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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. So, they expect that the rating should be automatically given based on employee’s performance and pre-defined rating 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.

First, let us understand the parameters or the dimensions which are rated, as part of the performance appraisals. Generally, there are set of performance dimensions or goals that an employee is required to achieve during the course of a year. Also, there are a set of behavioral dimensions which an employee needs to exhibit to fulfill these goals. So, generally, rating is given to both these dimensions, but the weight-age may vary between both.

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:

1) Performance dimensions or goals are generally quantifiable. But, 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 more easier, than defining goals for people working in a functional team.

2) 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.

3) Behavioral dimensions, like communication skills, cannot be quantified. So, automation of rating cannot be considered for rating behavioral dimensions, and so the bias element cannot be totally eliminated.

4) 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 control of the employee. Penalizing a person for this by automating a rating might be too harsh. Some subjectivity of manager involvement in such cases would be better.

From India, Chennai
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Dear Elan,

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 measures 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-performance-management-system.html#post2144012

https://www.citehr.com/490150-job-description-link-kra-kpi-pms.html#post2142100

Thanks,

Dinesh V Divekar

From India, Bangalore
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Annual employee review is a traditional practice followed in every organization. Why do organizations have annual reviews at the first place? Basically, it is carried out to monitor employees’ performance. The question is how is it possible for the managers to remember a year’s worth of employees’ activities? Therefore, 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 the regular employee feedback or continuous employees feedback. It is an ongoing debate if continuous employee feedback is better or annual feedback is better.

So, let us catch on some points that describe how continuous employee feedback is better than annual feedback!

Continuous employee feedback helps keep a balance between positive and negative feedback. We often think that better feedback means honest criticism, which is not true. At annual feedback, managers do not get much time to think and recollect about 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 way too far to think about training and development. Whereas, in continuous feedback, employees are tracked regularly and if required are given proper training to enhance their efficiency.

Managers get to initiate employee engagement with continuous employee feedback process. Employee engagement gives rise to many discussions that takes work to higher level. More you discuss, more opinions and ideas are gathered which will in turn help the project/work get better.

Mis-communication is one thing that lets down a lot of activities at workplace. More than 80% of issues at workplace are due to mis-communications. Continuous employee feedback helps clarify mis-communications, keeping employees and organization in sync and on track.

Talking about performance regularly lets employees set a goal for themselves. When employees know what value their contributions really hold, they are motivated to perform better than before. It is a good thing for the organization and for the employees too.

So, why not implement continuous employee feedback system when there is a software to help you do it!

From India, Chennai
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Hi,

Continuous feedback system is the best performance review process for a start-up organization. There is a software called "Better Feedback" which will help you learn more about the system. The outline of the software focuses on: motivating and aligning employees, creating a performance culture, tracking progress and achievements, and increasing productivity. This type of process is known as KAIZEN (Continuous Improvement). In Japan, it is known as Adopt Change. This feedback system needs careful observation as it mainly deals with risk factors in heavy manufacturing processes.

Hope this information helps you.

Good luck!

From India, Bhubaneswar
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Recruiting right people to the right job is one of the most important responsibilities of an HR Manager. Even after performing this responsibility well, he cannot sit back and relax. He has another challenge that is to retain the good talent that was hired by him.

Factors that motivate employees to continue in a job include job satisfaction, career development, recognition of good work, having understanding managers and so on. While “good pay” is also one of them, it does not fall under the main motivators that delight the employee. 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 long term loyalty of the employees to their organization.

Therefore, the basic foundation, as we understand, is to define good employee performance management policies that reduce attrition rate in an organization.

employee performance management to reduce employee attrition Employee performance management increases employee retention rate

Here are the main factors that would help lower employee attrition rate.

1) Define the right set of competencies for different job roles. An ability to customize this for individuals would be an added advantage.

2) Set standardized goals for the job roles, with an ability to customize for each individual. Also, employees goals would have to align with the organization 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.

Reward the good performers.

