Performance

management system
and appraisal
GROUP NO. 2
SECTION I
ABHAY SINGH
Presented to: AMYN SAYANI
Prof. Sanyunkta Jolly ANIRBAN DAS
JASMEET KAUR
JNANA RANJAN PATI
PRATIBHA SHARMA
VIKASH VERMA
 What is performance
Management ?
Performance Management – A management
process for ensuring employees are focusing
their work efforts in ways that contribute to
achieving the agency’s mission.
 It consists of three phases:
 (a) Setting expectations for employee

performance,
 (b) Maintaining a dialogue between

supervisor and employee to keep

performance on track, and
 (c) Measuring actual performance relative

to performance expectations.
General Perception About PMS &
Reality
GENERAL BELIEF :
ØLinked only to pay and rewards.
ØIt is only an evaluation of the
past.
ØThey are remote from facts.
ØIt’s a necessary must for the
organization.
REALITY :
ØIt is a constructive activity which
leads to personal growth.
ØIt is review of the past for better
results in future.
ØIt is based on objective.
ØIts an opportunity given by
organization.
 PMS – An
Opportunity
ØTo direct current
performance towards the
organizations requirement.
ØTo harness potential within
the individual and utilize it
to the optimum level.
ØTo improve relations.
 Why measure performance ?

 Because
 What you cannot measure you cannot
improve.
 If you cannot improve you cannot grow.
 Measurement helps in objectively
differentiating between performers and
non performers.
 Pay for performance is possible only
through
 metrics.
 PMS Includes…
 Work plan


 Corrective action plan



 Individual development plan



 Performance appraisal


 Performance documentation


 Fair appraisal
 Objective of PMS
 To confirm the services of probationary
employees upon their completing the
probationary period satisfactorily
 To check the effective & efficiency of
individuals, teams & organization
 To effect promotions based on competence
and performance
 To access the training and development needs
of the employees
 To decide upon the pay rise
 PM can be used to determine whether HR
programmessuch as selection, training, and
transfer have been effective or not.
 Highlights Of The System

 The appraiser and the appraise jointly set

the Key Result Areas (KRA’s) and assign
mutually agreed weightage expressed as
a percentage
 Simple mathematical relationship between
set weightage and accomplishment gives
a final numerical score on KRA’s
 To evaluate all management personnel on
company values and leadership
attributes a new section has been added
entitled “Values in Action”
 What is a Key Result Area ?
 A KRA refers to a target that needs to be
achieved by the appraisee in a given
time
 KRA’s are the set of performance
expectations from the appraisee
 The focus is on tangible outputs. However
this does not mean that tasks that have
a qualitative output cannot form a KRA
 Setting KRA in case of a Functional
Reporting Relationship

 Functional reporting cases will require input

from the functional superior in setting KRAs
for the appraisee.
 The appraiser , the appraisee and the
functional superior will have to mutually
agree upon the KRAs for the appraisee.
 In case of a disagreement , it will be the
functional
 superior’s responsibility to convince the
administrative
 superior to reach an agreement on the KRAs
and communicate the same to the appraisee.
 Components of PMS
 Performance Standards - establishment of
organizational or system performance standards,
targets and goals and relevant indicators to
improve public health practice


 Performance Measures - application and use of

performance indicators and measures

 Reporting of Progress - documentation and
reporting of progress in meeting standards and
targets and sharing of such information through
feedback

 Quality Improvement - establishment of a
program or process to manage change and
achieve quality improvement in public health
policies, programs or infrastructure based on
performance standards, measurements and
 Performance Cycle

SETTING
EXPECTATION

PROVIDING OBSERVATION
ACTIONABLE BEHAVIOUR AND
COACHING & MEASURE
FEEDBACK RESULT
 Importance of PMS
 Enables a business to sustain 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 equal opportunity to express
themselves under structured conditions.
 Organizations can effectively manage the
performance appraisal process with our online
performance management system.
 It calls for a high level of co-ordination,
channeled information flow, and timely
review.
Appraising Performance
 Performance Appraisal
 A process of determining how well
employees do their jobs compared to
a set of standards to improve their
performance effectiveness.


 Appraisal involves:
– Setting work standards
– Assessing actual
 performance vs set standards
– Identifying conditions influencing
performance
– Discussing with the employees and
giving feedback
 Appraisal Objectives
 Evaluative/ administrative purpose
– Personnel decisions (promotion transfer,
layoff, retention)
– Motivational decisions (rewards, grades,
incentives)


 Developmental purpose
– Assessment of personal/professional
competency and potential
– Identification of development needs
– Training and development decisions

 Appraisal process steps
 1. Establish performance appraisal
standards
 2. Mutually set measurable goals
 3. Measure actual performance
 4. Compare actual with standard
 5. Discuss appraisal with employee
 6. Corrective action
– Basic
– Immediate



 Effective Appraisal
System
–Use behaviour/ outcome based
measures
–Monitor and documents
performance records
–Provide on-going feedback
–Avoid perceptual errors
–Have both interactive (interview)
and written (form) structure
–Have multiple raters
–Involve the employee in the
appraisal process
–Train appraisers
 Appraisal methods
 Traditional methods
– Graphic Rating
scales
– Ranking methods
– Checklist methods
– Essay-form
appraisal
– Group appraisal
 Modern methods
Ø BARS
Ø MBO
Ø 360 degree
performance
appraisal

Performance Appraisal
Distortion

 Leniency
 Halo
 Similarity
 Central tendency
More Effective Appraisal -
Peers
 Positives
– Constructive
criticism
– Specific
feedback
 Negatives
– Fear
– Halo, leniency
error
– Training
More Effective Appraisal (360-
Degree)
 Multiple appraisers
– Self
– Boss
– Peers
– Team members
– Customers
– Suppliers
 360-Degree Appraisal

The after


effects……….
– Increase
manager’s
awareness of
own actions
– More accurate
feedback
– Empowerment
– Developing
leadership
– Reduces
 Conclusions

 Providing a better understanding of

the impact of PMS in their business.

 Understanding the use of positive
factors associated with positive
impacts of PMS.

 Enhancing the selection and
optimization of PMS factors that
lead them to have positive impact
on business performances.