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Performance Management Agreements

Performance Management Agreements (PMAs) are formal agreements between different levels of an organization (often between higher authorities and subordinate units or managers) that outline expected performance targets, responsibilities, and indicators to measure success over a specific period—usually one fiscal year.

🔹 What is a Performance Management Agreement?

A Performance Management Agreement (PMA) is a results-based management tool used by organizations—especially in the public sector—to promote accountability, transparency, and efficiency. In essence, it is a contract where one party agrees to deliver specific outputs or outcomes, and the other party agrees to provide support or resources and evaluate performance accordingly.

🔹 Key Features of PMAs:

Feature Description
🎯 Goal-Oriented Aligns individual or unit goals with organizational or national priorities.
📊 Measurable Targets Includes Key Performance Indicators (KPIs) or performance metrics.
📆 Time-Bound Usually covers a specific period—commonly a fiscal or calendar year.
🔍 Performance Review Regular monitoring, mid-term review, and annual evaluation.
✅ Accountability Holds individuals or units accountable for results.
🔄 Feedback and Improvement Promotes continuous improvement and learning.

🔹 Typical Structure of a PMA:

  1. Introduction / Background

  2. Objectives

  3. Performance Targets and Indicators

  4. Resources Required

  5. Roles and Responsibilities

  6. Monitoring and Evaluation Mechanism

  7. Risk Management Plan

  8. Signatories (with Designation and Date)

🔹 Examples of Where PMAs Are Used:

  • Government ministries and departments (e.g., Bangladesh's Ministry of Public Administration)

  • International development agencies (e.g., UNDP, World Bank projects)

  • State-owned enterprises (SOEs)

  • Private corporations (as part of performance appraisal and OKR systems)

🔹 Example: Government of Bangladesh PMAs

Bangladesh has institutionalized Performance Management Agreements (কর্মসম্পাদন ব্যবস্থাপনা চুক্তি - কেবিচু) since FY 2014-15 under the Cabinet Division. Every ministry/division signs an annual PMA with the Cabinet Division, detailing specific targets aligned with national development priorities.

🔹 Benefits of PMAs

  • Improved service delivery

  • Enhanced organizational efficiency

  • Better alignment with strategic goals

  • Strengthened performance culture

  • Evidence-based policy and decision-making