There is a general feeling that performance appraisals are subjective and that when managers rate their team members, a certain bit of bias seems to creep in. This thought process leads to unnecessary friction between the managers and employees. Can we eliminate the subjectivity in performance appraisals by automating the rating? Sometimes, people ask us if we can automate the rating completely using our software. They expect that the rating should be automatically given based on an employee’s performance and pre-defined criteria for such performance, and managers would not be responsible for rating the performance. So, can rating automation be a solution to remove the subjectivity in appraisals? In reality, will it be possible to remove the subjectivity element and automate the rating completely, without a manager’s involvement? This is definitely a point to ponder on.
Understanding Performance Appraisal Parameters
First, let us understand the parameters or the dimensions which are rated as part of the performance appraisals. Generally, there are sets of performance dimensions or goals that an employee is required to achieve during the course of a year. Also, there are sets of behavioral dimensions which an employee needs to exhibit to fulfill these goals. Generally, ratings are given to both these dimensions, but the weightage may vary between them.
Problems in Automating the Rating
The following are some practical problems that we will face when we try to automate the rating during a performance appraisal:
• Performance dimensions or goals are generally quantifiable. However, for employees working in some departments, setting SMART goals may be quite a challenging task. For instance, defining quantifiable goals for a sales department is much easier than defining goals for people working in a functional team.
• Even when goals are quantifiable, setting proper performance measures might be difficult. This will lead to difficulties in finding out the actual achieved numbers. So, the input of the actual achieved numbers (against a target) would be done by a manager or an employee manually, and there is bound to be some subjectivity in entering those numbers.
• Behavioral dimensions, like communication skills, cannot be quantified. So, automation of rating cannot be considered for rating behavioral dimensions, and thus the bias element cannot be totally eliminated.
• Even if we consider that automation of rating is possible, the inability to meet the performance target by an employee might be due to various external reasons outside of the employee's control. Penalizing a person for this by automating a rating might be too harsh. Some subjectivity of manager involvement in such cases would be better.
Regards
From India, Chennai
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21Understanding Performance Appraisal Parameters
First, let us understand the parameters or the dimensions which are rated as part of the performance appraisals. Generally, there are sets of performance dimensions or goals that an employee is required to achieve during the course of a year. Also, there are sets of behavioral dimensions which an employee needs to exhibit to fulfill these goals. Generally, ratings are given to both these dimensions, but the weightage may vary between them.
Problems in Automating the Rating
The following are some practical problems that we will face when we try to automate the rating during a performance appraisal:
• Performance dimensions or goals are generally quantifiable. However, for employees working in some departments, setting SMART goals may be quite a challenging task. For instance, defining quantifiable goals for a sales department is much easier than defining goals for people working in a functional team.
• Even when goals are quantifiable, setting proper performance measures might be difficult. This will lead to difficulties in finding out the actual achieved numbers. So, the input of the actual achieved numbers (against a target) would be done by a manager or an employee manually, and there is bound to be some subjectivity in entering those numbers.
• Behavioral dimensions, like communication skills, cannot be quantified. So, automation of rating cannot be considered for rating behavioral dimensions, and thus the bias element cannot be totally eliminated.
• Even if we consider that automation of rating is possible, the inability to meet the performance target by an employee might be due to various external reasons outside of the employee's control. Penalizing a person for this by automating a rating might be too harsh. Some subjectivity of manager involvement in such cases would be better.
Regards
From India, Chennai
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You have expressed your views through your article. Good thoughts; however, I have a different take. My views are as below:
a) Performance Management System (PMS) is not about measures or taking aid of software. The important fact is whether you measure what needs to be measured. You may install very costly software, but what if you do not include certain measures? For example, how many HR measure the spread of the training efforts, i.e., "% of staff who did not take a single day of training in the financial year"? There are several measures like this.
b) The person who designs measures needs to have an understanding of multiple departments. Mere expertise in one subject is not sufficient.
c) Designing KPIs is not the job of HR. Every Head of Department (HOD) should be capable of doing it.
d) You have given an example of communication skills as one of the attributes in Performance Appraisal (PA). Behavioral competencies can be measured separately. Why do you wish to include them in Performance Appraisal? The measurement of behavioral competencies requires different expertise, and a particular HOD may not be competent to do that.
e) Before taking any assignment, it is important to decide how the outcome will be measured. Otherwise, the work has no meaning at all. What you have written is a typical Indian context. In India, performance measures are not necessarily designed well in advance.
Related to this are my following replies. You may check these replies:
https://www.citehr.com/491619-perfor...ml#post2144012
https://www.citehr.com/490150-job-de...ml#post2142100
Thanks,
Regards,
Dinesh V Divekar
From India, Bangalore
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a) Performance Management System (PMS) is not about measures or taking aid of software. The important fact is whether you measure what needs to be measured. You may install very costly software, but what if you do not include certain measures? For example, how many HR measure the spread of the training efforts, i.e., "% of staff who did not take a single day of training in the financial year"? There are several measures like this.
b) The person who designs measures needs to have an understanding of multiple departments. Mere expertise in one subject is not sufficient.
c) Designing KPIs is not the job of HR. Every Head of Department (HOD) should be capable of doing it.
d) You have given an example of communication skills as one of the attributes in Performance Appraisal (PA). Behavioral competencies can be measured separately. Why do you wish to include them in Performance Appraisal? The measurement of behavioral competencies requires different expertise, and a particular HOD may not be competent to do that.
e) Before taking any assignment, it is important to decide how the outcome will be measured. Otherwise, the work has no meaning at all. What you have written is a typical Indian context. In India, performance measures are not necessarily designed well in advance.
Related to this are my following replies. You may check these replies:
https://www.citehr.com/491619-perfor...ml#post2144012
https://www.citehr.com/490150-job-de...ml#post2142100
Thanks,
Regards,
Dinesh V Divekar
From India, Bangalore
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The Importance of Continuous Employee Feedback
Annual employee reviews are a traditional practice followed in every organization. Why do organizations have annual reviews in the first place? Basically, they are carried out to monitor employees' performance. The question is, how is it possible for managers to remember a year's worth of employees' activities? Therefore, a once-a-year review is too late, as managers cannot judge an entire year's performance of an employee at one time. The most feasible feedback method is regular employee feedback or continuous employee feedback. It is an ongoing debate whether continuous employee feedback is better than annual feedback.
Benefits of Continuous Employee Feedback
Continuous employee feedback helps maintain a balance between positive and negative feedback. We often think that better feedback means honest criticism, which is not true. During annual feedback, managers do not get much time to think and recollect each employee's contribution. Therefore, at the time of feedback delivery, it becomes difficult to balance positive and negative feedback. When seen as a whole, this kind of feedback will do no good to the employees.
Annual feedback is too far removed to consider training and development. In contrast, with continuous feedback, employees are tracked regularly and, if required, are given proper training to enhance their efficiency.
Managers can initiate employee engagement with the continuous employee feedback process. Employee engagement gives rise to many discussions that elevate work to a higher level. The more you discuss, the more opinions and ideas are gathered, which will, in turn, help the project or work improve.
Miscommunication is one thing that undermines many activities in the workplace. More than 80% of issues at the workplace are due to miscommunications. Continuous employee feedback helps clarify miscommunications, keeping employees and the organization in sync and on track.
Talking about performance regularly lets employees set goals for themselves. When employees know the value their contributions hold, they are motivated to perform better than before. This is beneficial for both the organization and the employees.
So, why not implement a continuous employee feedback system when there is software to help you do it!
From India, Chennai
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Annual employee reviews are a traditional practice followed in every organization. Why do organizations have annual reviews in the first place? Basically, they are carried out to monitor employees' performance. The question is, how is it possible for managers to remember a year's worth of employees' activities? Therefore, a once-a-year review is too late, as managers cannot judge an entire year's performance of an employee at one time. The most feasible feedback method is regular employee feedback or continuous employee feedback. It is an ongoing debate whether continuous employee feedback is better than annual feedback.
Benefits of Continuous Employee Feedback
Continuous employee feedback helps maintain a balance between positive and negative feedback. We often think that better feedback means honest criticism, which is not true. During annual feedback, managers do not get much time to think and recollect each employee's contribution. Therefore, at the time of feedback delivery, it becomes difficult to balance positive and negative feedback. When seen as a whole, this kind of feedback will do no good to the employees.
Annual feedback is too far removed to consider training and development. In contrast, with continuous feedback, employees are tracked regularly and, if required, are given proper training to enhance their efficiency.
Managers can initiate employee engagement with the continuous employee feedback process. Employee engagement gives rise to many discussions that elevate work to a higher level. The more you discuss, the more opinions and ideas are gathered, which will, in turn, help the project or work improve.
Miscommunication is one thing that undermines many activities in the workplace. More than 80% of issues at the workplace are due to miscommunications. Continuous employee feedback helps clarify miscommunications, keeping employees and the organization in sync and on track.
Talking about performance regularly lets employees set goals for themselves. When employees know the value their contributions hold, they are motivated to perform better than before. This is beneficial for both the organization and the employees.
