Q.4. PERFORMANCE MANAGEMENT SYSTEM Components of PMS Q.5.

PfM THEATRE & PfM PROCESS Performance

Management System
Performance Management System is a powerful Performance management system (PMS) as a whole is Performance management system (PMS) as a whole is a
management tool that help management to a series of activities consisting of the following series of activities consisting of identification of critical
perform the Performance Management Process components: performance dimensions, planning of performance,
1. Performance Planning: During performance setting of performance goals and objectives,
Performance management is a continuous process
planning, the employees decide upon the targets and reviewing performance, sharing feedback, and
of identifying, measuring and developing
the key performance areas which can be performed finally developing the future performance through
performance in organisations by linking each
over a year, which is finalized after a mutual training.
individual’s performance and objectives to the
agreement between the reporting officer and the PMS, therefore, is a set of tools and techniques
organisation’s overall mission and goals.
employee. to improve the organizational performance. To
The Performance Management Process 2. Performance Appraisal and Reviewing: In sustain a competitive advantage, organizations need
this process, the appraisee submits the self- to recruit the best-fit and at the same time to focus on
Performance management is a continuous process appraisal form and also describes his their continuous development so that they do not
of planning, monitoring and reviewing employee achievements over a period of time in quantifiable become redundant and obsolete in their skills and
performance. terms. The final ratings are provided by the knowledge.
Phase 1 — Plan appraiser. PMS provides opportunities for personal development
3. Feedback & Counselling on the Performance: and career growth, bringing all the employees under a
The planning phase is a collaborative effort involving This is the stage in which the employee receives single strategic umbrella.
both managers and employees during which they will: feedback from the appraiser about the areas of PfM THEATRE
improvements and also information on whether the In his book Managing as a Performing Art: New Ideas for
Review the employee’s job description to employee is contributing the expected levels of a World of Chaotic Change Peter B Vaill parallels the
determine if it reflects the performance or not. The feedback also identifies the act of management with a performing art.
work that the employee is currently doing. training and development needs of the employee. According to him the management and leadership are
4. Rewarding good performance: During this no freestanding functions, which can be visualized
Identify and review the links between the stage, an employee is publicly recognized for good irrespective of the perception and the style of people in
performance and is rewarded. This may have a positions of management or leadership and the concept of
employee’s job description,
direct influence on the self-esteem and achievement success cannot be de-linked from the value systems of
his work plan and the organization’s goals and
orientation. those involved in the process of performing.
objectives.
5. Performance Improvement Plans: In this
stage, fresh set of goals are established for an Vaill offers a process model of a manager's role –
Develop a work plan that outlines the deliverables
employee and new deadline is provided for performed by a whole person in a whole environment in
and standards that will be used to evaluate
accomplishing relation to other whole persons, with all actions viewed
performance.
as concrete processes, and the entire process
6. Potential Appraisal: By implementing
thoroughly covered with turbulence and change.
Identify three to five areas that will be key competency mapping and various assessment
Pillars of PfM Theatre
performance objectives for the year. techniques, potential appraisal is performed.
Some invisible, but powerful, value-based
Potential appraisal provides crucial inputs for
processes support the PfM Theatre as its pillars.
Identify training objectives that will help the succession planning and job rotation.
Essentially, these integrate the system to deliver what it
employee grow his or her skills, knowledge, and Features of PMS: The main features of PMS can be
promises: overall performance of the organization,
competencies related to their work. outlined as follows:
constituting optimal performance of all its parts,
a. Focus on Objective Setting: Objectives are the
large or small, representing their most appropriate
Identify career development objectives that can be targets, which an organization sets for its
fit.
part of longer-term career planning. employees. PMS helps saturate these These processes are explained here:
organizational objectives to the employee level.
a. Goal Congruence: Goal Congruence means
Phase 2 — Monitor b. Systems for Review of Objectives: Through the that the goals of all roles and aggregations of roles
process of periodic performance review, PMS helps are such that these converge on the overall
For a performance management system to be effective, keep track of achievement of objectives. Review of
employee progress and performance must be organizational goal or purpose, creating space for
objectives helps in performance control and productive synergy in the process.