5) Define an annual appraisal process which is simple. Activities should be kept to the minimum and the important ones, like rating and career development meeting should be given importance. Approval mechanism should be simple and clear. Simplicity is the key for effective use.

6) The end result of appraisals should be aimed for career development of an employee. Ability to define career development plans and tracking to closure would be good.

Once these policies are base-lined, organizations can look into automating them with clear, customizable performance management software, to reduce the amount of manual efforts.

Therefore, having better employee performance management policies will not only minimize the employee attrition, but also enhances their efficiency helping the organization touch the heights of success.

From India, Chennai
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Nice write-up, Elan. Great work!

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From India, Mumbai
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Employee performance is usually measured in terms of results and time. But what I feel is just time and result cannot be the parameters to measure employee performance. For example, an employee who shows 9 hours on his worksheet might have wasted most of his time or might have not made much within those hours. Whereas, an employee who works for 5 hours a day might have delivered more on the project he is 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 glare to the work you do. Creativity in the work you do shows that you can think in different terms to make the outcome look better and get the best results. So, an employee can be measured in terms of his/her creative ability.

Communication: Creativity is understood and achieved only when you are able to 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 he or she is 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 like it! It perfectly shows their efficiency.

Personal habits: Talking over the phone for long hours, not being in their seat during work hours, gossiping, sharing tips and recipes during the meetings, throwing 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 want to learn more to better 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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Often we hear the term employee recognition being discussed in various forums. Time and again, the best strategies for effective employee recognition have been debated and various theories have been brought about. This entire buzz around employee recognition happens because most organizations and HR professionals do realize the value and impact that good employee recognition can create.

Having recognized the importance and impact that positive employee appreciation can create, many organizations device various sorts of employee recognition plans that they think will best suit their organization. They spend a lot of time and resources in defining how each type of recognition should take place and also painstakingly define a process around it. Although it is good to have a well-defined set of rules on how and why appreciations should be given to employees, many a time, the true sense of purpose for which recognitions are meant to be are lost in the haywire of tedious processes.

Organizations who spend so much of time to define ‘how’ and ‘why’ recognition should take place, often fail to address one another, yet very important dimension of “when” the recognition ought to be done. Thus all efforts spent towards the meticulous planning usually end up as a bad recognition plan and the positive outcomes sought after employee appreciations are never realized. Due to this many organizations who enthusiastically sought to derive recognition plans often lose their interest and the whole process silently withers away.

Timely appreciations are a true key to trigger those positive outcomes desired by many organizations. When an employee receives appreciation right after he has done a great job, the joy he experiences on receiving this note of appreciation or recognition is manifold by many times and so does his motivation to repeat similar behavior or perform even better. While he might still be happy to receive a delayed appreciation, the zeal is lost and so it becomes difficult to reinforce the desired behavior of excellent performance.

Highly motivated employees are true assets to any organization. They create a positive energy that is contagious in the work sphere and thus serve as catalysts to motivate the entire workforce to achieve positive outcomes. Thus, timely appreciations, recognition and rewards are a sure shot to build and promote top notch performance and a positive attitude among the workforce in organizations.

From India, Chennai
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Positive employee appreciation may work but only if the employee believes that the appreciation is genuine and deserved. In other works, don’t lie.
From United States, Chelsea
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Dear Elan Synergita,

Would you mind sharing the source of your article or information?

If you have written the above article, then it appears there are serious misgivings regarding PMS in your mind. I humbly request you to read a few books on PMS, KPIs, KRAs, etc., to clear your doubts.

I help companies in designing and instituting Performance Management Systems (PMS) in the company. To learn more about instituting PMS in the company, you can click here to refer to my past post.

There is a lot of misconception about the concepts of KPI and KRA. To dispel these misconceptions, I have uploaded my presentation on Youtube. You can click here to watch the video.

I handle consulting on PMS. To learn more about my services, you can click here.

