Balancing Personal KPAs and Teamwork: How Can HR Resolve This Appraisal Dilemma?

Performance Appraisal Cycle Overview

As April approaches, I hope the performance appraisal process has commenced in all organizations. It has begun in our organization as well. Let me provide a brief overview of our appraisal cycle:

The process starts with setting the Key Performance Areas (KPAs) at the beginning of the year. These KPAs are set individually and linked to the department objectives. Based on the KPAs, performance is assessed. The performance appraisal report is then used for increments, promotions, and benefits.

Clarifications Required

Even though the individual KPAs are linked to business/department objectives, I find some issues. Since the KPAs are individual, sometimes we observe a loss of teamwork within the department. Employees are primarily focused on achieving their personal goals.

From the employee's perspective, if one person achieves their goals but the department fails, their increments are also affected. As an HR professional, how can we resolve this dilemma? Please share your views on this.

Regards,
Raghavendra B R

Always approach the individual performer who is achieving the targets. If the team fails, put the ball into the court of the manager and senior management. If people are performing well, they must be rewarded.

Regards,
Sriram

Increments and individual incentives are two different things. Increments are based on the KRAs/KPAs that you set. KPAs are laid down based on the company's goals broken down into department goals. If an individual has successfully contributed to KRAs, then they are eligible for increments.

Incentives should also have goals and criteria. Here, it depends on the overall achievement of the department.

If you want to strengthen team building, then align their KRAs with your objectives. This can help solve your problem.

Weight Allocation for Goals Across Employee Levels

The weights allotted to individual and team goals vary with employee level. For example, at the junior level, team delivery is far more important than individual accomplishments. On the contrary, at the level of Managers and above, the individual goals are as crucial as the team output. For Senior Managers/Head of Functions, the individual goals (which are directly aligned with corporate objectives) carry much higher weight.

Percentage Weights and Their Impact

Percentage weights may be in the ratio of 30% and 70% for individual and team goals for junior-level employees. This ratio may reverse for managers and become 80 to 90% as the weight for individual goals concerning the Head of Functions.

The incentives and increments are to be regulated based on these weights at different levels.

Purpose of Weight Allocation

The spirit behind the allocation of weights in the manner discussed above is to cater to higher levels of accountability at the senior level and to promote team effort at the working level. The ratios may vary vastly for different industry verticals.