PMS ( performance management system) is a process by which companies appraise and recognise its employees.
A company employing a proper PMS not only improves employee morale but also helps in retaining top talent .It results to overall increase in productivity.
The primary objective of performance management system are:
- Supports to achieve enhanced standard of work
- Assisting employees in identifying knowledge and skills they need to develop
- Motivate and help them directing their work towards the company goal
- Help employees achieve personal growth
Let’s check a few steps on how to build an effective PMS process:
- Planning: It is the first and vital step of an effective PMS. Here the company has to identify and define the critical elements of employee performance and responsibilities. Documenting and sharing these indicators is very important for the organisation.
- Monitoring: Monitoring and evaluating performance means not only to measure but also to give regular feedback to employees. There should be at least one discussion halfway in the appraisal period regarding the employee’s progress and also on providing suggestion for improving any shortcoming in their performance.
- Recognition: Organisations should recognise and reward employees who met company goals. A system of rewards and recognition motivates the employee and prevents exit of good performers. The incentives could include both cash rewards and non-monetary rewards like certificate of appreciation.
- Skill Development: It is the last and the most crucial step. It includes ongoing training while they are employed and may include training in new skills at workplace, mentor-ship or also monetary assistance for pursuing a college degree.