Dubai Municipality/Human Resources Department

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2 Table of Contents Introduction... Policy Description General Purpose Scope Definitions... Employee Performance Management Cycle Performance Planning Performance Review Performance Assessment Performance Reward... Maintaining Performance Objectives Probationary Employees Change of Responsibilities Change of Manager... Managing Under-performance... Grievance and Appeal... Roles and Responsibilities Department Director Reviewing Manager Manager Employee Human Resources Government Strategic Human Resources Management... Employee Performance Management System Monitoring and Evaluation... Critical Success Factors Management Commitment and Support Training on Employee Performance Management System Alignment of Objectives Consistency of Treatment... Maintenance of Records List of Appendices Appendix A Appendix B Appendix C Appendix D Frequently Asked Questions Dos and Don ts of the Performance Review/Appraisal Meetings.. Common Raters Pitfalls to Avoid Examples on how to fulfill a form of IPP

3 1. Introduction: One of the aims of the Dubai Strategic Plan 2015 is to achieve Government Excellence by strengthening its strategic and forward looking focus and empowering and motivating employees. The use of an employee performance management system is an important mechanism to achieve this objective. It has also been identified as one of the key systems which need to be in place in order to create a high performance culture. This is vital to the Government s success. Employee performance management provides a means to improve organizational performance by linking and aligning individual, team and organizational objectives. It also provides a means to recognize and reward good performance and manage underperformance. This policy reflects the feedback received through an extensive consultation process as well as benchmarking activities. These were solidified by benchmarking against multinationals as well as government organizations around the world. This document is designed for the government organizations in Dubai to assist them in the management of employees performance. 2. Policy Description: 2.1 General Each government organization can customize the Performance Appraisal and Feedback form by selecting the competencies that are appropriate to the job/category of jobs, its strategy and values. However, it is important to ensure the following: Selected format includes between 6 to 8 competencies The competencies are selected from Dubai Government Behavioral Competency Framework. The Human Resources (HR) department in each organization will be responsible for developing the form in consultation with the Department Directors. It is to be noted here that in organizations that have a functional/technical competency framework, competencies will be assigned from both categories i.e. the behavioral and functional/technical. 3

4 2.2 Purpose The purposes of the employee performance management system are to: Foster a performance oriented culture where the individual employee s work is aligned with the strategic directions of the organization Create an environment where progression and reward are based on merit Clarify performance expectations Encourage regular and constructive communication and dialogue between managers and employees Enhance continuous learning and development Provide an equitable and fair framework for evaluating employees performance Acknowledge individual work contributions Identify and rectify underperformance at an early stage Increase job satisfaction, productivity and commitment as employees feel that their work is recognized and valued Focus on accountabilities 2.3 Scope This policy covers all employees in bands. 2.4 Definitions Objectives What the employee must achieve in the coming performance cycle. They must be written according to SMART criteria (Specific, Measurable, Agreed, Realistic and Time-bound). Competencies Describe the ways in which employees are expected to behave if they are to carry out their roles effectively. Manager The individual who plans and reviews the performance of an employee. Reviewing Manager The individual who verifies the performance plans and reviews done by other managers to ensure equity and consistency. This individual is usually at a higher level in the organization s hierarchy. 4

5 Individual Performance Plan (IPP) The working document that should be actively used throughout the year. It covers all the components of the employee performance management process and is jointly owned by the employee and his/her manager. Performance Improvement Plan (PIP) The short-term action plan that is initiated when an employee s performance does not meet expectations and whose objective is to improve performance of the latter party. Coaching and Feedback This is an ongoing process whereby managers guide or facilitate the continuous improvement of an employee s performance. It includes timely and constructive feedback, recognition, support for learning and development and assisting the employee with self- awareness. 3. Employee Performance Management Cycle: The employee performance management cycle within the Government of Dubai focuses on: 1) The desired results required by all employees 2) The behaviors which all employees need to display in order to achieve these results 3) Development of employees. In essence, it is about the what and the how which will lead to success within the government organizations. The cycle of employee performance management is ongoing throughout the year. In addition to setting objectives and competencies at the beginning of the year, the cycle focuses on a number of interim steps including the mid-cycle review discussion and the end-of-cycle performance appraisal. Review discussions during the cycle can take place more often e.g. on a quarterly basis. However, to ensure that there are no surprises at the end-of-cycle appraisal, a mid-cycle review is mandatory. 5

