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Challenges of PMS

The document discusses the challenges of implementing a performance management system, highlighting issues such as wrong design, lack of integration, and insufficient leadership commitment. It emphasizes the need for a tailored approach, stakeholder consultation, and continuous processes to ensure effectiveness. Additionally, it points out the importance of change management and the necessary competencies for successful implementation.

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Ketan Chande
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9 views10 pages

Challenges of PMS

The document discusses the challenges of implementing a performance management system, highlighting issues such as wrong design, lack of integration, and insufficient leadership commitment. It emphasizes the need for a tailored approach, stakeholder consultation, and continuous processes to ensure effectiveness. Additionally, it points out the importance of change management and the necessary competencies for successful implementation.

Uploaded by

Ketan Chande
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Challenges in

Implementin
ga
Performance
Management
System
Performance
Management
Benefits of
PM
Organization’ Manager’ Employee’
s Benefits s s
Benefits benefits
Improved
Clarifies
Organizational
expectations of the
Performance Saves Time and employees
Reduce Conflicts
Employee
retention and
loyalty
Clearly define
career paths
Improved
Productivity
Ensures efficiency
and consistency in
performance Promotes Job
Clear
satisfaction
Accountabilities
However !!!
Things could go wrong and the
required effectiveness of employee
performance is not obtained.
The
Challenges
Wrong Design
…
Absence of
Integration

Lack of
Leadership
Commitment

Management of
the Performance
System
Wrong Design
• The performance management system and tools must fit with the specific
needs of the organization.
• It cannot be a duplication of a system designed and implemented in another
organization, even an organization in the same industry or the same business
group.
• Intense consultation with various stakeholders and users of the system is
necessary.
• User trust is an absolute necessity for the success of the system.
• The design should be tried out on a pilot basis before it is rolled out to the
organization as a whole.
• Performance management should be viewed as a continuous process and
not an activity conducted once or twice a year.
• The design should also include mechanisms for rewarding performance and
handling poor performers.
Absence of
Integration
• The performance management system has to be
integrated with the strategic planning and human
resource management systems as well as with the
organizational culture, structure and all other major
organizational systems and processes.
Lack of Leadership Commitment
• Leadership commitment and support is a must for smooth
implementation of the system. Leaders must drive the process
and make performance management an integral part of the
management of the company.
• Leaders contribute not only in setting the strategic direction and
performance measures but also in monitoring and reviewing
performance across the organization.
• They also reinforce the performance cycle by recognizing and
rewarding performance.
Ignoring Change Management in System

Implementation
• Strategic management of change is a vital part of
implementing the system. Driven by the top
management, it involves careful management of
resistance.
• Communication would be a major intervention
and a key tool in managing the change.
• Implementation milestones and schedules must be
followed. Proper documents must be in place.
Incompetence
Competence to use the performance management
system is necessary to ensure smooth
implementation of the system. Some of the major
skills would include:

•Defining strategic objectives, performance


indicators, core competencies and performance
contracts
•Defining performance measures that correspond to
the KPIs*
•Giving and taking feedback, conducting appraisal
interviews, and active listening
•Performance coaching

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