Performance Management System- Its True Purpose - DOC Download

Hi All!

I am attaching my article on Performance Management System which will reflect its true purpose and objective. This is my first attempt as an MBA student specializing in HRM. Hope you all read it and give me remarks. They will be appreciated!

Cheers to all!

Gunjan

Hi Gunjan,
It's a brilliant & concise write up on PMS...
Do you really believe Me Birla's statement that STAYERS are equally important?...as the trend goes it's stayers have to perform well in comparison with Stars less their jobs would be at stake. I forsee this trend in coming era..
Secondly would you apprise us on following issue-
* Should pay/salary rise be linked to PMS
* Grievance handling process esp for those who feel rated lower than their expected..
* In the above PMS - what is the role of HR in the organizations where you have conducted survey..do they actively participate in the process?..
* What you forsee in PMS twenty years hence from now?.
Reading this article..a thought flashed in my mind as what was the system of PMS say 100 or 1000 years ago ? hmm...maybe Kautilaya had something interesting on this?
Anyway a good job done!!
Cheerio
Rajat

Hi Alok!

Thank you very much for that remark. I really appreciate it. Could you tell me about your company and your role? I am an MBA student, and my placement season will start around the end of this year. I am interested in a consultancy company like PWC. What do you think is the right kind of company to start with as a fresher so that learning can be maximized? Please advise.

Cheers,
Take care,
Gunjan

Hi Rajat!

Thank you a lot for your remarks. As a fresher, I really wanted that.

Anyways, I feel that one major part of the salary is fixed at his grade. The variable component should be linked to performance and potential as the employee will be motivated to increase his/her efforts. A company should always strive to cut the tail so that the employee doesn't fall back on his last performance.

Yes, but the rate of increments can be different for different grades, i.e., as they go up the value chain, the variable component % can increase gradually as higher-level employees are more into strategic and planning processes.

Grievance handling could be an option in case the employee is absolutely demotivated. More than that good guidance, ongoing counseling, clear explanations of expectations of the superior from subordinate and subordinate's KRAs should be in place so that the employee is motivated enough to not give a low performance. Though in PWC, there is a grievance handling process where the employee can claim his dissatisfaction with his ratings.

The role of HR is very important. Forms are to be designed by them or by outsourcing it. I feel they should also be present during counseling by higher authorities. They may be the ones who train officers of various functionalities on how to guide, rate, and counsel employees.

I am not experienced enough, in fact, not at all to answer your last question. But I feel that PMS should not be considered just a form-filling ritual. Its overall purpose is to motivate all employees to achieve the business plan and not as a means to get increments/Variable Pay.

I hope you will agree with my viewpoints. Can you advise me on what all an HR person needs to know and acquire? What kind of a company should I join as a fresher? I am eyeing PWC.

Thank you a lot again.

Cheers,

Gunjan

Hi all,

I am about to finish my MBA in HR. We've had intense discussions and ample articles and cases on this topic. Here are the answers as I see it. I hope it will prove useful to you.

"Do you really believe Mr. Birla's statement that STAYERS are equally important? As the trend goes, it's stayers who have to perform well in comparison with stars, else their jobs would be at stake. I foresee this trend in the coming era."

I agree with Mr. Birla's statement, but I am a bit inclined towards this viewpoint. The truth is that the average or "stayers," as they are called, are the sustenance. However, if fresh and better talent comes in, then their jobs are at stake. Hence, I agree that some changes will come about, but there is a limit to it. How many times can the world record in the Olympics be broken, especially by how much margin?

"Should pay/salary rise be linked to PMS?"

I would suggest that pay not be linked in the first few years of its implementation. Only when the employees are sure that the process is transparent and also for their development can they trust it. Then, depending on the culture, further steps can be taken.

"Grievance handling process, especially for those who feel rated lower than expected."

Grievance handling does not require a special cell or unit. If the process is transparent, then it is sufficient for the raters to directly talk to the grievancee.

Thank you.