Thanks,

Dinesh V. Divekar

From India, Bangalore
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Hi,

Appreciations, awards, and rewards are no doubt the best tools to keep employee morale high and ever energetic. On the contrary, it is important for an organization to identify whether they need satisfied employees or excited employees. Satisfied employees need driving forces in the form of appreciations, etc., but employees that are ever dynamic and hungry for growth and development need only resources and management support to perform and enter into the zone of next practices, not just the best practices. Innovation is the key to success, and a similar mantra attached with higher dividends will result in a highly energetic workforce required for the organization.

Bijay

From India, Vadodara
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Hi Bijay,

Yes, innovation is required and it is a must for success. Still, nowadays, we are seeing satisfied employees as those who will sustain the growth, which is the base for further development. Also, 'next practices' step is only next to what is the 'best' practice we are following in the organization. As a person and employee who is working in a 'GREAT PLACE TO WORK' certified company, I am visualizing the 'appreciation' part working out better when compared to the 'excitement' category.

From India, Chennai
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Hi Sir,

Below is the extract from a book on management quotes:

"Helping People
If you are honest about helping others, rather than showing how smart the organization is, things are very easy. But the important thing is that people should realize that you care about them, you want them to succeed. As long as they understand that, people will accept innovative approaches."

Best practices lead to agreement on mediocrity and benchmarking. Employees need to be energized to a level where they are sure of best practices and ready for the next one to co-create and innovate. I appreciate your efforts to sustain the best practices but suggest leveraging the level of appreciation to employees to an extent where they are energized to go beyond the limits of best practices and involve in co-creativity. With this, the organization will benefit, and the employees too.

From India, Vadodara
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Employee Appreciation in the corporate culture, well, it does ring a bell. As the saying goes, “Next to excellence, comes the appreciation of it”. Businesses that proactively use appreciation attest to its powerful value. Appreciation when it becomes part of the corporate culture can be the secret weapon that propels companies past their competition.

Lack of appreciation in the workplace causes employee and customer frustration resulting in crippling performance, productivity and profitability.

We must find time to stop and thank people who make a difference. Too often, workers are ignored, asked to perform tasks without proper guidance, given little feedback so they can do their jobs well, rarely acknowledged for their good work and only singled out when they make mistakes. This takes its toll on even the most energetic and positive employees. Business owners and managers have to ask themselves how much they value their employees and customers. In many cases, the truthful answer would be ‘not much’.

There are lot of ways appreciation will motivate an employee, one quick thought will be handing out ‘employee of the month’ awards and make other token gestures to their employees. Appreciation is not just another word for gratitude, but rather is an obsession with value.

More than half of employees admit they would stay longer at their jobs if their bosses showed more appreciation according to a recent survey. While it may come as no surprise that the majority of employees surveyed say pay raises are the number one way to make them feel appreciated at work, other types of valued form of appreciation include unexpected treats and rewards, involvement in decision making, company wide recognition, opportunities to do interesting work, telecommuting options and company sponsored social events.

Genuine appreciation seeks out the value, the worth, within every employee, every customer interaction and every situation and then uses that value proactively to generate business success. For a job well done, saying a simple ‘thank you’ in person or a hand written thank you note, can go a long way in making employees feel appreciated. At a tech company, it’s all easy to just write e-mails but it takes time to sit down and write out a note, but it goes a long way.

Thanking employees regularly may also help them accept criticism better, as long as the feedback is specific. If you try to make your employees feel better at what they do, positive and negative feedback become a regular part of the conversation. A happy manager should be one who makes an effort to walk around the office each day looking for opportunities to praise the members of the team. A good leader is like a candle, it consumes itself to light the way for others.

While it is important to appreciate those who provide great service, it’s also important to appreciate those who provide us job security- our customers. Look for small, everyday opportunities to appreciate your frequent callers, just show them a random act of kindness. It could be something as simple as inviting them for a coffee or sending a bouquet.

Develop a culture of appreciation throughout the entire organization that can lead to success: increased performance, productivity and profitability. Not only that, but this success comes not at the cost of employee well-being but rather as a result of appreciation’s ability to increase employee happiness and well-being.

