Page 41 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes 3. Setting Departmental and Individual Objectives: After setting the organisational goals and
objectives the departmental goals and objectives are defined. The departmental objectives

are further categorised into individual goals. The individual goals include the key duties
and responsibilities to achieve the final goals of the organisation.

4. Providing Regular Feedback: The next step in the process is providing regular feedback.
The supervisor should be maintaining a log of performance facts, which will ensure that
important issues are given the attention that is required and will help the formal review
proceed in a more focused and potentially more positive way. The employee should also
maintain a record of accomplishments and special achievements, or issues that need to be
resolved. Discussion of these things during scheduled or spontaneous feedback sessions
will allow resolution of problems in a timely manner.
5. Performance Review: Reviewing performance gives the supervisor and the employee the
opportunity to look at results that have been achieved in relation to the original plan and
standards of performance that were established. At this meeting, you should review all
performance records and assess each task, discussing whether they met the standards
of performance or not, and whether they exceed those standards. Review any outside
factors that may have had an effect on performance. At this time, the supervisor should
be identifying any areas where improvement may be necessary or performance could be
enhanced. The employee should also have the opportunity to discuss areas where they
could have used more help.

6. Action Planning: Another important aspect to completing this cycle is action planning.
This is where the supervisor and employee would plan for any training that needs to occur,
and could also be where you discuss career planning.

Task Make a discussion performance planning in Eicher Motors Ltd.

3.6 Barriers to Performance Planning

The barriers to performance planning can be categorised as follows:

1. Organisational Barriers: Most of the traditional organisations are not in the favour of
performance planning. According to these organisations spending time on performance
planning is just the wastage of time. These organisations believe that they have strong
implementation strategy.

Example: Indian companies tend to spend 30% time on planning and remaining
70% on implementation whereas MNCs usually spend 70% time on performance planning
and the remaining 30% time on strategy implementation.
2. Individual Barriers: Lack of commitment in organisation’s employees or management is
another important barrier to performance planning. Sometimes managers or employees or
both show less commitment towards the achievement of organisational goals. The reasons
could be personal, organisational, competitive or any other HR factor.

Example: Organisational politics, workplace bullying or high confl ict causes
employees to show less interest towards their job responsibilities.

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