Performance Management System

Table of Contents

● Design a PMS System

● Goal Cascading
● Mapping the KRAs and KPIs
● Link Reward System to Achievement of KRAs
● Performance Counseling Techniques
● Reward and Recognition System
● Performance Report and Dashboard
● Timelines Quarterly and Mid-Year Reviews

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Learning Objectives

At the end of this module, you will learn

● The main factors of designing a PMS
● Explanation of Goal Cascading process
● Mapping process of KPIs and KRAs
● Role of Performance Counseling in employee
development
● Displaying Performance report through Dashboard
● Benefits of Quarterly and Mid-year reviews of employees

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Design A PMS
Introduction to Performance Management System

Performance management is a continuous process of

identifying, measuring and developing performance in
organisations by linking each individual’s performance and
objectives to the organisation’s overall mission and goals.

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 Performance Management is a process that brings together
many people management practices including learning and
development. It is a process which contributes to the
effective management of individuals and teams in order to
achieve improved levels of individual and organisational
performance and development.

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 Performance management is about establishing a
culture where individuals and teams take
responsibility for continuous improvement of service
delivery and of their own skills, behaviour and
contributions.

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Importance of PMS

● Provide a link between work planning for individual staff members

and overall department and Division goals
● Help staff members understand their job responsibilities and
improve job performance
● Recognize and reward staff member contributions, and foster
● Professional development and career growth
● Increase productivity and correct problems
● Required in the determination of merit increases

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Design A PMS
Planning
The supervisor should meet with employees to create their
performance plans. The supervisor should establish
miserable goals that align to the strategic and operational
plans and consult with his/her employees when creating
these goals.

Monitoring

The supervisor should monitor employee

progress, not only when there is a progress
review due, but on a continuous basis throughout
the appraisal period.

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Developing
The supervisor should be able to determine from
continuous monitoring whether employees need
additional development to achieve their assigned
responsibilities.

Rating
The supervisor will use the knowledge gained from
monitoring the employees performance during the
appraisal period to compare that performance against
the employees elements and standards and assign a
rating of record

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 Rewarding
The supervisor must make meaningful distinctions
when granting awards. Award amounts should be
clearly distinguishable between different performance
levels that are fully successful or above.

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Goal Cascading
Cascading Goals

● A hierarchical framework to structure an organization’s goals

● First strategic goals are set at the highest or executive level
● These goals cascade down throughout the rest of the
organization to set individual-level goals
● By setting goals at each level, team members can improve their
performance to scale the next level
● It creates alignment among team members

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 Set up an incentive program that
4
reinforces the goals

Reevaluate priorities and measurement 3

from top to bottom.

Align with team members by analysing the

strength and opportunities at each level. 2

Establish Specific, Measurable,

Achievable, Realistic and Time-Based 1
(SMART) goals at the executive level
Mapping the KRAs and KPIs
Key Performance Indicators (KPI)

Key Performance Indicators (KPI) are metrics

Financial KPIs Customer-centric
used by organizations to measure (profit and loss, (Customer satisfaction,
revenues, cost, or and retention or
sales volume) customer feedback)
employees’ efforts by evaluating the tasks
performed by them. Management monitors
Types
employees’ performance and contribution of
KPIs
against assigned duties during or after the
completion of a certain period. KPI also
Human-resource Product/Service
KPIs
suggests required improvements in (employee satisfaction
related KPIs
(Quality or change
and productivity, in product)
employees’ performance to attain overall employee turnover)

organizational goals.

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Key Result Areas (KRA)

Organizations assign a set of goals and objectives for each employee at the
beginning of the evaluation period. These are called Key Result Areas which
depend on department and functional role of an employee. In this process,
employees perform a fixed number of tasks based on which their
performance is evaluated. It helps employees to keep motivated towards
achieving predetermined goals while also helping the company fulfill its
business objectives.

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Mapping the KRAs and KPIs

Mapping KRAs and KPIs is known as competency mapping

which helps organisations to utilise employees strengths
and potential fully. It depends on the team structure,
leadership, and decision-making.

Key performance indicators analyse the performance of key

result areas which are defined to individual employees at the
beginning of the evaluation period and determine whether the
organization is progressing toward its goals.

KRAs outline the scope of the products or services offered

by the organization and monitor objectives set by an
organization, its departments, or employees.