6 Determine reward Determine learning and development needs Determine Potential/Promotion Rewarding Planning Organization strategy Strategy communication to support cascading of objectives Development of Assessing Reviewing End- of-cycle performance appraisal Assess performance against planned competencies and objectives Ongoing performance feedback Optional quarterly review Mid-cycle performance The key stages in the employee performance management cycle should also take place at certain times each year. The timeline below shows these key areas: Example for 2008/2009 cycle: Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec * Completion of 2008 appraisals by end of February * Planning of 2009 SMART objectives and competenci es by end of February * Completion of 2008 Appraisals * Completion Of 2009 SMART objectives and competencies * Confirmation of increments and performance bonuses for eligible employees (for 2008 assessment) Coaching & Feedback * Payment of increments and performance bonuses for eligible employees (for 2008 assessment) 2009 Mid- Cycle Reviews 2009 Mid- Cycle Reviews Coaching & Feedback 6

7 3.1 Performance Planning Stage 1 of the employee performance management cycle is the planning stage. This will take place at the beginning of each year. The primary purpose of this stage is to cascade organizational objectives to the individual level. The communication of the mission, strategy and values of the organization to everyone at every level is crucial. Everyone should understand how his/her performance contributes to the overall success of the organization. The diagram below illustrates in a simple way how objectives are cascaded to the individual level. Organization Strategy Department Key Performance Indicators (KPI s) Individual Objectives During the month of December, the Department Director and the Section Managers will meet together to review their plans for the coming year in order to: Ensure alignment to the organization strategy Verify possible inter-section contradictions Discuss department level resourcing issues and priorities Strategic/Corporate Planning department will facilitate these meetings. HR could be a participant During the last week of December, the HR department will send an to managers and employees to inform them of the start of the individual performance planning phase (including a reminder of the related procedure and completion date) During the first week of January, the Department Director will meet with the managers to agree on the individual objectives of each one of them The manager will communicate the strategic plans, department s KPI s as well as his/her own annual objectives to his/her employees. 7

8 3.1.5 Keeping in mind the employee s job description/responsibilities, the manager and/or employee will develop a first draft of the objectives. These should be built around the following: Stakeholder Perspective: How will the employee make a difference to the stakeholder by delivering consistently excellent and rewarding service both externally and internally? Financial Perspective: How will the employee add value to stakeholders while containing costs? Internal Process Perspective: How will the employee improve productivity, quality and speed of service? Each department needs to determine who- i.e. employee or manager- should be responsible for completing the first draft of objectives. [Please refer to scenario 1 on page (12) if the manager completes it or scenario 2 on page (13) if the employee completes it]. Each objective should be developed according to S.M.A.R.T criteria, as follows: (S = Specific): Each objective should be written in a way that does not leave room for confusion about what should be achieved. For instance, a vaguely stated objective would be Prepare reports. More details should be added so that the employee knows what is expected of him/her as such: Write monthly reports concerning progress and budgetary status of active contracts. (M = Measurable): Objectives become measurable when performance standards are added. Objectives developed with a measure will be easier to monitor and, as a result, it will be clearer to identify when the objective has been achieved. These measures include the following: Impact: refers to attainment of a standard (quality, level of service etc), changes in behavior (internal and external customers) or innovation. Such measures can, for example, include error rates (such as the number or percentage of errors allowable per unit of work) and customer satisfaction rates (determined through a customer survey). Example: 80% score in customer satisfaction to be achieved by the end of the first quarter and maintained throughout Quantity: addresses how much work the employee or work unit produced/ processed or services provided. Example: 95% of complaints to be resolved within 3 days of report by customer to be achieved by end of the 1st quarter and maintained throughout

9 Timeliness: addresses speed of response or turnaround, achievements compared with timetables, amount of backlog or delivery times. Example: By the end of January 2008, all employees in band 3 and above should have SMART performance objectives. Cost-effectiveness: refers to savings or cost control for the Government. These may include such aspects of performance as maintaining or reducing unit costs, reducing the time it takes to produce or provide a service/product or reducing waste. Example: By the end of 2008, reduce annual recruitment consultancy fees by 20% That said, when developing specific measures, it is important to first determine the general measure/s that are important for each element (i.e. impact, quantity, quality, timeliness or cost-effectiveness). Then identify how to measure the quantity, impact, timeliness and/or cost-effectiveness for the element. If an accomplishment could be measured with numbers, record the form of measurement. A system must exist or be developed to ensure that quantity standards can be accurately tracked and measured. On the other hand, if a performance could only be described (i.e. observe and verify), clarify who will appraise the performance and the factors they will be appraise. Below are examples of measurement tools: Customer Satisfaction Survey Employee Satisfaction Survey/ Engagement Survey Dubai Government Excellence Program (A = Agreed): Both the manager and employee should agree on the set objectives (R= Realistic): Objectives should generally be a stretch to encourage challenge and growth while also being attainable to avoid frustration. (T = Time-bound): Each objective should have a timeframe for completion e.g. monthly, quarterly, semi-annually review dates. 9

