The document discusses the problems with performance management systems (PMS). It notes that PMS are based on assumptions that may not always hold true, such as the ability to objectively measure performance. PMS can send negative messages to employees like only being responsible for your specific job duties. They may also encourage competition between employees instead of teamwork. The document also lists common mistakes made by HR professionals and managers in implementing PMS, such as a one-size-fits-all approach. Overall, the document argues that as currently implemented by many companies, PMS are not effective and a waste of time, needing revision to better systems.

1. Performance Management System
WHY
IT’s Of no use
And its lacuna
BY-
•Pratik Negi
•Chirag Kanani
•Gurpreet Bhardwaj
•Shalini Kaushal

2. What actually is performance management

3. 1. Increases management control over work and results.
2. Increases management ability to identify or "red-flag" problems early.
3. Links employee objectives and functions to overall organization objectives, thereby creating
a sense of contribution for the employee.
4. Motivates employees by allowing them input into and ownership of their objectives
and standards of performance.
5. Enhances communication by ensuring there is clear understanding of management
expectations about results.
6. Supports remedial action or disciplinary action because a breach of standards can be defined
objectively and in a measurable way.
7. Provides a system where feedback can be given to employees on a more objective basis,
and not on management's subjective criterion.
8. Provides objective criterion that management can use to make decisions
regarding pay scale, and promotion.
9. Provides a centralized record of performance for each employee, usually
kept in the personnel office.
What an PMS ought to do?

4. How they affect income.
What they assess.
How they measure contribution.
How they are archived and used.
How they affect career advancement and success.
What people are not clear while doing appraisal and want to know
The BIG Q.
•IS the PMS setting new employees up to succeed. and help organization to
achieve what it wants.
•IS the PMS providing enough guidance so people understand what is
expected of them.
•IS the PMS providing enough flexibility and wiggle room so that individual
creativity and strengths are nurtured
•IS the PMS providing enough control so that people understand what the
organization is trying to accomplish

5. Things HR people do to make the PMS worse
 Focusing on and stressing the paperwork and forms.
 Believing that a ratings based form of appraisal will serve as protection
against lawsuits by employees.
 Using an automated system
 Under training or miss-training managers in the process
 Not training employees
 Thinking pressuring managers to get the forms in is productive
 One size fits all fantasy
 Playing the appraisal cop.

6. THINGS Managers Do To Screw Up Performance Appraisal
 Spending more time on performance appraisal than performance PLANNING,
or ongoing performance communication.
 Comparing employees with each other.
 Forgetting appraisal is about improvement, not blame.
 Thinking a rating form is an objective, impartial tool.
 Stopping performance appraisal when a person's salary is no longer tied
to the appraisals.
 Believing they are in position to accurately assess staff.
 Cancelling or postponing appraisal meetings.
 Measuring or appraising the trivial. & Surprising employees during appraisal.
 Thinking all employees and all jobs should be assessed in exactly the same way using
the same procedures.

7. Errors in ratings
•Similar-to-me Error
•Leniency Error
•Recency Error
• Horns Effect
• Halo Effect
•Central Tendency Error
Outcomes of the ratings
Wrong promotion
Wrong transfers
Wrong incentives
Wrong employee
hierarchy
Employee
demotivation
SO WHY PMS ?

8. PMS is based on the assumptions
o An Additive Model For Organization Performance
o Focus on Results And There Will Be No Problems
o Involving People In Goal Setting Is Motivating
o You Can Measure Results Objectively AND Meaningfully
o Coaching & Evaluation Can Co-exist
o People will take the feedback ( mainly –ve) as positive to improve
o Peers wont find it difficult to think irrationally about the dissimilar results of PMS
o Changes in hierarchy will only help in smooth functioning of effective people in
effective positions.

9. (Objective Methods)
• Not always applicable.
• Performance not always under individual's control
• Too simplistic
• Performance unreliable--Dynamic Criterion
{Subjective Methods: Rating Scales}
• Rating errors: Leniency, Severity, Halo etc
• Supervisor subversion of system--leniency as a strategy
• Mixed purposes (feedback vs. administrative)
• Negative impact of criticism
Disadvantages

10. Downside to Performance Management?
IT should
Not exist
The Message: You Are Responsible For Your Work.--- reduces an employee's responsibility to the
organization, and to activities that are not "his or her job".
The Message: Compete For Resources --- the resources are being utilized for attaining personal
goals and thus the short sighted approach gets developed.
The Message: Work As A Team But You Get Hung --- the whole responsibility comes on the T.L
and others go by ( because the appraisal is with the manager) – going for a retaliation.
Message: Let's Pretend --- Let's pretend that we are really in power and control, and pretend that our
inputs carry equal weight. ( we have given feedback that will work wonders)
Message: we access you bi-yearly--- gives rise to employee work dilution and employee giving
valuable contribution in appraisal time.
Message : Partiality
Message: No real scope of development ( training is a vacation)
Message : We work for ourselves and money ( decreasing loyality for company)
Message : HR department is a real puppet and we will play with them.

11. Some PERFORMANCE APPRAISAL PRACTICES TO
{REDUCE PROBLEMS}
• Separate purposes Raises delt with separately from feedback.
• Consistent feedback, everyday.( start it from recruitment)
• Limit criticism to one item at a time. develop the employee first then evaluate.
• Praise should be contingent.
• Supervisors should be coaches.
• Appraisal should be criterion related, not personal. Monetary linkage must be minimized.
• TECHNOLOGY use.
Thus PMS getting implemented by company’s
is a waste of time. And thus need to be
revised to a better system