SYSTEM
PERFORMANCE MANAGEMENT SYSTEM
Performance Management System(PMS) is one of the important components in systemic process of human resource management. The information obtained through performance management system provides foundations for recruiting and selecting
new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource
management system falls apart, resulting in the total waste of the valuable human assets a company has.
There are two primary purposes of performance management system : evaluative developmental. The evaluative purpose is intended to inform people of their
performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned
task. The collected performance data are used to provide necessary skill training or professional development.
In order for performance appraisal information to be useful, the PMS system must be
able to consistently produce reliable and valid results. Measurement items in the performance appraisal system must be designed in such a way that the results of
rating are consistent regardless of the raters and the timing of the assessment.
The purpose of performance appraisal must be clearly communicated both to raters and ratees, because their reactions to the appraisal process are significantly
different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.
In order for performance information to be useful, the PMS system must be able to consistently produce reliable and valid results. Measurement items in the performance managemnt system must be designed in such a way that the results of
rating are consistent regardless of the raters and the timing of the assessment.
Another critical criterion in developing a PA system is the validity of the measurements. It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. If they are not, the PM system encourages the wrong kind of work behaviors and produces unintended , frequently negative, organizational outcomes. For instance, if the number of traffic violation tickets issued is an item in performance appraisal of police officers, it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. The true purpose of a police force, which is public safety, may become secondary to issuing a large number of tickets for many
officers.
What to Evaluate?
The first important step in developing a PM system is to determine which aspects of performance to evaluate. The most frequently used appraisal criteria are traits, behaviors, and task outcomes.
(a) Traits :- Many employees are assessed according to their traits, such as
personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know ratees. But traits are not always directly related to job per formance. Trait-based assessment lacks validity and thus frequently raises legal questions.
(b)Behaviors :- For many jobs, performance is so broadly defined or so conceptual in nature² such as ensuring public safety in the police de
partment²that it is hard to come up with reliable performance measures. In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace.
(c) Task outcomes :- When information about task outcomes is readily
available, it is the most appropriate factor to use in evaluating performance.
When an organization has a clear and measurable goal as in the case of a sales force, this approach is recommended. However, it has its own pitfalls.
There is a problem if employee behaviors are not directly related to the task out-come. Too narrow a focus on measuring out-come only sometimes
results in unintended negative consequences. When sales staff narrowly focus on target sales figures to increase their performance measure, for example, they are encouraged to help a few large-volume customers and to ignore many smaller buyers. This may result in poor customer service on the floor.
Who Evaluates?
The most common raters of performance are
employees' immediate supervisors, who are usually in the best position to know and observe the employees' job performance. They are also responsible for
employee¶s work. Their evaluation is a powerful tool in motivating employees to achieve successful and timely completion of tasks. However, as a result of working together over a long time with the same employees, the immediate supervisor may build up a fixed impression about each employee and use it every time he or she
has to evaluate performance.
Some companies find that subordinates are in an excellent position to observe and
evaluate their managers' performance, especially when it comes to measuring effective management of their department. While there is merit in asking
subordinates to evaluate how they are managed, such evaluation may turn into a popularity contest. Accurate and objective assessment may not be obtained if
employees are fearful of possible retaliation from their supervisors. Anonymity of the evaluators is key to the successful use of subordinates for objective evaluation.
Other raters who are frequently used in some companies include peers, customers, and the employees themselves. Peer evaluation is particularly useful when
teamwork and collegiality are important to successful task performance. Peer pressure is sometimes a powerful motivator in encouraging teamwork among
members. Customer satisfaction is vital to a company's success and can be used in performance management. Many companies systematically collect performance
information from customers, typically through anonymous surveys and interviews.
Self-assessment is also a useful means, especially when the performance appraisal is intended to identify the training and development needs of potential employees.
Organization exist to attain certain goals and objectives through a effort. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Some form of control and co-ordination is needed to facilitate the
achievement of such goal. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Control devices in the form of
performance appraisals were invented by the corporate world to accomplish their professed objectives.
³Performance management system is systematic and objective way of judging the relative
worth or ability of an employee in performing his task.´ It is a process of evaluating an employees performance on a job in terms of its requirement.
