How to Start Implementing HR Systems: Seeking Advice on KRAs, SOPs, and Appraisals

Seeking Guidance on Implementing HR Systems

I am managing the HR department in a company dealing in the trade of Capital Equipment. The company has been in existence for the last 3 years, employing around 100-125 employees. So far, we have been working on traditional concepts with no job descriptions, key result areas (KRAs), or appraisals in place. We have designations and departments such as Accounts, Sales Coordinators, Import/Export Manager, etc., but there are no Standard Operating Procedures (SOPs) or KRAs established. Increments happen annually for everyone, but the decision rests with the Directors.

I have been attempting to persuade our management to implement a system for increments/appraisals, define job roles, etc., and they have finally agreed to give it a try.

I seek guidance and assistance from you seniors on how to initiate this process. Should SOPs be prepared first or KRAs? Additionally, are there any consultants who undertake such projects and assist with the setup?

I look forward to your comments and guidance.

Thanks & Regards,
Garima
Mumbai

Organization Structure as the Starting Point

The starting point of any such exercise is the top-down 'Organization Structure'. Once you define that and get it approved by your CEO, clarity sets in about the reporting and reviewing channels. Also, you come to know about various job positions in the organization. You may have 125 employees, but only 30 job positions. For example, one such job position may be 'Business Development Executive (BDE)' and your organization has 12 BDEs, reporting to 3 different BD Managers (Job Position - BD Manager). Thus, you have accounted for 15 employees in the Org Structure, but have only two discrete Job Positions.

Defining Job Deliverables and KRAs

Having done that, work out (in consultation with the reporting managers) the job deliverables/KRAs for the Job Positions accountable to different managers as per the org structure. It is better to start with the direct reports of the CEO since KRAs ought to be aligned to meet the organizational objectives. You don't have to innovate since JDs for similar Job Positions in other organizations are available through Google search. Once KRAs are identified for all job positions, through active involvement of managers, you have already set rolling employee accountability plans. In a Job Description, you do have some job responsibilities which are routine and are described qualitatively. Please remember to pick up only such responsibilities which are quantifiable and can be marked as KRAs, for which the performance can be tracked throughout the year. Tracking will be possible if you can define the key performance indicators (KPIs). Having completed that, in about a month's time for 30 job positions, you are ready to roll out the performance plan of the organization in the form of a 'Goal Sheet' for each white-collar employee. The only check you need to carry out before rolling out the plan is to see that KRAs of subordinates are in line with the KRAs of their managers.

Automating Goals and Performance Tracking

If you are able to convince your management to go in, from the very beginning, for an automated Goals and Performance tracking software, you would have institutionalized a process in your organization. It may be noted that managing the Goal Sheets of so many employees manually is a difficult task, which often loses its drive in most organizations. This occasionally results in the failure of a well-conceived process when you don't have the right tools to manage it.

Well, Garima, start your initiative to drive an accountable hierarchy to meet the organizational objectives. We are there to guide you.

Thank you for everyone's guidance. I would like to especially appreciate Mr. Govind's insights. It provides a perfect understanding with examples for HR professionals like me who don't have hands-on experience with PMS. I truly appreciate the detailed and thorough explanation you have shared.

Thanks a ton.

Garima

Dear All,

I am working in a robotic firm and I am looking for an Excel or number format that will help to measure and evaluate the performance of each individual. Please help me.