So, why not implement a continuous employee feedback system when there is software to help you do it!
From India, Chennai
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Recruiting and Retaining Talent: An HR Manager's Responsibility
Recruiting the right people for the right job is one of the most important responsibilities of an HR Manager. Even after performing this responsibility well, they cannot sit back and relax. They face another challenge: retaining the good talent they have hired.
Factors Influencing Employee Retention
Factors that motivate employees to continue in a job include job satisfaction, career development, recognition of good work, understanding managers, and so on. While "good pay" is also one of them, it does not fall under the main motivators that delight employees. Thus, by having a good employee performance management culture and policy in place, an HR manager can ensure that the employee’s expectations from the company are met. This would, in turn, bring down the attrition rate and also ensure the long-term loyalty of employees to their organization.
Therefore, the basic foundation, as we understand, is to define good employee performance management policies that reduce the attrition rate in an organization.
Employee Performance Management to Reduce Employee Attrition
Employee performance management increases the employee retention rate. Here are the main factors that would help lower the employee attrition rate:
1) Define the right set of competencies for different job roles. The ability to customize this for individuals would be an added advantage.
2) Set standardized goals for the job roles, with the ability to customize for each individual. Also, employees' goals would have to align with the organization's goals.
3) Convey the job expectations to the employee clearly, well in advance.
4) Allow objective appraisals as much as possible. This can be achieved by:
- Timing the feedback closer to the incident (interim feedback).
- Getting feedback from multi-raters.
- Social recognition to identify good performance.
- Rewarding the good performers.
5) Define an annual appraisal process that is simple. Activities should be kept to the minimum, and the important ones, like rating and career development meetings, should be given importance. The approval mechanism should be simple and clear. Simplicity is the key to effective use.
6) The end result of appraisals should be aimed at the career development of an employee. The ability to define career development plans and track them to closure would be beneficial.
Once these policies are baseline, organizations can look into automating them with clear, customizable performance management software to reduce the amount of manual effort.
Therefore, having better employee performance management policies will not only minimize employee attrition but also enhance their efficiency, helping the organization reach the heights of success.
From India, Chennai
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Recruiting the right people for the right job is one of the most important responsibilities of an HR Manager. Even after performing this responsibility well, they cannot sit back and relax. They face another challenge: retaining the good talent they have hired.
Factors Influencing Employee Retention
Factors that motivate employees to continue in a job include job satisfaction, career development, recognition of good work, understanding managers, and so on. While "good pay" is also one of them, it does not fall under the main motivators that delight employees. Thus, by having a good employee performance management culture and policy in place, an HR manager can ensure that the employee’s expectations from the company are met. This would, in turn, bring down the attrition rate and also ensure the long-term loyalty of employees to their organization.
Therefore, the basic foundation, as we understand, is to define good employee performance management policies that reduce the attrition rate in an organization.
Employee Performance Management to Reduce Employee Attrition
Employee performance management increases the employee retention rate. Here are the main factors that would help lower the employee attrition rate:
1) Define the right set of competencies for different job roles. The ability to customize this for individuals would be an added advantage.
2) Set standardized goals for the job roles, with the ability to customize for each individual. Also, employees' goals would have to align with the organization's goals.
3) Convey the job expectations to the employee clearly, well in advance.
4) Allow objective appraisals as much as possible. This can be achieved by:
- Timing the feedback closer to the incident (interim feedback).
- Getting feedback from multi-raters.
- Social recognition to identify good performance.
- Rewarding the good performers.
5) Define an annual appraisal process that is simple. Activities should be kept to the minimum, and the important ones, like rating and career development meetings, should be given importance. The approval mechanism should be simple and clear. Simplicity is the key to effective use.
6) The end result of appraisals should be aimed at the career development of an employee. The ability to define career development plans and track them to closure would be beneficial.
Once these policies are baseline, organizations can look into automating them with clear, customizable performance management software to reduce the amount of manual effort.
Therefore, having better employee performance management policies will not only minimize employee attrition but also enhance their efficiency, helping the organization reach the heights of success.
From India, Chennai
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Employee performance is usually measured in terms of results and time. However, I feel that just time and results cannot be the sole parameters to measure employee performance. For example, an employee who shows 9 hours on their worksheet might have wasted most of that time or might not have achieved much within those hours. In contrast, an employee who works for 5 hours a day might have delivered more on the project they are working on.
Therefore, there are other parameters to measure employee performance.
Parameters to Measure Employee Performance
Creativity: Creativity is not quantifiable, but it is very important as it adds an extra flair to the work you do. Creativity in your work shows that you can think in different ways to make the outcome look better and achieve the best results. Thus, an employee can be measured in terms of their creative ability.
Communication: Creativity is understood and achieved only when you can communicate it to your team. Therefore, communication is also one of the parameters to be considered during evaluation.
Absenteeism: To put thoughts into action, it is very important for employees to be at work. An employee is obviously not performing when they are not at work.
Obedience to company policies: It is difficult to be creative and abide by the rules and regulations at the same time. But when employees can align both, then nothing beats it! It perfectly shows their efficiency.
Personal habits: Talking over the phone for long hours, not being at their desk during work hours, gossiping, sharing tips and recipes during meetings, showing attitude, passing comments, and so on are not signs of an efficient employee. Therefore, personal habits do become a parameter to measure employee performance.
Take initiative: Employees who take initiative express their desire to learn more to improve their work. Organizations always look for employees who are keen to learn and explore more about their industry. Employee performance can also be measured on this.
From India, Chennai
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Therefore, there are other parameters to measure employee performance.
Parameters to Measure Employee Performance
Creativity: Creativity is not quantifiable, but it is very important as it adds an extra flair to the work you do. Creativity in your work shows that you can think in different ways to make the outcome look better and achieve the best results. Thus, an employee can be measured in terms of their creative ability.
Communication: Creativity is understood and achieved only when you can communicate it to your team. Therefore, communication is also one of the parameters to be considered during evaluation.
Absenteeism: To put thoughts into action, it is very important for employees to be at work. An employee is obviously not performing when they are not at work.
Obedience to company policies: It is difficult to be creative and abide by the rules and regulations at the same time. But when employees can align both, then nothing beats it! It perfectly shows their efficiency.
Personal habits: Talking over the phone for long hours, not being at their desk during work hours, gossiping, sharing tips and recipes during meetings, showing attitude, passing comments, and so on are not signs of an efficient employee. Therefore, personal habits do become a parameter to measure employee performance.
Take initiative: Employees who take initiative express their desire to learn more to improve their work. Organizations always look for employees who are keen to learn and explore more about their industry. Employee performance can also be measured on this.
From India, Chennai
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There are no tricks in PA. Be honest and straightforward. The best way to achieve that is to have every employee write the vision and mission of the company again, set targets at the beginning of the quarter, year, or when starting a new job/task. Then, let them rate themselves on a scale of 1-9 on various aspects. Ask them to identify two important attributes: 1) when they had the most fun, and 2) when they felt they lost it and why. This approach helps every employee take responsibility for their own performance without damaging their ego or self-respect. It provides them with a final chance to be accountable for their best or worst performance, independent of any influence from seniors or peers. I have seen positive results from this method. Give it a try and see. Good luck.
Regards,
Ashwin - S9 Consulting
From India, Hyderabad
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Regards,
Ashwin - S9 Consulting
From India, Hyderabad
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The Role of HR in Managing Employee Performance
Hiring efficient employees and managing them wisely is an important task for HR. When the organization is small, it is possible for HR to take care of screening and recruiting new employees, addressing employee issues, and conveying feedback to the employees. HR acts as a liaison between the employees and the organization. However, when the organization grows and the number of employees increases, managing all the employees simultaneously becomes difficult, eventually reaching an impossible stage. In this case, what should an organization do to get things back in place? The best solution is to implement a performance review system.
Benefits of a Performance Review System for HR
Every organization has its own culture, and HR is responsible for setting a culture that suits both management and employees. As the organization grows and segments into various departments, it becomes challenging for HR to maintain the same culture throughout. A performance review system plays a crucial role at this stage. It helps HR build a common corporate culture. HR can set goals and values according to the corporate culture using software. The performance management system, being a transparent tool, enforces managers and employees to quickly adjust their behaviors without a choice.
The Importance of Performance Appraisal
Performance appraisal is a key activity in an organization where HR plays a significant role. In the case of a 360-degree appraisal, it is essential for an employee to receive definite feedback from all the members they report to and work with. A 360-degree feedback is incomplete if even one member fails to comment and evaluate an employee. HR is responsible for collecting feedback from every individual, which is not an easy task. Carrying out this process manually could also make room for manipulations and conflicts. A performance review system can help eliminate these issues, as the system will be automated to send personal notifications to individuals who miss giving their feedback.
With all the data collected in the system, HR will also be able to find gaps in the organization, set new goals and objectives, and plan training and development needs to benefit both the employees and the organization.
