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PMDS GUIDE (Performance Management Development System)

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1. Evaluation System

1.1 Evaluation System

Design (Standard)

• Establish global standard system to evaluate holistically and objectively, the performance and

competencies of both the organization and individual

• Performance Evaluation system consists of three components; achievement evaluation, competency

evaluation, Final evaluation

Principle

CJ KX

Vision & Mission

Performance

Evaluation

Competency

Evaluation

Final

Evaluation

CJ KX

Values

Core

Competency

Organization

Target

Organization

Performance

Individual

Performance

Performance Mgmt

Element

• Setting the MBO

indicator of each

employee

• Measure of achievement

grade

• On BSC point of view

(finance, customer,

process and etc.), well-

balanced measure of

performance

• Company’s business plan

• Management plan of Division /

Business unit / Department

Required

Competency

• Consist of competencies

that is needed for

organization and for role

• Evaluate real showed

level , comparing to

required

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2. Evaluation Process

2.1 Process & Activity Overview

• Maintain consistency and unity of performance management by globally applying performance

management process and cycle Principle

Design (Standard)

1

2

3

• Goal Setting

• Discuss expectation

level for achievement

with Manager (primary

assessor) and

employees

• Devise the career

development plan • Monitoring about the

process that perform the

task for target

achievement

• Feedback

• Adjust the Target (if

needed)

• Implement evaluation

• After performance &

competency evaluation,

make final evaluation

• Open Door System

(Demur Process against

the Final evaluation)

• Application of

evaluation results to

other HR programs

Goal

Setting

Coaching

& Interim

Review

Final

Evaluation

1

2

3

Evaluation

Process

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2.1 Process & Activity

Competency

Goal Setting

Organization

Goal Setting

and sharing

Career

Development Plan

Setting

Talk and decide

the Goal

1. Goal Setting Process

Performance

Goal Setting

Employee

Assessor

• Align the goal of

each employee

with the business

strategy, company

goal and

organization KPI

• Validate whether

employee’s goal is

reasonable or not

• Select main

competencies to

develop in the year

• Devise an Action

Plan to develop the

main competencies

which are selected

• Coach the

competencies to

develop and action

plan

• Make the mid or

long term career

development plan

concentrating upon

the section to need

developing

• Talk with assessor

for checking up the

goal

• Require the

supporting item for

goal achievement

• Coach the Career

Development Plan

• Provide the

requirement from

employees and

support the

achievement of

each employee’s

goal

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2.1 Process & Activity (cont'd)

2. Interim Review

Implement Interim

Review

File and record the

results of the talk

Adjust the Goal

(If need)

Preparing for

Interim Review

• Prepare the data to be

needed for the interim

Review

• Total actual results of

advance for goal

achievement

• grasps actual results

of advance for goal

achievement of each

employee

• Let employees know

the reason about poor

performance and check

up the supporting way

• Discuss the level of

goal adjustment and

contents

• Reset the plan and the

detail of the goal that

is adjusted through the

interim review

• Submit the result of the

interim review to HR

• Discuss the level of

goal adjustment with

employee

• Grasp the advance for

goal achievement

through the conversation

with the employee and

the assessor

• Talk about errors not to

be promoted goal

achievement

Employee

Assessor

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2.1 Process & Activity (cont'd)

3. Final Evaluation

The Primary Assessor

Evaluate

Final Evaluation

Score

Ordering

Final Evaluation

Grade

Performance Evaluation Competency Evaluation

Adjust or Confirm

the evaluation score

by second assessor

Adjust or Confirm


by second assessor

Final Evaluation Score

Ordering the employees in the same evaluation group

Final Evaluation Grade

Performance Evaluation Competency Evaluation

Final Evaluation Grade S Grade B Grade

Score Score

C Grade D Grade

On the base of the Final Evaluation Score, order the employees in the same evaluation group

Final Evaluation Score

The second Assessor

Adjust or Confirm


A Grade

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3. Evaluation Authority

3.1 Setting the Evaluation Authority

• Seek for the balance between accuracy and fairness of evaluation by adopting double evaluation

system which differentiates first and second evaluator Principle

Design (Standard)

