performance management systems session11

8/4/2019 Performance Management Systems Session11

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Performance Management

Systems

Session: 11

Prof: Yasmin

Yasmin 1


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Books for reference

A.S. Kohli, T. Deb

Performance management system a holistic

approach

B D Singh

Performance management Herman Aguinis

PMS

R K Sahu


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What is PMS?

Process of performance planning (goal setting),

Performance monitoring and coaching,

Measuring (evaluating) individual performance

linked to organizational goals, Giving him/her feedback,

Rewarding the individual based on his/her

achievements against set performance goals andrequired competencies

And working out a plan for his/her development

Yasmin 3


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PMS Process Cycle

Yasmin 4

Performance

Planning

Performance Linked

Reward and

Development Plan

Performance

Monitoring and

Coaching

Performance

Measurement and

Feedback


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Yasmin 5


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PMS also facilitates

Career planning

Redeployment/ transfers

Career counselling Assessment of potential

Job redesign

Clarity of performance goal and direction

Yasmin 6


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Performance (definition)

The achievement of an employee against the

expectations for his/her role along clearly

defined targets for the year.

Organizational requirements based on

company goals

Role areas of the individual position

Yasmin 7


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Competency (definition)

Its a combination of knowledge, skill and

attitude required for an individual to

effectively perform in a role

Competency definitions in terms of

demonstrated behaviors

Competency criticality and proficiency

requirements for effective performance of a

role

Yasmin 8


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Potential (definition)

The capacity of the individual to handle higher

responsibilities based on his overall abilities

and current competency levels

Overall potential of an individual (capacity)

Current competency levels of the individual

The competency levels required at the higherlevels

Yasmin 9


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PMS process objective

The Evaluation objective:

Performance evaluation and assessment of the

readiness of an individual to take on higher

responsibilities To provide feedback to individuals on their

performance levels and on current competency levels

To generate data required for decisions on salary,

bonus and promotions

Yasmin 10


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PMS process objective

The Development objective: To counsel and coach subordinates so that they improve

their performance and develop competencies

To motivate subordinates through recognition and support

To strengthen supervisor subordinate relationship

To define the training requirements based on individual

competency

To diagnose individual and organizational competencies, so

that actions can be taken on problem areas

Yasmin 11


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Importance of PMS

A Performance Management System enables a business tosustain 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 .

Most importantly, it gives supervisors and subordinates an equalopportunity to express themselves under structured conditions

Organizations can effectively manage the performance appraisalprocess with our online performance management system

It calls for a high level of co-ordination, channeled informationflow, and timely review

Yasmin 12


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Key outputs of PMS

Individual level expectations and targets

Performance status and corrective actions

Individual performance evaluation(quantitative and qualitative)

Individual competency evaluation

Individual development plans- Training Individual potential evaluation

Yasmin 13


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PMS Steps and linkages

1. Performance planning: under this step the organizationalgoals are selected and deployed to the respectivedivisions, departments and individuals, and individualtargets for the year are set

2. Performance monitoring and coaching: this happens during thecourse of the year. Organizational goals,division/departmental and individual goals arereviewed against current performance, and course

correction and coaching is done to enhanceperformance. Mid term individual review andcorrective action planning are also part of this step

Yasmin 14


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PMS Steps and linkages

3. Individual evaluation: under this step individual levelperformance, competencies and developmentrequirements are reviewed and assessed. Feedback onthe assessment is given to the individual. Company

level moderation and finalization of performanceevaluation is also done

4. Linking the evaluation with pay and other areas: under this stepthe data generated from individual appraisal is used to

decide on salary, career progression. Competencydevelopment etc. this step also includes feedback &development planning and upgradation.

Yasmin 15


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Linkage of pms to various other

processes

Yasmin 16

PMS

Performance

Assessment

Compensation

Upgradations/

Promotions

Job Rotations and

Transfers

Training and

Development

Competency

Assessment


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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 whenan employees performance fails to meet expectations. Its purpose

is to achieve an improvement in performance.

Individual development plan An action plan for enhancing an

employees level of performance in order to excel in the current job

or prepare for new responsibilities.

Yasmin 17


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PMS Includes

Performance appraisal A confidential document that includesthe employees performance expectations, a summary of the

employees actual performance relative to those expectations,

an overall rating of the employees performance, and the

supervisors and employees signatures.

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. Performance documentation A letter, memo, completed form, or

note on which the supervisor indicates the extent to which theemployee is currently meeting expectations and provides

evidence to support that conclusion.Yasmin 18


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Performance management

contribution

Motivation to perform is increased

Self esteem is increased

Managers gain insight about subordinates

Self development

Administrative actions are more fair andappropriate

Organizational goals are made clear Employee become more competent

There is better protection from law suits

Yasmin 19


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Performance management

contribution

There is better and more timely differentiation

between good and poor performers

Supervisors view of performance are

communicated more clearly

Organizational change is facilitated

Motivation, commitment and intentions to

stay in the organization are enhanced

Yasmin 20


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Dangers of poorly managed PMS

Increased turnover

Use of misleading information

Lowered self esteem Damaged relationship

Decreased motivation to perform

Unclear rating system

Yasmin 21


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Dangers of poorly managed PMS

Employee burnout and job satisfaction

Increased risk of litigation

Unjustified demands on managers andemployees resources

Varying and unfair standards and ratings

Emerging biases

Yasmin 22


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Case study

One eg of a poorly implemented performance managementsystem resulted in a $1.2 million lawsuit. A female employeewas promoted several times and succeeded in theconstruction industry until she started working under thesupervision of a new manager. She stated in her law suit that

once she was promoted and reported to the new manager,that the boss ignored her and did not give her the samesupport or opportunity for training that her male colleaguesreceived. After eight months of receiving no feedback formher manager, she was called into his office, where the

manager told her that she was failing, resulting in a demotionand a $20,000 reduction in her annual salary. When she wonher sex discrimination law suit a jury awarded her $1.2million in emotional distress and economic damages


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Characteristics of an ideal PMS

Strategic congruence

Thoroughness

Practicality

Meaningfulness Specificity

Identification of effective and ineffectiveperformance

Reliability Validity

Acceptability and fairness

Yasmin 24


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Characteristics of an ideal PMS

Inclusiveness

Openness

Correct ability Standardization

Ethicality

Yasmin 25

performance management systems session11

Documents