Top 4 Stages Every Organization Should Adopt To Tailor Your Business Through PMS.

Strategies Every Organization Should Adopt

Table of Contents

PMS plays an important part in every Organization, this helps towards growth and expansion. PMS stands for Performance Management System, a robust strategy adopted by companies to align Key Responsibility Indicators of their employees to business goals.

Importance of PMS
Top 4 Primary Stages of Performance Management System

  1. Job / Role Analysis
  2. KRA/KPI
  3. Quarterly Appraisal
  4. Gap Analysis


It’s an entire process which comprises of  appraisals, defining skills and knowledge required for a particular role, doing gap analysis between what is expected and what exists, providing feedbacks ,providing training programmes, appreciate ones performance through bonus and variable pay outs. It also offers various tools for measuring Individual and Organizations growth in any sector. It’s adopted according to the nature of the business and goals.

  • PMS is a road map given to the employees comprising of KRA, which stand for Key Responsibility Areas and KPI – Key Performance Area
  • It’s a system to keep in track how each role is contributing towards the bigger goal and objectives of the company
  • It helps to keep employees of an Organization focused, aligned and motivated  
  • Its recommended to customize according to companies need and to not follow the trend. Its main objective is to align the individual goals to Organization goals.

RELATED TOPIC : Why you should be conducting Performance Appraisals? Top 5 Reasons

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Importance of PMS

Employees are the most important resource of any Organization and it’s very important to manage this resource to its best potential.

  • PMS is not a one time process, but a series of intervention in making a system as robust, effective and efficient.
  • An Organization lacking  PMS is not taken seriously, as it’s not considered to be  employee growth oriented and fails to attract best resources in the market.
  • As an employee one is looking for an Organization, where things are well defined, strategically placed and growth opportunities are provided.


Job / Role Analysis

Identifying and analysing the requirement of a particular role in an Organization. For eg – Why would a company need a Business development, how will it help the company to grow, What will this role do, what kind of person can do this job; what kind of knowledge and skills are required, what kind of environment will work best for this role; should they travel or be stationed to make most of this role. In a capsule Job Analysis is analysing the need of a role, reaching a conclusion and forming a Job description (JD) based upon it.

KRA, stands for Key Responsibility Areas, which means defining and then redefining responsibilities and duties of a person for performing his job effectively according to business goals. Clearly stating what is he/her required to do for a particular role in an Organization.

For eg. – A sales person is supposed to make 520 calls per day and at least register 25 potential clients.

KPI, stands for Key Performance Indicators, it’s a quantifiable metric and used for both an organization and an employee. But talking about the employees here, the targets are set according to the departments’ strategy, which is further aligned to companies goals.

For eg. – A salesperson has to register 25 potential employees per day, but if he/she registers 50, it’s over target and moving faster towards departmental goals.

RELATED TOPIC : Employee Performance appraisal facts you need to know

Quarterly Appraisal

Appraisal system or reviews, is subjective to the type of business and ranges from conducting it weekly, monthly, quarterly or annually depending totally upon the nature of the business and their hour of need.

For eg – A company which is into sales, focus on weekly feedback and review session making sure their sales person are well appraised and strategies are altered to reach the targets. As sales is a business driven unit.

Appraisals are mostly linked to bonuses and incentives which are absolutely based on individual and organizations performance

Gap Analysis

It is analysing the Current performance to expected performance of individuals in an Organization and looking for a solution.

  • Revamping job roles
  • Providing Training Programmes
  • Change in policies
  • Inter Departmental transfers

The lists goes on for taking corrective measures towards the problem.


These 4 primary stages help you to measure and define the performance your employee performance based on your priorities. Performance Management Appraisals would be a primary approach to crook the week employees In case, we can ensure that to filter their potholes and strengthen them to perform effectively. Ultimately, helps to boost the organizational goals to attain effective results helping the employees to improvise their profile status.

Most of the organization find difficulties to in setting these things on a right path, if you are one in the struggling box, feel free to write us at or call us back to discuss.

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