• Select dual system (going through the primary / secondary evaluation) to correct the tendency to hospitalize and be rigorous of

evaluation

- Primary Assessor : direct higher office of employee, Secondary Assessor : direct higher officer of the primary assessor

- Primary Assessor is suitable for the direct higher officer of employee possible to observe constantly

- Secondary Assessor is suitable for the direct higher officer of the primary assessor possible to review the primary evaluation results

Team (A) Team (B) Team (C)

Region Division

Country

Primary evaluation authority : Team Leader

Secondary evaluation authority : higher officer of team

leader (if absent, MD has the authority)

Primary

Secondary

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3. Evaluation Authority

3.2 R&R by each Evaluation Subject

Design (Standard)

• Define R&R by evaluation subject, and improve quality of evaluation management through

continuous training Principle

Goal Setting

• Make sure own R&R, performance plan, evaluation results and career development plan

• Consider the desire task to contribute the organization

• Consider competencies concentrated evaluation results of last year & self diagnosis

• Set the goal of organization • Make sure the R&R, performance experience,

evaluation results and career development plan of Team member

• Inform of goal & expectation level of team and company

Devise the

plan by each

employee

• Set own goal and weight by each item for goal achievement of organization

• Set the implementation plan, indicator for measure and expectation level for goal achievement

• Set competency development plan aligning with goal achievement

-

Validation

& discussion • Deliver the plan that is set by each employee to

team leader

• Review the draft of team members’ goal setting • Make sure the performance redundancy and

inefficient elements • Discuss the goal with team member • Sharing the process that consists of final input,

filling in the document and etc.

Final

Confirmation

• Confirm the goal, detail plan and competency development plan which make a agreement with team leader and fill in the standard form*

• Submit to team leader finally

• Confirm whether contents discussed with team members are filled in the standard form well or not

Employees (Team Member Level) 1st Assessor 2nd Assessor

• Set the performance goal of their own organization

• Give the opinions to modify or review goal setting and evaluation results

* The country that bring the system of evaluation operation in play can fill in the system directly

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4. Evaluation Way & Grade

4.1 Evaluation Way – Performance Evaluation

• Secure accuracy and fairness of evaluation through absolute evaluation on individual index and

relative evaluation on total grade Principle

Goal Setting

• Select the 3~5 KPIs by each employee in the KPI Pool

- Discuss and decide with Manager (Primary Assessor) and employees

• Set the target level and weight by each KPI

- Considering the difficulty & importance degree of the goal, discuss and decide the final weight and target level with

Manager (Primary Assessor) and employees

Evaluation by each Indicator

Performance Evaluation & Grade

Confirmation

• Decide evaluation grade by each KPI comparing to target level : Absolute Scale

- The standard is as following

- The principle is the absolute scale because of MBO that evaluate achievement comparing to target level

Grade S Grade A Grade B Grade C Grade D Grade

Achievement Over 120% Over 105% 95~105% 80~95% Below 80%

• Reflecting the weight to evaluation grade of each KPI, decide performance evaluation grade : Relative

Scale

- The standard is following

- Applying relative distribution rate according to organization evaluation, decide the final performance evaluation grade

Eva

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tion

by K

PI


Achievement Over 120% Over 105% 95~105% 80~95% Below 80%

Standard for Grade

• All the KPI meet the target, Much part of KPIs exceed the target

• All the KPI meet the target, Some part of KPIs exceed the target

• Most of KPIs meet the target but a part of KPIs are under the target

• The number of KPIs which meet or are under the target are similar

• Most of KPIs are under the target

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lua

tion

The Way of Performance Evaluation

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4.1 Evaluation Way – Performance Evaluation Example

Evaluation by each Indicator

Goal Weight Measurement Index

Expectation Level

Achievement Result Under the Target (D) 80% below

(Threshold)

Meet the Target (B) 95~105%

(Target)

Exceed the Target (S) 120% Over

(Max)

