Dear All,
I work for a start-up firm with an employee strength of 50. I have been assigned the task of preparing a running model of PMS that can be implemented in our organization ASAP. Please guide me in my endeavor.
Thanks and looking ahead for guidance.
Rukmi
From India, Kolkata
1I work for a start-up firm with an employee strength of 50. I have been assigned the task of preparing a running model of PMS that can be implemented in our organization ASAP. Please guide me in my endeavor.
Thanks and looking ahead for guidance.
Rukmi
From India, Kolkata
Empower employees with self-service leave requests & instant approvals. See It In Action - Book Your Demo
Dear Rukmi D,
I am a Bangalore-based management consultant. Training in the field of soft skills, purchase and inventory management, and sales has given me vast exposure to various facets of business. On the strength of this exposure, I have entered into the field of PMS consulting. You may not find a person with so much versatility.
Instituting PMS requires great exposure across the spectrum of industries. If mishandled, it may do more harm than good. To know more about instituting PMS in the company, you may click here to refer to my past post.
Principles of PMS do not change with respect to industry; they remain the same. What matters is whether you have a very comprehensive and stable PMS in your company. The focus of PMS should be to measure business performance and then individual performance.
In well-designed PMS organizations, individuals are trained well so that they can design their own KRAs. The manager only validates it. Juniors are expected to maintain MIS or other evidence to prove the quantum of performance in the PA meeting. The manager verifies the score. In this process, nobody gives or takes anything. Juniors earn the marks, and there is evidence for this. In the same PA meeting, the junior is also expected to come up with his KRA for the next quarter or half-year. The manager verifies it, reassigns the weights if required, changes the KRAs itself if necessary. Further feedback can follow in subsequent meetings. Since the junior themselves calculate the score, there is no room for disgruntlement.
There is a lot of misconception about the concepts of KPI and KRA. To remove this misconception, I have uploaded my presentation on YouTube. To refer to that video, you may click here.
I have been giving my replies on the subject time and again. If you wish to refer to my past replies, you may click the following links:
- Subjectivity in Performance Appraisal
- Design PMS Program for a Pharmaceutical Company
- KPI in the Valve Industry Start-Up
I handle consulting on PMS. To know more about my services, you may click here. If you hire my services, I will conduct a deep study of each department and design new measures which you had never thought of before. PMS will be helpful to you in your recruitment, employee training, manpower planning, and so on.
Thanks,
Dinesh V Divekar
Bangalore - 560092
From India, Bangalore
I am a Bangalore-based management consultant. Training in the field of soft skills, purchase and inventory management, and sales has given me vast exposure to various facets of business. On the strength of this exposure, I have entered into the field of PMS consulting. You may not find a person with so much versatility.
Instituting PMS requires great exposure across the spectrum of industries. If mishandled, it may do more harm than good. To know more about instituting PMS in the company, you may click here to refer to my past post.
Principles of PMS do not change with respect to industry; they remain the same. What matters is whether you have a very comprehensive and stable PMS in your company. The focus of PMS should be to measure business performance and then individual performance.
In well-designed PMS organizations, individuals are trained well so that they can design their own KRAs. The manager only validates it. Juniors are expected to maintain MIS or other evidence to prove the quantum of performance in the PA meeting. The manager verifies the score. In this process, nobody gives or takes anything. Juniors earn the marks, and there is evidence for this. In the same PA meeting, the junior is also expected to come up with his KRA for the next quarter or half-year. The manager verifies it, reassigns the weights if required, changes the KRAs itself if necessary. Further feedback can follow in subsequent meetings. Since the junior themselves calculate the score, there is no room for disgruntlement.
There is a lot of misconception about the concepts of KPI and KRA. To remove this misconception, I have uploaded my presentation on YouTube. To refer to that video, you may click here.
I have been giving my replies on the subject time and again. If you wish to refer to my past replies, you may click the following links:
- Subjectivity in Performance Appraisal
- Design PMS Program for a Pharmaceutical Company
- KPI in the Valve Industry Start-Up
I handle consulting on PMS. To know more about my services, you may click here. If you hire my services, I will conduct a deep study of each department and design new measures which you had never thought of before. PMS will be helpful to you in your recruitment, employee training, manpower planning, and so on.
Thanks,
Dinesh V Divekar
Bangalore - 560092
From India, Bangalore
Dear Mr./Miss/Mrs. Rukmi,
God bless you and welcome to the forum.
