1. EMPLOYEE PERFORMANCE
PROGRAM PROPOSAL
A management tool
By: Florence Vorster
6 JANUARY 2016
RESEARCH REFERENCES
Employee Engagement – A guide to understanding, measuring and increasing engagement in your organization
By: Robert J. Vance, Ph.D.
Performance Management – A roadmap for developing, implementing and evaluating performance
management systems
By: Elaine D. Pulakos
Society of Human Resource Management: Building a High-Performance Culture
By: ED Pulakos
Rapid Learning institute Free online Training Courses: Employee Engagement series
Tapping into Discretionary Effort
The power of Validation
Leadership
Focus, Capability & will
See last page for additional references

2. The Motivation for a new system
1. First reason- current performance program not fair
Currently a good performance is only rewarded annually. It is often difficult for supervisors and
team leaders to focus on this source of motivation over the entire year without having a proper
performance management system in place.
Since many of our supervisors do not assess performance across the entire year, they rely on
their observations of performance in the few weeks preceding the performance reviews. Our
employees are aware of this, therefore their performance becomes uneven, spiking just before
reviews, giving an unrealistic view of the employee’s performance, resulting in an employee
that gave the 100% from Jan too Dec getting the same reward than an employee that only
started to give 100% two months before bonus reviews.
2. Secondly, the current performance program does not increase productivity or
concentrates on key performance indicators
Currently our department has no desired motivation to perform and increase productivity, there
is no real incentive program, no possibility of a performance increase or any award other than
a possibility of a bonus at the end of the year. Our current performance evaluation system at
the end of the year, does not measure all important work behaviors and key performances
Once again many of our employees tend to only focus on the behaviors that are most likely to
earn them a raise and bonus close to the end of the year, often ignoring other aspects of
performance during the year(example: quality, output, efficiency, customer relationships etc.)
Research showed that in many cases a task that is, naturally motivating often loses this
essential motivation if the “reward” is below the employee’s expectations, the individual feels
there is no sufficient justification to perform the task/s according to company requirements.
Companies that rewards high performance with pay or well thought out rewards, seems to
change the individual's source of motivation to perform, the trick seems to be to develop a
performance program that can constantly motivate an employee to keep up the momentum of
productive behavior, throughout the year.
The idea behind putting in the points program, is too measure performance throughout the
year, it is based on our core goal, to have high performing and productive staff, effective
supervisors and team leaders. For them to be able to receive beneficial rewards, either in form
of a performance increase/merit pay, or to be able to exchange their points to up skill
themselves by means on an external training course this is still to be determined.
The system must be able to excite and motivate the employees, also the system must be fair
and accurate, and most of all fit in with the branding department’s culture.

3. New Program Proposal
PROJECT NAME: Employee Performance program
Project type: Performance
management
program
Proposal Date: 22 January 2016
Department Branding Project Manager: Florence
Target Completion: 1 March 2016 Department head Philip
Project Overview:
Project Objectives :
 Positive reinforcement and recognition of excellent performance during the year
 The merit point’s management program will facilitate and promote consistent
and timely communication regarding an employee’s work performance.
 Accurate and fair appraisal at the end of the year.
Business Justification:
To enhance company performance the points system will be the perfect tool to improve
individual performance, and a guide towards elevating work performance. By each
employee to reach their personal key result areas, which will support fair remuneration
for both the employee and employer.
Staff involved in the program: Admin, Printing, Embroidery
Program Technology :
Automated performance management system
• The Functionality to conduct and capture performance points, user interfaces for
displaying performance processed information
• Capturing employee input and documentation of accomplishments online
• Producing automated reports that evaluate performance , low balance account
and increased balance account
• SMS functionality?