From India, Chennai
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Hiring efficient employees and managing them wisely is an important task for HR. When the organization is small, it is possible for HR to take care of screening and recruiting new employees, addressing employee issues, and conveying feedback to the employees. HR acts as a liaison between the employees and the organization. However, when the organization grows and the number of employees increases, managing all the employees simultaneously becomes difficult, eventually reaching an impossible stage. In this case, what should an organization do to get things back in place? The best solution is to implement a performance review system.
Benefits of a Performance Review System for HR
Every organization has its own culture, and HR is responsible for setting a culture that suits both management and employees. As the organization grows and segments into various departments, it becomes challenging for HR to maintain the same culture throughout. A performance review system plays a crucial role at this stage. It helps HR build a common corporate culture. HR can set goals and values according to the corporate culture using software. The performance management system, being a transparent tool, enforces managers and employees to quickly adjust their behaviors without a choice.
The Importance of Performance Appraisal
Performance appraisal is a key activity in an organization where HR plays a significant role. In the case of a 360-degree appraisal, it is essential for an employee to receive definite feedback from all the members they report to and work with. A 360-degree feedback is incomplete if even one member fails to comment and evaluate an employee. HR is responsible for collecting feedback from every individual, which is not an easy task. Carrying out this process manually could also make room for manipulations and conflicts. A performance review system can help eliminate these issues, as the system will be automated to send personal notifications to individuals who miss giving their feedback.
With all the data collected in the system, HR will also be able to find gaps in the organization, set new goals and objectives, and plan training and development needs to benefit both the employees and the organization.
From India, Chennai
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Nice approach. Large and reputed organizations already use these tools/procedures to measure the performances of employees. However, delegation of authority to the right person and entrusting the appraisals in the right hands will be a great help in retaining and developing the right talent within the organization.
Role of HR in Performance Management
HR has a great role in managing the performance management system with meticulous details in defining KPIs and KRAs across all verticals. Thus, a good system of performance measurement can be implemented. Training and awareness of these systems for employees will also be an important aspect of implementation.
Thanks,
Bijay
From India, Vadodara
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Role of HR in Performance Management
HR has a great role in managing the performance management system with meticulous details in defining KPIs and KRAs across all verticals. Thus, a good system of performance measurement can be implemented. Training and awareness of these systems for employees will also be an important aspect of implementation.
Thanks,
Bijay
From India, Vadodara
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Performance Management: A Key to Organizational Success
Performance Management is vital within any organization. Armstrong and Baron (2010) define performance management as "a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance."
Performance management is not simply about providing an annual review for the employee but involves working together with the employee to identify strengths and weaknesses in their performance. Most managers and employees dislike the performance management process of their respective organizations. What managers hate most about their job is performance management because they don’t know how to do it effectively.
Key Steps in Developing an Effective Performance Management System
Organization’s Objective
One of the significant obstacles of performance management is the indistinctness of the organization's as well as the employee’s objectives. The employee should know what is expected from them all the time. Surveys suggest that many employees complain that they are unaware of what the organization expects from them. Hence, every employee needs to know all the hows, whats, whys, and whens related to their work. An organization can work better when an employer views the task through their employees' eyes.
Communicate
Managers should not limit communication to just problems, even if they lack time. They should instead increase the horizon of communication by providing continuous coaching, training, and communication through regular emails, face-to-face meetings, etc. It will help the employee to know the acceptable standard of the employer's expectation. In short, try to communicate multiple times in multiple ways.
Document
Maintain records of your employees' successes and failures. Keep the document short, factual, and behavior-based. Concrete feedback is the key to success under the performance management process.
Frequency of Appraisal: Multiple Assessment and Self-Assessment
Performance management should not be a once-a-year event; there should be a continuous dialogue between a manager and an employee because employees have a legitimate need to know how their performance is viewed. Also, the supervisor has a legitimate reason to conduct performance appraisals.
Frequent Feedback
The optimal way to manage performance is to measure it on a regular and informal basis. Conduct formal meetings to confirm and maintain records of what has been discussed throughout the year. The most important key to effective performance management is, first, no surprises, and second, no selective memory by the manager or the employee. Effective performance management helps to create a motivated and committed workforce.
Development & Support
Provide development opportunities to the employees, giving them a chance to do new things, learn new things, and develop professionally in terms of individual and team promotion, multiple projects, etc. This will statistically help the organization to create a high-performing team with high levels of productivity, retention, motivation, and satisfaction towards work.
From India, Chennai
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Performance Management is vital within any organization. Armstrong and Baron (2010) define performance management as "a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance."
Performance management is not simply about providing an annual review for the employee but involves working together with the employee to identify strengths and weaknesses in their performance. Most managers and employees dislike the performance management process of their respective organizations. What managers hate most about their job is performance management because they don’t know how to do it effectively.
Key Steps in Developing an Effective Performance Management System
Organization’s Objective
One of the significant obstacles of performance management is the indistinctness of the organization's as well as the employee’s objectives. The employee should know what is expected from them all the time. Surveys suggest that many employees complain that they are unaware of what the organization expects from them. Hence, every employee needs to know all the hows, whats, whys, and whens related to their work. An organization can work better when an employer views the task through their employees' eyes.
Communicate
Managers should not limit communication to just problems, even if they lack time. They should instead increase the horizon of communication by providing continuous coaching, training, and communication through regular emails, face-to-face meetings, etc. It will help the employee to know the acceptable standard of the employer's expectation. In short, try to communicate multiple times in multiple ways.
Document
Maintain records of your employees' successes and failures. Keep the document short, factual, and behavior-based. Concrete feedback is the key to success under the performance management process.
Frequency of Appraisal: Multiple Assessment and Self-Assessment
Performance management should not be a once-a-year event; there should be a continuous dialogue between a manager and an employee because employees have a legitimate need to know how their performance is viewed. Also, the supervisor has a legitimate reason to conduct performance appraisals.
Frequent Feedback
The optimal way to manage performance is to measure it on a regular and informal basis. Conduct formal meetings to confirm and maintain records of what has been discussed throughout the year. The most important key to effective performance management is, first, no surprises, and second, no selective memory by the manager or the employee. Effective performance management helps to create a motivated and committed workforce.
Development & Support
Provide development opportunities to the employees, giving them a chance to do new things, learn new things, and develop professionally in terms of individual and team promotion, multiple projects, etc. This will statistically help the organization to create a high-performing team with high levels of productivity, retention, motivation, and satisfaction towards work.
From India, Chennai
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Understanding the Performance Management System
The performance management system is used to analyze the performance of employees. It generally helps during the time of appraisal. The performance management system varies from company to company. Companies assign target-based work to employees, and performance is calculated based on that. Work other than routine tasks is considered extraordinary and is factored into the ratings.
From India
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The performance management system is used to analyze the performance of employees. It generally helps during the time of appraisal. The performance management system varies from company to company. Companies assign target-based work to employees, and performance is calculated based on that. Work other than routine tasks is considered extraordinary and is factored into the ratings.
From India
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The Importance of Performance Appraisals
Organizations have traditionally conducted performance appraisals or performance reviews for their employees once a year (or more). A performance appraisal program is important for employees’ professional development and contributes to the company’s or firm’s bottom line. No employer, whether small or big, a nonprofit organization, a government institution, or a private or public company, should be exempt from having a formal performance appraisal program.
Outcomes of Effective Performance Appraisals
Common outcomes of an effective performance appraisal process include employees learning about themselves, gaining knowledge about how they are doing, and understanding what management values (Beer, 1981). According to Stephan and Dorfman (1989), outcomes of effective performance appraisals include improvement in the accuracy of employee performance and establishing a relationship between performance on tasks and a clear potential for reward. Dobbins, Cardy, and Platz-Vieno (1990) identified five outcomes: use of evaluations as feedback to improve performance, reduced employee turnover, increased motivation, feelings of equity among employees, and linkage between performance and rewards.
Benefits of a Performance Appraisal Program
Benefits derived from having a performance appraisal program include enhanced communications, an opportunity to effectively address performance problems, and improved employee morale. One of the main objectives of performance appraisals is to ensure that employees perform well to achieve the organization’s objectives. Effective performance reviews produce outcomes that benefit your staff and your business. Agreeing on outcomes, setting goals, and following up on staff feedback will show your staff you are committed to meeting their needs.
Enabling Organizational Benefits Through Performance Management
The following outcomes enable an organization to benefit from the overall performance management exercise:
- The rating distribution helps management reward good performers and recognize their efforts, while serving as a warning to poor performers to improve their performance.
- The final rating for employees is an outcome of the performance appraisal, which can help detail out the compensation of the employees.
- An employee’s competency gaps can be identified, and areas for improvement in performance can be suggested. Managers can take necessary steps to help employees improve in those areas, leading to employee and organizational growth.
- Identification of high-potential employees aids in succession planning. High-potential employees can be nurtured and guided towards leadership paths.
- Necessary training requirements of employees can be identified through performance appraisals, providing valuable input to the training department for planning their training calendar.
