Hi Amrit,
I am in the process of designing a performance appraisal system for my current organization. I would like to invite inputs from all of you in terms of the best practices and techniques of performance management. Please suggest.
Good Performance Management System (PMS) involves the following:
1. Discussion of the last year's performance based on Key Result Areas (KRAs).
2. Discussion on the upcoming goals and laying down the Key Performance Indicators (KPIs).
3. Potential appraisal.
4. Training needs.
5. Assessment of employees on managerial competencies.
6. It should be a two-way dialogue with more emphasis on the developmental aspect rather than on increments or raises.
Unfortunately, in most organizations, the PMS gets reduced to form-filling exercises and a ratings game, which should not be the case. Good organizations emphasize the spirit behind the process and focus on the developmental aspect. This involves sensitizing the line managers to the importance of this tool rather than relying solely on their past experiences. To achieve this, guidelines must be provided, and most importantly, there should be 'buy-in' from top management.
Best wishes,
Regards,
Rajat