4. Possible Risks:
Employees are not given a chance to earn performance points
Program is not diligently followed due to poor time management by supervisors
Employees feel that the team leaders and supervisors are unskilled at discussing their
performance and are ineffective at coaching them on how to develop their skills
therefore feels the program is unfair or has no interest in the program
Questions/items for further research before a full project would be approved:
1. HR to investigate employee rights and lawfulness of such a program and if the
program is in line with the company’s strategies?
2. A corporate strategy and plan to build commitment
3. Define purpose for teams and clear roles
4. Team and individual goals
5. Set clear priorities for resources to be allocated accordingly
6. Confirm final discipline and performance steps?
7. Does this program provide the information we will need to determine annual
salary increases/performance bonuses based on performance?
8. How will we prepare employees, supervisors and team leaders for the program
9. How will the incentive program and the merit program inter lock?
( example: employee is always late, has a bad attitude, but always meets his
targets)
Project Scope
In Scope:
This system will be an indirect performance evaluation tool as well as a strategic tool
for rewards and recognition.
Out of Scope:
 Infraction levels
 how points will be rewarded and deducted
 progressive discipline steps

5. Deliverables:
 Clarifying job responsibilities and expectations
 Enhancing individual group productivity therefore increasing profits
 Constantly developing employee capabilities to their fullest extent trough
effective feedback and coaching
 Driving behavior to align with the organization’s core value, goals and strategy
 Improving communication between employees and managers
 Increase in performance levels
 Fare and accurate employee evaluations and recognitions when giving
performance bonuses
Cornerstones of successful implementation
• Ensure alignment with other HR systems
• Get organizational members on board
• Communicate program to Supervisors
• Automate ( designing a program)
• Pilot test?
• Train employees and Supervisors/Team leaders
• Evaluate and improve program
Performance Management Training
• Description of the policies
• How to plan performance ,set expectation and set department goals
• The importance of ongoing, constructive, specific behavioral feedback
• How to react and act on feedback from staff in a constructive manner
• How to give feedback in a manner that minimizes defensiveness
• How to identify and address development needs
• How to use the automated system
Administrative roles
Division supervisors Access to award and deduct points
Team leaders To inform supervisors of possible infractions or productive
work behaviors
Department head Progressive discipline
Rough Project Timeline **
Phase: 0 – Proposal 1 – 2 – 3 – 4 –

6. Review
Date:
25/1/2016 TBD TBD TBD TBD
Performance Management program
Summary
Each branding employee will start the year on (0) in their “Points Wallet, various
counterproductive work behaviors (section 1.1) will result in deductions from an Employee’s
“Points Wallet”, an employee may also be rewarded with points (section 2.2)
Progressive disciplinary steps will be taken (section 3.1) based on a certain amount of a
negative points balance. Should an employee deplete all points in his/her account immediate
steps will be taken (Section 3.1), but if an employee manage to increase their points they will
automatically qualify for employee recognition (Section 2.2)
Each time an Employee has points deducted or added from/too his/her “Points Wallet”, he/she
will be notified of the reason for the deduction (as stipulated under Level 1-3 infractions), or
the remuneration(as stipulated under Level 1-3 remuneration) and the total balance will
reflect.
The supervisor will be able to pull a statement of the employee’s performance, this statement
will reflect deductions and remunerations. The Supervisor will be able to get a broader look at
the employee’s performance and with the assistance of the management team be able to
create a strategy to increase the employee’s performance.
A statement of performance will also determine an employee’s performance
increase/Performance award and annual performance bonus.
Example:
Date Level Description Points
01/01/2016 1 Spends more time socializing than working -1
02/02/2016 2 Has received complaints from team leaders -1
04/02/2016
2 Has made errors that have led to significant
problems -1
25/02/2016 3 Has little concern for details -1
04/03/2016 1 Often needs to redo his work -1
26/03/2016 HR Counseling session completed 2
05/04/2016 1 Performance improvement 2
16/04/2016 3 Comes to work ready to excel 1
The Supervisor/Administrator will on a quarterly basis, use the statement of account to see
which employees is still on a (0), and investigation into the zero account balance will be done

