Performance Management System Design
A performance management system is used to identify, measure, evaluate, improve, and reward
an employee’s performance at work in attaining their own goals which are also strategically aligned with
the organization’s goals. It is also helpful in determining administrative decisions, diagnosing
organizational challenges, and information on developmental and documentation concerns. As
(Levinson, 1976) suggested, “Performance appraisal has three basic functions: (1) to provide adequate
feedback to each person on his or her performance; (2) to serve as a basis for modifying or changing
behavior toward more effective working habits; and (3) to provide data to managers with which they
may judge future job assignments and compensation.”
The ORGANIZATION NAME plan to use both behavioural and results approach in designing its
performance management system as the management has thought that this will be beneficial in
targeting areas needed to be maintained and continuously improve to achieve the organization’s
mission, vision, goals, and values.
The behavioural approach is a good measure of performance appraisals as it focuses on the person's
actual behaviour. The actions can be observed with the naked eye and can be documented for legal
purposes such as appraisals, incident reports, and assessments. The behavioural approach in
performance management also sheds light not only on the person’s behaviours and characteristics but
on the behavioural patterns as well, which leads managers to understand employees better by keeping a
record of each activity. With the usage of this approach, the (ORGANIZATION NAME) employees can be
coached and trained depending on areas that still need improvements such as customer service,
organizational culture and organizational climate. On the other hand, the results approach is objective
and is useful in linking the employee’s behaviour and their performance outcome. Though it only
focuses on the end result of the employee’s action, it helps employees to use their declarative and
procedural knowledge, skills, and abilities to do tasks in a more autonomous way. This approach is
advantageous in terms of incentivizing employees who have contributed a great amount to the
company’s productivity and financial standing. However, the team would focus on the outcomes of an
employee’s behaviour and how it affects the organization’s working environment and culture rather
than the tangible things that can be measured. The management’s plan was to develop an Individual
Performance and Development Plan (IPDP) for every employee to determine their SMART objectives in
accordance with the business objective for the year, as well as to focus on the employee’s strengths,
weaknesses, and competencies that should be managed to achieve current and future endeavours. After
filling out this form, a mid-year review will take place to assess the employee’s development in
preparation for the year-end review. On the annual performance review, managers will have a one-on-
one coaching session with the employee to discuss his or her progress and achievements and
constructively challenge areas that need to be worked on. Promotions and incentives will also be
discussed based on the annual performance review.
There are 5 Purposes of the (IPDP) Performance Management System
Feedback
ORGANIZATION NAME aims to convey how our employees performed on their established goals
and to increase their motivation through constructive feedback. This will help employees with
personal and career development for their current position in the organization and future
promotions.
Developmental Concerns
For developmental concerns, once identified, the performance management system will be
useful in establishing objective trainings and programs for skill improvement and for the
betterment of any deficiencies with the employee’s performance and behaviour.
Documentation Concerns
The performance management system also serves as a legal file for documentation purposes.
However, job-related measures must be performance supported and must be in accordance
with the organization’s policy for justice and fairness between the company and the employee.
This also serves as a record in determining effective, ineffective, and top-performer employees.
Diagnosing of Organizational Problems
The PMS will be utilized in determining organizational challenges with the help of providing
feedback, developmental concerns, and documentation concerns. Proper specifications will help
break down the organization’s needs and how to solve certain issues.
Employment Decisions
The IPDP will help the organization in employment decisions whether a new job position will be
needed in the ORGANIZATION NAME or an employee has to be replaced due to poor
performance.
An example of the Individual Development and Performance Plan
Individual Development and Performance Plan
Employee Name: Job Title:
Evaluator: Review Date:
Development and Performance Plan
Current Performance Action Start Date End Date Comments
Performance Target Plan/Resources
Needed
Employee Feedback
Highly Satisfactory Fair Good Poor Suggestions
Satisfactory
The
organization’s
policy is fair
to every
employee
My job aligns
with the
mission and
vision of the
company
I feel valued
in the
company
The company
gives me a
reasonable
amount of
work
I can easily
communicate
with
everyone in
the
organization
The company
gives me
appropriate
trainings to
develop my
professional
skills
My work
assignments
are aligned
with my work
description
My work is
evaluated
based on fair
performance
standards
I would
suggest
working in
this company
to others.
Employee Comments:
Manager Notes:
Employee Signature Manager Signature
