Balanced scorecard slide 1

Performance
Management System
Optimizing Employee Performance and
Organizational Success
Hasham Khan
Dept. Manager HR
Cresset Strategic Partners

An experienced Human Resources

professional with a dynamic
background spanning 6 years across
diverse industries such as Automotive,
IT, E-commerce, Fashion & Retail, and
Apparel."
 Talent Acquisition
 Performance Management
 HR Analytics
 SOP Development
 Policy Development
 Employer Branding,
 Organization Development.
 Training & Development
 Employee Benefits
 HRIS Implementation
“Together we can Achieve
more”
Cresset Strategic
Partners

A Digital marketing organization with

over a decade of experience in laying
out the right technology-enabled BTL
marketing campaign for any budget.
We believe in reflecting the essence of
a brand in every website that we
create. We help brands meet their
potential and create a strong digital
presence. Helping brands make their
mark in this competitive industry is
what we do best! We provide 360 E-
Commerce Services to Fashion brands
of Pakistan.
 Evolve Innovative
 Payfor
 Apparel Verse
 Meraki
 Distribot
Performance Management
Performance Management System (PMS) is a
comprehensive approach used by organizations
to monitor, manage, and improve the
performance of their employees and teams. It
involves a series of processes, tools, and
strategies designed to align individual and team
goals with the overall objectives of the
organization.
 Optimization
 Increase Productivity
 Organizational Growth & Success
 Goal Setting

Regular Feedback

Key Components Performance Appraisal

of Performance Development Planning
Management
Recognition and Rewards

Training and Development

Employee Engagement
Benefits of Performance Management System

Improved Employee Performance

• Higher motivation and accountability
• Clear expectations and goal alignment

Talent Development and Retention

• Identifying high-potential employees
• Fostering a culture of growth and learning

Increased Organizational Productivity

• Enhanced efficiency and effectiveness
• Optimal utilization of resources

Employee Engagement and Job Satisfaction

• Strengthening the bond between employees and the organization
• Reducing turnover and absenteeism
Let’s Implement

Gain Leadership Support Set SMART Goals

 Develop a Compelling Case  Specific, Measurable, Achievable,
Relevant, and Time-bound
 Data and Evidence
 Link individual goals to departmental
 Benefits and Impact of the System and organizational objectives.
 Action Plan
Let’s Implement
Communicate the
System to Employees
 Conduct training and workshops
 Ensure transparency and clarify
expectations
Let’s Implement
Provide Continuous
Feedback
 Encourage regular feedback from
managers and peers
 Foster a culture of open
communication
Let’s Implement

Conduct Performance Appraisals

 Conduct fair and unbiased
evaluations
 Focus on strengths and areas for
improvement
 Recognition and Rewards
Let’s Implement

Offer Training and Development Opportunities

 Develop Skills Matrix
 Provide access to relevant learning
resources
 Encourage employees to take
ownership of their growth
Let’s Implement

Performance Improvement Plans (PIPs)

Performance Improvement Plan (PIP) is a structured
and formalized process used by employers to
address and improve an employee's performance-
related issues or deficiencies.
 Clear Objectives
 Areas of Improvement
 Performance Metrics
 Duration
 Support and Resources
 Feedback and Monitoring
 Consequences
 Employee Input
Let’s Implement

Data and Analysis

Collect and analyze performance data
to identify trends, strengths, and areas
for improvement across the
organization.

 Develop An Action Plan

Methods
 Management by Objectives
(MBO)
 360-Degree Feedback
 Behaviorally Anchored Rating
Scale (BARS)
 Psychological Appraisals
 OKRs
 Balance Score Cards
 Management by
Objectives (MBO)
Management by objectives (MBO) is the appraisal method where
managers and employees together identify, plan, organize, and
communicate objectives to focus on during a specific appraisal
period. After setting clear goals, managers and subordinates
periodically discuss the progress made to control and debate on
the feasibility of achieving those set objectives.
 5-10 Goals
 Each goal needs to include a description and a clear plan (list of
tasks) to accomplish it
 Determine how progress will be measured and how frequently
 Ensure that goals at each level are related to the organizational
objectives and levels above/below
 List down corrective actions that will be taken if progress is not
in accordance with plans
Ideal for
Measuring the quantitative and qualitative output of
senior management like managers, directors, and
executive
Management by Objectives (MBO)

Advantages Disadvantages
 Clearly defined objectives provide employees with a  Implementing MBO requires careful planning and
clear sense of what is expected of them, leading to coordination. It may not be suitable for all types of
increased focus and direction in their work. organizations or roles
 Employees are more motivated when they have a role  The process of setting, monitoring, and evaluating
in setting their own goals. This sense of ownership can objectives can be time-consuming for both employees
lead to higher engagement and commitment and managers.
 MBO allows for flexibility in how objectives are
 If not carefully managed, conflicting goals between
achieved. Employees have the autonomy to choose
methods that work best for them. different teams or individuals may arise, leading to
potential tension.
 MBO requires ongoing communication between
employees and managers, fostering open and regular  The process of setting objectives and evaluating
discussions about progress and challenges. performance in MBO involves human judgment. This
 Since employees are actively involved in setting their can introduce subjectivity and bias, potentially
affecting the fairness and accuracy of performance
goals, they take on greater responsibility for achieving
them. assessments
 360-Degree
Feedback
360-degree feedback is a multidimensional
performance appraisal method that
evaluates an employee using feedback
collected from the employee’s circle of
influence namely managers, peers,
customers, and direct reports.
 Self-appraisals
 Managerial reviews
 Peer reviews
 Subordinates Reviews
 Customer or client reviews
360-Degree Feedback

