Performance Management System mechanisms:
A Performance Management System comprises the subsequent mechanisms and each mechanism follows definite steps.
There is self-proposal form, which each individual has to fill at the beginning of the year. This form would include what the individuals would want to contribute after the departmental objectives are communicated to them.
After filling up the self-proposal form, every individual is required to fill his/her KRAs (Key Result Areas) for the year. These KRAs are documents which clearly state the contribution/ target/ outcome an individual plans to have in the coming year. Each one of these contributions has measures and standards mentioned. Hence an individual is expected to perform as per the standards and measures. The KRAs are decided together by the individual and his/her superior, and ought to be in line with the overall goals of the organization. These are flexible and can change from time to time.
This is a mid term review, where the superior and the subordinates discuss to assess whether the KRA are in line with the overall objectives and whether there is a need for change in KRA or not.
At the end of the year, the individual is expected to fill his/her self-appraisal form, in which he/she has to evaluate her/his performance, contributions etc. The performance criterion here is a mix of both qualitative as well as quantitative assessment. The individuals are assessed by their targets' achievement and also how effectively they have been achieved in terms of cost, time, quality, etc.This is discussed with the immediate superior. On the basis of these KRAs and self-appraisal form, the person is evaluated at the end of the year.
In the discussion group, the individual's immediate superior, and his/her superior is involved. Performance is evaluated on not only the KRAs achievement but also how effectively they have been achieved. Each KRA has different weightage and points are awarded for each one of them. Then these points are converted into grades by the HR department.
After the appraisal, the individual is given feedback on his/her contributions and areas of improvement by his/her immediate superior. Also there is a potential appraisal form where the individual's strengths and weakness are indicated.