The Sales 40% The Sales 1,280 1,600 1,920 1,667(104.2%) B

The amount of orders received 20% The amount of

orders received 16d 20 24 18 (90%) C

Management of Profit & Loss 10% The amount of Profit

& Loss 20 25 30 25.8(103%) B

The raise of selling cost 20% The raised expense 1.6 2 2.4 1.8(90%) C

Accuracy of the expectation quantity 10% Error rate 6% 5% 4% 4.9%(98%) B

A monetary unit : billion

Performance Evaluation

& Confirmation of Grade

• Consider achievement degree of each KPI and standard of grade (refer the table following)

Reference ) the way to make achievement degree (each KPI achievement degree X weight)

- The Sales : 104.2 X 0.4 = 41.68

- The amount of orders received : 90 X 0.2 = 18

- Management of Profit & Loss : 103 X 0.1 = 10.3

• Applying relative distribution rate according to organization evaluation, decide the final performance

evaluation grade


Image Over 120% Over 105% 95~105% 80~95% Below 80%

Standard for Grade

• All the KPI meet the target, Much part of KPIs exceed the target

• All the KPI meet the target, Some part of KPIs exceed the target

• Most of KPIs meet the target but a part of KPIs are under the target

• The number of KPIs which meet or are under the target are similar

• Most of KPIs are under the target

- The raise of selling cost : 90 X 0.2 = 18

- Accuracy of the expectation quantity : 98 X 0.1 = 9.8

Sum : 97.78

Step 1

Step 2

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No Goal Measurement

Index Weight

Expectation Level

Achievement Result Under the Target

(D) 80% below

(Threshold)

Meet the Target

(B) 95~105%

(Target)

Exceed the Target

(S) 120% Over

(Max)

Total 100

Final Performance

Evaluation Grade S( ) A ( ) B ( ) C ( ) D ( )

Overall Opinion

Assessor : (signature)


4.1 Evaluation Way – Performance Evaluation Form Sample

Goal

Setting

Name Department Grade

Assessor Department of

Assessor

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4.1 Evaluation Way – Competency Evaluation

• Evaluate absolutely, displayed level against required level by competencies and encourage

individuals to enhance individual competency level and display the competencies in actual work Principle

The Way of Competency Evaluation

Goal Setting

Evaluation by each

Competency

Competency Evaluation & Grade

Confirmation

• Establish development plan to enhance competency of each components to meet required level.

- Discuss and decide with Manager (Primary Assessor) and employees

- Sharing the required level by competencies

• Evaluate the showing level of competencies comparing to required level by the position : Absolute

Scale

- On the base of required level

- Evaluate the showing level of competency through performing the task in the evaluation period

• Derive the final competency evaluation grade from considering the evaluation results of each competency

: Absolute Scale

- Calculating the rate of competencies which meet or exceed required level, evaluate the final competency evaluation level

- It is more important to meet the required level of most competency than exceed the required level of a few competencies


Standard for Grade

Within top 10%

of comparative

group

Above

expectations

Meets

expectations

Below

Expectations;

Needs

Improvement

Far below

Expectations;

Difficult to

expect any

improvement

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tion

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4.1 Evaluation Way – Competency Evaluation Form Sample

Competency Desirable Actions Development Plan

CJ WAY

Integrity

Consistently complies with company regulations/policies and processes

Is transparent and does not make excuses for problems and mistakes

Does not neglect ineffectiveness or organizational problems/issues

Passion

Has a healthy drive for excellence and aims to be “the first”

Always challenges self by setting high goals

Focuses on details and strives for perfection in all duties

Creativity

Demonstrates critical thinking skills that is cognizant of the nature of his

work/duties and goals

Consistently seeks for opportunities to improve standard/existing work

processes

Takes initiative to propose ideas for positive change

Communication

Motivates and positively challenges peers and colleagues to improve

work quality; raising the overall standard for results

Receives suggestions and critiques in a positive manner and uses it as

an opportunity for improvement

Listens carefully to others and asks questions to verify and clarify what

was communicated

Ensures that what is communicated is carried out as intended from

beginning to end

Development

Plan

Setting

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Expertise

Maintains the expert knowledge required for his/her role

Keeps current with the latest knowledge and information applicable to

his/her area, field, or line of work

Effectively maintains and utilizes h is/her network of experts useful to

his/her line of work

Has a definite opinion or insight on issues

Identifies the essence of problems and presents the best solution

Is recognized for his/her expertise and is often called on for assistance

Development

Plan

Setting

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Leadership

(Only for

Manager)

