Performance Management System

Performance Improvement Plan Introducing Performance Improvement Plan (PIP). The improvement of performance is a fundamental part of the continuous process of performance management. The aim should be the positive one of maximizing high performance, although this involves taking steps to deal with underperformance (Armstrong, 2006).   According to Corey Sandler and Janice Keefer there are three elements that should be included in any improvement plan: Specific goals for, and descriptions of, the improvements you want to see Specific steps for achieving the described improvements Specific methods for measuring performance and assessing improvement The manager must be certain that the employee is capable of correcting the performance problem (Roger J. Plachy with   Sandra J. Plachy, 1988). According to John P. Willson , Managerial responsibility for coaching and support and individual ownership of performance improvement are at the heart of performance management. Pe...

Competency Based Performance Review (CBPR) When people think about implementing a performance management system, one of the first thing that comes to the mind are developing a competency model (Elaine D. Pulakos, 2009). Competency-based performance, on the other hand, evaluates large sets of capabilities and knowledge which, if put to good use, it can significantly improve organizational productivity to a much greater extent than just doing a job using an existing skill set (SHRM,2010).  Competencies are behaviors that reflect a person’s knowledge, skills, and approach that are required for successful performance. According to Herman Aguinis, Competencies are measurable clusters of knowledge, skills, and abilities (KSAs) that are critical in determining how results will be achieved. Competency based appraisals measures and assesses behaviors as well as performance targets and can make a significant contribution to people development and management as long as the process and the con...

  Background of the Organization Logistic Group is one of the largest shipping house agencies and freight forwarder groups in Sri Lanka. The volume of the group’s operations accounts is for approximately 12.5% of the container throughout of the Port of Colombo and is the largest car carrier handling agent in the port of Colombo. This group consists of 22 Strategic Business Units (SBU’s) and each SBU sets its own long and short term goals and objectives along with the strategies and action plans to achieve them. Human Resources strategic plans of the company.  Succession planning and Talent Pool Development Effective Performance Management System (PMS) Enhanced  Employee Relations  & Organizational Culture Structured Remuneration and Benefits Structure Performance Appraisal system of the company. The company has introduced a Performance appraisal system in November 2011. Following competencies are essential present day logistics personnel to meet the evolvin...

Performance Review Robin Kessle in the competency-based Performance Reviews book said that the different organizations use different terms for the Performance review. According to Robin, some other terms used instead of performance reviews are performance evaluation and performance assessment. Performance evaluation is a process of systematic assessment of individual performance. It applies as a development tool for the advancement of employee and organization (Reynolds and Scott, 2009). Performance evaluation methods are the systems and processes through which appraisal is carried out in an organization (Rosa Cintrón). Employee performance assessment can be divided into two main categories as systematic and non-systematic assessment. Within the non-systematic assessment, an employee will be asset continuously by a superior throughout the work process (Alain, 2013). In a performance culture, performance evaluations are specific to an individual’s role, responsibilities, and perform...

Performance  Planning and agreement Performance and development planning is carried out jointly by the manager and the individual. These discussions should lead to an agreement on what needs to be done by both parties (Michael Armstrong, 2006). During the performance planning process, managers should review and discuss behavioral standards with employees. It is important for the managers to make sure employees understand how the behavioral standards relate to their specific jobs (Elaine D. Pulakos, 2004).    Torrington et al. describes that performance appraisal is integrated with performance planning where individual objectives are linked to the overall organizational objectives. The success of these objectives is supported through ongoing feedback and personal development plans and assessed in order to reward superior performance (Torrington et al., 2008). Employees should understand where the organization is heading to and whether the commonly agreed goals are re...

  Areas needed to be considered for successful performance management. Elaine D. Pulakos describes that there are 02 important decisions needed to make first before implement the performance management process in a company. Two Key Decisions 1.       What is the Purpose of the System? Basis for making decisions about pay, promotion, or other important outcomes? Employee development?   2.       What Performance to Measure? Behaviors? Results? Both?   Also   Elaine D. Pulakos said company must recognize ; Targeted to individuals, not teams and Most relevant for non-executives. The organizational purpose gives meaning and direction to individual efforts (Roger J. Plachy with Sandra J. Plachy, 1988). According to Herman Aguinis there are advantages as well as disadvantages. Poorly designed and implemented performance management systems can have disastrous consequences for all involved(Herman Aguini...