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Building a mature performance management system – Part 1

Performance management system

Building a mature Performance Management System.. Part 1

Govind Singh Negi – HR Head, Paharpur Business Centre and Software Technology Incubator Park.

One of the major challenges for HR professionals is to ensure a mature performance management system in their organizations. Every CEO expects that its HR should be able to set up a good evaluation system and help in increasing organization productivity.

Question is what does a mature performance management system mean? 

If we are able to identify good, average and not good  performers correctly (not on the basis of gut feeling but on the basis of some facts and figures) then it is an indication of a mature performance management system. Sounds easy and simple but it is not that effortless at all.

Before we go ahead and talk about how can we achieve a mature performance management system, let’s spend some time understanding what could be possible benefits of having it in place.

Appreciating and Rewarding good performers

Organizations are willing to spend money and reward people who are performing good but such initiative can be a failure if you are not sure whether the person, you are rewarding is a good performer or favorite of his manager. A mature performance management system helps an organization to identify good performers so that money spent in rewarding such people do not go waste. We will discuss what can be done to reward such performers in the forthcoming blogs..

Taking action to improve employees not performing well or else..

No organization, wants poor performers in their team but the question is, how do we know who is actually a poor performer? The Performance management system should help us find such employees and improve them if possible. If improvement is not possible after all possible efforts from the organization then HR should help them find alternative roles inside or outside the organization. We will discuss about this in the forthcoming blogs.

Deriving department performance and organization performance from individual performance..

Performance management should not limit itself to measuring employee performance. It should also tell us about how a particular department or business unit is performing. We will discuss this in detail in the forthcoming blogs.

Enhance employee morale and motivation

A mature performance management system should always build trust among employees. HR needs to play a very important role in making this happen. Every employee should appreciate and be aware of what they need to do (KRA), which KRA is more important than other (weightage of each KRA), how their work will be evaluated (KPI) and logic behind their performance measurement.

With the above benefits in mind let’s start understanding how can we build one such performance management system.

About the Author

Govind Negi is the head of HR at Paharpur business centre & Software Technology incubator park. He has over 10 years of experience in various facets of HR. He did his Masters at Symbiosis Institute of Management Studies.

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