Dear All, I work for a start-up firm with an employee strength of 50. I have been assigned the task of preparing a running model of PMS which can be implemented in our organization ASAP. Please guide me in my endeavor.
Thanks and looking ahead for guidance.

From India, Kolkata
Dinesh Divekar
Business Mentor, Consultant And Trainer
Ed Llarena, Jr.
Owner/ Managing Partner
Rajesh Vaidya- Earth & Stars
Director- Earth & Stars
Rukmi D
Executive Hr
+4 Others

Dear Rukmi D,

I am Bangalore-based management consultant. Training in the field of (a) soft skills (b) purchase and inventory management (c) sales has given me vast exposure to various facets of business. On the strength of this exposure, I have entered into the field of PMS consulting. You may not get a person with so much of versatility.

To institute PMS it requires great exposure across the spectrum of industries. If mishandled it may do more harm than good. To know more about instituting PMS in the company, you may click here to refer my past post.

Principles of PMS do not change with respect to industry. These remain same. What matters is whether you have very comprehensive and stable PMS in your company. Focus of PMS should be to measure the business performance and then individual performance.

In well-designed PMS organisations, individual are trained well so that they can design their own KRAs. Manager only validates it. Junior is expected to maintain MIS or other evidence to prove the quantum of performance in PA meeting. Manager verifies the score. In this process, nobody gives or takes anything. Junior [i]earns] the marks and there is evidence for this. In the same PA meeting, junior is also expected to come up with his KRA for next quarter or half-year. Manager verifies it, reassigns the weights if required, changes the KRAs itself if required. Further feedback can follow in subsequent meeting. Since junior himself or herself calculates the score, there is no room for disgruntlement

There is lot of misconception on the concept of KPI and KRA. To remove this misconception, I have uploaded my presentation on Youtube. To refer that video, you may click here.

I have been giving my replies on the subject time and again. If you wish to refer my past replies, then you may click the following links to refer those:

Subjectivity in Performance Appraisal

I handle consulting on PMS. To know more about my services, you may click here. If you hire my services, I will do deep study of each department and design new measures which hitherto you had never thought of. PMS will be helpful to you in your recruitment, employee training, manpower planning and do on.


Dinesh V Divekar

Bangalore - 560092


From India, Bangalore
dear mr /miss/mrs rukmi

god bless you

welcome to the forum.

i see you have joined a start up firm with a strength of 50 odd staff.

do not get into flap and be coooool

the company will not spend a penny on any hi fi systems at the start up time .


let us get one thing right whether you are a HR qualified professional . it does not matter if you are not .

1. do not confuse PERFORMANCE MANAGEMENT SYSTEM with other HR Duties.

2. let us get our focus on to performance management only.

3. what is our aim of PMS.

4. we should be evaluate the performance of a employee periodically and decide on retention/ promotion/incentive/training and other activities.

5. so what should rukmi do

a. make a list of all the staff

b. make a hierarchy tree as to who is going to assess and who will be assesed.

c. who will assess technically and who will assess other aspects like loyalty/integrity/behaviour/dedication/absence /

d is the assessor qualified to be one

e. make an org tree with one technical assessor , one general assessor , and one reviewing technical assessor ,one reviewing general assessor and lastly the ED.


g. make a list of items to be measured and ask the employee to fill it themselves.and also write their achievements and contribution to the organisation

h. without showing to the assessor both technical and general get the assessment done by the assessors.

j you cn choose numerical scale or written assessment pattern.

j compile and put up to reviewing assessors and management / ED

k take a policy decision on whether you want six monthly or annual review.

l take a policy decision on imparting of training in relation to performance.

m take a policy decision on rewards / incentives / punishments in relation to performance.

There are more details which can be discussed only when we know more about you and the organisation and type of work / output.and the management policies/ job analysis and and job description

i can give you free service and you can contact me at


let the PMS be yours and your thoughts and your design and your output . YOU CAN BOAST ABOUT IT IN LIFE TO YOUR WIFE / HUSBAND / CHILDREN

dr ram

From India, Indore
Dear Rukmi,

The core of a good Performance Management program starts from clarity in Senior Management's plans & expectations from it's employees.

They should realize that it is their primary duty to set clear goals, related performance indicators & define methods to measure, monitor & communicate. It is quite imperative that the following are done with diligence & right intent

1) Performance goals are linked to business plans in such a way that these can be broken down to the lowest level of the organization hierarchy.

2) Clear performance indicators are identified & methods to measure these specified & known to all employees.