I see you have joined a startup firm with a staff of around 50 employees. Do not get flustered, and stay cool. The company will not invest in any high-end systems at this initial stage.
NOTHING WILL GO WRONG IF YOU START ON YOUR OWN PMS
Let's clarify one thing: whether you are a qualified HR professional or not, it does not matter.
1. Do not mix up Performance Management System with other HR duties.
2. Let's concentrate solely on performance management.
3. What is the purpose of PMS?
4. We need to evaluate employees' performance regularly and decide on retention, promotion, incentives, training, and other activities.
5. So, what should Rukmi do?
a. Create a list of all staff members.
b. Design a hierarchy tree to determine assessors and those being assessed.
c. Define who will assess technically and who will assess other aspects like loyalty, integrity, behavior, dedication, and absence.
d. Is the assessor qualified for the role?
e. Establish an organizational tree with technical assessors, general assessors, reviewing technical assessors, reviewing general assessors, and ultimately the Executive Director.
f. Inform employees that PMS is not about catching performance mistakes but guiding them to enhance their performance skills and career.
g. Prepare a list of items to measure, have employees fill it out themselves, and document their achievements and contributions to the organization.
h. Without showing the assessors (both technical and general), conduct the assessment.
i. Choose between a numerical scale or a written assessment pattern.
j. Compile and present the assessment to reviewing assessors, management, and the Executive Director.
k. Decide on a policy regarding semi-annual or annual reviews.
l. Establish a policy on providing training related to performance.
m. Decide on policies regarding rewards, incentives, or penalties linked to performance.
There are more details to discuss once we know more about you, the organization, the type of work/output, management policies, job analysis, and job descriptions.
I offer free services, and you can reach me at rhinoramanan@gmail.com.
Blessings,
Let the PMS be your creation, your thoughts, your design, and your achievement. You can proudly share it with your spouse and children.
Dr. Ram
From India, Indore
God bless you and welcome to the forum.
I see you have joined a startup firm with a staff of around 50 employees. Do not get flustered, and stay cool. The company will not invest in any high-end systems at this initial stage.
NOTHING WILL GO WRONG IF YOU START ON YOUR OWN PMS
Let's clarify one thing: whether you are a qualified HR professional or not, it does not matter.
1. Do not mix up Performance Management System with other HR duties.
2. Let's concentrate solely on performance management.
3. What is the purpose of PMS?
4. We need to evaluate employees' performance regularly and decide on retention, promotion, incentives, training, and other activities.
5. So, what should Rukmi do?
a. Create a list of all staff members.
b. Design a hierarchy tree to determine assessors and those being assessed.
c. Define who will assess technically and who will assess other aspects like loyalty, integrity, behavior, dedication, and absence.
d. Is the assessor qualified for the role?
e. Establish an organizational tree with technical assessors, general assessors, reviewing technical assessors, reviewing general assessors, and ultimately the Executive Director.
f. Inform employees that PMS is not about catching performance mistakes but guiding them to enhance their performance skills and career.
g. Prepare a list of items to measure, have employees fill it out themselves, and document their achievements and contributions to the organization.
h. Without showing the assessors (both technical and general), conduct the assessment.
i. Choose between a numerical scale or a written assessment pattern.
j. Compile and present the assessment to reviewing assessors, management, and the Executive Director.
k. Decide on a policy regarding semi-annual or annual reviews.
l. Establish a policy on providing training related to performance.
m. Decide on policies regarding rewards, incentives, or penalties linked to performance.
There are more details to discuss once we know more about you, the organization, the type of work/output, management policies, job analysis, and job descriptions.
I offer free services, and you can reach me at rhinoramanan@gmail.com.
Blessings,
Let the PMS be your creation, your thoughts, your design, and your achievement. You can proudly share it with your spouse and children.
Dr. Ram
From India, Indore
Dear Rukmi,
The core of a good Performance Management program starts from clarity in Senior Management's plans and expectations from its employees.
They should realize that it is their primary duty to set clear goals, related performance indicators, and define methods to measure, monitor, and communicate. It is quite imperative that the following are done with diligence and the right intent:
1) Performance goals are linked to business plans in such a way that these can be broken down to the lowest level of the organization hierarchy.
2) Clear performance indicators are identified and methods to measure these specified and known to all employees.
