How Do You Choose the Best Performance Appraisal Method for a Small Organization?

Hi, what should be the perfect method of performance appraisal for a small organization?

Thanks & Regards,
Upasana Kaushik

Hi all,

HAPPY HOLI!

I want to implement a PA system for supervisors in our company, which is involved in Industrial Painting work. We have a strength of 8-10 supervisors. Kindly guide me on what qualities or descriptions I should consider while appraising them and which method would be most helpful.

Best wishes,
Vikram

This is in the context of what Upasana has asked. There is nothing like a perfect performance appraisal method. One needs to consider various things while designing a system. For a small organization, the system should be simple, workable, and effective.

How small is small in the case of your organization?

Thanks,
Anand

Upasana,

Following are key tenets of appraisal:

- Setting Goals for a defined period
- Identify how you will measure
- At the end of tenure, measure goals

You can add the following during the tenure:

- Give feedback
- Provide Training
- Keep adding onto goals as per market conditions or moderate if need be.

Appraisal can then be used for:

- Further Development/Trainings
- Rewards/Recognition

Regards,
Gaurav Kapil

Hey Upasna, you may go through a 360-degree review. As you mentioned, it is a small organization, so there would be no headache in considering the 360-degree method.

Regards,
Salman

Dear all,

Can someone please explain the differences between a private limited company and a limited company?

There are several key distinctions between a Private Limited (Pvt. Ltd.) and a Public Limited (Ltd.) company, including:

1. The minimum number of members required for a Pvt. Ltd. company is 2, whereas for a Ltd. company, it is 7.
2. A Pvt. Ltd. company can have a maximum of 50 members, while there is no such limit for a Ltd. company.
3. The minimum paid-up capital for Pvt. Ltd. is Rs. 1 lakh, whereas for a Ltd. company, it is Rs. 5 lakhs.
4. Shares in a Pvt. company are not transferable, whereas in a public Ltd. company, shares can be transferred.

I hope this clarifies the basic differences between the two types of companies.

Warm regards

Hi Upasna,

As you mentioned that you evaluate performance in a small industry, I suggest considering the FIELD REVIEW METHOD. Although this method is time-consuming, it can be applicable in small industries.

In this method, senior members of the HR department discuss and interview the supervisors to evaluate and rate their respective subordinates.

Regards, Pankaj Sharma
9458415783
Email: pankaj.humtum.sharma@gmail.com

Hi Upasana,

This is Chiranjeevi working as a corporate HR. Performance Appraisal is an important task that is useful to determine the skill level, training needs, and also for the development of the employee.

I'm mainly working on the appraisals of my employees. We have designed a method in which we can measure the performance of the employee qualitatively and quantitatively.

You need to focus on the major objectives first, and then we have to look after the competency levels of the employees.

Know the annual targets assigned to your employees of every department. If you are in a small organization, you can appraise every half year, making the appraisal system much more effective and accurate.

Prepare the five-point rating scale: 1. unacceptable, 2. adequate, 3. competent, 4. commendable, 5. distinguished, or the rating can be as you wish.

Prepare a different format as per their grades like management, non-management staff, and below grades.

If you could take the planning from the management staff for the whole year, it would be much beneficial and easy to appraise the employee performance because you have the planning given by the employee as a base to appraise the employee.

Then your employee will also know his standards of performance and the basis on which we appraised him, along with his areas of improvement. It should be transparent between the assessee and assessor.

I couldn't attach my appraisal formats here because they are a bit confidential.

If you have any doubts, you can contact me at chiru7991@rediffmail.com.

Hey Colleagues,

Performance appraisals in a small organization can go vertically downward or, if possible, geographically, you can also go for 360-degree feedback.

Performance appraisal needs to define the following criteria:

(a) The performance areas in which improvement or development is indicated.

(b) The accomplishments and targets achieved in the current appraisal period.

(c) Overall rating of the performance.

(d) What skills, knowledge, competencies, and qualities should be developed?

(e) Has the employee taken any steps to improve their performance and career development?

(f) Recommendations for the training and development of the employee.

(g) Updating knowledge on the latest developments in their job-related and subject areas.

Please find attached a sample of a performance appraisal that you can use in your company. You need to modify the criteria as per your company policies. You can also assign a payment range for the points received by the employee. This will promote transparency in your and management's work.

Regards,

Kunal Verlekar

Officer - HR

Following are steps where you can evaluate performance appraisals...

1

List the performance standards for each job duty. For example, if the job duty is to type on a word processer, one job standard may be to type 50 documents per day with 80 percent accuracy. If employee performance has been consistently documented over a period of time, there will be data to calculate in the employee's evaluation.

2

Determine how you will calculate the evaluation. One method is a rating scale, numbered 1 to 5. Each number represents a clear definition of the level of employee performance.

3

Utilize the scale 1 to 5 with 1 being "Exceptional": employee consistently exceeds the expectations of the job, and 5 meaning "Not Effective": the employee's performance does not meet expectations and immediate improvement is required.

4

Communicate the ratings to the employee with explanation of each standard, and the associated rating. Immediate plans for improvement should be developed for all employees scoring a number 5 on any standard. Provide positive feedback to employees in areas of outstanding performance.

Steps:

Initiative: The first thing to note when you evaluate employee performance is to check whether the employee is taking initiative to improve his/her own work as well as the overall work environment.

Attitude: You need to also note the employees' attitude towards their work, towards their peers and towards the management.

Communication: You need to observe the communication skills of employees and find out whether they have been a help or a hindrance during job performance evaluation.

Growth: You can also check the previous evaluation report to see whether that particular employee has shown any improvement since has last evaluation.

Targets and quality: Employee performance appraisal also includes checking whether the employee is meeting targets and deadlines while maintaining the quality of work.

Stress management and reliability: Does the employee work well under stress and changes in the work environment? A good employee should be reliable, competent and able to give good results consistently.

Teamwork: Another point to note during evaluation is whether the employee is a team person or likes to work by himself. A good employee must be a team player and willing to pitch-in and help other teams in case of shortages in work force.

Setting priorities: You should evaluate employees based on whether they can focus on the tasks given to them. Is the employee good at prioritizing his work efficiently?

Policy adherence: Employees must adhere to the company policies. Any deviations from this should be noted when you evaluate their performance.

Personal Appearance: In offices where there is a strict dress code, employees should be careful about what they wear to work. Dressing inappropriately will have a negative effect on their appraisal

In an organization of 8-10 supervisors, the paired ranking method can be considered good as it is simple, workable, and effective. However, a question arises: why can't we use the graphical rating or MBO method? Please help me.

Thanks in advance.