A good performance review process is ongoing. Use your performance review processes to build stronger, more open relationships between your managers and team members. Emphasize the importance of ongoing appraisals, and ensure you and your team continue to identify development needs and measure their success.
Summary and Technological Support
To summarize, outcomes from performance appraisals should help in compensation management, succession planning, and planning the training needs for an employee. Your investment in your staff can earn your business a lasting, loyal, and expert team.
Flexible performance management software provides good support for the above. Its analytical capabilities help in succession planning and training needs. For instance, providing 9-quadrant reports helps organizations identify their star employees and high-potential employees. Organizations can concentrate on them and nurture them as leaders.
Regards
From India, Chennai
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Organizations have traditionally conducted performance appraisals or performance reviews for their employees once a year (or more). A performance appraisal program is important for employees’ professional development and contributes to the company’s or firm’s bottom line. No employer, whether small or big, a nonprofit organization, a government institution, or a private or public company, should be exempt from having a formal performance appraisal program.
Outcomes of Effective Performance Appraisals
Common outcomes of an effective performance appraisal process include employees learning about themselves, gaining knowledge about how they are doing, and understanding what management values (Beer, 1981). According to Stephan and Dorfman (1989), outcomes of effective performance appraisals include improvement in the accuracy of employee performance and establishing a relationship between performance on tasks and a clear potential for reward. Dobbins, Cardy, and Platz-Vieno (1990) identified five outcomes: use of evaluations as feedback to improve performance, reduced employee turnover, increased motivation, feelings of equity among employees, and linkage between performance and rewards.
Benefits of a Performance Appraisal Program
Benefits derived from having a performance appraisal program include enhanced communications, an opportunity to effectively address performance problems, and improved employee morale. One of the main objectives of performance appraisals is to ensure that employees perform well to achieve the organization’s objectives. Effective performance reviews produce outcomes that benefit your staff and your business. Agreeing on outcomes, setting goals, and following up on staff feedback will show your staff you are committed to meeting their needs.
Enabling Organizational Benefits Through Performance Management
The following outcomes enable an organization to benefit from the overall performance management exercise:
- The rating distribution helps management reward good performers and recognize their efforts, while serving as a warning to poor performers to improve their performance.
- The final rating for employees is an outcome of the performance appraisal, which can help detail out the compensation of the employees.
- An employee’s competency gaps can be identified, and areas for improvement in performance can be suggested. Managers can take necessary steps to help employees improve in those areas, leading to employee and organizational growth.
- Identification of high-potential employees aids in succession planning. High-potential employees can be nurtured and guided towards leadership paths.
- Necessary training requirements of employees can be identified through performance appraisals, providing valuable input to the training department for planning their training calendar.
A good performance review process is ongoing. Use your performance review processes to build stronger, more open relationships between your managers and team members. Emphasize the importance of ongoing appraisals, and ensure you and your team continue to identify development needs and measure their success.
Summary and Technological Support
To summarize, outcomes from performance appraisals should help in compensation management, succession planning, and planning the training needs for an employee. Your investment in your staff can earn your business a lasting, loyal, and expert team.
Flexible performance management software provides good support for the above. Its analytical capabilities help in succession planning and training needs. For instance, providing 9-quadrant reports helps organizations identify their star employees and high-potential employees. Organizations can concentrate on them and nurture them as leaders.
Regards
From India, Chennai
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Dear Pon, Thanks for your message. From the organization's perspective (as you rightly mentioned), Performance Management is nothing but the evaluation of skill sets and performance. But, what is the OUTCOME that we are going to get by doing the PM process, or plainly put, what we 'gain' out of it is the main query. And, in the article, according to me, (from the ultimate summary), it will lead us to plans for Promotion, Salary hike, and finally employee Development. If there is something else that I can add, kindly share with me. Thanks Again.
Regards, Elan.
From India, Chennai
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Regards, Elan.
From India, Chennai
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4 Steps to Build an Effective Performance Management Program
An organization cannot just hire an employee and expect them to work without any flaws. Initially, your employees would need guidance and supervision to understand what the organization expects from them so they can perform better. Having an effective performance management program increases the productivity of the company and helps identify top performers and motivate them to work harder. A perfect Performance Management program can also ensure that their objectives and goals coordinate with hiring and employee development plans.
Performance management is an ongoing event, not just an annual task. Therefore, companies need to realize this to reap the benefits of a performance management program.
Below are the 4 steps to build an effective performance management program. Check it out.
1. To begin with, define your employees' competencies and behaviors according to the role they will play in your organization. This gives them a clear picture of what is expected of them. Make sure that the job skills, responsibilities, and qualities that define success for each employee are included in the competencies. Initiate the first step of the performance management program as soon as the employee is hired, and revisit them annually.
Companies will get immediate performance improvements by doing this as the employees know what their higher authorities expect of them.
2. Performance review is an essential part of an effective performance management program. Therefore, decide how often the managers will deliver performance reviews to their team/employees. An annual performance review is mostly practiced, but continuous or frequent reviews would give the managers an opportunity to address the employees' negative behavior or oversight before it affects their productivity. Frequent reviews are time-consuming and difficult for managers and HR, which is why they agree to supplement the usual performance reviews with online talent and performance appraisal management tools.
Along with this, communicating what an employee did well or not so well over a quick conversation or an email can have a lasting impact.
3. Hold your managers accountable for making the assessments once the schedule of how often the performance review has to be conducted is set up. Managers need to evaluate their team during the assessment. They can use any sort of rating system to assess employees for their KPIs.
Note: Managers need to be honest at the time of employee assessment. If employees are performing well, they deserve to hear that. If they are doing a bad job, that should be pointed out, and what they need to do to correct it should also be told. The manager should also be able to tell them the exact reason behind the rating they give to every employee.
4. During the employee review meeting, employees should also be given a chance to acknowledge the feedback they receive. The data generated at the time of performance review should be incorporated into human resource planning. HR should consider it while revising employee compensation, setting up employee training programs, defining long-term succession plans, and identifying candidates who deserve fast-track career growth.
By following these steps, the organization can not only have an effective performance management program but also have an opportunity to improve their business.
The Role of Performance Management Software in an Organization
The above-mentioned task is not easy for HRs. It’s tough to evaluate the performance of all the employees manually. HR is also a human being and hence makes mistakes as it is almost impossible to remember the yearly data. So here is the solution to the problem of HRs. Performance Management Software can troubleshoot all such problems in an organization. It plays a very important role in evaluating and giving exact results, which also satisfies the employee.
Like finance, human resources, sales and marketing, supply chain management, and other departments and systems, the performance management system has a key role to play in improving the overall value of an organization. Having performance management software might sound expensive or like a huge investment, but it is not. Therefore, when you have had a thought of implementing performance management software in your organization, it is very important to know what its key roles are.
Functions and Features of Performance Management Software
To begin with its functions, performance management software is designed to initiate interaction and feedback between the employees and management. It helps employees get a clear picture of what is expected of them to reach the organizational goals and objectives. Performance management software also ensures that employees understand the importance of their contributions to the organization.
The features of performance management software are well-structured to manage communication between various levels of an organization. The employee management feature of performance management software allows you to manage complete employee profiles and track their career history. You can also capture their skill sets, education, and experience. The continuous feedback and social recognition feature helps provide continuous feedback to team members, peers, and managers. It also helps pass on appreciations and critical inputs without having to wait for the appraisal process. With the help of performance management software, managers can set clear, achievable yet challenging goals for their team.
An organization that does not properly implement performance management software may not experience the possible benefits of increased and continuous communication and workforce development. So why not consider an efficient, customizable, and easy-to-use performance management software/tool to manage your people to maximize profits?
Regards
From India, Chennai
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An organization cannot just hire an employee and expect them to work without any flaws. Initially, your employees would need guidance and supervision to understand what the organization expects from them so they can perform better. Having an effective performance management program increases the productivity of the company and helps identify top performers and motivate them to work harder. A perfect Performance Management program can also ensure that their objectives and goals coordinate with hiring and employee development plans.
Performance management is an ongoing event, not just an annual task. Therefore, companies need to realize this to reap the benefits of a performance management program.
Below are the 4 steps to build an effective performance management program. Check it out.
1. To begin with, define your employees' competencies and behaviors according to the role they will play in your organization. This gives them a clear picture of what is expected of them. Make sure that the job skills, responsibilities, and qualities that define success for each employee are included in the competencies. Initiate the first step of the performance management program as soon as the employee is hired, and revisit them annually.
Companies will get immediate performance improvements by doing this as the employees know what their higher authorities expect of them.
2. Performance review is an essential part of an effective performance management program. Therefore, decide how often the managers will deliver performance reviews to their team/employees. An annual performance review is mostly practiced, but continuous or frequent reviews would give the managers an opportunity to address the employees' negative behavior or oversight before it affects their productivity. Frequent reviews are time-consuming and difficult for managers and HR, which is why they agree to supplement the usual performance reviews with online talent and performance appraisal management tools.
Along with this, communicating what an employee did well or not so well over a quick conversation or an email can have a lasting impact.