3) A transparent process of measuring performance is instituted that has enough scope for feedback and identifying development needs for continuous improvement.
4) Regular and honest communication on business outcomes and any change in plans/strategy.
Here's a blog post on why Top Performers leave organizations - GroSum - Blogs
Let me know if you have any queries. I will be happy to answer them.
Souvik Majumdar
GroSum
+91-9830092829
souvik (at) grosum (dot) com
From India, Bangalore
The core of a good Performance Management program starts from clarity in Senior Management's plans and expectations from its employees.
They should realize that it is their primary duty to set clear goals, related performance indicators, and define methods to measure, monitor, and communicate. It is quite imperative that the following are done with diligence and the right intent:
1) Performance goals are linked to business plans in such a way that these can be broken down to the lowest level of the organization hierarchy.
2) Clear performance indicators are identified and methods to measure these specified and known to all employees.
3) A transparent process of measuring performance is instituted that has enough scope for feedback and identifying development needs for continuous improvement.
4) Regular and honest communication on business outcomes and any change in plans/strategy.
Here's a blog post on why Top Performers leave organizations - GroSum - Blogs
Let me know if you have any queries. I will be happy to answer them.
Souvik Majumdar
GroSum
+91-9830092829
souvik (at) grosum (dot) com
From India, Bangalore
Dear Souvik,
Since I provide consulting services to establish PMS, I have the following to say:
a) The very first sentence of your post says, "The core of a good Performance Management program starts from clarity in Senior Management's plans & expectations from its employees." This need not be the core. The core is whether everything is measured that deserves to be measured. I find that measures are not designed to measure the direct and indirect costs of each department.
b) The core of PMS is to foster a culture of measurement. For this, the importance of measures or the importance of various costs should be understood by the lowest-level employees.
c) Top management is obsessed only with turnover, stock value, and profitability. Not necessarily do they conduct research on their working practices or study their operations.
d) Policies on recruitment, training, and compensation should be derived from the Policy on PMS. Many times, I find a complete disconnect between PMS and all other factors.
Thanks,
Dinesh Divekar
From India, Bangalore
Since I provide consulting services to establish PMS, I have the following to say:
a) The very first sentence of your post says, "The core of a good Performance Management program starts from clarity in Senior Management's plans & expectations from its employees." This need not be the core. The core is whether everything is measured that deserves to be measured. I find that measures are not designed to measure the direct and indirect costs of each department.
b) The core of PMS is to foster a culture of measurement. For this, the importance of measures or the importance of various costs should be understood by the lowest-level employees.
c) Top management is obsessed only with turnover, stock value, and profitability. Not necessarily do they conduct research on their working practices or study their operations.
d) Policies on recruitment, training, and compensation should be derived from the Policy on PMS. Many times, I find a complete disconnect between PMS and all other factors.
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Rukmi,
Thank you for acknowledging my earlier comment. I would like to comment that Mr. Soumik has advised you to pass the buck to the management. The top echelons may have knowledge on many issues but cannot be expected to give clear-cut directions at all times on all matters. They have hired and tasked you to make a system since you are a subject expert.
Please make a recommended system as suggested by me earlier and give more than one option, brainstorm it in your various forums, refine it, and present it to management for approval. The management wants to implement a PMS and you are the tool. Do a good job of it, and they will award you for your performance. Let the buck stop with you and not be passed off to anyone. Have a great chance to prove your worth.
Blessings,
Dr. Ram
From India, Indore
Thank you for acknowledging my earlier comment. I would like to comment that Mr. Soumik has advised you to pass the buck to the management. The top echelons may have knowledge on many issues but cannot be expected to give clear-cut directions at all times on all matters. They have hired and tasked you to make a system since you are a subject expert.
Please make a recommended system as suggested by me earlier and give more than one option, brainstorm it in your various forums, refine it, and present it to management for approval. The management wants to implement a PMS and you are the tool. Do a good job of it, and they will award you for your performance. Let the buck stop with you and not be passed off to anyone. Have a great chance to prove your worth.
Blessings,
Dr. Ram
From India, Indore
Dear Dr. Ram & Mr. Divekar,
It is interesting to note your comments on my post.
It's important to clarify that I did not mean that one should pass the buck to Senior Management. Rather, Management should be actively involved in the definition of performance goals & KRAs at an organization & departmental levels, from which individual objectives should be derived.
