How Can I Develop a Performance Management System for a Tech Company Project?

Hi all,

I'm doing MBA, and for a summer project, I need to develop a "Performance Management System" for a company producing inverters, batteries, and UPS. Please help me out with how to proceed.

Hi,

For a performance management system, first of all, you need to know the system of that company. How are the jobs being done by people there? What is the criteria for target setting? Find out some good sites for appraisal formats. Check the number of people in blue-collar and white-collar positions. Is there any prevailing system? If yes, then what is it and how is it being followed? What is the frequency at which this is done? If you need to develop a system, consider using the checklist method especially for blue-collar workers. You can find information on businessballs.com.

Thank you.

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term “performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. A performance management system includes the following actions.

Develop clear job descriptions.

Select appropriate people with an appropriate selection process.

Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

Provide effective orientation, education, and training.

Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

Design effective compensation and recognition systems that reward people for their contributions.

Provide promotional/career development opportunities for staff.

Assist with exit interviews to understand WHY valued employees leave the organization.

Hi Ankita,

Thanks for your reply. It helped. Can you brief a little more about the checklist method?

Regards,
Amrita :)

Hi Sabita,

I am enclosing a PowerPoint presentation that might help you.

Thank you.

Hi Sabita,

Thanks for the ppt. What I actually need is help on how to go about on my project. What methodology to follow. Please help if anyone knows about that.

Waiting.

Regards,
Amrita

Hi Ankita,

I am doing the same thing during my SIP. My management has given me some ideas on how I can do this. For example, if you want to measure the performance of a person in HR who is responsible for selection and recruitment, you can set parameters for the job, use a rating method, compare it with the standard parameters, and then determine where the person stands and how they perform.

Sabita

Hi, I am new to this, but here is my input. There are a number of key steps that one needs to follow in developing a system:

The first one typically is to conduct an institutional audit that will determine:

1 - The current status of performance management at the relevant organization, i.e., how performance is being managed, what tools are used, whether the organization has a policy, etc. It is also important to identify challenges and other issues related to the current processes.

2 - Determine the level of readiness of the institution to implement any kind of performance management system, e.g., culture, level of maturity of the organization in terms of other systems like strategic planning and HR information systems, etc.

3 - Determine best practice models based on industry-specific research and other variables that you may determine.

The next step is to then make recommendations regarding how you will approach the process of developing the new system. This may be based on a combination of your understanding of the context of the organization as well as best practice considerations. The focus should be on improving the current status.

The third step would be to actually go out and design the new system. This will typically involve the review/development of a new policy, business process reengineering, the development of tools and templates to be used, the development of a system for collecting and managing performance-related data, the development of a framework for the automation of the system (if required), and other necessary activities. In most cases, change management is a critical element of the design phase, especially to address cultural issues.

The final step is the implementation of the system. It may be advisable to pilot the system before rolling it out to the rest of the institution to ensure buy-in, especially if the organization has never had any system.

Beyond the implementation, you can make recommendations on monitoring and evaluating the system's implementation.

The most common methodology used to develop and implement performance management systems is the Balanced Scorecard. There is a lot of material on the Balanced Scorecard.

I hope this helps!

Regards,

Bernard Ngosi
Director
The Value Creation Team
South Africa

Hi Mr. Bernard Ngosi,

This information is going to help me a lot. Thanks for such valuable information. I'm already in the process of reviewing the old system. Again, thanks a lot.

Regards,
Amrita