From India, Chennai
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Thank you for sharing the great read on Employee Appreciation. Appreciation and recognition are essential aspects for an organization, and they directly lead to productivity. Studies show that appreciation matters a lot as it raises the potential of employee performance. Absolutely, if you want to grow your business, then treat employees in the right way. Employees are the true assets of an organization.
From Pakistan, Karachi
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Employee performance reviews are a must-do for any organization. Performance reviews done right are one of the best opportunities to encourage and support high performers and constructively improve middle and low-performing employees. Performance reviews help in professional development and strong relationship building. With so many advantages of performance reviews, I am sure you would not want to go by the usual and regular performance reviews.

So, what are the ways to make performance reviews worthwhile? It is always better to keep performance reviews simple and straight.

1. Set proper expectations: The first thing to do is to lay out a quick agenda for the performance review and start the conversation with a positive note. After this, you can quickly discuss the things going on. Put forth the areas of growth and see what you can do to make your employees' experience at the workplace even better.

2. Ask your employees' perspective: It is your employees' review, so let them talk. This will give you a read of your employees' thoughts. Allowing your employees to do most of the talking is an added benefit as they will be the ones raising the potential areas where they are underperforming or suggesting opportunities they are excited about.

3. Keep your feedback specific: Begin the review with the employee's core area and commend the work well done. Give them specific feedback with examples of their strengths and positive behavior. Recognizing your employees' good work will make them feel that their work is noticed and valued.

4. Make your employees feel that they can do better: If you sum up your review as "You are great!" to your most talented employee, you are holding back his chance to explore areas of growth. No matter how talented your employee is, think of ways he could grow and a position he would want to hold two or five years down the line.

5. Set future expectations: To help your employee understand what's next is an important part of an employee performance review. If you think of allotting a new project, or if they are in line for a promotion or appraisal, then guide them in a way that will motivate them to take it up and do justice.

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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Hiring efficient employees and managing them wisely is an important task of an HR. When the organization is small, it is possible for an HR to take care of screening and recruiting new employees, addressing employee issues, and conveying feedback to the employees. An HR acts as a liaison between the employees and the organization. When the organization grows and the number of employees increases simultaneously, managing all the employees at a time becomes difficult, slowly reaching the impossible stage. In this case, what should an organization do to get things back in place? The best thing is to go for a performance review system.

But, how will using a performance review system benefit an HR?

Every organization has its own culture, and an HR is responsible for setting a kind of culture that suits the management and the employees. At some point, when the organization grows and segments into various departments, it becomes difficult for the HR to maintain the same culture throughout. A performance review system plays a good role at this stage. The performance review system helps an HR to build a common corporate culture. He can set goals and values according to the corporate culture using software. The performance management system, being a transparent tool, enforces the managers and the employees to quickly adjust their behaviors without a choice.

Performance appraisal is one of the key acts in an organization where an HR has a role to play. When it is a 360-degree appraisal of an employee, it is essential that he gets definite feedback from all the members he reports to and works with. A 360-degree feedback is not complete even if one member fails to comment and evaluate an employee. It is the HR who is responsible for collecting the 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 get away with 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, an HR will also be able to find gaps in the organization, set new goals and objectives, and plan training and development needs to benefit the employees and the organization.

From India, Chennai
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Nice approach. Large and reputed organisations 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 organisation.

HR has a great role in managing the performance management system with meticulous details in defining KPIs and KRAs across all verticals, and thus a good system of performance measurement can be implemented. Training and awareness of these systems to employees will also be an important aspect in implementation.

Thanks,
Bijay

From India, Vadodara
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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 providing an annual review for the employee, but is about working together with the employee to identify strengths and weaknesses in their performance. Most managers and employees dislike performance management process of their respective organization. What managers hate most about their job, is performance management because they don’t know how to do it effectively.

The Key steps in developing an effective performance management system are:

Organization’s Objective: One of the significant obstacle of performance management is the indistinctness of the organizations as well as 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 need 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, communication through regular emails, face to face meetings etc. It will help the employee to know the acceptable standard of the employers 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. A concrete feedback is the key to success under performance management process.