In industry, appraisal is a systematic evaluation of performance by supervisors or other familier with their performance because employers are interested in knowing about employee performance. Employee also wishes to know their position in their organization. Performance mgt helps to identify those who are performing
their assigned tasks well and those who are not and the reason for such
performance. A caution has to be exercised as the assessment of an individual¶s performance is a delicate task since it is intricately enmeshed in the personality
make up of one who is assessing the performance and having profound effect on the individual who is being assessed. It is here that the weakness of human
judgement comes to the force. In the field of human behavior and performance, the measurement or appraisal can¶t take the form of weighing on a scale certain
material object or accurately temperature with the instrument. Thus judgement as the basis of the appraisal can be subject to numerous drawbacks connected with the perceptions one¶s own bias, the social prejudice, unconscious urges and the fact that it is impossible to arrive at categorically absolute judgement in this sphere.
Performance Appraisal is useful in many ways as it many ways as it helps in salary and wage determination, helping the employees know their achievements
and failures, training and development needs, promotions and transfer decisions etc. Therefore, a good performance appraisal system should aim at facilitating the communication between two officers and developing empathy, mutuality and appreciation for one another¶s problem.
Performance management system concerns with mainly three
purposes:- Administrative decisions i. e. Promotions, transfers and allocation of financial rewards.
Employee development i.e. identification of training and developmental needs and performance feedback.
Personnel research i. e. identification of training and developmental needs and performance feedback.
Therefore a good performance appraisal system should aim at facilitating the communication between two officers and developing empathy, mutuality and appreciation for one another¶s problem.
PURPOSE OF PERFORMANCE
APPRAISAL:- To help determine promotions and transfer decisions.
To identify area for further training.
To help in deciding the compensation plan.
To uncover the potential of the person.
To decide about confirmation or termination during probationary period.
ADVANTAGE OF SYSTEMATIC APPROACH TO PERFORMANCE
APPRAISAL:-(1) If it is possible to establish an atmosphere of mutual trust and confidence an effective performance appraisal system will help to build up employee morale.
(2) It will stimulate employee participation in decision making affecting his own work. Management By Objectives is an established criterion as the standard of performance is established by the superior in consultation with employee concerned. Employee interest to improve his performance will help the
management in achieving the organizational goals.
(3) It will also help the management in rationalizing a job-oriented level of individual performance. Once the performance level is satisfactorily
established, the standard of performance could also move upward leading to productivity.
(4) Employee performance can be utilized for placement, job-rotation, transfers, lay-offs, dismissal and discharges demotions.
(5) Such appraisals can also serve as a guide in properly administering wage-and salary administrations.
In addition to having an impact on productivity, an effectively designed performance appraisal form servers as a contract between the organization
and the employee. This contract acts as a control and evaluating system, better enabling performance appraisal to serve the following performance:
Management development:
-Focuses on the future by identifying and preparing individuals for increased responsibility or by establishing
remedial training programs.
Performance measurement
:-Emphasis the past, trying to determine the relative value of employee performance; is useful for promotion,
transfer, compensation and layoff decision.
Feedback
:-Outlines what performance is expected from employee.
HR planning
:-Audits management talent to evaluate the present supply of HR for replacement planning.
Communication
:-Provide a format for the dialogue between superior and subordinate and improves understanding of personal goals and concerns; can also increase the trust between the rater and rate.
PERFORMANCE APPRAISAL- CONCEPT AND PHILOSOPHY
:-Performance appraisals are also known as employee appraisal. It is a technique by which the performance of an employee is measured in terms of cost, quality, time and quantity. Performance appraisal is considered as part of career improvement and development.
Performance appraisal are is on going continuous review of company¶s employee performance.
The purpose of these appraisals are as follows:
Give feedback on employee¶s performance.
Recognize training needs of employee.
Shape criteria for salary increments, promotion etc.
Offer the chance for organizational analysis and improvement.
Bridge the communication gap between employee and administrator.
Document criteria used to allocate organizational rewards.
Form a basis for personnel decisions: salary increases, promotions,
disciplinary actions, etc.
Provide the opportunity for organizational diagnosis and development.
Validate selection techniques and human resource policies to meet federal equal Employment Opportunity requirements.
A frequently used technique to evaluate performance is to make use of numerical or scalar rating method where managers numerically score an individual against a number of objectives/ attributes.The other method is 360 degree performance appraisal in this the employees are also allowed the
opportunity to assess the person and give feedback about manager.
Mostly used appraisals
are:- 360-Degree Performance Appraisal.
General Performance Appraisal.
Technical /Administrative Performance Appraisal.
Manager Performance Appraisal.
Employee Self ±Assessment.
Project Evaluation Review.
Sales Performance Appraisal.
PROCESSES OF PERFORMANCE APPRAISAL
The process of Performance Appraisal is as shown in the following tabular