Dear HR Professionals, I would appreciate it if you have guidelines on how to audit a "performance appraisal system" to ascertain its relevance and effectiveness in an organisation
From Kenya, Mombasa
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Dear Juma Mohamed,

You may conduct an audit of the Performance Appraisal (PA) process on the following aspects:

a) Whether the process is followed by all departments or not.
b) Whether the process is followed for all levels or not.
c) Whether the process has a defined periodic cycle, and if so, whether the timeline is adhered to.

You may perform the audit of the Performance Appraisal (PA) on the following points:

d) Whether the costs and ratios associated with the business are assigned to the various HODs or not.
e) Whether the performance parameters are relevant to the business.
f) Whether the performance parameters are measurable for all levels and departments.
g) What is the breakdown of the performance score? Measure them percentage-wise on the following slabs: (i) 85% or above, (ii) 75% to 85%, (iii) 65% to 75%, (iv) below 65%.
h) What happens after the PA cycle? Has employee performance improved as a result of the PA?
i) Are there disputes between a manager and a subordinate regarding the score? If so, what is the percentage of disputes, and how are they handled?
j) Does the PA process foster attrition in the company?
k) Has the organization measured employee satisfaction with the PA process? If yes, what is the satisfaction percentage?

I trust that the above questions are more than sufficient.

Thanks,

Dinesh Divekar

From India, Bangalore
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