Implementing a Performance management system in the Organization

 

What is Performance management system? 

Performance management system (PMS) is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Armstrong, 2006).

Importance of PMS

Employee	Employer
Good system increases motivation and self-esteem which helps improve performance	Good systems allow them to gain insight into employee’s activities and goals
Clarifies job tasks and duties	Allow for more fair and appropriate administrative actions
Provides self insight and development opportunities	Allow to communicate organizational goals more clearly
Clarifies supervisors expectations	To differentiate good and poor performers

Finally, from the perspective of the HR function, a good system provides protection from litigation and can also help minimize employee misconduct which can have so many negative consequences for the organization (Aguinis, 2012). 

Why PMS to be implemented?

Many organizations have systems labeled PMS, but usually they applied for performance appraisal systems, Performance appraisal emphasizes the assessment of an employee’s strengths and weaknesses and does not include strategic business considerations and it doesn’t include extensive and ongoing feedback that an employee can use to improve performance in the future perhaps performance appraisal is a once-a-year event that is often driven by the HR department, whereas PMSis a year round way of managing business that is driven by managers (Pulakos, 2004).

PMS Implement Process

Planning: Smart goal setting process which should be fairness, usefulness and motivation to improve

Monitoring: Active tracking system, it is important to focus on whether the goal is achieved instead of how it is achieved

 

 Developing:  underperformance should be corrected this can be achieved in the form of training and development

 

Rating & rewarding:  inevitability to determine the added value of employees to the organization. This is usually done during the employee’s annual performance appraisal,the employee should be recognized for their performance. this can be through giving them praise, a raise, time off, recognition items or a Job promotion (Vulpen, 2020).

Globally, countries like Mexico, UK, USA, France, Germany, Turkey, India, China, South Korea, Japan & Australia many organizations are adopted for the PMS (Varma, et al., 2008)

 

In XYZ Engineering, PMS practice in the form of KPI (Key performance Indicators) which allows to make the decision at certain level for management. 

Conclusion 

 

Implementing PMS to an organization will Improve the overall performance, PMS is a shared responsibility between the manager and the follower whole process will more effective when the follower is motivated when he/she feels involved in the process and understands why their goals matter to their colleagues and the rest of the organization.

References 

Armstrong, M., 2006. A handbook of human resource management practice. 10th Edition ed. London: Kogan Page.

 

Pulakos, E., 2004. Performance Management: A Roadmap for Developing Implementing and Evaluating Performance Management Systems. 1st Edition ed. Virginia: The SHRM Foundation.

 

Aguinis, H., 2012. Performance Management. 3rd Edition ed. Indiana: Pearson.

 

Vulpen, E., 2020. AIHR Digital. [Online] 
Available at: https://www.digitalhrtech.com/performance-management-cycle/?utm_source=eriklinkedin&utm_medium=social&utm_campaign=blog&utm_content=performance-management-cycle
[Accessed 10 December 2020].

 

Varma, A., Budhwar, P. & Denisi, A., 2008. Performance management systems a global prospective. 1st Edition ed. Newyork: Routledge.