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The Performance Management System

A Presentation by,

Karishma

Kharat

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WHAT IS PERFORMANCE MANAGEMENT

Process that significantly determines how organizationperforms.

Performance Management is a process for establishing a shared

understanding about what is to be achieved and how it is to beachieved.

An Approach to manage people which increases the probabilityof achieving success…

An ongoing communication process that involves both theperformance manager and the employee.

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Why Performance Management

Setting and Measuring Goals

Providing Feedback

Facilitating Promotion Decisions.

Facilitating Layoff or Downsizing Decisions

Encouraging Performance Improvement

Motivating Superior Performance

Counselling Poor Performers

Determining Compensation Changes

Encouraging Coaching and Mentoring.

Supporting Manpower Planning

Determining Individual Training and Development Needs

Determining Organizational Training and Development Needs

Providing Legal Defensibility for Personnel Decisions

Validating Hiring Decisions.

Improving Overall Organizational Performance

Encourage and reward behaviors that are aligned with organizational mission and

goals

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PMS Cycle

•Establishing individual/team objectives

•Describing job expectations

•Describing competencies and planning improvements

•Describing tasks

•Training and development planning

•Agreeing performance standards

•Coaching

•Counselling

•Feedback

•Self monitoring

•Monitoring training & development activities

•Formal review of performance

•Performance measurement

•Formal team feedback sessions

•Individual self-review

•Peer group and upwards appraisal

•MBO & Balance Score Card

•Praise

•Promotion/Job enrichment

•Links to individual and/or team pay

•Prizes

•Special Awards

•Other forms of recognition

Managing Performance

Reviewing Performance

Planning Performance

Rewarding Performance

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PMS Process

Goal Setting

Appraiser

Appraisee

Measurement

Parameters

Job Analysis

Appraisal Feedback

Improved Performance

bjective of PMS

Trg, Devp, Prom,

Rewards

Counseling &

Mentoring

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Performance Appraisal Process

Plan the Performance Identify

Performance Goals CommunicateGoals Establish Performance

Criteria

Determine: Responsibility

for Appraisal ,Appraisal Period,

Appraisal Method(s) ,Computer Software

Examine Work Performed

Appraise the Results

Normalization

Anticipate and Consider

Problems in PA EffectivePA Systems

Management Support

Coaching and T&D

Rewards & Recognition

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PMS AT THERMAX

Performance Management system has strong linkage with

employee’s development process and his/her annual

rewards.

Balance Score Card and MBO .

Individual Contribution Plan is based on

Clarification of expectations.

Set priorities .

Define the performance measurement .

On going feedback and coaching to the employee.

The ICP also deals with employee’s areas of Development

through a subsection called the ‘Area of improvement’.

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Setting S.M.A.R.T. Goals

Specific

Measurable

Attainable/Agreed Upon

Realistic/Relevant Time-bound

Scale of Measurement

Exceeded

Achieved

Partially Achieved

Not Achieved 8



THE ICP CREATION (GOALSETTING) Time bound goals.

5 to 7 Goals.

Each Goal has Weightage based on Importance & Impact.

Routine , Repetitive, mere activity oriented items of work are not a part of ICP.

The Sum of Weightages.

An ICP becomes a valid ICP only after approval of the ImmediateSuperior .

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MID-YEAR REVIEW

Evaluating employee’s performance against theemployee’s performance plan (ICP).

Reflects both performance against goal anddemonstration of competencies.

Reviews done on the basis of collected data from

regular performance monitoring. It means,Self Assessment

Manager Assessment

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ANNUAL APPRAISAL

The backbone of the performance appraisal process.

Three motives

Review the performance in the year gone.

Highlight the achievements . Find out what could have been done better.

The Appraisal Form

The four parts.

The Review meeting If appraisee was offered self development opportunities.

Development Action Plan for the next year.

Career aspirations/Role Change.

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RATINGS & CATEGORIZATION

Categorization is done on the basis of :Criticality of the employee Know how.

Performance on the job.

Consistency of Performance

Growth Potential as depicted by ability to perform work at a higher level.Commitment

Ratings :

Ratings are from 1 to 10

Categorisation : C1, C2, C3, Z

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NORMALIZATION

Average

(70%)C2

Superior

(20%)C1

Need

Improvement(10%)C3

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Bell Curve Method



REWARDS & RECOGNITION

STIP

Promotions

Salary Revisions

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Developing Business Plans.

Establishing aspects of performance that need to be measured.

Setting up Systems to Monitor & Evaluate.

Defining the General Performance Expectations of Employees.

Agreements on Specific Performance Objectives.

Developing an Internal Communications System. Ensuring that the performance Appraisal System is well understood & is working

effectively.

Supporting employees to help them perform well.

Seeking Performance improvement.

Recognizing & Rewarding good performance.

Steps to Effective Performance

Management

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LEARNING ON PMS…

The Process.

How Individual Contribution Plan is made.

The Appraisal process:

Self Appraisal.Review meetings.

Normalization Process for ratings.

DAP collation (Identifying training needs).

Lining up interviews for Promotion.

Follow up on ICP submission with the HOD.

Uploading Goals (ICP) in the HRIS system.

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ADDITIONAL LEARNINGS AT

THERMAX

The process of Training Evaluation

Identifying the employee who have not been evaluated post training.

Getting the Training Evaluation form filled from the respective heads.

Filing up the evaluations according to the trainings given for the audit.

Analysis of the training needs identified last year and if the training havebeen given.

Analysis of the nominations of the training

• Professional Skill MappingMaking the Skill Mapping template.

Deriving the skills from the respective Job description.HRIS

• Uploading the ICP on HRIS.

• How is HRIS useful to HR.

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Behavioral Event Interview

• What are competencies.

•Types of Interviews.

• BEI, the process.

Lining up Promotion Interviews (co ordinated in the

administration process)

• Maintaining the record of the batches.• Properly filing the documents.

• Understanding of the documentation needed for promotion.

• Handling last minute changes.

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RECOMMENDATIONS

Training to appraisers & Reviewers on new developmentsand the processes.

Constant mails to be sent till the ICP submission is done

Self Appraisal section to be included separately.

To improve the ICP submission process , after the trainingon HRIS is given, an evaluation test can be given.

A one to one feedback should be given to the employeeswhose ratings have been revised after the normalizationprocess.

Development Action Plan, the training needs need to be inline with the training calender.

The line managers & HODs can be given training oncoaching & Mentoring.

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APPRAISAL – A TIME TO

EVOLVE

THANK

YOU

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