7. to make sure that the supervisor has not overlooked the employee’s need for professional
development, or any other reasons why the employee have not manage to increase his/her
performance.
Serious transgressions committed by and employee will be handled by the human recourse
department. (Ref: Company Disciplinary Code)
Employees may request at any time to meet with the Administrator to review their Points
Account.
1.1 Counterproductive work behavior (deduction Levels)
An employee may have points deducted from his/her Points Account for the following reasons:
Level 1 Infractions - TBC Points Deducted for each Occurrence
• TBA
• TBA
Level 2 Infractions- Result Expectations? TBC Points Deducted for each Occurrence
• TBA
•
Level 3 Infractions- TBC Points Deducted for each Occurrence
• TBA
• TBA
1.2 Deducting and Disputing of Points Deducted
The supervisor or team leader will notify the employee during a private meeting of the reported
infraction. A reasonable time will be agreed on to rectify any counterproductive work behavior.
In failing to do so, the employee will be notified during a second meeting of the points going to
be deducted. This will be confirmed by a ‘letter of deduction’, and signed by the supervisor and
the employee.
At any time, will the employee have the right to dispute any points that where deducted should
the employee feel the deduction it is not in accordance with the guide lines of this program
(section 3.1).
Disputes must be submitted in writing (Form C), and addressed to the administrator and HR.
The administrator will document any disputes off points on the automated points system.
Should the Committee determine that the disputed points were not in accordance with the
rules as stipulated in the first paragraph or according to program guidelines, the deducted

8. points will be aware back to the employees “Points Wallet”. Should the Branding Manager and
HR determine that the disputed points was in accordance with these rules, no further action
will be necessary and the employee will be informed of their decision in a private meeting.
Example of point deduction notification
2.1 Production work behaviors (remuneration levels)
An employee may have points added to his/her Points Account for the following reasons:
Level 1 Remuneration - TBC Points added for each Occurrence
• TBA
• TBA
• TBA
Level 2 Remuneration - TBC Points added for each Occurrence
• TBA
• TBA
• TBA
Level 3 Remuneration - TBC Points added for each Occurrence
• TBA
• TBA
• TABA
2.2 Awarding of Points
In order for an employee to receive performance points added to his/her, account, the
supervisor or team leader must send a request for recognition to the manager (Form B).
Request to deduct points (Form A)
Date Employe
e Name
Emplo
yee
code
Description Details of
Transgression
Occurrence
Level
Points
2/1/2016 Florence
Vorster
3089 Unsatisfactory work
Performance
Provides details that are
sloppy, inaccurate , or
incomplete after being
notified and agreed on under
Level 1 infractions
Level 2 (-3)

9. The supervisor needs to be able to submit proof to support their decision to award the
employee with the level of points.
Request to Award Points (Form B)
Date Employee name Occurrence level Points
1 Jan 2016 Florence Excellent
Performance
5
Detail Description of Employees actions
Relentlessly pursues outstanding outcomes
Comes to work ready to excel
Maintains focus on the main event
Date: Approved by: Signature: Occurrence level: Points award:
3.1 Progressive Discipline Steps
Points Balance
Remaining
Action Description
? Points Negative balance
notification
The employee will be required to appear
before his/her Supervisor and Team
leader to discuss his/her Points Account
Balance and to discuss the infractions
that resulted in points being deducted
from his/her account and to discuss the
way forward, and ways to increase the
employees performance
? Points Improvement
Counseling Meeting
(1st
Warning letter)
The employee accompanied by his/her
supervisor will be required to meet with
the Branding Manager and HR to discuss
necessary areas of improvement in order
to remain in their current position. A
Written agreement must be established at
this time.
? Points Appear Letter
(2nd
Waring letter)
The employee accompanied by his/her
supervisor will be required to meet with
the Branding Manager and HR for a
hearing. A 2nd
warning letter will be
issued.
? Points Termination The employee accompanied by his/her
supervisor will be required to meet with
the Branding Manager and for a hearing
and employee will be terminated based
on bad performance

