By: Dipendra Limbu, Sadiksha Thapa, Sumana Bajracharya,

Prasen Shakya & Anurag Ranjitkar

Outline of the Presentation
1 Introduction to Performance Management
●

2 Current Trends in Performance Management

●

3 Literature Review
●

4 Existing Practices in Nepalese Organizations

●

5 Issues & Problems

●

6 Way Forward
●
What is

Performance Management
Why do we do it ??
• It’s a managerial system and a continuous process in which
managers and employees work together to plan, monitor &
review an employee’s work objectives and overall contribution
to the organization.
• It is not just an annual performance review
 Concepts of Performance
• Traditional Concept
Conformance to organizational
norms, rules and processes
What is Performance?
A set of outcomes,
produced on a specified job,
during a specified period of time,
with the use of certain competencies
of the performer
• Modern Concept
Achievement of job objective, output
or result
An Example, Ojaswi working for
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Get 5 sponsors,
member of Voice Club,
within 2 weeks, by August 21,
communication, networking.
 Foundation of Performance
People perform better when they

Enabling
Have Goals Participate
Conditions

Appraisal Development Rewards

 Current Trends in
Performance Management
 Disappearanc
e of
Performance
performance
Rise
Conversations
Focus
of
Current professional
on gendernot
ratings
management
annual
development
trends inbias
reviews
software
performance
management
 Performance Ratings Continue to
Disappear

• Motorola, Deloitte, Microsoft and Adobe

• breeds competition leading to a less productive workforce
overall
• Instead use:
• Coaching  
• Separate pay reviews
 Conversations Replace Annual
Reviews

• Check-in Meetings 
• Regular and informal meetings / conversations
• Deconstruction of goals
• Align goals on a quarterly basis
• Easier tracking
• Better sense of fulfillment
 Professional Development’s Rise
to the Forefront of Engagement

• Heavy emphasis on leadership development

• 63% of workers aged 34 and below from all over the world
complain they aren’t being properly trained for
commanding positions at work (Deloitte survey)
• Employee growth opportunities will have a direct
correlation to turnover rates (CIO.com)
 Focus on Gender Bias

• Research suggests women are assessed differently, affecting

their advancement (Wall Street Journal)
• Hollywood actresses paid less than their male counterparts
• Women’s reviews are more likely to include critical
feedback (Fortune)
• More managers will focus on providing fair, unbiased
comments when evaluating employee performance
 Performance Management Software

• Increasing use of software using cloud

• Speeds up:
• tracking of employee progress
• Process of HR
• Pulling reports for developmental needs
• SilkRoad, Halogen TalentSpace, Namely, Oracle Taleo, etc.
Literature Review
 The Impact of Performance Management System on Employee performance,
Zhang Ying Ying,2012

PHASES IN PERFORMANCE HYPOTHESIS CONFIRMED OR NOT CONFIRMED

MANAGEMENT SYSTEM

Developing and Planning Developing and planning phase Not confirmed

Performance will lead to better employee
performance

Managing and reviewing Continuous communication Confirmed

performance within an organization will lead
to better employee performance

Rewarding performance Personnel development will lead confirmed

to better employee performance
Impact of effectiveness of performance management system
on employee satisfaction and commitment (2012), Anu
Gupta, Devina Upadhyay
Findings
• significant impact of effectiveness of performance management system on
employee satisfaction and effectiveness of performance management
system on employee commitment.
• PMS and Satisfaction are highly correlated with each other,
• no major difference for the satisfaction level among people from different
age group
• no major differentiation as far as age is concerned on the level of
effectiveness of performance management system and commitment.
• Maximum commitment level shown by the age group of 0-25 years and
max effectiveness of performance management system found in the age
group of 25-35 years.
What are the Most Efficient and Effective Practices
Surrounding Performance Management?(2013), Meghana
Komati, Yingya Zhou

FINDINGS:
In order to optimize the performance management
system,

Training for
Start at the top managers and
employees

Appraise the
Simplify the system
Performance Management Challenges in IT Industry (2014), Anbarasu
Thangavelu, Dr. J Clement Sudhahar