As Mr. Divekar pointed out, Top Management's typical priority is company profitability. So, how can such an objective be broken down such that each employee can contribute towards the attainment of that goal? Let's see with an example.
Profitability enhancement is achieved by increasing revenue & optimizing costs. Can we tie individual goals that can contribute towards these? Yes, definitely we can. Thus, an employee in the IT department can have objectives of cost reduction by negotiating rate contracts with vendors to lower year-over-year maintenance costs. Similarly, a Recruiter in the HR department can have objectives related to reducing cycle time to hire.
After all, the employee is not separate from the company & his/her performance always impacts the company. It is in tying individual objectives to company goals that one can design a very effective PMS that also helps in improving employee engagement & ownership.
Hope this helps,
Souvik
From India, Bangalore
It is interesting to note your comments on my post.
It's important to clarify that I did not mean that one should pass the buck to Senior Management. Rather, Management should be actively involved in the definition of performance goals & KRAs at an organization & departmental levels, from which individual objectives should be derived.
As Mr. Divekar pointed out, Top Management's typical priority is company profitability. So, how can such an objective be broken down such that each employee can contribute towards the attainment of that goal? Let's see with an example.
Profitability enhancement is achieved by increasing revenue & optimizing costs. Can we tie individual goals that can contribute towards these? Yes, definitely we can. Thus, an employee in the IT department can have objectives of cost reduction by negotiating rate contracts with vendors to lower year-over-year maintenance costs. Similarly, a Recruiter in the HR department can have objectives related to reducing cycle time to hire.
After all, the employee is not separate from the company & his/her performance always impacts the company. It is in tying individual objectives to company goals that one can design a very effective PMS that also helps in improving employee engagement & ownership.
Hope this helps,
Souvik
From India, Bangalore
Hi!
The discussion above only shows that PMS (Performance Management System) is a very interesting and intriguing subject matter. It also shows that it can be viewed and understood from different perspectives. Hence, it may be difficult for some people to have a consensus on the matter, especially when they are coming from various or different points of view.
As one of those who developed the early PMS concept, what I could say is that there are only THREE (3) major factors that one should bear in mind when attempting to create and/or implement a PMS. These factors are: CONCEPT, FORM, and POLICY.
1. The CONCEPT should be able to define and explain very clearly the kind, type, and frequency of the appraisal that you wish to implement. It should identify the raters, the rating system, and the implication of the ratings vis-a-vis compensation, promotions, and rewards.
2. The FORM should be user-friendly and easy to administer, especially if your organization is big and the number of your employees runs to thousands. The form must be designed as simple as possible, preferably a "ONE-PAGER MATRIX" form that incorporates performance targets/goals, rating scores, and improvement plans.
3. The POLICY should be able to spell out the roles and responsibilities of the appraiser, the employee, HR, Management, and the Company. It should define clearly how disputes on ratings can be settled.
Best regards to all!
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
Tel: 006352-742-0315
From Philippines, Para�aque
The discussion above only shows that PMS (Performance Management System) is a very interesting and intriguing subject matter. It also shows that it can be viewed and understood from different perspectives. Hence, it may be difficult for some people to have a consensus on the matter, especially when they are coming from various or different points of view.
As one of those who developed the early PMS concept, what I could say is that there are only THREE (3) major factors that one should bear in mind when attempting to create and/or implement a PMS. These factors are: CONCEPT, FORM, and POLICY.
1. The CONCEPT should be able to define and explain very clearly the kind, type, and frequency of the appraisal that you wish to implement. It should identify the raters, the rating system, and the implication of the ratings vis-a-vis compensation, promotions, and rewards.
2. The FORM should be user-friendly and easy to administer, especially if your organization is big and the number of your employees runs to thousands. The form must be designed as simple as possible, preferably a "ONE-PAGER MATRIX" form that incorporates performance targets/goals, rating scores, and improvement plans.
3. The POLICY should be able to spell out the roles and responsibilities of the appraiser, the employee, HR, Management, and the Company. It should define clearly how disputes on ratings can be settled.
Best regards to all!
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
Tel: 006352-742-0315
From Philippines, Para�aque
Most important thing is for you to identify the key behaviors that you want to drive in your organization. Basically, PMS is a means to achieve an end, which in this case is the profitability of the organization. Then you can go for the appropriate model.
From India, Bangalore
From India, Bangalore
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
