Performance Management Process Planning

1. De ning Stage

1.3 Convert objectives into 

1.1 Identify organisational  1.2 Defining jobs with  1.3 Convert objectives into  1.3
1.4Convert
Developobjectives into 
a performance  1.3
1.5Convert objectives into 
Define boundaries and 
1.1 Identify organisational  1.2 Defining jobs with  actionable long/short term 
goals & key objectives comprehensive description actionable long/short term  actionable long/short
plan alongside term 
goals actionable
guidelineslong/short term 
for the process
goals & key objectives comprehensive description goals
goals goals goals

The real essence of  Organizations have  The company policies are 
The task-oriented goals are  There is a loss of value  Do organizations  The steps/process 
Key Objectives Stakeholders  The organizations  designed in a way which 
motivation at  assigned to employees only  during the translation  started to adopt to  invest enough time  and guidelines are 
1.Targets involved - Only the  dictates the process in a 
employee level  is  is not able to  based on organizational 
of objectives into  tech-based  and resources for  skewed manner - Can  not established 
2.Market Capture upper management  needs - it does not consider 
lost as soon as the  convert their  if employee is competent 
actionable goals and  appraisal methods  focusing so much on  policies be designed  while setting the 
3.Target Revenue  is involved in  according to the actions of 
objective are  requirements into  to complete the work - lack  tasks - it becomes only  which documents all  employee  goal and target for 
4.Employee's Skill level defining the key  the employee and their 
converted into  of empathy output-oriented. the data but hardly  development? the employees
5.Certain Value/Culture objectives . specific talents. well being?
individual goal access most of it.
failure failure Question Question Gray area failure

Top managements are  There is so much 

considered as leaders  data overload which 
in terms of showing  needs a separate 
direction towards  data analytics 
which the company  workforce to derive 
should be headed insights - Superficial 
usage
5W

Department-level
Department- levelgoals
goals Manager-level
Manager- levelgoals
goals Team-level
Team- levelgoals
goals Employeelevel
Employee levelGoal
Goal

Employee concerns are  Some employees 

Are obstacles/bottle- Does the responsibility of  Overcoming hurdles/  Achievement of  How to keep the 
different from other  The organizations assign 
necks/challenges of  departments which is not 
the manager curtail  adapting to change/ -  team level goals  get away with not  importance training 
employee development 
designing employee goal?  
different teams  always addressed  are these parameters  doing any work in a  goals as a formality to  and skill building as a 
Is there an assessment of  can not always 
considered while  separately. Concerns of 
the manager to understand 
considered while  team - holding every  conform with the industry  part of performance 
micro can be different from  designing the goals of  reflect the goals  domain trends - they are  management and 
making department  the effectiveness of his goal  employee 
macro which needs to be 
goals? setting ability? the team? acheived by the  accountable is 
not able to perceive its 
appraisal process?
given attention. value.
employee. necessary
Question Gray area Question Gray area Question Question challenge

Appraisal Process
Planning
Identifying suitable methods for  Identify key parameters for  Quantification of the set  Design of how parameters get 
1.1 Identify organisational goals &  1.1 Identify organisational goals &  1.1 Identify organisational goals &  1.1 Identify organisational goals & 
appraisal evaluation parameters reflected in the performance target
key objectives key objectives key objectives key objectives

Appraisalparameters
parametersarearedesigned 
designed  Requiredcompetencies
Required competenciesand
andjob 
job  Howisisthe
theprocess
processto
toreach
reachthe
thegoal 
goal 
Appraisal How Arethe
Are theappraisers
appraiserstrained
trainedto
tomake
makethe 
the 
onlyto
toevaluate
evaluatethe
theoutcome
outcome expectationsneed
expectations needto
tobe
bedrafted
draftedfor 
for  beingmeasured?
measured? processeffective
effectiverather
ratherthan
thanpunitive?
punitive?
only being process
eachemployee.
each employee.
 Planning

2.Feedback Stage 3. Approval Stage

2.1 Brief employees about 

2.2 Discussing strategic plan for  1.3
2.3Convert
Employeeobjectives
feedbackinto 
for  1.3Agreeing
3.1 Convert toobjectives into  of 
the definition 1.3 Convert objectives into 
1.1 Identify
company set-organisational 
goals/ objectives/  1.2 Defining jobs with  3.2 Targets/goals are Set
the year with employees actionable long/short term 
reiteration actionable long/short
the role, goals term 
and objectives actionable long/short term 
goals methods
& key objectives
etc., comprehensive description
goals goals goals

