Question

In your own words write an essay about the implementation of a Performance Management system into an organization, the importance of this to write 6 main points with explaination with examples in each point?

Answer 1

1. Understand the type of work your workers are doing. Is it measurable. Example you can measure accurately how much work an OLA CAB Driver in India has worked. But You cannot measure how much work in month a Manager of OLA CABS is doing. If you think you can measure 100% of the work done by your employees then pay them according to the work done instead of fixed compensation.
2. Decide the bonus component on what basis it should be.
3. Promotion is very important component but not always, it depends on the type of the firm and industry you are working in. If you are working in Firm like BCG/ Bain where employees become partners and they mostly earn much more as they climb the ladder, promotion becomes much more important than than Bonus and other components.
But if the the employee is working in the an Research institute like IIMs/IITs/NITs where in lifetime only 3-4 promotions happen then a promotion will not at be matter of concern for the employee because they know they have 30 years of working they will get the promotion today or tomorrow.
4. Component of Fixed pay vs Variable pay - Again you can decide it on the basis of the amount of job you can measure of your employees.
5. Grade the performance of employees on fixed distribution or free distribution you can do it in two ways Relative grading or Fixed grading.
6. evaluation, reward,Compensations, Have consistency in the rating, levels of rating, forced distribution vs free distribution Also remember this performance Eavluation is way to boost your employees to be m,ore productive it should give rise to unhealthy competition in the employees