Please Help Me On Initiating Performance Appraisal System

Dear Friends,
I am working in a steel manufacturing company as Manager-HR. I am handling the entire gamut of HR activities. We don't have performance appraisal system here. Can anyone tell me what are the steps to be followed for initiating the performance appraisal system in my company. Kindly explain it from scratch one as i don't know even basics of it.
Please reply.
Sweta

Hi Sweta,
You need to first see what fits your company. Is it a manufacturing unit,sales focussed organization,HR firm etc and then you have to define Key delivera bles or targets and put weightages-Qualitative and quantitative and there should be a ranking within teams,across functions ,PAN India,preferrable. You can use an IPF system or a BSC system and supervisors should be briefed on how to appraise and apraisees should be explained-self appraisal and ranking systems. You need to design this on a 9-10 point basis
1. It should be in line with the organization objective - Total goals
2. Talent retention
3. Recognition
4. Promotion
5. Breeding managerial and staff talent
6. Job rotation
7. Identifying training needs
8. Grooming successors
9. Cutting the tail
10. Reward ( Performance Linked Incentive disbursements etc)
11. Competence development
Its a whole process and you can find many threads on this.
Regards
Aseem Singh

Hello Sweta,
I am attaching a file wherefrom you will be able to get an idae about the entire Performance Management System.
There are ecrtain steps that you need to follow before you decide on a particlular method:
1) First you need to know the manpower strength of your co
2) You need to have detailed KRA (s) or the Key Result Areas of all the different job groups together with the job descriptions
3) If possible, please carry out a detailed competency mapping system, dat wud help you in arriving at the KRA(s) and the parameters dat u can use for performance evaluation
4) Depending on your manpower strength, you wud decide on which particular method of appraisal system to use.
Do let me know if you need any further assistance.
thanx and regards,
Ayona

Hello Sweta. How you initiate a new performance appraisal system will depend on the kind of system you choose. The first step, before implementation, is design. There are a number of important questions that need to be asked and answered during the design stage. Here are some of those questions:

-What is the purpose of the performance management system?
-How will you know that you have achieved your purpose?
-Will the system appraise goals and objectives, behaviors, or both?
-How will you appraise performance: manager appraisal, multi-rater feedback, objective measures or manager staffing reviews, or a combination?
-How will you reward good performance/exceptional performance?
-How will you fund rewards?
-How will you handle disagreements between appraiser and employee?
-Will the appraisal cycle be based on the business cycle or employee anniversary date?

I suggest you sit down with the management team in a joint meeting to answer these questions. Doing this will also give each manager a stake in the outcome. You will get more commitment from each manager when it comes to implementation if you have involved them in the design process.

I also suggest you look at the performance appraisal system section of our website at www.businessperform.com/html/employee_performance_management.html

Les Allan
Author: Managing Change in the Workplace
www.businessperform.com

Sweta, I am not aware how big is your company in terms of the number of employees in Excecutive, Supervisory & Workers cadres.
To introduce a Performance Appraisal System (PAS) for the first time, the target group in any organization should be the Executives. Reason for the same is that their KRAs/ Goals can be well defined. And without goals, performance evaluation is a meaningless exercise, especially if the purpose of introducing PAS is to improve accountability.
Of course, evaluation of competencies is another area in PAS in case focus of the organization is on employee development. In this case, one has to identify a set of competencies & special skills applicable to different job positions.
To know more about the contents of a good Appraisal system, you may search for 'Empxtrack' on Google and study the relevant details in depth.
B K Bhatia