
information required for decision-making
q Demonstrates ability to spot opportunities in the environment
that are not obvious to others
q Has the good judgment to understand and act on situations
where there may be short-term losses but much bigger gains
in the long term
Proficiency Level 3
Treads "where others fear" - deep entrepreneurial spirit
q Makes extra-ordinary heroic effort - acts without formal authority,
takes personal risks, to get the job done (the emphasis must
be on meeting the needs of the job, not on defiant norm
breaking)
q This level is characterised by decisiveness and risk taking for
initiatives/major problems /new projects where there is search
for a significant organizational level achievement but with a
corresponding risk of "visible failure"
62
Personal effectiveness
Competency definition
"Personal Effectiveness", for a leader at IOCL, is the ability to inspire
others through displaying qualities of a role model - self-belief,
self-confidence, ability to walk the talk and integrity. A differentiating
competency for personal effectiveness is "sensitivity to others",
the ability of wanting to understand other people, getting along
with people and communicating freely across cultural barriers. It
is the ability to hear accurately and understand the unspoken or
partly expressed thoughts, feelings, and concern for others.
Fundamental to this competency is a high level of self-awareness.
Proficiency Level 1
States own stance clearly
q States confidence in own judgment
q States own position clearly and confidently in discussion with
seniors / others
q Is transparent; has a reasonable understanding of his abilities
- is able to admit gap in his understanding / competence /abilities
in specific areas to others
q Understands current unspoken thoughts, concerns or feelings;
or get others to take actions desired by the speaker
q Attentively listens to what is being said and compares with his
own experience
q Gets/ facilitates others to talk/ verbalise their emotions
63
 Proficiency Level 2
Actions support verbal expressions (walk the talk)
q Actions in support of verbal expressions - demonstrates values
(self-belief, conviction, integrity) continuously in his actions
q Very high conviction in his abilities
q Has a very high level of self-awareness (understanding own
emotions /strengths /weaknesses)
q Understands underlying problems- the reason for someone's
ongoing or long-term feelings, behaviours or concerns
Proficiency Level 3
Is a role model
q Is seen as a universal role model for organisational values like
- integrity, authenticity, confidence and self-awareness
q Enjoys a very high credibility amongst peers, superiors and
subordinates
q Has the ability to leverage his emotions to energise others as
well as create positive results. Typically he can convert
emotionally laden situations to build stronger bonds in teams
rather allowing them to create divides
q Understands complex causes of others' long-term behaviour
patterns, attitudes or problems
64
Team Leadership
Competency definition
"Team Leadership" is the ability of a person to set direction, inspire
others, and channelise the energy of the group in a certain direction.
This is not always a level of formal authority.
Proficiency Level 1
Promote Team Effectiveness
q Publicly crediting team members, etc.
q Uses formal authority and power in a fair and equitable manner
q Is able to rally key team members around during times of crises
Proficiency Level 2
Take care of the Group (resourceful for the team)
q Undertakes activities that would indirectly promote team spirit
to promote team morale and productivity
q Protects the extended team within the organisation
q Communicates the big picture; shared purpose
q Demonstrates ability to enthuse the group through his personal
energy and passion
Proficiency Level 3
Communicates a compelling vision
q Transforms individuals beyond their own expectations
q Has a genuine charisma, communicates a compelling vision,
which generates excitement, enthusiasm and commitment to
the group vision
q Ability to create a shared vision by encompassing the vision of
other team members
65
Developing Self & Others
Competency definition
This competency has two facets - "developing others" and
"developing self". In case of "developing others", this competency
is demonstrated by a genuine intent to foster the learning or
development of others specifically for the benefit of the people
and organisation in the immediate and long term. Delegation and
empowerment are key enablers to foster development of
subordinates. This competency also assumes that an individual
has an accurate assessment of his/her subordinate's strengths
and weaknesses.
In case of "developing self", this competency is about the desire
and pursuit of deep continuous learning of the areas handled and
the curiosity to learn areas beyond specific responsibilities. The
individual has a motivation or disposition for acquisition and
distribution of expertise.
Proficiency Level 1
Gives specific and appropriate Feedback; follows it up with
action plans
q Is able to create learning opportunities through delegation
q Is able to give negative feedback
q Ensures that team members get corrective feedback on
performance in the manner of an action plan
q Presents a balanced view of someone's specific strengths and
weaknesses. Thus he is able to identify top performers
q Updates knowledge from medium term perspective - makes
self aware of the latest information, actively keeps skills up to
date
q Actively seeks feedback from others and uses it to understand
strengths and weaknesses in order to improve job performance
66
Proficiency Level 2
Empowers with shared accountability
q Delegates full authority and responsibility with enough space
to do a task in their own way, including the opportunity to make
and learn from mistakes in a non-critical setting
q Arranges appropriate and helpful training, assignments or other
experiences with a specific purpose of fostering the other
person's learning and development
q Exhibits active curiosity to discover new things, explores beyond
one's immediate field
q Demonstrates high degree of excellence in complex functional
areas
q Updates knowledge from long-term perspective
Proficiency Level 3
Long term leadership development
q Has a track record of creating star performers (in leadership
positions) through driving focussed development over a long
time frame
q Arranges for recognition (for e.g., promotion/career growth) for
the individual(s) as a reward for his development. This
behaviour is rated highly because generally an individual has
to have developed people well to be able to reward them for
responding well
q He is an acknowledged expert in his field within and outside
the organisation
q Makes major efforts to acquire new skills and knowledge, or
maintains an extensive network of technical / professional
contacts to keep abreast of the latest ideas
q Willingness and track record of developing "expertise" in area
other than core area
q This is often the kind of person selected to work in uncharted
waters
67
Impact & Influence
Competency definition
"Impact & Influence" competency reflects a person's ability to
influence the thought process of others towards a favourable
strategic outcome. This implies an intention to persuade, convince,
influence or impress others in order to get them to support the
individual's specific agenda.
Proficiency Level 1
Tunes in to the recipient of the communication
q Adapts to discussion to appeal to the interest of others
q Selects the most appropriate mix of persuasion, request,
coercion, etc best suited to the situation
Proficiency Level 2
Uses Indirect Influencing Strategies
q Uses deep knowledge to convince others
q Uses experts or third parties to influence; winning the consent
of the final person through managing an important intermediary
q Is able to think a couple of steps ahead of the other party
Proficiency Level 3
Uses Complex Influencing Strategies (Impact and influence
significant changes to process/ decisions/ preference etc)
q Uses complex/ tactful influencing strategies tailored to specific
situations
q Take many different actions involving multiple stakeholders from
inside and outside the organisation in order to create the
necessary support to push through organisation level changes
q Makes complex staged arguments in order to convince others
q Facilitates consensus building through necessary pre-work -
like assembling coalition, build "behind the scene" support for
the ideas, deliberately gives or withholds information to have
specific effects
68
Strategic Thinking
Competency definition
Draws a logical connection between organization vision and
strategy with own area of work and for employees supervised by
him
Proficiency Level 1
Views his role in relation to the larger organization
q Understands how own role contributes to the organisation
q Understands the broad level strategy of the organisation
q Prioritises work in alignment with business goals
q Acts in accordance with strategies, objectives, or goals
developed by others
Proficiency Level 2
Understands long term organization implications of actions
q Aligns current actions with strategic goals
q Assesses and links short term day to day tasks in the context
of long term business strategies
q Diligently considers whether short term goals will meet long
term objectives
q Reviews own actions against the organization' s strategic plan
q Focuses on the 'big picture' when considering possible
opportunities or projects, or thinks about long term application
of current activities
q Focuses on long term issues, problems, or opportunities, in
addition to day-to-day activities
69
Practical Creativity Openness and Learning