The managers do not  Employees are 

Companies have  Hierarchy system is  Evidence for integration of  Evaluation parameters  The process should not be 
The briefing & discussion  customise the goal  unaware of the  misinterpreted by organisation 
session becomes a one-
their own portals  employee feedback into  currently focus only on  made very rigid to which 
sheets but rather do a  company's goal and  which creates many barriers for 
goals & objectives of  quantity/amount of work  changes cannot be made 
way work delegation  where employees  an employee to raise concern - 
common one without  objectives and how  needs to go through a series of 
organization - can it be  produced but do not give  midway - but should be 
interaction for the  can share the views,  even across all  much importance to  able to adapt to changing 
employee - rather not  considering/addressing  are they linked to  permissions to even talk to a 

each employees  but mostly are not  higher authority. departments? process of how the work  business needs of the 
participative & co-creative. their individual goals  was done and its quality organization.
specifically taken into account
and responsibilities
failure failure

Decide annual appraisal 

Department-level goals
process
Time-to-time revisiting of the goals
and objectives to check its relevance
through the PA cycle
People perceive appraisal 
Period of evaluation 
directly with rewards - if 
is fixed - So the  not rewarded, there is a 
goals of the  bad perception of 
employee also  organization itself. There is 
no relation to 
become short-lived  Meetings must be done in 
The process needs to be  Even though the 
growth/learning/developm an organic way which will 
and non-perpetual. ent in the employees' mind regular and tedious to stay  process is for 
make employee feel 
relevant to the needs - 
Question Gray area comfortable in the process  monitoring it should 
otherwise the tasks/ goals 
and he is able to speak out 
are done for the sake for it 
not loose its essence of 
his concerns - playing an  employee review and 
which serves no one's 
authoratative role is not 
purpose. assistance to his goal.
going to help

The employees are not  opportunity challenge opportunity challenge opportunity

sensitized about the 

benefits of certain 
development goals - 
rather it just assigned 
to them as tasks to be 
completed.

Appraisal Process
Planning
Employees are made aware of what  The parameters and the procedure 
Presented/Shared with the  Feedback from employee for 
1.1 Identify organisational goals &  1.1 Identify
skills, organisational
competencies goals
will best & 
assist  1.1 Identify organisational goals &  1.1 of
Identify organisational
performance goals
evaluation & 
are 
Employees confirming clarity
key objectives key objectives
in achieving their goals key objectives key objectives
defined

Feedback
1.1 Identify from employee
organisational for & 
goals
confirming clarity
key objectives
 Monitoring

4. New goals to be
3. Time-to-time
2. Provide necessary introduced that align
revisiting of goals/
1. Regular manager- training, coaching, more properly with
objectives to check its
employee interaction counse ing and organizational
relevance through PM
solutions objectives, if
cycle
necessary

Mentoring process heavily 

Regular assessment will 
relies on manager traits  Employee perceive the  Effectiveness of  The employees perceive  How to get the 
take into consideration  The ability of the employee 
and personality - how open  training programs to be  coaching programs is  only their immediate  employees to adapt 
only current projects that  to stay agile and motivated 
is he to employees for  managers' feedback as 
an employee is working on  an obligation/  not evaluated post the  themselves when the  with new goals being 
them to approach him  useful/ effective and do not 
rather than cumulative  compulsion in which  program - there is no  consider the second/third-
goals and tasks keep  assigned to them is a 
easily in case of any 
picture of working they do not see any  credibility if it has been  updating according to  parameter to evaluate their 
discrepancies layer supervisors' feedback 
capability/ competency
benefit/ purpose or feel  productive/useful for  as useful - proximity bias external factors?
dilemma Gray area rewarded. the employees
dilemma dilemma ambiguity challenge dilemma

The manager is not able to 

PA process currently 
distinguish the feedback to 
assess only outcome  be given when in a team or 
but is not considering  for an individual employee 
the independent  - there is misinterpretation 
variables during course  which might 
motivate/demotivate the 
of the project.
employee.

Issue challenge Issue challenge

Pre Review Scenario

Feedback & development than  Employees able to hold 

Intimation to in datasheets/forms/
Encourage and solicit feedback  (Tool used for evaluation)
punitive measures
Department-level for poor 
goals accountability even when they are 
Department-level goals Department- level goals
from both sides.
performance struggling, by honest feedback

Due to digital assessment,  The employees hesitant to  There should be no  Experience of managers 
Managers evaluate 
all transactions are  open up about their  can create insecurity/ 
employees based on  happening online which  problems, but are 
communication gap  feeling of threat/ fear of 
employees'  reduces human  dependent on the  to ensure a holistic  replacement- which in turn 
character/personality  interactions and there are  managers to detect the  growth of all  can affect their perception 
than his professional  high chances of  hurdles they are facing  about the behavior and 
employees including 
misinterpretation through  during the course of the  performance of the 
behavior/task at hand. managers and 
words. project/activity/work. employee.
supervisors.
challenge dilemma failure Issue Reason failure Issue challenge challenge toxic relationship

