Designing a Performance Management System for a Small Software Company: Where Do I Start?

Hi,

I have been asked to design a Performance Management System for a software company comprising of 50 (fifty) employees. Can anybody help me out with how I would go about my job? I have been thinking of implementing the 360-degree appraisal. It would be great if anybody could provide a detailed step-by-step approach on how to implement a PMS.

Thank you very much.

Best Regards, Ayona De

Hi Ayona,

The first and foremost task would be to design a system that is most suitable for your organization. For that, you need to understand the following things:

- The roles and responsibilities of each role in your organization. Because once you know and they know why they are in the organization, it is quite easy to say what we need and what we don't.
- The reporting structure.
- The organization culture.
- What your management's expectations are from the employees and vice versa.
- The objective of the organization along with the vision and mission. (If the organization is new, it can be quite difficult to get an answer).
- The hierarchy system of the organization.

Seniors, please add more if I am missing anything. Once you have this info, it will be much easier to design a system. Also, please set the expectation with your management that they should not expect any rock-solid product in the first year itself. This is something that evolves as years go by.

Thanks, Manish

Hi Manish,

Thanks again for the input. I have started to gather all the data and information that I need, but I am still undecided as to which method I would implement. Can I use a 360-degree appraisal for a company (both IT and ITES) that has 60 employees? What other methods would be helpful?

I was thinking of starting with competency mapping before that. Can you please guide me on how to go about it?

Thank you very much.

Best Regards,
Ayona De

Try practicing MBO. You can find the information (step by step) in books as well as websites. You can modify it as needed.

Hi Ayona,

Please find the attached draft appraisal system PPT. See if it helps you.

Thanks,
Manish

Manish,

Thanks a lot for the input, but how would I know that a Java developer is performing very well? Who will monitor his/her performance? What system should be adopted for monitoring their performance?

Hi Ayona,

When conducting performance management, the focus is on evaluating individuals against their roles. For example, in your organization, there may be 10 Software Engineers working on different technologies. The roles and responsibilities document should outline the expected responsibilities of a Software Engineer. It is essential not to overly emphasize the technical domain during appraisals; the emphasis should be on the roles themselves.

Please find attached the document detailing competency metrics and the meaning of appraisal points. Review it to gain a better understanding.

I have developed this system for my company after thorough analysis of all areas. It is not a conventional method but rather a creative effort. I am also in the learning process, so any suggestions and corrections are welcome. ALWAYS.

Thanks,
Manish

Manish,

I really don't know how many times I would have to thank you. The attachments that you have sent are very helpful. I really appreciate your contribution notwithstanding the busy schedule that you are into.

Thank you very much,
Ayona

Hi Manish,

Could you please help me out with the calculations? How do you apply the weighted average method? Can you explain the calculations to me?

Thanks,
Ayona

Hi Ayona,

I was out of town for the last couple of days. I think it would be better if we could talk and get things done.

Now, as far as the Excel sheet is concerned, the CM sheet explains the minimum expectations of competencies in each area for each role, along with the weightage. The subsequent sheet explains the original points a person received against each appraisal point, followed by the average of the said group multiplied by the weightage of that group.

Please do let me know your contact number if you have any further queries.

Thanks,
Manish

Hi Manish,

I will go through that again and then I will get back to you to seek further clarifications. Thank you very much for all your help.

Best Regards, AYona

Hi all, I'm Sanju,

Can you please help me out with the performance appraisal process? I don't have any idea about appraisal as I'm very new to the management side.