ABSTRACT ON PERFORMANCE MANAGEMENT SYSTEM Definition:  A performance management system is a predetermined set of guidelines for individuals employed by a company

and is used to describe the current position to the employee and lay out the expectations of company management for the employee. Describing in detail the required duties for a position also allows management to set rewards and bonuses for the position so the company gains the maximum potential of the employee. It also helps the employee to understand his responsibilities toward the company  The Performance management system is also defined as the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities OBJECTIVES OF PMS :y y y y y y y y y To enhance Quality, reduce Cost and achieve the desired Goals To study the process in which people are enabled to perform to the best of their abilities To identify The main reasons for poor performance across the set standards Improving Employee Morale Linking pay with the performance of the Employees To study the Continuous process and to understand the employee s ability, competencies, relative merits and worth of the organization. To Design effective compensation and recognition systems that reward people for their contributions. To evaluate the performance, competencies, values, performance and potential apparaisal To Provide effective orientation, education, and training and motivate The Employee for better contribution

The Three Phases of PMS:Performance management using a management-by-objectives (results-based) approach has three phases: Phase 1 - Planning A work plan for the next year is developed; and the measures for assessing progress are established.

Phase 2 - Monitoring Progress toward the goals are identified in the work plan is monitored, and the plan is adjusted if required; and corrective action is taken if necessary. Phase 3 - Reviewing At the end of the performance management cycle the manager and employee meet to document the work of the past year; accomplishments and shortfalls relative to the work plan are summarize using a performance management form