Performance management system

Performance

1. Performance Management Performance Management
SystemSystem

2. Performance Management SystemPerformance Management System
It is an organization - wide management program It is an organization - wide management program
that provides a structured approach to: that provides a structured approach to:
Communicate business strategyCommunicate business strategy
Establish a shared understanding of what is to be Establish a shared understanding of what is to be
achieved and how it is to be achievedachieved and how it is to be achieved
Facilitate management of self and othersFacilitate management of self and others
Measure and motivate performanceMeasure and motivate performance
(organizational and individual)(organizational and individual)

3. Contd…Contd…
Performance Management Performance Management – A management – A management
process for ensuring employees are focusing their process for ensuring employees are focusing their
work efforts in ways that contribute to achieving work efforts in ways that contribute to achieving
the agencythe agency’s mission. It consists of three phases: ’s mission. It consists of three phases:
(a) setting expectations for employee (a) setting expectations for employee
performance, (b) maintaining a dialogue between performance, (b) maintaining a dialogue between
supervisor and employee to keep performance on supervisor and employee to keep performance on
track, andtrack, and
(c) measuring actual performance relative to (c) measuring actual performance relative to
performance expectations. performance expectations.

4. PMS Consists of…PMS Consists of…
A process for communicating employee performance A process for communicating employee performance
expectations, maintaining ongoing performance dialogue, expectations, maintaining ongoing performance dialogue,
and conducting annual performance appraisals; and conducting annual performance appraisals;
A procedure for addressing employee performance that A procedure for addressing employee performance that
falls below expectations; falls below expectations;
A procedure for encouraging and facilitating employee A procedure for encouraging and facilitating employee
development; development;
Training in managing performance and administering the Training in managing performance and administering the
system; and system; and
A procedure for resolving performance pay disputes.A procedure for resolving performance pay disputes.

5. WHY MEASURE PERFORMANCE ?WHY MEASURE PERFORMANCE ?
BecauseBecause
What you cannot measure you cannot improve.What you cannot measure you cannot improve.
If you cannot improve you cannot grow.If you cannot improve you cannot grow.
Measurement helps in objectively differentiating Measurement helps in objectively differentiating
between performers and non performers.between performers and non performers.
Pay for performance is possible only throughPay for performance is possible only through
metrics.metrics.

6. Objective of PMSObjective of PMS
To confirm the services of probationary employees upon To confirm the services of probationary employees upon
their completing the probationary period satisfactorilytheir completing the probationary period satisfactorily
To check the effective & efficiency of individuals, teams To check the effective & efficiency of individuals, teams
& organization& organization
To effect promotions based on competence and To effect promotions based on competence and
performance performance
To access the training and development needs of the To access the training and development needs of the
employeesemployees
To decide upon the pay riseTo decide upon the pay rise
PM can be used to determine whether HR programmes PM can be used to determine whether HR programmes
such as selection, training, and transfer have been effective such as selection, training, and transfer have been effective
or not. or not.

7. PAS & PMSPAS & PMS
PAS:PAS:
Emphasis is on relative Emphasis is on relative
evaluation of individualsevaluation of individuals
Annual exerciseAnnual exercise
Rewards & recognition of Rewards & recognition of
good performance good performance
Designed & monitored by Designed & monitored by
HR departmentHR department
Ownership is mostly with Ownership is mostly with
the HR dept.the HR dept.
PMS:PMS:
Emphasis is on performance Emphasis is on performance
of individuals, team & orgn.of individuals, team & orgn.
Continuous processContinuous process
Performance rewarding may Performance rewarding may
or may not be integral partor may not be integral part
Designed by HR dept. but Designed by HR dept. but
monitored by respective dept.monitored by respective dept.
Ownership is with the line Ownership is with the line
managers, HR facilitates its managers, HR facilitates its
implementation implementation

8. PMS Includes…PMS Includes…
Work plan Work plan – A document that describes the work – A document that describes the work
to be completed by an employee within the to be completed by an employee within the
performance cycle, the performance expected, and performance cycle, the performance expected, and
how the performance will be measured. how the performance will be measured.
Corrective action plan Corrective action plan – A short-term action plan – A short-term action plan
that is initiated when an employeethat is initiated when an employee’s performance ’s performance
fails to meet expectations. Its purpose is to achieve fails to meet expectations. Its purpose is to achieve
an improvement in performance. an improvement in performance.

9. Contd…Contd…
Individual development planIndividual development plan – An action plan for – An action plan for
enhancing an employeeenhancing an employee’s level of performance in ’s level of performance in
order to excel in the current job or prepare for new order to excel in the current job or prepare for new
responsibilities. responsibilities.
Performance appraisalPerformance appraisal – A confidential document – A confidential document
that includes the employeethat includes the employee’s performance ’s performance
expectations, a summary of the employee’s actual expectations, a summary of the employee’s actual
performance relative to those expectations, an overall performance relative to those expectations, an overall
rating of the employee’s performance, and the rating of the employee’s performance, and the
supervisor’s and employee’s signatures.supervisor’s and employee’s signatures.

10. Contd…Contd…
Performance documentationPerformance documentation – A letter, memo, – A letter, memo,
completed form, or note on which the supervisor completed form, or note on which the supervisor
indicates the extent to which the employee is currently indicates the extent to which the employee is currently
meeting expectations and provides evidence to meeting expectations and provides evidence to
support that conclusion. support that conclusion.
Fair appraisalFair appraisal – Appraising employees in a manner – Appraising employees in a manner
that accurately reflects how they performed relative to that accurately reflects how they performed relative to
the expectations defined in their work plan and in a the expectations defined in their work plan and in a
manner that is not influenced by factors irrelevant to manner that is not influenced by factors irrelevant to
performance.performance.

