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Running head: PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND

METHODS

Performance Management Information System and Methods

Aashish Sthapit

BUS 362 : Performance Management

February 22, 2020

Professor Rajiv Sharma

Westcliff University
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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

Abstract

This paper introduces its readers about the performance management system which allows HR

professionals to evaluate employees based on their performance. Furthermore, it discusses the

effectiveness of implementing a performance management information system, and all the

benefits that comes along with it. Finally, this paper closes on exploring some of the widely

practiced tools and methods used to measure employee performance.

Keywords: performance management, information system, tools, methods.

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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

Introduction

It is important for any business organization to measure and evaluate its employees’

performance, and always look for an opportunity to improve the ways to accomplish them.

Performance management helps an organization gain competitive advantage as it enables an

organization to simulate its employee performance for the better, of course[ CITATION Agu13 \l

1033 ]. One of the core principle of performance management is to align the personal employee

goals with the organizational goals. The traditional style of evaluating employee performance

was completely paper-based, which was considered to be quite biased, stressful, and in ways

disorganized too. Since, organizations are rapidly integrating technology to assist with business

management processes, newer tools and methods have been created to help the ease the process

of performance management in an organization[ CITATION Dav03 \l 1033 ]. The annual

performance appraisal was quite robust, and the rise of new performance management tools have

made it considerably easier to update the employee performance records on a day-to-day basis.

Performance Management Information System

By integrating a performance management information system, an organization will be

able to speed up the whole performance management process, and produce accurate and fair

reviews. According to a recent study, almost 70% of the organization worldwide have adopted

some sort of performance management information system, and this modern version of HR tool

is responsible for increasing employee productivity by 125%[ CITATION Van12 \l 1033 ]. The

impact of implementing a PMIS can be seen on the lowering turnover rate of organizations as the

prompt feedback features have helped maintained a stronger employer-employee relationship.

Some of the key benefits of having installed a performance management information system has
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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

been given below:

a) Regularity: The tradition version of performance management system which used to be

paper-based was quite irregular. Companies only adopted annual appraisals, and it

doesn’t seem fair to evaluate an employee performance only at the end of the year. PMIS

enables the HR department to continuously measure and evaluate the performance of its

employees all around the year.

b) Frequency: Feedbacks are an important part of any job. An employee must be aware of

their drawbacks, as well as need recognition for their hard-work. Through PMIS,

managers can provide constant feedback to the employees, and in return the employees

can also provide feedbacks to the managers. In addition to increase in frequency of

feedbacks, a PMIS can assist an organization to offer a 360-degree performance review,

and also improve the communication between its employees[ CITATION Esp131 \l 1033 ].

c) Training: After evaluating the performance of its employees on a regular basis, the report

will help the HR professionals identify specific training requirements for specific

employees. For instance, if the sales team are found to be performing poor while

negotiations with clients. The HR department can easily identify these pitfalls through

performance reviews and feedbacks, and can instantly act upon by providing a training

opportunity to improve the negotiation skills of these employees[ CITATION Kro15 \l 1033

].

d) Automated Reports: Over a specific period of time, the PMIS is print out automated

reports. It will update the HR department about the constant progress made by each
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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

employee. Also, having a PMIS enables the organization to easily access the records

related to employee performance since they are now digitally stored.

There are various PMIS an organization could opt for to optimize its performance

management processes. One of the highly used form of PMIS is Engagedly which allows an

organization to keep track of employee goals, check-in with their progress, link with

compensation management system, and provide 360-degree feedbacks. Other quite famous PMIS

include BambooHR, Workday, and Kissflow HR.

