Seeking Advice on Shifting from Ranking to KRA-Based Performance Appraisal in Auto Industry

Dear HR Experts, I am working in the automobile industry and currently using a Performance Appraisal system that is based on a ranking method, comparing employees' QPR (Quarterly Progress Report) system. The QPR system also relies on a ranking method but is not equivalent to employee KRAs.

Implementing a New PMS System

Now, I want to implement a new PMS system based on employee KRAs or KPIs. Please advise me on this matter. I look forward to your positive response.

Regards,
Dev

Designing a KRAs-Based Performance Appraisal System

Are you asking how to design a KRAs-based performance appraisal system? All you need to do is link Job Responsibilities (as given in the JDs applicable to each employee) and correlate these with the KRAs of their departments. Since the KRAs of the departments are based on the objectives of the organization, there will be perceived alignment of each employee's KRAs with those of the organization.

Defining KPIs

As regards the KPIs, these are related to the type of KRAs. For example, some KRAs may link with financial aspects, some with the time for completion, some with production targets, etc. You have to define the KPIs accordingly.

Moreover, if you wish to track that the KRAs are being accomplished as per the KPIs, you need an automated tool like 'EmpXtrack'. Otherwise, this entire effort may prove wasteful since tracking by manual means is just not possible. Without tracking achievements, you cannot bring in accountability. And performance appraisal without accountability is a mere ritual.

Firstly, thanks for the reply. I am asking about how to design a KRAs-based performance appraisal system?

Regards,
Dev