May 22, 2010

A discussion on the dynamics of 'Performance Management System'

Recently during the SHRM India monthly meeting held in Chennai, we discussed certain issues pertaining to 'Performance Management System'. We were divided into approximately 5 groups consisting of 4 to 5 HR practitioners,academicians & students. We discussed within the groups and then synthesized some of the most important learning from the discussion.

After parallel brain storming sessions we made the following conclusion:

1. Some of the key expectations from a PMS today are Credibility, not merely differentiating performance but identifying top performers , infusing trust in all stakeholders through utmost transparency.

2. The major roadblocks in PMS are organizational politics, time, increased subjectivity to be evaluated, 'Forced' rating [bell curve debate], lack of ownership, lack of instant/proper feedback.

3. The initiatives to clear the road blocks would be ownership, constant/proper feedback, minimizing subjectivity to a certain extent, training to use the PMS in the right manner, proper execution of performance appraisal process.

A few other thoughts which the entire group at large felt passionately about were:

1. The possibility of co-creating tailor made PMS through inclusiveness of all associates in the organization.

2. The need to discuss the 'change issues' while shifting into a new PMS system.

3. The need to better understand and match the right form of PMS with the right organizational context.

The entire group present during the meeting intends to regularly deliberate on the PMS issues through e-mails in order to gain further objectivity till we again meet next month.

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