Question:
Performance appraisal (PA) and management play an important role in the effective management of employees in every viable organisation. However, for many Human Resource practitioners and business leaders an annual performance appraisal is an outdated performance management practice. In most organisations, appraisal includes the assessment of employees' ability to meet expected standards by achieving the defined roles assigned in their contracts of employment. Integrating employee performance with business strategies can be challenging at the best of times, especially if the organisation does not have a reasonably well developed performance management framework and is considering to implement an objective and transparent performance management system (PMS) to facilitate the collection, reporting and use of performance indicators. As the newly appointed Director of HRD, you are required to suggest how you would design and implement a Performance Management System with the objective to improve performance at all levels of the organisation. Draft a report addressed to your CEO, outlining the following:
(a) Definitions of Performance Management System (PMS).
(b) Compare and contrast between PMS and PA.
(c) Alignment of Individual Key Performance Indicators (KPI) to Departmental and Corporate objectives.
(d) Design and Implementation of the PMS.