10 While objective setting, ensure that: Objectives are vertically aligned with the organization strategy and horizontally with other colleagues where joint efforts are required Each employee has between 3-5 objectives for the year. Objectives should focus on the few but key priorities of an employee s job while covering the full scope of his/her job. Objectives focus on outputs and results rather than inputs and activities. For example, Develops a software program is an activity while Develops a software program that meets requirements and works effectively is an objective that focuses on results Once the objectives are written down, the manager and /or employee will assign a weight to each objective using a % figure at the beginning of the year and the overall weightings should total 100%. The weighting should be determined by the importance of the objective The manager and/or employee will then fill in the objectives under section 1 of the IPP document. (Please refer to related form in Appendix D) The manager will complete Areas for development under section 3. They will also complete the development action plan for achieving each development objective under section 5 of the IPP. The latter section is optional The manager will meet with each of his/her employees to agree on the objectives and competencies. The latter will be extracted from Dubai Government behavioral competency framework. During the meeting, the manager will clarify the behavioral indicators that will be used in assessing each competency. Additionally, they will explain to the employee how the objectives and competencies will be balanced in reaching an overall performance rating. The objectives and competencies represent 70% and 30% respectively of the overall performance rating. It is to be noted here that in organizations that have functional/technical competencies, the manager will assign three competencies for each of the categories i.e. the behavioral and functional/technical The manager will send the IPP to the reviewing manager who is responsible for ensuring equity and consistency with the department s objectives. 10

11 Once agreed by the reviewing manager, both the employee and the manager will sign it off (section 4). The original performance plan will be retained with the manager for continuous feedback and use at mid and end-of-cycle appraisal, with copies given to the employee and HR department for reference during the performance period Both managers and employees should maintain performance files to record performance incidents/data throughout the year. There is no required format for documentation. The content of documentation needs to be appropriate to support descriptive statements of actual performance that include information that is specific, job related and behavior based. This information could be used during the mid/end-of-cycle discussions The manager and employee will agree on the developmental needs and ways in which those needs can be met. The latter may include attendance at internal or external training sessions or seminars as well as activities such as job rotations or on the on-the-job experiences. The manager should complete section 5 of the Performance Appraisal and Feedback form. He/She will also complete the action plan for achieving the development objective/s under section 1 of said form. The latter section is optional. (Please refer to related form in Appendix D) The signature of the employee indicates only that the discussion has taken place and not that there is agreement with content. 11

12 Performance Planning Overview Scenario 1 HR Manager Employee Reviewing Manager Notify managers and employees to start the process Meet with his/her employees to share organization and department plans as well as own objectives Prepare first draft of employee's objectives Contribute Assign a weight to each objective Total = 100% Contribute Complete section 1of the Individual Performance Plan (IPP) Contribute Complete Areas for Development under section 3 of the IPP and development action plan under section 5. The latter is optional. Contribute Meet with each employee to agree on objectives & competencies. Extract the latter from Dubai Government Behavioral Competency Framework Send completed IPP to reviewing manager for approval Sign off Yes Sign the IPP and send it to employee to sign Sign, retain a copy for him/herself and HR and send original manager original No Keep Copy Keep Copy Maintain performance file for each employee Maintain performance file 12

13 Performance Planning Overview - Scenario 2 HR Employee Manager Reviewing Manager Notify managers and employees to start the process Prepare first draft of employee's objectives Assign a weight to each objective Total = 100% Meet with his/her employees to share organization and department plans as well as own objectives Contribute Complete section 1of the Individual Performance Plan (IPP) Contribute Complete Areas for Development under section 3 of the IPP and development action plan under section 5. The latter is optional. Contribute Meet with each employee to agree on objectives & competencies. Extract the latter from Dubai Government Behavioral Competency Framework Send completed IPP to reviewing manager for approval Sign off Yes No Keep copy Sign the IPP, keep a copy for him/ herself and HR and send original to his/her manager Sign the IPP and send it to employee to sign it Maintain performance file Keep copy Maintain performance file for each employee 13