3. Hold your managers accountable for making the assessments once the schedule of how often the performance review has to be conducted is set up. Managers need to evaluate their team during the assessment. They can use any sort of rating system to assess employees for their KPIs.
Note: Managers need to be honest at the time of employee assessment. If employees are performing well, they deserve to hear that. If they are doing a bad job, that should be pointed out, and what they need to do to correct it should also be told. The manager should also be able to tell them the exact reason behind the rating they give to every employee.
4. During the employee review meeting, employees should also be given a chance to acknowledge the feedback they receive. The data generated at the time of performance review should be incorporated into human resource planning. HR should consider it while revising employee compensation, setting up employee training programs, defining long-term succession plans, and identifying candidates who deserve fast-track career growth.
By following these steps, the organization can not only have an effective performance management program but also have an opportunity to improve their business.
The Role of Performance Management Software in an Organization
The above-mentioned task is not easy for HRs. It’s tough to evaluate the performance of all the employees manually. HR is also a human being and hence makes mistakes as it is almost impossible to remember the yearly data. So here is the solution to the problem of HRs. Performance Management Software can troubleshoot all such problems in an organization. It plays a very important role in evaluating and giving exact results, which also satisfies the employee.
Like finance, human resources, sales and marketing, supply chain management, and other departments and systems, the performance management system has a key role to play in improving the overall value of an organization. Having performance management software might sound expensive or like a huge investment, but it is not. Therefore, when you have had a thought of implementing performance management software in your organization, it is very important to know what its key roles are.
Functions and Features of Performance Management Software
To begin with its functions, performance management software is designed to initiate interaction and feedback between the employees and management. It helps employees get a clear picture of what is expected of them to reach the organizational goals and objectives. Performance management software also ensures that employees understand the importance of their contributions to the organization.
The features of performance management software are well-structured to manage communication between various levels of an organization. The employee management feature of performance management software allows you to manage complete employee profiles and track their career history. You can also capture their skill sets, education, and experience. The continuous feedback and social recognition feature helps provide continuous feedback to team members, peers, and managers. It also helps pass on appreciations and critical inputs without having to wait for the appraisal process. With the help of performance management software, managers can set clear, achievable yet challenging goals for their team.
An organization that does not properly implement performance management software may not experience the possible benefits of increased and continuous communication and workforce development. So why not consider an efficient, customizable, and easy-to-use performance management software/tool to manage your people to maximize profits?
Regards
From India, Chennai
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Motivations for Employees to Work Hard
The motivations for employees to work hard are:
- To receive the manager's appreciation for a job well done,
- To obtain timely feedback on areas of improvement,
- To be financially rewarded for contributions made and to achieve career growth.
These are reasonable expectations from an employee because:
1) The need for human beings to be appreciated by others is innate in their nature as social beings.
2) The desire to grow financially is universal.
3) In addition to basic financial needs, employees also seek higher-level needs such as challenges, increased responsibilities, and a sense of contributing to something greater than themselves.
Traditional Performance Reviews
Performance reviews are typically conducted annually in organizations to evaluate employees' year-long performance and determine promotions and salary increments. However, the performance review process often becomes a challenge for employees, managers, and HR. The following are some issues faced by each stakeholder:
Manager
1) Difficulty in recalling the employee's contributions throughout the year, leading to a focus on recent performance.
2) Viewing reviews as a yearly formality rather than an objective assessment.
Employee
1) Feeling judged by the manager without sufficient evidence provided for ratings.
2) Positive contributions may be overlooked in favor of highlighting negatives.
3) In today's collaborative organizations, an annual 360-degree feedback may not be adequate due to interdependencies.
These ineffective performance management practices impact both employee growth and organizational efficiency.
The New Solution for Effective Performance Management: Periodic Reviews and Continuous Feedback
The challenges mentioned can be addressed by implementing bottom-up periodic review plans, continuous feedback, and social rewards and recognition programs initiated by managers and employees.
Continuous feedback enables employees to receive feedback throughout the year from various sources, enhancing validation and moderation.
Benefits of Effective Performance Management
1) Immediate feedback helps employees understand their performance and take corrective actions promptly based on fresh evidence.
2) Multiple feedback sources enhance validation for both managers and employees.
3) Year-end reviews become smoother as expectations and feedback are communicated regularly, avoiding surprises.
4) Organizations can explore peer-reviewed rewards and recognition programs linked to financial incentives.
Gartner suggests balancing traditional top-down performance reviews and pay-for-performance programs with bottom-up social recognition and rewards for improved employee engagement, motivation, and development.
About the Author: Kavitha Kalyanasundaram is the Implementation Manager at Synergita.
From India, Chennai
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The motivations for employees to work hard are:
- To receive the manager's appreciation for a job well done,
- To obtain timely feedback on areas of improvement,
- To be financially rewarded for contributions made and to achieve career growth.
These are reasonable expectations from an employee because:
1) The need for human beings to be appreciated by others is innate in their nature as social beings.
2) The desire to grow financially is universal.
3) In addition to basic financial needs, employees also seek higher-level needs such as challenges, increased responsibilities, and a sense of contributing to something greater than themselves.
Traditional Performance Reviews
Performance reviews are typically conducted annually in organizations to evaluate employees' year-long performance and determine promotions and salary increments. However, the performance review process often becomes a challenge for employees, managers, and HR. The following are some issues faced by each stakeholder:
Manager
1) Difficulty in recalling the employee's contributions throughout the year, leading to a focus on recent performance.
2) Viewing reviews as a yearly formality rather than an objective assessment.
Employee
1) Feeling judged by the manager without sufficient evidence provided for ratings.
2) Positive contributions may be overlooked in favor of highlighting negatives.
3) In today's collaborative organizations, an annual 360-degree feedback may not be adequate due to interdependencies.
These ineffective performance management practices impact both employee growth and organizational efficiency.
The New Solution for Effective Performance Management: Periodic Reviews and Continuous Feedback
The challenges mentioned can be addressed by implementing bottom-up periodic review plans, continuous feedback, and social rewards and recognition programs initiated by managers and employees.
Continuous feedback enables employees to receive feedback throughout the year from various sources, enhancing validation and moderation.
Benefits of Effective Performance Management
1) Immediate feedback helps employees understand their performance and take corrective actions promptly based on fresh evidence.
2) Multiple feedback sources enhance validation for both managers and employees.
3) Year-end reviews become smoother as expectations and feedback are communicated regularly, avoiding surprises.
4) Organizations can explore peer-reviewed rewards and recognition programs linked to financial incentives.
Gartner suggests balancing traditional top-down performance reviews and pay-for-performance programs with bottom-up social recognition and rewards for improved employee engagement, motivation, and development.
About the Author: Kavitha Kalyanasundaram is the Implementation Manager at Synergita.
From India, Chennai
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I have gone through the article and would like to share my comments.
Firstly, you can refer to my previous comments on the subject: https://www.citehr.com/9777-need-hel...tml#post890032.
I have mentioned in earlier posts that implementing 360-degree appraisal requires a lot of organizational maturity. Have your systems and processes been stabilized 100%?
Running the traditional performance appraisal process itself is a big task. Have you trained your managers on performance appraisal? It is not just an annual ritual but a tool for organizational development. Do they understand this? How do you handle grievances that arise from the performance appraisal process?
Instead of starting with 360-degree performance appraisal, you could consider initiating 360-degree feedback. If this mechanism works well, then you can transition to 360-degree performance appraisal.
Currently, I am consulting on a PMS assignment. I have noticed significant gaps even in the traditional Performance Appraisal (PA) process. If they were to transition to 360 degrees without addressing these issues, it could do more harm than good. Therefore, I recommend proceeding cautiously. While the concept of 360-degree appraisal may sound appealing, practical considerations must also be taken into account.
Regards,
Dinesh V Divekar
Management & Behavioral Training Consultant
"Limit of your words is the limit of your world"
From India, Bangalore
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Firstly, you can refer to my previous comments on the subject: https://www.citehr.com/9777-need-hel...tml#post890032.
I have mentioned in earlier posts that implementing 360-degree appraisal requires a lot of organizational maturity. Have your systems and processes been stabilized 100%?
Running the traditional performance appraisal process itself is a big task. Have you trained your managers on performance appraisal? It is not just an annual ritual but a tool for organizational development. Do they understand this? How do you handle grievances that arise from the performance appraisal process?
Instead of starting with 360-degree performance appraisal, you could consider initiating 360-degree feedback. If this mechanism works well, then you can transition to 360-degree performance appraisal.
Currently, I am consulting on a PMS assignment. I have noticed significant gaps even in the traditional Performance Appraisal (PA) process. If they were to transition to 360 degrees without addressing these issues, it could do more harm than good. Therefore, I recommend proceeding cautiously. While the concept of 360-degree appraisal may sound appealing, practical considerations must also be taken into account.
