I would like to know the process of appraisal in the company. Till now, we have used an appraisal form in which the employee and their manager give ratings based on the employee's performance throughout the year.
But now, our management has decided to change this method of appraisal. Can somebody please suggest another effective way for this?
From India, Noida
Acknowledge(0)
Amend(0)
1But now, our management has decided to change this method of appraisal. Can somebody please suggest another effective way for this?
From India, Noida
Acknowledge(0)Amend(0)
Dear Shruti Arora,
From the Performance Appraisal (PA), you need to scale up to the Performance Management System (PMS).
Earlier, I have given a detailed reply on PMS. You may click the following link to refer to it:
https://www.citehr.com/showpost.php?...29&postcount=2
By the way, instituting PMS in the organization requires strong support from the Managing Director (MD). It cannot be instituted at the HR level. Do you have buy-in from him/her?
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
From the Performance Appraisal (PA), you need to scale up to the Performance Management System (PMS).
Earlier, I have given a detailed reply on PMS. You may click the following link to refer to it:
https://www.citehr.com/showpost.php?...29&postcount=2
By the way, instituting PMS in the organization requires strong support from the Managing Director (MD). It cannot be instituted at the HR level. Do you have buy-in from him/her?
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Shruti Arora, I suggest that you ask your management for information about the organization's goals for that specific year or the organization's mission for that particular year.
Creating an OKR System
Create an OKR for your company or organization at the quarterly level. Divide the organization OKR into team-level OKRs after that. Then divide the team-level OKRs into individual-level OKRs once again.
Mapping Employee Contributions
You can now map out what that specific employee has contributed or done for each quarter in percentage or number based on his/her job nature. If the employee has achieved a particular proportion, you can classify them as High, Medium, or Low, depending on what your organization prefers, and connect them to PayScale.
Quantifying OKRs
But make sure that each OKR can be quantified (in percentages or figures) so that it will be simple to gauge the contribution of the specific individual.
This is just an idea; you can customize this based on your industry type, business, and number of employees.
From India, Madurai
Acknowledge(0)Amend(0)
Creating an OKR System
Create an OKR for your company or organization at the quarterly level. Divide the organization OKR into team-level OKRs after that. Then divide the team-level OKRs into individual-level OKRs once again.
Mapping Employee Contributions
You can now map out what that specific employee has contributed or done for each quarter in percentage or number based on his/her job nature. If the employee has achieved a particular proportion, you can classify them as High, Medium, or Low, depending on what your organization prefers, and connect them to PayScale.
Quantifying OKRs
But make sure that each OKR can be quantified (in percentages or figures) so that it will be simple to gauge the contribution of the specific individual.
This is just an idea; you can customize this based on your industry type, business, and number of employees.
From India, Madurai
Acknowledge(0)Amend(0)
it should be two way process , any one way cannot justify it , employee and reporting manager has to come to agree and than only appraisal can be finalised .
From India, Vadodara
Acknowledge(0)Amend(0)
From India, Vadodara
Acknowledge(0)Amend(0)
Can you please elaborate how should I start following Performance management system in walkie talkie manufacturing company? Thanks & Regards,
From India, Noida
Acknowledge(0)Amend(0)
From India, Noida
Acknowledge(0)Amend(0)
Dear Shruti Arora,
If you wish to implement PMS in your company, then you need to first find out whether your MD understands what PMS is. Any kind of misunderstanding will have a fallback on the implementation. Secondly, he/she needs to accept the KRAs for themselves as well. At the top of the hierarchical pyramid lies the position of MD. Therefore, the process of fixing KRAs should start from their level. If the MD thinks that KRAs are only for juniors, then that is a mistaken view.
In a nutshell, please obtain buy-in from the MD on the implementation of PMS. Otherwise, mark my words, the exercise could become wasteful. If you wish to understand the immensity of the PMS process, then call me, and I shall explain in detail.
For Astha Agarwal: You have written, "employee and reporting manager have to come to an agreement, and only then can the appraisal be finalized." But what if there is a disagreement between the two? For the sake of agreement, Performance Appraisal (PA) cannot be contrived. A forced agreement will put both the Manager and the subordinate on an equal footing. In that case, what authority will managers have? The decision taken by the Manager should be final and binding on the subordinate. However, disputes do occur between the two. To avoid this, marks should be awarded based on evidence. If there is incontrovertible evidence of performance, then perception will not play a role. Neither the Manager nor the subordinate can tamper with the score.
