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Introduction of CompanyCompany Name: ABC Ltd.

No. of employees: 60

Culture: Informal and competitive.

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Contd

Performance Management A management process forensuring employees are focusing their work efforts in waysthat contribute to achieving the agencys mission. Itconsists of three phases:

(a) setting expectations for employee performance,(b) maintaining a dialogue between supervisor andemployee to keep performance on track, and(c) measuring actual performance relative to performanceexpectations.

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WHY MEASURE PERFORMANCE ?

Because:

What you cannot measure you cannot improve.If you cannot improve you cannot grow.

Measurement helps in objectively differentiating betweenperformers and non performers.Pay for performance is possible only throughmetrics.

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PAS & PMS

PAS:Emphasis is on relativeevaluation of individuals Annual exerciseRewards & recognition of good performanceDesigned & monitored by

HR departmentOwnership is mostly withthe HR dept.

PMS:Emphasis is on performanceof individuals, team &organization.Continuous processPerformance rewarding may or may not be integral part

Designed by HR dept. butmonitored by respective dept.Ownership is with the linemanagers, HR facilitates its

implementation

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CultureCompetitiveInformal

Flexi-timeNo communication barriersDemocratic management style

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Philosophy Yearly appraisalMerit based and not seniority based

Ranking method Welcoming ideas

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Methodology360 DegreeGraphing rating method

Ranking methodManagement by objective(MBO)Critical incident method

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Strategy for communicating new

PMSStep ladder policy Quarterly Conference meeting

Informal communicationReview discussion sessionQuality circle

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Process of PMSPlanning:Setting objective based on SMART it is favorable for

the company on the basis of cost, time and quality feedback about the performance.

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Execution Annual reviews in the months of May every year.Midyear or quarterly light review to ensure feedback is

regular and any corrective measures required areidentified early.

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AssessmentCurrent performance & future potentialTeam player

Leadership quality Honesty, ethics, credibility

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Assessing by 360 degree method40% weight is given to the immediate boss.20% weight is given to colleagues.

20% weight is given to sub-ordinates.20% weight is given to self-assessment.

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Continued Review discussion session is held.There is a skill-development session for under

performers.Reward delivering:Employees with good ratings are rewarded by salary increases , incentives , bonuses & promotions.