continuously monitored. initiates steps to correct deviation in performance or b. Win-Win Approach: Win-Win Approach
to revise the targets. means generating and preserving synergy, by
During this phase, the employee and manager should c. Developing Personal Improvement Plans: Since
meet regularly to: avoiding dysfunctional competition. Dysfunctional
PMS helps in individual performance monitoring, competition places the different interdependent roles
it ensures developing of personal improvement in the organization and their interdependent structured
Assess progress towards meeting performance plans for the employees.
objectives aggregations ultimately result in no- win for all
d. Training and Development: As the focus of PMS concerned.
is to manage and develop employee performance to c. Mutual Trust: Mutual Trust means that all the
Identify and overcome any barriers that may sustain competitive advantage of the organization roles and their structured aggregations relate and interact
prevent the employee from accomplishing through proper alignment, it helps in identifying with each other; practicing a shared belief that each of them
performance objectives training and development needs. will act only in a manner that is also conducive to the
#Share feedback on progress relative to the goals e. Ensuring Formal Appraisal with Feedback: By interests of the other relevant people.
Identify any changes that may be required to the work d. Dyadic Communication: Dyadic
introducing a formal appraisal system, PMS helps in
plan as a result of a shift in organization priorities or giving performance feedback to employees. Both
Communication means communicating with relevant
others, on a one-to-one basis, honestly, without
change in responsibilities negative and positive feedback sensitize employees defensiveness or hidden agenda, to share and resolve issues
and help them to objectively analyse their shortfalls and problems at dyadic levels and to promote bilateral
Determine if any extra support is required from the and positive aspects. collaboration.
manager or others to assist the employee in achieving f. Compensation Review: Performance based pay is e. Data Exchange: Data Exchange means timely sharing of
his or her objectives the prevailing concept. PMS used it in objective accurate and relevant information openly and authentically
Identify any changes that may be required to the work designing of compensation packages for employees,
with others in the organization.
plan as a result of a shift in organization priorities or thus rewarding good performance and reducing the These processes lubricate the system and if promoted,
change in responsibilities performance linked pay of non-performers. facilitate the manager’s task of systematically developing and
g. Developing Competence-based leading high-performing teams.
Determine if any extra support is required from the Organizational Capability: Competence based The Process of PfM: The process of Performance
manager or others to assist the employee in achieving organizational capability helps in appropriate Management is comprised(1) Planning Managee Performance
his or her objectives organizational change, keeping pace with and Development;
Phase 3 — Review competition. It also helps in human resource (HR)
2) Monitoring Managee Performance and Development and(3)
Annual Stock Taking.
planning. these occur in a specified sequence. Planning is made at the
The performance appraisal meeting is an opportunity
Benefits of a Performance Management System beginning of the year while monitoring and mentoring is
to review, summarize
Organization’s Benefits: Improved organizational continued throughout the year as the plans are executed.
& highlight the employee’s performance over the
course of the review period. In the performance performance, employee retention and loyalty, Stocktaking takes place at the end of the year.
improved productivity, overcoming the barriers to Performance standards naturally cascade from organizational
assessment meeting, employees and managers will: mission, goals, strategy and operational plans. Since performance
communication, clear accountabilities, and cost
Summarize the work accomplished during the management aims to improve quality of coordination among
advantages.
previous year relative to the goals that were set at the people in the organization, role- wise performance plans and
Manager’s Benefits: Saves time and reduces conflicts,
beginning of the performance period. expectations must flow from both.
ensures efficiency and Organization‘s mission, strategy and operational plan,
Document challenges encountered during the year and individual managee’s role and his/her contribution to
organizational process are basic inputs to performance plans. The
and identify areas for training and/or development
performance plans of all the managee’s in the organization must
finally add up to the organizational goals to be achieved
Identify and discuss any unforeseen barriers to the during the year. Managee’s performance and development plans
achievement of the objectives are subjected to monitoring and mentoring.
Stock taking both periodical and annual attempts to continuously
assess the extent of work as well as learning opportunity that
have been optimally avail by the managee. Inputs to
stocktaking are provided by performance plans and monitoring
and mentoring records. Stock taking also provides several
inputs to future performance plan. Review in task assignments,
task systems and tools are also possible through stocktaking. An
assessment of managee’s development needs of future tasks and