Scribd
Upload
46 views

Performance Management System-2011PSN

This document discusses performance management systems. It defines performance management, explains why performance is measured, and outlines the objectives of a performance management system. It discusses key aspects like key result areas (KRAs), key performance indicators (KPIs), balanced scorecards, and linking individual performance to overall business performance. The document also outlines a three-step performance management cycle involving planning performance, delivering and monitoring performance, and assessment.

Uploaded by

neerajaps27
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
46 views

Performance Management System-2011PSN

This document discusses performance management systems. It defines performance management, explains why performance is measured, and outlines the objectives of a performance management system. It discusses key aspects like key result areas (KRAs), key performance indicators (KPIs), balanced scorecards, and linking individual performance to overall business performance. The document also outlines a three-step performance management cycle involving planning performance, delivering and monitoring performance, and assessment.

Uploaded by

neerajaps27
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 25

Performance Management

System
PSN
Tug of War
• A man can exert 20kNf in normal condition
25kNf 15kNf

20kNf 15kNf
20kNf 30kNf 15kNf

Side A Side B
Definition
The output delivered by an employee in relation
to a given role during a specific period of time
under the set of circumstances operating at that
point of time.

Performance management is a dynamic and


continuous process.

Performance management is a system which links


the individual performance to the Business
performance
Why we do not like PMS
As Appraisee
• Surprise
• Subjective
• No linkage / Clear idea on how we are being
appraised
• Secretive
Why we do not like PMS
As Appraisor

• Cannot remember
• Tedious
• Subjective
• Right targets
• Defensive staff
• Prejudices
• Results or Activities
OBJECTIVE OF PMS
• ‘Performance’ – achievement,
• ‘Management’ – controllable, improvement
• ‘System’ – predictable outcome, autorun

Summary?
• A Predictable process to Improve Controllable
Achievements
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.
Objectives
•To review past performance

•To facilitate career counselling/development

•To improve future performance

•To set performance objectives

•To identify training needs


Objectives (Contd..)
•To aid salary review

•To improve communications

•To assist manpower planning/recruitment

•To assess potential

•To provide feedback


Vision

To become one of the


world’s most admired
enterprises in power
sector. Staying ahead in
technology trends
Mission

Creating best value


to all our stake
holders, society and
economy
HOW THE LINK HAPPENS
Strategic Planning Vision - Mission - Values

Departmental Goals/Objectives

Performance Planning Manager KRAs and KPIs


Individual KRAs/KTs and Standards
Manager/Individual Performance Objectives

Appraisal Performance Objectives


(Ongoing/Annual) (Achieved or Not Achieved?)
WHY?

Training & Development


Individual Development Coaching & Mentoring
Plan Succession Planning

Pay Adjustments
Rewards Incentives
Bonus
What is KRA (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
Characteristics of Effective Goals
Recognized as important
Clear
Written in specific terms
Measurable and framed in time
Aligned with organisational strategy
Achievable but challenging
Supported by appropriate rewards
Steps in accomplishing goal
• Break each goal down to specific tasks – with
clear outcomes
• Plan the execution of those tasks – with time
tables
• Gather the resources needed to fulfill each
task
• Execute the plan
Balanced Scorecard
Rewards
• Intrinsic reward
– Achievements
– Recognition
– Work itself
– Responsibility
– Advancement
– Growth
– Company policy and administration
Rewards Cont…
• Hygiene factors
– Supervision
– Relationship with supervisor
– Work condition
– Salary
– Relationship with peers
– Personal life
– Relationship with subordinates
– Status
– Security
Three Step Module
• Link Individual performance to the overall
business Performance

• Assess Individual Performance across 4 Balance


Score card parameters

• Differentiate between performance in terms of


three types across the peer groups ( 20% - Top
Performers, 70% - Middle Performers, 10% - Low
performers)
Performance Management Cycle

Assessment Planning Performance


- Annual performance assessment - Defining Individual Objectives
Performance
Management
System

Delivering and
Monitoring Performance
- Ongoing Review
- Ongoing Management support
Stage 1- Planning Performance
• From the Organization’s goals, performance goals are
arrived for Strategic Business Units.

• From SBU’s Goals, individual Departments objectives are


arrived.

• From the Departments objectives, Manager’s objectives are


arrived and to achieve them Key Result Areas and Key
Performance Indicators are defined for all the appraisees.

• Appraisee and Appraisers discuss on the Key Result


Areas(KRA) to be achived , Measurement parameters, ie.
Key Performance Indicators (KPI) are defined along with
time lines
Stage 2: Delivering and Monitoring
Performance
• Once the performance parameters are planned and the KRAs are assigned
to the individual, delivering them is the responsibility of the individual
while the appraiser(Reporting/reviewing/HOD) will continuously monitor
the performance and provide guidance.
 
• An automated mail will be generated to the appraisee once KRAs and KPIs
are assigned to him / her.
 
• As the appraisee is aware of the KRAs to be achieved and KPI to evaluate
the performance, he / she will start working and the progress is notated
periodically.

• This will enable the appraisee to focus on the achievement of the KRAs
and also keep the appraisers linked to the appraisee to monitor the
progress and give appropriate guidance to improve the performance and
ultimately achieve the set goals.
Stage 3: Assessment
• Performance management system , with its
online feedback mechanism, should ultimately
result in achieving the planned performance
or exceed the planned performance.
 
• The assessment is done on a periodical basis ,
which could be quarterly, half yearly or
annually, as per the business requirements

You might also like