Dear Readers,
Please share the complete process of setting up a new PMS process in any organisation.
If I have to implement the new PMS process in an organisation of 100 manpower size, what all pointers need to be kept in my mind before implementing it.
Awaiting your thoughts.

From India, Mumbai
First, you have to fully understand the concept of Appraisal. Then, you have to have chosen an appraisal tool that fits and is easy to implement in your company.
My company, Emilla International Consulting Services can help you. We have our own PMS that fits all types of industry and size of business organizations.
Contact us directly if you have a budget.
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
Manila, PHilippines
Email: <[email protected]>

From Philippines, Parañaque
I totally agree with what Mr/Ms. Ed Llarena mentioned above. I would like to add more that HR department study, establish the draft and provide to all line managers at your company for completing the draft before bringing to practices. Or You should consult with each line manager who is a head of each department and also Mr.CEO at your company for what they want to evaluate employee performance, how to measure it or which data of employee performance is available.
Best regards,

From Vietnam, Hai Phong
Dear Madhur,
I provide consulting services to establish comprehensive Performance Management System (PMS) in the company. To know the details of the services, you may click the following link:
Dinesh V Divekar

From India, Bangalore
Dear Madhur,

I can give you some guidelines to start this activity. The important assumption is, the performance of individual department & each employee therein must help organization to achieve it's objective ( Growth ) for the year. So to start with ask your MD about what your company wants to achieve in the coming year. Now to achieve these objectives, define objectives of each department. Break these departmental objectives in to individual employee's objectives for the year. Each departmental head need to discuss objectives of respective employee individually & get his agreement on the same.Now suppose there are five objectives for an employee, we must rank each objective in the order of it's importance in terms of percentage so that sum of rankings given to all 5 objectives would total to 100. As a next stage define criteria to ascertain successful achievement of each objective. To keep each employee motivated periodic reviews -say quarterly- are taken by each departmental head. At the end of year make an assement of individual employee on his percentage score & based on his score decide the criteria for increments/ performance bonus/ promotion etc. This exercise needs lot of detailed working, defining practically company's Goals & objectives, good understanding between employees & their departmental heads & last but not the least- discipline to reward only on the basis of performance without any individual whims & biasness.All employees must also be briefed on operation of such performance management program before the start. You can contact me in case you need any further guidance.

Satish Akut- 9822602908

From India, Pune
Dear Satish,

The process you have given of PMS is good process. However, we still need to be little more cautious.

PMS is not just about measuring the individual's performance. PMS is not just about designing measures based of the organisation's goals. PMS is more about comprehensiveness of the measures. We need to question on whether are we measuring what needs to be measured? Are our measures superficial?

Let me give you example from my yesterday's training on Purchase Management. One of the participants told that they had procured the spares for one capital equipment in 2008. These were never used and remained idle. The repeat purchase of spares was made in 2009, 2010 and 2011. In the four years the inventory of spares parts had accumulated to Rs 4.5 Cr. After four years they discovered that they are accumulating the inventory of spares. From 2012 onwards, they stopped buying spares however, now capital equipment has become old and it is likely to be phased out.

Now the question is why the spares were purchased even though stores had sufficient spares? Whose failure is this? Stores, Purchase or CFO? Since there was no KRA on this count, nobody is responsible however, organisation suffered.

Second example I can quote of my client. During my consulting assignment, when I designed the measures of Civil Projects department, HOD of that department openly told that he has seen hundreds of projects however, first time ever he came across with few new measures to evaluate the civil project. The gentleman is about to retire. He has 37 years of experience.

Therefore, process apart, what you measure in PMS is quite important.


Dinesh V Divekar


From India, Bangalore
Thanks Everyone for sharing your thoughts.
@B.K.Bhatia - I will definitely go through the website mentioned by you.
@Satish - Thanks for giving a detailed input in the process. Considering that I have understood the final goal of my organisation and the KPI's are also framed. What should be the next step, do I need to design a questionnaire to be shared with the Team Managers for further discussion. If yes, what pointers should be included in the framework. Or we should have a direct discussion with the Team Managers about their team members.

From India, Mumbai
Dear All,
below steps can be help us in PMS. please correct me If i am wrong.
1) Set up of Vision of the organization
2) Set up of Goal of the organization for the respective Year.
3) Accordingly setup of KRA of managements employees by Board of Directors with mutual understanding & consent of both sides.
4) Accordingly, management shall setup the KRA for Managerial level
5) Same flow shall be follow for rest of the other staffs too.
6) Set up of tools of access of Performance appraisal.
7) Analysis of performance appraisal
8) Get the clear picture / result of individual performance & indirectly company performance
9) Make the training need analysis based on the result.
10) Provide the training
11) Evolution of effectiveness of Training
12) Again, same cycle of Performance appraisal shall follow.

From India, Mumbai
Dear Madhur,

Its good that you have identified KPIs for individual managers. Make sure that the identified KPIs if achieved can meet the final goal of the organization. If it's so then you can go ahed

1..Now explain all the persons with in the organization the performance management system & how it is linked to their rewards in monetory terms.

2.Ask each member to make his action plan indicating various mile stones for his KPI & target date for each. This will also help his superior to monitor the progress periodically.

3. The above action plan should also mention what resources those are required to be provided by his superior for each of the activity in the action plan.

4.The management- his superior- must support with all help & keep him motivating during each review.

5. Likewise it is done for all the members.

6.At the end of the year the final assessment should be done in the presence of the respective employee & his internal customer head of Department. For example a KPI for a buyer in purchase department is to deliver material in time. The criteria for assessment is- no loss of time in production department for the want of material. So during final assessment also call HOD of manufacturing department along with the concerned buyer of purchase department to agree on the achievement of KPI.

7.Such assessment must be based on facts, documentory evidence, outcome ( benifits expected from achievement of the KPI ) of KPI.

Let all three parties sign the final assessment document- the superior, the internal customer HOD & the concerned employee so that completes the process.

With best regards,

Satish Akut- 9822602908

From India, Pune

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