Performance Management System

1. Performance Management System WWW.PPTMART.COM

2. Performance Management System • It is an organization - wide management program that provides a structured approach to: • Communicate business strategy • Establish a shared understanding of what is to be achieved and how it is to be achieved • Facilitate management of self and others • Measure and motivate performance (organizational and individual) WWW.PPTMART.COM

3. Contd… • 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. WWW.PPTMART.COM

4. PMS Consists of… • A process for communicating employee performance expectations, maintaining ongoing performance dialogue, and conducting annual performance appraisals; • A procedure for addressing employee performance that falls below expectations; • A procedure for encouraging and facilitating employee development; • Training in managing performance and administering the system; and • A procedure for resolving performance pay disputes. WWW.PPTMART.COM

5. 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. WWW.PPTMART.COM

6. 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 programmes such as selection, training, and transfer have been effective or not. WWW.PPTMART.COM

7. PAS & PMS • PAS: • Emphasis is on relative evaluation of individuals • Annual exercise • Rewards & recognition of good performance • Designed & monitored by HR department • Ownership is mostly with the HR dept. • PMS: • Emphasis is on performance of individuals, team & orgn. • Continuous process • Performance rewarding may or may not be integral part • Designed by HR dept. but monitored by respective dept. • Ownership is with the line managers, HR facilitates its implementation WWW.PPTMART.COM

8. PMS Includes… • Work plan – A document that describes the work to be completed by an employee within the performance cycle, the performance expected, and how the performance will be measured. • Corrective action plan – A short-term action plan that is initiated when an employee’s performance fails to meet expectations. Its purpose is to achieve an improvement in performance. WWW.PPTMART.COM

9. Contd… • Individual development plan– An action plan for enhancing an employee’s level of performance in order to excel in the current job or prepare for new responsibilities. • Performance appraisal– A confidential document that includes the employee’s performance expectations, a summary of the employee’s actual performance relative to those expectations, an overall rating of the employee’s performance, and the supervisor’s and employee’s signatures. WWW.PPTMART.COM

10. Contd… • Performance documentation– A letter, memo, completed form, or note on which the supervisor indicates the extent to which the employee is currently meeting expectations and provides evidence to support that conclusion. • Fair appraisal– Appraising employees in a manner that accurately reflects how they performed relative to the expectations defined in their work plan and in a manner that is not influenced by factors irrelevant to performance. WWW.PPTMART.COM

11. HIGHLIGHTS OF THE SYSTEM • The appraiser and the appraisee 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” WWW.PPTMART.COM

12. 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 • The focus is on tangible outputs. However this does not mean that tasks that have a qualitative output cannot form a KRA WWW.PPTMART.COM

13. 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. • In some cases, functional goals could be super-ordinate to business goals. WWW.PPTMART.COM

14. 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 WWW.PPTMART.COM

15. Contd… • 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 reports. WWW.PPTMART.COM

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17. Importance of PMS • A Performance Management System 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 . WWW.PPTMART.COM

18. Contd… • 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 WWW.PPTMART.COM

19. Performance Cycle SETTING EXPECTATIONS PROVIDING ACTIONABLE COACHING & FEEDBACK OBSERVING BEHAVIOUR AND MEASURING RESULTS WWW.PPTMART.COM

20. Appraise Need For Further Discussion • The reviewer meets the appraiser to investigate the point of disagreement. • The reviewer decides to meet the appraisee to hear his / her views. • The reviewer examines the case and communicates his / her decision to the appraiser. • The appraiser communicates the decision of the reviewer to the appraisee. WWW.PPTMART.COM

21. FURTHER LINKS EMERGING FROM THE PMS • Rewards and Recognition • Training and Development • Potential Appraisal • Career and Succession Planning WWW.PPTMART.COM

22. THANK YOU WWW.PPTMART.COM