Dear Satish,
The process you have given of PMS is good process. However, we still need to be little more cautious.
PMS is not just about measuring the individual's performance. PMS is not just about designing measures based of the organisation's goals. PMS is more about comprehensiveness of the measures. We need to question on whether are we measuring what needs to be measured? Are our measures superficial?
Let me give you example from my yesterday's training on Purchase Management. One of the participants told that they had procured the spares for one capital equipment in 2008. These were never used and remained idle. The repeat purchase of spares was made in 2009, 2010 and 2011. In the four years the inventory of spares parts had accumulated to Rs 4.5 Cr. After four years they discovered that they are accumulating the inventory of spares. From 2012 onwards, they stopped buying spares however, now capital equipment has become old and it is likely to be phased out.
Now the question is why the spares were purchased even though stores had sufficient spares? Whose failure is this? Stores, Purchase or CFO? Since there was no KRA on this count, nobody is responsible however, organisation suffered.
Second example I can quote of my client. During my consulting assignment, when I designed the measures of Civil Projects department, HOD of that department openly told that he has seen hundreds of projects however, first time ever he came across with few new measures to evaluate the civil project. The gentleman is about to retire. He has 37 years of experience.
Therefore, process apart, what you measure in PMS is quite important.
Thanks,
Dinesh V Divekar
[B]