Performance Review Discussion

• Review what has been achieved since the last review and examine reasons for successes and failures;
• Agree on actual levels of achievement;
• Stimulate and discuss ideas about what can be done to improve results achieved;
• Agree on future performance goals, the basis of measurement, and timing of review;
• Help the individual analyze personal performance and underlying factors affecting performance such as skills and knowledge, job structure, standards, and resources available;
• Strengthen the individual’s commitment to the job;
• Learn about the individual’s interests, goals, and long-range career plans, and help the individual relate these to the current job;
• Strengthen the understanding between manager and individual, and foster an open line of communication;
• Discuss and resolve specific anxieties, uncertainties or misapprehensions affecting job performance plans and directions for future career development, plan specific activities in  support of these plans and directions;
• Get feedback from the individual on how well you have managed.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Setting Standards

Having standards is not enough. They must be the correct standards. By correct means not too low, not too high. If you set them too low you will lose productivity; valuable resources will be wasted. Low standards are also demotivating. Challenge and job satisfaction go hand in hand. When standards are too low people become sloppy in their work. When they can do their jobs with their eyes closed, their attention is lost and needless errors are made.

Standards that are too high are a problem as well. When standards are unrealistically high, the manager has no yardstick for determining how well the people performed. The standard is meaningless. Standards that are too high are also demotivating. If people know that the standards are impossible, they will reason “Why try at all? We can’t reach them anyway.” The standards become a source of frustration. If people consistently strive to meet the standards without success, they will feel like failures which will eventually affect their morale and performance.

The goal is to set standards high enough so that people have to work exceptionally hard to reach them and low enough so that they are attainable.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Feedback

People must receive feedback. Unless they know how well they are doing in fulfilling their responsibilities and meeting the standards, they cannot be expected to improve their performance when needed.

Many managers don’t get feedback because they think people know without being told when they are doing a poor job or a good job. The manager who makes this assumption knows very little about human nature. Most people have a limited capacity to judge and evaluate their own performance and work. They need help in seeing their strengths and weaknesses. That goes for the excellent performance as well as for the poor performer.

People need to know when they are doing a superb job and when they need to improve and make changes. When they don’t receive feedback, they become preoccupied with the question of how well they are doing. Are they going to get zapped or praised? Are they on the manager’s good list or bad? Are they going to get promoted or fired? These are difficult questions for anyone to live with.

When people don’t receive the necessary feedback, they feel unnoticed, unappreciated, and uncertain. They usually find a way of getting some form of attention, usually negative, since that is the only thing some managers respond to.

It is impossible to establish an effective working relationship with people unless you give them feedback. There must be two-way communication if there is to be an understanding between you and the people you manage.

Whenever you give feedback to a person on his performance, it should accomplish one or more of the following objectives:

• Reinforce positive performance.
• Show the person how and where he needs to change and improve.
• Motivate the person to perform better.
• Build pride.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

What will other people think?

Everyone wants the approval of other people. This is a basic need of human nature. Before doing anything—deciding what to wear, decorating the home, buying a car, or accepting a job—many people ask theselves, “what will my friends say?” “Will they approve?” Most people fear doing anything they feel may shock, offend or upset others.

 

The easy way to deal with the will-other-people-approvre? Fear is to adhere to strict conformity. But living your life to conform to other people’s likes, dislikes, and prejudices stunts your development. Conformists deny themselves individuality, and ingredient you must have to enjoy success.

 

Here are two suggestions to beat the do-other-people-approve? fear:

1. If what you want to do meets moral and legal standards, do it! Your life is your life. Friends who criticize what you do aren’t really friends. Chances are the people who think your behavior should always meet their standards won’t be there when you need money, a job, or help. And the folks who want you to think and act the way they do would delight in seeing you fail or get into some kind of trouble. Remember this: People who expect you to conform to their way of viewing things are themselves very insecure.
2. Seek the approval of people you admire most. Select a mentor. Instead of asking, “what will other people think?” ask, Would the most successful person I know approve of what I have in mind?” Think and do as successful people think and do.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Intranet

Unlike the public Internet, Intranet is a private network inside the organization that uses the Internet Protocol (IP). Intranet is for internal use only. Firewalls keep unauthorized Internet traffic off an Intranet. Thus, organizations can have web servers available only to employees. An Intranet may not actually be an Internet it may simply be a network.