Competency definition Competency definition

Utilises learning and resourcefulness to generate ideas, innovate, Utilises learning and resourcefulness to generate ideas, innovate,
recognise opportunities and develop enterprising solutions recognise opportunities and develop enterprising solutions

Proficiency Level 1 Proficiency Level 1

Adopts a creative outlook in current work situation Willing to try out new approaches
q Looks at situations from multiple perspectives q Works as active change agent for his department
q Generates & implements new insights into procedures & q Exhibits active curiosity to discover new things, acquires
methods of doing things information & adapts behavior & approaches in dealing with
changing situations & people
q Consistently challenges himself to generate innovative ideas
that contribute to developing new products/ practices/ solutions q Expert in his functional area
q Willingly expresses his new ideas and is open to trying them,
without fear of failing Proficiency Level 2

Proactive approach to learning for self and team

Proficiency Level 2
q Stimulates others to learn & act as active change agent for the
Drives self and team to innovate on products and solutions company & bring quantum improvement
q Creates innovative products and solutions q Demonstrates a commitment to learning & change in an effort
q Encourages positive conflict to stimulate innovative solutions to acquire expertise ranging from simple continuation to
mastering new fields
q Encourages work group members to generate new ideas without
fear of failure
q Filters new ideas generated based on their risk- return profile
and carries forward those ideas that can drive growth

70 71
Customer Service Orientation Proficiency Level 3

Competency definition
Approaches all objectives and work activities with the recognition
that the success of the business depends on satisfying the
customer- internal and/or external
Goes the extra mile to identify and service customer
requirements
q Proactively identifies customer needs, provides solution
(standard or customized) and ensures win-win relationship with
customers

Proficiency Level 1
Identifies internal and external customer
q Knows who the customer is- internal or external- for own
services and products
q Demonstrates the ability to see issues from the customers
perspective
q Responds to customer requests and concerns promptly
q Considers every customer interaction important whether internal
or external
q Gives priority to delivering superior customer value in terms of
quality, cost and time
q Looks for ways to accommodate customer requests that are
exceptions to established norms but are consistent with the
principles of the organization
q Conceives new solutions / delivery mechanisms to meet
customer needs
q Develops and tracks objective and subjective dimensions of
customer satisfaction
q Interprets customer feedback with the internal team to improve
future value delivery

Proficiency Level 2

Ensures articulated customer needs are met

q Involves customer in decision making and choosing options
q Keeps customer informed about all important developments
q Goes the extra mile to ensure that customer needs are met.
q Deliver solutions that meet their existing needs
q Makes concrete attempts to add value to make things better
for the customer in some way

72 73
Achievement Orientation Analytical Ability

Competency definition Competency definition

Exhibits drive and energy towards achieving goals and results; Understands a situation by breaking it apart into smaller pieces
maintains and adheres to high performance standards and tracing the implication of a situation in a step by step causal
way

Proficiency Level 1
Takes responsibility for own performance
q Follows through to ensure successful completion of task
q Focuses on achieving goals and results, re-examines and
adjusts wherever necessary
q Conveys a sense of urgency and drives issues to closure;
persists despite obstacles
q Takes responsibility for driving his own performance by adhering
to work norms and striving to exceed his targets
q Uses available resources to meet desired results
Proficiency Level 2
Proficiency Level 1
Conduct basic analysis
q Break problems into simple lists of tasks or activities
Proficiency Level 2
Ability to use cause-effect relationships towards decisions
q Analyses relationships among a few parts of a problem or
situation
q Makes simple causal links (A causes B) or pro -and - con
decisions.
q Sets priorities for tasks in order of importance

Drives performance proactively and anticipates hurdles

Proficiency Level 3
q Ensures optimal allocation of resources (people, material, time)
towards the achievement of results Ability to conduct complex analysis and understand complex
q Identifies potential obstacles to achieving results and removes inter-relationships
obstacles q Analyses relationships among several parts of a problem or
q Takes numerous sustained actions over time in the face of situation.
obstacles to achieve goals q Breaks down a complex task into manageable parts in a
q Resolves conflicts to allow the team to focus on achieving results systematic way
q Recognises several likely causes of events or several
consequences of actions
q Generally anticipates obstacles and thinks ahead about next
steps

