Implementing Performance Management Systems

Development of a Performance Framework

PERFORMANCE AGREEMENT
CONTEXT

PERFORMANCE REVIEW

CONTENT

Procedures Guidelines Documentation

PROCESS

Objective Setting Feedback / review MANAGING PERFORMANCE THROUGHOUT Counseling / Coaching

THE YEAR

PERFORMANCE PLAN

Culture Management Style Structure

Steps PM Development Programme

Conduct a diagnostic review Set Objectives for Performance

Management
Prepare

and carry out Development Programme

Diagnostic Review
Context

data on stakeholders, organizational culture and competencies, management style, management structure, systems and processes, strategic plans, critical success factors. Strengths and weaknesses of the current arrangement Diagnosis of what needs to be done, why and how. Assessment of costs and benefits

Drivers for Introducing PM

Can

be any one or more of the following

Build / Reinforce Performance culture Integrate the organisation Improve performance Develop competencies Provide information for driving R & R programmes Increase / Sustain Motivation Empower people Align individual objectives to group objectives Extra channel of communication

Procedural points

How to do it?
In a highly decentralised organisation,

Who should be covered? Different approaches according to level

separate business units may be allowed to decide for themselves In a decentralised organisation, the central management may require the divisions to design in agreement and accordance with certain general principles Most common and successful method is to set up a project team or working group with management and staff representatives.

Design points
The

process model performance agreement Use of objectives and competencies (how will competencies be defined and measured) How will objectives cascade down; how teams and individuals will contribute Link to PRP if any Ratings if any What performance measures will be used Documentation How much flexibility will be allowed in the system

Development & Implementation points

People

who will be involved in the programme their responsibilities Timetable for development and implementation Arrangement for communication and training to employees Pilot scheme arrangement Success criteria Arrangement to monitor and evaluate implementation

What are the indicators of a system working well?

80%

plans are completed without follow up Line managers spend time with their employees Clarity of goals to people People look forward to Performance Review discussions Organisational support is there Performance culture

COMMONLY MADE MISTAKES IN IMPLEMENTING PERFORMANCE MANAGEMENT SYSTEMS.

Not having the right emphasis.

Most

performance management systems pretend to be what they claim but actually end up emphasizing performance appraisals or ratings. Hence the overemphasis on numbers is the first problem in the performance management systems.

Poorly designed performance management systems and formats.

Poorly

designed PMS may take many forms. The poverty of the design is also reflected in the spacing and such other layout.

Multiple objectives make a mess.

Aiming

at multiple objectives creates an impression that PMS are magic wands. Multiple objectives seem to raise the expectations of line managers and bring subsequent disappointment.

Multiple components may make it a sophisticated system

Just

like objectives PMS can have a number of components. They should not be overplayed, they should be internalized.

Over Committing and Under Delivering

Over

criticism of the past and over projection of the new or changed system as the panacea for all past problems Most of the time the previous system did not work well. Over criticism of the previous system raises expectations from the present system.

System introduction with fanfare

They

forget that the real work begins after introducing the new system. Inadequate efforts made at the Implementation

Lack of organizational support

Support

may be terms of basic work conditions , resources, facilities, inputs from internal customers. The HR department should act like an OD facilitator.

Lack of competencies in HR department

Business

sense and involvement in the main business of the organization. Counselling skills System building and monitoring skills Interest in working with the line managers.

Image of the HR department

Another

major hurdle is the image of the HR department. It is also important to create and promote a sense of ownership among the line managers.

Lack of follow up on the part of the HR department

The

follow up could take the many forms. It should be done both at the individual level and at the primary group level.

Top Management Commitment

Lack

of time for the senior managers to plan their own or their subordinates performance.

Past experience with all the systems

Most

of the systems introduced earlier were disasters. In such organizations there are inherent difficulties in making the system work.

Nature of the system

PMS

has some inherent issues, which make it difficult for all people to appreciate. It needs continuous reinforcement, reassurance and renewal to keep it alive and productive.

THANK YOU