How Can We Improve Our Employee Evaluation System for Better Appraisals?

Seeking Effective Employee Evaluation Systems

Hello Everyone, I am working as an HR in an IT company, and I have just started my career. This company has a manual system of evaluation which we feel is not that effective. The company just completed 7 years, and we have a staff of 25 employees. Therefore, we are in search of a more effective system or procedure to evaluate our employees in the best possible way. We aim to implement this by the upcoming cycle in April.

Please share with me your best suggestions or solutions for this matter.

Thanks,
Vishwa Shah
HR, NITSAN Technologies Pvt. Ltd.

Performance Management System (PMS) Considerations

Dear Vishwa, there appear to be certain misgivings about the Performance Management System (PMS). Please note the following:

a) Performance Appraisal (PA) is part of PMS. The PMS is primarily for measuring organizational performance and not human. However, since the organization does not perform by itself, we need to measure the performance of people.

b) Whether manual or through IT systems, what you measure is important. What if certain organizational performance is not measured even if the PMS is backed by a sound IT system? It is of no use!

c) The starting point for PMS is identifying costs and ratios associated with the business and assigning these costs and ratios to the HODs concerned. If this is not done, it is a faulty PMS.

d) For 25 persons, you do not need any IT systems; there is nothing wrong with having a manual system. The process followed should be sound.

e) Lastly, the important thing about PMS that each HR should ask is whether they are rewarding their people at the expense of the organization. With this self-defeating PMS, no company can grow!

Thanks,
Dinesh Divekar