Performance management systems (PMS) are used to evaluate employee performance and ability to perform tasks. An effective PMS is standardized, valid, legal, provides due process and proper training. A poorly implemented PMS can increase turnover, lower self-esteem, waste time and money, damage relationships, decrease motivation, and cause burnout through inaccurate or unfair feedback and evaluations lacking clear standards.

1. PERFORMANCE
MANAGEMENT SYSTEM
BY,
DEEPTI ANDRADE

2. DISCUSS THE P.M.S?
Performance management system is the heart of any
people management process in an organization.
• If the people do not perform in an organization they
don’t survive.
• Performance management systems properly designed
and implemented can change the growth and pace
and impact of an organization .
• The hr functions has wasted a lot of time by wrongly
focusing on performance appraisals rather than
performance management.

3. Characteristics of
pms
Companies use P.M.S to evaluate employer efficiency
at work and ability to perform certain tasks, either
by automated or human process.
• Standardization.
• Validity and conciseness.
• Legality.
• Due process.
• Proper training for evaluators.
• No bias of reward.

4. DANGERS IN POORLY
IMPLEMENTED PERFORMANCE
MANAGEMENT SYSTEM
• Increased turnover: if the
process is not seen as fair,
employees may become upset
and leave the organization .they
can leave physically or they can
withdraw psychologically.
• Use of misleading information:
if the standardized system is not
in the place ,there are multiple
opportunities for fabricating
information about an employees
performance.

5. • Lowered self esteem: self esteem may be lowered if
the feedback is provided is inappropriate and in
accurate way. this in turn ,can create employees
resentment.
• Wasted time and money: performance management
systems cost money and quite a bit of time .these
resources are wasted when systems are poorly
designed and implemented.
• Damaged relationship: as a consequence of a
deficient system, the relationship among the
individuals involved may be damaged ,often
permanently.
• Decreased motivation to perform: motivation may
be lowered for many reasons ,including the feeling

6. That superior performance is translated into meaningful
tangible or intangible rewards.
• Employee burn out and job dissatisfaction: when the
performance assessment instrument is not seen as valid
and the system is not perceived as fair, employees are
likely to feel increased levels of job burnout and job
dissatisfaction.
• Increased risk and litigation: expensive lawsuits may be
filed by individuals who feel they have been appraised
unfairly.
• Unjustified demand on mangers and employees
resources: poorly implemented systems do provide the
benefits provided by well implemented system ,yet they
still take up managers and employees time.

7. • Varying and unfair standard ratings: both standards
and individuals ratings may vary across and within
units and also be unfair.
• Emerging biases: personal values ,biases ,and
relationships are likely to replace organizational
standards.
• Unclear rating systems : because of poor
communication, of employees may not know how
their ratings are generated and how the ratings are
translated into rewards.

8. Thank You!