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.

Whar guidelines for framing and communicating performance feedback would you recommend to a manager about to conduct formal performance reviews ?

Performance Review is an annual or periodic process which helps employees to identify ways of improving their ability to work and output performance, in order to achieve the company’s goals and objectives, and also to provide staffs with personal and professional growth opportunities.

• Guidelines that are recommended to a manager about to conduct formal performance reviews for the first time are:

• Provides training with specific behavioral feedback to enable team members to improve their performance.
• Works with team members to reach an agreement on performance appraisal.
• Review the employee’s performance on a regular basis that is quarterly.
• Provides team members verbal or written feedback on what is their level of achievement in their jobs.
• Choose a friendly environment to convey interviews and make sure that there is no disturbance or interruption throughout the interview.
• Maintain eye contact with the interviewee throughout the interview.
• In every organization feedback is very important and is a useful tool that contributes to the success of the organization.

Feedback
Feedback form part of the communication process and need to be in a two way, from a person to a team, or Vis versa. It is also on the behavioral attitude that an individual has on his work environment and surroundings.

How to provide feedback?

• Effective feedback is specific not general.
• Effective feedback always focuses on a specific behavior, not on a person or their intentions
• The best feedback should be sincerely and honestly provided to help.
• Successful feedback describes actions or behavior that the individual can do something about.
• Whenever possible, feedback that is requested is more powerful. Ask permission to provide feedback. For example, say: "I'd like to give you some feedback about the presentation, is that okay with you?"
• Effective feedback involves the sharing of information and observations. It does not include advice unless you have permission or advice was requested.
• Effective feedback is well timed. Whether the feedback is positive or constructive provide the information as closely tied to the event as possible.
• Effective feedback involves what or how something was done, not why. Asking why is asking people about their motivation and that provokes defensiveness.
• Check to make sure the other person understood what you communicated by using a feedback loop, such as asking a question or observing changed behavior.
• Positive feedback involves telling someone about good performance. Make this feedback timely, specific, and frequent.
• The main purpose of constructive feedback is to help people understand where they stand in relation to expected and/or productive job behavior.
  
  
  Moreover, performance appraisal system also plays an important role in relation to communicating performance and framing feedback.

The performance appraisal system used by an organization can be done annually. The purpose of the review is for employee as well as manager, to aptitude performance from the past year relating to the specific responsibilities and objective of that employee. This gives the opportunity for managers to give feedback on the strengths and development areas that are summarized from that previous year. Employees must also use this opportunity to give feedback on how they can best perform and develop themselves.

Annual review period is an opportunity to communicate and work together to build unity in the workplace. Realistic plans may be made for the employee's development and growth. The supervisor and the employee review the job description standards and compare the employee's accomplishments against the standards set. The data comes from established performance metrics, employee self-assessment and customer or co-worker feedback from daily activities.

What type f training is required to make adequate use of performance management systems?

Training is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviours to enhance the performance of employees. For an organisation that newly starts implementing Performance Management System, the need to train their employees on the system is vital. All employees should understand the process, how it works and what is expected from them as an Appraiser or Appraisee. Therefore Training is required to make adequate use of Performance Management and training should be an ongoing process, not a one off decision.

• Why the organisation values performance appraisals and how individual performance benefits the organisation.
  Before implementing the Performance Management System in an organisation, all employees starting from the top until the bottom should have a training schedule throughout the year. The benefits and opportunities with this new system, is about retrieving the maximum output of each and every employee, in order for the organisation to be productive, efficient and profitable. Therefore with the help of HR, training will be organised in order to deliver instructions to both managers and employees in how to use and participate in Performance Management System.

• The structure of the process and its relationship with compensation
  Training structure and process with relation to Compensation need to be opened to all individuals within the organisation. Employees should know exactly what they need to achieve in terms of goals and objectives. They need to have a clear understanding of their roles and responsibilities in the organisation structure in order to be well performers and be rewarded accordingly. Consequently those employees, who do not perform as expected within the organisational standards, will have to bear the consequences, for example cancellation of bonuses, no salary increased, or no reward in terms of benefits. They should understand that the system is fair according to reward and recognition.

