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Performance Management System

When business goals are subdivided into Department goals which are further divided into Individual Employee Goals followed by the evaluation of their performance is known as Performance Management System (PMS).)

The process of remembering each and every employee’s performance, contribution, their mistakes throughout the year is cumbersome and tedious. Moreover, there’s no guarantee that the final product will be unbiased or truthful. Therefore, PMS is considered very efficient and well-structured. The use of PMS services prevents injustice and discrimination towards the genuine employees of the organization. This is one of the main reasons that organizations prefer to have PMS as each employee’s performance is being recorded and reviewed.

We, at Salahkaar Consultants, provide PMS consulting services so as to bridge the gap, in management and thereby make things more transparent and logical. Our PMS Consultation services are created in a way, which is very simple and easy to understand. Adopting our PMS services gives an opportunity for the management to spare more time for their work rather than spending time analyzing each and every employee’s performance less efficiently.

Hire us for our PMS services or PMS consulting and we will make it easy for you to track your employees’ performances. Fill out your requirements in our Quick Enquiry Form! Contact us today. Click here


Please check our typical proposal for doing a PMS at an organization:


Performance management is the strategy, methodologies, and process of managing the performance of the organization and its business network by leveraging assets to achieve a common set of goals and objectives.

Performance management focuses on understanding, optimizing, and aligning action and decisions and ensuring the collaboration and empowerment of all individuals across the business network. This enables all individuals to work across strategic, tactical, and operational levels to align actions to ensure optimal performance.

The most crucial challenge to an organization in designing and implementing a superior performance management system and practice lies in the ability of organizations to transit their cultures and methods from the established executive-oriented system to a more transparent, bidirectional, performance-driven culture. Enlightened organizations address this issue with executive mandates and solutions that leverage collaboration and metric-driven applications. They actively coordinate and communicate direction and progress on performance goals to the communities of individual employees.

In brief, Performance Management provides a critical foundation for organizations to manage their businesses and empower individuals to make the right decisions to maximize profitability. Capturing knowledge and information across the organization can build long-term value for stakeholders. This is now possible by applying performance management principles with openness and objective settings to technology investments.

Fortunately, now, as never before, businesses can acquire an optimum level of their ability to design and implement performance management to transform entire organizations with a focus to achieve goals.



Broadly, for the present project, our chief aim will be to design a system that will basically help in developing, implementing, and establishing Employee Performance monitoring based on objective settings and feedback management systems in your company.


To elaborate

Diagnostic Study (we call it Discovery Report)

Design a PA system based on objective settings (akin to MBO)


Train participants of the study to mutually (superior-subordinate jointly) objective setting Help the company implement the scheme

Handholding for initial implementation of the project


The above objective once accomplished will help the company in:

Fostering a corporate culture and business processes oriented around a reliable and satisfying Performance Rating system.

Creating valid measures for employees’ performance.

Distinguishing between the best and the worst players to the satisfaction of all concerned, and

Ensure that these are effectively enforced and implemented



  • Understanding the need. Studying the organizational vision, past data, and environmental analysis will give the exact need of developing the kind of PMS required.
  • Design the performance review model and system based on the need of the organization.
  • Goal-setting sessions for all the levels
  • Implementation


We shall be using our phase/stages (Proprietary Methodology) to evolve a customized solution

Phase I

DISCOVERY (Diagnostic Intervention)*

The Discovery phase will aim:

  1. To verify & validate the key concern areas
  1. To analyze and compute the key gaps in the Expected and Current Scenario.
  1. To prepare a discovery report highlighting the Strength & Weaknesses with respect to its present PA scenario.

Phase 2:

Designing the system

Steps involved:

Designing the Performance Appraisal System and monitoring and tracking device on the basis of results of Phase 1

Presenting the device to management to seek their reactions/ opinions/ suggestions.

Finalize the PA Performa


Phase 3

Implementation and Training

Implement the key strategies & processes as outlined in the new document using:

  1. Training & Developmental Workshops and Coaching activities for understanding and implementing the system.
  1. Hand-holding for the development of a continuous feedback mechanism.


Proposed Methodology


In brief, we shall follow the following methodology steps:

Step 1:-

We will need to collect details of participants with respect to qualification, experience history, current responsibilities with designations, and one photograph of each.


