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Just like a heritage monument an organization which lasts for long is the one which is built with careful designing and systematic planning. The principles of planning organizing directing and controllingare indeed important contributors towards sustained growth and profitability.However in rapidly growing organizations these basics are often forgotten, especially when it comes to managing performance.
It is wrongly assumed that performance can be extracted from an individual without proper planning, organizing, directing and controlling. Performance management systems encompassing effective appraisals are the backbone of any professionally managed human resource systems.
Traditionally appraisals were merely an annual act for rewarding and reprimanding, individuals who met or failed to meet management expectations. In today’s fast growing and complex organizations it is the need of the hour to manage performance at every level. Achieving organizational growth requires contribution from every level and that in turn requires well designed performance management systems.
Need of Performance Management Systems :Continuous improvements in performance at individual, dyads, group/team level and Organizationallevels can be termed as effective performance management systems.
Every organization needs to manage performance for:
- Survival in a competitive world (maximum speed with minimum resources)
- Growth and profits
- Establishing an High Performance Organization that lasts
- To put to use the best talents of people in the Organization
PMS vs. Performance Appraisals: Performance Appraisals are now being replaced by Performance Management Systems This is due to change in focus from appraisal to performance. In appraisals the focus is on appraisal and not so much on performance, however now the focus is on performance and its Management.
Steps in effective Performance Management Systems :-
- Performance Planning- This step ensures clear planning and setting clear accountability of how we are going to work in the coming year and what are the clear expectations between boss and reporting officer. Performer with help of supervisor or seniors in the context of organizational and unit plans, on the basis of previous performance and bench marks where possible clearly lays out the annual plan with short term and long term goals. The planning is participative in nature.
- Performance Analysis- The superior identified the Competencies and qualities (attributes) required and compiles the self- Appraisal analysis to identify developmental needs at this stage it-self.
- Performance Review Discussion: Objective of this step is to review performance over predetermined period of time and identify facilitating factors/hurdles in achieving effective performance. They mutually discuss ways of over-coming hurdles. They also decide the frequency of the PRD and aim to spend quality time. The PRD gives good insight to superior and the subordinate both.
- Performance Development: At this stagedevelopment needs are identified and development action plans are made so that corrective measures can be taken to improve performance.
- Performance Monitoring /rewarding: Ratings by individual/superior, are analyzed and reviewed. Based on this analysis rewards &recognition plans are announced. This can be an annual or bi-annual exercise. The feedback upon developmental plans, are also shared to ensure smooth functioning going ahead.
Overall summing it up the performance management systems can help the organization grow and sustain
profits in an organized manner.
References: Performance Analysis and Review Workbook – ©T.V Rao Learning systems , Ahmedabad
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