Performance Management - what are the required material for implementing PMS for a company size of 28-40? - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Coaching Managers To Improve Their Skills
Soft Skill Trainer / Hr Consultant - India
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Hi, Can you please suggest me to implement PMS in a start up company? Also please let me know what are the required material for implementing PMS for a company size of 28-40. Awaiting your guidance.
Dear Nandini,
To institute PMS, it is better to take help of some professional consultant. PMS is major HR intervention and if mishandled, it may do more damage than good.
I have written replies on this subject so many times. You may refer my following comments:

Dear Nandini,
First and foremost, please note that I am not "Dinkar" and I am "Dinesh Divekar".
First we have to identify KPIs for each department. Based on the KPIs, we have to make KRA. Based on these two PMS is developed. There is no difference between "small" or "big" organisation as far as KPIs are concerned. These are universal and do not have geographical relevance too. I recommend you watching my video on the Youtube. It will bring clarity on the concepts of KPI and KRA:
Let me reiterate my previous suggestion of hiring external consultant. A little knowledge is a dangerous thing. Hope you or your management takes note of this proven adage and does not try to defy it.
Dinesh V Divekar
Thanks Dinkar - I see that we have to prepare KRAs first - can you please throw some light on this with respect to small sized organisations?

Hi Dinesh - Sorry for the name misspell. Sure. Will go through it.

My advice? Don't do it.

Performance management is a bureaucratic process based on controlling employees through commands and policies. It is meant to appear to improve performance, but all it does is prevent management from achieving huge performance gains by causing their employees to become fully engaged.

The very best performing workforce loves to come to work and has very high levels of competence, confidence, trust, morale, autonomy, commitment, motivation, peace of mind, ownership, and pride. Such a workforce is hundreds of percent more productive than if poorly engaged. But current worldwide studies indicate 70% of employees are either not engaged or actively disengaged (meaning working against the company) so there aren't many best performing workforces.

If you want the very best, there are specific actions management can take to create such a workforce and specific reasons why those actions are effective while other actions such as PMS consistently cause poor performance. The required actions are simple to learn and simple to execute. I am willing to advise management if desired.

Best regards, Ben Simonton

Leadership is a science and so is engagement

Hi Nandini,
Am a retired Head of HR / Sr. DGM of Construction & Mining Equipment Business of Larsen & Toubro Limited, Bangalore. I have over 20 years of experience in HR domain. After retirement I have been advising many small and medium companies on Structuring / Restructuring of Wage, Designation, Reporting, Performance Management System, Training Need Analysis and so on.
If you are interested, I am available for a formal consultancy with your firm, in which case, please get back to me.
Best wishes

In fact, presently I am providing consultancy for a firm in Abu Dhabi right now on Performance Management System. Best wishes
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