Regards,
Dinesh V Divekar
Management & Behavioral Training Consultant
"Limit of your words is the limit of your world"
From India, Bangalore
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Need for Continuous Feedback
If we look at successful organizations, we can easily see that they comprise capable people who perform well to achieve the organization's goals. Organizations realize the importance of good performance by employees for being successful. So, they give importance to performance management activities. Performance management starts by setting goals and then reviewing employee performance against these goals. Traditionally, performance was reviewed only once or twice a year. However, current-day performance management focuses on continuous coaching and development of employees and giving continuous or regular feedback on their performance.
Continuous feedback is feedback that managers give to employees on their performance regularly instead of waiting until the year-end. Continuous feedback ensures that employees are well appreciated for their good performance, and a corrective path is initiated much earlier in case there are performance slips.
Benefits of Continuous Feedback
1. Eliminates the Problem of Recency: One of the main complaints in a yearly performance appraisal is that managers remember only the past few months of employee performance. So, feedback given does not take into account the overall year’s performance. Providing feedback in a regular or continuous fashion will eliminate the problem of recency completely.
2. No Surprise Elements: Sometimes, employees think they are performing exceedingly well. But during performance appraisals, if performance issues are pointed out, it comes as a surprise or shock for them. In the case of continuous feedback, the surprise element can be eliminated as employees are given feedback throughout the year.
3. Better Probability of Meeting Organization Goals: Continuous feedback and coaching allow managers to understand problem areas and take corrective paths as soon as possible. Also, any changes in the organization goals can be acted upon. So, the probability of employees achieving the goals that are set for them is high.
4. Good Motivator: In continuous feedback, managers recognize or appreciate good performance by employees immediately. This motivates the employees to perform well always to keep earning such accolades.
5. Manager Bias Can Be Eliminated: A system of continuous feedback can be open not only for managers but other relevant people as well. So, a skip-level manager, a peer, or an HR manager can be given rights to provide feedback. Such a system will eliminate manager bias, as views of all concerned people are obtained.
6. Smooth Yearly Appraisals: When feedback is given continuously, it is much easier for managers to refer to it for completing the yearly appraisals. Also, the appraisal meetings are much easier, as employees would have already been communicated on their performance throughout the year.
Is Giving Feedback Continuously Practically Possible?
Well, the question on top of everyone’s mind will be whether continuous feedback is practically possible. When even once-a-year or twice-a-year appraisals seem to be time-consuming and difficult to get compliance, would managers have time to review the employees' work continuously?
Actually, it may not be as difficult as one thinks to provide continuous feedback. When managers and employees are educated on the benefits of continuous feedback, they would be willing to try it. Also, if a simple and easy-to-use software is provided to record the feedback in a simple format, it would enable the managers to do it easily.
Regards
From India, Chennai
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If we look at successful organizations, we can easily see that they comprise capable people who perform well to achieve the organization's goals. Organizations realize the importance of good performance by employees for being successful. So, they give importance to performance management activities. Performance management starts by setting goals and then reviewing employee performance against these goals. Traditionally, performance was reviewed only once or twice a year. However, current-day performance management focuses on continuous coaching and development of employees and giving continuous or regular feedback on their performance.
Continuous feedback is feedback that managers give to employees on their performance regularly instead of waiting until the year-end. Continuous feedback ensures that employees are well appreciated for their good performance, and a corrective path is initiated much earlier in case there are performance slips.
Benefits of Continuous Feedback
1. Eliminates the Problem of Recency: One of the main complaints in a yearly performance appraisal is that managers remember only the past few months of employee performance. So, feedback given does not take into account the overall year’s performance. Providing feedback in a regular or continuous fashion will eliminate the problem of recency completely.
2. No Surprise Elements: Sometimes, employees think they are performing exceedingly well. But during performance appraisals, if performance issues are pointed out, it comes as a surprise or shock for them. In the case of continuous feedback, the surprise element can be eliminated as employees are given feedback throughout the year.
3. Better Probability of Meeting Organization Goals: Continuous feedback and coaching allow managers to understand problem areas and take corrective paths as soon as possible. Also, any changes in the organization goals can be acted upon. So, the probability of employees achieving the goals that are set for them is high.
4. Good Motivator: In continuous feedback, managers recognize or appreciate good performance by employees immediately. This motivates the employees to perform well always to keep earning such accolades.
5. Manager Bias Can Be Eliminated: A system of continuous feedback can be open not only for managers but other relevant people as well. So, a skip-level manager, a peer, or an HR manager can be given rights to provide feedback. Such a system will eliminate manager bias, as views of all concerned people are obtained.
6. Smooth Yearly Appraisals: When feedback is given continuously, it is much easier for managers to refer to it for completing the yearly appraisals. Also, the appraisal meetings are much easier, as employees would have already been communicated on their performance throughout the year.
Is Giving Feedback Continuously Practically Possible?
Well, the question on top of everyone’s mind will be whether continuous feedback is practically possible. When even once-a-year or twice-a-year appraisals seem to be time-consuming and difficult to get compliance, would managers have time to review the employees' work continuously?
Actually, it may not be as difficult as one thinks to provide continuous feedback. When managers and employees are educated on the benefits of continuous feedback, they would be willing to try it. Also, if a simple and easy-to-use software is provided to record the feedback in a simple format, it would enable the managers to do it easily.
Regards
From India, Chennai
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Constructive Feedback During Performance Reviews
At the time of a performance review, feedback has to be given, and it is not always positive. The feedback must be honest, even when employees are reluctant to hear what you have to say. As a manager, how constructively you put forward the feedback during the performance review matters to an employee.
Therefore, whether you are offering good comments or criticism, keep these points in mind:
• Deliver your feedback in person: Schedule a meeting for about an hour with your employee and deliver his/her performance review. This will help in keeping it simple and straightforward.
• Avoid surprises: This is a must! Provide immediate feedback if you see any issue arising. Address the issue immediately with the employee and do not wait until things turn out to be really bad for both of you.
• Prepare your performance review in writing: Have proof before you decide on your reviews. Write down your thoughts and evaluate them to avoid confusion and disputes.
• Verify before you decide: If employee performance is obtained from a third party, you must verify it to check its accuracy before taking any action. Also, never mention the source of information or put it across intelligently as it may become a reason for conflict among the employees and result in a loss of trust.
• Keep performance review professional: Talk only about the employee's performance and appraisal during the performance review. This means no personal talks! The discussion should only be around the feedback and future focus.
• Positive and negative—keep a balance: Firstly, acknowledge the employee's positive contributions to the organization. Put forth your negative comments neatly and emphasize opportunities for improvement.
• Respect your employee: Speak to your employees with respect. Do not shout or talk with sarcasm.
• Commit only to what you can deliver: Do not make promises to your employees that you cannot fulfill. Speak accurately and mention only the possibilities.
• Don't skip reviewing your best talent: Performance reviews should be done for both the best and the worst employees of the organization. Do not miss talking to employees who do a good job. It motivates them to keep the good work going.
• Allow your employees to talk: Do not do all the talking. Acknowledge your employee's explanation even if you do not intend to change the conclusion.
• Be a guide: Give your employees some useful tips to help them improve in areas of growth and the workplace. Feedback followed by some tips would do well for your employees.
Regards
From India, Chennai
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At the time of a performance review, feedback has to be given, and it is not always positive. The feedback must be honest, even when employees are reluctant to hear what you have to say. As a manager, how constructively you put forward the feedback during the performance review matters to an employee.
Therefore, whether you are offering good comments or criticism, keep these points in mind:
• Deliver your feedback in person: Schedule a meeting for about an hour with your employee and deliver his/her performance review. This will help in keeping it simple and straightforward.
• Avoid surprises: This is a must! Provide immediate feedback if you see any issue arising. Address the issue immediately with the employee and do not wait until things turn out to be really bad for both of you.
• Prepare your performance review in writing: Have proof before you decide on your reviews. Write down your thoughts and evaluate them to avoid confusion and disputes.
• Verify before you decide: If employee performance is obtained from a third party, you must verify it to check its accuracy before taking any action. Also, never mention the source of information or put it across intelligently as it may become a reason for conflict among the employees and result in a loss of trust.
• Keep performance review professional: Talk only about the employee's performance and appraisal during the performance review. This means no personal talks! The discussion should only be around the feedback and future focus.
• Positive and negative—keep a balance: Firstly, acknowledge the employee's positive contributions to the organization. Put forth your negative comments neatly and emphasize opportunities for improvement.
• Respect your employee: Speak to your employees with respect. Do not shout or talk with sarcasm.
• Commit only to what you can deliver: Do not make promises to your employees that you cannot fulfill. Speak accurately and mention only the possibilities.
• Don't skip reviewing your best talent: Performance reviews should be done for both the best and the worst employees of the organization. Do not miss talking to employees who do a good job. It motivates them to keep the good work going.
• Allow your employees to talk: Do not do all the talking. Acknowledge your employee's explanation even if you do not intend to change the conclusion.
• Be a guide: Give your employees some useful tips to help them improve in areas of growth and the workplace. Feedback followed by some tips would do well for your employees.