However, creating an evidence-based marking system requires a lot of expertise. It demands a tremendous power of anticipation to foreclose the possibility of favoritism, disputes, or conflicts.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
If you wish to implement PMS in your company, then you need to first find out whether your MD understands what PMS is. Any kind of misunderstanding will have a fallback on the implementation. Secondly, he/she needs to accept the KRAs for themselves as well. At the top of the hierarchical pyramid lies the position of MD. Therefore, the process of fixing KRAs should start from their level. If the MD thinks that KRAs are only for juniors, then that is a mistaken view.
In a nutshell, please obtain buy-in from the MD on the implementation of PMS. Otherwise, mark my words, the exercise could become wasteful. If you wish to understand the immensity of the PMS process, then call me, and I shall explain in detail.
For Astha Agarwal: You have written, "employee and reporting manager have to come to an agreement, and only then can the appraisal be finalized." But what if there is a disagreement between the two? For the sake of agreement, Performance Appraisal (PA) cannot be contrived. A forced agreement will put both the Manager and the subordinate on an equal footing. In that case, what authority will managers have? The decision taken by the Manager should be final and binding on the subordinate. However, disputes do occur between the two. To avoid this, marks should be awarded based on evidence. If there is incontrovertible evidence of performance, then perception will not play a role. Neither the Manager nor the subordinate can tamper with the score.
However, creating an evidence-based marking system requires a lot of expertise. It demands a tremendous power of anticipation to foreclose the possibility of favoritism, disputes, or conflicts.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Dinesh Divekar,
Thank you for the detailed explanation. I agree with your points. Surely, implementing an OKR system cannot be done in a day or two; we have to do some homework.
I have a doubt here, sir. Can individual OKRs be quantified or defined in a measurable way to fulfill organizational goals? If they are measurable, why can they not be connected or linked to their performance? I need your advice on this.
Regards, Gowtham
From India, Madurai
Acknowledge(0)Amend(0)
Thank you for the detailed explanation. I agree with your points. Surely, implementing an OKR system cannot be done in a day or two; we have to do some homework.
I have a doubt here, sir. Can individual OKRs be quantified or defined in a measurable way to fulfill organizational goals? If they are measurable, why can they not be connected or linked to their performance? I need your advice on this.
Regards, Gowtham
From India, Madurai
Acknowledge(0)Amend(0)
Dear Gowtham, You may click the following link to refer to the OKRs of the Operations Team: https://quantive.com/resources/articles/operations-okrs In the above result, key results are given. These can be assigned to the individual.
Final Comments: When you assign OKRs to individuals, teams, or the organization, please avoid getting trapped in jargon. This is a common issue with HR professionals. When ensnared in the characteristic language of the HR profession, the end result is often given short shrift. To overcome this challenge, it is better to implement a Performance Management System (PMS) where the sole focus is on measuring costs and ratios. Each Key Result Area (KRA) must adhere to the SMART principle. If it is not SMART, it is not a KRA at all.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Final Comments: When you assign OKRs to individuals, teams, or the organization, please avoid getting trapped in jargon. This is a common issue with HR professionals. When ensnared in the characteristic language of the HR profession, the end result is often given short shrift. To overcome this challenge, it is better to implement a Performance Management System (PMS) where the sole focus is on measuring costs and ratios. Each Key Result Area (KRA) must adhere to the SMART principle. If it is not SMART, it is not a KRA at all.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Shruthi, there are various approaches to conducting employee appraisals, and it's great that your company is open to exploring different methods. Here are a few alternative approaches that you can consider:
360-Degree Feedback
Description: Involves gathering feedback from multiple sources, including peers, subordinates, superiors, and even external stakeholders.
Advantages: Provides a comprehensive and well-rounded view of an employee's performance. Reduces bias by incorporating diverse perspectives.
Disadvantages: Can be time-consuming and resource-intensive. Requires a well-structured process to ensure anonymity and honesty.
Objectives and Key Results (OKRs)
OKRs involve setting specific, measurable objectives and key results for each employee. Performance is then evaluated based on how well these objectives are met. This method focuses on outcomes rather than activities.
Continuous Feedback and Check-Ins
Instead of a once-a-year appraisal, implement a system of regular check-ins and feedback sessions between employees and their managers. This promotes ongoing performance discussions and allows for timely adjustments.
Behavioral Anchored Rating Scales (BARS)
Description: Evaluates performance based on specific behavioral indicators linked to different levels of performance.
Advantages: Provides specific and observable criteria for evaluation. Helps in linking behavior to outcomes.
Disadvantages: Requires a well-defined set of behaviors, which can be subjective to some extent.
Skill-based Assessment
Evaluate employees on specific skills and competencies that are crucial for their role. This can be particularly effective for roles where specific skills are paramount.
