Business Mentor, Consultant And Trainer
Manoj Dangwal 1
For the proper Performance Appraisal (PA), you need to have proper Policy on Performance Appraisal. When employees join the company, during induction itself they should be told that when their appraisal will take place. The salient features of policy could be as below:
a) Appraisal may be done quarterly. Appraisal cycle of one year is too long. Nevertheless, salary hike may be done a son 1st April or 1st Oct.
b) Employees who join in between, when their first PA will take that can be decided in the policy.
c) % of salary hike should be linked to the score of PA.
The important point about PA is that it concentrates only on the individual performance. We need to go beyond and measure the business performance. For this you need to have well-designed policy on Performance Management System (PMS). PA is subset or part of PMS. Therefore, when you wish to launch this major OD initiative, you need to make it comprehensive rather than doing a half job.
To establish PMS, you need to study systems and process of each department, find out direct and indirect costs associated with department and design the KPIs for each department. From these KPIs, you need to devise the KRAs for each department or individual. The other parameters on which KPIs are designed are quality, quantity, timeliness, accuracy, capacity utilisation and so on. But then this far easy to say than do. It requires immense expertise to do this and you need to hire some external consultant.
I have been giving my replies on this subject time and again. You may refer the following links to refer my past posts:
I request you to go through each of the above link. It will increase your understanding about PMS.
If you wish to hire my services on PMS consulting, I will help you in bringing the sea change. I will study systems and processes of each department deeply and design unique measures. Their could be few cost-based measures also. You may talk to your management about availing of my services. If you wish to know more about my consulting services then you may click here to check the presentation.
Last but not the least, do you have buy-in from your management for this major OD initiative? Is this your own initiative? If yes, then first convince your management about PMS. To convince, you need to measure the cost of poor performance and revenue leakage that took place because of not having culture of performance.
From India, Bangalore
I appreciate attachment of the Excel sheet. You have developed with whatever understanding you have. Merits or quality of the document apart, you deserve appreciation for not seeking direct spoon feeding, a trend that is observed in this forum most.
I have gone through the attached Excel file. My observations may appears terse however, you need to be given upfront feedback. Observations are as below:
a) There appears to be confusion between the concept of JD and KRA, a common problem amongst the HR professionals, at least in India
b) In each KRA, there has to be numerical value. Barring one, I did not find single number in the entire Excel sheet
c) Some of the statements are routine tasks and these cannot be KRAs. As far as productivity improvement, how can only HR be responsible? Productivity depends on several factors like timely availability of raw material, quality of capital equipment in use, guidance and support by the manager etc.
d) Examples of how productivity per person is measured are as below:
i) Tonnage handled per person (in ports or logistics companies)
ii) Revenue per employee (almost all the industries)
iii) Units produced per operations staffs (mostly in factories)
As stated in my previous post, you need to work under someone who has handled this job. Lest it may do more damage than good.
From India, Bangalore
Thank you for taking time to go through my query and for your willingness to help.
Dear Mr. Dinesh,
Thank you very much for your valuable feedback. I have gone through the links you provided. Understand now that what I have mentioned as KRA in the excel sheet is only the various functions I had planned to focus on.
The Industry is F&B and recruitment was the only area of focus. Now they would like to have an HR Department and I have been hired for the startup.
The attachment shows my Performance Goals as HR Officer for the first 1 year, which I was trying to develop. Could you pls guide me on how I can make my Individual Performance Goals SMART.
On receiving the assignment I had informed my management on the need for guidance from someone with more expertise and experience to which they had agreed, but I shall get back to you on this after management approval.
You have written every aspect of HR domain possibly minor to major ie core to developmental practices as planned for one year - which your bosses will not appreciate.
The focus on recruitment , induction, preparation of JDs/ KRAs/ KPIs for new and old employees will be not small job for you . You have not been into this organization for longer years and you have also not led HR in any other firms before, initiatives all round would need facilitation / support to provide both strength and capability to you and then to your organization.
Secondly, planning means and include timelines, an unseen column. Once you map assignments on activity schedule on time tracker, you will notice the interconnected issues, sub issues and likely time that you will be spending and in doing every bit of things.Take for example" remuneration policy" . For this,you should do and it warrants also study of various collated data related to compensation survey at region cum industry salary and wage details and comparator companies to arrive at numbers with mean, median and average figures to reach at Remuneration policy which should be in vogue for min. 4 years. Suggest,discuss complete things -what you can do, where you need facilitation to routine HR assignments and discuss on priorities to firm up HR assignment for one year/ 2 years/ 3 years from now.
From India, Bareilly
As i see you will be the HR initiator of company so firstly you have to seek the deep understanding of the owner or top management people for what they are looking for as per your attached sheet you should have a good number of HR folks for executing and implementing the HR practices.
Although every single activity is much time taking and approved by the top management, so for smart goals please take the initial steps of HR setup as your 1st year plans and execute them perfectly so that employee feel the good experience with HR.
so in short my advise is please go for some basic HR practices where employee can enjoy the basic need of an organisation, than go for complex activities.
From India, Pune