74 75
Decision Making Problem Solving

Competency definition Competency definition

Makes decisions, renders judgment, takes action or makes Visualises problems proactively; generates and evaluates
commitments after considering the available courses of action, alternatives to develop an appropriate course of action within
organizational priorities and value to others established constraints

Proficiency Level 1 Proficiency Level 1

Ability to take decisions of a routine nature Can view problems objectively and address
q Makes decisions based on the ethical principles of the q Approaches problems with curiosity and an open mind
organisation
q Doesn't get overwhelmed by seemingly complex situations
q Is able to take routine decisions in own work area
q Uses his/ her common sense and experience to identify
q Seeks inputs from others in order to make informed and problems
appropriate decisions
q Identifies and obtains information needed to understand and
q Determines when to take decisions versus escalating the same solve problems
q Assists superiors in making decisions by providing them the
requisite information
Proficiency Level 2
Proficiency Level 2 Can conduct effective diagnosis where required
Ability to take decisions on complex matters using complex q Diagnoses problems effectively
information q Adopts a structured hands on approach towards solving
q Determines when decisions outside the policy framework are problems
warranted and acts accordingly q Has presence of mind and can think on his/ her feet
q Takes ownership for decisions made Makes prompt and sound decisions when faced with problems
q Makes fact-based decisions/ recommendations
q Bases decisions on a logical analysis of information; derives
meaningful conclusions from facts available and by sorting
relevant information
q Learns from failures or poor judgement in the past

76 77
 Proficiency Level 3
Can resolve complex problem through effective prioritization
q Systematically gathers and analyses relevant information to plan
a course of action
q Generates and evaluates alternative methods of solving
problems to yield more effective results
q Finds ways to condense a large amount of information to a
useful form
q Effectively identifies and prioritises issues that need to be
addressed
q Thinks of creative alternatives to problems; encourages others
to think differently in the context
78
Negotiation Skills
Competency definition
Is able to get people or groups with differing/ opposing wishes or
views to reach a mutually satisfactory agreement
Proficiency Level 1
Ability to appreciate and work towards win-win solutions
q Is aware of the importance of negotiation and understands the
principles behind it
q Realises that winning at all costs is not important and a win-win
solution is most effective
q Argues persuasively
q Prepares well for every negotiation
Proficiency Level 2
Ability to use multiple approaches to achieve desired outcome
q Researches the interests of the other side and uses own
understanding to make position stronger
q Finds ways of gaining commercial intelligence about external
stakeholders, and researches both the organization and the
individual that he will be negotiating with
q Uses different approaches to achieve the desired objectives
79
Team Effectiveness
Competency Definition
Leads and works in teams as required by his role. Transcends
boundaries between various constituents of the team to motivate
them towards achieving the shared vision and team objectives
Proficiency Level 1
Effective team player
q Works effectively in a team, capitalizing on others' strengths
q Displays commitment to the team goals, placing the team's
interest above personal interest
Proficiency Level 2
Can leverage team synergies and also lead a team effectively
q Ensures that the work group functions effectively as a team,
coordinating efforts towards a common goal and rising above
individual differences.
q Achieves synergy by leveraging the strengths of different
individuals in the work group
q Helps to keep morale and levels of performance high even
during periods of intense pressure and heavy volumes of work
80
People Development
Competency Definition
Guides others towards positive outcomes by providing them with
clearly defined objectives, feedback and advancement
opportunities
Proficiency Level 1
Committed to development of others
q Provides ongoing feedback to colleagues, co-workers and
subordinates
q Takes action in transferring and sharing knowledge and
expertise
Proficiency Level 2
Strong conflict management skills and ability to provide
developmental direction
q Gives constructive feedback and direction that specifically
defines what actions were effective and what areas need
improvement
q Corrects unproductive behavior with action plans
q Deals with conflicts and sensitive situations in a manner that
helps everyone remain open minded
q Shares knowledge and develops subordinates, if any
q Makes recommendations on development opportunities for
workgroup members
81
Communication Skills Proficiency Level 3