Internal factors External factors

• Size of the organization:
• Experience of Managers
• Performance Biases of
Supervisors:
• Economic situation:
• Differences in Education
Standards:
• Customer Expectations:
Performance Management System of Sipradi Trading Pvt. Ltd,
by Kumud Singh, Megha Amatya, Pranay Shrestha, Shilpa
Shrestha and Sweta Rana
Findings:
Strengths of current PMS Flaws in the existing System

• Uses formal procedure and • Done on an annual basis

considers it as an important HR • Same method used for all
function unlike other organizations
in Nepal. • Rating scales not defined

• Use of systematic format • High performance standards

• Transparency
• Action plan based on performance
Performance Management System at Kumari Bank Ltd.
By Ibha Baidya, Pranu Singh, Rabindra Shrestha,
Sandeep Agarwal and Sandeep Goyal (MBA Fall 2006)
• Does not have any mechanism for
formal appraisal interview.
• Leniency and strictness error in job
appraisal system
• Reliance only on supervisor and self
assessment for performance
appraisal.
• Needs to have a formal performance
agreement with employees
 Existing Practices in
Nepalese Organizations
2015-2016
(FOCUS: Performance
Appraisal)
 Small Study conducted to understand
Performance Evaluation
Organization
Himalayan Distillery
Panchakanya Group • Presence of performance evaluation
NIC Asia system
Laxmi Bank • Interval of the performance
Butwal Power Company evaluation
Dabur • Authority for performance evaluation
Asian Paints of the employees
Unilever • Internal appeal mechanism for
Surya Nepal employees dissatisfied with
Sipradi performance evaluation
Lomus Pharmaceuticals • Purpose of performance evaluation
Nepal Telecom
 Aggregate Results (Due to confidentiality)

66% 100% 70%

all the employees Their supervisor who Yearly

including the performed the task of Performance
employer’s performance along Appraisal
performance was with their
evaluated. departmental head
and divisional
manager.
 Aggregate Results (Due to confidentiality)

80% 80%

Chance to go for Performance Appraisal

Internal Appeal for promotion and
Mechanism training needs.
 Issues and Problems:

Lack of strategically
functioning HR
department:

Lack of Performance
Management System
Issues and Problems :
Performance Planning and
constant Monitoring:
• Lack of formal planning of
performance
• Lack of regular
communication with
employees on their
performance
 Issues and Problems:

Appraisal Problems:
a. Once a Year Appraisal System
b. Lack of transparency in appraisal
unlike Google
c. Feeling of resentment due to
labeling of “outstanding” and
“poor”
d. Appraisal of Person than in a
team
 Issues and Problems:

Reward:

Lack of performance based

pay missing.
 Issues and Problems:

Developing Performance:

Administrative Role of
Performance Management
than developing.
Way Forward
 Yearly goals are
a thing of the
past.

Weekly check-in.
Quarterly project
performance snapshot.
Annual report

too batched for

Year-round a real-time
Journaling world

regular In the moment

check-ins conversations
“Throw it out; punitive evaluation has no
place in a quality-focused world.” 
Activity
Outcome
Time
Commitment
Relative
Individualperformance
performance
DefineInflation
Grade impact
What raterIdiosyncratic
would do rather thaneffects
rater what s/he thinks 
 Sample Questions:

• Given what I know of this person’s performance, and if it were my money, I

would award this person the highest possible compensation increase and
bonus.

• Given what I know of this person’s performance, I would always want him or
her on my team. [measures ability to work well with others on the same five-
point scale].
Consistently observed Everybody in contact with this person would observe excellent in this area
   

Observed Please continue to focus on it so that it is observed constantly without

  exception
 
Observed sometimes Infrequent but there is clear development opportunity here
   

Seldom observed Needs immediate improvement

   

Goal Achieved All milestones and success measures have been achieved

Active Goal Still in progress, some milestones are achieved

Goal Not Met Timeframe for goal has not been met; some or all milestones have not been
met

Goal Deferred For timing or business, his goal has been deferred
How can we make this an instrument of motivation rather than of control?

Future Failure Peer to peer

changing
rewards reward recognition

VIP Appreciation
You earned it
tactics like
Bravo! Reward thank-you

Return to
work program
• More Emirates mommies returning to sky after finishing maternity leave
and their return to work training