Performance Management

Presented By:
 Performance Management
• Performance management is integrated
process of performance planning,
performance appraisal, performance feedback
performance counselling (Prasad 2005) or
consolidates goal setting, performance
appraisal, development in to a single,
common system, the aim of which is to ensure
that employee‟s performance is supporting
the company‟s strategic aim (Desselor 2008).
Performance Management
System
A formal structured system used to
measure, evaluate and influence
employees job related attitudes, behavior
and performance results.
 Purpose or salient features
• To enhance employee motivation and
productivity.
• To suport the achievement of the
organizations strategic goals
• To facilitate strategic planning and change.
• Linking performance results to rewards and
consequences.
• Conducting performance appraisals.
 Purpose or salient features
• Defining clear performance goals and
measures.
• Providing ongoing performance feedback.
• Encourage employee competition to enhance
productivity.
• Making crossfunctioal teams.
 A PMS frame work
Goal setting
• Process of setting goals
• Communication of targets
• KPAs and KPIs settings

Linkages with HR systems Periodic review

• Training and development • Mid year performance review
• Promotion • Feedback
• Incentive pay • Assessment

Appraisal
• Apraisal mechanism
• discussions
 Business objective

Individual objective

Feed back loop Assessments and

evaluation

Training Reward
need. etc

Performance
Improvement
Company targets
(set by shareholders)

Top management targets

(set by board of directors)

Middle management targets

(set by top manager)

Line management targets

(set by middle management)

Employees targets
(set by line management)
 Scope of PMS
• It includes over all
– HR Planning
– Recruitment & Selection
– Training & Development
– Career Planning & development
– Personal Development
– Compensation Management
 Significant Themes identified

• Differential rate system (performance based).

PMS
• Measurement-Managed companies out performs

• PMS dirrectly related to organization success.

 variables
• Performance Evaluation.
• Competiveness
• HR policies.
• Strategic performance(customer satisfaction, innovation,
etc)
• Personal development planning.
• Appraisals.
• Recruitment & Selection
• Training & Development
 Significant Variables & their
Relationship
PERFORMANCE
MANAGEMENT
SYSTEMS
IMPLEMENTATION

PERFORMANCE ORGANIZATIONAL
MANAGEMENT PERFORMANCE
SYSTEMS

•Performance
Appraisal System •PRODUCTIVITY
•HR Planning •PROFITS
•Personal •CASHFLOWS
Development •CUSTOMER
•R & S SATISFACTION
•T&D •JOB SATISFACTION
•Compensation •P/S QUALITY
Management
 Critique
Excessive competition with in the organization
will increase stress among the employees
Production line time studies- skipping one step
leads to delay in production chain
Biasness in PMS can have a negative impact on
the motivation level and performance of
employees