Usually not connected to the Internet, the Intranet’s general purpose is to share private (or confidential) information across an organization or department. It is rapidly gaining popularity due to its open standards, thus allowing information stored on unlike servers to be found. The users of the Intranet can exchange electronic mail (email), send files (ftp), browse web (WWW) pages, and connect to any other computer (telnet).

Web site hosted on a local network is not accessible by anyone outside the network. Intranets work just like public Web sites. Offices can include any text, graphics, and hyperlinks it chooses. Intranets can also provide access to external Web sites, even though external users cannot access the intranet. Secure intranets are now the fastest-growing segment of the Internet because they are much less expensive to build and manage than private networks based on proprietary protocols. Without Intranet computers are just useless boxes.

Intranet needs to be included in all your training programs and also used as a structure, which other departments can follow

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

The Job Analysis

Job analysis is the procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

Organizations consist of positions that have to be staffed. Job analysis produces information used for writing job descriptions—a list of what the job entails thus enwrapping duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities—and job specifications—what kind of people to hire for the job.

The supervisor or HR specialist normally collects one or more of the following types of information via the job analysis:

• Work activities. First, he or she collects information about the job’s actual work activities, such as selling, teaching, or painting. This list may also include how, why, and when the worker performs each activity.
• Human behaviors. The specialist may also collect information about human behaviors like sensing, communicating, deciding, and writing. Included here would be information regarding job demands such as lifting weights or walking long distances.
• Machines, tools, equipment, and work aids. This category includes information regarding tools used, materials processed, knowledge dealt with or applied (such as finance or law), and services rendered (such as counseling or repairing).
• Performance standards. The employer may also want information about the job’s performance standards (in terms of quantity or quality levels for each job duty, for instance). Management will use these standards to appraise employees.
• Job context. Included here is information about such matters as physical working conditions, work schedule, and the organizational and social context—for instance, the number of people with whom the employee would normally interact. Information regarding incentives might also be included here.
• Human requirements. This includes information regarding the job’s human requirements, such as job-related knowledge or skills (education, training, work experience) and required personal attributes (aptitudes, physical characteristics, personality, interests).

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Compelling Business Principles

The development of the business principles is a first stage for developing and raising the standards of practice in countering bribery. The fair business principles provide a practical tool to which companies can look for a comprehensive reference to good practice to counter bribery. Business principles are becoming an essential tool in the future for businesses and the companies of today should encourage using them as a starting point for developing their own anti-bribery systems or as a benchmark.

I had heard and even observed how corrupt practices are carried out in businesses that add the extras to win export orders. For toting up luster to the evenings of the visiting business partners particularly from Gulf States, they fix up their visits to discotheques and nightspots. They also maintain luxury flats outfitted with floozy beauties for making the stay of the business guests a unique affair.

Unfortunately, such unethical practices have sneaked into the system via some (not all) businesses in different countries. That’s what I personally experienced when once as member of a foreign business team visiting an Asian country and staying at a luxury hotel, a businessman tried unethical tricks to win business contracts. He called from the lobby and told about the undeserved and undesired gift he brought for me.

Years ago in a domestic flight to the capital in a country in Asia a passenger seated next to me told that he was visiting the capital about a government tender. He was confident that he would win the contract. When I asked about the source of his confidence he pointed to two girls seated in the rear and said, “Those butterflies (exquisite women) will make it happen.”

Most of companies contribute to election campaigns of this candidate or that. Interestingly sometimes some companies sponsor candidates of two opposing political parties. The idea is to get unjustifiable favors after the horse wins.

There can be endless list of such companies, which are ready to do anything to get business favors.

It is no mystery that a lapse in business ethics or even the appearance of one can significantly harm the reputation and business of a company. Once a company is suspected, accused, or found guilty of corporate wrongdoing, it often becomes subject to the scrutiny of governmental agencies, the corporate community and the general public.

