Page 21 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes 9. There are review mechanisms essentially to bring performance improvements

10. It is a system with deadlines, meetings, input, output and a format.
11. Process driven with emphasis on the format as an aid.
12. Linked to performance improvements and through them to other HR decisions as and
when necessary.

13. PMS is change in managerial style of doing work.
14. It creates and nurtures performing culture.
15. Framework of Performance Management.
In the organization with performance management systems, 85 percent had performance pay
and 76 percent rated performance. The emphasis was on objective –setting and review, which
as the authors of the report noted, ‘leaves something of a void when it comes to identifying
development needs on a longer-term basis. There is a danger with results orientated schemes
in focusing excessively on what is to be achieved and ignoring the how.’ It was noted that some
organizations were moving in the direction of competency analysis, but not very systematically.

Note Elements of an Effective Performance Management System

Clarity and People
culture Process Management
Capability

Effective Performance Measurement and
Motivation management reward

Learning Role of HR
organizational professionals

Source: Kathy Armstrong (2005)
2.4 Competency-based PMS

Performance management is a strategic and integrated approach for delivering sustained success
to organizations by improving the performance of those who work in them and by developing
the capabilities of teams and individual contributors. Development is perhaps the most
important function of performance management. Performance management is concerned with
outputs—the achievement of results; and with outcomes—the impact made on performance. But
it is also concerned with the processes required to achieve these results and the inputs in term
of capabilities (knowledge, skill and competence) expected from the teams and the individuals
involved).
Performance management is regarded as a number of inter-linked processes rather than a

single system. It was, therefore, common to find performance management carefully aligned
with communications strategies, competency development, job design and evaluation, payment
systems and motivation practices.

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