Performance Management System

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Performance Management System

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Performance Management System

  1. 1. Performance Management System Group Members : Neha Priya (04) Rajesh Sharma (06) Shweta Priya (08) Dharmendra Kumar (10) Siddharth Nath (26) Arshad Ahmed (46) Narendra Kumar (52)
  2. 2. Performance Management System <ul><li>It is an organization - wide management program that provides a structured approach to: </li></ul><ul><li>Communicate business strategy </li></ul><ul><li>Establish a shared understanding of what is to be achieved and how it is to be achieved </li></ul><ul><li>Facilitate management of self and others </li></ul><ul><li>Measure and motivate performance </li></ul><ul><li>(organizational and individual) </li></ul>
  3. 3. Contd… <ul><li>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, and </li></ul><ul><li>(c) measuring actual performance relative to performance expectations. </li></ul>
  4. 4. PMS Consists of… <ul><li>A process for communicating employee performance expectations, maintaining ongoing performance dialogue, and conducting annual performance appraisals; </li></ul><ul><li>A procedure for addressing employee performance that falls below expectations; </li></ul><ul><li>A procedure for encouraging and facilitating employee development; </li></ul><ul><li>Training in managing performance and administering the system; and </li></ul><ul><li>A procedure for resolving performance pay disputes. </li></ul>
  5. 5. WHY MEASURE PERFORMANCE ? <ul><li>Because </li></ul><ul><li>What you cannot measure you cannot improve. </li></ul><ul><li>If you cannot improve you cannot grow. </li></ul><ul><li>Measurement helps in objectively differentiating between performers and non performers. </li></ul><ul><li>Pay for performance is possible only through </li></ul><ul><li>metrics. </li></ul>
  6. 6. Objective of PMS <ul><li>To confirm the services of probationary employees upon their completing the probationary period satisfactorily </li></ul><ul><li>To check the effective & efficiency of individuals, teams & organization </li></ul><ul><li>To effect promotions based on competence and performance </li></ul><ul><li>To access the training and development needs of the employees </li></ul><ul><li>To decide upon the pay rise </li></ul><ul><li>PM can be used to determine whether HR programmes such as selection, training, and transfer have been effective or not. </li></ul>
  7. 7. PAS & PMS <ul><li>PAS: </li></ul><ul><li>Emphasis is on relative evaluation of individuals </li></ul><ul><li>Annual exercise </li></ul><ul><li>Rewards & recognition of good performance </li></ul><ul><li>Designed & monitored by HR department </li></ul><ul><li>Ownership is mostly with the HR dept. </li></ul><ul><li>PMS: </li></ul><ul><li>Emphasis is on performance of individuals, team & orgn. </li></ul><ul><li>Continuous process </li></ul><ul><li>Performance rewarding may or may not be integral part </li></ul><ul><li>Designed by HR dept. but monitored by respective dept. </li></ul><ul><li>Ownership is with the line managers, HR facilitates its implementation </li></ul>
  8. 8. PMS Includes… <ul><li>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. </li></ul><ul><li>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. </li></ul>
  9. 9. Contd… <ul><li>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. </li></ul><ul><li>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. </li></ul>
  10. 10. Contd… <ul><li>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. </li></ul><ul><li>Fair appraisal – Appraising employees in a manner that accurately reflects how they performed relative to the expectations defined in their work plan and in a manner that is not influenced by factors irrelevant to performance. </li></ul>
  11. 11. HIGHLIGHTS OF THE SYSTEM <ul><li>The appraiser and the appraisee jointly set the Key Result Areas (KRA’s) and assign mutually agreed weightage expressed as a percentage </li></ul><ul><li>Simple mathematical relationship between set weightage and accomplishment gives a final numerical score on KRA’s </li></ul><ul><li>To evaluate all management personnel on company values and leadership attributes a new section has been added entitled “ Values in Action ” </li></ul>
  12. 12. WHAT IS A KEY RESULT AREA ? <ul><li>A KRA refers to a target that needs to be achieved by the appraisee in a given time </li></ul><ul><li>KRA’s are the set of performance expectations from the appraisee </li></ul><ul><li>The focus is on tangible outputs. However this does not mean that tasks that have a qualitative output cannot form a KRA </li></ul><ul><li>The focus is on tangible outputs. However this does not mean that tasks that have a qualitative output cannot form a KRA </li></ul>
  13. 13. Setting KRA in case of a Functional Reporting Relationship <ul><li>Functional reporting cases will require input from the functional superior in setting KRAs for the appraisee. </li></ul><ul><li>The appraiser , the appraisee and the functional superior will have to mutually agree upon the KRAs for the appraisee. </li></ul><ul><li>In case of a disagreement , it will be the functional </li></ul><ul><li>superior’s responsibility to convince the administrative </li></ul><ul><li>superior to reach an agreement on the KRAs and communicate the same to the appraisee. </li></ul><ul><li>In some cases, functional goals could be super-ordinate </li></ul><ul><li>to business goals. </li></ul>
  14. 14. Components of PMS <ul><li>Performance Standards - establishment of organizational or system performance standards, targets and goals and relevant indicators to improve public health practice </li></ul><ul><li>Performance Measures - application and use of performance indicators and measures </li></ul>
  15. 15. Contd… <ul><li>Reporting of Progress - documentation and reporting of progress in meeting standards and targets and sharing of such information through feedback </li></ul><ul><li>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. </li></ul>
  16. 17. Importance of PMS <ul><li>A Performance Management System enables a business to sustain profitability and performance by linking the employees' pay to competency and contribution . </li></ul><ul><li>It provides opportunities for concerted personal development and career growth . </li></ul><ul><li>It brings all the employees under a single strategic umbrella . </li></ul>
  17. 18. Contd… <ul><li>Most importantly, it gives supervisors and subordinates an equal opportunity to express themselves under structured conditions </li></ul><ul><li>Organizations can effectively manage the performance appraisal process with our online performance management system </li></ul><ul><li>It calls for a high level of co-ordination, channeled information flow, and timely review </li></ul>
  18. 19. Performance Cycle SETTING EXPECTATIONS PROVIDING ACTIONABLE COACHING & FEEDBACK OBSERVING BEHAVIOUR AND MEASURING RESULTS
  19. 20. Appraise Need For Further Discussion <ul><li>The reviewer meets the appraiser to investigate the point of disagreement. </li></ul><ul><li>The reviewer decides to meet the appraisee to hear his / her views. </li></ul><ul><li>The reviewer examines the case and communicates his / her decision to the appraiser. </li></ul><ul><li>The appraiser communicates the decision of the reviewer to the appraisee. </li></ul>
  20. 21. FURTHER LINKS EMERGING FROM THE PMS <ul><li>Rewards and Recognition </li></ul><ul><li>Training and Development </li></ul><ul><li>Potential Appraisal </li></ul><ul><li>Career and Succession Planning </li></ul>
  21. 22. THANK YOU

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