Dear All,
Can anyone please suggest as to how to reduce nepotism and high handedness in case of Performance Appraisals? The problem is that we have a centralised HR and we have come to know that in most of our offices and site offices spread throughout India, the respectives HODs in most cases give good rating to employees loyal to them and poor rating to employees they do not like, although most of these poorly rated employees are efficient. The onus is invariably passed on to HR and wrong recruitment and selection is shown as the prime reason for poor rating. The Attrition Rate is rising. We have tried everything expect being physically present which is not possible.
Please give me a way out.

From India, Thane
Hi Swatik,

For the last three days , i was mulling over the PMS and pondering over it as how can it be made even better... am writing an article on this..

Infact you belled the cat by drawing out these issues like nepotism..

The employees & their immediate bosses enter into an elaborate gaming exercise called Performance Appraisal ..frankly most of it just empty form filling exercise …the managers play the role of GOD…the middle managers give the rating based on expected raises!!

How to deal with Nepotism & favouritism?...

As of now you wouldn't be able to not sure whether you have access to MD or address these CEOs must champion the system..

Transfer the favoured employees or put them under new HOD to evaluate their performance..

In your case it seems the ratings & actual performance outputs have not been linked properly..

Other way is to have performance based incentive on quarterly basis based on KRAs...

Ask HODs to explain for poor rating to good performers who do not curry the favour of bosses or a part of favoured group ...

Make sure PA besides good things - bad & tough things remain generally unsaid!! - is the appraisor to his subordinate..

Training to HODs about the PMS - its implications if not handled well or if it is not implemented in right has serious repercussions for the both the parties - and the company would suffer on a long most of them pretend to be nice guys at the end of the days and take refuge behind the extensive form filling exercise!! this is not acceptable!!..

If you are using PA for salary increases..then this is a big problem!! suggest that you delink the same ..if this is one time exercise instead have quarterly based PAs...

Assess your competencies in PA - it should be same both at the time of selection & at PA.

As a HR Manager - don;t have the obession with Bell Curve..

Focus on how ad why aspect of the PA..whether the person's achieving the target was through ethical means..

Managers should learn to manage the expectations around the appraisal time..

Introduce variable pay system of compensation..

Use new tools like 360 degrees feedback whereby you eliminate the traditional supervisor - subordinate performance where the single boss ( like HOD of your company) plays the role of judge..360 appraisals act like a jury..pool feedback from both internal & external customers to recieve a broader more accurate perspective feedback on employees.. the biggest benefit is that it helps to discover whether an employee is an effective peformer in all interactions or whether the employee is simply an effective performer when boss is around!!..use this as performace development tool only..

Another method is Upward Assessment - where subordinates are encouraged to provide feedback on how they rate their supervisors on three parameters- viz

1. Communication

2. Direction & feedback

3. Empowerment

Revamp your PMS and introduce competency assessment on areas like

*Operational delievarables (initiativeness, thoroughness of work & efficiency, customer focus, business conduct etc) ;

*Personal attributes ( team work , co-ordination,attitude);

*Professional & job expertise related to job knowledge, awareness of current trends and ability to implement the same.

Allow the employee to rate himself on these parameters self appraisal against the mentioned rating standards, the immediate supervisor makes his own rating, share the same after consulting the business/function head with the employee.

Make sure the objectives & Goals are quantifiable..

Staffing reviews:-where senior managers collectively rank & evaluate groups of employees..

Another measurement is based on clear outcomes..

The best performance driven organizations are outcome focussed which are rigourously defined and success is measured at all levels which ultimately help focus every person, team,department, business unit on driving performance and results.

Lastly two important issues - PA should focus on positive reinforcement- most effective tool for encouraging the desired behaviour among employees and SMART criteria!!

Hope this helps you to some extent.



From India, Pune
Hi Rajat,
Thank you, for the reply. It was of good help, but still I feel that PA should not be based on one individual but by a group of Individuals. As for HOD, Target is more important than employees to them as well as Organisation. Sad but true face of HR in India.

From India, Thane
Hi Rajat,
Further to my earlier post i would like to add that I feel that there should be a Three Committee Member carrying out PA of an employee. This way at least in these time the earnings of an individual would not depend on the whims and fancies of his superior.
As for KRA, please suggest a way as to how to co-relate KRA with PA in the sense that nepotism usually have effect in achievement of targets also.

From India, Thane
Hi Swastik,
You are right ..three committee member would be ideal for rating the employees..
Linking KRAs to PA ..have covered this topic earlier in a search..
Hi Dips & Antony,
Welcome !!

From India, Pune

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