Kanika, there is no strong correlation between type of performance management system and industry sector or turnover. I suspect there is more of a correlation the size of the organization, wiht larger organizations going for a more formal approach.
Also, there are many things to consider other than just whether to go for “objectives” or “relative” or “absolute” standards. To begin with, you need to be clear on why your organization wants to set up a formal performance management system. I would first sit down with the executive team to discuss and decide:
-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?
To answer these questions, you and your executive team will need to consider:
-your current management capability
-size of workforce
-types of jobs
-geographical disparity of workforce
-IT systems capability
-current business measurement systems
-organizational culture, including levels of trust and openness
-current rewards and remuneration system
-current organizational strategy and goals
-current performance management system
-budget availability
-level of executive support
As you can see, what performance management system is right for your organization depends on a number of factors. There is no single right answer and whatever system you choose to design and implement should be a system that you are comfortable with and that has the support of the executive team and employees.
You can find out more about
performance management systems at
http://www.businessperform.com/html/...anagement.html
Vicki Heath
Human Resources Software and Resources
http://www.businessperform.com