Part 6- Five Essence of mature Performance Management system to make it successful.

Part 6- Five Essence of mature performance management system to make it successful.

Lot of efforts is required to implement performance management system successfully and these efforts should be continuous. Normally it takes more than 6 months, after starting PMS activities, to start getting expected results. Refer my previous blog, describing benefits of having a matured performance management system i.e. http://hrsuccesstalk.blogspot.com/2013/01/how-to-build-mature-performance.html

We should take care of followings while implementing PMS:

HR should check each and every employee’s performance evaluation thoroughly:

It is very important, that HR should have a look at performance evaluation of each employee especially in starting days of implementation of PMS, when both manager and employee is new to this. This is a time consuming but worth exercise. In case number of employee in organization are more, than this work should be allocated to different HR representatives. I would suggest 100 employees should be allocated to a HR executive for validating performance evaluation.

HR should thoroughly check followings:

· Employee KRA is defined properly and all KRA are mentioned in evaluation criteria.

· Weightage of each KRA is proper and same as what is been communicated to employee earlier.

· Evaluation criteria should not be lenient or strict. 

· There are data points behind each evaluation.

· Basic calculations should be correct.

Maintaining historical data of employee’s performance: 

HR should maintain month by month performance related data of each employee. Even if, employee leaves the company, separate record should be maintained. This can be done in excel or through automation. This will help both employee and manager to understand the pattern of employee performance so that action plan can be decided. 

HR should maintain performance percentage and rating of each employee month by month. HR should also maintain evaluation sheet of employee on monthly basis. This evaluation sheet can be referred in future, especially at the time of taking strict action against employee or annual salary appraisal. 

Share employee’s monthly rating and performance with employee:

One of the essence of matured performance management system is transparency in the system. It simply means, every employee should be aware about his monthly rating and performance percentage. To do so, HR can circulate current month and previous months rating and performance percentage with employee, once it is verified by manager and HR. This will help employee to understand expectations from him and how is monthly performance is evaluated.

Resolving employee queries and concerns:

Once HR circulate performance of employee, it is obvious to get queries or concerns from employees especially who have scored less than 3. Sometime employees scoring 3, raise concern as they believe that they have performed more than expectation. It is responsibility of both HR and manager to immediately address these concerns and discuss with employee along with data points. Resolving such queries on day one will ensure that employee has understood , what is expected from him and how employee can deliver the same?

Taking action on both non performers and performers:

Below are the actions suggested for each performance rating. Every organization needs are different hence you can decide action which you would like to take. I am giving an outline for your understanding.

Rating	Instance	Quick Step	HR Action	Manager Action
Rating 1	1st Time	Put Person under PIP	Send PIP Mail to Employee	Counselling and explaining PIP Objectives
	2nd Time	Out of System	HR to communication along with Manager
Rating 2	1st Time	Counselling	Send email intimation to Manager asking to fill Counselling form. Place filled Counselling Form in Personnel File	Manager to counsel Employee. Fill Counselling Form. Send to HR
	2nd Time	Put Person under PIP	Send PIP Mail to Employee	Counselling and explaining PIP Objectives
	3rd Time	Ask to Go	HR to communication along with Manager
Rating 4 or Rating 5 ( Only Departments where HR is convinced about Maturity of Incentive Declaration)	1st Time	Motivating Employee to achieve the same going forward as well	Appreciation Call from HR	Appreciation From Manager
	2nd Time	Reward achievement	Monetary Reward as per Incentive Policy
	3rd Time	Career Progression	Name in Star Performer, Discussing Expectation of Team Member	To suggest road map
	4th Time	Grooming for next level	Organize Training Program and move to next level with consent of Mgmt	Organize Training Program and move to next level with consent of Mgmt
Jump in rating or Difference  of 2 in rating	Any Month	Manager to justify in case data is not matching	HR to ask reason from Manager	Manager to give valid reason for same

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