PERFORMANCE

MANAGEMENT SYSTEM
MODULE CODE;HRM629
BY EVA LESHANGE
Definition of the terms
 Performance; The accomplishment of a given task
measured against preset standards. Also performance is
deemed to be the fulfillment of an obligation.
 Performance management; is a systematic process of

improving organizational performance by improving

performance of individual and teams.
Definition of the term..cont
 Performance management system; it is an
organizational-wide management program that provide
a structured approach to;
 Communicate business strategy
 Establish shared understanding of what is to be

achieved and how is to be achieved.

 Measure and motivate performance.
Why measure performance
 Because;
 Measurement help in objectively differentiating
between performer and non performer.
 Also people say’ what you cannot measure you cannot

improve.
 Pay for performance is possible.
 If you cannot improve you can not grow

So measurering of performance is very important.

The objective of performance management
system
 To check the efficient and effectiveness of
individual,team,and organization.
 To effect promotion based on competence and

performance.
 To access the training and development of employee

need in the organization.

 To decide upon the pay rise among employee.
 To determine if hr programs are effective or not
Performance management system includes
the following
 Work plan; A document that describe work to be
completed by an employee within the performance
cycle, the performance expected and how the
performance will be measured.
 Corrective action plan; is short term action plan that

initiated when an employee performance fail to meet

expectation. Its purpose is to achieve improvement in
performance.
Performance management system
includes..cont
 Individual development plan; an action plan for
enhancing employees level of performance in order to
excel in current job(perform better).
 Performance appraisal; a confidential document that

include employees performance expectation, summary

of employee actual performance relative to those
expectation, an overall rating of employee performance
and the supervisor and employee signature.
Component of performance management
system
 Performance standards; these are objective target or
goal that organizational want to achieve. Should be
communicated to employees
 Performance measures; refers to quantifiable
indicator used to asses how well organization or
business achieve its objective or not. Here data system
is developed for collection of data about performance.
Component of PMS..cont
 Reporting progress; involve analyzing of data and
documented well so as to provide feedback to manager
and employees should be provided regularly.
 Quality improvement of the process; involve

establishment of program or process to manage change

and achieve quality improvement
 DIAGRAM

Performance
measure

Reporting
PMS
Performanc progress
e standards

Quality
improvement