Performance Management System
Performance Management System, or PMS in short, is an organizational philosophy. Organizations that wish to improve their review process and differentiate between high performers and underperformers follow the PMS route. Performance appraisal does not cover discipline, attendance, or safety procedures; it primarily focuses on the outcomes of specific work assigned to employees and how it contributes to the bottom line, turnover, or profit. Understanding what can be measured and how is crucial. Each job role should have Key Result Areas measured by Key Performance Indicators (KPIs).
Defining Revenue Goals
Organizational management needs to clearly define revenue goals and communicate them to each department and employee. Supervisors should work with employees to set annual goals based on their job roles. Key Result Areas may include revenue growth, customer growth, sales, cost savings, expansion, customer service, production output per day or per shift, among others.
Focus Areas in Performance
Performance is mainly centered on Profit, Process, and People. Senior-level KRAs may focus on people development, talent identification, and nurturing. Middle-level roles may emphasize process improvement, while lower-level positions might prioritize production, productivity, or profit. As an HR Consultant and Trainer for various HR initiatives, I have audited and enhanced PMS in numerous organizations in India and Gulf countries. These points came to me spontaneously, reflecting my experience and expertise.
Training and Commitment
Proper training is essential for all levels of the organization to grasp and implement this philosophy successfully. Commitment from top to bottom is crucial for the program's success. If interested, feel free to reach out, and I can assist your organization significantly. Best wishes.