Performance Management System (PMS) Overview

We design flexible and transparent performance management systems that are tailor-made to your organisational goals, job types, and performance standards.

Performance Management System (PMS)

An effective PMS not only evaluates employees’ performance, but also evaluates their skills, competencies, growth, or lack thereof. When used like this, the PMS has a strong bearing on how employees grow in their career and what kind of skills or behaviours we build in the organisation to get ready for tomorrow’s marketplace.

2 Constituents of Performance Management

  • Process – These include a step-by-step, interconnected sequence of events that need to take place at a specific time, in a specific format. It connects the granular parts of each employee’s performance and goals to the large organisational goals and strategies, ensuring a well designed performance management system.
  • Information System – This facilitates a seamless and timely interaction between different activities and multiple stakeholders to ensure that the performance insights received are accurate, fair, and as comprehensive as deemed necessary.

Wondering if your PMS processes and information systems are helping you build a fair and competent workplace?

Get an expert’s view today.

Why should organisations invest in building a strong and effective PMS ?

An effective PMS facilitates an effective delivery of strategic and operational goals.

Organisations with strong performance management and evaluation systems see a distinct needle movement in:

  • Retaining and rewarding high-performing employees with a good performance management system
  • Topline and bottom line impact through improved performance and employee morale
  • Employee engagement since employees feel connected, listened to, and noticed
  • Building a meritocracy driven culture since growth and career decisions are transparent and performance-based

The NamanHR Advantage

At NamanHR, we’ve designed and implemented Performance Management Systems for organisations across sizes, industries, and locations.

Why should that matter to you? Because this means we don’t come to you with a high-ticket, plug and play, cumbersome solution. We come to you with a multi-industry exposure that helps us quickly get to the root of what your PMS should look like. As a result, we design the most practical, impactful, essential performance management system that helps you get the best out of your workforce, making it the best performance management system in India.

Download our comprehensive brochure for optimized productivity and success with our cutting-edge Performance Management System!

Our Approach

It is a well-articulated process that goes through various stages

  • Stage 1


    Our team of PMS experts dive deep into your organisational structure, job types, competencies if any, and performance standards—within your business and your industry—to design a resource performance management approach.

  • Stage 2


    Armed with these findings and your business needs, we map the path between your desired, suitable PMS and the existing framework. Each segment and process therein is meticulously designed along with your stakeholders, ensuring a performance based management system.

  • Stage 3


    Our team conducts a thorough orientation and training for each of your stakeholders and PMS champions so that they are fully onboarded to the new performance management system in the IT industry.

  • Stage 4


    As your PMS champions roll out the new systems across locations and geographies, our team provides live support and guidance to ensure seamless, fool-proof implementation.

Few Interesting Facts about Modern Performance Management Systems

  • 01
    80% of the rising generation wants instant gratification rather than a formal review:
    They prefer to be awarded when the work is done rather than waiting for 12 months for an annual review. The duration between them is really long and makes half of the people forget about it.
  • 02
    90% of performance reviews are mentally exhausting:
    A person starts to doubt themselves when the results only depend upon recent activities. According to research, when a person is not understood in the workplace, it demotivates them and impacts their brain function.
  • 03
    Performance reviews are satisfactory for only 5% of HR leadership:
    In actual fact, 95% of managers are displeased with long-established performance management customs.
  • 04
    51% of employees believe that annual reviews are grossly inaccurate:
    Considering the preponderance of events that occur within a space of 6 months to a year, it may not be out of place to say annual reviews may be irrelevant in this regard.
Hence, performance management system are used throughout the year to help enhance communication and documentation between employees and managers. They help the organisation achieve set goals and improve the skills of all employees, ensuring team high performance and an overall high performance environment.

Engage and inspire performance excellence in your people to achieve the results that matter to your business. NamanHR can show you the way.

Client Success Stories


What are the components of a performance management system?

Most people make the mistake of addressing performance management as performance appraisal. In reality, the performance management system is much bigger and of more value than a performance appraisal. The components of an effective performance management system include:

  • Performance Planning (may include employee objective or goal setting)
  • Performance Diagnosis and Coaching
  • Data Gathering, Observation and Documentation
  • Performance Appraisal Meetings
  • Ongoing Performance Communication

What is Performance Appraisal?

A performance appraisal is usually conducted annually, semi-annually or quarterly. It reviews an employee’s job performance and contribution to a company. Also, a performance appraisal evaluates an employee’s achievements, skills and growth, or lack thereof. Most companies use performance appraisals to give employees feedback and also to make increment, bonuses and termination decisions.


vadilal logo