Regards
From India, Chennai
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The Importance of Performance Management Systems
It is important for organizations to implement performance management software/systems. Most organizations use some form of performance appraisal system in their workplace. They use performance appraisal systems as communication tools that bridge the barrier between employees, top-level management, and the rest of the organization. It is also an integral part of the compensation system. However, many times, appraisal-related processes are poorly designed and implemented, which is why organizations feel that performance appraisals are not done effectively.
Signs of an Ineffective Performance Appraisal System
• All employees evaluated on the same factors: Evaluating employees of all levels and from different departments on the same factors or competencies is not correct. For example, a marketing professional and an IT professional will have different factors and competencies to be considered for evaluation.
• Measuring attributes are not well defined: The difference between poor, average, and outstanding should be well defined and understood by both the employees and the appraiser.
• Inconsistent evaluation among appraisers: The system should prompt the appraiser to give consistent comments and numbers to individual employees.
• All employees are rated on an average scale: When all employees are rated as average or below average, low performers will never attempt to improve, and very high-performing employees will be demotivated.
• Appraisals are not completed in time: Top-level managers are always occupied with numerous other tasks, and participating in appraisals might slip their minds. Reminding them to post their feedback manually is next to impossible, and without their comments and ratings, the appraisal process is not complete. Therefore, it is better to have an automated system.
• No slot for employee input: Self-evaluation holds great value during performance appraisal. If a system does not have a slot for employee input, the process is incomplete.
• System lacks customization: If the system isn't tailored to an individual employee's position, strengths, weaknesses, or career path, it is not particularly useful.
• Lacks confidentiality: If the system is not programmed to be confidential, employees will begin to compare themselves to what others do and receive. This creates low morale among employees and conflicts.
If you come across any of these signs in your appraisal system, consider implementing a proper performance management system/software.
From India, Chennai
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It is important for organizations to implement performance management software/systems. Most organizations use some form of performance appraisal system in their workplace. They use performance appraisal systems as communication tools that bridge the barrier between employees, top-level management, and the rest of the organization. It is also an integral part of the compensation system. However, many times, appraisal-related processes are poorly designed and implemented, which is why organizations feel that performance appraisals are not done effectively.
Signs of an Ineffective Performance Appraisal System
• All employees evaluated on the same factors: Evaluating employees of all levels and from different departments on the same factors or competencies is not correct. For example, a marketing professional and an IT professional will have different factors and competencies to be considered for evaluation.
• Measuring attributes are not well defined: The difference between poor, average, and outstanding should be well defined and understood by both the employees and the appraiser.
• Inconsistent evaluation among appraisers: The system should prompt the appraiser to give consistent comments and numbers to individual employees.
• All employees are rated on an average scale: When all employees are rated as average or below average, low performers will never attempt to improve, and very high-performing employees will be demotivated.
• Appraisals are not completed in time: Top-level managers are always occupied with numerous other tasks, and participating in appraisals might slip their minds. Reminding them to post their feedback manually is next to impossible, and without their comments and ratings, the appraisal process is not complete. Therefore, it is better to have an automated system.
• No slot for employee input: Self-evaluation holds great value during performance appraisal. If a system does not have a slot for employee input, the process is incomplete.
• System lacks customization: If the system isn't tailored to an individual employee's position, strengths, weaknesses, or career path, it is not particularly useful.
• Lacks confidentiality: If the system is not programmed to be confidential, employees will begin to compare themselves to what others do and receive. This creates low morale among employees and conflicts.
If you come across any of these signs in your appraisal system, consider implementing a proper performance management system/software.
From India, Chennai
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No doubt, the above points are valid, but the most important factor that makes any performance management system serve its purpose is the commitment of the supervising authority to objectivity in evaluating their employees, no matter how perfect it is on paper.
Regards,
B. Saikumar
HR & IR Advisor
From India, Mumbai
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Regards,
B. Saikumar
HR & IR Advisor
From India, Mumbai
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Performance Review and Appraisal Variability
Performance review and appraisal vary from industry to industry, organization to organization, service-oriented to manufacturing, and also from person to person, manager to manager. However, your suggestion is good: try to set aside ego and other distractions. A good review can bring rich rewards.
Best of luck...
From India, Arcot
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Performance review and appraisal vary from industry to industry, organization to organization, service-oriented to manufacturing, and also from person to person, manager to manager. However, your suggestion is good: try to set aside ego and other distractions. A good review can bring rich rewards.
Best of luck...
From India, Arcot
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Objective Performance Appraisals: Challenges and Common Errors
Organizations strive to conduct their performance appraisals objectively. However, a certain degree of subjectivity and bias seems unavoidable when managers rate employees on their performance. One main factor contributing to subjectivity in ratings is the difficulty in setting up number-driven goals for all employees and tracking and measuring them effectively.
Common Rating Errors in Performance Appraisals
1. **Halo Effect:** When an employee performs well in a few areas of their work, managers tend to rate them well even in unrelated areas where their performance was mediocre. This is known as the "Halo" effect. The opposite is the "Horns" effect, where a manager rates an employee poorly after spotting a few areas of underperformance. In this type of rating error, the overall rating of an employee is influenced by good or bad performance in a few areas of their work.
2. **Recency:** Another common error in rating is the problem of recency. Although performance appraisals are meant to rate an employee's performance throughout a year (or a 6-month period, etc.), managers tend to remember only the past few months' performance and rate the employee based on that. Thus, any performance highs or lows in the last few months significantly influence the rating.
3. **Central Tendency:** Central tendency is a very common rating error. Sometimes, managers, intending to avoid conflict, play it safe by rating employees in the middle of the rating scale. This might result in a "met expectation" rating for all performance parameters, irrespective of whether they have actually met them or not.
4. **Leniency/Severity:** Managers sometimes rate employees leniently or severely due to factors like personal bias or preferences. Their general style may be either lenient or strict. They might compare an employee's performance with their personal standards instead of the standards expected from the role. This is also called the "Frame of Reference" error. When employees are similar to the manager, it can influence the manager's rating, making it lenient. In such cases, the rating is either positively or negatively skewed.
5. **Contrast Effect:** This occurs when managers rate an employee by comparing them with other employees. Instead of giving ratings based on the standards required for the job, managers rate a person by comparing them with others' performance. A person may receive higher ratings just because they are better than others, but they may still lag behind when compared to the expected standards.
6. **Stereotyping:** Stereotyping occurs when managers generalize an employee's performance based on a group. Grouping can be age-wise, experience-wise, region-wise, or university-based, and so on. For instance, managers may stereotype by saying that all young employees do not take ownership of their work, or that freshers from a particular university have great technical skills. However, it is important that managers consider individual differences.
HR teams can educate managers about these common rating errors and encourage them to be aware of them when conducting performance ratings. Managers who are well-informed about these issues will tend to approach appraisals more objectively and ensure that bias does not creep into their ratings.
From India, Chennai
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Organizations strive to conduct their performance appraisals objectively. However, a certain degree of subjectivity and bias seems unavoidable when managers rate employees on their performance. One main factor contributing to subjectivity in ratings is the difficulty in setting up number-driven goals for all employees and tracking and measuring them effectively.
Common Rating Errors in Performance Appraisals
1. **Halo Effect:** When an employee performs well in a few areas of their work, managers tend to rate them well even in unrelated areas where their performance was mediocre. This is known as the "Halo" effect. The opposite is the "Horns" effect, where a manager rates an employee poorly after spotting a few areas of underperformance. In this type of rating error, the overall rating of an employee is influenced by good or bad performance in a few areas of their work.
2. **Recency:** Another common error in rating is the problem of recency. Although performance appraisals are meant to rate an employee's performance throughout a year (or a 6-month period, etc.), managers tend to remember only the past few months' performance and rate the employee based on that. Thus, any performance highs or lows in the last few months significantly influence the rating.
3. **Central Tendency:** Central tendency is a very common rating error. Sometimes, managers, intending to avoid conflict, play it safe by rating employees in the middle of the rating scale. This might result in a "met expectation" rating for all performance parameters, irrespective of whether they have actually met them or not.
4. **Leniency/Severity:** Managers sometimes rate employees leniently or severely due to factors like personal bias or preferences. Their general style may be either lenient or strict. They might compare an employee's performance with their personal standards instead of the standards expected from the role. This is also called the "Frame of Reference" error. When employees are similar to the manager, it can influence the manager's rating, making it lenient. In such cases, the rating is either positively or negatively skewed.
5. **Contrast Effect:** This occurs when managers rate an employee by comparing them with other employees. Instead of giving ratings based on the standards required for the job, managers rate a person by comparing them with others' performance. A person may receive higher ratings just because they are better than others, but they may still lag behind when compared to the expected standards.
6. **Stereotyping:** Stereotyping occurs when managers generalize an employee's performance based on a group. Grouping can be age-wise, experience-wise, region-wise, or university-based, and so on. For instance, managers may stereotype by saying that all young employees do not take ownership of their work, or that freshers from a particular university have great technical skills. However, it is important that managers consider individual differences.
HR teams can educate managers about these common rating errors and encourage them to be aware of them when conducting performance ratings. Managers who are well-informed about these issues will tend to approach appraisals more objectively and ensure that bias does not creep into their ratings.
