The document discusses performance management systems (PMS), which provide a structured approach to communicate business strategy, establish performance expectations, facilitate management, and measure and motivate performance. A key part of PMS is setting employee performance expectations, maintaining ongoing performance dialogue, and conducting annual performance appraisals. PMS also includes procedures for addressing underperformance, encouraging development, training managers, and resolving disputes. The goals of PMS are to guide employee efforts, assess individuals, teams, and the organization, and inform decisions around promotions, pay, and training needs.

1. Performance Management
System

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. Contd…
 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
(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; and
 A procedure for resolving performance pay disputes.

5. WHY MEASURE PERFORMANCE ?
Because
 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 programmes
such as selection, training, and transfer have been effective
or not.

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

8. 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.

9. Contd…
 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.

10. Contd…
 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.
 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.

11. HIGHLIGHTS OF THE SYSTEM
 The appraiser and the appraisee jointly set the Key
Result Areas (KRA’s) and assign mutually agreed
weightage expressed as a percentage
 Simple mathematical relationship between set
weightage and accomplishment gives a final
numerical score on KRA’s
 To evaluate all management personnel on company
values and leadership attributes a new section has
been added entitled “Values in Action”

12. WHAT IS A KEY RESULT AREA ?
 A KRA refers to a target that needs to be achieved by
the appraisee in a given time
 KRA’s are the set of performance expectations from
the appraisee
 The focus is on tangible outputs. However this does
not mean that tasks that have a qualitative output
cannot form a KRA
 The focus is on tangible outputs. However this does
not mean that tasks that have a qualitative output
cannot form a KRA

13. Setting KRA in case of a Functional
Reporting Relationship
 Functional reporting cases will require input from the
functional superior in setting KRAs for the appraisee.
 The appraiser , the appraisee and the functional superior
will have to mutually agree upon the KRAs for the
appraisee.
 In case of a disagreement , it will be the functional
superior’s responsibility to convince the administrative
superior to reach an agreement on the KRAs and
communicate the same to the appraisee.
 In some cases, functional goals could be super-ordinate
to business goals.

14. 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

15. Contd…
 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.

17. Importance of PMS
 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 .

18. Contd…
 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

19. Performance Cycle
SETTING
EXPECTATIONS
PROVIDING OBSERVING
ACTIONABLE BEHAVIOUR AND
COACHING & MEASURING
FEEDBACK RESULTS

20. Appraise Need For Further
Discussion
 The reviewer meets the appraiser to investigate the
point of disagreement.
 The reviewer decides to meet the appraisee to hear
his / her views.
 The reviewer examines the case and communicates
his / her decision to the appraiser.
 The appraiser communicates the decision of the
reviewer to the appraisee.

21. FURTHER LINKS EMERGING
FROM THE PMS
 Rewards and Recognition
 Training and Development
 Potential Appraisal
 Career and Succession Planning

22. THANK YOU