PMS Assignment

Submitted to- Farheen Ma’am

Submitted by-Sanjana Gupta

PRN-124
Q1. Enlist your reasons for/against having PMS.

Ans- There is no compellation by law to use performance management systems but there
are certainly some managerial benefits which are listed below:

 Performance reviews help document salary actions.

 They provide feedback to employees on their performance.
 Performance reviews help identify “good” and “bad” performers.
 They help document personnel decisions, such as promotions and discipline.
 They assist management in making a decision to retain or terminate.
 Performance reviews help identify training needs.
 They assist with personnel planning including staffing.

Mostly, these advantages are observed to be reflected in the organization after using PMS:

1. Consistency:- The selection of the right candidate for selection, promotion, transfer and other

actions like these should be conducted consistently.

2. Motivation.

All the organization’s employees (as well as supervisors and managers) should be more highly

motivated. Every employee will realize that the organization rewards achievement, and many will be

encouraged to improve their performance.

3. Morale and retention.

More highly motivated employees are likely to be more loyal, as well, so that management will have

better success retaining valuable employees even as the nation’s workforce becomes more mobile.

4. Organizational impacts.

The employer with an accurate evaluation system may truly have a basis for saying that he has

better employees than others in his field.

5. Training needs.

While accurate evaluation is most often recommended for its role in making “good employees

better,” it has a valuable remedial use as well. Evaluation can spot employees who need training.

6. Firing risks.

Perhaps more important, management may be more willing to dismiss an inadequate employee if an

objective evaluation system can be pointed to as identifying the inadequacy. The employee and the

organization should benefit from an early end to a bad situation.

Q2. Choose anyone company & read about its Performance Management
System (Appraisal and Frequency).

Ans- Facebook's approach to performance management

Employees and managers at Facebook generally know what to expect when biannual performance
reviews roll around. Due to the company’s continuous stream of 360 real-time feedback, everyone
has a good understanding of an employee’s performance prior to the appraisal, minimizing any
uncertainty or ambiguity on both ends.
Molly Graham, a software engineer at Facebook, shared online that the actual process of gathering
360 feedback is dubbed the Performance Summary Cycle. According to Graham, “There is a two
week period where employees solicit peer feedback (usually 3-5 peer reviews), and write a self
assessment. Managers then read all the peer feedback and the self assessment and determine a
‘Performance Assessment’ or rating of the employee's performance over the last six months as well
as whether or not it is the right time to promote the employee.”

In an interview with Business Insider, Facebook’s VP of People Lori Goler stated that the company’s
evaluations act as checkpoints rather than in-depth investigations into an employee’s performance.
Goler claims that if anything is surprising in these reviews, then “something has gone horribly
wrong.”

Employees walk away from their appraisals with a grade out of seven. The numbers are given
definitions from “redefines” to “does not meet.” This stack ranking system has obviously worked to
some degree, as evidenced by the social network’s astronomical success and impressive talent, but it
has had a somewhat polarizing effect among employees and ex-employees.

Potential Problems

In January 2019, Salvador Rodriguez of CNBC conducted in-depth interviews with more than a dozen
former employees to ascertain how the felt about Facebook’s performance culture. The Ex-
employees likened the company to a cult, claiming that employees feel a distinct pressure to never
show dissent, to keep up appearances on their Facebook profiles, and to force cordiality and
friendships with their coworkers in order to advance.

The Benefits of Facebook’s Strategy

While performance evaluations are not necessarily the perfect system, and can have costly
flaws, they are certainly better than no reviews at all. Without formal reviews, performance
will still get rated in another, more secretive manner that leaves employees in the dark and
creates a sense of distrust toward management.

Even continuous real-time feedback, while a helpful tool to improve an employee’s

performance, can employees unsure of their impact on the company overall.
Q3. Identify recent trends in PMS & their future perspective.
Ans- 1. Employee Wellbeing Will Become Part of Performance Discussions

Stress and anxiety are debilitating in the workplace and, unfortunately, these issues are a bigger
problem than ever. One study found that a third of UK workers suffer from anxiety, depression or
stress. The same survey showed that 40% of employees have either taken time off work or asked for
their workload to be reduced due to their mental health.

