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Performance Management System

A performance management system (PMS) is an organization-wide program that provides a structured approach to communicate business strategy, establish performance expectations, facilitate self-management, and measure and motivate performance. A PMS consists of setting employee performance expectations, maintaining ongoing performance dialogue, conducting annual performance appraisals, addressing underperformance, encouraging development, and resolving disputes. Key aspects of a PMS include work plans, corrective action plans, individual development plans, performance appraisals, documentation, and fair evaluation. The overall goals of a PMS are to improve individual, team and organizational performance and link employee performance to rewards.

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Shreedhar Deshmukh
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57 views22 pages

Performance Management System

A performance management system (PMS) is an organization-wide program that provides a structured approach to communicate business strategy, establish performance expectations, facilitate self-management, and measure and motivate performance. A PMS consists of setting employee performance expectations, maintaining ongoing performance dialogue, conducting annual performance appraisals, addressing underperformance, encouraging development, and resolving disputes. Key aspects of a PMS include work plans, corrective action plans, individual development plans, performance appraisals, documentation, and fair evaluation. The overall goals of a PMS are to improve individual, team and organizational performance and link employee performance to rewards.

Uploaded by

Shreedhar Deshmukh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Performance Management

System

Performance Management System

It is an organization - wide management program


that provides a structured approach to:
Communicate business strategy
Establish a shared understanding of what is to be
achieved and how it is to be achieved
Facilitate management of self and others
Measure and motivate performance
(organizational and individual)

Contd

Performance Management A management


process for ensuring employees are focusing their
work efforts in ways that contribute to achieving
the agencys mission. It consists of three phases:
(a) setting expectations for employee performance,
(b) maintaining a dialogue between supervisor and
employee to keep performance on track, and
(c) measuring actual performance relative to
performance expectations.

PMS Consists of

A process for communicating employee performance


expectations, maintaining ongoing performance dialogue,
and conducting annual performance appraisals;

A procedure for addressing employee performance that


falls below expectations;

A procedure for encouraging and facilitating employee


development;

Training in managing performance and administering the


system; and

A procedure for resolving performance pay disputes.

WHY MEASURE PERFORMANCE ?


Because
What you cannot measure you cannot improve.
If you cannot improve you cannot grow.
Measurement helps in objectively differentiating
between performers and non performers.
Pay for performance is possible only through
metrics.

Objective of PMS

To confirm the services of probationary employees upon


their completing the probationary period satisfactorily
To check the effective & efficiency of individuals, teams
& organization
To effect promotions based on competence and
performance
To access the training and development needs of the
employees
To decide upon the pay rise
PM can be used to determine whether HR programmes
such as selection, training, and transfer have been effective
or not.

PAS & PMS

PAS:

PMS:

Emphasis is on relative
evaluation of individuals
Annual exercise
Rewards & recognition of
good performance
Designed & monitored by
HR department
Ownership is mostly with
the HR dept.

Emphasis is on performance
of individuals, team & orgn.
Continuous process
Performance rewarding may
or may not be integral part
Designed by HR dept. but
monitored by respective dept.
Ownership is with the line
managers, HR facilitates its
implementation

PMS Includes

Work plan A document that describes the work


to be completed by an employee within the
performance cycle, the performance expected, and
how the performance will be measured.

Corrective action plan A short-term action plan


that is initiated when an employees performance
fails to meet expectations. Its purpose is to achieve
an improvement in performance.

Contd

Individual development plan An action plan for


enhancing an employees level of performance in
order to excel in the current job or prepare for new
responsibilities.

Performance appraisal A confidential document

that includes the employees performance


expectations, a summary of the employees actual
performance relative to those expectations, an overall
rating of the employees performance, and the
supervisors and employees signatures.

Contd

Performance documentation A letter, memo,

completed form, or note on which the supervisor


indicates the extent to which the employee is
currently meeting expectations and provides evidence
to support that conclusion.

Fair appraisal Appraising employees in a manner

that accurately reflects how they performed relative to


the expectations defined in their work plan and in a
manner that is not influenced by factors irrelevant to
performance.

HIGHLIGHTS OF THE SYSTEM

The appraiser and the appraisee jointly set the Key


Result Areas (KRAs) and assign mutually agreed
weightage expressed as a percentage
Simple mathematical relationship between set
weightage and accomplishment gives a final
numerical score on KRAs
To evaluate all management personnel on company
values and leadership attributes a new section has
been added entitled Values in Action

WHAT IS A KEY RESULT AREA ?

A KRA refers to a target that needs to be achieved by


the appraisee in a given time
KRAs are the set of performance expectations from
the appraisee
The focus is on tangible outputs. However this does
not mean that tasks that have a qualitative output
cannot form a KRA
The focus is on tangible outputs. However this does
not mean that tasks that have a qualitative output
cannot form a KRA

Setting KRA in case of a Functional


Reporting Relationship

Functional reporting cases will require input from the


functional superior in setting KRAs for the appraisee.
The appraiser , the appraisee and the functional superior
will have to mutually agree upon the KRAs for the
appraisee.
In case of a disagreement , it will be the functional
superiors responsibility to convince the administrative
superior to reach an agreement on the KRAs and
communicate the same to the appraisee.
In some cases, functional goals could be super-ordinate
to business goals.

Components of PMS

Performance Standards - establishment of


organizational or system performance standards,
targets and goals and relevant indicators to improve
public health practice

Performance Measures - application and use of


performance indicators and measures

Contd

Reporting of Progress - documentation and


reporting of progress in meeting standards and
targets and sharing of such information through
feedback

Quality Improvement - establishment of a program


or process to manage change and achieve quality
improvement in public health policies, programs or
infrastructure based on performance standards,
measurements and reports.

Importance of PMS

A Performance Management System enables a


business to sustain profitability and performance
by linking the employees' pay to competency and
contribution .
It provides opportunities for concerted personal
development and career growth .
It brings all the employees under a single strategic
umbrella .

Contd

Most importantly, it gives supervisors and


subordinates an equal opportunity to express
themselves under structured conditions
Organizations can effectively manage the
performance appraisal process with our online
performance management system
It calls for a high level of co-ordination, channeled
information flow, and timely review

Performance Cycle

SETTING
EXPECTATIONS

PROVIDING
ACTIONABLE
COACHING &
FEEDBACK

OBSERVING
BEHAVIOUR AND
MEASURING
RESULTS

Appraise Need For Further


Discussion

The reviewer meets the appraiser to investigate the


point of disagreement.
The reviewer decides to meet the appraisee to hear
his / her views.
The reviewer examines the case and communicates
his / her decision to the appraiser.
The appraiser communicates the decision of the
reviewer to the appraisee.

FURTHER LINKS EMERGING


FROM THE PMS

Rewards and Recognition

Training and Development

Potential Appraisal

Career and Succession Planning

THANK YOU

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