How Does Your Organization Ensure Fairness in Performance Appraisals and Promotions?

I would need your advice on the Performance Management Process. Could you please suggest how it is generally done in your organization? For instance, if appraisal forms are used, how do you ensure that rating biases are rationalized? Also, how can we ensure that people with varying levels of work (simple to difficult) are rationally categorized?

Moreover, for individuals where performance cannot be measured in numbers, how do you account for the soft skills part, as judgment can then be quite subjective?

Additionally, how are grades and promotions managed? I have many more questions, but would appreciate your insights. I look forward to your response.

Regards,
N. Sharma

Fairness of the Appraisal System

- In-depth understanding and awareness of the appraisal form(s) and rating mechanism(s), especially by the managers who appraise their subordinates.

- Online help to understand the meaning of various attributes, competencies, skills, etc., for which ratings are given.

- Detailed description of each step on the rating scale. On a scale of 1 to 5, it should be clearly defined who can be rated 1 (lowest) and so on.

- Well-defined KRAs and KPIs for each employee. This exercise has to be completed well before the next appraisal year.

- Goal-based evaluation with online tracking of periodic achievements for each goal/KRA.

- A mechanism to maintain counseling records so that all counselings for improvement given by the manager (based on performance) are viewable by the employee as well as the manager at all times.

- A suitable mechanism for normalization (by the management) of employee ratings across the company so that the employees rated low by harsh/high by lenient managers do not lose/gain compared to others rated by managers who understand and ensure normal distribution of ratings.

- Above all, continuous and repeated training of all reporting managers on 'how to fill in the appraisal form' should be a mandatory exercise done every year, especially before the appraisal process is launched. Without such an effort by HR, objectivity and fairness are seldom ensured.

More information is available in the articles published in the blog 'Talent Junction' or on the website of 'EmpXtrack'.

Thank you for your suggestions. Mr. Bhatia, could you please clarify the normalization of the ratings? One of my queries pertained to the attainment of this aspect.

Regards