14 3.2 Performance Review Stage 2 of the employee performance management cycle is focused on performance review Managers should continuously coach and provide feedback to their staff on those aspects of performance that are done well and those that need improvement. The amount of time that elapses between coaching sessions can be irregular but should be frequent During the first week of June, the HR department will send an to managers and employees to inform them of the beginning of this stage along with the related procedure and completion date At mid-cycle (June - July), a performance review meeting will take place. It is a joint discussion between the manager and employee to: Review progress towards meeting the objectives and competencies for bands 3 and above and performance expectations for user bands Change/modify any of the objectives if they become unrealistic or if there is a shift in the strategy (This should not be done to protect any employee from poor performance) Identify problems early so they can be corrected as soon as possible Review employee learning and development needs While the objective setting follows a top-down approach, the review process follows a bottom-up approach. Managers should complete the reviews of all their employees before they sit for their review with their respective managers. At least 3 working days before the meeting, the employee must send his/her rating of each objective and competency to the manager. 14

15 3.2.6 During the meeting, the manager must: Rate each objective (section 1 of the IPP) using the applicable 1 4 rating scale. This is not used in the calculation of end-of- cycle rating. Any changes in the objectives should be noted on the form and signed off by the Department Director. Rate each competency (section 2 of the IPP) using the relevant 1 4 rating scale. This is not used in the calculation of end-of- cycle rating. Make comments and sign off (section 4) Send the completed form to the employee to make comments and sign it Forward this form to the reviewing manager for sign-off Keep the original copy and send a copy to employee and HR department The signature of the employee indicates only that the discussion has taken place and not that there is agreement with content. 15

16 Performance Review Overview HR Manager Employee Reviewing Manager Inform managers and employees to start this phase Meet each employee to review progress Send his/her rating of each objective and competency to the manager Rate each objective (section 1 of the IPP) Contribute Rate each competency (section 2 of the IPP) Contribute Make comments and sign under section 4 Send the completed IPP to employee to make comments and sign Send to reviewing manager for signoff Sign off Yes No Sign off Yes No Keep copy Keep original and distribute a copy to employee & HR Keep copy 16

17 3.3 Perfprmance Assessment Stage 3 of the employee performance management cycle is the assessing stage. This is the formal time when the end-of-cycle (January - February) performance appraisal meeting is held between the manager and each of his/her employees to evaluate overall performance. The HR department will send an to managers and employees to notify them of the beginning of this stage along with the related procedure and completion date During the month of January, Strategic/Corporate Planning department will meet with the Director General to discuss the achievements of each department in the organization. Depending on each department s performance, the Director General can award a higher distribution of ratings to one department as long as the overall distribution of the organization lies within the set performance rating parameters. These will be assigned by The Executive Council (TEC) based on the performance of the organization vs. the set KPI s The Director General will inform the Department Directors of the assigned performance rating distributions in their respective areas. They will share this information with HR The Department Directors will discuss the distributions with each manager In preparation to the appraisal meeting, the manager will: Review the employee s performance file and mid-cycle review notes Rate performance vs. individual objectives and competencies Calculate overall rating Consider contributing factors vs. performance Involve reviewing manager to ensure that ratings are appropriate and consistent Agree on logistics -agree date, time and place for meeting with employee (Give sufficient warning - preparation time; one week minimum) The employee will: Review his/her own performance file and mid-cycle review notes Rate performance vs. individual objectives and competencies Send the objectives and competencies ratings to their manager at least 3 working days before the meeting Consider points important for discussion with manager 17

18 3.3.5 During the meeting, the manager will: Discuss objectives and competencies one by one - invite the employee to start the assessment review Discuss the competencies one by one - invite the employee to start the assessment review Ask lots of questions and get clarification to ensure understanding of the employee s point of view Discuss both what was achieved AND how it was achieved Seek proposals for resolving problems. Focus on future performance and ensure that the employee takes responsibility for improvement Give positive recognition for performance that reinforces the goals of the section/department Discuss any matters of concern Identify learning and development needs for next cycle Provide overall assessment Conclude on a positive note After the meeting, the manager will: Complete, sign off and finalize all IPP documentation (For details on calculating the overall performance rating, please refer to point 3.3.7) Send the completed form to the employee to make any comments they might want to add and sign it Forward the form after receiving it from the employee to the reviewing manager who will verify the information in the document, sign it and send back to him/her Retain the original copy and send a copy to the employee and HR department Ensure transition of learning and development needs to new IPP End- of-cycle rating Performance Rating Scale 18

