How Do I Create a Fair Performance Appraisal System for a Small IT Team?

Hello Seniors, I am the HR Manager of a newly started IT firm in Pune. I need to formulate and implement the performance management and appraisal policy, but I am quite confused as our company has only 15 employees. Please suggest evaluation tools.

Evaluation Criteria for Small Teams

On what basis should I evaluate their performance? They are asking for the exact scale as they are experienced in the company. What is the rating criteria?

Regards

Since it's a new company with only 15 employees, I suggest you go for the traditional performance appraisal method, i.e., immediate superiors (reporting managers) appraising their subordinates. Subordinates are required to fill in their KRAs and submit them to HR. The reporting manager would evaluate and forward the same to HR.

Dear Reema, I've read your post and can empathize with both your staff and you! Because, in your own positions, you're both right. You want to know the 'tool' to evaluate their performance. That is your prerogative. They want to know 'how' their performance will be evaluated. That is their prerogative.

Answer to Your Question

You've jumped the gun by a few steps. A PMS tool will only help you once you've entered data into it. The more complex and analytical the tool, the more detailed its output. But you know that.

What you need before a PMS tool are Performance Criteria, Competency Checklists, Competency - Positions Mapping, Individuals - Competency Mapping, etc. Do you get the point? It's very tempting to want to manage people's performance. However, the problem arises when those same people demand to know the criteria, its degree of fairness, clarity, rules of engagement, appeals process, etc. And no PMS tool will answer these questions.

So, if you really want your PMS to be thoroughly effective, fair, transparent, and accepted by all, please speak to some professional HR consultants and get them to help you. It will cost you some time and money. But believe me, only then will any PMS be of service to you and worth your efforts.

And the biggest advantage you have is that you only have a workforce of 15 to work with.

I hope my answer helps.

Kind regards,

Since there are only 15 people, you can make it simple with a 180-degree appraisal, i.e., self and manager. You can create a list of competencies and performance criteria and ask them to rate on a scale. This will help you initiate the process. If you need more help, please let me know.

Regards,

Since it's a starting firm, if you take JDs, then that will be helpful to set KRAs for the appraisal process. Once KRAs are set, you can go for the rating method. Since there are 15 employees, you can do this process twice a year as well.

Regards,
Sukhada Sant