Implementing

Performance
Management Systems
Development of a
Performance Framework
PERFORMANCE AGREEMENT
CONTEXT
Culture
Management Style
PERFORMANCE REVIEW

PERFORMANCE PLAN
Structure

CONTENT
Procedures
Guidelines

Documentation

PROCESS
Objective Setting
Feedback / review
MANAGING PERFORMANCE THROUGHOUT
Counseling / Coaching
THE YEAR
Steps – PM Development
Programme
 Conduct a diagnostic review

 Set Objectives for Performance
Management

 Prepareand carry out Development
Programme
Diagnostic Review

 Context data on stakeholders,

organizational culture and
competencies, management style,
management structure, systems
and processes, strategic plans,
critical success factors.
 Strengths and weaknesses of the
current arrangement
 Diagnosis of what needs to be done,
why and how.
 Assessment of costs and benefits
Drivers for Introducing
PM
 Can be any one or more of the
following
 Build / Reinforce Performance culture
 Integrate the organisation
 Improve performance
 Develop competencies
 Provide information for driving R & R
programmes
 Increase / Sustain Motivation
 Empower people
 Align individual objectives to group
objectives
 Extra channel of communication
Procedural points

 How to do it?
 In a highly decentralised organisation,
separate business units may be allowed to
decide for themselves
 In a decentralised organisation, the central
management may require the divisions to
design in agreement and accordance with
certain general principles
 Most common and successful method is to
set up a project team or working group
with management and staff
representatives.
 Who should be covered?
 Different approaches according to level
Design points

 The process model – performance

agreement
 Use of objectives and competencies
(how will competencies be defined
and measured)
 How will objectives cascade down; how
teams and individuals will contribute
 Link to PRP if any
 Ratings if any
 What performance measures will be
used
 Documentation
 How much flexibility will be allowed in
the system
Development &
Implementation points
 People who will be involved in the
programme – their responsibilities
 Timetable for development and
implementation
 Arrangement for communication and
training to employees
 Pilot scheme arrangement
 Success criteria
 Arrangement to monitor and
evaluate implementation

What are the indicators of
a system working well?
 80% plans are completed without
follow up
 Line managers spend time with their
employees
 Clarity of goals to people
 People look forward to Performance
Review discussions
 Organisational support is there
 Performance culture
COMMONLY MADE
MISTAKES IN
IMPLEMENTING
PERFORMANCE
MANAGEMENT SYSTEMS.
Not having the right
emphasis.
 Most performance management
systems pretend to be what they
claim but actually end up
emphasizing performance
appraisals or ratings.
 Hence the overemphasis on
numbers is the first problem in the
performance management
systems.
Poorly designed
performance management
systems and formats.
 Poorly designed PMS may take many
forms.
 The poverty of the design is also
reflected in the spacing and such
other layout.
Multiple objectives make a
mess.
 Aiming at multiple objectives creates
an impression that PMS are magic
wands.
 Multiple objectives seem to raise the
expectations of line managers and
bring subsequent disappointment.
Multiple components may
make it a sophisticated
system
 Justlike objectives PMS can have a
number of components.
 They should not be overplayed, they
should be internalized.
Over Committing and Under
Delivering

 Over criticism of the past and over
projection of the new or changed
system as the panacea for all past
problems
 Most of the time the previous system
did not work well.
 Over criticism of the previous system
raises expectations from the
present system.
System introduction with
fanfare

 They forget that the real work
begins after introducing the new
system.
 Inadequate efforts made at the
Implementation
Lack of organizational
support
 Support may be terms of basic work
conditions , resources, facilities,
inputs from internal customers.
 The HR department should act like
an OD facilitator.
Lack of competencies in
HR department
 Business sense and involvement in
the main business of the
organization.
 Counselling skills
 System building and monitoring
skills
 Interest in working with the line
managers.
Image of the HR
department
 Another major hurdle is the image of
the HR department.
 It is also important to create and
promote a sense of ownership
among the line managers.
Lack of follow up on the
part of the HR department
 The follow up could take the many
forms.
 It should be done both at the
individual level and at the primary
group level.
Top Management
Commitment
 Lack of time for the senior managers
to plan their own or their
subordinates performance.
Past experience with all
the systems
 Most of the systems introduced
earlier were disasters.
 In such organizations there are
inherent difficulties in making the
system work.
Nature of the system

 PMS has some inherent issues, which

make it difficult for all people to
appreciate.
 It needs continuous reinforcement,
reassurance and renewal to keep it
alive and productive.
THANK YOU