19 Each objective should be rated using the following 1 4 rating scale: Rating 4: Substantially Exceeds Expectations Far exceeds performance expectations Far exceeds the expectations in key objectives Accomplishes more than expected Completes projects effectively and ahead of schedule Embodies and models the organization values at all times and inspires and encourages others to do likewise Rating 3: Exceeds Expectations Usually exceeds performance expectations Exceeds the expectations in key objectives Usually completes work effectively and in a timely manner Takes initiative in asking for additional responsibility Consistently upholds and promotes the organization values Rating 2: Meets Expectations Meets all performance expectations and may occasionally exceed expectations Meets expectations in all areas of performance and exceeds expectations in a few Demonstrates effective performance and is fully qualified to perform his/her job Consistently performs in a reliable manner Generally upholds the organization values Rating 1: Below Expectations Meets most but falls below performance expectations in some areas Falls below expectations in some areas of performance Often requires assistance from managers and /or peers Requires a degree of improvement to measure up to the job standards of his/her department At times the employee has not upheld the organization values 19

20 Each competency should be rated using the 1 4 rating scale thereof: Rating 4 = Substantially Exceeds Expectations: The employee always masters all the required behaviors in any kind of situation and context with great effectiveness and impact; may be considered a role model. Rating 3 = Exceeds Expectations: The employee displays all the required behaviors with frequency, intensity and effectiveness in different situations and with different people. Rating 2 = Meets Expectations: The employee displays the behaviors required and performs them autonomously in his/her own context or in well-known situations. Rating 1 = Below Expectations: The employee displays some of the behaviors required by the level but not on a consistent basis or with efficacy. 20

21 Calculating the Overall Performance Rating a) Section 1 The manager should complete the rating of each objective on the IPP under column 2 The weighted rating (column 3) is produced by multiplying the weighting (column 1) by the rating (column 2). As for the overall performance rating, it is the sum of the weighted ratings Example: Weighting (at the beginning of cycle) Rating At end-of-cycle Weighted Rating at end of-cycle (weighting by rating) Objective 1 30% Objective 2 10% Objective 3 20% Objective 4 30% Objective 5 10% Overall Performance Rating Weighting (1) x by Rating (2) % = (3) b) Section 2 The manager should complete the rating of each competency. The overall rating is the average of the ratings of the competencies. Example: Level Rating at Mid cycle Rating at End of cycle Competency Competency Competency Competency Competency Competency Overall Performance Rating (sum of the ratings of the competencies number of competencies = 1)

22 c) Overall performance level The overall performance rating is equal to the sum of 70% for objectives and 30% for competencies. If the overall rating has a decimal that ranges between 0.1 and 0.49, then it would be rounded down e.g. 3.2 will be 3. However, if the decimal is between 0.5 and 0.99, the overall performance rating would be rounded up e.g. 3.6 will be 4. In the above example, the overall performance rating is calculated as follows: Overall rating of objectives: 3.6 x 70% = 2.52 Overall rating of competencies: 3 x 30% = 0.9 Overall performance rating = 3.42 Since the decimal ranges between 0.1 and 0.49, the overall performance rating will be rounded down to 3. d) The final Overall Performance Rating should be confirmed under section 4 of the IPP. e) In case an employee receives an overall performance rating of Substantially Exceeds Expectations, the manager should include additional comments verifying the same Validation When all performance assessments are finalized, managers have the responsibility of ensuring that ratings for their total staff fall within the percentage parameters assigned to each rating level within their section. This information is then forwarded to the Department Director who completes a statistical profile of assessments for all staff in his/her area. If the profiles exceed the performance rating parameters, the Director will determine the final rating. In this case the Director will take into account individual performance and relativities of performance across the department. Prior to linking the outcome of the employee performance management process to other HR processes, the HR department will review all the performance ratings to ensure that the managers have conformed to the set distribution. The signature of the employee indicates only that the discussion has taken place and not that there is agreement with content. 22

23 Performance Review Overview HR Manager Employee Reviewing Manager Inform managers and employees to start the process Prepare for the meeting with employee Prepare for the meeting Meet employee to discuss objectives, competencies & development goals vs. achievement Send objective & competencies ratings to manager before the meeting Complete IPP, sign and send to employee to make comments and sign Make comments & sign off Yes No Send signed IPP to reviewing manager for sign- off Sign off Yes No Keep copy Keep original and distribute a copy to employee & HR Keep copy Ensure transition of learning and development areas to new IPP form 23

