Performance Management System

Performance Management System

Peformance Management System is a 360 degree process to enable an organization drive its performance & execution. It includes the three pillars of performance (Goals-What?, Leadership- How?, Learning & Development).


Topics in Performance Management System : -

Quarterly Feedback Cycle

It is important to periodically assess and provide feedback to the employee regarding his/her performance and whether he/she is off-course. This frequency is generally quarterly. The consistency is essential to maintain the impact of the entire Performance Management System.

Mid-Term Appraisal

Mid-term appraisal is the performance assessment done in the middle of the year to check whether the appraisee is going as per the planned performance schedule or not. This is an important interim checkpoint which can provide the appraisee an opportunity for course correction or a realistic revision in the targets.

Help-items from Manager/organization

As part of the assessment process in the Performance Management System, the appraiser can ask for support and list out help-items in the review and assessment sheet. This is a channel and an opportunity for the appraisee to ask for help which he/she requires in order to deliver on his/her goals.

Performance assessment responsibility of employee

The Performance Management System starts with the appraisee himself/herself. The appraisee assesses his/her own self first. Thus, he/she is an integral part of the assessment as well and it is his/her responsibility to start the process.

Year-End Ranking

Year end ranking is the final ranking which is awarded to the employee which is an assessment of his/her performance in the last performance cycle. This is the final normalized rating based on which increments and bonus are decided.

Combined Ranking on goals- competencies

Even though goals and leadership competencies are assessed and ranked separately, from an organizational perspective, the employee must be given one single rating as a measure of his/her overall performance during the last performance cycle.

Separate ranking on goals and competencies

Goals and Leadership competencies are separate sections in the Goal sheet. They are different expectations from the employee and hence must be assessed differently too. This is done by awarding separate rankings for goals and leadership competencies.

360 degree feedback

Feedback is essential not just from the reporting manager or his/her superior. It needs to be solicited and understood from all other stakeholders as well which can include direct reports, vendors, internal customers, business associates etc. This truly provides a 360 degree perspective to the appraisee about where he/she stands.

Focused Feedback on Goals

Goals form the major bulk of the expectations from the employee. Hence in the performance assessment process, it is paramount that the appraiser provides a focused feedback to the appraisee about this main deliverable of the appraisee.

Focused Feedback on competencies

The appraiser needs to spend a focused session with the appraisee discussing his/her level of development in leadership competencies. This is crucial to imbibe the importance of these competencies in the appraisee.

1-5 ranking (EE most/EE Some/ME/UE some/ UE most)

The rating scale on which the rankings are awarded in the Performance Management System ranges from 1 to 5. 5 stands for ‘Clearly Exceeds Expectations’ while 1 stands for Does Not Meet Expectations’.

Bell-Curve & Relative Ranking

Bell Curve and relative ranking refer to the process of normalization which is applied to the pool of final ratings as awarded by the appraisers (including level 2 managers). This is done to eliminate the skew which inevitably arises in this collation of all rank values due to the human bias.

Review & Update of Goal-Sheet

Periodic informal assessments can be made about the actual performance achieved and if the situation so warrants, and the appraiser so deems fit, the goals of the employee can be revised to be in alignment with the realistic capabilities of the employee. This can work for both negative as well as positive deviations.

Sharing Ranking/Post Ranking Session

Post ranking session is a meeting between the appraiser and the appraisee where the latter is informed of the final rating that he/she has received. This provides a vital discussion opportunity for both and also drives accountability & ownership in the appraiser.

Skip-Level Interaction

Skip Level meeting refers to face-to-face interaction between an employee and his/her level 2 manager. The immediate reporting manager is not present. This provides an opportunity to the level 2 manager to gain a vital insight into unaddressed issues and the reporting manager’s effectiveness.