Dear Gargee Bhadauria,
More than the frequency of the measurement of the performance, it is important to create a mechanism that facilitates the measurement. Anyway, you can refer to the following process:
1. Design the measures of performance. Each measure must adhere to the SMART principle.
2. Give emphasis to the measurement of the costs and ratios associated with each department. This is the toughest part, as designing the measures based on the costs and ratios requires great expertise. Please note that even those who spend a long time in a particular industry do not develop the capability to design measures for their own department.
3. Once this is done, design the KRA sheet. List out the measures. Assign the weight to each KRA. Obtain the signature for having read and understood the measures.
4. The next tough part maintenance of the KRA-wise records by each employee. Many employees falter here, rendering the PMS dysfunctional.
5. In the first week of the subsequent quarter, each HOD is expected to complete the performance appraisal based on the KRA sheet. Many HODs falter here, and this becomes the second cause for making the PMS dysfunctional. The PA must be based on the evidence of the performance by the subordinates. KRA-wise records maintained by the subordinates mentioned earlier is the evidence.
6. In the same PA meeting, the HOD is expected to design the fresh KRAs for the current quarter. Therefore, a single meeting is sufficient for the PA of the previous quarter and for setting the KRAs for the current quarter.
7. Once the PA is completed, each HOD is required to send all the PA forms along with the summary sheet to the HR department. The HR Department, in turn, compiles the summaries sent by the HODs and makes the organisation-wide summary and submits it to the management.
8. A certain level must be defined to consider the performance as 'Average' or 'Below Average' performance. Such employees can be issued the Performance Improvement Plan (PIP).
As of now, the above procedure is sufficient. Follow it and come back to this forum if you face challenges.
Thanks,
Dinesh Divekar