How Can HR Effectively Manage Performance Systems in IT Without a Technical Background?

HR Involvement in Performance Management Systems (PMS)

I have a few queries about the level of involvement of HR in PMS. I am elaborating on my query with an example of a mid-sized IT company. How would HR design and implement the PMS for an IT company? How would KRAs or JDs (for compensation Job Analysis) be created, and performance measured by HR without a non-technical background? Theoretically, all these tasks are to be done by HR.

Should HR be from the same industry and background to have a deep understanding? How would HR ensure fair PMS practices in any industry? Is the role of HR to just facilitate and streamline the process by doing follow-ups? Or does HR have to depend on line managers only?

Please answer my queries.

Thanks,
Rashee

Paragraph-wise replies to your queries are as below:

How would HR design and implement the PMS for an IT company?

For this, you need to take training on PMS. Not only should you take training, but you should also train your operations managers on PMS.

How would KRAs or JDs (for compensation Job Analysis) be created, and performance can be measured by HR without being from a non-technical background?

Theoretically, all these tasks are to be done by HR. Creation of Job Descriptions is perfectly the job of HR. However, the creation of KRAs could be the job of HODs. HR can facilitate this process.

Should HR be from the same industry and background to have a deep understanding?

HR need not be from the same industry; however, a deep understanding of the industry would obviously help.

How would HR ensure fair PMS practices in any industry?

You need to create a "Policy on Performance Management System." Involve your HODs and other operations managers in formulating this policy. Fairness would depend on their understanding of this policy.

Is the role of HR just to facilitate and smooth the process by doing follow-up? Or does HR have to depend on the line manager only?

Ensuring the total execution of policy is the job of HR, and this policy is no exception. Any activity related to PMS is related to the organization, and line managers do not work for the HR Department. If you are required to do follow-up, it could be interpreted that they did not understand the value the organization derives from the PMS. Any delay in execution should be treated as indiscipline, regardless of the rank of that Manager.

Hope the above replies clarify your doubts. If you wish to conduct training on PMS, then we can work together. As a program takeaway, I will do the following for you:

- Design a draft policy on PMS
- Extensive exercise on how to design KRAs
- Extensive exercise on what Performance Appraisal is and how to conduct it

There are scores of other things that I will do in this 2-day module. For further queries, feel free to contact me.

Thanks,

Dinesh Divekar

"Beware of false knowledge; it is more dangerous than ignorance."

Are you designing this for your firm? There are different ways to look at it if you are studying this theoretically. However, you will need greater focus on specific areas if it's a live implementation. Your firm may not allow transparent ranking or may completely support in-depth communication. Please share more about your requirements.

Looking forward to hearing from you.

Regards

Dear Cite Contribution, Thank you for your response. I need to clarify my doubts regarding my ongoing learning. I view it as if I am going to implement a PMS in my organization, how would I do this? We are a small organization with around 70+ employees. We do not have formal performance appraisals; instead, we follow a yearly salary increment procedure and conduct mid-term reviews as and when required.

Initiating a Formal PMS

If I take an initiative to make it a formal and structured approach, how should I start? I am aware that our management would not prefer to engage outside consultants due to budget constraints.

Conceptual Understanding in IT

My questions are somewhat conceptual, and I aim to enhance my understanding of my role and involvement in PMS within an IT company.

Thank you,
Rashee

Standard Position Descriptions

First is Standard Position Descriptions (JD is not the right word) - one of the finest methods globally is the US Govt - O*NET.

Job Evaluation

Second comes Job Evaluation (Hay Point Factor Evaluation System is a good method). Hay also provides training.

Performance Management System (PMS) Foundation

Third, the foundation of PMS - on a lower level, it's KRA/KPI based. The second phase is Competence-based.

Compensation Survey Data

Fourth - Compensation survey data from any of the reputed players e.g., Hay.

Thank you.

I'm also responsible for managing the Performance Management System (PMS) in a manufacturing company where we have 300 staff, 400 company payroll workers, and approximately 1800 contractual manpower. I would like to understand what would be an ideal Performance Management system for our company's payroll employees, especially at the staff level. Currently, we are using Key Result Areas (KRAs) for quarterly performance reviews for the staff, but it seems to be ineffective and not widely accepted, possibly due to the KRA settings. I am interested in attending a training session or seminar to learn about the best practices in performance management for the manufacturing industry.

Could anyone please provide some recommendations or insights?

Thank you.