Competency Definition Proactive approach, extensive use of non-verbal cues

Displays the ability to grasp and process information, and to q Uses active listening skills to understand non-verbal cues during
articulate thoughts and ideas to convey/ use information in an open, discussions
transparent and meaningful manner q Transfers ideas and opinions clearly and effectively through
various media by summarizing into key points what others can
easily understand
Proficiency Level 1
q Develops clear and logical arguments that can compel others
Clarity of oral and written communication to change or alter their opinion
q Verbally conveys information so that intended message is q Anticipates queries and prepares thoughtful responses
understood by others
q Develops written information that clearly and concisely conveys
information to reader
q Listens carefully and asks probing questions to obtain more
clarity

Proficiency Level 2

Ability to structure complex communication

q Presents and structures information (both written and verbal)
in a prioritised manner that is clear and easily understandable
q Adapts to different individuals and tailors communication style
accordingly
q Uses direct persuasion to achieve the desired result / action /
commitment from others

82 83
 Appendix II :
Frequently Asked
Questions
 Question: Who are the people covered in e PMS?
Answer: All officers in Grades A-I are covered in e PMS.
Question: When am I assigned my unique role?
Answer: Incumbents have been mapped to unique roles, any
significant change in the role (e.g. transfer), will require
assignment of a new role to you. This will be done by the
appropriate HR Facilitator/ Administrator.
Question: How have the KRAs and KPIs in my role been arrived
at?
Answer: The performance measures cascaded from IOCL's MOU
and business plans and strategies applicable to your
Divisions, Area/Department are decided by your Function/
Unit Head and cascaded to your Area/Department Head
These have been decided at workshops and verified by
functional experts. Inputs from sample role holders were
obtained across IOCL.
Question: When does the Performance Planning phase start?
Answer: The performance planning phase starts at the beginning
of the performance year. Going forward this would be in
the month of April. The concluding month would be notified
in each cycle.
Question: How do I set targets for the KPIs?
Answer: Following the current principles for target setting, use the
Stretch Tool to set targets at 5 levels of performance for
each KPI. .
Question: What is a quality index KPI?
Answer: For KRAs where you cannot measure clear outcomes in
an objective manner, you, along with your appraiser, may
evolve a quality index based on pre-defined parameters
and measurement scale.
Question: How and why do I choose Additional KRAs?