Key Tools for Performance Measurement

There are various tools which makes the process of performance management much

easier and conventional. Some of the key tools used by organizations for the purpose of

measuring and evaluating its employee performance has been discussed below:

a) Key Performance Indicators (KPI) : The main function of Key Performance Indicators

(KPI) is to align performance measures to achieve an organization’s strategic

goals[ CITATION del03 \l 1033 ]. It helps identify the skills, traits, and level of

performance required by the workforce to get the job done. Performance indicators are

identified, and employees are allowed to set a goal. Based on the completion of the goal,

the performance of an employee is evaluated. Depending on the job responsibilities of an

employee, different targets are specified to different employees. For an employee

working in the sales department, his/her performance may be indicated by number of

successful clients. However, the success of marketing campaigns might be the key

indicator to review performance of the marketing team.

b) Performance Appraisals: Performance appraisals are the most common tool of

performance measurement[ CITATION Tsa98 \l 1033 ]. The employees set their primary
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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

goals which contributes toward organizational productivity, and based on a goal-setting

theory; employee performance is rated or evaluated by managers, and HR professionals.

However, it is necessary for organizations to make sure that the appraisals are honest, and

encourages a two-way conversations between the employee and management.

c) 360 Degree Feedback: 360 degree feedback is a modern version of performance

management tool which involves making employee performance evaluation based on the

inputs of the managers, co-workers, customers, associates, and other stakeholders. It

helps get an all-round perspective on an employee performance, and this method is quite

useful to determine training opportunities. An employee performance is compiled, and

HR professionals discreetly present feedback to the employees based on the reviews. This

method makes the evaluation of employee performance quite fair.

d) Management by Objectives (MBO): In this method, the HR department keeps a certain

expectation from individual employee, and assign with objectives. Based on the

completion of these objectives, this method is useful for employees who have to perform

specific job. Once each of the objective is achieved, the management will be informed

about the achievements. Providing objectives and encouraging employees to achieve

them will help boost staff morale and motivation as well.

e) Reward and Recognition: An organization must be able to provide a motive that will

encourage employees to improve their performance. If their efforts go unrecognized,

employees might feel discouraged and it will hamper their performance. As a result,

many organizations employ reward and recognition programs where they reward the

high-performers. It will motivate other employees as well.

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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

Conclusions

With the use of the right software, the HR department or related managers are even able

to provide feedbacks to its employees on a regular basis. While many companies may be able to

afford complex software to help assist with its performance management tasks, smaller business

can opt for medium-scaled or budget-friendly web applications to support its performance

management system.
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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

ALA (T) – Topic Video Review

Many organizations have been successful to build their own information system to help

assist the function of performance management. The use of information technology helps reduce

the human hassle, and provide accurate storage and evaluation options. In the earlier assignment,

I came to learn about IBM developing their own information system to measure and evaluate

employee performance. This given video also talks about such PMIS developed by Adobe

known as “Check-In”. It’s an application which is accessible to all employees working at Adobe,

and based on the reviews of the employees; they find it very useful.

This application allows the employees to set their goals, and communicate with their

respective managers. They constantly get feedbacks and suggestions from their managers which

have impacted their performance and motivation level. Not only that, the program has fostered

the organizational communication as well. Hence ,the benefits of a PMIS are many and it even

has functional linkage with other aspect of HR such as employee compensation, and employee

development.
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PERFORMANACE MANAGEMENT INFORMATION SYSTEM AND METHODS

References

Aguinis, H. (2013). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.

Davenport, T. H., & Short, J. E. (2003). Information technology and business process redesign.

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del-Rey-Chamorro, F. M., Roy, R., van Wegen, B., & Steele, A. (2003). A framework to create

key performance indicators for knowledge management solutions. Journal of Knowledge

Management, 7(2), 46-62.

Espinilla, M., de Andrés, R., Martinez, F. J., & Martinez, L. (2013). A 360-degree performance

appraisal model dealing with heterogeneous information and dependent criteria.

Information Sciences, 222, 459-471.

Kroll, A., & Moyniham, D. P. (2015). Does training matter? Evidence from performance

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Tsang, A. H. (1998). A strategic approach to managing maintenance performance. Journal of

Quality in Maintenance Engineering, 4(2), 87-94.

Van de Voorde, K., Paauwe, J., & Van Veldhoven, M. (2012). Employee well‐being and the

HRM–organizational performance relationship: a review of quantitative studies.

International Journal of Management Reviews, 14(4), 391-407.