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Program Semester Subject Code Subject Name Unit number

: MBA : IV : MU0016 : Performance Management and Appraisal :2

Unit Title
Lecture Number Lecture Title

: Practices in Performance Management


System :2 : Practices in Performance Management System

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Unit-2 Practices in Performance Management System

Practices in Performance Management System

Objectives :
To explain performance management system. To list out the performance management system and appraisal practices in India and other countries. To state a shift in viewing performance management as a system approach to a spiritual approach.

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Unit-2 Practices in Performance Management System

Lecture Outline
Introduction Performance Management System Components of Performance Management System

Performance Management System and Appraisal Practices in


India Performance Management System and Appraisal Practices in Asian Countries

Performance Management System and Appraisal Practices in


Other Countries Performance Management from System to Spiritual Approach Recent Trends in Performance Management System

Summary
Check Your Learning Activity
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Unit-2 Practices in Performance Management System

Introduction
Organisations do not survive if people do not perform. Performance management is a continuous process. A set of interacting components is called a system. In this session we will discuss the: Performance management system. Various performance management systems. Appraisal practices in various countries.

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Unit-2 Practices in Performance Management System

Performance Management System


Performance management system is used to measure performance of employees and reward employees who accomplish company

objectives.
Both people and systems must work together to ensure that right things happen for performance management to be effective. Performance management system helps to integrate plan, review, financial management and improvement systems to allow policymakers and managers to take the right decisions and improve

services.

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Components of Performance Management System

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Performance Management System in India


The situation of performance management system in India is characterised by the following points:

Private and public sector organisations follow trait-based,


confidential formats of performance appraisal. Most of them are dissatisfied with such type of appraisals. Recognition of personnel function.

Managers and employees want open systems of appraisals.


There is no recognition of HRD roles in organisation.

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Unit-2 Practices in Performance Management System

Performance Management System and Appraisal Practices in Asian countries


Malaysian performance management and appraisal system is similar to Indian performance management and appraisal system. In Japanese organisations performance appraisal should be understood in the framework of Zen philosophy and Japanese management styles. There are management systems and practices like management by objectives, management information systems, and budgeting financial controls are present in the Philippines. In Singapore, the National Productivity Board of Singapore has promoted open appraisal system.

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Unit-2 Practices in Performance Management System

Performance Management and Appraisal Practices in Other Countries


The performance management in: The US focuses mainly on documentation, development and relating performance appraisal with pay and promotion. The Pacific Rim focuses on development. Japan focuses on development and encourage subordinate expression. Korea and Australia focuses on development and promotion.

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Performance Management from System to Spiritual Approach


The spiritual approach of performance management focuses on :
Understanding that performance management is not an event, but a continuous process. Performance management requires an understanding, a desire and discipline. Understanding of ones self, motives, interests, responsibilities. A desire to discover and apply oneself.

Unit-2 Practices in Performance Management System

Understanding of the limitations of organisations as well as opportunities provided by organisations to discover and apply oneself.
Values of self-discipline, desire to improve and learning. Organisational culture and is centred around people.
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Recent Trends in Performance Management System


The recent trends in a performance management system are : Than appraisal, focus is more on improvement and development. Shift to qualitative assessment from quantitative assessment. Importance is given to process than formats. Emphasis is given to learning and development, empowerment and growth and problem solving. To facilitate learning from each other technology is used. Key performance areas, performance plans are published on the local network so that they can be easily accessed by all.

Unit-2 Practices in Performance Management System

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Summary

Performance management system is a management tool which is used to evaluate employee performance and reward employees who accomplish organisation objectives.

Performance

management

and

performance

appraisal

systems

practices are different in different countries. If one system fails, another system has to be implemented along with the spirit to ensure the implementation of new system. It is the people who provide the spirit and opportunities by the system. These opportunities should be utilised in a proper way by the people.
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Unit-2 Practices in Performance Management System

Check Your Learning

1. Why is performance management system used?

Ans. Performance management system is used to measure performance


of employees and reward employees who accomplish company objectives. 2. Mention the various components of performance management system.

Ans.

The

various

dimensions

of

performance

management
rewards,

are:
and

performance performance

planning, appraisal

ongoing meetings,

performance performance

communication,

performance diagnosis and coaching.

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Activity

Assume that you are a HR Manager in CIPO International, which is a hardware manufacturing company. It is brought to your notice that some of the employees do not perform the assigned tasks as required. These employees need to be re-trained. You are designing a new performance management system for your company. What is the essential component that must be included in the new system, justify your answer?

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