Private sector organizations must now take account of increasingly stringent domestic and international regulatory frameworks. There is growing corporate awareness of the risks posed by bribery, particularly in the light of scandals, and the public is expecting greater accountability and probity from the corporate sector.

Emphasis needs to be laid on business principles for enterprises to prohibit bribery in any form whether direct or indirect. They should also commit to implementation of programs for countering bribery. These principles are based on a commitment to fundamental values of integrity, transparency and accountability. Firms should aim to create and maintain a trust-based and inclusive internal culture in which bribery is not tolerated.

Thus an enterprise’s anti-bribery efforts including values, policies, processes, training and guidance will become tools of future corporate governance and risk management strategies for countering bribery and unethical practices.

As part of civil society, at macro level, Federation of the Chambers of Commerce and Industry should work out a framework reflecting size of the companies, business sectors, potential risks and locations of operations. This should, clearly and in reasonable detail, articulate values, policies and procedures for preventing bribery from occurring in all activities under their effective control.

Such programs should be consistent with all laws relevant to countering bribery in all the jurisdictions in which an enterprise operates, particularly laws that are directly relevant to specific business practices.

At micro level each enterprise should develop programs in consultation with its employees, trade unions or other employee representative bodies. It should ensure that it is informed of all matters material to the effective development of the program by communicating with relevant interested parties.

While developing its program for countering bribery, the companies should analyze which specific areas pose the greatest risks from bribery. The programs should address the most prevalent forms of bribery relevant to each firm but at a minimum should cover areas such as bribes, political contributions, facilitation payments, gifts, hospitality and expenses.

A company should prohibit the offer, gift, or acceptance of a bribe in any form, including kickbacks, on any portion of a contract payment, or the use of other routes or channels to provide improper benefits to customers, agents, contractors, suppliers or employees of any such party or government officials.

It should also prohibit an employee from arranging or accepting a bribe or kickback from customers, agents, contractors, suppliers, or employees of any such party or from government officials, for the employee’s benefit or that of the employee’s family, friends, associates or acquaintances.

The enterprise, its employees or agents should not make direct or indirect contributions to political parties, organizations or individuals engaged in politics, as a way of obtaining advantage in business transactions.

Each company should publicly disclose all its political contributions, charitable contributions and sponsorships. It should ensure that charitable contributions and sponsorships are not being used as a subterfuge for bribery.

The enterprise should prohibit the offer or receipt of gifts, hospitality or expenses whenever such arrangements could affect the outcome of business transactions and are not reasonable and bona fide expenditures.

The board of directors, CEOs and senior management should demonstrate visible and active commitment to the implementation of the business principles.

The business organizations should assert elimination of bribery; demonstrate their commitment to countering bribery; and make a positive contribution to improving business standards of integrity, transparency and accountability wherever they operate. Business principles are going to evolve reflection of changes in anti-bribery practice as well as the lessons learned from their use and application by business.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Project Financing

Project Financing (PF) has emerged as an innovative and timely financing technique and is being used in many high-profile infrastructure projects. Employing a carefully engineered financing mix, it is used to fund large-scale projects, from communications, to telecommunications, and power to energy projects. It is a preferred alternative today. It will be foremost option of future.

PF holds great promise, which is just beginning to be realized as a means of financing projects designed to help meet the enormous infrastructure needs that exist in a developing countries.

Most infrastructure projects in developing countries are being funded by exchequer and thus in nearly all cases the construction of much desired projects are delayed due to lacking funds and deficient resources. Particularly when local governments are functioning full swing developing countries need to consider PF as a preferred choice.

PF can be arranged when a particular facility or a related set of assets is capable of functioning profitably as an independent economic unit. City governments (sponsors) of such a unit may find it advantageous to form a new legal entity to construct, own, and operate the project. If sufficient profit is predicted, the project organization can finance construction of the project on a project basis, which involves the issuance of equity securities (generally to the sponsors of the project) and of debt securities that are designed to be spell-liquidating from the revenues derived from project operations.

The intricacies of PF are formidable, and can easily be misunderstood and consequently, misused. While PF structures share certain common features, by necessity, they require tailoring the package to the particular circumstances of the project. That is where both the benefits and the challenges lie.

