Rangamati Science & Technology

University
Assignment On
Performance Management Systems
Course Name: Performance Management
Course Code: MGT-507

SUBMITTED TO
Asifa Nargis
Lecturer
Department of Management
Rangamati Science & Technology University

SUBMITTED BY:
Youth Entrepreneurs
Name Reg. No Roll
Firoz Ahammad Bhuiyan 2018-21-31 31
Hasanul Karim 2018-21-01 01
Soaibul Islam 2018-21-24 24
Rubel Mia 2018-21-25 25
MD. Moin Uddin 2018-21-17 17
MD. Jahirul Islam 2018-21-36 36

Submission Date: 12th September, 2021

Introduction
Every organizations needs a well-defined and well-established system of business measurement,
comprehensible at all levels of the organization. To ensure effective management, every
organizations must plan and develop its business and integrate all its elements into one systems.
Performance Management Systems that enables realizations of the organizations strategy, where
its business is being managed through the planned objectives of individual’s employees or work
units as well as ensuring their required competence.

Definition of Performance Management

Performance management is essentially about planning, measuring, monitoring, and enhancing
the performance of employees, as a contributor to the overall organizational performance.

Definition of Performance Management System

Performance management system refers to the set of organizational, managerial, team, and
individual metrics used to attain the aims and objectives of performance management.
The elements of PMS are given below-
Organizational Objectives and Strategy: Performance management system is a process of
linking an employee’s jobs objectives to the organization objectives and strategy. It involves
sharing of strategies and operational plans with the employee.

Assessment of Organizational Performance Needs: Assessment of performance needs is

essential so as to attain organizational objectives. It involves-
 Identifying competencies necessary for achieving organization objective and strategy.
 Gathering information about critical issues.
 Determining new and future performance needs.
 Prioritizing organizational improvement measures.
 Recognizing core organizational values.

Setting Organizational Performance Expectation: After assessment of the performance needs

of the organization, the next step is to set performance expectations for manger and employees to
attain organization objectives and strategy. It involves-
 Determining required vs desired performance.
 Determining current performance status.
 Understanding, aligning, and agreeing in performance expectation.
  Formulating key personal indicators.
 Evolving job objectives.
 Aligning individual’s goals with organization strategy.

Establishing Performance Management Process: Designing of a framework of performance

management. It involves following step-
 Performance planning
 Performance managing
 Performance appraisals
 Performance monitoring

Measuring Effectiveness of Performance Management: Measuring effectiveness of

performance management involves-
 Identifying opportunities for performance development.
 Providing performance counselling including 360 feedback.
 Devising reward strategy and administrating reward system.
 Instituting performance management audit.
 Improvement in competitive position of the organization.
  Organizations Ultimate goals
 Organizations competitive position
Organization  Comparing organizations strength with changing environment
Objectives and  Examining organization’s critical issues
Strategy  Analizing organizations opportunities
 Exploring best approaches in a view of organizational
resources and competencies

 Identifying competencies necessary for achieving organization objective and

strategy
Assessment of
 Gathering information about critical issues
Organizational  Determining new and future performance needs
Performance Needs  Prioritizing organizational improvement measures
 Recognizing core organizational values

 Determining required vs desired performance

Setting  Determining current performance status
Organizational  Understanding, aligning, and agreeing in performance expectation
Performance  Formulating key personal indicators
Expectation  Evolving job objectives
 Aligning individuals goals with organization strategy

 Designing a framework of performance management encompassing

Establishing  Performance planning
 Performance managing
Performance
 Performance appraisals
Management Process  Performance monitoring

 Identifying opportunities for performance development

Measuring  Providing performance counselling including 360 feedback
Effectiveness of  Devising reward strategy and administrating reward system
Performance  Instituting performance management audit
Management  Improvement in competitive position of the organization.

Figure- Generic conceptual model of performance management systems

Objectives of Performance Management System
The major. Objectives of PMS are enlisted below:
 To leverage performance of organizations, given that goals are complex.
 To create role clarity and clarify performance objectives and measure at individual, team,
and organizational level.
 To promote high-performance work culture in the organization.
 To encourage teamwork, a sense of belonging, and ownership.
 To develop employees by systematically identifying training and development needs.
 To foster a positive relationship between managers and employees through a two-way
communication process.
 To bring out the hidden potential and capabilities of employees.
 To focus more on process rather than on format.
 Initiating, developing, and implementing a follow-up action for developing performance
of employees.
 To recognize, reward, and compensate employees for achievement of performance
objectives successfully in a more objective, transparent, and equitable way.

