Performance

Management
System (PMS)

Performance
Management
Definition of performance Management
System

Dimensions of performance Management

system

Role of performance Management system in

Organisation

Characteristics of an ideal performance

Management systems

Performance Management
(Definition)
Performance management is a continuous process of
identifying, measuring and developing performance in
organisations by linking each individuals performance and
objectives to the organisations overall mission and goals.

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.

Performance management is about establishing a culture

where individuals and teams take responsibility for
continuous improvement of service delivery and of their own

Our Mission is to impart quality higher

education in consonance with our motto
learning promotes natural talent. We
strive to develop citizens with knowledge,
skill and character leading to societal
transformation and national development.
We aim at making our students men and
women who offer their selfless service for
the progress of the country and people.

Performance Management

The
Annual
Performance
Management
Process

Organizational Strategies
Performance Management

Performanc
e
Managemen
t linkage

-Identify expected performance levels

-Encourage high levels of performance
-Measure individual performance; then evaluate
-Provide feedback on individual performance
-Provide assistance as needed
-Reward or discipline depending on performanc

Employee performance
Performance Management outcomes

-Pay increases
-Incentive rewards
-Promotions /advancement
-Training and development
-Career planning
-Disciplinary actions

Organizational results

-Goals met or not met

-Employee satisfaction or dissatisfaction
-Coordination between performance and pay

Components of the
Performance Management
System (PMS)
There are four components to the PMS as
described below.

A Performance Review Cycle (PRC)

The Performance Improvement Plan (PIP), a

supportive approach to addressing
underperformance

HR and Discipline Specific Professional

Practices within the organisation

Performance Management
The Importance of Performance Planning

The purposes of the performance management

program are to:
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
8

Performance
Management
is NOT
performance appraisal

PM is NOT performance
appraisal
Performance

Management

Strategic business considerations

Driven by line manager

Ongoing feedback

So employee can improve performance

PM is NOT performance
appraisal
Performance

Appraisal

Driven by HR

Assesses employee
Strengths &
Weaknesses

Once a year

Lacks ongoing feedback

Contributions of Performance
Management

For Employees

Clarify definitions of
job
success criteria

Increase motivation to perform

Increase self-esteem

Enhance self-insight and development

Contributions of Performance
Management

For Managers

Communicate supervisors views of performance

more clearly

Managers gain insight about subordinates

Better and more timely differentiation between

good and poor performers

Employees become more competent

Contributions of Performance
Management

For Organization/HR Function

Clarify organizational goals

Facilitate organizational change

Fairer, more appropriate administrative actions

Better protection from lawsuits

Purposes of PM Systems

Strategic

Administrative

Informational

Developmental

Organizational maintenance

Documentation

Purposes of PM Systems

Strategic Purpose

Link individual goals with organizations goals

Communicate most crucial business strategic

initiatives

Purposes of PM Systems

Administrative Purpose

Provide information for making decisions

regarding:

Salary adjustments

Promotions

Retention or termination

Recognition of individual performance

Layoffs

Purposes of PM Systems

Informational Purpose

Communicate to employees:

Expectations

What is important

How they are doing

How to improve

Purposes of PM Systems

Developmental Purpose

Performance feedback/coaching

Identification of individual strengths and weaknesses

Identification of causes of performance deficiencies

Tailor development of individual career path

Purposes of PM Systems

Organizational Maintenance
Purpose

Plan effective workforce

Assess future training needs

Evaluate performance at organizational level

Evaluate effectiveness of HR interventions

Purposes of PM Systems

Documentation Purpose

Validate selection instruments

Document administrative decisions

Help meet legal requirements

An Ideal PM System:
14 Characteristics

1.

Congruent with organizational strategy

2.

Thorough

3.

Practical

4.

Meaningful

5.

Specific

6.

Identifies effective/ ineffective performance

7.

Reliable

An Ideal PM System:

14 Characteristics (continued)
8.

Valid

9.

Acceptable and Fair

10.

Inclusive

11.

Open (No Secrets)

12.

Correctable

13.

Standardized

14.

Ethical

Congruent with
organizational strategy

Consistent with organizations strategy

Aligned with unit and organizational goals

Thorough

All employees are evaluated

All major job responsibilities are evaluated

Evaluations cover performance for entire review

period

Feedback is given on both positive and negative

performance

Practical

Available

Easy to use

Acceptable to decision makers

Benefits outweigh costs

Meaningful

Standards are important and relevant

System measures ONLY what employee can control

Results have consequences

Evaluations occur regularly and at appropriate

times

System provides for continuing skill development of

evaluators

Specific

Concrete and detailed guidance to

employees
Whats
How

expected

to meet the expectations

Identifies
effective and ineffective
performance

Distinguish between effective and

ineffective
Behaviors
Results

Provide ability to identify

employees with various levels of
performance

Reliable

Consistent
Free of error
Inter-rater reliability

Valid

Relevant (measures what is

important)
Not deficient (doesnt measure
unimportant facets of job)
Not contaminated (only measures
what the employee can control)

Acceptable and Fair

Perception of Distributive Justice

Work performed Evaluation received

Reward

Perception of Procedural Justice

Fairness

of procedures used to:

Determine

ratings
Link ratings to rewards

Inclusive

Represents concerns of all

involved
When

system is created, employees

should help with deciding
What

should be measured
How it should be measured
Employee

should provide input on

performance prior to evaluation
meeting

Open (No Secrets)

Frequent, ongoing evaluations and

feedback
2-way communications in appraisal
meeting
Clear standards, ongoing
communication
Communications are factual, open,
honest

Correctable

Recognizes that human judgment

is fallible
Appeals process provided

Standardized

Ongoing training of managers to

provide
Consistent evaluations across
People
Time

Ethical

Supervisor suppresses selfinterest

Supervisor rates only where she
has sufficient information about
the performance dimension
Supervisor respects employee
privacy

Contributions of performance management systems

Motivation to perform is increased

Self-esteem is increased
Managers gain insight about subordinates
The definitions of job and criteria are clarified
Self-insight and development are enhanced
Personnel actions are more fair and appropriate
Organisational goals are made clear
Employees become more competent
There is better protection from lawsuits
There is better and more timely differentiation between good
and poor performers
Supervisors views of performance are communicated more
clearly

Disadvantages/Dangers of Poorlyimplemented
PM Systems

For Employees

Lowered self-esteem
Employee burnout and job
dissatisfaction
Damaged relationships
Use of false or misleading
information

Disadvantages/Dangers of Poorlyimplemented
PM Systems

For Managers

Increased turnover
Decreased motivation to perform
Unjustified demands on managers
resources
Varying and unfair standards and
ratings

Disadvantages/Dangers of Poorlyimplemented
PM Systems

For Organization

Wasted time and money

Unclear ratings system
Emerging biases
Increased risk of litigation

Disadvantages/Dangers of Poorly
Implemented PM
Systems

Employees may quit due to results.

False or misleading information may be used.

Self-esteem may be lowered.
Time and money are wasted.
Relationships are damaged.
Motivation to perform is decreased.
Employees suffer from job burnout and job
dissatisfaction.
There is increased risk of litigation.
Unjustified demands are made upon managers
resources.
Standards and ratings vary and are unfair.
Biases can replace standards