Performance Management and

Development Systems
 Performance Management Vs
Performance Appraisal
 PMS continuous
 Consist of counseling, monitoring, evaluation
and feedback
 Performance Appraisal : once a year, no proper
feedback
 Objectives of PMS
 HRP
 Recruitment & Selection
 Personnel Decisions
 Career Planning and development
 Feedback, motivation and development
 Training and Development
 Compensation and Reward
 Internal employee relations
 Classification of objective
 Evaluative
› Validating selection
› Bonuses and Incentives
› Promotions
› Salary increases
 Development
› Feedback
› Motivation
› T&D
› Career Planning
› HRP
 Developing PMS
 Identifying dimensions of job performance
 Defining and communicating performance
standards
 Determining who will conduct the appraisal
 Choosing appropriate methods of performance
appraisal
 Communicating appraisals to employees
 Types of evaluation criteria
 Trait based criteria
 Behavior based criteria
 Results based criteria
 Sources of Appraisal information
 Appraisal by Manager/Supervisor
 Self Appraisal
 Subordinate Appraisal
 Peer Appraisal
 Team Appraisal
 Customer Appraisal
 Methods of Appraisal
 Trait Based
› Graphic Rating
› Forced Choice
› Essay Method
› Ranking
› Forced Distribution
 Behavior Based
› Critical Incident
› Checklist
› Behaviourally Anchored rating Scales
 Results-based
› Productivity measures
› MBO
 Communication of Appraisals
 One way
 2 way
 Mutual Problem Solving
 Problems in PMS
 Ambivalence towards performance evaluation on
the part of appraiser and appraise
 Problems in design and implementation of
performance management system
 Rater biases and errors
 Rater Biases
 halo effect,
 error of central tendency,
 leniency or strictness,
 personal prejudice,
 recency effect,
 perceptual set,
 Influence of previous ratings
 Effective PMS
 Separate evaluation and development appraisals
 Use job-related performance criteria
 Specifying performance standards
 Use appropriate performance data
 Improving supervisor- subordinate relationship
 Provide ongoing feedback
 Upward appraisals
 Use multiple raters
 Train Appraisers
 Appeal Process
 Developments in PMS
 Team or work group appraisals
 Assessment Centres
 Multisource Feedback
 Competency based PMS
 Approaches to measure managerial
performance
 Job focused
 Person focused
 Role focused
 Hybrid Approach
› Clear description of the work tasks managers should
be competent in micro competencies
› Factors enabling them to complete those tasks
effectively (macro competencies)
› Specific role-focused criteria for performance
excellence.
 Technology and PMS
 Computer Performance Monitoring
 Online Evaluation and Appraisal Software
 Strategic PMS
 Inception Stage:
› Employee: innovative, long-term goals and open to risks
› Knowledge and skill easy to develop should be measured
› Qualitative performance appraisal
 Growth Stage:
› Employees: flexible to change, look for short term survival, team work
› Focus on employee competencies convert to actual performance
› Quantitative performance appraisal
 Maturity Stage:
› Employee: ability to yield results, take tasks that have low risks, highly
repetitive behavior
› Focus on behavior is converted into performance
› Qualitative performance appraisal