Well-Defined Performance Management System Analysis

A well-defined performance management system helps in measuring and evaluating performance in any organisation. Based on the performance people are divided majorly into four categories: High performers, average performers, Underachievers and nonperformers. There are different rewards and strategies for every category. While it is must to know high performers, it is equally important to know under performers and non-performers.
Identifying Performance
For identifying unsatisfactory performance in an organisation, there are three main phases defined Plan, Monitor and Review. Planning is all about laying out deliverables for the employees which they need to be achieved. Smart goals i.e. Specific, measurable, achievable, relevant and time-based goals can be used to define what is expected from the employees. Figure 9: Performance management Cycle
Once smart goals are defined, then organisations need to identify KRAs and KPIs for every individual. Organisations need to identify and clarify what is expected of the employees. They need to plan how they will measure the results and how the whole process will be monitored. Also, it is must to document the plan. Next stage is the monitor where individual and team performances are measured and evaluated.
While super performers exceed the expectations out of them, there are people who are not able to do well with respect to their goals and objectives. These people are under performers. Their performance is below expected level. In addition to that, there are people who don’t want to contribute and there is no intention of performing, these people are non-performers. It’s important to delineate people who lie in the category of under-performance and non-performance, (Monitoring, reviewing and managing performance,