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Monday, 4 February 2013

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.

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.

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
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

Previous Post (Post 5)

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Unknown said...

Great set of ideologies to be considered for as to increase employee morale and performance and also team building in an organisation.
Charity Team Building

Govind Singh Negi said...

Thanks Roberts

Anonymous said...

great post It's helpful for everyone.

OfficeNet said...

thanks a lot for sharing that nice content regarding performance management system. keep it up

Govind Singh Negi said...

Thanks for your appreciation

Anonymous said...

excellent post but still wants to know the means and method to club all such rating based on different KRAs.

Govind Singh Negi said...

Dear Friend,

To learn more please visit our website and click on LEARN HR link

Adeel said...

Thank you for more detailed information very well written performance management. especially about the features or benefits a performance management software should provide Automate and streamline the performance appraisal process of your organization and ensure goal achievement, productivity, continuous feedback, coaching, and development. Avail 30-day free trial of 360factors Performance Management Software today!

sonia mehata said...

Performance management is a process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organization.
Today there are number of employee performance evaluation software are present in the market. Performance management software also helps track employee performance against business objectives to easily track skills and increase competencies for areas that will have the greatest impact.
There is one of the best performance management software from cornerstone you can try

Unknown said...

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Unknown said...

A performance management system is a tool or resource, typically a software tool, that companies can use to evaluate the performance of their employees.

dipika singh said...

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Amazing post.Thanks for your details and explanations..I want more information from your side.Thank you
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Unknown said...

it is the best blog from all of that thanks for sharing it i have also a blog on....need for employee management

balexar said...

What are you cooking for dinner today?


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Anonymous said...

Thank you for sharing information Successful performance Management

Raju kumar said...
This comment has been removed by the author.
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