86 87
Answer: In case you find the KRAs allocated to your role
insufficient, from the list of KRAs provided in the search
option, you may select KRAs belonging to any division/
function/area/role, which you find critical and relevant to
you in the Performance Period.
Question: How and why do I write special KRAs?
Answer: If you feel that there are certain KRAs that are not a part
of either the role-based or additional list of KRAs but are
critical to your role in the Performance Period, write them
in the section of Special KRAs. Keep in mind that while
writing the KRA, the KPIs and targets are clearly defined.
Question: How many KRAs can I choose?
Answer: You can choose upto a maximum of 18 KRAs (12 Role-
based + Additional and 6 Special.) Typically a
performance plan should have 7-8 KRAs. The maximum
limit could be changed in subsequent performance cycles.
Question: How do I use the Stretch tool while setting my targets?
Answer: Define stretch on the 5 factors provided in the stretch
tool. The system will calculate the total stretch for each
KPI target. For each KPI in the performance plan, you
will write out targets at level 3 (target level) for 6 months
as well as a year. You will then define targets for four
other levels of performance (1,2,4 and 5) with level 5
being the most difficult performance. For the 12 months
target at level 3, you will use the stretch tool and choose
levels of stretch on each of the 5 factors provided in the
stretch tool. The system will then calculate the total stretch
for each KPI. This process would be repeated for each
KPI in the performance plan.
Question: Who ensures consistency in stretch in my team?
Answer: Your Appraiser and your Reviewer will ensure that the
degree of difficulty in targets is consistent across the team.
Question: How do I assign weights to KPIs?
88
Answer: When assigning weights keep in mind the criticality of
the KRA, and the nature of effort and time that would be
required to accomplish them. It is recommended that the
minimum weightage of any KPI should be 5%.
Question: What do I do if I do not agree with the changes that
my Appraiser has recommended in my Performance
Plan?
Answer: You need to have a discussion with your Appraiser and
resolve the situation. In case disagreement resolution is
not possible at your level, the matter would then be refered
to the Reviewer who would resolve the issue.
Question: How are performance measures cascaded?
Answer: Performance measures are cascaded, by identifing roles
that can impact the outome of the measure.
Question: What happens to my Performance Plan after I've
submitted it to my Appraiser?
Answer: After you have submitted your Performance Plan to your
Appraiser, he/she will have a discussion with you on the
plan and add his/her inputs to it. After finalising the plan
with you, your Appraiser will send it to your Reviewer
and countersigning officer for a final sign-off. It then
becomes your Performance Plan for the year.
Question: What happens if my Appriaser does not agree with
my plan in any way?
Answer: The Appraiser marks the plan for discussion and places
his comments in the space provided. You then have the
option to modify the plan and resubmit it. In case the
Appraiser still does not agree, he can refer the plan to
the Reviewer with comments. The decision of the
Reviewer will be final.
Question: Who can I approach to obtain agreement with my
Appraiser on a difference in point of view?
Answer: In most situations, your Appraiser will be able to resolve
89
 the difference in points of view. Your Appraiser may
approach your Reviewer for his intervention and decision.
If the situation requires, a three-party discussion may take
place between you, your Appraiser and Reviewer.
Question: Will my Appraiser be informed of changes that I make
on my plan?
Answer: You cannot make any change in your plan without the
Approval of your Appraiser and subsequently that of your
Reviwer
Question: When can I discuss any changes required in my
Performance Plan?
Answer: You can discuss the need for change in your
Performmance Plan with your Appraiser at any time during
the performance cycle, when significant changes are
required. Changing your Performance Plan requires prior
approval from your Appraiser and Reviewer. The modified
plan requires the Reviewer's sign-off for finalisation.
Question: Can I request for a new Unique role for my Appraisee?
Answer: If the available URRs cannot be mapped to your
Appraisee, you can request for the creation of a new
unique role through your HR Facilitator. However, this
would require necessary approvals.
Question: How do I know if my performance plan has been
approved?
Answer: Your e-PMS screen will indicate once the performance
plan has been approved. You will also get an email
message.
