How to Build mature performance management system without any automation software? -Part 1

How to Build mature performance management system without any automation software? 

Part 1- Basics : What is a mature performance management system?

One of the major challenge for HR professional is to ensure a mature performance management system in organization. Every CEO expects that its HR should be able to evaluate each employee performance and help in increasing organization productivity.

Question is what does a mature performance management system means?

I think the answer is quite simple. If you are able to identify your good and not good (why not to say poor) performers correctly (not on basis of your gut feeling but on basis of some facts and figures) then you can claim that you have a mature performance management system. Sounds easy and simple but trust me it is not that effortless at all.

Before we go ahead and talk about how can we achieve a mature performance management system, let’s spend some time understanding what could be possible benefits of having it in place.

I can remember some of them and I would like all my friends practicing HR to add, if I miss something here.

Appreciating and Rewarding good performers

Organizations are willing to spend money and reward people who are performing good but such initiative can be a failure if you are not sure whether the person, you are rewarding is a good performer or favorite of his manager. Mature performance management system helps organization identifying good performers so that money spent in rewarding such people do not go waste. We will discuss what can be done to reward such performers in upcoming blog.

Taking actions to improve employees not performing well or may be ways to get rid of them

No organization, wants poor performers in their team but the question is, how do they know who is actually a poor performer? Performance management system helps to you find such employees and improve them if possible. If improvement is not possible after all possible efforts from organization then HR should start finding ways to get rid of them. We will discuss about such action in upcoming blog. You can refer blog "Various actions HR should take post performance evaluation of employees" to know kind of actions HR person should take.

Think...you can also know, not only, employee performance but also, how a department is performing and further how organization is performing?

Performance management do not limit itself only to identify employee performance level but it also take you to next step and tell you, how a particular department or business unit is performing. You can also measure organization performance with a mature performance system. We will discuss in detail in upcoming blog. But just to give you an idea how this is possible, let me take an example.

It is a very simple formula which says, average or weighted average of all team members will be performance of that department or business unit. Example, if in a department called ABC there are 3 team members i.e. A, B and C. Let’s say performance of A is 100%, B is 90% and C is 20% which means total performance of all is 210%. If we take average of all, it will be 70%  (210% / 3 team members). Hence performance of Department ABC will be 70%.

On the same concept you can figure out organization performance by taking weighed average of all departments. Don’t worry we will discuss in detail further.

Enhance employee morale and motivation

Trust me guys, a mature performance management system always build trust among employees. HR needs to play very important role in making this happen. Every employee (except those who want to get paid for doing nothing), appreciate that they are aware about what they need to do (KRA), which KRA is more important than other (weigh-age of each KRA), how their work will be evaluated (KPI) and logic behind their performance measurement.

With above benefits in mind let’s start understanding how can we build one such performance management system................................

Next Part (Part 2)

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