We are a startup IT company currently with an employee strength of 15 employees. This number will increase by 25 by the end of this fiscal year. We want to set up a performance management system. Can anybody tell me what could be the best system to follow? The key aspect I am looking for is a coaching-oriented system that should be reviewed every 3 months for each employee (like a 60-90 days Plan).
We have included PLI as part of CTC for all the employees based on their salary slab. Therefore, we have considered releasing a portion of the PLI after six months and the remaining portion after completing 1 year with the company. We aim to implement this as part of the performance management system.
Can you all please shed some more light on this approach? Awaiting a reply.
Regards,
Shikha
[Email Removed For Privacy Reasons]
From India, Mumbai
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We have included PLI as part of CTC for all the employees based on their salary slab. Therefore, we have considered releasing a portion of the PLI after six months and the remaining portion after completing 1 year with the company. We aim to implement this as part of the performance management system.
Can you all please shed some more light on this approach? Awaiting a reply.
Regards,
Shikha
[Email Removed For Privacy Reasons]
From India, Mumbai
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It seems you want to have a competency management system directly linked to your performance management system with a review periodicity of three months. You have some concepts in mind that can be explored. I would suggest you sit with an expert who will help you design the HR Management System based on your needs. You can design the HRMS in phases, considering the priority. Considering the present size of the organization, automation may not be required but can be done considering future needs.
Thanks and Regards,
Harsh
PCMM Consultant
From India, Mumbai
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3Thanks and Regards,
Harsh
PCMM Consultant
From India, Mumbai
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Thank you all for your replies. I am seeking expert advice from this forum on the most effective and simplest way to implement a PMS in a startup firm. As Harsh rightly mentioned, I am looking for a competency management system directly linked to the performance management system with a review period of three months.
Could you provide further insights on this? Additionally, does anyone have any documents related to this process?
I am not interested in hiring consultants for PMS implementation. I simply need your suggestions and ideas.
Looking forward to your replies.
Thanks,
Shikha
From India, Mumbai
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Could you provide further insights on this? Additionally, does anyone have any documents related to this process?
I am not interested in hiring consultants for PMS implementation. I simply need your suggestions and ideas.
Looking forward to your replies.
Thanks,
Shikha
From India, Mumbai
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You wanted to link PMS with the Competency Management System. However, it requires immense expertise, and I doubt whether anyone in a startup will have that competency. Let me explain to you. Though you have not mentioned what industry you belong to or what your finished product or service is, let me give you a simple example.
Suppose you are in a factory and the Inventory Turnover Ratio is 5. You want to raise it to 5.5. What competencies are required to raise this ratio? Who will guide you? Even if you get some "document" in hand, do you think it is that simple?
Suppose line stoppage is ____. You want to decrease it by 10%. Who will tell you what competencies are required to reduce them?
PMS and Business Performance
PMS is not just about having individual targets. PMS is about measuring business performance. If linking competencies to business performance were that easy, then possibly management science would not have taken birth at all. You are asking what seasoned managers are unable to do. This very forum is evidence of what I say. There are millions of posts, but then how many posts are there that mention the business performance of the member's company?
You may not like what I have written; however, unfortunately, the bitterness of the truth does not go away even if it is packed in sweet words.
Thanks,
Regards,
Dinesh Divekar
From India, Bangalore
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Suppose you are in a factory and the Inventory Turnover Ratio is 5. You want to raise it to 5.5. What competencies are required to raise this ratio? Who will guide you? Even if you get some "document" in hand, do you think it is that simple?
Suppose line stoppage is ____. You want to decrease it by 10%. Who will tell you what competencies are required to reduce them?
PMS and Business Performance
PMS is not just about having individual targets. PMS is about measuring business performance. If linking competencies to business performance were that easy, then possibly management science would not have taken birth at all. You are asking what seasoned managers are unable to do. This very forum is evidence of what I say. There are millions of posts, but then how many posts are there that mention the business performance of the member's company?
You may not like what I have written; however, unfortunately, the bitterness of the truth does not go away even if it is packed in sweet words.
Thanks,
Regards,
Dinesh Divekar
From India, Bangalore
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Designing a Performance Appraisal System for Start-ups
If you're in a start-up or a relatively small company, getting started on employee performance appraisals generally presents a dilemma. You need to design a simple and well-structured appraisal format that is clear, transparent, and has less ambiguity. Here are some primary tips to carry out the process:
- Keep it simple.
- Review everyone in the company at the same time.
- Let employees evaluate their own performance and the company as well.
- Don't confuse them.
- Design the format based on their actual job role and tasks.
- Don't make it too lengthy and avoid adding unnecessary questions or suggestions.
- Be specific.
Regards
From India, Bhubaneswar
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If you're in a start-up or a relatively small company, getting started on employee performance appraisals generally presents a dilemma. You need to design a simple and well-structured appraisal format that is clear, transparent, and has less ambiguity. Here are some primary tips to carry out the process:
- Keep it simple.
- Review everyone in the company at the same time.
- Let employees evaluate their own performance and the company as well.
- Don't confuse them.
- Design the format based on their actual job role and tasks.
- Don't make it too lengthy and avoid adding unnecessary questions or suggestions.
- Be specific.
Regards
From India, Bhubaneswar
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Performance Management System.doc