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 agency’s 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:
 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…
 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 employee’s performance
fails to meet expectations. Its purpose is to achieve
an improvement in performance.
 Contd…

 Individual development plan – An action plan for

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

 Performance appraisal – A confidential document

that includes the employee’s performance
expectations, a summary of the employee’s actual
performance relative to those expectations, an overall
rating of the employee’s performance, and the
supervisor’s and employee’s 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 (KRA’s) and assign mutually agreed
weightage expressed as a percentage
 Simple mathematical relationship between set
weightage and accomplishment gives a final
numerical score on KRA’s
 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
 KRA’s 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
superior’s 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 OBSERVING
ACTIONABLE BEHAVIOUR AND
COACHING & MEASURING
FEEDBACK 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