Question: How often can I go to my Appraiser for a formal or
informal discussion about my performance?
Answer: While a formal discussion on performance will take place
twice during the performance cycle, you are encouraged
to approach your Appraiser as many times as you feel is
90
required for the purpose of obtaining feedback.
Question: How will my efforts be tracked in this new system?
Answer: The system will not track your efforts, however it will record
your Performance.
Question: What do I do in case I have significant disagreement
on an issue with the Appraisee?
Answer: Your should try and resolve the disagreement between
yourselves. In case resolution is not possible at your level,
the matter would then be refered to the Reviewer who
would resolve the issue.
Question: What do I do if I do not agree with the ratings that my
Appraiser has given me at the end of the year?
Answer: Your Reviewer will intervene and will take a final view on
the ratings.
Question: What do I do if I get transfered in the middle of the
performance period?
Answer: If you get transferred in the middle of the Performance
Cycle, you need to close the Performance Period, thus
having a discussion with your Appraiser before moving
to your new role. When you move to you new role you
would need to do your Peformance planning for the
Performance Period that lies ahead. A minimum period
of 3 months in a role will be necessary for the performance
plan to be made, appraised and recorded in the e-PMS
system.
Question: What do I do if my Appraiser changes in the middle
of the performance period?
Answer: Change of Appraiser will not impact your Performance
Plan.
Question: Who gives my Final Score?
Answer: Your Final Score is the score given by the countersigning
91
 officer as per current practice.
Qusetion: Why is feedback so important in Performance
Management?
Answer: Feedback is very important as it tells the Appraisee how
he/she is performing and how performance can be
improved.
Question: Will my assigned unique role change every year?
Answer: Your assigned unique role will change only if your role
undergoes a significant change
Question: Do I have to write Special KRAs?
Answer: Not necessarily
Question: Do I have to choose Additional KRAs?
Answer: Not necessarily
Question: Do I have to choose all Role-based KRAs and KPIs?
Answer: Not necessarily
Question: Do I have to choose all assigned KPIs for a KRA?
Answer: No. But you will need to choose at least one KPI for each
KRA.
Question: Is there any change in the competencies/attributes
from the previous system?
Answer: Previously, competencies were level based. In the new
system these will be role based. However, potential
attributes will continue to be level based.
Question: Does a high proficiency level directly relate to my
level in the organization?
Answer: No, the required Proficiency Level on Competencies is
an outcome of the requirements of a role.
Question: How do I know if I have completed my Performance
Planning?
92
Answer: Your Performance Plan is complete if -
- Your Performance Plan has been discussed with your
Appraiser and targets and weightages have been
agreed upon
- You know how your performance will be measured at
the end of the year
- Your Appraiser & Reviewer have approved your Plan
Question: Does a formal discussion have to take place during
Mid Year Review?
Answer: Yes, the Mid Year Review is a formal discussion.
Question: Does my self-appraisal in anyway contribute to my
ratings?
Answer: No, however it provides you the opportunity to talk about
your performance.
Question: When does the Mid Year Review take place?
Answer: The Mid Year Review takes place in the month of October.
Question: How do I know if I have completed my Mid Year
Review?
Answer: Your session is complete if -
- You have completed your Self-Appraisal
- You have had a discussion with your Appraiser
- You have asked your Appraiser for feedback on your
performance plan
- You have documented the discussion
Question: When am I finally evaluated for the year?
Answer: Your are evaluated for the Performance Cycle during the
Final Review in the month of April.
Question: How do I know when my involvement in the Final
Review is complete?
93
Answer: Your session is complete if - Answer: Your self-assessment will be an opportunity for you to
share your perspective on your performance with your
- You have completed your Self-Appraisal
Appraiser. The Appraiser and subsequently the Reviewer
- Your Appraiser has evaluated your performance on will use this as an input for their decisions on ratings on
each KPI each element of the plan. The system will finally use the
- Your Appraiser has assessed your accomplishment Reviewer's ratings on each element to automatically
on your performance plan calculate the PMS Score.

