A Mentor, Performance Consultant & a Trainer
Vivek is an HR Specialist. He loves working with HR Professionals & Students to help them create an Impact. He is a Mentor, a Performance Consultant & a Trainer You can connect with him on www.linkedin.com/in/vivekanand5 Professionals can connect for Mentoring & Training on HR SMBs can connect for Strategic Consulting Assistance
A performance management system is a mechanism for tracking the performance of employees consistently and measurably. It allows the company to ensure that employees and departments across the organization are working effectively towards achieving the business’s strategic goals. Successful businesses gain an advantage from having employees better aligned with corporate goals.
http://dummyOrganizations are constantly looking to get better at evaluating and measuring employee performance. This brings us to another persistent ask
Why do we measure Performance?
Is it to Reward, recognize or punish the individuals or is it something else?
Performance management is aimed at improving an organization’s bottom line by stimulating employee performance. It also aligns workforce and individual goals with the wider organizational goals and mission.
Yes, the core philosophy behind measuring performance is to influence better performance. When we measure/evaluate, we also get to know the shortfalls, the gaps. Highlighting the gaps and the ways to overcome them to improve is the agenda.
Then why is there so negativity around it?
Negative is our outlook towards it. We see it as a result, as the outcome when it only gives us the inputs for a better future. Let’s seek these inputs to better out tomorrow, negativity will turn into positivity
Why do we need a PMS?
Performance management system speeds up the performance management process and help organizations deliver fair, periodic reviews. Performance management tools can offer the following seven benefits for your organization:
Let us understand the different components of a PMS.
Goal: It sets the direction for your people. Goals, when set properly not only influence the performance, but they also bring in a better commitment. If the Goals have not excited the employees, performance and results will always be an illusion. They do not just set the benchmarks; they encourage people to go for it.
Make sure the individual Goals must be aligned to broader Organization Goals.
Read more on Goal Setting here https://www.mindtools.com/pages/article/newHTE_90.htm
KRAs: These represent the broader areas/activities that will lead to the Goals & Objectives. Important to note that these cannot be set in isolation and needs to be directly linked to the Goals.
The common mistake that most organizations make is failing to set the correlation between the Goals & KRA.
KPIs: KPIs are the measure of performance in Key Results Areas (or Key Performance Areas). They link back to the achievement of department/organization objectives, and the achievement of the organization’s goals.
KPIs are more than numbers you report out weekly – they enable you to understand the performance and health of your business so that you can make critical adjustments in your execution to achieve your strategic goals. Knowing and measuring the right KPIs will help you achieve results faster.
Here are some of the common mistakes that most organizations make while setting up KPIs https://bernardmarr.com/the-10-biggest-mistakes-companies-make-with-kpis/
Performance Appraisal is the evaluation of the performance of employees and understanding the abilities of a person for further growth and development.
What is the Purpose of Appraisal?
Is it to Reward the superior performers? OR
Is it to Punish the poor performers?
None. The main purpose to evaluate performance is to identify the strengths and the weaknesses so that with proper inputs the weaker areas can be improved, and high performance can be achieved.
The Rewards or no Reward is a method to influence and is assumed to bring better results. However, a feeling of achieving higher results remains a feeling or an emotion without a proper feedback mechanism. This is what most Performance Management Systems fail to establish
Here are some of the Advantages of Performance Appraisal
It is said that performance appraisal is an investment for the company which can be justified by the following advantages:
All the above factors ensure effective communication.