Dinesh Divekar
Business Mentor, Consultant And Trainer
Ed Llarena, Jr.
Owner/ Managing Partner
+1 Other

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Hi all, I want to know the process followed for PMS and also let me know which is the best suitable process to be followed and recently/ most commonly used by many organizations.
Dear Saikrishna,

More than process your focus should be on measurement. Any PMS, whether old or new, whether traditional or modern, whether IT assisted or manual, that measures what deserves to be measured is fine. There are cases wherein HR adhered this or that PMS but then the way organisational performance needs to be measured that was not measured. Secondly, PMS should percolate down to the last level. This has not happened in many organisation notwithstanding heavy investment in the IT-assisted PMS.

To institute PMS, you must identify the KPIs associated with each department. Related to this subject, I have given comprehensive reply. You may click the following link to refer it:


The above link will clarify many doubts. The link has further links. These links, in turn, has still further links. You may go through all the links patiently to understand the subject completely.


Dinesh Divekar

Hi All, I still except few more updates on this and we can have the knowledge transfer. Regards, Sai
Setting up a Performance Appraisal (PA) or Performance Management System (PMS) without ratings is not difficult to do. However, we must first understand why such type of appraisal is needed by an organization, and, whether such type is practical and would serve the purpose of the company.
An appraisal without a rating (and a corresponding reward or sanction) is like a disciplinary action without a penalty or punishment. It may not be taken seriously by employees as they won't feel the difference between a good performance and a bad performance. As a matter of fact, those who are doing well may start performing badly once they realize that doing their best is just the same as doing poorly or doing nothing at all. Besides, in most organizations, the rating differences becomes their basis why someone who performed outstandingly should be given promotion and more bonuses than someone who did not, or someone who performed fairly and/ or poorly.
Humans in most work environments anywhere in the world have always expected some kind of recognition or reward if they performed well. This is the way they have been treated in their homes and in school. And, many would complain about the sense of unfairness when someone who did not perform well are given the same amount of bonus or recognition as those that performed very well or outstandingly.
For appraisals to be truly appreciated and considered relevant, what organizations must do is to make sure that employees are only evaluated on work factors and outputs that were planned, discussed, and agreed upon at the beginning of each year. And, the metrics for the rating must be transparent, clear, and understood by everyone. Most of all, each employee must know by heart how they can perform outstandingly and what they can expect once they make it.
Best regards.

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