UNIT 4 IMPLEMENTING PERFORMANCE MANAGEMENT SYSTEM Flashcards
is the key driving force to
employee’s productivity, development, rewards and awards”
Performance Management
System
a systematic process for
improving organizational performance by developing the
performance of individuals & teams.
Performance Management
roadmap for creating a High Performance organization through the integration of organization’s vision, values, systems and people.
Performance Management System
Performance Standards
Performance Measurement
Quality Improvement Process
Reporting of Progress
Performance Management System
OBJECTIVE OF PMS
Drive individual and hence organisational performance;
Develop organisational culture and individual capabilities;
Measure performance in a more objective and systematic manner; and
Facilitate effective HR and operational decisions in line
with organisational strategy.
is a change in the structure of your
company. That could be a reorganization, layoffs, or just a
team change due to a strategic or mission statementchange.
operational change
are some of the roughest for your
employees because they never quite know what to expect. At least with a change in technology they aren’t likely to find themselves without a job.
Operational changes
IMPLEMENTING PERFORMANCE MANAGEMENT PROCESS
Performance management policies
Performance objectives and standards
Performance appraisal process
Managing underperformance and discipline
Rewards and remuneration strategy
Development plans and learning and development activities
TYPICAL PMS CYCLE
Planning
Monitoring
Assesstment
Consequence
PITFALLS/LIMITATIONS OF PERFORMANCE MANAGEMENT
Performance appraisal is a perplexing activity
Performance expectations are unclear or misunderstood
Putting process over purpose
Communication gap
Considered only as a management directive
CONTRIBUTIONS OF PERFORMANCE MANAGEMENT SYSTEMS
Motivations to perform is increased.
Self-esteem is
increased.
Managers gain insight about subordinates.
The definitions of job and criteria are clarified.
Self-insight and development are enhanced.
Administrative actions are more fair and appropriate.
Organizational goals are made clearer.
Employees become more competent.
There is better protection from lawsuits.
There is better and more timely differentiation between
good and poor performers.
Supervisors’ views of performance are communicated
more clearly.
Motivation, commitment, and intentions to stay in the org are enhanced.
BENEFITS OF PERFORMANCE MANAGEMENT SYSTEMS
Better communication
Better workflow management
Develops a conductive learning and development
environment
Fair, reliable and secure
DISADVANTAGES OF PERFORMANCE MANAGEMENT SYSTEMS
Risk of Internal Competition
Favoritism
Time Consuming
Expensive
Manager’s Dilemma
Job Dissatisfaction
Unjustified Demands of managers and employees
Damaged relationship
Increased Turnover
Competition starts cropping up within a team when employees are compared with
each other within the same parameters. This leads to internal politics pulling down the overall performance of
the team
Risk of Internal Competition
Managers are also human beings who at time fall into the prey of doing favoritism with their subordinates which lead to internal cold war within the team.
Favoritism
The entire appraisal process needs an eye for detail in understanding every employee current performance, reason behind their drawbacks, career aspirations which delays the process
Time Consuming
Implementation of technology for driving the PMS results into high expense of an organisation.
Expensive
Sometimes the manager’s get into dilemma in taking decision between two best performers in a team which may lead to serious dis-engagement and politics starts arising.
Manager’s Dilemma
When the employee does not get the desired hike in salary after the appraisal process, it leads to dissatisfaction in their job. This happens primarily because of the manager’s inability to convince and justify the rating given to an employee.
Job Dissatisfaction
At times, unjustified, impractical demands or expectations are made not only from the manager but also from the employees during administering the appraisal process due to which unfair standards and ratings are given which have an adverse effect on the performance.
Unjustified Demands of managers and employees
If the appraisal interviews are not conducted properly justifying pros and cons of an employee, it leads to an argument thereby damaging the relationship of a manager and n associate.
Damaged relationship
Increasing internal competition, manager’s favoritism and not fulfilling the expectation of the employee’s leads to dis-engagement resulting into increase in staff turnover.
Increased Turnover
