Performance Management System theory ppt

1. PERFORMANCE MANAGEMENT
SYSTEMS

2. THE OBJECTIVE
 To provide a fresh perspective to the
appraisal system
 Emphasize the need to use PMS as a
Management tool for Organizational
Development
 To provide useful information on our
Performance Management System.

3. GENERAL PERCEPTION ABOUT PMS
AND REALITY
GENERAL BELIEF :
Linked only to pay and
rewards.
It is only an evaluation of the
past.
They are remote from facts.
It’s a necessary must for the
organization.
REALITY :
It is a constructive activity which
leads to personal growth.
It is review of the past for better
results in future.
It is based on objective evidence.
Its an opportunity given by
organization.

4. PMS – AN OPPORTUNITY
To direct current performance
towards the organizations
requirement.
To harness potential within the
individual and utilize it to the
optimum level.
To improve relations.

5. ROLE OF A MANAGER
 MENTOR :
 A person with expertise in his respective field.
 Capable of sharing his experience which will be
useful to the organization.
 MANAGERS ROLE AS MENTOR
 Being aware of the organizational goals, a Manager has
better knowledge of the actual performance required from
the executives.
 Foresee the helping / hindering factors in target
achievement and thus influence the performance pattern of
the individual towards the desired goals.
 Act as a role model and be a source of motivation.

6. GUIDE
 A manager is a person who would monitor
employees performance and provide proper
guidance.
 Assess the strengths and weakness of the
individual, during performance.
 Provide help in form of training.
 Give appropriate and timely Advise.
MANAGERS ROLE AS A GUIDE

7. FRIEND
MANAGER AS A FRIEND
 Develop meaningful two way communication
 Motivate the individuals towards higher
achievements.
 Help them to overcome their weakness and capitalize
their strengths.
 Help in doing individual SWOT analysis.

8. APPRAISAL SYSTEM
 Self Appraisal
 Initial discussion between the appraiser and
the reviewer.
 Discussion between the appraiser and
appraisee and rating to be given with due
consideration to the Attributes.
 Assessment of employees performance by
reviewing authority.
 Final comments on the appraisal by the
appraising authority.

9. KEY PERFORMANCE AREAS
1. WHAT IS KPA
KPA of each organizational member includes the specific
business responsibilities that have an ultimate impact on
the success or failure of the enterprise as whole.
In other words, KPAs describe the reason why the job
exists- they are lables and not long statements of outcome
that are expected.
KPA consists of all the prime responsibilities of an
individual member.

10. a) FEATURES OF KPAs
 KPAs are broad areas within a job that change little
from year to year
 They identify the areas within which a person is
responsible for achieving results.
 Majority of KPAs are found from the job description
simply by asking the question “What are the most
important things that the person does?”
KEY PERFORMANCE AREAS

11. b) HOW MANY KPAs CAN A PERSON HAVE ?
 In general a job may have between three
to seven KPAs.
 If it is less than three, probably some
important area would have been
overlooked or if it is more than seven,
chances are great that what has been
generated is a task inventory or list of
goals.
KEY PERFORMANCE AREAS

12. c) WHAT DO WE HAVE KPAs
KPAs are the basis for setting specific objectives and
are broad statements of the areas within which the job
holder is expected to produce results.
It is the framework for a person to exist and operate
in the organisation.
d) FINETUNING OF KPAs
Review the list to make sure that each KPAs deals
with a discrete and non overlapping part of the job.
Make sure that no significant responsibility areas
have been overlooked.
Ensure that the KPAs are appropriate.
KEY PERFORMANCE AREAS

13. ATTRIBUTE RATINGS
 Common Errors
 Snap Judgments
 Subjective Ratings
 Inconsistent Ratings
 The detailed note on attribute ratings
available with the HR & circulated earlier
will be helpful in making more objective
ratings.

14. APPRAISAL MEETING
A) STEPS IN SETTING UP THE MEETING.
 State purpose of the meeting Clearly.
 Communication should be clear and not
ambiguous.
 Date, time and place to be decided in advance.
 Sufficient time should be kept between two
appraisal meetings.

15. APPRAISAL MEETING
B) PREPARATION FOR THE MEETING
 Collection of the facts and necessary
data.
 Plan the points to be discussed.
 Be prepared with inputs for a
constructive appraisal meeting.

16. LOCATION OF THE MEETING
 WHERE
 It should preferably
be at a neutral place
with no physical
barriers like the
conference room.
 WHERE NOT
 At the Manager’s
desk.
 At the Appraisee’s
desk.

17. LANGUAGE
 Establish contact
 (say hello,
handshake)
 Ask open questions.
 Seek to reach an
agreements.
 Be more elaborate in
communication
 Don’t Invade
 Don’t be threatening in
giving a critical
feedback
 Avoid closed questions
 Avoid reaching
confrontation.

18. APPRAISING THE POOR PERFORMANCE
A DEADLOCK
Grossly avoided because
1. Makes the manager unpopular.
1. May de-motivate the appraisee.

19. APPRAISING POOR PERFORMANCE MADE
EASY
1. Be clear in thoughts and actions : “Appraise the
Performance not the performer.”
2. Describe clearly the expected level of performance.
3. Ask the Appraisee’s opinion about the expected
performance and the actual.
4. Reach a consensus in identifying gap between the actual
performance and the expected level.
5. Reach a agreement on improving the performance.
6. Follow – up : A Systematic follow up is required to
ensure whether the agreed points are being met.
7. Taking timely review of the performance is crucial.

20. MANAGING DIFFERENT TYPES OF
EMPLOYEES
 CHARACTERISTICS :
DEFIANT
 Rebellious
 No initiative
 Non team performance
 THE MANAGER SHOULD :
 Avoid conflict
 Seek acceptance with
warmth.
 Develop two way
communication.

21. MANAGING DIFFERENT TYPES OF
EMPLOYEES
 CHARACTERISTICS :
UNDER ACHIEVER
 Excessive dependence
 Needs supervision
 Lacks initiative
 THE MANAGER SHOULD :
 Show empathy not sympathy.
 Exercise control over the initial
period of performance.
 Give advise not instruction.
 Set realistic goals and help in
preparing a action plan

22. DEALING WITH DIFFERENT TYPES OF
EMPLOYEES
 CHARACTERISTICS :
ASSERTIVE:
 Wants to control
 Likes doing things his way.
 THE MANAGER SHOULD :
 Encourage high performance
and grant recognition.
 Share objective with him/her
and seek his/her commitment.
 Delegation of work should be
done carefully and team work
should be encouraged.

23. THANK YOU