Step 2:-

We design the PA system and review them


Step 3:-

In the next step, we will speak to this target audience over a period of 10 days to gather generic information and their viewpoints on performance evaluation.


Step 4:-

In the fourth step, we would like to share this information with the top management and listen to their viewpoints, way to moving ahead, and suggestion(s)/recommendation(s) by them, if any.


Step 5:-

We shall design the training content customized around the feedback received from the target audience to make the scope of the assignment more meaningful and result oriented.


Step 6:-

We will also conduct training sessions based on role-plays and other training methods to ensure that the participants have been aligned with the purpose and process of the system.


Step 7:-

Further, we would do the hand-holding to implement the same down below.

  • Implementation as mentioned in Phase III would be a resultant activity of Phases I & II. The success of the whole project will depend upon how well the company implements the recommendation(s) of the consultants and their reports.

Key Deliverables

Key deliverables for the proposed interventions would be as under.

Discovery Report highlighting the employee’s opinion and present status of their PA System.

Detailed Recommendation Report based on the findings of the Discovery Report

Creation of valid measures for employees’ performance, PA performance, and Procedures concerning the implementation and administration of the system.

Training the target groups for successful goal-setting skills

Method & guidelines for the further smooth running of the system.

The success of the assignment would totally depend on how well the organization goes about its implementation.



Total expected time to cover all phases- Two months from the date of receipt of the work order. 



A team of senior consultant(s) and support staff(s) of the SALAHKAAR CONSULTANTS.

To know about our expertise profiles:



Exercise will be conducted by 1 Chief Consultant, 5 Co-consultants and 2 Research Executives.



We will need you to assign one individual as the primary anchor from your organization for this assignment. It will be helpful if, at the outset of the assignment, the purpose of the assignment is communicated and explained to all and cooperation is sought from across the organization.

The project will take 8 weeks to complete from the letter of intent and an advance of 70% of the total fee, based on the required support by the management.

The professional fees for this assignment would depend on the assignment sign plus taxes.

All travel to and from their office, lodging and boarding wherever applicable will be borne by the company.


PAYMENT CONDITIONS: Online / D/D or at par payable Cheque is to be drawn in the name of M/s SALAHKAAR CONSULTANTS payable at Pune. 75% of the entire expected payment will be made at least 15 days prior to the program date in advance and the rest of the 25% payment due will be made immediately after the completion of the program.


Late payment will attract 1.5% of interest on a monthly basis. Consultants may change /postpone the program if advance payment is not done 15 days prior to the scheduled dates of the program. Other expenses are to be paid as per actual.



Few popular blog posts for your reading:

Blog 1: Click here

Blog 2:

 Performance management   

By Sanskriti Jain

Performance Management

Performance management is the continuous cycle of improving performance by setting individual and group objectives which are adjusted to the strategic objectives of the organization, planning performance to accomplish the objectives, evaluating and surveying progress, and building up the information, abilities and capacities of individuals. Performance Management is a corporate management instrument that helps supervisors in observing and evaluating employees’ work. Performance Management’s aim is to establish a climate where individuals can perform as well as could be expected to deliver the best work most proficiently and successfully.

 Performance Management is a continuous cycle of correspondence between a boss and a worker that happens consistently, on the side of achieving the essential goals of the association. The correspondence cycle incorporates explaining assumptions, setting destinations, distinguishing objectives, giving feedback, and inspecting results.

Performance Management Process

The performance management process is a collective, correspondence based cycles where representatives and the board cooperate to plan, screen and audit the worker’s goals, long period objectives, work direction and complete commitment to the organization.
This process is constant, with normal meetings where both administration and representatives [employees] have the chance to give and get feedback. 

As per the Gallup State of the American Workplace study, just 22% of representatives are involved and flourishing. Representatives who are locked in and flourishing are bound to keep up solid work execution, in any event, during troublesome occasions. This likewise implies that 78% of the labour force could accomplish better work if just their association had the correct sort of boarding process. A few reasons referred to in this examination for the absence of inspiration are seeing fewer meriting representatives get advancements, absence of noteworthy criticism, and the executives not including workers in setting objectives. These taken together show the significance of the exhibition, the board cycle, and why each piece of it should be done well for the interaction in general to succeed. 