What distinguishes PF from conventional direct financing is that in PF, the project is a “distinct legal entity” and the financing is tailored to the cash flow characteristics of the project assets. Such a structure can yield a more efficient allocation of risks and returns than conventional financing, but careful financial engineering is critical.

It is a form of asset-based financial engineering. It is asset-based because each financing is tailored around a specific asset or related pool of assets. It involves financial engineering because, in so many cases, the financing structure cannot simply be copied from some other project. Rather, it must be crafted specifically for the project at hand.

PF is the raising of funds to finance an economically separable capital investment project in which the providers of the funds look primarily to the cash flow from the project at the source of funds to service their loans and provide the return and a return on their equity invested in the project. The terms of the debt and equity securities are tailored to the cash flow characteristics of the project. For their security, the project debt securities depend, at least partly, on the profitability of the project and on the collateral value of the project’s assets.

PF is not a means of raising funds to finance a project that is so weak economically that it may not be able to service its debt or provide an acceptable rate of return to equity investors. In other words, it is not a means of financing a project that cannot be financed on a conventional basis.

At the center is a discrete asset, a separate facility, or a related set of assets that has a specific purpose. This can include trash collecting trucks, toll roads, water supply and sewer projects, or some other item of infrastructure. This facility or group of assets must be capable of standing alone as an independent economic unit. The operations, supported by a variety of contractual agreements, must be organized so that the project has the unquestioned ability to generate sufficient cash flow to repay its debts.

PF can be advantageous to Pakistan when it has a valuable resource deposit, other responsible parties would like to develop the deposit, and it lacks the financial resources to proceed with the project on its own.

Commercial banks and life insurance companies have traditionally been the principal sources of debt for large projects. In the typical financing structure, commercial banks would provide construction financing on a floating rate basis, and life insurance companies would then provide “permanent financing” on a fixed rate basis by refinancing the bank loans following project completion. For infrastructure projects have become a high priority, commercial banks, having adjusted to the tighter capital standards, have expanded their role in PF. They advise as well as lend.

Multilateral agencies, such as the World Bank and IDB, and various agencies, such as Eximbank and OPIC, have also stepped up their funding of private infrastructure projects. Developing countries’ capital markets can also be a useful source of funds. Raising funds locally can reduce a project’s political risk exposure.

Most recently, through the financing of hundreds of independent power projects, it has become evident that PF is suitable for relatively low-risk projects that involve standardized nonproprietary technology.

PF has attracted growing interest as a means of obtaining capital. Its potential is perhaps greatest for the many large infrastructure capital investment projects that are on the drawing boards of many local governments. The projects are large and expensive, and the risks are great. But the potential benefits are enormous. Project financing could be the answer to the financial needs of such local governments.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Transformational Leadership

Transformational leadership is part of the new leadership paradigm, which gives more attention to the charismatic and effective elements of leadership. Transformational leadership is a process that changes and transforms individuals. It is concerned with emotions, values, ethics, standards, and long-term goals, and includes assessing followers’ motives, satisfying their needs, and treating them as full human beings. Transformational leadership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic and visionary leadership.

An encompassing approach, transformational leadership can be used to describe a wide range of leadership, from very specific attempts to influence followers on a one-to-one level to very broad attempts to influence whole organizations and even entire cultures. Although the transformational leader plays a pivotal role in precipitating change, followers and leaders are inextricably bound together in the transformation process.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Transformational Leadership

Transformational leadership is a process that changes and transforms individuals. It is concerned with emotions, values, ethics, standards, and long-term goals, and includes assessing followers’ motives, satisfying their needs, and treating them as full human beings. Transformational leadership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic and visionary leadership.

Transformational leadership gives more attention to the charismatic and effective elements of leadership

An encompassing approach, transformational leadership can be used to describe a wide range of leadership, from very specific attempts to influence followers on a one-to-one level to very broad attempts to influence whole organizations and even entire cultures. Although the transformational leader plays a pivotal role in precipitating change, followers and leaders are inextricably bound together in the transformational process.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact http://www.asifjmir.com