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Performance Management SystemPerformance Management System&&

Creative Compensation StructureCreative Compensation Structure

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Purpose of PMS Purpose of PMS

To get better results for the organisation

To establish a improved work culture in theorganisation

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PMS Consist of PMS Consist of

Work plan

Corrective action plan

Individual development plan

Performance appraisal Performance documentation

Performance pay

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Performance Management FrameworkPerformance Management Framework

Performance Review

Corporate Strategies Business Plan Business Role

Performance AgreementObjective

Competencies Plans

Managing Performance throughout the Year

Feedback

Performance Rating

Performance Related Pay

Personal Development

Assessment Centre

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Cycle of Performance reviewCycle of Performance review

Communicate

ObserveEvaluate

Set GoalsSet Goals

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WhyWhy Measure Performance ?Performance ?

BecauseBecause

What you cannot measure you cannot improve.

Ifyou cannot improve you cannot grow. Measurement helps in objectively differentiating between

performers and non performers.

Pay for performance is possible only through

metrics.

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KEY RESULT AREA (KRA)

KRA is defined..

Process of measuring KRA is Appraisal.

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CreatingCreating SMARTSMART GoalsGoals

S pecific / StretchS pecific / Stretch

M easurableM easurable A greeable A greeable

R elevantR elevant T ime T ime--boundbound

Performance Objectives

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Who Will appraise

Appraisal by boss(es) or superior(s)

Appraisal by superior(s) and self

Appraisal by boss(es), self and one or two internal people

360 degrees performance appraisal

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PMS helps to decide

Training and Development

Career and Succession Planning

Rewards and Recognition

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FEEDBACK

Suggested feedback

Constructive praising

Constructive criticism

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Performance Improvement Plan

Coach & Mentor individuals to help them raisetheir performance

Identify and nurture talent in their area

Employ appropriate retention strategies Provide necessary training (Technical, Human &Conceptual)

Evaluate the effectiveness of learning

Formalise feedback with HR

Job Rotation

Job Enlargement:

Job Enrichment

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Salary

Compensation Strategies

Direct Compensation

Compensation System

Indirect Compensation

ProtectionProgrammes

Medical insurance

Life insurance

Disability income

Pension

Social security

Pay fortime notworked

Vacations

Holidays

SL

Services &perquisites

RecreationalFacilities

Car

Financial planning

Low cost or free

meals

Incentive pay

Bonus

Commission

Piece rate

Profit sharing

Stock option ESOP

Shift Differential

Differedpay

SavingsPlan

StockPurchase

Annuity

Merit

Pay

Base

Pay

Wages

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Final Thought

The conventional definition of management is getting

work done through people, but real management isdeveloping people through work

- Agha Hasan Abedi

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THANKYOU