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Performance management system


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Performance management system

  1. 1. Performance Management System
  2. 2. 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)
  3. 3. Contd… 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, and (c) measuring actual performance relative to performance expectations.
  4. 4. 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; and A procedure for resolving performance pay disputes.
  5. 5. WHY MEASURE PERFORMANCE ?Because 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.
  6. 6. 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 programmes such as selection, training, and transfer have been effective or not.
  7. 7. PAS & PMS PAS:  PMS: Emphasis is on relative  Emphasis is on performance evaluation of individuals of individuals, team & orgn. Annual exercise  Continuous process Rewards & recognition of  Performance rewarding may good performance or 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
  8. 8. 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.
  9. 9. Contd… 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.
  10. 10. Contd… 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. Fair appraisal – Appraising employees in a manner that accurately reflects how they performed relative to the expectations defined in their work plan and in a manner that is not influenced by factors irrelevant to performance.
  11. 11. HIGHLIGHTS OF THE SYSTEM The appraiser and the appraisee jointly set the Key Result Areas (KRA’s) and assign mutually agreed weightage expressed as a percentage Simple mathematical relationship between set weightage and accomplishment gives a final numerical score on KRA’s To evaluate all management personnel on company values and leadership attributes a new section has been added entitled “Values in Action”
  12. 12. WHAT IS A KEY RESULT AREA ? A KRA refers to a target that needs to be achieved by the appraisee in a given time KRA’s are the set of performance expectations from the appraisee The focus is on tangible outputs. However this does not mean that tasks that have a qualitative output cannot form a KRA The focus is on tangible outputs. However this does not mean that tasks that have a qualitative output cannot form a KRA
  13. 13. Setting KRA in case of a Functional Reporting Relationship Functional reporting cases will require input from the functional superior in setting KRAs for the appraisee. The appraiser , the appraisee and the functional superior will have to mutually agree upon the KRAs for the appraisee. In case of a disagreement , it will be the functional superior’s responsibility to convince the administrative superior to reach an agreement on the KRAs and communicate the same to the appraisee. In some cases, functional goals could be super-ordinate to business goals.
  14. 14. 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
  15. 15. Contd… 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.
  16. 16. Importance of PMS 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 .
  17. 17. Contd… 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
  19. 19. Appraise Need For Further Discussion The reviewer meets the appraiser to investigate the point of disagreement. The reviewer decides to meet the appraisee to hear his / her views. The reviewer examines the case and communicates his / her decision to the appraiser. The appraiser communicates the decision of the reviewer to the appraisee.
  20. 20. FURTHER LINKS EMERGING FROM THE PMS Rewards and Recognition Training and Development Potential Appraisal Career and Succession Planning
  21. 21. THANK YOU