As Josh Bersin has stated, “Wellbeing is still a big part of HR. It’s not surprising that productivity is
suffering when stress levels are high; employees feel overwhelmed and they’re getting less work
done. We’re losing approximately £42 billion a year because of stress at work, much of which mani-
fests itself in presenteeism.”

Detecting and addressing mental health issues early on is increasingly key when it comes to keeping
employees performing at their best. Forward-thinking companies are waking up to the fact that
mental health issues play a serious role in terms of performance and productivity — the issues
of wellbeing and employee performance go hand in hand.

2. Feedback will Need to Be Supported By Regular Coaching Conversations

Over recent years, the performance management debate has focused heavily on the importance of
frequent, real-time feedback. However, the quantity of feedback is not a silver bullet that will magi-
cally produce a workforce of engaged and productive employees. If companies want to achieve gen-
uine performance gains, frequent feedback needs to be accompanied by regular coaching conversa-
tions, during which the manager and employee step back and reflect on the feedback that has been
given, using it to discover strengths and highlight areas for development.

This is a well established technique for sports professionals at the top of their game. I was recently
at an event where the head of one of the British Olympic squads talked about how scheduling regu-
lar time to pause and reflect on feedback and recent performance had helped them achieve continu-
al marginal gains that led them to win multiple Olympic gold medals.

3. Performance Management will become “Meaningful” and “Human”

One of the major criticisms of performance appraisals or performance reviews is that they are con-
trived and not authentic. They are too focused on box ticking and measuring annual objectives and
competencies and don’t feel relevant to employees’ day-to-day work lives.

This is changing rapidly and the number one objective that HR professionals are now telling us they
want to achieve for their performance management system is for managers and employees to have
more meaningful conversations about performance and development.

Embedding a culture of regular, authentic performance conversations is easier said than done, how-
ever, we’ve worked with well over 100 organisations over the last two years who have managed to
achieve this.
4. Performance Management Will Focus on How to Make Employees and Managers More Effective

Over the past few years, HR has been primarily concerned with employee engagement — and for
good reason. Highly engaged employees are loyal employees who will go the extra mile to get their
work done. As a result, employee engagement technology has grown significantly recently.

However, as we move into 2019, analysts including Josh Bersin have predicted that we will see a new
trend — the optimisation of productivity and performance, on both an individual and team basis. In
other words, now that we have measured engagement, it is time to take action and improve it with
the aim of making employees more productive.

5. Artificial Intelligence (AI) will Arrive in Performance Management

AI is already having a big impact in recruitment and learning — there has been a significant innova-
tion in tech within these areas. In 2019, attention will turn to AI within performance management.

For organisations who have made the move to continuous conversations and feedback, we can start
to use AI to draw out themes from large amounts of qualitative data being gathered from feedback,
goals and conversations. We can then go a step further and use software to coach employees and
managers in real-time based on the feedback being received, and perhaps even predict future high
performers based on patterns, the content of feedback that is requested and received, and goals
being set and achieved.

At the heart of AI in HR is improved people decisions, and the growth of AI in HR will ultimately pro-
vide unbiased data that will guide decisions such as who to promote, and offer insight into who
requires additional training to enable better performance while combating workplace bias.
Q4. Discuss advantages/disadvantages of 360 Degree as a feedback tool.

Ans-List of Advantages of 360 Degree Performance Appraisal

1. It provides feedback from different perspectives

As mentioned earlier, a 360 degree appraisal may involve managers, subordinates, colleagues and
customers. This is helpful because a person interacts differently with those they work with. For
instance, they might be more open with a colleague than they are with a manager.

2. It identifies development opportunities

Personal development and growth is crucial to a successful career and areas where one needs to
improve on can be addressed through a 360 degree feedback.

3. It focuses on core competencies

Feedbacks are designed to show how you’ve been helping the company and how else can you
make better contributions. A 360 degree feedback focuses on competencies that reflect that
standard for behavior and interaction within an organization.

