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Performance Management System


Terms Performance & Management General Management Issues What is Performance Management? Performance Management System Performance Management System Process/Cycle Performance Management Drive Strategy The WHY of PMS The Benefits Of Effective PMS Conclusion/Key Thoughts How To Destroy PMS

Meaning of The Term Performance

The term PERFORMANCE is both distinguishing and similar to the term PRODUCTIVITY: Similar: effective and efficient use of resources to achieve outcomes Distinguishing: it is guided and assessed by multiple, equally important standards of effectiveness, efficiency and equity.

Meaning Of The Term Management

Management = getting work done through others
Managers performance is only as good as his/her employees performance Managers job = performance management of others

What is Performance Management ?

Systematically managing all the people in an organization for innovation, goal focus, productivity and satisfaction.

It is a goal similar to win - win plan.

Performance Management System

A PMS is a predetermined set of guidelines for individuals employed by a company.

The system is used to describe the current position to the employee and lay out the expectations of company management for the employee. Describing in detail the required duties for a position also allows management to set rewards and bonuses for the position so the company gains the maximum potential of the employee. It also helps the employee to understand his responsibilities toward the company

PMS Process/Cycle
Plan: Understanding current performance, prioritizing, identifying actions and planning for improvement. Do: Ensuring that proper systems and processes are in place to support improvement, take action, manage risks

Review: Understanding the impact of your actions, reviewing performance, speaking to users and stakeholders about their experience of performance.
Revise: Using the lessons learned from review to change your plans or what you do so that future action is more efficient, effective and appropriate.


PLANNING Setting objectives:

Planning employees performance involves establishing the standards or measures like KRAs, value system, ethics and performance factors which guide an employees appraisal. For an employee performance objective (in the form of KRAs and IDP) shall be developed in line with respective departments/ projects/ Group objectives.


Competency development:
Doing involves evaluating employee developmental needs that will help them strengthen their job related skills and competencies and prioritizing and developing a plan of action to achieve the set targets.

Checking (continuous monitoring):

Checking includes conducting online reviews where employee performance is quantitatively measured against the set standards to identify how well the employees are meeting the set goals. Thereafter, the quantitative data is used to derive performance rating during the appraisal period. For low performance, an immediate plan of action is taken rather than wait until the end of the appraisal period when summary appraisal rating levels are applied.


Acting includes evaluating job performance against the standards in the employees performance plan and assigning a rating to the employee based on work performed during the entire appraisal period.

The WHY of Performance Management Systems

- Administer Salary & Wages
- Correct Performance/Behavior - Plan for Future (promotion, transfer, career dev) - Facilitate Decision-Making (counseling, terminations) - Facilitate Human Resource Planning


The WHY of Performance Management Systems

- Create Culture - Building Good Relationships - Increase Organizational Loyalty - Determine Effectiveness of Selection and - Placement Methods

Benefits of Effective Management System


Improved Productivity - Improvement in both the way people work and the outcomes they produce. Improved Employee Morale - Resulting from on-time performance appraisals and rewards commensurate with employee contributions. Retention of Top Performers Employees who feel accomplished in their work become loyal employees. Increased Profitability Loyal employees deliver higher levels of service that result in customer loyalty.

Conclusion/Key Thoughts

There is no best way to formulate a performance management system. Managers should make every effort to improve the quality of appraisals through attention to choice of measures as well as training. Managers should recognize the importance of viewing performance management as a system comprised of a number of components including communication, feedback, and employee development processes.

How to Destroy PM System

Do not follow policies Be inconsistent in application Treat it as unimportant Do not follow-up

Reprimand in public; Reward in private

Conduct when angry Be late

Thank you