I have recently shifted to an IT co. which is a new industry for me & this is a relatively smaller enterprise with an employee strength of about 40. I would want to know what is the best way to setup an effective PMS system here for performance appraisals etc. The management is not ready to spend on ERP/SAP. Please suggest.

From India, Chandigarh
Dear Harshdeep,

It is myth to believe that PMS requires software. Paper-based PMS is not inferior in any way. Essence of PMS lies in ability of all the managers in designing right KRAs and conducting proper Performance Appraisal (PA) based on the KRAs.

Software helps in simplifying the manual job and that is all. Manual procedure increases the job of HR in filing the documents etc. You may continue with the paper-based PMS till you attain the strength of 100. At later stage it becomes little more difficult to manage the papers.

Your major challenge lies is framing the policy on PMS, train all your 40 employees on PMS so that they understand it correctly, ensure that proper execution of this policy takes place in toto. All this is much easier said than done.

I handle training on PMS extensively. To know more about this training, you may click here.


Dinesh V Divekar

Beware of false knowledge; it is more dangerous than ignorance.

From India, Bangalore
Dear Dinesh
Thanks a lot for the valuable inputs. I would appreciate if you can give me rough draw on how to setup PMS in an IT software co. where HR deptt. was non existent prior to my joining. From my knowledge, the first question to the management was to know if they have defined KPIs which nobody has any clue about. I am on my way to further define KRAs for individual profiles. Can you please throw some light on how to further go about it? Inputs from other are also welcome.
Harshdeep Singh

From India, Chandigarh
Dear Harshdeep,
As Dinesh mentioned, it is easier said than done. However, it is not impossible.
You mentioned that HR did not exist prior to your joining, which means you have to start from scratch. Therefore, manpower planning is very important. First you need to have an organization structure with clear role for each position. Then you can consult with each departmental head about JD / KRA of their team members. Subsequently, KPIs can be defined.
And of course, at this stage it would not be a wise idea to straightaway get into PMS without having the basics right. You can discuss with your management and do the PMS this year in the same way as they have been doing in the past. By next year you can create a proper system for PMS and that would be more effective.
Hope this will help you.

From India, Mumbai
Dear Harshdeep,
Few members has already provided their input on the page but one thing is clear first and foremost thing is that Top Management should be willing to adopt the PMS and than if the internal resistance is not there than you can slowly start mentoring the process with different title so that persons starts accepting it. We are doing this practice in one of the Big Process Industry. IT has so much inputs cannot be posted here for this i will request you to visit our website <link outdated-removed> ( Search On Cite | Search On Google ) and reach to us so that we can talk and find the way out for your concerns.
SK Jain

From India, Delhi
You can design the assessment form in Excel and employees can use the same for yearly assessment. The benefit is that if later the company grows and acquired a system, the excel form can be uploaded into the new system. Thus performance history of an employee will always remain available. Being an IT company this is easy since all employees will have access to computer.
From India, Mumbai
Dear Harshdeep,
Please note that you should be clear about PMS , it can easily be done thru the Manual process no automation is required. You have understand the organisation line of business & thier Key goals associated to it, for example for each organisation resource capacity utilization is a major challange, if you define the org goals and later corelate them to the Employees definately you will help the organisation to achieve desired outputs.
Dinesh Kumar
Program Manager
Program Management Practices (PMO) <link updated to site home> ( Search On Cite | Search On Google )

From India, New Delhi
dear mr harshdeep

god bless you

i fully appreciate your top brass not wanting to invest on ready made PMS solutions..most of them are not suitable to your needs

now you have a very good opportunity to show your talent

1. get your knowledge of ms excell updated

2. if you are too good you could use ms access which can later on get linked with your solution either developed or bought.

3. excell has immense possibilities for handling up to 1000 staff

4. all this kra and kpi are advanced steps and is dynamically changing periodically .

5. step 1 . start from the lowest resource in the ladder .

6. make a chart and write out the job description of the table/ position involve each person of the table to help you to crystallise the job. use his superior to rewrite it .

7. then make out his routine targets for the day/week / fortnight .

8 step 2 once you have taken time to know the job description and the out put expected from each person

allot one sheet per employee and group them into departments .

allot table numbers / task numbers / employee numbers any thing you want and rename the sheet

9. step 3 then decide on the measuring tools to be employed for assessing performance

use various qualities and rate them on a 9 point scale

10 we can talk of quarterly/ six monthly/annual assessment in next session .


dr ram

From India, Indore
Dear Hardeep,
for implementing the PMS effectively you have motivate your work force for the advantages of PMS and also have to manage the change on implementation. Both of these are the very important factor for a successful PMS.

From India, Pune

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