Vision

Sharing

Demonstrates a firm belief and confidence in the company vision and

organization strategy

Clearly communicates expectations for assignments and goals

Does best to remove obstacles for team members to allow for normal or

most ideal working conditions possible

Change

Management

Recognizes when and where change should be implemented

Proposes the direction changes and alternatives in a persuasive manner

Fosters consensus and participation in changes amongst team members

Talent

Development

Appropriately delegates assignment and responsibilities

Accurately assesses team member competencies, potential and fit with

the company and role

Provides honest and useful feedback on team member performance

Shares own expertise and experiences with team for the development of

team members

Development

Plan

Setting

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Leadership

(Only for

Manager)

Leading by

Example

Actions are in alignment with words

Possesses a high standard of ethics

Shares responsibility for team members’ performance

Decision

Making

Makes timely decisions

Makes rational decisions based on logic

Focuses on key and necessary information and does not engross self

in/adhere to unnecessary details

Development

Plan

Setting

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Self -

Leadership

(Only for

Non-Manager)

Confidence

Has an opinion and confidently expresses his/her views

Takes the initiative to complete the necessary without having to be

prompted

Adheres to promised deadlines and preserves high work quality and

standards

Self-

Development

Accurately evaluates his own results, strengths and weaknesses and

applies this to his/her career development plan

Requests and accepts feedback from various people

Proactively seeks and takes advantage of opportunities for

self-development

Teamwork

Maintains a supportive attitude in working with others to achieve

departmental goals

Is open-minded to others’ ideas even if it opposes his/her own

Accepts and supports decisions once they have been made

Development

Plan

Setting

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Assessor

Final Competency

Evaluation Grade S ( ) A ( ) B ( ) C ( ) D ( )

Overall Opinion




Competency

S Grade

(All competencies

exceed)

A Grade

(Some competencies

exceed)

B Grade

(Meet the needs)

C Grade

(Some competencies are

under)

D Grade

(All competencies

are under)

CJ WAY

Integrity

Passion

Creativity

Communication

Expertise Expertise

Leadership

Vision Sharing

Change

Management

Talent Management

Leading by example

Decision Making

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Because the higher grade have to contribute to organization performance, emphasize the result of performance evaluation and

Because the lower grade is in the step that improve the competency for higher performance, emphasize the result of competency evaluation


4.1 Evaluation Way – Final Evaluation

• Integrate the results of achievement evaluation and competency evaluation according to relative

distribution rate that reflects organizational performance, and secure objectivity and fairness of

performance evaluation

Principle

The Way of Final Evaluation

The Way of

Evaluation

Derive Final

Evaluation Grade

Final Evaluation

Grade

• Applying relative distribution

rate according to organization

evaluation, decide the final

evaluation grade (Relative Scale)

Performance

Evaluation Grade

• Decide the performance evaluation grade

(Absolute Scale)

• And then Applying relative distribution

rate according to organization evaluation,

decide the final performance evaluation

grade (Relative Scale)

Competency

Evaluation Grade

• Evaluate the showing level of

competencies comparing to

required level by the position

(Absolute Scale)

Higher & Including G5 Lower & Including G4

Category Competency Evaluation

S A B C D

Perfo

rmance

E

valu

atio

n

S S A (S) - - -

A A A B(A) - -

B - B B C(B) -

C - - C C D(C)

D - - - D D

Category Competency Evaluation

S A B C D

Perfo

rmance

E

valu

atio

n

S S A - - -

A A(S) A B - -

B - B(A) B C -

C - - C(B) C D

D - - - D(C) D

• If the performance evaluation result is higher than the competency evaluation, final evaluation grade can be the performance evaluation result

• If the competency evaluation result is higher than the performance evaluation, final evaluation grade can be the competency evaluation result

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Final Evaluation

Grade S ( ) A ( ) B ( ) C ( ) D ( )

