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Dear all, I need PMS related information. What is the purpose of PMS in HRM. related formats and how to apply it in any organisation.
From India, Suri
Dinesh Divekar

Dear friend,

Very often we get queries on PMS on this forum. I have given a reply to this post. Click the following link to refer to the reply:

Though the heading of the heading is for IT companies, the reply applies to all types of industries. In the above link, you will find several other links. Go through all the links patiently. It will improve your awareness of the subject.

Sample KPI and KRA Manual: - If you wish to know the structure of format of the KPI and KRA Manual, then you may click the following link. The Excel Workbook has multiple sheets. Each sheet has KRAs for various functions. Though these are not related to your industry, overall these will give you an idea of the format, structure and design of the manual.

Videos on PMS: - To clarify on PMS, I have uploaded the following videos:

For further doubts, feel free to contact me.


Dinesh Divekar

From India, Bangalore
Rajarshi Chakraborti

Performance Management is the function of Human Capital where evaluation of performance takes place to:
1. Drive business results
2. Increase employee engagement
3. Build Trust
4. Empower employee feedabck
You can have a detailed look on which type of Performance Management you would like to see on GroSum blog here :

From India, Howrah
Kritarth Consulting

Dear Information Seeker,

To appraise Performance is to know for sure whether the Individual is

1.) Doing the Job (tasks) actually allotted to him/ her or doing some other Work on paid time;

2.) The Performance is precisely as prescribed / as per given parameters/ SOPs ( following Safety norms set for men and or

machinery etc);

3.) Work Output is within the time-limit and its Quality and Quantity are acceptable ( at times production of Goods and or

Services are disrupted for no reason attributable to him / her);

4.) a Supportive and strong Team Member ;

5.) S/he is an Actively -Engaged Employee or the One already Checked-Out; etc

Pragmatic Performance Management ( regular Appraisal being a part thereof) requires Post-Appraisal Corrective Action -Steps, Rewards and Imparting Newer Skills-Set / Competencies for the concerned Individual's Personal Career Advancement, Enhanced Remuneration, Bigger Responsibility, and Sense of Well-being ( Self-fulfillment)

Performance Management must result in the Individual Doing Right Things Right First Time Every Time. This SHIFT happens when the Organizations has a Cadre of Committed Superiors who can lead Others.

Kritarth Team

2nd Sept 2016

From India, Delhi

Recently myself and my another HR friend implemented Performance Management System in a Building Technology company. It is working very well. We had some challenges on the way but then our efforts ultimately paid off. Those who are very keen to adopt or implement this initiative in any kind of company, they can contact me privately.
Best wishes

From India
Hi, can anyone help me in getting companies Performance bonus polices i.e. there defined parameters, payout process.
From India, Noida
Dinesh Divekar

Dear Imran,
Performance bonus or even measurement of regular performance, depends on the attainment of certain targets. However, scientific measurement of the measures is important. Otherwise it could lead to the frustration amongst the employees. Therefore, be cautious while implementing bonus policies.
Dinesh Divekar

From India, Bangalore

The main objective of performance management is to promote and improve employee effectiveness. It is the continuous process of setting objectives, assessing progress and providing on-going training and feedback to ensure that employees are meeting their objectives and career goals.

These are the main Components which you have to consider before implementing it in your organisation.

1. Performance Planning:
It is the crucial component of any performance management process which forms the basis of performance appraisals. It is done by the appraisee and also the reviewee in the beginning of a performance session. Here they decide the targets and the key performance areas, which is finalized after a mutual agreement between the reporting officer and the employeeWell designed job descriptions.

Things to follow during this process:
# Develop clear and well designed Job Discription.
# Objectives and indicators need to be SMART
Specific: Specify clearly what is to be done, when it is to be done, who is to accomplish it and how much is to be accomplished.
Measurable: Ask questions such as: How much? How many? How will I know when it is accomplished?
Attainable : Assure there is reasonable path to achievement and feasible odds that you will get there
Realistic :The objective needs should match the level of complexity with the employee's experience and capability.
Time-bound: Be clear about the time frame in which performance objectives are to be achieved.

2. Performance appraisal:
The appraisals are normally performed twice in a year in an organization in the form of mid reviews and annual reviews which is held in the end of the financial year. In this process, the appraisee first offers the self filled up ratings in the self appraisal form and also describes his/her achievements over a period of time in quantifiable terms. After the self appraisal, the final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee being appraised. The entire process of review seeks an active participation of both the employee and the appraiser for analyzing the causes of loopholes in the performance and how it can be overcome.

Things to follow during this process:
# Implement performance appraisal where individual performance is formally documented and feedback delivered.
#Be practical and easy to understand and use
#Provide an accurate picture of each employee’s performance
#Include a collaborative process for setting goals and reviewing performance based on two-way communication between the employee and manager
#Include both positive feedback for a job well done and constructive feedback when improvement is needed

3. Feedback :
Feedback and counseling is given a lot of importance in the performance management process. Here the employee acquires the areas of improvements and also information on whether he/she is contributing the expected levels of performance or not. The employee receives an open and a very transparent feedback and along with this the training and development needs of the employee is also identified. The appraiser adopts all the possible steps to ensure that the employee meets the expected outcomes for an organization through effective personal counseling and guidance, mentoring and representing the employee in training programmes which develop the competencies.

Things to follow during this process:
#Provide constructive and continuous feedback on performance
#feedback from Peers and Direct Reports
#360-Degree Feedback

4.Rewarding the Top performers:
It is very sensitive for an employee as this may have a direct influence on the self esteem and achievement orientation and it will determine the work motivation of an employee to be publicly recognized for good performance.

Things to follow during this process:
# Awards like (Employee of the month/year, GEM award, Best employee award)
# Support administrative decision-making about promotions, terminations, compensation and rewards
# Performance Bonus etc...

5. Performance Improvement Plans(Training):
The employee is clearly communicated about the areas in which the employee is expected to improve and a stipulated deadline is also assigned within which the employee must show this improvement. This plan is jointly developed by the appraisee and the appraiser and is mutually approved.

Things to follow during this process:
# Comprehensive employee orientation and training.
# Identify areas of poor performance and establish plans for improving performance
# Support staff in achieving their work and career goals by identifying training needs and development opportunities

6.Potential Appraisal:
By implementing competency mapping and various assessment techniques, potential appraisal is performed. with this we will get the inputs for succession planning and job rotation.

Things to follow during this process:
#There are thchniques like Bell curve and 9 box.
# I would suggest 9box also called 9 box Performance-potential Matrix.

From India, Bengaluru
Hi, Performance Management System helps in the improvement of the performance of employees. It is a continuous process. Make performance appraisal forms and analyse the performance of employees. Those who lacks , give them feedback to improve it.
From India, Jalalpur
I am currently interning with a fmcg company in India. Can anyone please help me in understanding how to create a performance policy?
What all headings would be coming under it? And suggestions to which PMS tools can i use to evaluate the employees?

From India, Vadodara
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