List of Disadvantages of 360 Degree Performance Appraisal

1. It is not really an honest assessment

A person can be completely dishonest when they are filling out a feedback form for a certain
individual. They might be scared to hurt another person’s feelings if they rank them in a
certain way.
2. It can be time consuming
Delivering the feedback to the actual person also takes time. The person needs to be told
their good points as well as their bad points and how they can improve on it. Sometimes, the
individual being assessed doesn’t entirely agree with the assessment which could lead to
trouble.
Q5. Draft a questionnaire for collecting data of employee satisfaction.

1. Is there a clear understanding of the strategic objectives of the organization?

2. Is it clear to you what your role demands in meeting the company objectives?

3. Do you believe that there is an opportunity for individual career growth and development
within the company?

4. Do you believe that there is an opportunity for individual career growth and development
within the company?

5. Are you satisfied with your Job overall?

6. Do you relish being a member of your team?

7. Is your team an inspiration for you to do your best at the job?

8. Does your team provide you support at work whenever needed?

9. Do you struggle to get information to make better decisions at work?

10. If something unusual comes up, do you know who to go for a solution?

11. Does the organization inform you about all the resources and tools to perform your duties
well?

12. Do your seniors, managers encourage you to give your best effort?

13. Do you feel you are rewarded for your dedication and commitment towards the work?

14. Do you feel that your opinions are heard and valued by your superior?

15. Do you feel there is a scope for personal growth such as skill enhancement?

16. Do you experience personal growth such as upgrading your skills and learning other tasks
apart from your regular to-dos?

17. Does the management involve you while taking leadership related decisions?

18. Do you think you are valued by your manager?

19. Do you think you go beyond your limits to fulfill a task?

 20. Do you think your job makes a positive difference in other’s life?

21. Do you think you have had enough training to solve customer issues?

22. Do you think the management respects your personal family time?

23. Do you receive constructive feedback from your manager?

24. Does your manager praise you when you have done a good job?

25. Do you think the environment at work helps you strike the right balance between your work
life and personal life?

26. Does your job cause an unreasonable amount of stress to you?

27. Do you think your manager understands a healthy balance between work life and personal
life?

28. Do you think you manager treats all the team members equally?

29. Do you think the organization has fair policies for promotion for all employees?

30. Do you feel that the management is just towards administering policies concerning
employees?
Q6.When it comes to Performance Management the personal touch is always
critical. Discuss how automation could help simplify processes without
dehumanizing performance evaluation.
Ans- The potential of data-driven decision making in HR is constantly growing, and managers are
starting to take notice. “In the early days of HR analytics, companies captured employee data to
measure the span of control, the distribution of performance ratings, succession pipeline, and other
talent-related topics.
The next logical step is to use AI to make sense of analytics data and provide predictive insights that
complement a manager’s human intuition and expertise. In the realm of performance feedback,
here’s how this helps.

1. AI could enable predictive appraisals

Typically, managers look at historical data records – combined with their opinion of employee
potential – to complete the appraisal process. This process could be replete with errors if data sets
are incomplete or if employee performance improves dramatically between appraisal cycles.
For example, a top-performing employee could be stuck with subpar compensation simply because
of poor performance in the previous cycle or during one low period in the current cycle. AI turns this
model on its head – it analyzes data to recommend future performance levels, allowing managers to
compensate employees for what they are going to achieve instead of what they’ve already done.

2. Managers can conduct bias-free performance reviews

AI will assess employee performance based purely on historical performance data and achievement
of current performance metrics, and it will then make future predictions about employee
performance. In other words, there is less room for favoritism or personal likes/dislikes.
Frequently, a bias will creep in without the manager being consciously aware of its impact. By
providing objective performance feedback, AI helps managers to optimize the appraisal process
while also instilling trust in team members.

3. It is possible to initiate immediate course correction

One of the biggest USPs of using AI in performance feedback is its ability to deliver prescriptive
recommendations. While historical analytics considers past data and predictive analytics details
future possibilities, prescriptive analytics outlines clear recommendations for managers to take.
For example, IBM’s AI-based performance feedback solution told managers that giving certain
employees a 10% raise would decrease their flight risk by 90%.
Similarly, prescriptive AI can indicate performance gaps where L&D could assist in employee
development. Through real-time analytics, AI could detect such gaps early in the review cycle,
allowing managers to upskill an employee for a new role before the appraisal season comes around.