10. 2.2 Performance points awards
Mid-Year awards
Points Remaining Action Description
+ ? points Acknowledgement of
performance
A certificate will be issued
for excellent performance
and an additional? points
will be added to “Points
Wallet”
+ ? points Options to Cash in The employee will have an
option to cash in his/her
points for
• Merit Pay ?
• Online/External 1 day
training course of
his/her choice
Annual awards for good performance
Points Remaining Action Description
+ ? points Automatically qualifies for
80% bonus
Employee has no desire to
excel but gets the job done
+ ? points Automatically qualifies for
100% bonus
Puts in regular effort to
ensure they are good at all
aspects of their jobs
+ ? Point Automatically qualifies for
120%
In addition to performing in
all aspect of their jobs they
contribute to the company’s
bottom line
+ ? points Automatically qualifies for
130 %
Has become invaluable to
the department

11. 3.1 Program Guidelines
Employees at all levels within the department should be able to clearly understand how their
job activities and the level of their performance directly contribute to the success of the
organization
• Employees must be evaluated on factors that are relevant to their jobs and key
performance indicators
• Employees must be informed about what is expected of them and the standards against
which they will be evaluated in the beginning of the year, this should be reiterated to
them at least quarterly or once a notification of a negative account balance is sent
• Supervisors/Team leaders should be trained on the performance management process
with the relevant skills that is required to implement the process effectively
• Supervisors/Team leaders must document real events of effective and, especially
ineffective employee performance to substantiate the deduction or remuneration of
points
• Supervisors/ Team leaders will be held accountable for discussing performance issues
with employees and providing them with feedback in a timely manner
• Quarterly performance or low account balance will be reviewed by higher-level manager
and HR
• Employees must at all time have the opportunity to formally comment on deduction
points and will have the right to an appeal.
• Managers must give desired attention to employee’s that have not managed to increase
their “Points Wallet” on a quarterly basis.
Executive Decision Record
Date Approver Decision Made

12. Additional Research References
Performance Management
A roadmap for developing, implementing and evaluating performance management systems
BY: Elaine D Pulakos
Employee Performance: The Vital Behaviors of Top Performers
ng.monster.com/hr/hr-best-practices/workforce-management/employee-performance-
management/improving-employee-performance.aspx
Organizational Psychology: A Scientist-Practitioner Approach
By Steve M. Jex, Thomas W. Britt
Article: Employee Appraisal and performance management
Article: Skills and requirements Employers want
Dummies.com
http://www.dummies.com
Int, J . Businees Performance Management Paper
Published paper
Forbes
www.frobes.com
Article: 14 Bad habits that can cost you your job
By: Jacquely Smith
Forbes staff
Human Rights Commission
Managing performance and discipline
http://www.ohrc.on.ca/en/iv-human-rights-issues-all-stages-employment/11-managing-
performance-and-discipline
Human Resources
Article: Merit Pay Planning and Implementation Guide
https://www1.umn.edu/ohr/prod/groups/ohr/@pub/@ohr/@toolkit/documents/asset/ohr_asset_
454690.pdf
Management Mind Tools
Article: Dealing with sloppy work
Mind Tools
https://www1.umn.edu/ohr/prod/groups/ohr/@pub/@ohr/@toolkit/documents/asset/ohr_asset_
454690.pdf
Terryberry Recognized

13. Award Points, Employee recognition
http://www.terryberry.com/programs/milestoneformal-recognition/awardpoints-performance-
recognition.aspx
BizFilings
Article: Workplace Rules, Protect your Business and maintain a positive employee
environment
http://www.bizfilings.com/toolkit/sbg/office-hr/managing-the-workplace/workplace-rules.aspx
Chron
Article: How to create an Employee Reconition program
http://smallbusiness.chron.com/create-employee-recognition-program-40392.html
You earn it
Article: Employee Recognition Program: Connecting Behaviors with company core values
Yohttp://youearnedit.com/blog/employee-recognition-programs-connecting-behaviors-with-
company-core-values/uearnit.com
Awards Network
Article: Employee incentive programs
http://www.awardsnetwork.com/employee-reward-programs/employee-incentive-programs
HB Engagement
Article: Exploring Employee incentives
http://www.awardsnetwork.com/employee-reward-programs/employee-incentive-programs