Ans: An effective PMS will include the following critical components. First, the organization would develop and communicate the business strategy to the whole work force. Next, each employee would be helped to understand his/her role in the organization strategy. Third, individual jobs would be designed to support strategy. Next the purpose of PMS would be clearly established and communicated, and job analysis would be conducted to identify the KSOSs for each job. This would be followed by developing and communicating performance expectation and standards to each employee. This would be supplemented by feedback and coaching and counselling as necessary. The next step would be to train both supervisors and subordinates in the policies and practices of the organization PMS. Finally, the organization should ensure that raters conduct evaluation in a timely fashion and understand that the PMS is not etched in stone and should be reviewed and revamped as necessary.

Ans: An organizations culture is the key determinant of the success and failure of all its HR system including its PMS. The reason for this is clear if the organizations culture has created high levels of trust, then the employees will believe any communication from its management. If, however, trust levels are low individual employees will not trust their supervisors or organizational systems. As such trust and transparency are key to the success of PMS.

Ans: It is absolutely critical that every employee is made aware of the organization current strategy and his/her role in support that. This helps an individual understand he/she is supposed to do and why. Once an individual expected of him/her, he/she can plan the work better and ask for required resources/support from the organization. It is very important that the conversation be initiated by the individual’s direct supervisor and includes an explanation of the specific expectation from the subordinate and the justification behind the actions expected of him/her. This discussion should also include an explanation of how the individual’s job role fits into the larger organization strategy.