• Know how to collect suitable facts concerning job performance
  The managers will have to learn the whole process and one of the processes is to observe and analyse the job accomplishment and performance of their employees and collect valid evidence. This can be done by using appropriate tools and techniques. One can be having a log book where the manager will note all the good and bad performance of the employee and use this during the Performance Appraisal Interview. They can use memory aids to record information like behavioural diaries and critical incidents files or an electronic diary.

• How to conduct Performance Management Interviews
  When conducting Performance Appraisal Interviews, the subordinate should not feel threatened during the interview, he or she should feel at ease to express their views and to influence the interview. The Appraiser should be sympathetic, helpful when leading the Performance Management Appraisal Interview; he should invite participation of the employee and be supportive. All these skills cannot be acquired easily; therefore all appraisers should have training on this most important aspect of Performance Management. The training should cover the aspect of how to give constructive feedback to job holders which will be accepted by them. The way to give feedback will enable employees to develop themselves and perform effectively in their job. The appraiser should talk clearly about the good and bad things the employee had done and afterwards, let the give his or her point of view and discuss in a friendly manner.

• The meaning and application of the rating criteria
  Managers should be aware that the rating criteria have been worked using job description. They need to know how to rate employees regarding their job performance. There are some typical rating errors that managers should avoid when assessing their employees. They are:

1. Halo/Horn – The rating is based only on one aspect, not on the overall performance of the job holder.
2. Leniency /Strictness - The rater is either too easy or too harsh when rating performance.
3. Recency/Primary – The rater only remembers either recent or old events only.
4. Central Tendency – Rating all employees as average when individual employee performance actually varies.
5. Contrasts Effects – Instead of applying a common standard to all employees, tend to compare performance of one employee to another.
Obviously the managers won’t avoid these errors without being told, and through training they will learn and understand.

How to use Behaviourally Anchored Rating Scale (BARS)
The development of BARS and Behavioural observations scales will help to improve rating scale by placing descriptions of behaviour along a scale. The managers should be trained on how to do behavioural sampling and that forms part of their daily job, and from that will get positive outcomes for evaluations.

• Establishing performance objectives and measures
  Often the most difficult part of a planning meeting is finding appropriate and clear language to describe the performance objectives and their measures/ indicators of success. How to set objective should be understood clearly to Managers and training will eventually help to improve their skills. The objectives and the indicators need to be SMART: Specific, Measurable, Attainable, Realistic and Time-bound.

• Coaching and Counselling
  Managers should be trained on how to be a good coach and counsellor. The poor performers need to be coached and sometimes need help to solve their problems either work related or personal ones. Everybody doesn’t have this required skills, they need to learn how to develop them and use them with their employees.Through all these trainings Appraiser and Appraisee cannot conclude that the Performance Management System will not work in their organisation. They should be able to make adequate use of these trainings in order for the system to be a success.

Outline the importance of giving feedback.

As a manager or leader, part of the role is to give feedback to their team. Feedback is incredibly important to individuals and teams. We can say that feedback is a gift. We have to take a good advantage of it.

Why we need feedback?
Feedback allows the system to improve. In the absence of feedback, we assume the system is producing the desired results. It is similar when dealing with people. In the absence of feedback from your supervisor or peers, we assume I must be doing OK and continue along. However, since most of the processes we deal with have an imperfect component, there will be a need for constant adjustment in most solutions.

The feedback highlights the areas in need of improvement and the manager can make the necessary adjustments allowing the process to produce better result . When dealing with human being, this very simple act carries with it a strong emotional and psychological component that cannot be overlooked.

Positive feedback

• Positive feedback amplifies the signal and negative feedback will dampen the signal
• It reinforces our self-image as being close to reality. The closer that image , the smoother our interactions with other people. The more self-aware we are, the better we are able to judge on other people
• It helps employees know when they have done well. In so doing, you need to be specific, i.e what has been done well, and why it was useful
• Providing effective feedback is not an easy task. If not handled properly an employee could feel that they have been personally attacked and their feelings have have been hurt.

Negative feedback

We prefer positive feedback and we don’t like negative feedback. But there are more useful data in negative feedback rather than there is in positive feedback. Thus, it’s time to change about how we feel about negative feedback.

