Performance

Management

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Performance Management System.
Performance management system
(PMS) is set of techniques and
procedures for improving
organizational performance.

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Objectives of PMS
Focus on objective setting.
Develops systems for ongoing review of objectives.
Develop personal improvement plans.
Aligns with training and development.
Formal appraisal with feed back.
Helps in pay review.

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Various dimensions in performance.
Results and output.
Input Dimensions.
Time Dimensions.
Focus Dimensions.

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Who Manages Performance?

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The performer or the candidate whose performance is
being planned, analyzed, assessed, developed, etc. It is
he who manages his performance. The boss is an
important instrument in managing performance. He
has the responsibility to ensure that is defined,
planned, analyzed, measured, reviewed and
developed. He is a partner in this. It is the performer
who has to manage his performance

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Performance Appraisal

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Definition
Performance appraisal may be understood as the
assessment of an individual’s performance in a
systematic way, the performance being measured
against such factor as job knowledge, quality and
quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment,
versatility, health, and the like.

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Objectives of Performance Appraisal
To effect promotions based on competence and
performance.
To confirm the services of probationary employees upon
their completing the probationary period satisfactorily.
To assess the training and development needs of
employees.
To decide upon a pay raise where regular pay scales have
not been fixed.

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Continue…
To let the employees know where they stand so far as
their performance is concerned and to assist them
with constructive guidance for the purpose of their
development.
To improve communication. Performance appraisal
provides a format for dialogue between the superior
and the subordinate, and improves understanding of
personal goals and concerns.
To improve the performance of the appraisee through
a systematic approach.

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Importance of Performance
Appraisal to the Company

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General Application Specific Purpose
Development Uses Identification of individual needs.
Performance Feed back.
Determining training and job assignments.
Identification of developmental needs

Administrative uses/decisions Salary

Promotion, retention or termination
Recognition of individual performance

Organizational maintenance HR Planning

Determining organizational needs
Evaluation of organizational goal achievement
Reinforcement of HR systems

Documentation Documentation for HR Research

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Steps in Performance Appraisal.
Establishment of performance standards. This is done
mostly while developing job description.
Communication of standards to the employees.
Measurement of performance
Comparison of performance with the job standards.
Discussing the appraisal results with the employees
Initiating the corrective action, where necessary

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Role of Appraisals in Performance
Management

Appraisals are a part of performance management. If

the management involves improvements, the moment
you assess where we stand there is an appraisal taking
place. Therefore without some form of appraisal
management becomes difficult.
Appraisal systems help managers manage their
performance.

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Comparing Performance Appraisal
and Performance Management

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Comparison
Performance Appraisal
 Setting work standards.
 Assessing Employee
performance.
 Providing feedback.
Performance Appraisal is
donewith the aim of
motivating him or her to
eliminate performance
deficiencies
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Performance Management
Performance Management is a
process that unites goal
setting, performance
appraisal, and development
into a single, common system
whose aim is to ensure that
the employee’s performance
is supporting the company’s
strategic aims.
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Performance Appraisal and Competitive
Advantage
Improving Performance.
Making Correct Decisions.
Minimizing Job Dissatisfaction and Turnover.

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Challenges of Performance
Appraisal
 To Create a culture of excellence that inspires every employee to
improve and lend himself or herself to be assessed.
 To Forge a partnership with people for managing their careers
 To Empower employees to make decisions without the fear of failing
 To Embed teamwork in all operational processes
 To Debureaucratise the organization structure for ease of flow of
information

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 Thank You

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