Hi Everybody...! Please read my new blog posting.
A Small Story to Relate to 'PERFORMANCE MANAGEMENT'
Mr. Hotelwalla is a small businessman owning a mini restaurant in a crowded city in India. The restaurant has average business until one day they come across a new hire named 'Makhan'.
Makhan is a school dropout and understands English with his limited education. He is about 20 years old when he migrates to the city for better prospects after working in a rural area 'dhaba' (a roadside, usually illegal small-time eating joint).
Cutting the story short, Makhan turns out to be their most talented cook with an exclusive hand, who cooks many lip-smacking dishes, one of his specialties being the 'chicken-makhanwalla,' which happens to be the top-ordered item in the restaurant such that no other cook is allowed to prepare that dish. The business grows gradually, raking in substantial revenue for the owner. The owner is impressed, and after a year's completion of Makhan's tenure with the restaurant, he gives him a decent raise. Makhan is glad to get an increment in salary, but being an 'eager-to-learn-more' cook, he also asks the owner if he could sponsor him for a short craftsmanship course in learning other dishes and specialties served in the city, this in return for being loyal to the restaurant and innovating more dishes. The owner, though willing to agree to such a request, postpones the decision and asks Makhan to focus on this newfound success, which has increased current revenues for the business, and promises him that he would look into the request after 6 months. The business continues running well, and 6 months hence, the request is forgotten by the owner, and so is Makhan, over-burdened with being their most engaged cook, that he too forgets to remind the owner. Another year and a half go by with business being consistent, and the owner gives Makhan his annual salary increments, keeping him monetarily satisfied.
All this, until one day a competitor (Mr. Gyan Chatur), knowing the internal operations of the restaurant, decides to poach Makhan and offer him a similar job with a fractional salary hike, but with an additional joining bonus. Mr. Chatur will also sponsor Makhan to complete a 3-week craftsmanship course in cookery before he starts with the new job. Makhan is 'overjoyed' only due to the additional perk and accepts the offer.
What happened to Mr. Chatur's business thereafter is something we would all like to rightly presume, and so we will end our story here.
Reflection Time
I would like you all to focus on... What SHOULD HAVE happened in the 3 years that Makhan had spent with Mr. Hotelwalla...!
This might be a simple anecdote, but there are still many of us who can relate similar situations of this story to our corporate careers.
My primary reason for writing this article was to focus on one of the sub-functions under the Human Resource (HR) Function popularly known as 'PERFORMANCE MANAGEMENT' or 'PERFORMANCE MANAGEMENT SYSTEM (PMS)'.
Now Ask Yourself These Questions...
1. Has your organization (current employer) ever considered PERFORMANCE MANAGEMENT?
2. If PERFORMANCE MANAGEMENT has been considered and implemented, has it been taken seriously by the management/employees/Human Resource Division (HRD) specifically?
3. What has been a chink in the armor (vulnerable area) for firms trying to effectively implement PERFORMANCE MANAGEMENT SYSTEMS (PMS)?
4. What is the relation of 'PERFORMANCE APPRAISALS' to the entire PERFORMANCE MANAGEMENT SYSTEM (PMS)?
5. Why do employees from a NON-HR function think of PMS as just another fad of the Human Resource Division (HRD)?
In my next write-up, we will look at some of the BOTTLENECKS in implementing PERFORMANCE MANAGEMENT SYSTEM (PMS)...
As published on 'Prodigy Speak'
- A QUICK and INTERESTING read for all corporate employees.
- A MUST read for ALL HR professionals.
Feedback Welcome.
Regards, Lionel
From India, Mumbai
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1A Small Story to Relate to 'PERFORMANCE MANAGEMENT'
Mr. Hotelwalla is a small businessman owning a mini restaurant in a crowded city in India. The restaurant has average business until one day they come across a new hire named 'Makhan'.
Makhan is a school dropout and understands English with his limited education. He is about 20 years old when he migrates to the city for better prospects after working in a rural area 'dhaba' (a roadside, usually illegal small-time eating joint).
Cutting the story short, Makhan turns out to be their most talented cook with an exclusive hand, who cooks many lip-smacking dishes, one of his specialties being the 'chicken-makhanwalla,' which happens to be the top-ordered item in the restaurant such that no other cook is allowed to prepare that dish. The business grows gradually, raking in substantial revenue for the owner. The owner is impressed, and after a year's completion of Makhan's tenure with the restaurant, he gives him a decent raise. Makhan is glad to get an increment in salary, but being an 'eager-to-learn-more' cook, he also asks the owner if he could sponsor him for a short craftsmanship course in learning other dishes and specialties served in the city, this in return for being loyal to the restaurant and innovating more dishes. The owner, though willing to agree to such a request, postpones the decision and asks Makhan to focus on this newfound success, which has increased current revenues for the business, and promises him that he would look into the request after 6 months. The business continues running well, and 6 months hence, the request is forgotten by the owner, and so is Makhan, over-burdened with being their most engaged cook, that he too forgets to remind the owner. Another year and a half go by with business being consistent, and the owner gives Makhan his annual salary increments, keeping him monetarily satisfied.
All this, until one day a competitor (Mr. Gyan Chatur), knowing the internal operations of the restaurant, decides to poach Makhan and offer him a similar job with a fractional salary hike, but with an additional joining bonus. Mr. Chatur will also sponsor Makhan to complete a 3-week craftsmanship course in cookery before he starts with the new job. Makhan is 'overjoyed' only due to the additional perk and accepts the offer.
What happened to Mr. Chatur's business thereafter is something we would all like to rightly presume, and so we will end our story here.
