How Can I Quickly Set Up a Performance Management System for Our Automotive Company?

Hi, I want to start a Performance Management System (PMS) in our company. It is an automotive manufacturing company. Please suggest how I should start. I have to conclude it in 3 days to the owner, and at present, there is no system in place. Please help as I do not have sufficient experience, and I am the only one here in HR.

Hi Drishti,

Framing a Performance Appraisal Policy

Framing a performance appraisal policy or system takes more than just the information or performance appraisal forms. Since you would be evaluating performance for various positions, you should first know what to evaluate. In simpler terms, the detailed job description for each role should be drafted. There may be cases where a person at a particular position/designation might be carrying out roles not specifically mentioned in their job description. There should be open-ended questions that would help the person describe any extra job roles that they might be performing.

Steps to Develop a Performance Appraisal System

You should first find out, depending on your industry and employee strength, what method of performance appraisal you would be using - 360 degrees, 180 degrees, etc. Determine who would be evaluating whom. According to such details, you should be forming appraisal forms and their questions. Also, you should determine if you want to use the same appraisal forms for all departments or customize them as per the department.

In addition, there should be a proper understanding so that the appraisal forms are not filled with ambiguous words like "good" and "excellent," which can be interpreted differently by different people. Instead, use concrete terms or numbers that would have the same meaning for all.

As suggested by the experts, you should consider outsourcing the performance appraisal task, at least for this year, given the time constraint provided by your management. In the process, you can also learn the procedures being followed and their significance to develop a performance appraisal policy for your firm starting next year.

Wishing you good luck.

Regards

Dear Drishti, please excuse me. I take the liberty to make assumptions about the organization you are working for since you have not disclosed any information.

1. It is a small-scale manufacturing unit.
2. The management is owner-centric, and no professionals are hired at the top level.
3. The owner might not be very aware of "Performance Management Systems" in detail and perhaps does not have a specific objective in mind to adapt PMS.

As an HR professional, you need to know the following and brief it to your boss too.

Key Points About Performance Management Systems (PMS)

1. PMS cannot be built in three days.
2. Top management's conviction in the system is crucial.
3. PMS is not THE "Performance Evaluation System." It has to be an integrated system linked with developmental initiatives like succession planning, training, job rotation, job enrichment, and career planning, etc.
4. A bad or defective system can harm much more than its absence.
5. A system has to be built on fabric—it cannot be in a vacuum. The fabric is the company culture, top management's belief about HR, and business goals.

There is a wealth of material available on the web for you to gain knowledge about the system and process.

Regards, Shailesh Parikh

Vadodara, Gujarat

[Phone Number Removed For Privacy Reasons]