pms (by- rads & vibs )

8/7/2019 PMS (By- Rads & Vibs )

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By B.Radhika (6)Vibha.G (53 )

Performance Management System A Strategic Tool for Competitive Advantage


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PMS Need of the Hour

y The concept of managing resources in a professionally-

managed organization has changed over the last 2

decades.


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Earlier Now

Managers were suppose to

manage 5 Ms in their day-

to-day functioning.

Technological revolutions :

Emergence of WWW, LPG

Managers were not muchconcerned with any

particular M & used to

devote equal concentration

and effort towards all theMs.

Man has became Central toall other Ms .


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y Never in the history employees dreamt of becoming

partners in the organization, of getting a share of the

profit apart from the regular salaries.

y The perks include ESOP,36o degree feedback, appraisal,

hikes every quarter, bonus etc.


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y These developments in the HRM landscape are

indicative enough to understand the significance of

manpower in a modern-day professional outfit.

y The concept of treating employees as internal customers

& end-user as external customer has led to organizations

relying completely on their employees to create that

strategic difference in the competitive marketplace.


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y Employee poaching was not as prevalent as it today.

y Attraction and retention have become more challenging

for the HR managers.


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Role and Relevance of PMS

HR

Procurement

Marketing

Finance

Systems

R & D

erations

Administration

Su ort &Service


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y Performance of an employee in a modern-day

organization is not only dependent on his individual

brilliance but is also indirectly related to many of his

peers, subordinates & superiors across departments,

which makes a transparent & organized PMS even more

important.


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y A thorough job analysis is a pre-requisite so as to frame

KRA which require an active participation and co-

ordination amongst HR managers with other functional

departments.

y Thus, it makes the PMS even more important so as to

keep the employees motivated and consumer-oriented at

every point of time.


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Organizations consider PMS as a Hush-HushAffair

y Many SME are much concerned about the welfare of their

employees as they realize it is only through their employees

that they can create an edge over their much bigger rivals

and therefore pay extra attention in putting in place an

efficient and effective PMS.

y On the contrary, organizations lacking a proper PMS treat

PMS as a hush-hush affair , they are reluctant to share the

profits with the employees, divulge details.


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y Today, even the family-owned organizations prefer to

hire professional managers to change the overall culture

and revamp their strategic issues so as to attract and

retain talent.


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Building Performance Culture

y Modern-day organizations has inculcated the culture of

Healthy competition amongst the peer members to bring

the best out of any individual & to have a rubbing effect

on the others.

y Even monetary and non-monetary motivators are

finalized keeping in mind the need to build up a culture

of performance.


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y The approach of acknowledgement and appreciation

fosters a culture of performance.


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y Companies have also shifted their approaches from

individual incentives to that of group which is rewarded

for performances and not an individual.

y This further has a spill-over effect not only on the group

of subordinates but also drives the superiors, as their

perks, promotions are directly proportional to the

performance of their subordinates.


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y Personal interaction and feedback on the satisfaction

level of the employees, handling employee grievances

with an open mind, helps in cultivating an environment

of performance, commitment & devotion.


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Performance Management and its Role

in Reward System

y Performance management plays a very important role in

employee motivation, which has a direct bearing on

employee performance and employee retention.

y There are companies which encourage individual

employee to go for self-appraisal.


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y The objective is to make the employee understand

his/her own contribution in the organizational trajectory.

y It also enables an employee to speak out openly about

his/her personal weakness, need for training along with

the TNA which enables the HR manager to identify the

growth potential of each and every employee.


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y Companies like IT,ITes etc allocate points to each and

every task carried out by the employee in a quarter.

y At the end of the quarter, these points can be redeemed,

thereby making the process fair,and easy to elucidate.


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y Organizations have even gone to the extent where the

comments put forth by their superiors in their appraisal

form are being displayed to the individual employees to

reduce the doubt and increase the confidence in the

PMS.


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PMS- A Strategic Tool

y It is an accepted fact that PMS is a strategic tool for any

contemporary organization.

y Human being the core to an organization are considered

to be the key factors which provide an organization with

the much-needed strategic advantage in the

marketplace.


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y What differentiates an average employer from a better

one is mainly employee concern, which hinges on the

state of the PMS, which can provide the minutest of

details at any point in time.

y One size fits all approach is a strict no-no as far as

PMS is concerned.


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y Customization as per the corporate policy, employee

need and expectations is the key parameter to finalize a

PMS.


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Conclusion

y PMS is crucial to the functioning of any organization.

y PMS should be simple, transparent and periodically

done.


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pms (by- rads & vibs )

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