From India, Chennai
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Performance Management Survey Insights
In a survey conducted by Deloitte, more than half of the executives questioned (58%) believe that their current performance management approach drives neither employee engagement nor high performance. Source: Harvey Business Review (HBR)
The current performance management practice of rating employees is subjective. Filling out forms and holding meetings to agree on ratings are time-consuming, and the end results are not as intended. It essentially ends up assessing past performance instead of being agile and driving better performance.
Companies are trying out newer performance management practices to engage their employees and inculcate a high-performance culture. This is a good and much-needed change.
In this webinar, we will look at the most important modern performance management practice: continuous interaction between manager and employee to set expectations, coach, and guide. Basically, the focus is on agility.
Topic Content
1) Current Performance Management Process Challenges – A quick recap of the performance management
2) The new performance management practices and benefits and how some organizations are adapting these.
The webinar will be held on 19th August 2015, 11:30 am - 12:30 pm IST.
Register Here: https://attendee.gotowebinar.com/reg...16989268336898
From India, Chennai
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In a survey conducted by Deloitte, more than half of the executives questioned (58%) believe that their current performance management approach drives neither employee engagement nor high performance. Source: Harvey Business Review (HBR)
The current performance management practice of rating employees is subjective. Filling out forms and holding meetings to agree on ratings are time-consuming, and the end results are not as intended. It essentially ends up assessing past performance instead of being agile and driving better performance.
Companies are trying out newer performance management practices to engage their employees and inculcate a high-performance culture. This is a good and much-needed change.
In this webinar, we will look at the most important modern performance management practice: continuous interaction between manager and employee to set expectations, coach, and guide. Basically, the focus is on agility.
Topic Content
1) Current Performance Management Process Challenges – A quick recap of the performance management
2) The new performance management practices and benefits and how some organizations are adapting these.
The webinar will be held on 19th August 2015, 11:30 am - 12:30 pm IST.
Register Here: https://attendee.gotowebinar.com/reg...16989268336898
From India, Chennai
Acknowledge(0)Amend(0)
In a survey conducted by Deloitte, more than half of the executives questioned (58%) believe that their current performance management approach neither drives employee engagement nor high performance. Source: Harvard Business Review (HBR)
The present-day performance management practice of rating employees is subjective, filling out forms is time-consuming, performance review meetings are challenging, and the end results are not what is intended. It basically ends up assessing past performance instead of being forward-looking, agile, and driving better performance.
Join us for this free webinar, where we will look at “new and agile” performance management practices and how organizations are adopting them to inculcate a high-performance culture and engage their employees.
Our featured speaker, Ms. Keree Brannen of BusinesSuites® will share her experience in adopting the modern performance management practice of continuous feedback in her organization and how it benefits their employees.
Topic Content:
1. Current Performance Management Process Challenges – A quick recap of the performance management.
2. The new performance management practices, its benefits, and how some organizations are adapting these.
3. Impact of Continuous Feedback on Employee Performance.
Presenter:
Kavitha Kalyanasundaram
Specialist in HR Performance Management System
Synergita
Keynote Speaker:
Keree Brannen
People Operations Specialist
BusinesSuites®
Date: 7th Oct 2015
Time: 2:00 pm EST
Regards,
From India, Chennai
Acknowledge(0)Amend(0)
The present-day performance management practice of rating employees is subjective, filling out forms is time-consuming, performance review meetings are challenging, and the end results are not what is intended. It basically ends up assessing past performance instead of being forward-looking, agile, and driving better performance.
Join us for this free webinar, where we will look at “new and agile” performance management practices and how organizations are adopting them to inculcate a high-performance culture and engage their employees.
Our featured speaker, Ms. Keree Brannen of BusinesSuites® will share her experience in adopting the modern performance management practice of continuous feedback in her organization and how it benefits their employees.
Topic Content:
1. Current Performance Management Process Challenges – A quick recap of the performance management.
2. The new performance management practices, its benefits, and how some organizations are adapting these.
3. Impact of Continuous Feedback on Employee Performance.
Presenter:
Kavitha Kalyanasundaram
Specialist in HR Performance Management System
Synergita
Keynote Speaker:
Keree Brannen
People Operations Specialist
BusinesSuites®
Date: 7th Oct 2015
Time: 2:00 pm EST
Regards,
From India, Chennai
Acknowledge(0)Amend(0)
In a survey conducted by Deloitte, more than half of the executives questioned (58%) believe that their current performance management approach neither drives employee engagement nor high performance. Source: Harvard Business Review (HBR)
The present-day performance management practice of rating employees is subjective, filling out forms is time-consuming, performance review meetings are challenging, and the end results are not what is intended. It basically ends up assessing past performance, instead of being forward-looking, agile, and driving better performance.
Join us for this free webinar, where we will look at “new and agile” performance management practices and how organizations are adopting them to inculcate a high-performance culture and engage their employees.
Our featured speaker, Ms. Keree Brannen of BusinesSuites® will share her experience in adopting the modern performance management practice of continuous feedback in her organization and how it benefits their employees.
Topic Content:
1. Current Performance Management Process Challenges – A quick recap of the performance management.
2. The New Performance Management Practices, Its Benefits, and How Some Organizations Are Adapting These.
3. Impact of Continuous Feedback on Employee Performance.
Presenter:
Kavitha Kalyanasundaram
Specialist in HR Performance Management System
Synergita
Keynote Speaker:
Keree Brannen
People Operations Specialist
BusinesSuites®
Date: 7th Oct 2015
Time: 2:00 pm EST
Register here: https://attendee.gotowebinar.com/reg...06329158564353
From India, Chennai
Acknowledge(0)Amend(0)
The present-day performance management practice of rating employees is subjective, filling out forms is time-consuming, performance review meetings are challenging, and the end results are not what is intended. It basically ends up assessing past performance, instead of being forward-looking, agile, and driving better performance.
Join us for this free webinar, where we will look at “new and agile” performance management practices and how organizations are adopting them to inculcate a high-performance culture and engage their employees.
Our featured speaker, Ms. Keree Brannen of BusinesSuites® will share her experience in adopting the modern performance management practice of continuous feedback in her organization and how it benefits their employees.
Topic Content:
1. Current Performance Management Process Challenges – A quick recap of the performance management.
2. The New Performance Management Practices, Its Benefits, and How Some Organizations Are Adapting These.
3. Impact of Continuous Feedback on Employee Performance.
Presenter:
Kavitha Kalyanasundaram
Specialist in HR Performance Management System
Synergita
Keynote Speaker:
Keree Brannen
People Operations Specialist
BusinesSuites®
Date: 7th Oct 2015
Time: 2:00 pm EST
Register here: https://attendee.gotowebinar.com/reg...06329158564353
From India, Chennai
Acknowledge(0)Amend(0)
The Shift from Traditional Performance Management Systems
Almost every second organization is moving towards changing their entire performance management system. They aim to provide employees with a clear view of their performance and results. Companies are abolishing the Bell Curve and Forced Fit Ranking system, which are considered major detriments in the work culture. Organizations are now aware of these issues and are thankfully working positively to eliminate these systems.
Are Employees Benefiting from the Change?
The question remains: Are employees really benefiting from this change? Are they truly seeing a ray of hope? For most employees, the answer is "NO," and this is true to some extent. This system has been deeply embedded in the organizational framework, and it may take 10-15 years to fully transition away from it. As we know, overcoming an entrenched system and adopting a new one takes considerable time.
Organizations will need to adapt to a new environment, embracing concepts like continuous feedback, regular check-ins, periodic reviews, and one-to-one meetings. Companies will have to switch to automated processes, as traditional manual methods will no longer be effective in this new context.
Employees have a lot of faith in the new system, and we hope their faith continues to grow with these new trends. May companies do justice in every possible way.
For more info visit: www.synergita.com
From India, Chennai
Acknowledge(0)Amend(0)
Almost every second organization is moving towards changing their entire performance management system. They aim to provide employees with a clear view of their performance and results. Companies are abolishing the Bell Curve and Forced Fit Ranking system, which are considered major detriments in the work culture. Organizations are now aware of these issues and are thankfully working positively to eliminate these systems.
Are Employees Benefiting from the Change?
The question remains: Are employees really benefiting from this change? Are they truly seeing a ray of hope? For most employees, the answer is "NO," and this is true to some extent. This system has been deeply embedded in the organizational framework, and it may take 10-15 years to fully transition away from it. As we know, overcoming an entrenched system and adopting a new one takes considerable time.
Organizations will need to adapt to a new environment, embracing concepts like continuous feedback, regular check-ins, periodic reviews, and one-to-one meetings. Companies will have to switch to automated processes, as traditional manual methods will no longer be effective in this new context.
Employees have a lot of faith in the new system, and we hope their faith continues to grow with these new trends. May companies do justice in every possible way.
For more info visit: www.synergita.com
From India, Chennai
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Using Performance Appraisals to.doc
Basics of Performance Appraisals.pdf