The performance management process, when done effectively, is intended to fix those issues in the working environment, setting representatives up for accomplishment in accomplishing both their objectives and generally organization destinations.

Performance Management Process Steps

The Performance management process can be stalled into four general classes: Planning, training or coaching, auditing or reviewing and fulfilling or rewarding. Each progression is similarly significant, and together structure the foundation of an organization’s presentation of the board cycle. 

1. Planning 

The initial step of performance management is Planning. 

  • The characterizing stage: The performance management starts with the Planning stage. HR and management need to characterize the actual work, including an exhaustive depiction, long and momentary objectives, recognize key targets and build up an unmistakable measurement for how those destinations and objectives will be evaluated. Objectives ought to be clear, done in the SMART configuration (explicit, quantifiable, feasible, applicable, time-sensitive) and clear execution norms ought to be set.
  • The Feedback stage: Whenever the executives have finished the characterizing stage, representatives ought to have the chance to give a contribution to this material. They are the ones tackling their work and will have a vital understanding of what abilities, capabilities and objectives will best help the organization to accomplish organizational objectives.
  • The Approval stage: The board and workers both consent to the meaning of the job, objectives and targets. By making this initial step of the performance management process collective or collaborative, the board makes way for the cycle overall to be collective, and the representative feels that they are associated with the objective setting – something essential, as proven by the Gallup study.

2. Coaching and Instructing 

  • Organize gatherings on a convenient, as usual: When the boundaries of the work and targets for the future have been set, the subsequent stage of the performance management process starts. The training cycle is crucial and should be done consistently. Gatherings ought to be in any event quarterly, albeit month to month gatherings are the ideal.
  • Provide essential preparing, instructing and arrangements: These gatherings should zero in on arrangements and instructing openings, as opposed to corrective measures for dull execution. On the off chance that responsibility is made into a negative, representatives will keep away from it as opposed to speaking the truth about where they are battling. At times, the executives coaching in this space can be extremely useful to an association.
  • Solicit input or Feedback on the two sides: The board ought to have the option to give – and get – legitimate input and work with representatives as opposed to embracing an aggressive position. The capacity to give noteworthy criticism is significant here. 
  • Revisit goals as important: As the performance management process proceeds, the board ought to return to goals to check whether changes ought to be made, just as a focus on vocation advancement openings for their representatives. This progression includes evaluating the general performance of the worker, how well the actual cycle worked, and it additionally incorporates the award – which is a critical piece of the general interaction.

3. Reviewing or Exploring 

  • Reviewing worker performance: Toward the finish of the yearly performance management cycle, there ought to be a worker survey, which is now and again likewise called a performance appraisal. Ordinarily, these are held once per year, to take a gander at how well the worker performed throughout that length of time. There ought to be an unmistakable record from past registration to show the representative’s advancement consistently. The month to month registration is to assist the worker with critical thinking, changing objectives and other future-looking errands. This exhibition audit is the lone advance that looks in reverse, to evaluate the conduct of the previous year.
  • Reviewing the performance management process: At this stage, it is significant for both administration and representatives to investigate the earlier year and perceive how well the exhibition of the executive’s cycle worked. Inquiries that can be posed are:
  • Were their own and authoritative destinations met? If not, why? 
  • What difficulties did the representative face? 
  • What preparation would assist the representative with performing? 
  • How did the executive’s input help? If not, why? 
  • How is it possible that would interaction be improved? 
  • Was the time spent on this cycle successful? 
  • Reviewing generally speaking objective fruition: Obviously, one of the principal inquiries to answer is ‘did the worker arrive at their objectives?’ How all around did the representative prevail at the assignments given to them consistently? It is imperative to take a gander at both more modest and bigger objectives, as this can give a sign to pain points where preparation or medications can be applied.
  • Giving noteworthy feedback: A vital piece of the audit is to give and get criticism or feedback. The executives should give noteworthy feedback to the worker so they know territories where they can improve future execution. The representative ought to likewise be welcome to give criticism on the interaction, and how the executives can improve on their end.

4.  Activity 

The last advance in the presentation of the executive’s cycle is Action. 