Reflection Time
I would like you all to focus on... What SHOULD HAVE happened in the 3 years that Makhan had spent with Mr. Hotelwalla...!
This might be a simple anecdote, but there are still many of us who can relate similar situations of this story to our corporate careers.
My primary reason for writing this article was to focus on one of the sub-functions under the Human Resource (HR) Function popularly known as 'PERFORMANCE MANAGEMENT' or 'PERFORMANCE MANAGEMENT SYSTEM (PMS)'.
Now Ask Yourself These Questions...
1. Has your organization (current employer) ever considered PERFORMANCE MANAGEMENT?
2. If PERFORMANCE MANAGEMENT has been considered and implemented, has it been taken seriously by the management/employees/Human Resource Division (HRD) specifically?
3. What has been a chink in the armor (vulnerable area) for firms trying to effectively implement PERFORMANCE MANAGEMENT SYSTEMS (PMS)?
4. What is the relation of 'PERFORMANCE APPRAISALS' to the entire PERFORMANCE MANAGEMENT SYSTEM (PMS)?
5. Why do employees from a NON-HR function think of PMS as just another fad of the Human Resource Division (HRD)?
In my next write-up, we will look at some of the BOTTLENECKS in implementing PERFORMANCE MANAGEMENT SYSTEM (PMS)...
As published on 'Prodigy Speak'
- A QUICK and INTERESTING read for all corporate employees.
- A MUST read for ALL HR professionals.
Feedback Welcome.
Regards, Lionel
From India, Mumbai
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Thank you, everyone. That's my first self-composed story cum case study. I'm humbled by the few replies I have received; it's definitely an encouragement. I will continue posting healthy articles.
Warm regards,
Lionel
From India, Mumbai
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Warm regards,
Lionel
From India, Mumbai
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Dear Lionel, the story you have written is great. I am a lecturer, and I teach HR. I just wanted to know in organizations, who is the person who appraises – is it only the immediate supervisor, the manager of the department, or any other person?
Thank you.
From India, Bangalore
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Thank you.
From India, Bangalore
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Methods of appraising an employee can vary from company to company. Commonly, as you have asked, most employees get appraised by their immediate manager. But I believe transparency is achieved when there is a third person involved in the entire process, who is also known as the 'Reviewer'.
For example:
Sales Manager >> (Reports to) >> Regional Sales Manager >> (Reports to) >> National Sales Manager
Let's say:
Appraisee is: Sales Manager
Appraiser is: Regional Sales Manager
He (Sales Manager) is being appraised either for an increment or a promotion.
1. Sales Manager appraises himself (also known as 'Self-Appraisal') and gives himself ratings/grades on his performance on various KRAs (Key Result Areas).
2. Regional Sales Manager appraises the 'Sales Manager' and gives ratings/grades on various KRAs.
3. The appraisal form is shared with the Reviewer, "National Sales Manager." If the appraisee doesn't agree with the appraiser's comments, then he should have a chance to explain to the reviewer why he thinks so.
Hope I have answered your query.
360-Degree Appraisal
360-degree appraisal is also another common method. Good but time-consuming. (Appraised by 5 different entities)
1. Your immediate manager
2. Your peer/team-member (someone at the same designation)
3. Your junior (if someone reports to you)
4. External Customer (someone other than the firm's employee who you'll deal with)
5. Internal Customer (Yourself)
Regards,
Lionel
From India, Mumbai
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For example:
Sales Manager >> (Reports to) >> Regional Sales Manager >> (Reports to) >> National Sales Manager
Let's say:
Appraisee is: Sales Manager
Appraiser is: Regional Sales Manager
He (Sales Manager) is being appraised either for an increment or a promotion.
1. Sales Manager appraises himself (also known as 'Self-Appraisal') and gives himself ratings/grades on his performance on various KRAs (Key Result Areas).
2. Regional Sales Manager appraises the 'Sales Manager' and gives ratings/grades on various KRAs.
3. The appraisal form is shared with the Reviewer, "National Sales Manager." If the appraisee doesn't agree with the appraiser's comments, then he should have a chance to explain to the reviewer why he thinks so.
Hope I have answered your query.
360-Degree Appraisal
360-degree appraisal is also another common method. Good but time-consuming. (Appraised by 5 different entities)
1. Your immediate manager
2. Your peer/team-member (someone at the same designation)
3. Your junior (if someone reports to you)
4. External Customer (someone other than the firm's employee who you'll deal with)
5. Internal Customer (Yourself)
Regards,
Lionel
From India, Mumbai
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Hi Sharmaneesu, Personally, if I had to describe the process in simple language, it would be as follows:
- Performance Counseling
- Performance Planning
- Performance Appraisal
- Performance Monitoring
Other Aspects Necessary for a Successful PMS Process
- The implementation aspect of the entire process
- Linking results of the PMS system to rewards (job rotation, job enrichment, promotion, salary hike)
- Knowing the bottlenecks involved in implementing a PMS system
- Ethics in Performance Management
If you are keen on learning in this area, suggested reading would be "Performance Management" by Authors (A.S. Kohli and T. Deb).
Hope the above info helps.
Warm Regards,
Lionel
From India, Mumbai
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- Performance Counseling
- Performance Planning
- Performance Appraisal
- Performance Monitoring
Other Aspects Necessary for a Successful PMS Process
- The implementation aspect of the entire process
- Linking results of the PMS system to rewards (job rotation, job enrichment, promotion, salary hike)
- Knowing the bottlenecks involved in implementing a PMS system
- Ethics in Performance Management
If you are keen on learning in this area, suggested reading would be "Performance Management" by Authors (A.S. Kohli and T. Deb).
Hope the above info helps.
Warm Regards,
Lionel
From India, Mumbai
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