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PMS – Effective OD : The Linkage

PMS – Effective OD : The Linkage

 April 7, 2016

Strategy sets the direction and also defines the scope of an organization. While the direction helps the people working with the organization to channelize their efforts to achieve the common goals, scope limits the activities of the organization to focus such efforts. Both the direction and scope matched with resource allocation help the organization keep pace with the changing environment, and meeting the expectations of different stakeholders.

Performance Management System is the key to overall development of an organization. An organization’s employees and their performance gives a holistic view of how their HR functions and what role does it have in effective PMS. Role of an HR manager is key in having an effective PMS. However, the secret of an effective system lies in the much thought over and foolproof design. Having talked of the effective design, before designing it, there should be certain aspects taken care of and strongly considered for;

  • Audience: For every role SMART KRA / Job role should be well defined and the employee should be handheld during the expectation setting process. Often this is a neglected process. This acts as an enabler in terms of gauging the efficacy of the process as a whole. Eligibility to participate in terms of tenure is also important.
  • Scales: Whether the evaluation is subjective or objective decides how genuine and effective this process is. Subjective evaluations have biases whereas object evaluations have justified matrix to follow. An HR manager needs to opt for right kind of scale for each of the competencies. E.g. business outcome can be measured using an objective scale however the attitude of an individual can always be subjective. All the successful organizations have an objective measuring matrix in place which helps evaluate in an unbiased manner.
  • Compensation & Benefits: Whether the framework defines any correlation between PMS and the C&B of an employee is extremely important as money contributes to be biggest motivator. If the correlation is understood and communicated the task becomes easy.
  • OD & TM: An organization’s learning ideology and philosophy creates a great difference. The development plan is very much dependent on the evaluation process. If the evaluation process is not in place, the development plan could be as elaborate or brief, makes no effective development for an organization. Whether there is a link between PMS and the organizational development ideology of an organization should be closely thought over.
  • Executing and Decision Making: Once the framework is in place the evaluation on the matrix might be the responsibility of an HR however, decision of development plan remains with the reporting manager. This gives an ownership of employee to the reporting heads.

While designing the framework of the process having considered these extends a supporting arm to TM&OD. TM & OD being critical at any level for an organization, makes it essential to have implemented it in the most efficient way, thus makes impressively effective PMS indispensible for the organizations as whole.

While TM & OD identifies right talent and helps organization to evolve to the bigger new, PMS acts as a foundation for this approach. A right PMS enables employees realize their worth in the system and relate to the organizational goals as a whole. In a nutshell, performance management serves as an important tool for realizing organizational goals by implementing competitive HRM strategies. It helps in aligning and integrating the objectives with the KPI’s in an organization both vertically and horizontally across all job categories and the levels and thus helps in driving all the activities right from the bottom level towards one single goal.

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