PMDS GUIDE
1. Why Do We Have a PMDS System?
1.1 Purpose of PMDS
The Performance Management & Development System (PMDS) exists to:
- Align each employee’s work with the company’s goals
- Provide clarity on expectations and responsibilities
- Support employees’ professional growth and development
- Ensure evaluations are fair, structured, and consistent
- Identify training needs and career progression opportunities
1.2 What Employees Gain From PMDS
Through PMDS, employees get:
- Clear objectives & KPIs so they know exactly what is expected
- Continuous feedback and support from their manager
- A better understanding of their strengths and improvement areas
- Opportunities for development, training, and advancement
- A structured system that supports fair recognition and promotions
1.3 Why You Are Required to Complete the Process
The PMDS process ensures:
- You understand your goals for the year
- You and your manager agree on expectations
- Your performance is evaluated transparently
- Your growth plan (IDP) is clearly defined
- The company maintains a consistent standard of performance
Completing the PMDS is essential for both your career development and the
company’s success.
2. PMDS Workflow
The PMDS process follows a clear workflow from beginning to end:
Step 1 – Create
- Employee and line manager set objectives and KPIs in a one-on-one meeting.
- Employee inputs the relevant data into the system.
- Objectives must be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
Step 2 – Review
- Throughout the year, manager and employee track progress on a quarterly basis.
- Adjustments to objectives may be made if necessary.
- Regular discussions ensure alignment.
Step 3 – Evaluate
- At the end of the year, the manager evaluates:
o Progress on objectives
o Performance on KPIs
o Demonstration of competencies based on their levels
Step 4 – Score
- Each section; Objectives & KPIs and Competencies, is scored.
- A final performance rating is calculated based on weights.
Workflow Approval Path
1. Line Manager ------> initial evaluation
2. Head of Department (HOD) ------> review & approval
3. HR Department ------> final review, calibration & closure
HR ensures consistency, fairness, and compliance with company policy.
3. Components of the PMDS
3.1 Objectives
Objectives define what must be achieved during the year.
They must always be SMART:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Example:
“Increase customer satisfaction score from 80% to 90% by Q4.”
3.2 KPIs (Key Performance Indicators)
KPIs are the measurements used to evaluate whether objectives were achieved. They are always measured in percentages or numerical values.
Examples:
- Achieve 95% on-time delivery rate
- Ensure 100% accuracy in reports
- Complete 90% of assigned tasks on time
KPIs provide measurable, objective data to assess performance.
3.3 Competencies (Click for Details)
Competencies evaluate how an employee performs their job, based on behavior and skills.
Examples of competencies:
- Communication
- Teamwork
- Problem-solving
- Leadership
Competency Evaluation Levels
Competencies are assessed based on defined levels:
- Does Not Meet Expectations
- Below Expectations
- Meets Expectations
- Exceeds Expectations
These ratings reflect the quality and consistency of the employee’s behaviors and skills.
4. IDP – Individual Development Plan
4.1 What is an IDP?
An IDP is a personal growth plan designed to help employees develop their skills, prepare for future roles, and improve performance.
4.2 When is an IDP used?
- When an employee wishes to grow in their role
- When preparing for promotion or career path development
- When specific skills need improvement or enhancement upon quarterly review
- After annual performance evaluations
4.3 Why an IDP is important
- Helps employees build new competencies
- Supports long-term career goals
- Provides clear development actions and timelines
- Ensures employees receive training and coaching tailored to their needs
4.4 Typical IDP Objectives
- Technical training
- Soft skills development
- Leadership programs
- Certifications, courses, and workshops
- On-the-job learning opportunities
5. PIP – Performance Improvement Plan
5.1 What is a PIP?
A PIP is a structured plan used when an employee’s performance does not meet expectations.
It outlines:
- Specific areas needing improvement
- Clear performance goals
- Steps the employee must take
- Support provided by the manager
- A defined timeline (usually 30–90 days)
5.2 When is a PIP used?
- When KPIs or objectives are consistently unmet
- When behavior or work quality is below standard
- After feedback has been given but the issues continue
- As a last tool before more serious action is taken
5.3 Why a PIP is implemented
- To give the employee a fair chance to improve
- To document performance gaps clearly
- To support the employee with coaching and guidance
- To protect the organization’s standards
5.4 PIP Objectives
- Achieve specific measurable improvements
- Correct repeated performance issues
- Demonstrate progress within the given timeline
- Reinforce professional behavior and standards
6. Final Scoring
The final performance score is calculated based on weighted sections:
- Objectives / KPIs: are the largest weight (80%)
- Competencies: behavioral and skill-based evaluation (20%)
The final rating determines:
• Overall performance level
• Eligibility for bonuses, increments, promotions
• Whether an IDP or PIP is required
The scoring process ensures fairness, transparency, and standardization across all employees.