How Do I Start Building a Performance Management System for My Air Freight Company?

I would like to seek assistance in creating an apt performance management system for my organization. I do not have prior experience in this activity. I am part of an air freight handling company operating with 150 staff in Sharjah, UAE.

Departments in Our Organization

We have the following departments:
1. Operations staff
2. Sales team
3. Accounts
4. IT
5. Business Development
6. HR & Admin

I have learned that we do not have defined/measurable Key Result Areas (KRAs) for individual departments/staff at the moment. Please advise me on where to begin this lengthy process.

Competencies & Skills-Based Performance Evaluation System

You need to start with a 'Competencies & Skills' based performance evaluation system since your company is not yet ready with the KRAs/Goals for each employee.

As a suggestion, consider three core competencies that you feel are important for your business. For example, 'Drive for Results', 'Customer Focus', and 'Professional Skills'. These will be applicable to all employees. Choose three more, which may differ according to the employee level. Define the meaning of each of these six competencies and skills. Consider that these will be evaluated on a scale of 1 to 5, with 1 being the lowest score and 5 being the highest. Lay down and define each step (1 → 5) on the scale so that evaluation is not subjective.

Put all the above on a form called 'Appraisal Form'. Define the reporting channels for each employee (i.e., who will be the Reporting Manager and Reviewer for each). At the end, indicate how the final score shall be calculated. You can find more details by visiting 'EmpXtrack' on the internet since they have provided performance solutions to many companies in the UAE and the Middle East.