How To Measure The Performance

Hi Everyone,
Please help me in knowing how exactly the performance can be reviewed. And also let me know if in a organization i need to do appraisal then how can i do that and then how can i get to know that A employee has been appraised ? Pls tell the parameters.

Dear Surabhi,

You could have given sufficient information while raising this query. Are you student or professional? If latter then what is the nature of your industry? How many employees are there in your company? What is your designation? If you are from HR then do you work under HR Manager and so on.

Performance Appraisal is not an event. It is ongoing process that has to be repeated every quarter or half-year.

It appears that you do not have proper Policy on Performance Appraisal (PA) well in place. When employees join the company, during induction itself they should be told that when their appraisal will take place. The salient features of policy could be as below:

a) Appraisal may be done quarterly. Appraisal cycle of one year is too long. Nevertheless, salary hike may be done as on 1st April or 1st Oct.

b) Employees who join in between, when their first PA will take that can be decided in the policy.

c) % of salary hike should be linked to the score of PA.

The important point is PA concentrates only on the individual performance. We need to go beyond and measure the business performance. For this you need to have well-designed policy on Performance Management System (PMS). There was query in this forum on PMS. I have given reply to this post. Click the following link to refer the reply:

https://www.citehr.com/511936-pms-company.html

Though the heading of the link is for IT company, the contents are applicable to all the industries. In the above link, you will find several other links. Go through all the links patiently. It will improve your awareness of the subject.

For further doubts, you may call me on my mobile number.

Thanks,

Dinesh Divekar

The querist may ask for how others are doing. A study of a good number of organisations would throw sufficient light on the issue and u can device something the most suitable one for ur current need.

Dear Ms Surabhi,
Your querry is important & interesting.
1.In earlier days of eighties & nineties,we management used to sit for a day with a list of employees & start marking A or B or C & then HR used to calculate the amount based on applicable slab for that perticular grade of employee.The opinion of reporting officer,divisional officer,HR & head is deciding factor.Advantage is fast & rewarding for deservingemployee but less data based & more by Gut feeling.
2.Second method used by companies is self appraisal form.Ten points are ranked first from 1 to 10 by appraisee himself,then by his boss & then by head in front of both accompanied with debate /discussion for 10 minutes.This gives satisfaction to all threeData about absentism is provided by HR.Achievements & failures is provided by reporting officer.In case something is left,appraisee himself points it out so that no partiality is there & at least truth & facts are put on paper in front of panel.Theft of credit is avoided & reporting officer is always fearful of that.The examples of 10 points are attendence,punctuality,behaviour with peers,obedience,learning ability,attitude,responsibility,leadership quality,suggestions for productivity increase,Kaizen,cost saving,etc.
3.Too much linking of appraisal by tangible results alone may pollute the working almosphere as improvement in one area is due to failure in other & depends on who is more powerful & not that who is more competent or honest.Few people steals kaizen of others & make numbers.Management has to filter this & develop capability to do this else it brings geat unrest & dissatisfaction in organisation.

Hi Dinesh,
I am working in a IT company wherein the co size is not more than 10 employees. Moreover i am only the HR person out here. So my boss asked me to detail him how to appraise the employees. Since this is an IT firm so please let me know how to do that. Since i have only theoritical knwledge on this so tell me how to do it practically.

Dear Surabhi,
Please call me on my mobile +91-. I will tell you what to do.
PMS is not just for salary increase. You need to focus on measuring organisation's performance as well. Secondly, you need to customise measures according to your business requirement. Lastly, you need to measure what deserves to be measured. Therefore, measures need to be comprehensive.
Thanks,
Dinesh Divekar

Dear Seniors,
Greetings to all,
One of our employee is working in our company from past 2 years, Previously he had worked 4 years in another one company and that EPF amount is transferred to current EPF account. My question is, Is he eligible for loan from EPF for purchasing of flat (Loan eligibility is min 5years).

Hello,
For your question about reviewing a performance, you first need to make a values-based recognition program succeed. Here's full detail How well are you doing values-based employee recognition program?