Performance management system is the systematic approach to measure the to measure the performance of the employee and helps managers in analyzing and enhancing employee overall performance. These systems are often based on company and job specific accomplishment which need to be obtained for successful job performance.
They following given below are the steps for employee performance management they are
- Business Role
- Performance Planning
- Performance Development
- Performance Measurement
Business Role means set expectations and explain with the job description to the person and the job skill knowledge required for that particular role. In simple work Explaining and Setting expectations.
Once the expectation has setting has been done now the manager has to see how to achieve set standards how do we actually achieve exception or the expect by the other like for example when a new team enters a team the manager tells him how he has to work in a team in a efficient and what are the thing he / she needs to achieve this the first step in performance planning and planning about performance planning how to achieve what they are expecting to achieve out of the employee in the company.
In this we talk about the things like individual development plan is nothing but it is detailed plan of the how an individual person achieve will get succeeded in personal as well as professional way in simple terms Working towards Individual development plans and organizational goals
Performance Measurement so we know that what are deviation that are happening the performance of the employee so one is excepted and the other thing is what is delivered the difference between this two is actually calculated by evaluating the performance.
- To improve the company profit margin
- To guide personnel along a suitable career path
- To furnish staff with valuable progressive feedback
- To ensure staff attains their SMART goals
- To ensure employee goals relate to and advance organizational objectives
There are totally seven types of Employee Performance Management System
- General appraisal
- Technological performance appraisal
- Manager performance appraisal
- Project evaluation review
- Employee self assessment
- Sales performance
- 360 degree appraisal
General appraisal means it is an constant interaction between manager and the employee all the year at the end of every year there will be a meeting conducted if the pre set goal of the company has been achieved and the manger provide the feedback and they start to set goal for the coming year. A regular review of an employee’s job performance, employee’s skills, achievement, growth, and overall contribution to a company.
Technological performance appraisal
Technological performance appraisal is actually measuring or evaluating specifically the technical ability of the employee when it comes to evaluating technical skill set then we use technological performance appraisal system basically it is very useful for technical for evaluating technical skill but it is not at useful when it comes to soft skill it can be said that it cannot be uniformly applied in the entire organization so that may be that can the problem in technological performance appraisal.
Manager performance appraisal
The manager gets feedback directly from the teammates, which is good in a way, but on the other hand, it is also possible that the team member may not feel comfortable. In this method, the focus is only on evaluating the managerial side of a person.
If a person is acting in the flexibility of a manager in a company, because this kind of performance appraisal system helps in evaluating the managerial skills and people management of the employee The manager-employee relationship makes it possible for feedback to be issued in a dishonest way.
Project evaluation review
This kind of evaluation is done when each project comes to an end because this it happens is that it is done after each project ends so because which there are very less chances of deviation from what is expected in this there’s a regular feedback mechanism is developed in the company And there is a essay identification of any deviation of work but there is no single manager in the sense that every project is being owned different manager so the different manager is giving review or reviewing the performance of every set of project for a employee differently so it becomes very different and very difficult for each manager to collaborate and then passing the feedback from one place to another that becomes very difficult in the project evaluation review
Employee self assessment
Employee self assessment in this method the employee are given a chance inspect their own performance and assess their own strength and weakness Because this self assessment the employee feel empowered and he / she understand they mistake an the employee feel valued during review discussion At sometimes the employee might get over emphasizes their contribution and the employee might get get downplay their success.
Company use this method where their sales target are compared with the actual performance this type of performance management system less subjective as it is more data driven on so it is basically based on out of the number whatever sales targets were asked to achieve .
360 degree appraisal
In 360 degree appraisal method they provide each employee a chance to receive the performance feedback from the manager, customer, co workers Because of this method there will a increase in self awareness and develop the employee skill and it motivates the employee But there will be dishonest feedback also be given by the other employee and there will be a lack of trust in the leader.
How to choose Employee Performance Management System
Choosing the right Performance Management System majorly depends upon the nature of the organization. For eg For a manufacturing company which has blue collar employees, the performance will depend upon productivity. But for them project evaluation review can do but for a company which is set by sales targets, then we should go with Sales Performance Appraisal system.