Human Capital Management

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

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.
• A procedure for resolving performance pay disputes.

5. WHY MEASURE PERFORMANCE ?
• 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. 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 programmers such as
selection, training, and transfer have been effective or not.

7. 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.

8. 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.
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.

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

10. 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

11. 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.

13. Importance of PM
•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 .

14. • 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.