How Do I Create an Effective Performance Management Policy for a Small IT Company? Seeking Advice!

Hi everyone,

I am the HR manager of a small IT company with 25 to 30 employees. I wanted to know what kind of performance management policy I need to implement for my company.

I am seeking guidance on the methods I can use to evaluate employee performance and determine the right performance management process for my company.

Thank you.

To implement PMS, it requires tremendous support from the management. Do you have buy-in from management? If not, then first obtain it.

Understanding Performance Measurement Systems (PMS)

PMS is designed to measure business performance. To measure business performance, we need to measure the performance of each department. To measure the performance of each department, we need to identify the direct and indirect costs of each department. KPIs are to be designed based on costs. Other parameters to consider when designing costs include quality, quantity, customer satisfaction, accuracy, timeliness, etc.

Be it noted that a sound PMS depends on what you measure and not on the software that you use. Companies do measure performance, but they may not measure what deserves to be measured. Recently, I helped one of the members of this forum design the KPIs for an Event Manager. If you wish to have a look at that post, then you may click the following link:

https://www.citehr.com/511712-kpi-kr...ml#post2190644

Additional Resources

I have been giving my replies on this subject time and again. You may refer to the following links to review my past posts:

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https://www.citehr.com/500549-format...ml#post2165577

#post2152684

https://www.citehr.com/498440-how-ca...ml#post2160264

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https://www.citehr.com/490150-job-de...ml#post2140544

I recommend you go through each reply patiently to clarify your understanding of PMS.

Consulting Services

I provide consulting services to establish PMS. If you wish to hire my services on PMS consulting, I will help you bring about significant change. I will study the systems and processes of each department deeply and design unique measures. You may talk to your management about availing my services. If you wish to know more about my consulting services, then you may click here to check the presentation.

Thanks,

Dinesh Divekar

Dear Jyoti, Mr. Dinesh has given an excellent thought process on the PMS. Just to simplify and add on:

1. As referred to in the trailing email, management support plays a vital role. We need to have a clearly defined Vision & Mission / Objectives (Short-term & Long-term Objectives).
2. We need to translate those organizational objectives to departmental objectives.
3. Those departmental objectives are translated into individual KRA. Then KRA will be broken down to KPI (The KRA should be measurable).

Note:
- Without providing the KRA's to individual employees, it would be very difficult to measure the performance of the employees. Hence, making employees aware of their roles & responsibilities plays a vital role.

Regards,
Sunil