DEFINE the key terms related to performance management and competency development.

1. FACULTY
DR. PRACHI AJIT
PHD, MMS, PGDBM, B.COM
Subject Code: 205
Subject Name: CBHRM
Semester: II
Chapter No: 1
Title: Performance Management System
Specialization: HRM
Course : MBA
As per Savitribai Phule Pune University Revised
Syllabus (2019)

2. Performance Management System- PMS -
Contents
• Introduction of PMS-Definition,
• Scope,
• Importance,
• Performance Planning
• Individual Goal Setting,
• Linking individual goals to Organization goals,
• Performance Coaching- Identification of Training Needs- Job Specification,
• Identify the Performance Gap,
• Training Specification,
• Choose appropriate training module,
• Counselling for Better Performance,
• Feedback Mechanism in Organization. (6+3)
DR. PRACHI AJIT

3. Introduction of PMS
• Definition -The performance
management system is the systematic
approach to measuring the
performance of employees. It is a
process through which the
organization aligns its mission, goals,
and objectives with available resources
(e.g. Manpower, material, etc),
systems, and set the priorities.
DR. PRACHI AJIT
https://exeqserve.com/what-hr-can-do-to-make-a-performance-management-system-work/

4. Scope and Importance of PMS
• Scope of Performance Management
• It should provide for managers and managees shared experiences, knowledge and vision. It
encompasses all formal and informal measures and procedures adopted by organizations to
increase corporate, team and individual effectiveness.
• Importance –
• An effective performance management system (PMS) plays an important role in managing
the organization performance. performance management system contributes in
organizational benefits, employee benefits and manager's benefits and has a positive
influence on the job satisfaction and loyalty of the employees.
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5. Performance Planning
• Performance planning is a systematic and structured approach to successfully achieve the
desired goals of an individual or team throughout the assessment year. A plan is chalked
out for the team or an individual(s) keeping in mind the broader objectives of the
organisation.
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6. Individual Goal Setting
• Goal setting is a process of establishing objectives to be achieved over a period of time. It is
the performance criteria an employee will be evaluated against. Performance goals for
individual employees should ideally align with organizational goals.
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7. Linking individual goals to Organization goals
1. Set clear organizational goals. Goals alignment starts at the top. ...
2. Get buy-in from leadership. Once you have your organizational
goals outlined, it's time to share them with leadership. ...
3. Communicate goals on every level. ...
4. Help employees achieve their goals.
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8. Performance Coaching- Identification of
Training Needs- Job Specification
• Performance coaching is an ongoing
process which helps build and
maintain effective employee and
supervisory relationships.
Performance coaching can help
identify an employee's growth, as
well as help plan and develop new
skills.
DR. PRACHI AJIT
https://coachcampus.com/coach-portfolios/coaching-models/michelle-benning-the-benning-performance/

9. Identification of Training Needs-
• Identifying training needs is a process that
involves establishing areas where employees
lack skills, knowledge, and ability in effectively
performing their jobs. Training needs have to
be related both in terms of the organisation's
demands and that of the individual
employee's.
DR. PRACHI AJIT
https://www.hrhelpboard.com/training-development/training-need-identification.htm

10. Job Specification
• Job specification is defined as a statement about the qualification and characteristics of an
employee required to perform the job task in a satisfactory manner. It is derived from job
analysis and acts as an important tool for the recruitment and selection of employees.
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11. Identify the Performance Gap- Activity
Sr. No Name of the group Performance gap
meaning
Challenges of
Identifying
Performance Gap
Solutions
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12. Training Specification
• While there are many individual steps that can come together to form a unique
performance management process, most systems will consist of 4 key components—the
planning phase, employee assessment, performance recognition, and career development.
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13. Choose appropriate training module
• The Performance Management Module allows for employees and their supervisor to
establish goals, provide feedback on performance throughout the year, and provide
meaningful feedback at the end of the evaluation period on established goals and the
University Core Competencies.
DR. PRACHI AJIT

14. Counselling for Better Performance
• Performance Counseling refers to the help provided by a manager to his subordinates in
objectively analyzing their performance.
• It attempts to help the employee in: Understanding himself - his strengths and weaknesses.
• Improving his professional and interpersonal competence by giving him feedback about his
behavior.
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15. Feedback Mechanism in Organization
• Feedback mechanisms provide organizations with data and perceptions from primary stakeholders
about the quality and effectiveness of their efforts. An ideal feedback process involves the gathering
of feedback and the communication of a response, which forms a 'feedback loop.
• There are multiple types of feedback, including, formal, informal, positive, negative, constructive,
informative, and so on
DR. PRACHI AJIT

16. Additional Reads and Videos
• https://matterapp.com/blog/4-types-of-feedback-to-expect-in-the-
workplace
• https://keyba.com.au/5-steps-to-effective-performance-counselling/
• https://www.youtube.com/watch?v=mjajYOzu4V4
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17. Q and A
• Thank You
DR. PRACHI AJIT