Functions of Performance Management System

Depending on the organizational context, the organizational culture, and managerial intentions,
PMSs can fulfil different functions. There are however five main functions, which all
performance management systems should address:
1. Assessing, managing, and improving performance on all relevant factors Financial and
non-financial that drive profitability.
2. Strategy formulation and clarification to all employees and managers.
3. Enhancing strategic dialogue with employees.
4. Improving decision making and prioritizing performance concerns.
5. Stimulating motivation of all employees.

Characteristics of Effective Performance Management System

In order to improve corporate performance, many organizations waste money for developing
employees by imparting training without making a reference to either their potential or
performance level. Heavy investments will yield no benefits to organizations if they do not focus
on the talents and capabilities of employees through an institutionalized and effective PMS.
An effective PMS should be designed to ensure the following:
 1. Recruiting and promoting employees into roles that fit their talents.
2. Creating a supportive work environment where all employees are periodically
interviewed regarding their career progress to assist them in developing to the fullest.
3. A systematic measure of an employee’s overall value to the organization is recorded.
4. Essential information concerning the strengths and weaknesses of all employees in
relation. To career development including potential for advancement and suitability for
other positions and training is recorded.
5. Employees have been involved in the setting of goals.
6. In the event of disciplinary proceedings, there is a record of the employee performance
that will give an indication of the employee's antecedents performance-Information of
this nature may be kept in a separate system.
7. There is a clear linkage between performance and remuneration.
8. Freeing teams to develop their own workflows.

Developing Performance Management System

The following factors are required while developing performance management system:
 Determining organization mission statement and objectives.
 Enhancing communication with in organization.
 Clarifying individual’s responsibilities and accountability lines.
 Defining and measuring individual’s performance.
 Implement appropriate reward strategies.
 Developing employees to improve performance and progression in future.

Condition for Institutionalization of PMS

Following are the condition that required for successful Institutionalization of PMS:
 Professional relational between managers and employees.
 Highly motivated employees receiving valuable reward.
 Highly competent HR professional with positive attitudes as facilitators and
implementers.
 Supportive top management.
 Successful employee integration.
 Organized attempts to learn from past experiences and challenges.
 Strong organizational culture with focus on mentoring, counselling, and ethics.
 Highly competent employees with emphasis on self-learning, development, and team
spirit.
Performance Management System Checklist for Manager

Do you have written performance standards for the employees? Yes/No

Have yon communicated the performance standards to the employees? Yes/No

Are the standards clear and reasonable? Yes/No

Has HR representative reviewed the standards for any possible problems? Yes/No

Have you told the employee what critical elements he is failing in? Yes/No

Have you counselled the employee on how to improve to an acceptable level? Yes/No

Have you fully assessed and utilized all available resources to help the employee Yes/No
improve?
Have you explained and offered them to the employee? Yes/No

Have you sought employee input regarding what is needed to improve? Yes/No

Have interim review periods been established to measure the employee's Yes/No
improvement?
Have you advised the employee what he has to do to improve performance and Yes/No
retain the job?
Have you provided all the agreed assistance including training to the employee? Yes/No

Did you consider any requests for accommodation? Yes/No

Have you taken into account annual, sick, or other leave taken during the review Yes/No
period?
Did you document the employee's performance, your efforts to assist, the Yes/No
employee’s actions and contributions to the improvement plan, etc.?
Do you have copies of any notes of counselling and/or assistance to the Yes/No
employer?
Do you have copies of memoranda of counselling provided to the employee Yes/No
Has there been due process prior to the administration of any discipline?
Do you have a just cause to administer progressive discipline and/or use the Yes/No
alternate discipline process, and the document to demonstrate the just cause
Electronic Performance Management System
E-performance management is essentially a PMS in the form of an online software package with
multiple application modules that is fully integrated with the organizational metrics. It provides
greater flexibility, tracking, access of performance management to large number of employees
and managers across the organization, across the world.
E-performance management templates provides the following features:
 Job- or individual-centered performance contracts.
 Uploading of performance criteria.
 Secure online appraisal with password.
 Automatic e-mail notification of completed appraisal to employee and manager.
 Workflow system to monitor appraisal progress.
 Archive retrieval possible for retrieval of previous period appraisals.
 Assigning different weighting protocols.
 Viewing competency ratings.
 Viewing compensation details.
 Career advancement and opportunities available.