Performance Management Performance Management SystemSystem

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)

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 performance, (a) setting expectations for employee performance, (b) maintaining a dialogue between supervisor and (b) maintaining a dialogue between supervisor and employee to keep performance on track, andemployee to keep performance on track, and

(c) measuring actual performance relative to (c) measuring actual performance relative to performance expectations. performance expectations.

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.

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.

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.

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

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.

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 employeeexpectations, a summary of the employee’’s actual s actual performance relative to those expectations, an overall performance relative to those expectations, an overall rating of the employeerating of the employee’’s performance, and the s performance, and the supervisorsupervisor’’s and employees and employee’’s signatures.s signatures.

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.

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’’ss

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””

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

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 administratives 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.

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

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.

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 .

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

Performance CyclePerformance Cycle

SETTINGEXPECTATIONS

PROVIDINGACTIONABLECOACHING &

FEEDBACK

OBSERVINGBEHAVIOUR AND

MEASURINGRESULTS

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.

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

THANK YOUTHANK YOU