PERFORMANCE IMPROVEMENT PROCESS (PIP) 1. Objective: To improve employee’s performance to expected levels. 2. Scope: This covers all employees of AFL, who are on probation and due for confirmation. 3. Interpretation & Approvals: Head – HR will have the final authority interms of interpreting any clause(s)/portions of this policy document. Any changes to this policy /Annexure document have to be approved by Head – HR. 4. Guidelines & Process: (a) Entry Criteria: 1. Employees rated “C” (Unsatisfactory) or “B (Development Needed)” in the performance feedback process. Assessor along with HR Partner will identify employees under these criterion. 2. Any other areas of improvement observed including behaviour/integrity/attitude that needs to be addressed for maintaining performance culture. 3. Employees who are not meeting expectations in the stretch role or due to skill mismatch will NOT be put on PIP (performance grounds) (b) Important Notes: For the purpose of Company’s notice period notification as per the clause 3 ( c ) and 4 under the terms & conditions of employment, the day of initiation of PIP process will be considered as start date for notice period. However, this will not be applicable if employee scales up in performance to expected levels during PIP process. (i) The PIP period will be for a maximum of two months or 60 days from the date of decision. (ii) PIP Review Team comprises of Reporting Manager (Assessor), Reviewer and HR partner. (iii) Behaviour refers to the manner of conducting oneself. So, behavioural aspects relating to self-conduct are governed by PIP. They may be rectified by counseling, undergoing soft skill training etc., (iv) If employee resigns during PIP, it will be considered as normal resignation.

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v) If there are any concerns raised by employee regarding reviews, HR Partner will play the role of neutral party and facilitate discussions.

5. PIP Process Steps 1 PIP Initiation for the Identified Employee

2 Working on the PIP Plan

3

4

Review 1

Review 2

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Activity Documentation of the action items/objectives/required behaviours (hereinafter referred as “action items”) with appropriate measurement criteria & timelines along with schedule for follow-up discussions. Interim updates to be provided to Assessor on the agreed action items in the standard PIP Plan format Employee to meet the Assessor on the scheduled 1st review date (which is generally the 30th day of starting the PIP process) with status updates against each action item and request for review. Assessor to review the action items and provide and document his/her inputs Employee to meet the Assessor on the scheduled 2nd review date (which is generally the 45th day of starting the PIP process) with status updates against each action item and request for review. Assessor to review the action items and provide and document his/her inputs

Responsibility Assessor & Employee

Employee to meet the Assessor on the scheduled

Employee, Assessor, HR Partner

Employee

Employee, Assessor, HR Partner

Employee, Assessor, HR Partner

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4 Final Review

5 PIP process completion

Final review date with status updates against each action item and request for review. Assessor to review the action items and provide and document his/her inputs. On the final review date, Employee, Assessor,HR employee is either moved Partner out of PIP and receives confirmation of his employment or will be terminated.

Roles & Responsibilities: (a) Employee: Employee is required to cooperate, update and approach the Reporting Manager or HR Partner for support during any stage of PIP Process. He/She is required to acknowledge all email communication from Assessor (Reporting Manager). It is deemed understood that employee is in receipt of updates/relevant communication at each stage along with HR Partner unless he/she informs the Assessor or the HR Partner for lack of communication. (b) Reporting Manager (Assessor): Reporting Manager will play a key role in terms of providing feedback, counseling, supporting employee in all possible ways (within his/her purview) and help identify action items with evaluation terms. He/She will enable documenting the progress post each meeting and sharing review comments. Reporting Manager is encouraged to use the standard format (s)/template (s) provided. (c) Reviewer Reviewer will be informed on all important decisions. However, Reviewers approval is required for enforcing Reporting Manager (Assessor’s) inputs on final PIP review discussion. (d) HR Partner HR Partner will facilitate discussions for initiating PIP, conduct one-on-one with Employee immediately upon initiating PIP process and subsequently act on action items, if any. HR Partner is the primary consultant and helps customize formats or help interpretation of clauses under this Policy, as required.

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Annexure – I Performance Improvement Plan (PIP) – Documentation of Action Items

Sl. No.

Action Items [Competency /Skill Enhancement required (in Detail)]

Measurement Agreed Expected Criteria Timelines ratings by the Assessor

Review I

Review II

(Ratings) (Ratings)

I agree to the Action Items, measurement criteria, agreed timelines and expected ratings mentioned in the above document.

Employee’s Signature: Date.

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Assessor’s Signature: Date:

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*Review – I I agree to my first review feedback.

Employee’s Signature: Date:

Assessor’s Signature: Date:

*

**Review – II I agree to my second and final review feedback and appropriate action plan discussed with me.

Employee’s Signature Date:

Assessor’s Signature: Date:

Reviewer’s comments and signature: **

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