11. HIGHLIGHTS OF THE SYSTEMHIGHLIGHTS OF THE SYSTEM
The appraiser and the appraisee jointly set the Key The appraiser and the appraisee jointly set the Key
Result Areas (KRAResult Areas (KRA’s) and assign mutually agreed ’s) and assign mutually agreed
weightage weightage expressed as a percentageexpressed as a percentage
Simple mathematical relationship between set Simple mathematical relationship between set
weightage and accomplishment gives a final weightage and accomplishment gives a final
numerical score on KRAnumerical score on KRA’s’s
To evaluate all management personnel on company To evaluate all management personnel on company
values and leadership attributes a new section has values and leadership attributes a new section has
been added entitled been added entitled ““Values in ActionValues in Action””

12. WHAT IS A KEY RESULT AREA ?WHAT IS A KEY RESULT AREA ?
A KRA refers to a target that needs to be achieved by A KRA refers to a target that needs to be achieved by
the appraisee in a given timethe appraisee in a given time
KRAKRA’s are the set of performance expectations from ’s are the set of performance expectations from
the appraiseethe appraisee
The focus is on tangible outputs. However this does The focus is on tangible outputs. However this does
not mean that tasks that have a qualitative output not mean that tasks that have a qualitative output
cannot form a KRAcannot form a KRA
The focus is on tangible outputs. However this does The focus is on tangible outputs. However this does
not mean that tasks that have a qualitative output not mean that tasks that have a qualitative output
cannot form a KRAcannot form a KRA

13. Setting KRA in case of a Functional Setting KRA in case of a Functional
Reporting RelationshipReporting Relationship
Functional reporting cases will require input from the Functional reporting cases will require input from the
functional superior in setting KRAs for the appraisee.functional superior in setting KRAs for the appraisee.
The appraiser , the appraisee and the functional superior The appraiser , the appraisee and the functional superior
will have to mutually agree upon the KRAs for the will have to mutually agree upon the KRAs for the
appraisee.appraisee.
In case of a disagreement , it will be the functionalIn case of a disagreement , it will be the functional
superiorsuperior’s responsibility to convince the administrative’s responsibility to convince the administrative
superior to reach an agreement on the KRAs and superior to reach an agreement on the KRAs and
communicate the same to the appraisee.communicate the same to the appraisee.
In some cases, functional goals could be super-ordinateIn some cases, functional goals could be super-ordinate
to business goals.to business goals.

14. Components of PMS Components of PMS
Performance StandardsPerformance Standards - establishment of - establishment of
organizational or system performance standards, organizational or system performance standards,
targets and goals and relevant indicators to improve targets and goals and relevant indicators to improve
public health practice public health practice
Performance MeasuresPerformance Measures - application and use of - application and use of
performance indicators and measuresperformance indicators and measures

15. Contd…Contd…
Reporting of Progress Reporting of Progress - documentation and - documentation and
reporting of progress in meeting standards and reporting of progress in meeting standards and
targets and sharing of such information through targets and sharing of such information through
feedbackfeedback
Quality ImprovementQuality Improvement - establishment of a program - establishment of a program
or process to manage change and achieve quality or process to manage change and achieve quality
improvement in public health policies, programs or improvement in public health policies, programs or
infrastructure based on performance standards, infrastructure based on performance standards,
measurements and reports.measurements and reports.

17. Importance of PMSImportance of PMS
A Performance Management System enables a A Performance Management System enables a
business to sustain profitability and performance business to sustain profitability and performance
by linking the employees' pay to competency and by linking the employees' pay to competency and
contribution .contribution .
It provides opportunities for concerted personal It provides opportunities for concerted personal
development and career growth .development and career growth .
It brings all the employees under a single strategic It brings all the employees under a single strategic
umbrella .umbrella .

18. Contd…Contd…
Most importantly, it gives supervisors and Most importantly, it gives supervisors and
subordinates an equal opportunity to express subordinates an equal opportunity to express
themselves under structured conditions themselves under structured conditions
Organizations can effectively manage the Organizations can effectively manage the
performance appraisal process with our online performance appraisal process with our online
performance management system performance management system
It calls for a high level of co-ordination, channeled It calls for a high level of co-ordination, channeled
information flow, and timely review information flow, and timely review

19. Performance CyclePerformance Cycle
SETTING
EXPECTATIONS
PROVIDING
ACTIONABLE
COACHING &
FEEDBACK
OBSERVING
BEHAVIOUR AND
MEASURING
RESULTS

20. Appraise Need For Further Appraise Need For Further
DiscussionDiscussion
The reviewer meets the appraiser to investigate the The reviewer meets the appraiser to investigate the
point of disagreement.point of disagreement.
The reviewer decides to meet the appraisee to hear The reviewer decides to meet the appraisee to hear
his / her views.his / her views.
The reviewer examines the case and communicates The reviewer examines the case and communicates
his / her decision to the appraiser.his / her decision to the appraiser.
The appraiser communicates the decision of the The appraiser communicates the decision of the
reviewer to the appraisee.reviewer to the appraisee.

21. FURTHER LINKS EMERGING FURTHER LINKS EMERGING
FROM THE PMSFROM THE PMS
Rewards and RecognitionRewards and Recognition
Training and DevelopmentTraining and Development
Potential AppraisalPotential Appraisal
Career and Succession PlanningCareer and Succession Planning

22. THANK YOUTHANK YOU