  • Reward and acknowledgement: The last advance of the performance management process is the prize and acknowledgement. This progression is totally key – workers won’t remain persuaded in the event that they are given no motivation to. This doesn’t really need to be financial, despite the fact that it probably will incorporate money related pay. Different prizes could be new undertakings, expansive acknowledgement, downtime, or administration openings.
  • Setting the stage for the following year’s performance management cycle: The finish of the performance management cycle gives the board and representatives one final opportunity to offer feedback on the process overall and requests considerations and criticism for the arranging stage for the following year’s cycle.


New Continuous Performance Management Cycle Look Like 

Since 2015, this philosophy of continuous performance management has been adopted by lead­ing organizations like Microsoft, Deloitte, Adobe and General Electric. All these significant names have abandoned traditional once a year performance examinations for regular“check-ins” and fre­quent (or continuous) input.

These regular performance discussions are the typically developmental and future centre. They provide group members with an opportunity to investigate what has worked out in a good way and how success can be replicated once more, any challenges confronted and how they might be overcomeand concede to activities both the individual and manager need to take to develop the individual and further improve their performance. Such registration is additionally an incredible opportunity to address employee development while offering training opportunities and regularly reinforcing performance expectations. 


Objectives of Performance Management System

1. To accentuate professional arranging and future development openings for representatives;

2. It is a guarantee to raise the proficiency and profitability of workers;

3. To energize belongingness, camaraderie and commitments among representatives with the work;

4. To give feedback about HR arranging and possibilities to execute the arranging realities;

5. To recognize efficiently the need and prerequisites of some learning and preparing angles;

6. To encourage better and high work culture in the association;

7. To cultivate a positive connection among administrators and workers through a two-way correspondence measure;

8. To appreciate, perceive and remunerate and repay workers for the accomplishment of performance objectives in a more unbiased, straightforward and supported way.



(1) It makes an interpretation of corporate objectives into the singular, group, departmental, and divisional objectives, 

(2) It assists with explaining corporate objectives, 

(3) It is a consistent and transformative interaction where execution improves over a long time, 

(4) It is acknowledged on agreement and participation, instead of control or pressure. It energizes the self-administration of individual execution. It requires an administration style that is open and encour­ages two-route correspondence among administrators and subordinates, 

(5) It requires consistent criticism, and 

(6) It gauges and evaluates all presentations against concurrent objectives. It applies to all staff, and it isn’t essentially worried about connecting execution to monetary prizes.

An ACHIEVE model has been intended to assist supervisors with understanding why execution issues may have happened and afterwards to create and change methodologies pointed toward tackling issues. 

The components in the ACHIEVE model are: 

A – Ability (information and abilities of subordinates) 

C – Clarity (clearness of what to do) 

H – Help (authoritative assistance, support) 

I – Incentive (inspiration or eagerness of subordinates) 

E – Evaluation (instructing and execution input) 

V – Validity (of staff rehearses) 

E – Environment (outside factors that can influence singular execution regardless of whether he/she has all the capacity). 

In utilizing the ACHIEVE model, administrators should know and assess what each factor will mean for the present or expected performance of staff individuals for a given undertaking. Execution is supposed to be influenced by motiva­tion and capacity, job discernment or occupation understanding, and ecological and hierarchical help. The ACHIEVE model is expressed to influence execution by giving input (advising subordinates concerning how well they are getting along), and breaking down the legitimacy of staff practices like examination, preparing advancement, and excusal.

Top 6 popular performance management Tools

There are numerous sorts of Performance management instruments out there, yet here are five of the best ones for you to browse.

1. Workday 

Professionals: Opportunity chart, group execution, pay the executives, vocation interest, execution lattice, and ability cards. 

2. BambooHR 

BambooHR is an incredible performance management instrument for private companies and medium-sized associations. Its exhibition survey framework is made for the reclassified execution of the executive’s scene including successive registration. 

Professionals: 360-degree criticism, audit cycle following, self-evaluations, self-administration gateway, and pay the executives. 

3. Engagedly 

Professionals: Goal following, registration, social acclaim, peer publicly supporting, broad authorization controls, and joining with online media stages. 

4. UltiPro 

Pros: Individual advancement plan, group abilities, ability investigation, execution estimation framework, and worker perceptions. 

5. Halogen Performance 

Pros: Built-in LMS framework, far-reaching functionalities, multi-rater and remuneration module (on request), dynamic objective following, and companion examinations. 


