When developing a PMS, managers need to choose between various options or features of design available to them. Outline at least four such options.

The Performance Management System is one of the most important systems in an organization. I t is a process by which performance is tracked, regulated and managed. It doesn’t happen overnight to set up a good performance management system as there is a need to consider and choose its design and plan how it will work effectively to evaluate employees. There is an old African proverb that states, it takes a village to raise a child, but in the context of performance management process it can be said that it takes a whole organization to manage individual performance. To achieve a successful process, the managers should outline performance measurements and standards, establish a development plan for the employee, develop coaching and administer improvement and provide rewards for improvement.

Performance measurements and standards
When job descriptions have been designed, performance standards should be established to be able to describe what constitutes below-average, average and above –average performance. By analyzing the measuring performance system, this can have different meanings for each and every employee; even they work for the same organization. The common methods of evaluating skills and knowledge, competencies and performance are: the rating scale, the behaviorally anchored rating scale (BARS), the management by objectives (MBO) and the 360 degree multi-rater. Whatever the performance metric is chosen by employees and managers it is important that they observe, measure and improve performance. Inconsistent and contradictory measurement can lead to confusion and mistrust as the employee may feel the system is unfair or biased.

Establish a development plan for the employee
An effective performance management system should create a schedule and project development plan for each employee. By implementing, administering and utilizing an organization performance management system, it will require new roles and responsibilities, not just in Human Resources department but throughout the organization. Even when assuming that performance is satisfactory, there is need to establish a development plan with every staff, so that for him to grow professionally according to his expectations, hence, attaining the organization’s objectives. Last but not least, the supervisor needs to be flexible according to the new structure that the organization has programmed for his employees, for example: special permission allocated for further studies at University or other private learning institutions, sponsoring of specific courses related to their jobs and assisting those doing further studies, by providing them with books and assistance from already graduate staffs.

Develop coaching and make adjustments when there is poor performance
Performance management is an ongoing process. There must be continuity in establishing and communicating the organization’s objectives. To be able to keep that path, the managers and the employee need to focus on feedback and set up constructive and positive suggestions for the well being of the organization. The evaluator may use the 360 degree performance feedback system to provide a broader approach of performance, as it incorporates feedback from the employee’s peers, customers, and people who may interact with them. However, when employees are not to the standards set by the organization, the supervisor will have to determine the reasons for the gap between standards and performance. If the weaknesses are related to work then, the supervisor will have to take appropriate actions to correct the situation. Also the supervisor may tackle the problem by readjusting the employee work schedule for example by giving him or her less interesting file to work with. Managers and supervisors need to provide a close guidance and monitoring, in order for the employees to feel secured and motivated in their day to day work, such as to be efficient and effective.

Provide rewards for improvement
When employees perform well they should be compensated. Rewards usually keep morale of employees high and improve their loyalty to the organization. By rewarding employees, this will encourage them in going an extra mile and motivate them to achieve their goals. Organizations can motivate and reward their employees by using both the extrinsic rewards which comprises: pay increase, promotion, working conditions and the intrinsic rewards which are associated with the satisfaction derived from the work itself: the job content, praise, recognition. Nowadays, companies acknowledge hard work of their staff by using the reward system as they want to attract and retain valuable employees.

Hence, by using some of the methods outline here, organizations can offer a performance management system that can significantly improve the appraisal process. The employees will be praised and feel better in participating in the performance management process. Finally, this will have a positive effect on the overall PERFORMANCE of the organization.