STAR Industries
Performance Management Policy
15- Jan-2016
Performance Management Policy 1
Reason for Policy
It is imperative that STAR Industries, as a company, keep and maintain a working performance evaluation and management system to control and help its rising workforce achieve the company’s collective goal. This system hopes to help its employees analyze themselves and help them create a team spirit for achieving their long term goals.
Policy Statement
STAR Industries is planning to conduct a performance evaluation program which involves the constant analysis and a review of its workforce focusing primarily on improving the employee skills as well as improve his/her commitment towards the company. This analysis scheme shall affect the future performance rewards of its employees.
Scope
People Affected: All STAR employees, including but not limited to, staffs from sales, finance, HR, manufacturing, marketing, and operations shall be affected by the new Performance Management System. It is imperative that these employees have a working knowledge of the system.
Policy Terms
The policy terms include 1. Performance Goals: Each company employee need to be briefed about his/her individual as well as organizational goals in relation to STAR Industries. 2. Career Development: A standard outline of how the employee’s career shall be affected by the results of the PMS should be laid out.
Procedures
This PMS aims to manage and assess its employees through four different steps or phases. They are listed below (Georgia Tech Resources, p.2). 1. Planning Phase: A globally accepted term, SMART, which includes Specific, Measurable, Achievable, Relevant, and Time based, parameters are set for evaluation in a performance period. 2. Communication Phase: This phase includes the productive conversations between the manager and his employees. 3. Evaluation Phase: STAR Industries’ employees shall be evaluated according to the goals and objectives that have been laid out to them and on how far they have achieved that goal. This is the longest phase where the duration of which could depend upon the company decision whether to do the analysis on a half yearly basis or quarterly. 4. Performance Review Phase: This phase involves the employee and the manager where they have a sit down to discuss the results of the PMS. If any complaint from the employee rises, it is to be duly noted and documented for future reference. The situation for such a complaint is analyzed and rectified. 5. Rewards and Incentives: At the end of the review phase, the company may provide incentives or bonuses decided by managerial discussions or mark the employee for promotion.
Parameters for Analysis
These are the basic performance parameters to be recorded and marked for evaluation. The parameters for analysis need not be limited to these. It is fairly up to the HR and management of other departments to agree upon further extended parameters that could be useful in employee evaluation. 1. Performance Index: This is based on the employee performance in achieving the objectives and goals set out for him/her. If the employee has reached only half of his performance goals, his Performance Index is .5 or 50%. 2. Degree of Performance: It is based on the manager’s review on the employee’s efficiency. For example, if he had completed two of his four goals, the degree of his perfection is measured is 50%. 3. Interpersonal Skills: This includes the communication skills of an employee. 4. Professional Knowledge: This parameter measure the employee’s knowledge in the field of his work. 5. Decision making: The employee should be able to interpret data provided to him, make inference, and choose the most appropriate course of action without depending on his/her supervisor. 6. Self Evaluation: This is a provision for self explanation and grading. 7. Punctuality, Honesty, and Attendance: These are just basic qualities that could be analyzed without complication.
Rating Scheme
The rating scheme could be finalized after clarifications are done in the evaluation system and further inclusion of parameters. It could be using a number system or a grade system. That is, if the performance of the employee is just par, he/she could be rated 5 out of 10 or given a pass grade. If the performance is more than satisfactory, the rating could be above 5 and before 8. This system of valuing an employee can be helpful while using a computerized scheme to calculate the overall performance of an employee (Housing Provider Kit).
Responsibilities shared in PMS
1. HR Management: They shall be responsible for the maintenance, evaluation, and assessment of an employee on a regular basis. They shall be responsible for proper documentation and storage of employee details and evaluation results. They should be deciding on the programmes (such as training, motivational drives, etc) that could be arranged to improve motivational or commitment problems among the employees. 2. Other managerial staffs: They shall be responsible for making sufficient steps to avoid misinterpretation of data. They shall be responsible for communicating with the staff or employee. They should be also in charge of mentoring all the employees under them.
Works Cited
“Performance Management Policy”, Georgia Tech Resources 2010, Web, Jan 9 2016, Print.
“Sample Performance Management Plan”, Housing Provider Kit, Jan 2016, Web. 10- Jan 2016, Print.