We must always remember that:
NEGATIVE FEEDBACK= IMPROVEMENT OPPORTUNITIES

Feedback guides us on the track of improvement in order to achieve our targeted goals. There are many ways to respond to feedback. Some ways simply don’t work. For example:

1. Giving in and quitting
2. Getting mad at the source of the feedback
3. Ignoring the feedback

These three examples given above just don’t work. We all know people who tune out everyone’s point of view but their own. They don’t want to hear anything anyone else has to say. Sad thing is feedback could significantly transform their lives. We must always keep in mind that feedback is simply information, you don’t have to take it personally. Just welcome it and use it. When asking for feedback, most people will not voluntarily give you feedback. They are as uncomfortable with possible confrontation as we are.

Feedback for improvement
Providing feedback for improvement can provide guidance and support when people are not performing, as they should. People need to know that was not done well and why. But most importantly, they need to know that they can do to improve their performance.

Reasons why feedback is important

• Without feedback mistakes go uncorrected, good performance is not reinforced and clinical competence is not achieved.
• Employees want and value feedback, both on that they are doing well and on what needs to be improved.
• Effective feedback can help to identify learning needs, accelerate learning and offer options for future performance.
• Encourages employees to be actively engaged and take responsibility for their own performance.
• Help employees to be able to recognise, evaluate and discard or include new ideas in practice.
• Provide information about current performance that can help learners correct misconceptions, improve performance in future tasks, and continue positive behaviours
  Models for employees that ongoing feedback and continual learning are part of the content, process, values and motivation.

Feedbacks need to be balanced. It is always a good idea to start a feedback session by starting with positive performance of the employee. Feedback should be aimed at creating actual change and helping employees how to continuously evaluate their own performance.

What is performance management ? What is the difference between performance management and performance appraisal?

Performance management is the practice of actively using performance data to improve the organization's health. This practice involves strategic use of performance measures and standards to establish performance targets and goals, to prioritize and allocate resources, to inform managers about needed adjustments or changes in policy or program directions to meet goals, to frame reports on the success in meeting performance goals, and to improve the quality of management and organization practice.

Performance Management is an ongoing dialogue between manager and employee that links expectations, ongoing feedback and coaching, performance evaluations, development planning, and follow-up.

Why performance management is so important within an organization?

• Enhanced employee performance in the organizational context requires more organizational support in terms of goal setting systems, learning/training systems, appraisal systems and rewards systems in addition to mere self motivation of the employees. A well designed and well implemented performance management system fulfils these requirements.
  
• In globally competitive environment there is a need for continuous improvement of the performance of the organization which in turn depends on the continuous improvement of the performance of the employees year after year. Performance management aims at that.
  
• Performance management system makes performance appraisal more objective and useful otherwise, when the traditional performance appraisal carried out in isolation it may prove to be counterproductive.
  
• Performance management focuses the efforts of the entire organization and particularly those of its human resources to the ultimate goals of the organization.
  Every organization should customize it to its specific objectives and requirements as different organizations have different policies.
  

What is Performance appraisal?
1.Appraising the employees on how well they did in the past period, say for past six months to a year.

2.Appraising the employees for their potentials and achieved goals.

Why should we do performance appraisal?

• To find out the levels of performance of the employees by deciding and awarding appropriate motivational packages to the employees in terms of recognition; salary raise, promotion, special rewards, bonus, profit sharing, stock options etc.
• To differentiate the competency gaps of the employees as compared to what competencies they should have. This helps in training and development needs identification.
• To identifying the areas of weaknesses and strengths and working out appropriate interventions for the employees for their training and development.
• To increase in improving employees' effectiveness and efficiency.
• To work out additional development interventions for employees like job rotation, job enrichment, transfers between various sites/offices, foreign assignments etc.
• To develop career progression of the employees based on the analysis of their past performance and future potentials.

