Performance Evaluation method is broadly divided into two different categories:
1. Past Oriented Method
2. Future Oriented Method
As per the evaluation method for manufacturing company is concern, the employees must be from technical field. The job analysis must be confined to specific task/roles only. So according to the area of operation it is very important to check the job knowledge, quality and quantity of output, leadership abilities, supervision, co-operation,health and most important is Behavior, as they are dealing with Risk factor which is another critical area of a manufacturing process.
As per my suggestion, you can got for Past Oriented methods: Critical Incident Methods, Performance Tests & Observation.
You could have given little more information about yourself. What is your designation? Are you from HR? What type of Performance Appraisal (PA) is conducted in your company? What is the frequency of the cycle? Of the total marks acquired, what is measurable part and what is subjective part?
Principles of PMS do not change with respect to industry. These remain same. What matters is whether you have very comprehensive and stable PMS in your company.
To institute PMS it requires great exposure across the spectrum of industries. If mishandled it may do more harm than good. To know what happens when PMS is instituted with incomplete knowledge, you may click here.
To know more about instituting PMS in the company, you may click here to refer my past post.
In well-designed PMS organisations, individual are trained well so that they can design their own KRAs. Manager only validates it. Junior is expected to maintain MIS or other evidence to prove the quantum of performance in PA meeting. Manager verifies the score. In this process, nobody gives or takes anything. Junior [i]earns] the marks and there is evidence for this. In the same PA meeting, junior is also expected to come up with his KRA for next quarter or half-year. Manager verifies it, reassigns the weights if required, changes the KRAs itself if required. Further feedback can follow in subsequent meeting. Since junior himself or herself calculates the score, there is no room for disgruntlement
There is lot of misconception on the concept of KPI and KRA. To remove this misconception, I have uploaded my presentation on Youtube. To refer that video, you may click here.
I have been giving my replies on the subject time and again. If you wish to refer my past replies, then you may click the following links to refer those:
Subjectivity in Performance Appraisal
I handle consulting on PMS. To know more about my services, you may click here. Talk to your management and if they are ready then we may work together. If you hire my services, I will do deep study of each department and design new measures which hitherto you had never thought of. PMS will be helpful to you in your recruitment, employee training, manpower planning and do on.
Dinesh V Divekar