Management by Objectives (MBO)
Similar to OKRs, MBO involves setting specific objectives and goals, and then evaluating employee performance based on the achievement of these objectives.
Gamification of Performance Management
Introduce a gamified system where employees earn points or badges for achieving specific milestones or demonstrating desired behaviors.
Critical Incident Technique
Description: Focuses on significant events or behaviors, both positive and negative, that have a notable impact on performance.
Advantages: Offers specific examples for assessment. Helps in identifying strengths and areas for improvement.
Disadvantages: Can be subjective and reliant on individual judgment. May not cover all aspects of performance.
Ranking and Forced Distribution
Description: Employees are ranked in order of their performance, often leading to a predetermined distribution (e.g., top 10% are high performers, next 20% are average, etc.).
Advantages: Encourages differentiation between employees. Can help identify high-potential individuals.
Disadvantages: Can foster competition and a negative work environment. May not accurately reflect individual contributions.
Self-Assessment
Description: Employees evaluate their performance against predefined criteria or objectives.
Advantages: Encourages self-reflection and personal accountability. Provides insights into how employees perceive their contributions.
Disadvantages: Can be influenced by self-bias or a lack of self-awareness. Should be used in conjunction with other evaluation methods for a balanced view.
The most effective appraisal system may vary depending on the nature of your industry, company culture, and specific roles within your organization. It's a good idea to involve employees in the process to get their input and buy-in for the new approach.
It's important to note that no single method is universally superior, and organizations often use a combination of these methods to provide a comprehensive evaluation of employee performance. Additionally, effective implementation of any evaluation method requires clear communication, regular feedback, and ongoing support for employee development.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
360-Degree Feedback
Description: Involves gathering feedback from multiple sources, including peers, subordinates, superiors, and even external stakeholders.
Advantages: Provides a comprehensive and well-rounded view of an employee's performance. Reduces bias by incorporating diverse perspectives.
Disadvantages: Can be time-consuming and resource-intensive. Requires a well-structured process to ensure anonymity and honesty.
Objectives and Key Results (OKRs)
OKRs involve setting specific, measurable objectives and key results for each employee. Performance is then evaluated based on how well these objectives are met. This method focuses on outcomes rather than activities.
Continuous Feedback and Check-Ins
Instead of a once-a-year appraisal, implement a system of regular check-ins and feedback sessions between employees and their managers. This promotes ongoing performance discussions and allows for timely adjustments.
Behavioral Anchored Rating Scales (BARS)
Description: Evaluates performance based on specific behavioral indicators linked to different levels of performance.
Advantages: Provides specific and observable criteria for evaluation. Helps in linking behavior to outcomes.
Disadvantages: Requires a well-defined set of behaviors, which can be subjective to some extent.
Skill-based Assessment
Evaluate employees on specific skills and competencies that are crucial for their role. This can be particularly effective for roles where specific skills are paramount.
Management by Objectives (MBO)
Similar to OKRs, MBO involves setting specific objectives and goals, and then evaluating employee performance based on the achievement of these objectives.
Gamification of Performance Management
Introduce a gamified system where employees earn points or badges for achieving specific milestones or demonstrating desired behaviors.
Critical Incident Technique
Description: Focuses on significant events or behaviors, both positive and negative, that have a notable impact on performance.
Advantages: Offers specific examples for assessment. Helps in identifying strengths and areas for improvement.
Disadvantages: Can be subjective and reliant on individual judgment. May not cover all aspects of performance.
Ranking and Forced Distribution
Description: Employees are ranked in order of their performance, often leading to a predetermined distribution (e.g., top 10% are high performers, next 20% are average, etc.).
Advantages: Encourages differentiation between employees. Can help identify high-potential individuals.
Disadvantages: Can foster competition and a negative work environment. May not accurately reflect individual contributions.
Self-Assessment
Description: Employees evaluate their performance against predefined criteria or objectives.
Advantages: Encourages self-reflection and personal accountability. Provides insights into how employees perceive their contributions.
Disadvantages: Can be influenced by self-bias or a lack of self-awareness. Should be used in conjunction with other evaluation methods for a balanced view.
The most effective appraisal system may vary depending on the nature of your industry, company culture, and specific roles within your organization. It's a good idea to involve employees in the process to get their input and buy-in for the new approach.
It's important to note that no single method is universally superior, and organizations often use a combination of these methods to provide a comprehensive evaluation of employee performance. Additionally, effective implementation of any evaluation method requires clear communication, regular feedback, and ongoing support for employee development.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Performance Management System.doc