INTRODUCTION
It can be argued that ‘performance management process’ (PMP) is one of the most critical, if not ‘the most critical’ HR processes for any organization. This article is an attempt to comprehensively capture the design dimensions and key considerations related to PMP. It will provide a conceptual framework for organizations who wish to review or redesign their PMP.
This article is organized under following main sections
A. What are the attributes of an effective PM process?
B. What should the PM process measure? : Defining the elements of PMP
(Elements: Basic Job Responsibilities, Goals & Objectives, Qualitative Attributes and Capability and Potential)
C. Choosing the main guiding assumptions behind PM process
D. Operationalizing the PM process elements
E. Integrating the PM process elements for holistic assessment
F. Additional aspects related to PM design : Relative ranking and pre-requisites for effective PMP roll out
This article covers discussion about many of the key dilemmas and issues faced in PMP design. A few examples include:
– Should the PM process measure qualitative aspects of performance? If yes, how should these be integrated with the quantitative aspects of performance?
– Should the PM process include measurement of potential?
– Is it possible (and desirable) to have a PM process that is entirely objective and quantifiable?
– Is it a good practice to have weights associated with goals? Is it desirable to use standard goal templates?
– Is forced ranking a good tool of Performance Management? What precautions should be taken while implementing forced ranking?
– Is it worth investing lot of efforts in training supervisors on having effective appraisal discussions?
It also covers examples of PMP practices adopted at organizations such as Accenture, Unilever and Marico.