What is the difference between performance management and performance appraisal?
Performance Management is a new name being given to Performance Appraisal system. Here the thrust is on management of performance by planning, reviewing and developing it and not just judging the performance. The performance targets are set by superior subordinates and a quarterly review of the employee’s performance is undertaken to correct the shortcomings identified and accordingly take appropriate action to review problems encountered. In previous performance appraisal system, the performance was merely judged at the end of the year and the manager assumed the role more of a judge than a mentor or a coach. The method used was not appreciated by the employees and hence it was creating a growing frustration and feeling against the system. In Performance Management the motive is to manage the performance of every individual throughout the year and not just judging it at the end of the year. The main aim is development of performance in order to reach to the level of excellence.

Performance appraisal is but only one part of the bigger process of performance management. So, the short answer is that performance appraisal (annual review, employee review) fits under performance management.

What's important to understand is that performance appraisal, on its own, should serve only one purpose otherwise their value is seriously undermined. For example, an employee who may have shown vast improvement in performance yet still only be above average. The ratings allocated to him under reward and performance reviews will be different from the potential review. (The individual’s potential is still limited, despite the improvement in performance).

Is it possible to conduct meaningful performance appraisal without accurate and up-to-date position descriptions and performance indicators?

Before answering the above question, lets us find out what is performance appraisal and performance indicator.

Performance Appraisal.
Performance appraisal is usually considered to be the process and time when manager and employee sit down to review the employee's performance over the last year, or month, or even shorter time spans. Most of the time people think of it as a once a year event, which is a recipe for disaster.
During performance appraisal meetings, a number of methods can be used to document, or record, or summarize performance discussions, ranging from narratives, rating scales, critical incident summaries, etc. Usually there is an expectation that some sort of paperwork will result.

Aims of performance appraisal.
Generally, the aims of a performance appraisal are to:

• give feedback on performance to employees.
• identify employee training needs.
• document criteria used to allocate organizational reward.
• reward such as: salary increases, promotion, disciplinary actions, etc.
• provide the opportunity for organizational diagnosis and development.
• facilitate communication between employee and administration
• validate selection techniques and human resource policies to meet federal EEO requirements.

Performance Indicator.
Performance indicator is defined as a measure of performance.It is quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.

Example of performance indicator.

• A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers.
• A school may focus its Key Performance Indicators on graduation rates of its students.
• A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute.
• A Key Performance Indicator for a social service organization might be number of clients assisted during the year.

Based on the explanation given above about performance management and performance indicator, it clearly shows that performance appraisal cannot be meaningful without accurate and up-to date position description and performance indicator.

Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by chairman or company owners, depending on the size and structure of the organization.

Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. It provide a formal, recorded, regular review of an individual's performance, and a plan for future development.

What is a code of conduct?

A code of conduct can be defined as generally accepted rules that govern and regulate behavior relationship and action of members of an organization. Its objective is to promote a higher standard of practice within the organization.

Writing a code of conduct for a corporation may be a difficult task in the beginning. The guidelines should be as impartial as it can go. It should never be pro-company or pro-employee alone. A definite balance between the two should be observed. In writing a code of conduct, the goal is to promote humanity and harmony between individuals' in spite of the difference in race, background, and beliefs.

Guidelines for developing a code of conduct.

A code of conduct should:

• Include Values, belief and expectation rather than facts.
• It should also be based on the organization’s values which are the basic upon which the code of conduct will grow.
• It should be simple and precise so that everyone can understand.
• Incorporate opinions from members of the organization so as to ensure rights of the document.

A code of conduct can be brief or comprehensive depending on the objective. It should address a wide variety of issues.

Three key factors when writing a code of conduct.

The choice of topic to be included in a code will be influenced by three factors:

• What are the principal laws and regulations applicable to the organizations?
• What guidance do we need to offer our intended users?
• What values and principal do we want to impart?

Management should ensure that all employees get a copy of the code.There is also a need to identify ethical principles that are most relevant to the organization.

Some of the values that need to be considered in drafting the code are:

• Integrity
• Justice
• Abuse of office
• Discrimination
• Conflicts of interest-policy which clarifies a conflict of interest is what staff should do in case of conflict and declaration of interest.
• Employee health and safety
• Maintaining records and information
• Privacy and confidentiality
• Punctuality, absenteeism and desertion
• General conduct and behaviour.

Moreover, certain company can have other rules and regulations that suits its need and unique circumstance.
The purpose of a code of conduct is to capture the spirit of the organization and to protect its culture.