Performance Management System

Introduction

What is performance management? What is performance appraisal?

PM: A strategic and integrated process that delivers sustained success to organizations by

Improving the performance of the employees, and Developing the capabilities of individual contributors and teams

Performance Management vs. Performance Appraisal

PM: the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organizations goals. PA: refers to the evaluating an employees current and/or past performance relative to his or her performance standard.

Performance Appraisal vs. Performance Management

PM is continuous, daily or weekly interaction and feedback, whereas PA is once or twice a year. PM is always goal oriented; Performance reviews involved comparing performance against goals which stem from companys strategic goals. Performance Management means continuously revaluating and modifying how the employee and team get their work done.

Steps in Performance Management system

Performance Rewards and Development Performance Planning and Target Setting

Performance Review and Evaluation

Performance Monitoring and Coaching

Performance Planning and Target Setting

Joint decision on the target setting and performance benchmarking Supervisors - ensure that the targets are in alignment with the overall strategic objectives Appraisee: express their clarity with the target and what is expected from them. Preparing a plan or list of all performance requirements and benchmarking Revising and reviewing the list of performance targets.

Performance Monitoring and Coaching

Supervisors monitor the progress and the quality of the work output Use appropriate supervisory techniques to support employee efforts on achieving strategic goals. Recognize, encourage and reinforce good performance. Identify training and development needs.

Performance Review and Evaluation

Review the subordinates progress in meeting his or her targets Provide additional coaching and feedback. Identify unachieved targets Provide subordinates with required assistance in problem areas. Follow up on development and training needs Review whether adjustments to the agreed objectives/goals are required.

Performance Review and Evaluation.

Record critical incidences that manifest the employees performance or critical strengths or weaknesses. Record the performance ratings after thorough review of the performance related documents, performance targets, work accomplishments and critical performance incidences.

(Final performance is usually evaluated only at the end of the year)

Performance Rewards and Development

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Performance Rewards Financial Reward : Bonus, Performance Based Variable Pay (PBVA) Non financial Reward: Promotion, transfer, demotion. Training and development Managing Poor Performance Special Watch Program

Why PMS

Why PM

Total Quality Management Appraisal issues Strategic Planning