Performance Management

System
 Performance
Management Cycle
 Performance Management System

Performance Management is a process for establishing a shared understanding

(two-way communication between employee and supervisor) about what is to
be achieved and how it is to be achieved, and an approach to managing people
that increases the probability of achieving success.

Performance Management is a continuous improvement process, which defines,

develops, reviews and recognizes performance and supports the individual, the
business unit and the entire organization.
 Principles of PMS

• Performance Management is a comprehensive process which:

- aligns individual, team and organizational objective.
- informs compensation
- supports individual and career development

• Good performance management is based on continuous, honest and constructive

dialogue between supervisors and employees.

• Goals and objectives, as laid out at the beginning of the appraisal process, should be
SMART: Specific, Measureable, Attainable, Relevant and Timed.
 Solution
- Competency Performance System

- SMART Goals + Competencies

- Trainings on PMS

- Timely Review (Quarterly – Mid Year)

Performance Management - SMART GOALS

PP: 1
P: 2
E: 3
SMART GOALS Weighting Actual Achievement Supervisor Weighted Rating
(A) Rating (B) E = (A*B)

35% 3 1.05

15% 2 0.3
20% 2 0.4
20% 1 0.2
10% 3 0.3
Total 100% 2.25
Core Behavioral Competency
 Core Behavioral Competency

PP: 1
P: 2
E: 3

Competencies Performance Supervisor Weighted

Weighting (C) Rating (D) Rating
F = (C*D)
C 20% 3 0.6
DM 10% 3 0.3
PO 10% 2 0.2
RF 20% 2 0.4
R 20% 1 0.2
TA 20% 3 0.6
Total 100% 2.3
 Performance Agreement

SMART GOALS: 70%

Core Competencies: 30%

PP: 1
P: 2
E: 3

Weighted Rating for GOALS Weighted Rating for Competencies

E * 70% = 2.25 * 70% F * 30% = 2.3 * 30%

1.575 0.69
 Rating Scale

OVERALL PERFORMANCE SCORE

(Goals + Competencies)
1.575 + 0.69 = 2.26

Rating Scale
Up to 1.49 Partially Performing
1.50 - 2.59 Performing
2.60 – 3.00 Excelling
 Activity

Conduct a Competency based Performance Appraisal Interview?

- SMART GOALS
- Competencies
- Final Rating