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)
 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

(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.

• A procedure for resolving performance pay disputes.

 WHY MEASURE PERFORMANCE ?
• 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 programmers such as

selection, training, and transfer have been effective or not.
 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.
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.

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.
 PAS & PMS
PAS: PMS:

• Emphasis is on relative • Emphasis is on performance of

evaluation of individuals individuals, team & orgn.

• Annual exercise • Continuous process

• Rewards & recognition of • Performance rewarding may or

good performance may not be integral part

• Designed & monitored by • Designed by HR dept. but

HR department monitored by respective dept.

• Ownership is mostly with • Ownership is with the line

the HR dept. managers, HR facilitates its
implementation
 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
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 PM

•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 .
• 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.