Overall Opinion


Performance Evaluation Grade Competency Evaluation Grade

S Grade A Grade B Grade C Grade D Grade S Grade A Grade B Grade C Grade D Grade


4.1 Evaluation Way – Final Evaluation Sheet Sample



Assessor

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[Reference] Evaluation Scale – SABCD

Delivery Clearly

Meaning of

Evaluation Result

Evaluation Scale Setting & Definition

• Need the evaluation scale to be possible to deliver the meaning of evaluation result more

clearly

- It is more effective to consider the meaning of evaluation result than using the ‘SABC’

Distinguish High &

Low Performer

Clearly

• Evaluation Scale Setting to be possible to distinguish High and Low Performer

- Minimize the vagueness that is difficult to distinguish each step

- Set to be possible to motivate high performer constantly

• Use the 5 steps evaluation scale

- Remove the vagueness that is occurred by using the 3 or 4 steps evaluation scale

- It is possible to distinguish high performer, general performer and low performer from each other

- Cutting the fragmentary 3 steps evaluation that is consisted of high / middle / low and adding two

steps on that, improve the receptiveness and fairness of the evaluation

5 Steps of

Evaluation Scale

Using the

SABCD

• Considering the meaning given the evaluation result, ‘SABCD’ is used as evaluation scale

Co

ns

ide

ratio

ns

E

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lua

tion

Sc

ale

Se

tting

& d

efin

ition

S Grade (Outstanding)

A Grade (Exceeds)

B Grade (Meets)

C Grade (Below)

D Grade (Needs Improvement)

Exceeding the expectation level, achieve the outstand Performance

Exceeding the expectation level

Meet the expectation level

Below the expectation level

Below the expectation level extremely

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4.2 Evaluation Grade

• Set all evaluation grades in global standard 5 stages, and maintain global unity and enable easy

application of other HR programs including reward, etc. Principle

Relative Distribution Rate of Performance & Final Evaluation

Categorize S Grade A Grade B Grade C Grade D Grade S Grade & D Grade Rate

S Grade D Grade

S Grade ~ 45% - 5 ~ 10% 5 ~ 10% 0 ~ 5%

A Grade ~35% - 10~15%

~ 5%

3 ~ 5%

B Grade ~30% - 15~25%

C Grade ~25% - 20~30%

5 ~ 10%

D Grade ~20% - 20~30%

Individual Evaluation Grade

Org

an

iza

tio

nal

Ev

alu

ati

on

Gra

de

If organizational evaluation grade is high,

the opportunity to get high grade in the individual evaluation increase and the risk to get low grade is decrease

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4.2 Evaluation Grade – Setting the Evaluation Group (cont'd)

Principle 1

• Divide the evaluation group

by team staff’s grade

- Divide the G5 and more &

G4 and below and order

relatively in each group

Principle 2

• If there is another team that

has similar function with the

team

- Put the staff of the teams

together one group

- And then divide the G5

and more & G4 and below

and order relatively in that

group

- Secondary assessor of

those team which have

similar function must be

same

• If there is no another team

that has similar function with

the team

- Do not divide the evaluation

group by team staff’s grade

and order relatively all the

team staff

Principle 3

• Do not divide the

evaluation group by team

staff’s grade and order

relatively all the team staff

High Priority Low Priority

If it is impossible

to divide groups

because of lack of

the number of

team staff

Although putting

the staff of the

teams together

one group, if the

number of staff is

still few

The Principle to set the Evaluation Group In the Team Staff

The prior principle is to divide the evaluation group by team staff’s grade and order relatively in each

group

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5. Application of Evaluation Result

5.1 Application of Evaluation Result

• Utilize the evaluation results in other HR systems to improve conformity among various HR

programs and to strongly attract performance enhancement Principle

Performance

Evaluation

Competency

Evaluation

Application of Evaluation Result

Base Pay

Incentive

Promotion

Development

“Discriminative Application of Annual

Increase rate by Individual”

“Apply Achievement Evaluation Result

to Incentive Payout ”

“Competency Evaluation Result –

Promotion”

“Based on Competency Evaluation

Result, Develop the Competency

that is required to improve ”

Final

Evaluation

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