Advantages Disadvantages
 Comprehensive View • Inaccurate Feedback
 Self-Awareness • Interpersonal Dynamics
 Reduced Bias • Rater Reluctance
 Personalized Development • Limited Context
 Behaviorally
Anchored Rating
Scale (BARS)
Behaviorally anchored rating scales (BARS)
bring out both the qualitative and
quantitative benefits in a performance
appraisal process. BARS compares employee
performance with specific behavioral
examples that are anchored to numerical
ratings.
Filed by Line Manager Mostly.
Behaviorally Anchored Rating Scale
(BARS)

Advantages Disadvantages
 Clear Communication  Lack of Standardization
 Customization  Hard to make compensation
 360-Degree Feedback can be and promotion decisions
integrated into 360-degree  Demands more from managers
and senior executives
Psychological
Appraisals
Psychological appraisals come in handy to determine the
hidden potential of employees. This method focuses on
analyzing an employee’s future performance rather than their
past work. These appraisals are used to analyze seven major
components of an employee’s performance such as
interpersonal skills, cognitive abilities, intellectual traits,
leadership skills, personality traits, emotional quotient, and
other related skills.
Advantages
• Can be deployed easily when compared with other
performance appraisal methods.
• Offer introverted or shy employees a platform to shine
and prove their potential
• Helps in Succession Planning
Disadvantages:
• Qualified psychologists
• Ethical Considerations
• Resistance and Anxiety
OKRs
OKR (Objectives and Key Results) is a goal-setting
framework used by organizations to align and
measure the performance of individuals, teams,
and the organization as a whole. While OKRs are
primarily focused on setting and tracking goals.
 Set Clear Objectives Aligned with
Organizational Objectives.
 Communicate those Objectives and Key Result
Areas Clearly
 Determine how progress will be measured and
how frequently
 Define Key Result Areas

Advantages: Clear Goal Alignment, Measurable Results,

Transparency, Recognition and Motivation, Agile Adaptation
Balanced scorecard slide 1

BALANCED
SCORECARD
The balanced scorecard is a management system aimed at
translating an organization's strategic goals into a set of
organizational performance objectives that, in turn, are
measured, monitored and changed if necessary to ensure
that an organization's strategic goals are met.
Key Performance Indicator (KPI)
Key Performance Indicator. It is a measurable value that helps organizations and
individuals understand how effectively they are achieving their key objectives and
strategic goals. KPIs are used to track and assess progress toward desired outcomes
and to gauge the success or performance of a particular activity, project, or process.

Characteristics
 Relevance
 Measurability
 Specificity
 Time Sensitivity
 Actionability
 KPIs Connection or Relation with Business
Balanced scorecard slide 2
The Balanced Scorecard typically includes four types of Connections with business

FINANCIAL External
These KPIs focus on financial These KPIs focus on External
outcomes and measures, such factors like market Share,
as revenue growth, Customers and others.
profitability, return on
investment, and cost reduction.

This perspective examines the This perspective focuses on the

internal processes and organization's capacity for
operations that drive learning, development, and
organizational performance innovation.
INTERNAL LEARNING/GROWTH

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Balanced scorecard slide
K
P
2 S
c
o
Maximi
zing
r
I e KPIs

Types of KPIs K
S
c
Minimiz o
There are three ing KPIs
P r
I e
types of KPIs

Leveragin
g/
Variance
KPIs

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How to Create KPIs
 Clarify Your Objectives  Regularly Review and
 Business Acumen Adjust
 Identify Critical Success  Promote Accountability
Factors (CSFs) and Action
 Brainstorm Key
Performance Indicators
(KPIs)
 Evaluate and Prioritize
 Set Targets and
Benchmarks
 Visualize and
 Reporting and Analysis
Balanced scorecard slide 3 Department 1
120

98.95
100
92.79

85.55 85.16
83.41
79.77 80.05
80 75.90
69.63

60

40

20

14
7.5 5 8 7.6
3 2 4 4
0
EMP 1 EMP 2 EMP 3 EMP 4 EMP 5 EMP 6 EMP 7 EMP 8 EMP 9

Tenure Score

10/05/2025 30
BALANCED SCORECARD

Advantages Disadvantages
 Comprehensive View  Complex Implementation
 Alignment with Strategy  Data Collection Challenges
 Clear Communication  Resistance to Change
 Performance Measurement  Resource Intensive
 Focus on Improvement  Time-Consuming in
 Employee Engagement Implementation
 Flexibility
 Transparency
Balanced scorecard slide 10

THANK YOU
Hasham Khan