Performance Management Systems are one of the most quintessential processes of communication in an organization in order to achieve the goals and targets set by the leadership of the organization. In precise words, it is a framework that provides the company with a roadmap to create a program that can help one in achieving a continual and sustainable development through the fiscal year.
Performance Management System (PMS) plays a very vital role in creating a more optimized development program. Even Indian Prime Minister, Narendra Modi has been talking about its vitality and has recently asked the leadership of Central Public Sector Enterprises (CPSE) to develop a framework to promote and encourage development activities in around 100 cities across the nation.
The primary aim of Performance Management Systems is to make efficient use of employees’ skills and resources to achieve the set goals, targets and objectives. Characteristics of a good Performance Management System are as follows:
- A well-planned concept and standardized guidelines for the employees about their collective contribution towards the company’s objectives and goals.
- A good PMS elucidates development plans that include personal development and takes in the account already set objectives linked to company’s strategies and work plan throughout the year.
- They also include training sessions and its guidelines as well as focuses on feedback mechanism of the company as well.
- A well-designed Performance Management System implicates itself over the course of time and does not limit itself to just one or two fiscal years. it is an ongoing process that motivates all the parties to indulge themselves in an active plan that focuses on achieving development.
- It also helps in making the employees realize their roles and responsibilities in helping the organization in achieving their targets.
- An important feature of Performance Management System is that it reduces the communication gap between the departments and help in establishing an effective communication system across the various department of the company.
- The leadership is well informed with the implementation of performance management system. It provides the managers with a detailed assessment of various topics and also provides a clear framework along with it.
- It focuses on information and data and helps the company in gathering that through meetings and discussions rather than promoting emotionally driven huddles with very little information to flow through.
- It works on a previously defined performance period and is flexible to the changing demands of the organization no matter the change be in objectives, demands or strategies.
Performance Management Systems are a proven schema of a step-by-step process to move constantly towards growth and development and achieve them in a defined period of time. They have various benefits. Some of them are mentioned below:
- It adds consistency to the work culture of the organization and helps the organization in providing genuine job feedbacks to the employees.
- Motivates the workforce to do better and add value to the organization through their work and also helps the organization in retaining the uplifted morale of the team members.
- Creating a whole plethora of learning lessons and training to keep the workforce updated and competitive with the evolving commercial world.
- It also saves leadership’s times and helps in avoiding conflicts and issues that might force them to pivot their focus from the objectives.
- Establishes an evaluation system to keep the managers updated about the strength and requirements about and in the workforce.
Team Faber has been helping organizations across industries and geographies to successfully design and implement performance management systems. We follow a holistic approach that has a hierarchy driven approach with weightage for company performance, departmental performance and individual performance. It provides timely feedback, there is an elimination of favoritism, transparency, team win over the individual win and includes evaluation by self and not by the boss. It is a two-way communication between employee and employer for a defined period of time with the objective to achieve organization goals.