SUBMITTED TO:

Prof. Pradeep Kamath HR Planning & Audit

SUBMITTED BY:
Shaikh Ambreen 09 - HR

Performance Management System

It is an organizations 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)

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 ?

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:
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.

PMS:
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
1. 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. 2. 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

3. 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.

4. 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

5. 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.

6. 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
1. Performance Standards - establishment of organizational or system performance standards, targets and goals and relevant indicators to improve public health practice

2. Performance Measures - application and use of performance indicators and measures

Contd

3. Reporting of Progress - documentation and reporting of progress in meeting standards and targets and sharing of such information through feedback 4. 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 appraise 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 appraise.

FURTHER LINKS EMERGING FROM THE PMS

Rewards and Recognition

Training and Development

Potential Appraisal Career and Succession Planning