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Mapping KRAs and KPIs in Sales Department:

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Mapping KRAs and KPIs in HR Department

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Mapping KRAs and KPIs in IT Department

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Examples of Mapping the KRAs and KPIs

● The KRA focuses on the recruitment and training of newly hired

employees, while the KPI would look at the Return on Investment (ROI)
per employee for the organization
● If there is an employee feedback program in an organisation, the KRA
addresses employee grievances, while KPI will evaluate the
effectiveness of the feedback program

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Link Reward System to
Achievement of KRAs
Achievement of KRAs

● Clearly identify and define KRAs to each employee and guide them to
increase their productivity to achieve those goals
● Managers should identify the area of improvements by monitoring tasks
performed by employees
● Managers should focus on long term employee career aspirations by
discussing the career objectives with individual employees on a regular basis
● Employees should be made clear on key performance indicators or the
metrics on which their performance is evaluated
● Prioritise KRAs according to their level such as Critical, High, Medium & Low

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 Performance Counseling
Techniques
Introduction to Performance Counseling

Performance Counseling is the process of providing help to the subordinates

by managers by analyzing employees’ performance.
The purpose of Performance Counseling is to:
● The employees understand their strengths and weaknesses in a better
way
● Clarifies his/ her professional and interpersonal competence through
feedback session about his/ her behavior
● Set the goals and design the action plans for further improvement

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Principles of Performance Counselling

There should be an open

environment for effective counselling

Empathic and mutual attitude of management

encourages employees to feel free to participate
in the communication

Discussion should be on work-oriented

beviour and difficulties as the main purpose
of counseling is employee development

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Performance Counselling Phases

Rapport Establish a climate of acceptance, warmth,

Building support, openness and mutuality so that
employees can share their perceptions,
problems, concerns, feelings etc. Subordinates
Performance should believe that their superiors are truly
Counselling interested in their career development.
Phases
The counsellor may ask open-ended
Exploration
questions to identify employee problems
and needs to improve his performance.

Develop an action plan based on the

Action discussion with the employee and superior
Planning may render some assistance in helping the
employee implement the agreed upon action
plan.
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Performance Counselling Skills

Listening: Active listening involves paying attention to the various messages sent
by the employee which shows concern towards employees.

Asking Questions and Responding: Asking questions help to get more

information, establish mutuality, clarify matters and stimulate thinking.

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Being Empathic: Empathic questions create a climate of mutual trust and human
understanding which will encourage employees to open up.

Positive Reinforcement: Positive reinforcement influences the behaviour by taking more

initiative and experimenting with new ideas.

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Reward and Recognition System
Reinforcement of Reward and Recognition
System

It is a kind of HR practice and the goal of the organization for attracting, retaining and
motivating employees. If implemented correctly, it motivates professionals to contribute
efficiently towards the result oriented goals. An efficient reward system is directly linked
with the performance development system and improves employee performance in several
ways
● Instilling a sense of ownership amongst the employees
● Facilitate long term focus with continuous improvement
● Reduces service operating costs
● Promotes teamwork
● Minimizes employee dissatisfaction
● Enhanced employee interest in the financial performance of the company
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Performance Report and Dashboard
What is Performance Dashboard?

Performance Dashboards are pre-configured pages displaying functional areas and

populated with associated charts and data which assist managers in assessing and

tracking employee performance. The Performance Dashboard is useful to visualize

device report data using various monitoring platform metrics.

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 Use of Performance Dashboard:
● Customizing widgets display settings
● Downloading and printing performance statistics
● Creating a new device or edit an existing monitoring device, or
certain tasks, directly from the dashboard

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 The Performance Dashboard monitors the following statistics:
● Overall statistics on monitoring platforms
● Device status
● Alert status
● Average response time
● Last response time
● Response time per monitoring location

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Timelines Quarterly and
Mid-Year Reviews
Importance of Quarterly and Mid-Year Reviews

For the people-centric, innovative companies, quarterly and mid-term

performance reviews are an excellent tool for employee development and
engagement. The mid-term reviews help employees to stay focused on their
goals. It also helps managers to continuously assess internal processes by
providing critical feedback and building engagement.

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 When to conduct a quarterly employee review?
● Schedule four reviews per year for each employee
● It could be near the end of the quarter or at the beginning of the next
quarter
● It allows you to review based on the fresh data
● Maintain the consistency by scheduling your quarterly reviews around
the same time each quarter

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 What to cover in a quarterly performance review?
● Review employee’s goals from the previous quarter by analysing the
skills, behaviors and performance
● Usie a rating system or series of questions
● Adjustment of goals or setting new goals for the upcoming quarter
● Address the issues that come up during the review
● Encourage open discussion on the working environment, conflict and
tools
● Raises and compensation discussion if it is the time when you normally
consider a raise

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Comparison between annual performance reviews and mid-year performance
reviews:

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Summary

Role of Performance
The main factors of Counseling in employee
designing a PMS development

Explanation of Goal Performance Displaying

Cascading process Management Performance report
System (PMS) through Dashboard

Mapping process of Benefits of Quarterly

KPIs and KRAs and Mid-year reviews
of employees

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