- You have documented the discussion Question: How has the effect of Rater Bias been minimised in e
PMS?
- Your Appraiser has sent your form to the Reviewer for
validation Answer: While no rater is free of bias, the system has focused on
minimising the effect thereof and on increased objectivity
Question: How should I give feedback?
by
Answer: You can give feedback through the following-
- The cascade of organizational goals to individual goals
- Record significant activities/ achievements in the consistently, using the same process across IOCL
performance diary
- Use of Role templates to ensure clarity on performance
- Recognise good performance often measures
- Provide specific examples in your feedback messages - Use of the Stretch Tool while setting targets
- Provide timely feedback, both positive & corrective - Objective 5-point Rating Scale and setting Targets for
each of the 5 ratings on the Rating Scale for all KPIs
- Listen to the other person's viewpoints and ideas
- Reviewer's ratification of all Performance Plans at the
- Solicit as well as provide feedback
beginning of the performance cycle
- Catch performance problems early while they are
small
- Check to be sure clear communication has occurred
Question: What happens to my Mid Year Review session
documentation?
Answer: Your Mid Year Review session document will be used as
an input during your Final Review. Additionally, this
documentation will be useful for you to make any mid-
course correction.
Question: What happens to my self-assessment in Final Review
phase after I've submitted it to my Appraiser?

94 95
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