PMS

The simplest and most widely applicable definition of the term is "Performance refers to VISIBLE RESULTS".  Visible means it should be visible to others apart from the performer.  In an organizational context, it is the superior, peers & subordinates to whom these results should be visible.  Performance is also about results along – not about activities.

 

Performance (P) = ∫(Expectations, Competencies, Motivation, Organizational support)

 

Performance is the function of the four variables as given above.  Expectations refer to the targets and behaviours that superiors, colleagues, subordinates as well as the employee himself expects from the employee under review.  Competencies refer to the knowledge, skills, attitudes and values.  Motivation is the intrinsic need & urge to DO things.  Organizational support refers to the organizational culture that reflects the kind of behaviours accepted or rejected in the organization together with the values that the organization lives by.

 

The performance of an organization is managed by monitoring and managing the performance of the individual employees in the organization.  The objectives and goals of individual performance are determined based on the objectives and goals of the organization.  Hence, the successful performance of an organization is a culmination of individual performances and contributions.  Performance Management is a critical and sometimes controversial aspect of organizational management.

 

Performance Management is therefore a process of establishing a shared understanding about what is to be achieved, and how it is to be achieved, and an approach to managing people that increases the probability of success.

 

The above definition clearly shows that it is a process or a series of activities and not just one activity; secondly it focuses on results to be achieved and the way it is to be achieved, rather than activities.  Finally, it is also an approach reflecting a philosophy of managing people – that increases the probability of business success.  Performance management is therefore a system – it is a comprehensive process of planning and evaluating performance, feedback and continual improvement.

 

The Performance Management System originates with a decision from the top management to have such a system.  Need assessment is undertaken and a practical detailed system in consultation with the management team and opinion leaders is desired.  The next step is to communicate to concerned employees to ensure shared understanding and acceptance of the system.  Training must be imparted to all concerned in goal setting, performance review and developmental planning.  An implementation plan is then devised and actioned.

 

The Performance Management System (PMS) gives every employee a set of goals (KPIs or KRAs), a road map and standards of performance and criteria for measurement.  It then enables one to measure the performance of individuals and teams.  It is a tool for equitably and transparently deciding on rewards, relocation, promotions, training & development, career planning, succession planning and even deciding on non-performers.  It brings in discipline in planning & reviewing performance.  It provides coaching for performance and continuous feedback.  The performance duration is specified.  It strengthens a performing culture and enhances the sense of accountability across the organization. 

 

PMS seeks to bridge the gap between individual performance objectives to the organizational goals.  It cultivates a healthy partnership between the HR, superior and subordinate.  It fosters better and open communication, promotes individual and collective development and provides the employee, team(s) and organization with constructive and continuous feedback. 

 

Summarized Steps in Implementing a PMS

 

*         Top Management Decision

*         Need Assessment and Practical System Design

*         Annual Operating Plan

*         Team Level Plan

*         Individual Plan

*         Inspiring & Motivating

*         Training, Coaching and Problem Solving

*         Periodic Review & Feedback

*         Assessing Developmental Opportunities

*         Decisions on Rewards

*         Communicating Management decisions

*         Modification in the Plan

 

[Each step in the implementation may bring about a change in the earlier steps].