Performance Management Systems and Methods of Appraisals, Slides of Human Resource Management

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Performance Management

Systems

• (^) PMS
• (^) Distinction between Performance appraisal Performance Management
• (^) Major Methods of Appraisals
• (^) Feedback

Performance Management System

• (^) Performance Management System is one of the most important systems as part of overall human resources system of the organization.
• (^) This is a process of evaluating the performance of the employees in terms of requirement of the job and the role in which an employee is employed.
• (^) The performance management system is the core for all development activities. The evaluation of performance is done with a view to identify the employees in terms of their level of performance.

Objectives of PMS A. Making decisions related to promotion and up-gradation B. Confirm the services of trainees, probationary employees on completion of requisite period. C. Assess the training and development needs of the employees D. Make decisions with regards to salary raise E. Provide a feedback to employees on their performance, and help them achieve better performance F. Use the process to communicate with the employees on overall objectives and goals of the individual and organization G. To evaluate the effectiveness of selection, training and transfer decisions.

Distinction between Performance appraisal Performance management Performance appraisal Performance management Top-down assessment Joint process through dialogue Annual appraisal meeting Continuous review with one or more Formal reviews It is a part of performance Management Process It is a wider concept than appraisal Use of ratings and ranking Ratings less common Monolithic system Flexible process Focus on quantified objectives Focus on values and behaviour as well as objectives Looks back to find out what has gone wrong in performance Looks forward for further development Often linked to pay Less likely to be a direct link to pay Bureaucratic paperwork Documentation kept to a minimum

Issues in PMS

1. Wrong Design : The performance management system and tools must fit with the specific needs of the organization. It cannot be a duplication of a system designed and implemented in another organization, even an organization in the same industry or the same business group.

• The system should be fair and equitable. Performance management should be viewed as a continuous process and not an activity conducted once or twice a year. The design should also include mechanisms for rewarding performance and handling poor performers.

2. Absence of Integration : The performance management system has to be integrated with the strategic planning and human resource management systems as well as with the organizational culture, structure and all other major organizational systems and processes.

Issues in PMS..

3. Lack of Leadership Commitment : Leadership commitment and support is a must for smooth implementation of the system. Leaders must drive the process and make performance management an integral part of the management of the company. Leaders contribute not only in setting the strategic direction and performance measures but also in monitoring and reviewing performance across the organization. They also reinforce the performance cycle by recognizing and rewarding performance.

4. Ignoring Change Management in System Implementation : Strategic management of change is a vital part of implementing the system. Driven by the top management, it involves careful management of resistance. Communication would be a major intervention and a key tool in managing the change. Implementation milestones and schedules must be followed.

Issues in PMS...

7. Communication Issues : To alleviate misconceptions and to ensure that the benefits and implementation of PMS are well understood, organizations should communicate contentiously until all employees are aware of and become part of the implementation process, a proactive communication strategy and process must be followed throughout the implementation of the performance management system.

Major Methods of Appraisals

90 Degree Appraisal 180 Degree Appraisal 360 Degree Appraisal 540 Degree Appraisal 720 Degree Appraisal

180 Degree Performance Appraisal

• (^) 180 degree appraisal is one of the simplest ways to appraise employees. The employee evaluation process starts with self-evaluation step where the employee fills a form giving appropriate ranking to himself / herself and shares feedback on their own performance.
• (^) After completion of this step, the manager discusses the self-appraisal of the employee in a review meeting. Once all the information is agreed by both the parties, including the manager and the employee, appraisal is finalized.
• (^) A comprehensive 180 Degree Appraisal includes a discussion about an employee’s training needs and development plans.

180 Degree appraisal

Reporting

Person

Employee

180 Degree Performance Appraisal....

• (^) 180˚ Appraisal extends the traditional appraisal process to make the feedback process two way.
• (^) Feedback from team members can be provided to their line manager on a one-to-one basis during the individual’s appraisal discussion, or it can be collated and presented as group feedback from all team members.

Benefits of a 180 Degree Appraisal Process to employees

• (^) A 180 Appraisal meeting provides a formal opportunity for managers to show verbal recognition and appreciation for an employee’s efforts.
• (^) An open and honest discussion: at the appraisal meeting enables appraisers to give objective feedback on performance. Ideally this feedback is fair and balanced in terms of good performance and areas that require development.
• (^) A well structured 180 Degree Appraisal ensures clear targets: are agreed with employees for the coming year.
• (^) Ensure employees are crystal clear about their role and responsibilities.
• (^) A comprehensive 180 Degree Appraisal includes a discussion about an employee’s training needs and development plans.

Advantages of 180 D PA..

• (^) Simpler report – data resulting from a 180 exercise in the participant’s output report shows self, supervisor and norm group – 3 powerful data points; this is plenty to consider for development planning and are also probably the most important data points to consider anyway
• (^) Less annoying for raters – Employees are probably running multiple participants through the assessment which means that you may be asking raters to complete surveys for multiple participants which can become annoying and tiresome (rater fatigue), rendering the resulting data less reliable and consuming time away from core job duties. A 180 solves this problem.
• (^) Quick and more affordable –a 180 can be done quickly (a day or two, typically) with no follow-up time or effort needed

360 Degree Appraisal

• (^) An appraisal made by top management, immediate superior, peers, subordinates, self and customers is called 360 Degree Appraisal.
• (^) Here, the performance of the employee or manager is evaluated by six parties, including himself. So, he gets a feedback of his performance from everyone around him.