Dear member,
This is in addition to what learned members have written. On completion of the Performance Cycle (PC), the managers conduct the Performance Appraisal (PA) for their subordinates. Once the PA is conducted, a subsequent PC begins. In the subsequent PC, there is a possibility that the subordinate's performance may go up or down. In that case, the managers need to wait for the completion of the current PC and award the marks accordingly. For the increase or decrease of performance in the current PC, they cannot approach HR Department for the revision of the marks awarded for the past PC. PA for the past PC should be a closed chapter and it cannot be reopened at the fancy of the managers.
In the companies where the PA is conducted traditionally, this problem arises. In the traditional PA, the managers "award" the marks. Since more than the measurement of the performance, the manager becomes the authority to disburse the marks, there is a possibility of this authority being misused. This type of arrangement breeds sycophancy as juniors try to keep their managers in good humour. Should someone falls out of favour with the managers, he/she starts approaching HR to teach a lesson to him/her.
In the modern Performance Management System (PMS), the KRAs must meet the
SMART principle. The subordinate maintains the records of the performance for each KRA and "earns" the marks accordingly. Since the marks are based on evidence, the PA cannot be subject to the likes or dislikes of the managers even for the current PC. Neither the subordinate claims extra marks because such claims will be beyond his/her eligibility. In short, an organisation needs to create a performance meter for each employee. He/she gets the marks according to the meter reading. Nothing more, nothing less! Revision of the marks for the past PC should be beyond the realm of the MD also.
I have provided consulting services to establish a comprehensive PMS. In this system, I have implemented a concept of the performance meter for about 90%-95% of employees. Overall, it has been working well. I have not received complaints from my clients.
Thanks,
Dinesh Divekar