3) Transparent process of measuring performance is instituted that has enough scope for feedback & identifying development needs for continuous improvement.

4) Regular & honest communication on business outcomes & any change in plans/strategy.

Here's a blog post on why Top Performers leave organizations - GroSum - Blogs

Let me know if you have any queries. I will be happy to answer them.

Souvik Majumdar



souvik (at) grosum (dot) com

From India, Bangalore
Dear Souvik,

Since I provide consulting services to establish PMS, I have following to say:

a) The very first sentence of your post says "The core of a good Performance Management program starts from clarity in Senior Management's plans & expectations from it's employees.". This need not be core. The core is whether everything is measured what deserves to be measured. I find that measures are not designed to measure the direct and indirect costs of each department.

b) Core of PMS is to foster the culture of measurement. For this the importance of measures or importance of various costs should be understood by the down most employees.

c) Top management is obsessed only with turnover, stock value and profitability. Not necessarily they conduct research on their working practices or study of their operations

d) Policy on recruitment, policy on training, policy on compensation should be derived from Policy on PMS. Many times I find complete disconnect between PMS and all other factors.


Dinesh Divekar

From India, Bangalore
dear Rukmi
thanks for acknowledging my earlier comment.
i would like to comment that Mr Soumik has adviced you to pass the buck to the management.
the top echelons may have knowledge on many issues but can not be expected to give clear cut directions at all times on all matters.
they have hired and tasked you to make a system since you are a subject expert.
please make a recommended system as suggested by me earlier and give more than one option , brainstorm it in your various forums , refine it and present it to management for approval. the management wants to implement a PMS and you are the tool. do a good job of it and they will award you for your performance. LET THE BUCK STOP WITH YOU AND NOT BE PASSED OFF TO ANY ONE. have a great chance to prove your worth
dr ram

From India, Indore
Dear Dr Ram & Mr Divekar,

It is interesting to note your comments to my post.

It's important to clarify that I did not mean that one should pass the buck to Senior Management. Rather, Management should be actively involved in definition of performance goals & KRAs at an organization & departmental levels, from which individual objectives should be derived.

As Mr Divekar pointed out, Top Management's typical priority is company profitability. So, how can such an objective be broken down such that each employee can contribute towards attainment of that goal? Let's see with an example.

Profitability enhancement is achieved by increasing revenue & optimising costs. Can we tie individual goals that can contribute towards these? Yes, definitely we can. Thus, an employee with the IT department can have objectives of cost reduction by negotiating rate contracts with vendors to lower year over year maintenance costs. Similarly, a Recruiter with HR department can have objectives related to reducing cycle time to hire.

After all the employee is not separate from the company & his/her performance always impacts the company's. It is in tying individual objectives to company goals that one can design a very effective PMS that also helps in improving employee engagement & ownership.

Hope this helps,


From India, Bangalore

The discussion above only shows that PMS (Performance Management System) is a very interesting and intriguing subject matter. I also shows that it can be viewed and understood from different perspectives. Hence, it may be difficult for some people to have a consensus on the matter, esp when they are coming from various or different points of view.

As one of those who developed the early PMS concept, what I could say is that there are only THREE (3) major factors that one should bear in mind when attempting to create and/ or implement a PMS.These factors are: CONCEPT, FORM, and POLICY.

1. The CONCEPT should be able to define and explain very clearly the kind, type, and frequency of the appraisal that you wish to implement. It should identify the raters, the rating system, & the implication of the ratings vis-a-vis compensation, promotions, & rewards.

2. The FORM should be user friendly and easy to administer, esp if your organization is big and the number of your employees run to thousands. The form must be designed as simple as possible, preferably a "ONE PAGER MATRIX" form that incorporates performance targets/ goals, ratings scores, and improvement plans.

3. The POLICY should be able to spell out the roles & responsibilities of the appraiser, the employee, HR, Management, and the Company. It should be able to define clearly how disputes on ratings can be settled.

Best regards to all!

Ed Llarena, Jr.

Managing Partner

Emilla International Consulting Services

Tel: 006352-742-0315/

From Philippines, Parañaque
Most important thing is for you to identify that the key behaviors that you want to drive in your organization. Basically PMS is a means to achieve an End..which in this case is the profitability of the organization Then you can go for the appropriate model.
From India, Bangalore
I am a HR professional (XISS 87-89 batch ) . currently in Delhi , working as a freelancer . If your requirement is still there , I can help you out , with a complete performance management system .
warm regds
sudipto Chakravorty

From India, Delhi

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