This document discusses performance management systems and why they are better than traditional performance appraisals. It defines performance management as a strategic and integrated approach to improving individual and team performance to achieve organizational success. A comprehensive performance management system aligns HR processes like recruitment, training and compensation to business plans and needs. It sets targets for individual and job key result areas and identifies learning needs to help employees and the organization grow. Implementing such a system requires commitment from HR and top management, involvement of business heads, and diagnostic, proposal and rollout phases. A performance management system provides a scientific, objective and transparent way to measure and reward performance while helping the organization achieve its strategic goals.

1. Performance Management
System – Mining People Power
Askgeet HRD Solutions Pvt. Ltd.
18th Feb 2015

2. Vision Statement

3. Why Performance Management
System (PMS) and not Appraisal?
 State the desired goal
 State the desired objective
 Use multiple points if necessary
Performance Appraisal Performance Management
Looks at performance historically Plans what is to be done and review periodically
to increase probability of performance
Key Result Areas (KRAs) are set for the
individual
Key Result Areas (KRAs) are set for the Job
Is a record keeping exercise which looks at
immediate i.e. last quarter performance
Aligned with Business planning and review
processes of the organization
Is primarily an HR department exercise Is business planning and strategy achievement
initiative
Provides input for increment Provides input for rewards, compensation,
development and growth of the individual

4. What is Performance Management
System (PMS)
“ Performance Management is both a strategic and
an integrated approach to delivering successful
results in organizations by improving the
performance and developing the capabilities of teams
and individuals”.
………. Armstrong and Baron (1998)

5. Why it is required?
Business Planning
Overall Industry
scenario
Agile response to
business decision
making
Enhance and
develop business
capability
Need for a
PMS

6. HR – Business Disconnect
HR Delivery
Business
Need

7. HR Strategy and Game plan
Option 1
Stand alone recruitment, appraisal,
employee benefits, compensation, training
and development systems
Based on personal judgment,
implemented at various points in time in
line with business cycle
Stable, stagnant legacy systems
Option 2
Align HR processes to serve needs of
the business
Is led by annual business plans
Dynamic and reflects state of the art
HR tools and technologies available
Traditional Model HR as a strategic partner

8. Why PMS makes business sense?
 If organization and department performance is
measurable why individual performance is not?
 If market rewards businesses for results then why
business to employee reward should not?
 If investment in fixed capital is decided based on
returns, then why investment in training should not?

9. Advantages of PMS
It is:
 Scientific way of measuring performance
 Objective method to reward performance
 Transparent method of working across organization

10. Components of a comprehensive
Performance Management System
Key Result Areas (KRAs) for each job
Multiple types of KRAs – customer, process, financial, learning and
development etc.
Performance Scale for each type of KRA
Uniform performance rating scale for organization
Target value for each Job and KRA with periodic review of actual vs target
Learning and Development need identification, review and planning

11. HR’s contribution to business
growth
• Grow
Leaders
• Grow Career
• Grow
Organization
Brand
• Retain
people
Identify
L & D
needs
Align people
with vision
and values
Bring
outstanding
performers to
the fore
Align
performance
to rewards
and promotion

12. Formula for implementing PMS
successfully
Successful PM System
HR
commitment
and
involvement
Top
Management
involvement
Business
Head
involvement

13. Way Forward
DIAGNOSTIC
Objective: Assess AS-IS
Activity: Meet with business heads and HR,
visit a site to collect information and
Duration: 2 to 3 working days
Cost: Rs 50,000
PROPOSAL
PROPOSAL
Objective: Prepare a project implementation
plan
Activity: Convert the information collected to
design and propose a solution that meets
organization’s needs. Obtain approval,
prepare schedule, templates and logistics
Duration: 5 working days
ASSIGNMENT
Prepare the communication and
Rollout project in the organization as per
approved schedule and process finalized

14. Why Askgeet HRD Solutions?
 End to end implementation experience – right from job
design to performance measurement to performance
development methodologies.
 ROI focus
 Development oriented

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Website: www.askgeethrd.com
Email: geet.jalota@gmail.com info@askgeethrd.com