Blog 3: 


How Managing And Measuring Employee Performance Drives Business Growth

Ongoing contact with employees reduces uncertainty, improves efficiency, and focuses everyone’s attention on company goals. As a result, better outcomes and profits are achieved. The essence of performance management is measuring and controlling employee performance, which is critical to your company’s development.


Measure and Manage Employee Performance

A crucial aspect of the performance improvement review process is assessing employee job performance in order to enhance skills and outcomes. Performance, job quality, adherence to company values, and teamwork are all common metrics.

Many people equate “work success” with the dreaded annual evaluation. However, performance management is about assisting an organization in achieving its mission and objectives by partnering with employees to continuously enhance their – and the company’s – effectiveness of:

  • Setting specific objectives and priorities.
  • Providing workers with ongoing input and support on their goal-related results.
  • Employee training programs that help them develop their skills and efficiency.
  • To ensure that expectations are met, rate employee performance more frequently.
  • Recognizing and rewarding performance that meets or exceeds standards, as well as linking rewards and promotion to predefined performance indicators.

Your company’s metrics should be behavioral, measurable, and objective, and they should make tracking employee progress simple.

Performance Management Drives Business Growth

It’s important to quantify the true catalyst of your company’s success: your staff, if you want to better understand what drives your company’s success. They are the face of your business, the people who make your product and/or support your clients.

The value of a company is generated by the successful execution of a centered strategy. Management is required to:

  • Create metrics to motivate and monitor employee development.
  • Set realistic objectives.
  • Employee output should be measured and monitored.

One of the most effective ways to invest in your company’s talent is to implement performance management. When workers are given the tools they need to build the skills they need to achieve your broader business goals, your company benefits from broad alignment and job satisfaction. The protocol is easy to implement:

  • Set attainable targets.
  • Establish goals for your staff.
  • Provide workers with the resources they need to achieve their objectives.
  • Review employee performance on a regular basis and corrective action when required.
  • Facilitate contact and provide input, praise, and appreciation for effective target attainment.
  • Develop incentives and promotions that are in line with your objectives.

To keep the performance improvement programme on track, you can measure it on a regular basis. To spot patterns and compare results, the results should be closely monitored.


Blog 4:


How Often Performance Review should be Done


It can be the most dreaded date of an employee’s 12 months – the day of your overall performance review. However, overall performance evaluations supply a splendid probability for employees’ to voice their viewpoint on the company. It is additionally a potential way of monitoring worker overall performance and discussing areas of improvement. Managing overall performance can be recommended to each the organization and worker as it encourages optimistic communication. So how regularly ought personnel have overall performance reviews? Read our information on overall performance opinions and the frequency they have to be conducted.


What is a Performance Review?

An overall performance evaluation is an approach employers use to measure, document and consider an employee’s performance. It is additionally recognized as an overall performance appraisal or overall performance evaluation. It is a probability for employers to become aware of an employee’s strengths and weaknesses, provide comments and set desires for the future. Traditionally, most employers evaluate overall performance on an annual basis. However, there has been a constant motion toward bi-annual and quarterly reviews. So is the regular annual evaluations the nice approach?

Perhaps not. In a latest survey, 67% of respondents noted they favored extra normal remarks alternatively than an annual review. However, many corporations nevertheless observe the formal annual appraisal process.

How Often Should You Conduct a Review?

There has been a current go away from annual reviews. There are many motives for this. One of which being recency bias, as managers have a tendency to focal point on activities happening in current months. A lot can take place in a year, and activities going on 12 months prior are regularly challenging to recall or are absolutely forgotten. Similar to this, employees and managers are much less probable to elevate troubles that arose 6-12 months prior. Ultimately, they are commonly no longer applicable or have on the grounds that have been resolved.

So which frequency is best? As a universal rule, most agencies habits overall performance critiques each 3-6 months. This continues employees’ centred and motivated and ensures comments are applicable and timely. It is additionally really useful as troubles can be raised early and modifications are made accordingly.

Moreover, it is really worth noting some employees’ may additionally want reviewing extra often than others. For example, if a worker is on the probationary duration or to make certain new personnel are on track.


Are Performance Reviews Mandatory?