Appraisal Process
Monitoring
Regular meetings with the team 
Guidance and Counseling for the 
1.1 Identify
leads andorganisational
manager aboutgoals
the &  1.1 Identify organisational goals & 
shortcomings
key progress
objectives key objectives

Identify
1.1 shortcomings
Identify in trainings, 
organisational goals & 
employees skills
key & motivation levels
objectives
 Reviewing

4. Giving actionable
1. Reviewing employee 2. Reviewing PM 3. Reviewing overa
feedback for insights
performance process itself goal completion
and improvement
The company end up 
Qualitative analysis 
The intended results and  The feedback on the  The process  The applicability of the  The managers are 
The actionable feedback 
setting the goal to make it  actual results or the acts  process should be taken by 
difficult for the employee  is subjective in  that the PM establishes  all the stakeholder as they 
becomes just a  training is it always  finding it difficult to  should not stop at 
taken into account and  have these review/  delivering it to the 
to achieve so that lesser  nature and brings  should be compared in  will show the difficulties  checklist to keep a 
rewards would be given  order to check the overall  and issues they faces which 
this builds an  feedback conversations  employees, but the 
person's biases into  track if the  additional pressure on  fearing that the  managers will also have to 
which is profitable for the  effectiveness of the  giving evaluation at any 
company. picture. process point assigned goals are  the employees employees would not  guide them in the path of 
able to achieve it.
achieved or not take it in the right tone.
failure uncertainty opportunity opportunity failure

Review is done on an  To evaluate if training helped in 

individual/ team/
Department- opportunity 
level goals growth to employee
Department- level as well as 
goals
factors/ challenge basis organization.

Individual analysis in team based  Is the space/  When the feedback has to 
view should talk about the  be shared on individual 
environment conducive 
individual contribution and 
level, it demands for 
behavior within team rather than  for the employee to 
certain level of 
separate individual goals that  realise his worth or 
will reduce the input in teams as  customization and 
employees will start doing things  importance in the  personal assistance which 
on individual basis organization? a group feedback won't 
help.
Issue challenge failure Question

Final Review of the PM Cycle is  The documented performance 

Based on this evaluation, the 
data are recorded for future 
done (monthly/annual/ 
Department- level goals result will be used for reward 
Department-level goals Department-
reference andlevel
bettergoals
goal/ 
Biannual/ quarterly) management procedure
objective setting for next FY.

Employees are not able 

The employee has a  The intent of evaluation  Link between two appraisal 
process should help  to perceive the value of  cycles not very well 
misconception 
identify and train potential  non-monetary reward  established by the 
about appraisal  talent rather than just  benefits - rather seek  manager. Should it be seen 
process being linked  bifurcating them into good  only pay  indepedently or in a 
to raise in salary. and bad performers.
raises/bonuses.
cumulative manner.

Gray area ambiguity dilemma opportunity ambiguity challenge failure failure

Appraisal Process
Reviewing
Final report consisting of all 
One-on-one interaction of 
1.1 Identify organisational goals &  1.1 Identify
Typesorganisational goals & 
of Methods/Tools 1.1 Identify organisational
evaluations goals & 
is collected, 
employee with HR/ team lead
key objectives key objectives key objectives
documented and archived

Employees
1.1 given chance to
Identify organisational present 
goals &  AnyIdentify
1.1 discrepancies can be discussed 
organisational goals &  Future
1.1 development
Identify opportunities 
organisational goals &  Crucial
1.1 thatorganisational
Identify appropriate language
goals & & 
their perspective about growt/ 
key objectives to proposekeysolutions and changes.
objectives is discussed, as well as bonuses
key objectives behavior
keyare used in process.
objectives
progress
 Rewarding

1. Reward & Recognition

Organisations 
Employees also consider 
pose personal  rewards and raises as their 
dilemmas to  right without even 
contribtuing significantly to 
employees in a 
the company.
way to reduce 
their costs.
failure

Performance Improvement 
Talent Management/Contract 
Plan (PIP)
Department- level goals Department- level goals Incentive management
Department- level goals
Renewal
Non Performing employees

Determine acceptable performance and create a relative benchmark by 

collaborating with employee
Stock options
Pay raises
Determine the reason for performance issues Spot awards
Project bonuses
Recognition
Define what support the employee will receive - what ways can best 
Free vacations
help the employee
Days off
Working from home
schedule for check-ins for feedback - need not be deadline-oriented Gain sharing
Off-site team activities
Employee Development
state the consequences of lack of improvement - give focus on 
improvement than punishment
Appraisal Process
Rewarding
Information is utilized by HR for 
organizational purposes, such as 
1.1 Identify organisational goals & 
reporting, promotions, bonuses or  
key objectives
succession planning.