24 3.4 Performance Reward Stage 4 of the employee performance management cycle is the final stage. This stage focuses on linking the outcome of the performance evaluation to other HR processes. These include reward, recognition, promotion as well as learning and development of the employee. The different sections are grouped, as follows: Reward The agreed overall performance rating (1 4) is the most important input into decisions of reward for all employees. Reward is delivered in a way that drives and reinforces a high performance culture striking a balance between fixed and variable compensation; monetary and non-monetary as stipulated in the Reward and Recognition policy. It is to be noted that merit increments and bonuses will be determined in March and payment will take place in April. The increment will be effective from January 1st Merit Increment To be eligible for an annual merit increment, the employee must receive an overall performance rating of at least Meets Expectations. Payments will be distributed as follows: Performance Rating Percent of Staff* Percentage increase Substantially Exceeds Expectations X% 10 % of basic salary Exceeds Expectations X% 7 % of basic salary Meets Expectations X% 5 % of basic salary Below Expectations X% Not eligible *As per the guidelines and performance rating parameters set by TEC. The following limitations apply: The employee who is at or above the pay grade maximum salary for his/her position is not eligible for merit increment Merit increment for the employee who is near the pay grade maximum can only be granted up to the pay grade maximum 24

25 In the above cases, the employee should be awarded a lump sum payment which will not be added to the monthly salary, as follows: Performance Rating Substantially Exceeds Expectations Exceeds Expectations Meets Expectations Below Expectations Lump sum amount 10 % of annual basic salary 7 % of annual basic salary 5 % of annual basic salary Not eligible Employees whose monthly salary is near the pay grade maximum can receive merit increment to the top of the pay grade and a lump sum reduced by the amount received as a merit increment. Example: If: Employee s grade = 6 Monthly salary = AED 7,700 Performance rating = Exceeds expectations Pay grade maximum salary = AED 7,868 Then: Basic salary = 7,700 x 50% = 3,850 Merit increment = 3,850 x 7% = The difference between pay grade maximum and current salary = 168 In this case, the employee will receive a merit increment of AED 168 per month The difference will be paid as a lump sum which is equivalent to AED 1,218 [( ) x 12] Another Example: If: Employee s grade = 14 Monthly salary = AED 29,500 Pay grade maximum salary = AED 29,783 Performance rating = Exceeds expectations 25

26 Then: Basic salary = 29,500 x 50% = 14,750 Merit increment = 14,750 x 7% = 1,032.5 The difference between pay grade maximum and current salary = 283 In this case, the employee will receive a merit increment of AED 283 per month The difference will be paid as a lump sum which is equivalent to AED 8,994 [(1, ) x 12] Merit Increment for Resigned Employees Employees who have resigned or are serving their resignation notice period are not eligible for a merit increment irrespective of their performance rating Performance Bonus Bonus payment depends on the employee s performance as well as the performance of the department, the organization and the Government as a whole. Only staff whose overall performance rating is at least Meets Expectations will be eligible for a performance bonus. Payments will be distributed as per the below table: Performance Rating Percent of Staff* Bonus Amount* Substantially Exceeds Expectations Up to X% TBD Exceeds Expectations Up to X% TBD Meets Expectations Up to X% TBD *As per the guidelines and performance rating parameters set by TEC Performance Bonus for Resigned Employees Employees who have resigned or are serving their resignation notice period are not eligible for a performance bonus irrespective of their performance rating Recognition Managers are encouraged to recognize incidents of employee performance that are truly outstanding. This should take place as close as possible to the time of occurrence of the incident. It could be monetary or nonmonetary Monetary Reward Organizations may provide rewards to employees throughout the year (e.g. a spot reward). 26

27 Eligibility Employees at all levels are eligible for a spot reward Criteria Granting this reward should be based on outstanding achievements such as: Demonstration of evidence of a special one-time contribution of measurable significance to the department s strategic plans Demonstration of extraordinary creativity, innovation, cost savings or improvements that enhance department/ section efficiency or service to clients Overcoming formidable obstacles Amount The amount of the reward should commensurate with the value of the specific achievement. However, individual rewards should not exceed one month s basic salary. There is no maximum limit on the number of rewards an employee may receive Procedure To maximize the impact of the reward, the recommendation should be made within one month of the event at the latest The concerned manager will forward their recommendation, which should include the rationale for the reward, to the Department Director for approval. The former should discuss the recommendation with their manager prior to sending it to the Department Director, if not the same individual If approved, the Department Director will send it to HR department Within 5 working days, the HR department will issue an appreciation letter and forward it to the Department Director for his/her signature. They will also ensure that payment will take place in the same month s payroll The reward should be publicized at least within the department. This could be done by presenting the reward and appreciation letter during a staff meeting 27