The easy reply is no. There is no regulation that explicitly requires employers to assess their employee’s performance. Therefore, employers might also select to choose out of this usual appraisal strategy and may also use a greater normal remarks method. Regardless, most companies realize the cost in reviewing and managing worker performance. A worker is below a duty to take part in an overall performance overview if requested via their employer. This may additionally be exact in their employment agreement.


Tips for Effective Performance Reviews

Performance opinions can be difficult, in particular when the employee’s overall performance is unfavorable. Here are a few pointers outlining how you can get the most out of your overall performance reviews:

  • Ask the worker how they assume you as the corporation have performed
  • Offer practice and dreams for the worker to work on for the subsequent scheduled overall – – performance review
  • Ask the worker if they would like extra everyday reviews/feedback
  • Practice the ‘hard conversations
  • Use tangible, real-life examples to aid comments
  • ABC Bearing Ltd.
  • AC Nielson ORG-MARG
  • Action India
  • Alembic Chemicals Ltd.
  • Apollo Hospitals
  • Arthur Anderson Consulting
  • ABB
  • Astrazenica Ltd.
  • B. T. A. Cellular Ltd.
  • B. E. S. & T Ltd.
  • Bank of Baroda Staff College
  • Baroda Management
  • Batliboi Ltd.
  • Bax Global India Ltd.
  • Berger Paints (I) Ltd.
  • Bharat Heavy Electricals Ltd (BHEL)
  • Bharat Petroleum Corporation Ltd.
  • Birla Copper Ltd.
  • Blue Star Ltd.
  • BSES Management Institute
  • Cerebus Consultants
  • CR Seals India Pvt. Ltd.
  • Daimler Chrysler India Pvt. Ltd.
  • E. I. DuPont India Ltd.
  • Enercon India Ltd.
  • FAG Precision Bearings Ltd.
  • Fritolay India Ltd.
  • Globe Span India Ltd.
  • Godrej Industries Ltd.
  • Gujarat Alkali and Chemical Ltd (GACL)
  • Gujarat Communication and Electronic Ltd.
  • Gujarat Electricity Board (GEB)
  • Gujarat State Fertilizers Company (GSFC)
  • Hindustan Construction Company
  • Hindustan Zinc Ltd.
  • HPCL Vikas Refinery (HPCL)
  • Hikal Ltd.
  • IDBI Bank
  • Idea Cellular Ltd.
  • Indian Farmers Fertilizer Cooperative Ltd (IFFCO)
  • Indian Oil Corporation Ltd (IOCL)
  • Indian Oil Tanking Ltd (IOTL)
  • Indian Petrochemical Corporation Ltd (IPCL)
  • Indo- Burma Petroleum Ltd (IBP)
  • Indo-Gulf Corporation
  • Institute of Human Capital (IHC)
  • Intas Pharmaceuticals Ltd.
  • IT Preneurs, Jyoti Ltd.
  • JMDI Ltd.
  • Johnson and Johnson Ltd.
  • Kamala Dials Ltd.
  • Kanoria Chemicals and Industries Ltd.,
  • Keane India Ltd.
  • Kenstar WZ
  • Krishak Bharti Cooperative Ltd (KRIBHCO)
  • Kuoni Travel (I) Ltd.
  • Lakhanpal National Ltd.
  • Larson and Toubro Ltd.
  • Ma Foi Management Consultants Limited
  • MAJAN College
  • MICO India Ltd.
  • MIEL e-security Ltd.
  • NDDB Ltd.
  • Nilaka Consultants Ltd.
  • Oil and Natural Gas Commission Ltd. (ONGC)
  • OMAN
  • Reliance Industries Ltd. (The Biotech Division)
  • Reliance Petroleum Ltd.
  • Sarabhai Chemicals Ltd.
  • SIES College
  • SPANCO Telesystems and Solutions Ltd.
  • Spectronet Ltd.
  • SPG Solutions Pvt. Ltd.
  • Star Electronics Ltd.
  • Sulzer India Ltd.
  • Sun Pharmaceutical Industries Ltd.
  • Tata Atlas India Pvt. Ltd.
  • Tata Management Training Center (TMTC)
  • TVS & Sons Ltd.
  • Wartsila India Ltd.
  • Welspun India Ltd.
  • Yahama Motor India Pvt. Ltd.
  • Zydus Cadila Health Care Ltd.

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