Brief Discussion on PMS

PERFORMANCE MEASUREMENT

A General rule :
“You get what you measure”
What does not get measured can not be Recorded.
What does not get recorded can not be Monitored.
What can not get monitored can not be Controlled
What can not get controlled can not be Improved.
 PERFORMANCE MEASUREMENT

A process of assessing progress towards achieving

predetermined goals.

Includes information on the efficiency with which resources are

transformed into goods and services.

Quality of those outputs

Outputs & effectiveness.

 PERFORMANCE MANAGEMENT

Use of performance measurement information to effect positive

change in organizational culture, systems and processes.
Helping to set agreed upon performance goals.
Allocating and prioritizing resources
Informing managers to confirm or change the current policy or
programme direction to meet those goals.

Sharing results of performance in pursuing the goals.

 PERFORMANCE MANAGEMENT

PMS Once thought of as a way to get more out of employees,

Today’s performance management is about helping people, and teams, be

their best.

It ensures people build competencies they need to succeed in their role &
giving them opportunities to learn and develop new skills.

When people feel valued for their contribution, they’ll be more engaged &
productive.
 PITFALLS IN MEASUREMENT
Many times it is observed that:
Organisation tend to measure what is easy to count, not what is
important
Measures are used to punish, not to learn.
Either too many variables are used or too few.
Old& large organizations usually collect more data and details.
Managers tend to make decisions based on intuition or past
experience when too much data & too complex data is available.
 PITFALLS IN MEASUREMENT
We don’t trust data unless it is along with our intuition / experience or what
our gut tells us. Whereas Japanese trust data and use it to make key
decisions.
Wrong set of measures can pull in opposite direction, they are inconsistent
& incomplete.
Nothing does more to keep an organisation on track of success than
measuring right variables and providing employees regular feedback on
these variables.

Hence proper selection of measures and use of data becomes essential for
continuous improvement and success of any organisation.
 PITFALLS IN MEASUREMENT

Many organisations believe that PMS is about measuring People

Performance. If you want high performing organisation, don’t Measure
People, measure processes and outcomes

Don’t use PMS for blame and scape-goat, it will kill innovation.

Performance Measures are feedback about the systems and processes.

They are not feedback about people
 HOW TO SELECT APPROPRIATE MEASURES.

Every organisation should have a Balanced set of Measures,which will drive their
performance. And all measures collected at different levels.

Corporate level
Operation System level
Business Unit level
Departmental level
Team level
Individual level

should interrelate and lead to overall measures of the health of the organisation.