28 Non-monetary Reward Organizations may apply a number of non-monetary recognition rewards. Each organization can design its own policy and procedure to meet its needs. The following aspects could be considered when establishing the policy: 1. Clearly identify what you want to reward, such as: Performance over and above job requirements Contribution to team effectiveness Excellence in customer service Exemplary practice of the organization s values 2. How will you foster informal and formal recognition and reward? Encourage managers and peers to say thank-you - one of the easiest recognition tools Encourage informal recognition on the job, at meetings, etc. Establish formal recognition programs 3. Determine the most effective types of non-monetary recognition and reward. Recognition could include any of the following: - A simple thank-you - Plaque - Gift voucher - Letter of appreciation - Lunch with the Director General - Recognizing good performers as Employee of the Month/Year - Nominations for awards of Dubai Government Excellence Program Establish a budget for rewards Establish reward nomination, decision making process, the documentation required and process timelines 28

29 3.4.3 Promotion There are two types of promotions: Elevation to a higher grade Promotions may be long term rewards that recognize employee s professional growth and capacity to contribute to the organization in a new role. Promotion recommendations need not be linked in terms of timing to the performance appraisal exercise. A manager can submit a promotion recommendation on an ongoing basis as and when any of the following is applicable: There is a vacant position Current position has been re-evaluated to a higher-grade position due to restructuring or to a redistribution of duties and responsibilities A new higher-grade position has been created as a result of restructuring Individual Performance Plan Competency Results Eligibility criteria The employee has: Achieved a minimum performance rating of Exceeds Expectations The potential to handle higher/wider responsibilities Completed the minimum period required in the band, as follows: Band 5 4 years Band 4 3 years Other bands 2 years On the other hand, Director Generals may exceptionally promote distinguished employees to a position higher by two grades. However, employees are eligible for such a promotion only after 4 years of any previous one. Salary alignment on promotion could be either: Standard: In this case, the employee will receive 10% increase on their total salary as long as it does not exceed the maximum of their new grade salary range. Also, one year should elapse before the employee is eligible for another standard promotion. 29

30 Special: The employee will receive 20% increase on their total salary. However, the latter should not exceed the maximum of their new grade salary range. Also, four years should elapse before an employee is eligible for another special increase upon promotion. After consultation with the reviewing manager, the concerned manager will send their promotion proposal to the Department Director for approval. It should detail how the employee is the best fit for the job in terms of job knowledge, skills and competencies. If approved, the Department Director will send it to HR department. HR will prepare a letter communicating the promotion. It will be signed by the Department Director Financial Promotion A financial promotion is an ongoing salary increase given when a department wants to retain a high performing employee but an elevation to a higher grade is not possible. To be eligible for a financial promotion, the employee must receive an overall performance rating of at least Exceeds Expectations. Financial promotion could be either: Standard: In this case, the employee will receive 10% increase on their total salary as long as it does not exceed the maximum of their grade salary range. Also, one year should elapse before the employee is eligible for another standard financial promotion or Exceptional: The employee will receive 20% increase on the total salary. However, the latter should not exceed the maximum of their grade salary range. Additionally, four years should elapse before the employee is eligible for another exceptional financial promotion. After consultation with the reviewing manager, the concerned manager will send their promotion proposal to the Department Director for approval. It should detail the rationale for the promotion. If approved, the Department Director will send it to HR department. HR will prepare a letter communicating the promotion. It will be signed by the Department Director. It is important to note the following: None of the above promotions could be granted to an employee at the same time and/or same year Upon promotion, seniority should not be considered unless performance appraisals are identical Promotion should not be retroactive Learning and Development The employee performance management process encourages the development of employees. The process provides an excellent opportunity to identify learning and development needs. These should focus on both 30

31 the employee s current and future roles. Developing employees is more than just training them. Developing activities include, amongst others, involvement in meetings, attachment to other sections either within the department or another department within the organization or another organization, coaching, mentoring, assignments, projects, e-learning and job rotations. More details are available in the "Learning and Development policy". The HR department will record all learning and development information for the purpose of developing a learning and development plan for the organization. 4. Maintaining Performance Objectives: When employees move into or out of their positions or there is a change of manager, relevant performance information should be communicated in a timely manner. 4.1 Probationary Employees A probationary employee should have an IPP within 30 calendar days from date of employment. Upon completion of his/her probationary period, he/she will have an interim performance appraisal. The manager should complete the related probationary review form. If their employment has been confirmed, the employee will be appraised as part of current year s appraisal cycle. Employees should complete at least 6 months in service to be eligible for an annual increment and performance bonus. These will be prorated as per their performance rating. As for those who have not completed 6 months in service, they will only be eligible for the recognition program. 4.2 Change of Responsibilities An employee whose responsibilities and duties have changed either during their current posting or by transfer to another position (lateral, promotion or demotion) will have a new IPP. Within 30 calendar days of the new assignment, the new manager and employee will agree on objectives and competencies for the remaining period. The releasing manager is responsible for initiating and completing the performance appraisal for the period the employee used to report to him/her if the employee has spent at least 90 calendar days in this position. The manager will: a) Conduct the performance appraisal with the employee prior to the employee s last day of work for the period he/she spent in this position b) Forward the signed IPP to the employee s new manager (The steps detailed under point no. 3.3 should be followed here) 31

