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Pretty Bhalla, Lovely Professional University Unit 2: Performance Management System

Unit 2: Performance Management System Notes

CONTENTS

Objectives
Introduction
2.1 Objectives of Performance System
2.2 Functions of Performance Management System
2.3 Characteristics of Effective PMS

2.4 Competency-based PMS
2.5 Electronic Performance Management
2.6 Summary
2.7 Keywords

2.8 Self Assessment
2.9 Review Questions
2.10 Further Readings

Objectives

After studying this unit, you will be able to:
State the objectives and functions of performance management system

Explain the characteristics of effective PMS

Define competency-based PMS
Discuss electronic performance management system

Introduction

Performance management system is another way of envisioning the totality of a manager’s
function. It views the managerial function holistically – not a random collection of activities that
most managers recognize and undertake as their core function. It provides a systemic dimension
to the managerial activities – highlighting their mutual interrelatedness and interdependence. It
emphasizes the dynamic, sequential and cyclical nature of these activities, essential to actualize
their potential synergistic impact, which is the source of high performance and excellence. By
implication, it also explains why focusing on only one or a few of these activities doesn’t deliver
the results wished-for.
Any system needs certain prerequisites to function smoothly. So does PMS. PMS becomes easier
to do and more productive to the extent that:

1. It is used holistically, as a system
2. The relevant subsystems are in place and accepted
3. The organization’s philosophy and human environment is conducive to high morale
4. The manager is oriented to, and equipped with, high performing attitudes and leadership
skills.

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