HR & CM   >>  Performance Management  
     
 

In ECS, our assumption is that the success of any Performance Management System depends upon its linkage with the values, vision, mission and the strategic objective of the organization. The key processes for designing and implementing an effective performance management system are

 
     
 
Integrated system of performance measures:
 
     
 
There exist three levels of goals in an organisation i.e. organisational, team and individual; based upon which the measures could be determined. Further at each level there exist goals having different dimensions. Developing an integrated set of measures ensures alignment of organisational goals, team goals and individual goals. At the organisational level there could be differentiated goals depending on what the organisation values most. The first dimension is the people dimension wherein the employees are the most essential part of an organisation. For an organisation having the people value the ESS and the skill level could be used as a measure. The organisation having the customer dimension gives paramount importance to the customer. Such an organisation would most appropriately measure it’s CSS and Market leadership. The third goal at the organisational level could be of the share holder value. Such an organisation has the shareholder dimension. It constantly strives for increased profits, share prices and growth.
 
     
 
The second level in this framework is that of the team level. At the team level to there could be differentiated goals for the various departments such as marketing, product development, purchase and manufacturing departments. All four of them would then have different measures on the basis of which they could be assessed.
 
     
 
The third level is that of the individual. The measures adopted here are based on key result areas, competencies and values
 
     
 
For the organisation to have satisfied employees and sustained growth it must ensure that the three levels are in sync with each other. The integration of atleast two of the above levels would be ideal with the individual level being an essential part of any of the combinations. At ECS we believe that the individual at the very basic level is also the most intrinsic part of an organisation and thus until the goals at the individual level are not integrates with those at the organisational level the measure that would be adopted would never be ideal.
 
     
  Process Deployment of business goals at the individual level:  
     
 
The process of deployment of business goals at the individual level is implemented through the Policy Deployment Matrix. The Policy Deployment Matrix is concerned with the conversion of the overall business strategy into small fragments such that the plans get converted into sub plans. The sub plans are then assigned to each specific department which is concerned with it’s implementation and then the tasks are further assigned to the concerned individuals. Thus the entire process of implementing the Policy Deployment Matrix moves from the strategic objectives to the annual business plans and finally to initiatives or key tasks to be performed by the various departments.
 
     
  Implementing Rigorous Tracking Processes:  
     
 
The third step in designing and implementing an effective PMS system is that of implementing rigorous tracking processes. ECS follows the model given by Dr. Sveiby’s for tracking. According to the model given by him there are three categories on the basis of which the entire system is categorised. These three categories are – Customers, Internal structures and Human Resources. These three are then further assessed on the basis of the growth/renewal, efficiency and stability.
 
     
 
What is unique about us?
 
     
 
Linking Performance management with the Business goals. Working all along with the client core team, who constantly add value in critiquing and giving feedback on the process, thus generating a momentum of change in the organization. Using benchmarks from across industries to incorporate best practices. Seeing the performance management system as one that questions, in a constructive manner, the existing paradigms, mindsets and the ways of working within the organization
 
     
 
Key Benefits and Deliverables:
 
     
 
The Performance management system can be used as a powerful transformational tool if it focuses on identifying, measuring and rewarding the right kind of competencies and designing the right processes to achieve the business vision (values) and mission (strategy). The performance management system process followed is in sync with other key HR processes such as compensation, promotion, competence development and thus is very effective. We believe that the ownership and efficacy of the PMS system is significantly enhanced when employees themselves participate in its design which results from the above process as there is active participation from the employees at each level. Further, skills building for the appraisal process are imparted in a phased manner, nearer to the actual event to enable maximum transfer of learning to the job. There is reinforcement of the right mindsets, styles and skills required for creating a high performing organisation through a participative process that involves employees in identifying issues, designing the new system and developing effective appraisal skills.
 
     
 
Objective system for assessment of performance - based on a clear understanding of tasks, competencies and values required along with explicit measures of performance/ standards is developed. Clear linkage between organisation and individual goals and measures of performance. It is a process that encourages self- monitoring, coaching and feedback to appraisees so as to enhance overall performance. Systematic skill development for both appraisers and appraisees is done in a phased manner. That is, goal setting, coaching, counseling, self-appraisal, review and feedback.
 
     
  Designing Performance Appraisal  
     
 
People as well as the organisation that they work in have the capacity to go either towards success or towards stagnation. The design that is adopted in the system at each level can significantly influence which way they go and how far. Designing a measurement process for a firm would require defining the measures, which would be required to be adopted for the accomplishment of the goals to be achieved. Essentially it means that the system in an organisation should be integrated so as to be in sync with the strategic vision of the organisation. Thus, developing an integrated set of measures would ensure alignment of organisational goals, team goals and individual goals.
 
     
  Innovating Reward & Recognition  
     
 
Rewards and recognition integrate total pay with a compelling future, individual growth, and a positive workplace to create a win-win partnership between the company and its employees that enhances effectiveness and advances overall business objectives. Organisations need competent individuals who in return for their commitment expect certain extrinsic and intrinsic rewards. These rewards and recognition are based on philosophies and strategies and contain arrangements in the shape of policies, practices, structures and procedures which are designed and managed to provide and maintain pay, benefits and other forms of reward.
 
     
  Reward and recognition is not always monetary. It is also concerned with non-monetary rewards, which provide intrinsic or extrinsic motivation. Intrinsic motivation is achieved by satisfying individual needs for achievement, responsibility, challenge, influence in decision making, personal growth, meaningful contribution, etc. Extrinsic non-monetary motivation is achieved by recognition, skill development, learning and career opportunities while extrinsic financial motivation is achieved through salary, fringe benefits, and perquisites, bonuses or stock options.
 
     
 
Performance Feedback & Counselling - Objective
 
     
 
The traditional practice of appraisal usually causes deep dissatisfaction rather than motivating employees. Providing feedback on performance is a sensitive issue that most managers try to avoid. Helping employees to realise their areas of improvement requires interpersonal skills of high order. This workshop aims to develop such skills in the participants
 
   
 
 
HOME
ABOUT ECS
VALUE PROPOSITION
INDUSTRIES
CAREERS
CONTACT US
   
FEEDBACK
 


 
Maximizing shareholders value through Centralized Procurement
 
Browse previous issues
 
 
Home   |   About ECS    |   Value Proposition   |    Case Studies    |   Spotlight   |   Contact Us
© All rights reserved under copyright act 2005