Benchmarking PMS

Dear All,

We are a top Consumer Duarbles MNC, We want to benchmark our Perfromance Management system with other Organisations across different industries.

Can you all suggest some Companies in NCR which have good performance management system. We are in the process of refining our PMS system, recently we moved from Yearly Evaluation to Quarterly Evaluation.

We would like to benchmark ourselves with Different industries and learn from their experiences. Currently we are using KPIs/Objectives based evaluation system. The evaluation is done through an online system. Recently we have designed a system for Quarterly Evaluation to make it more objective evaluation.

Apart from this we would be happy to share our other practices which are one of the best and innovative HR practices.

I would appreciate if you can share names of few organisations with good PM practices or you want to benchmark with your own organisation please let me know.

Please mail me on [Login to view]

Regards,

Mohit Juneja

Hey Ppl,
So many reviews but no suggestions. What happen??? Is is a tough Question?? :-D
Regards,
Mohit Juneja

Mojit,
Hi!
There's nothing "tough" about your post. As a matter of fact I did not see any relevant question that is worth the attention of people that may want to do benchmarking with you because you have not shared details about the practices that you wish them to compare and/ or react to.
I suggest you discuss and show what you have so people can assess them versus what they have.
Right now, many members of this forum might be thinking that you are just actually trying to solicit for ideas where to start from. Isn/t it?
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting

Dear Llarena,

Thanks you for the reply and also i am sorry for writing back so late.

The basic idea for benchmarking is in terms of understanding Linking performance with Bonus.

We have completed with Role Profiling and KPIs setting exercise in the organistion. I am not sure how far this exercise would help. Though recently we have tried to link performance ratings with Bonus, but I would say we are not fully successful in this cause there is lot of dissatisfaction among employees regarding getting the right bonus. So we are looking at methodologies to link performance ratings and bonus.

As far as other HR processes are concerend we have few good practices like JW-5, Branch Ownership, Family Ambassador, Line Guardianship, Mentoring, Pizza Lunch, KDI (key DNA Index), Career Planning, Assessment Centres, etc for Employee Engagement, Employee Motivation, Open Communication.

I hope this would clarify your queries to some extent.

In case you require further information pls let me know.

Regards,

M:idea:h:!:t

Mohit,

Hi!

You are not alone in your predicament of trying to create a good methodology that links performance outcomes to rewards ---- that are acceptable to majority (if not all) of your employees.

Indeed, regardless of the beauty of your appraisal system, at the end of the appraisal period, when all the papers are in and processed, the question that HR must answer is: What's next?

Appraisals that are conducted for the sake of determining who are performing and who are not are worthless exercises and a waste of corporate resources. Hence, it becomes incumbent upon HR to create a wholistic system that will make their appraisal method meaningful and appreciated by their employees.

This is the reason behind the birth of Performance Management Systems (PMS). While the traditional appraisals are generally "one stage" medthodologies, PMS are multi stage systems that complete the cycle that many HR practitioners are looking for.

Hence, in our PMS, we have created the following stages that organizations are mandated to undertake when they buy them from us: Performance Planning, Performance Review & Assessment, Performance Conference & Feedback, Improvement & Development Planning, & Recognition/ Rewards/ Sanctions.

Indeed, if your company is only using a one-stage appraisal tool, then you are is still very far from the ideal set-up because you are merely doing the second stage of a PMS. Indeed, how can you expect a full understanding and acceptance of rewards if your system did not have the subsequent stages (#3-5) in place?

At any rate, granting that your system is doing something along those areas, and that your problem is simply "how to create a good and acceptable system that will rationalize the amounts given to different ratings" that employees get, then what should you do?

If this is your concern, I suggest that you use the Forced Ranking methodology that is popular among multinational companies. My PMS also uses this as part of the Recognition/ Rewards/ Sanction Stage.

The use of Forced Ranking methodology in Recognition/ Rewards/ Sanction is effective because it allows HR to rationalize the "limited budget" allocated by the company for a given period, and it provides you a "justification tool" in explaining why only "so much quantity" among outstanding performers were promoted/ given such increases.

In this methodology, each performance level (e.g. Outstanding, Very Satisfactory, Satisfactory, Unsatisfactory, Poor) must be allocated fixed "percentages share" whose gross cumulative value is equivalent to your available budget. Employees getting a certain performance level rating must get a rewad that is "not less than what the next performance level is allocated" even if they were ranked last in the ranking in that level. Otherwise, you will have a problem. This system must be implemented in the same manner in the subsequent performance levels.

This performance level allocation budget must be explained and understood by every employee ---- and this is best done in the Performance Conference & Feedback stage, after the appraisal stage is completed.

Moreover, Forced Ranking must only be used after the appraisal has been completed and the ratings are finalized. And, it must be implemented on a "per performance level" and not on a "corporate wide population" scheme.

And, there should never be an attempt to change/ modify the actual performance ratings given to employees by their immediate superior even if the employee is ranked last among a certain group of performers.

I hope I am able to make my point clear. This system needs a lot of details and cannot be explained sufficiently in a discussion format like this.

Visit my site for details: EMILLA CONSULTING |

Best wishes.

Ed Llarena, Jr.
Managing Partner
Emilla Consulting

(landline)
(mobile)