Trends in PMS

Presented By

Vandana
Presentation outline
 Introduction to PMS
 Trends in PMS
 Case studies
 Conclusion
 Recent research reveals that the majority of organizations are
utilizing performance management systems / performance
management software and many are in the process of
revamping their first generation systems.
 It is likely the majority of employees equate "performance
management" to their performance appraisal form and yearly
discussion with their manager about "how they are doing in
their job." But things are changing in this area of HR.

 Let’s find out

Introduction to PMS
 Performance refers to “outcomes, results or
accomplishments”
Rothwell, 2005
 Performance Management - A Definition
 According to SHRM (the Society for Human Resource
Management), "performance management is the organized
method of monitoring results of work activities, collecting
and evaluating performance to determine achievement of
goals, and using performance information to make
decisions, allocate resources and communicate whether
objectives are met."
Examples of Traditional
PMS
 A manager performs the appraisal annually, based on individual productivity
stats
 The appraiser fills out a form which states the employee’s productivity and
some subjective comments about behavior
 The appraisal’s main purpose is to determine raises and promotions
Performance Management - Current
Trends are as follow

Strategic HR - The Link Between Employee Performance Management and

Organizational Performance

Increasingly companies are focusing on "strategic HR," aligning human resources

initiatives with the overall goals of the organization to improve business success.
Aligning Employee Performance Management (EPM) with Corporate Performance
Management (CPM) has the following effects

Increased Integration of HR Functions

Research shows there is a clear movement to integrate the traditional siloed HR

functions into a more holistic, strategic approach to human capital management.
Some integration opportunities include:
1. Aligning employee goals with corporate goals (as described above)

2. Linking reward and recognition programs to performance

3. Targeting learning and development toward performance gaps
4. Identifying skills and competencies of top performers for retention and succession
planning
Trends Cont…..
 Increased Automation of Performance Management and
HR Functions

 Integrating traditional HR functions, has given rise to an

increased need to automate them. Connecting the functions at
their integration points into clean, close-looped systems
eliminating duplication of data and streamlining reporting
processes is the charge for many organizations.
Trends Cont…..
 Online performance management systems
59% of HR executives identify improvement of HCM (Human Capital
Management) technology as a key response to their business challenges.
Main areas of focus:
 hiring management solutions
 pre-employment assessment
 employee self-service
 performance management

 Strategic Performance Appraisal

 What is it?
What is Strategic Performance Appraisal
and Why Does it Matter?

 Strategic Performance Appraisal-

employees evaluated by individual
goals that are linked to overall
organizational goals and objectives
 Part of the performance management
system, which organizes, facilitates
and assesses employee contribution
to overall company success
A ‘Performance’ Example
Examples of Strategic
Performance Appraisal
 An organization’s core values include
continuous improvement of customer
service. A goal is set during the PA
process that involves reducing customer
service complaints by 15% in the coming
year. This is linked to organizational
values and is measurable.
Examples of Strategic
Performance Appraisal (cont.)
 The manager establishes bi-monthly
feedback sessions, where employees
and managers have a brief one-on-
one conversation regarding current
performance goals and standards
related to the status of the
organization at that specific point in
time.
 References
Book
Perfomance management trends by S.S
Jha
Retrieved on 12.04.11
http://www.insala.com/Articles/perform
ance-management-
software/performance-management-
current-trends.asp