Stages in the Development and Implementation of a Performance Management System

Performance management is a strategic process and an integrated approach. The process involves an ongoing dialogue between the supervisor and the employee for setting goals which are achievable and contribute in the direction of fulfillment of the organizational goal. The main objective of performance management approach is to proactively manage employee’s performance for accomplishing organizational goals by attaining a desired level of performance. It believes in linking the performance plans of an organization with the strategic vision and identifying the major performance indicators and KRA’s for enabling the employees to achieve the expected outcomes for their organization.

Any performance management process broadly involves three stages and these are:

  1. Goal Setting and Motivation which is normally done in the beginning of the session.
  2. Encouraging Stage which is normally undertaken when the employees get involved in the process of pursuit of the assigned task.
  3. The final stage is the Stage of Rewards and Consequences which is applied after the completion of a task.

Performance management is always a forward planning process which is developmental and facilitative in nature as it involves the team leaders and the employees in a joint process of decision making for fixing smart targets. It aims at breeding performance orientation in the employees for developing high performance organizations. The entire process involves identification, evaluation and development of the work performance of the employees through effective management practices like continuous coaching, feedback and regular communication. The process includes the following stages:

  • Work Planning and defining expectations
  • Monitoring performance
  • Developing the weak performance areas
  • Performance rating
  • Rewarding good performance

Performance Management Process in Action Aid

The performance management system of Action Aid aims at continuous development of the staff members and recognizing their contributions, assessing the future potential and also the development needs which may be professional as well as personal and facilitating a shared understanding of mutual accountability through giving and receiving feedback. In Action Aid 360 degree feedback is performed which means feedback is elicited from multiple sources on key performance areas of the employees which are competency, behavior and attitude, values, work life balance, major achievements and areas of improvements. The performance management process in Action Aid passes through the following stages:

  1. Identification of the Key Result areas both at the organizational level and the regional/unit level.
  2. The staff members settle their work plans which are derived from the KRA’s in the departmental level and also from the framework of their job descriptions. These work plans are laid down each year for the following year.
  3. After defining the work plans, the staff members describe the key performance indicators which may also include some qualitative dimensions which can be measured in quantifiable terms and ultimately form the basis of assessment for the appraiser.
  4. Identification of those set of behaviors and attitudes which are critical for effective performance.
  5. Annual review of performance of the staff members against the plans and the behavioral dimensions which is done in a structured format and also the mid reviews are performed at the regional or the departmental level.
  6. Identification of training needs of the staff members followed by finalization of a new action plan for the ensuing year.

In Action Aid, performance development is treated as a continuous process and a lot of importance is given to the feedback mechanism.


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