32 In case the employee moves to another organization, HR in the releasing organization will send a copy of the signed IPP to HR in the new organization. 4.3 Change of Manager If the manager leaves his/her position after at least 90 calendar days of an employee s performance cycle, he/she will complete an interim performance appraisal for that period. The reviewing manager will ensure that the evaluation documentation is available to the new manager. 5. Managing Under-performance: At any time in the performance cycle that a manager finds that the employee is not meeting the performance expectations of their position and when they are assigned an annual performance rating of 1, it is important that they take the necessary steps to help the employee improve. If the latter s performance does not improve, appropriate action needs to be taken by the manager. The key advice is always to involve HR in discussions before embarking upon a course of action to deal with poor performance. Below are the steps that the manager can initiate: Step 1: Identify and agree the problem with the employee Step 2: Establish the reason/s behind the shortfall in performance while first acknowledging the factors that are not within the employee s control. The causes of poor performance could be because the employee: Did not receive adequate guidance from their manager Was not fully clear about expectations Could not do it - ability Did not know how to do it - skill Would not do it - attitude Is facing personal difficulties or medical problems 32

33 Step 3: Decide and agree on the required actions. These could be: Changing behavior: this depends on whether the employee accepts that he/she needs to alter their behavior Clarifying expectations: job objectives and standards Developing abilities and skills Changing attitudes this is more difficult to change than behavioral pattern as it is deep-rooted. It is best to change behavior first and encourage attitude changes at a later stage Giving the employee appropriate opportunities to deal with personal/medical problems Step 4: Complete the PIP. The employee should be warned of the consequences of not improving and given a period of 4 months before either a reassignment to another position one grade less or termination is considered. (Please refer to the relevant form in Appendix D) Step 5: Provide the required resources in terms of training (classroom and on-the-job), coaching and guidance to enable required actions to take place. Step 6: Follow up: Take steps to monitor performance on a monthly basis, provide feedback and agree on any further actions that may be necessary. The manager should document progress reviews. This documentation must demonstrate that the employee was provided necessary training and coaching and that the manager has clarified the assignments and explained what was needed to be done. Step 7: At the completion of the improvement period, the manager should: Involve the reviewing manager and the Department Director, if different, in the rating Meet with the employee to review and determine whether they have met the requirements for improvement Send the completed form to the employee to sign it and include any comments the latter might want to suggest Forward the signed copy to the reviewing manager for their comments and signature Keep a copy and send one to the employee Send a copy to the Performance Review Committee if the employee s performance does not improve to at least Meets Expectations The committee will comprise of the Deputy or Assistant Director General - to be appointed by the Director General - HR Director and Head of Legal department. The committee will meet within 10 working days of the receipt of the aforementioned document. They may convene a hearing to investigate. 33

34 Within 4 weeks, the committee will determine whether the employee will be demoted by one grade or terminated. HR will prepare a letter communicating the decision. It should be signed by the Director General. The employee should be given 10 working days written notice of the decision. Within this period, the employee could appeal to a central specialized authority determined by the Government for this purpose. Otherwise, the decision of the Performance Review Committee will be considered final and binding on all parties. 6. Grievance and Appeal: The Government is committed to the fair and impartial treatment of all of its employees. The grievance and appeal process describes the steps the employee could take to raise matters stemming from the implementation of the employee performance management process except for his/her salary and grade: a) The employee must first attempt to resolve the grievance through discussions with their manager within 5 working days from the date of receipt of action being grieved. b) If no agreement has been reached, the employee can then send a written grievance to their reviewing manager with 5 working days. The reviewing manager should provide the employee with a written response within 10 working days of receiving the referral and send a copy to the concerned manager. They should involve the Department Director, if not the same individual. c) If the employee is dissatisfied with the reply, they could forward a written grievance to the Grievance and Complaints Committee in their organization within 5 working days from the date of their acknowledgement of the reviewing manager s response. d) The Committee is required to send a written reply to the employee within 4 weeks. The employee may appeal against the decision issued by the Grievance and Complaints Committee to a central specialized authority determined by the Government for this purpose. The appeal must be submitted within a period not exceeding 10 working days of the decision date; otherwise, the decision of the Grievance and Complaints Committee will be considered final and binding on all parties. 34