Performance

management
System

By Rahul Tiwari
 What is performance
Management ?
► MANAGEMENT TOOL THAT PROVIDES A LINK
BETWEEN THE BROADEST AIM AND THE EFFORTS

► IT IS THE DAILY FUNCTION OF PLANNING,

MOTIVATING, DEVELOPING AND SUPPORTING
EMPLOYEES SO THAT THEY CAN MORE EFFECTIVELY
ACHIEVE THE DESIRED RESULT OF THEIR
RESPECTIVE JOBS
► DOING SO CONTRIBUTE TOWARDS THE BUSINESS
OBJECTIVES OF THE ORGANIZATION

► CONSIDERS THE TOTALITY OF AN EMPLOYEES

PERFORMANCE – i.e.: THE RESULTS ACHIEVED AND
THE COMPETENCIES (BEHAVIUORAL SKILLS) USED
TO ACHIEVE THOSE RESULTS

► PERFORMANCE = RESULTS + COMPETENCIES

 Why Performance
Management ?
► IT COMMITTED TO ENCOURAGING A RESULTS
BASED CULTURE WITHIN THE BUSINESS

► PERFORMANCE MANAGEMENT HAS STARTED WITH

MEMBERS OF THE SENIOR EXECUTIVE SERVICE
THAT IS ESSENTIALLY MADE UP OF EXECUTIVE
MANAGEMENT STAFF AND VARIOUS DEPRTMENTS

► MANAGING PERFORMANCE IS CENTRAL TO

EFFECTIVELY MANAGING HUMAN RESOURCES
► THE PROCESS SERVES BOTH DAY TO DAY
MANGEMENT AND STRATTEGIC PURPOSES

► THE SYSTEM ALSO PROVIDES A MECHANISM FOR

LINKING ORGANIZATIONAL AND PROGRAM GOALS
WITH THE ACTUAL PERFORMANCE OF INDIVIDUAL
OFFICERS WITHIN THE ORGANIZATION

► IT ALSO PROVIDES A REVIEW MECHANISM WHERE

THE QUALITY OF PERFORMANCE IS NOT ONLY
MEASURED BUT LEADS TO DECISIONS TO ASSIST,
ACKNOWLEDGE AND REEWARD OR SANCTION
PERFORMANCE
 PRINCIPLES AND GUIDELINES OF
PERFORMANCE
MANAGEMENT

► AS EARLY AS POSSIBLE IT IS IMPORTANT THAT

WHAT IS BEING PROPOSED IN TERMS OF
“PERFORMANCE MANAGEMENT”

► DEVELOPEMNT AND IMPLEMENTATION IS TAKEN IN

CONSULTATION WITH EMPLOYEES
► THE PROCESS SHALL INCLUDE THE DEVELOPMENT
OF A WORK PLAN WHICH INCORPORATES THE
SETTING OF GOALS AND OBJECTIVES, PROGRESS
REVIEW, AN ANNUAL PERFORMANCE REVIEW AND
JUDGEMENTS AND DECISIONS BASED ON THAT
REVIEW
 Performance Cycle

SETTING
EXPECTATION

OBSERVATION
PROVIDING ACTIONABLE BEHAVIOUR AND MEASURE
COACHING & FEEDBACK RESULT
PMVC
► The PMVC is a framework to improve the
analysis and management of performance
measures based on its logical rationalization
of performance data. For this reason, the
researchers found it as a suitable tool to
analyze the impact of performance
measurement on business results. The
seven PMCV’s phases are used as generic
guidelines to develop a high level process of
our proposed research methodology.
Performance measurement
aspects of the organizations
Cross Case
Analysis

Triangulation
of data
Components of Data
Analysis: Flow Model
 The novelties of this approach:

► The study of internal and external impact of PMS.

We refer as ‘internal impact’ as the impact of PMS
in the business operations and capabilities and
‘external impact’ as the impact perceived by
stakeholders, such as reputation, profitability, etc. It
is achieved by the application of the cases studies
following the two stages above described.

► This methodology will allows us to explore the

sequential effects of the internal impact of PMS, in
which almost no research has been conducted.
► Interviewing team leaders and measurement
owners is a somewhat original approach, compared
to most studies on the impact of PMS.
 Important Implications
of PMS
► providing
a better understanding of
the impact of PMS in their business.

► understanding the use of positive

factors associated with positive
impacts of PMS.

► Enhancing the selection and

optimization of PMS factors that lead
them to have positive impact on
business performances.
 Limitation of PMS
► Theinherent problem is that some of
these survey-studies lack of strong
methodological basis and are limited
to the knowledge and perception of
people that answer the survey.

► Researchers
do not have control on
important variables such as if
companies have in reality PMS in
place.
► These results provide very little
guidance to managers and
practitioners to understand the impact
of PMS and the factors associated.

► Nevertheless,it is understandable
because surveys have a limited
capacity to study and gather new
findings
 Contd….
► Moststudies have focused on the financial
and managerial impact of PMS.

► This is because these issues have a natural

ability to manifest or reflect changes to the
environment.

► One of the main reasons might be because

it requires more time and commitment from
participating companies to study the
behavior and impact of PMS on operations.
 Discussion and Conclusions

► Theextensive body of research around

the domain of performance
measurement and management has
basically concentrated on design and
implementation of different
frameworks and on the solution of PMS
problems. Companies have made large
investments on the hypothesis that
the use of ‘balanced’ performance
measurement systems has a positive
impact on the performance of the
organization.
► Despite the strong effort on the
development and implementation of
PMS, there is relatively little research,
which tests the hypothesis that there
is a positive return for the investment
Even less investigation has been done
on the identification of factors that
lead to PMS having a positive impact
on business results.
A START
ENDS
HERE
YO…..