Frequency of appraisal: Multiple Assessment and Self Assessment: Performance management should not be once a year event there should be a continuous dialogue between 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 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. The effective performance management helps to create a motivated and committed workforce.

Development & Support: Provide development opportunities to the employees, giving them chance to do new things, learn new things, develop professionally in terms of Individual and as a team, promotion, multiple projects etc. This will statistically help organization to create a high performing team with high level of productivity, retention, motivation and satisfaction towards work.

From India, Chennai
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Hi!

I agree with the above conceptual framework on Performance Management. That's why our PMS is an integrated system with five (5) critical parts, namely: Performance Planning, Performance Review/Assessment, Performance Conference and Feedback, Improvement & Development Planning, and Recognition, Rewards, or Sanction.

But the frequency and timing of the conduct of appraisals is always dependent on two critical factors, namely: Size of the organization and the Size of the HR Department. When a company is quite big and HR is only composed of the HR Manager and a couple of junior staff, conducting more than one appraisal in a given year is nearly impossible.

Best regards,

Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
Tel:

From Philippines, Parańaque
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Employee engagement and performance are interlinked. A high level of employee engagement in an organization brings superior business performance. With employee engagement and performance, the organization can have increased profits, productivity, employee retention, and customer metrics. So, now we know that keeping employees engaged is a way to make them perform better.

But how do we get there? Organizations always assume that their employees are happy and satisfied working with them. But sometimes, they fail to notice that their employees are not well engaged, which could lead to poor performance. For organizations that keep their employees well engaged, there is always room to improve.

Let us read on some tips to improve employee engagement and performance in an organization.

Goals and expectations should be clearly communicated: It is important to let your employees know how a target actually looks like. Goals and objectives motivate employees to perform better. Therefore, information that has to be communicated should be sketched and informed clearly.

Figures of profit should be shared: The Company should keep their employees informed of what is happening. When the company is making huge profits, the employees should be updated with where their contributions are going in the big picture. When you do this, they feel a great sense of worth. Do not hesitate or fail to share the bad news; instead, be more strategic on how you deliver it.

Always have open communication: The organization should always have an open mind. Encourage your employees to express their views, opinions, and ideas and listen to them without any criticism. You never know, you might just get a brilliant idea for the project you are working on from your employees.

Immediate feedback: Immediate feedback is a solution for many problems. It saves a lot of time, gets the work done in the right way with minimum faults, and keeps the team and the management in sync. Immediate feedback shows that the employees are monitored constantly and the good work is appreciated.

Constant feedback on positives: Positive feedback motivates employees of all levels. Constant positive feedback is a good way of employee engagement and performance. This is a way to say that when people are told what they are doing well, then they will continue doing it, or even better.

Trust and sense of belonging: When employees work in a team and are headed by someone, they need to trust their team members and the leadership. Organizations should have non-work activities as well, to foster employee engagement and performance.

From India, Chennai
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Dear friends,

My post is in support of the above post. I provide consulting services to establish a comprehensive Performance Management System (PMS) in the company. To know the details of the services, you may click the following link: #post2152684.

Thanks,
Dinesh V Divekar

From India, Bangalore
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Thank you for sharing this wonderful article.

With regard to your point on open communication, the most important thing is to remain approachable as a superior. You may have hundreds of tasks, but taking the time to listen and understand what subordinates have to say is crucial.

From India, Pune
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Employee Performance Management is a holistic process of people management, where the primary objective is to establish a culture wherein individuals and groups take responsibility in meeting the organizational goals by utilizing their skill set. In simple words, employee performance management is establishing a shared understanding about what is to be achieved and how it has to be achieved.

The Employee Performance Management Process Model basically has 4 steps.

Performance Planning: Performance planning is the first step of Employee Performance Management Process where performance expectations and goals for employees channel their efforts to meet organizational objectives. Performance planning should clarify the expectations and standards for the job. It should set performance and development goals which show what the employee will strive to achieve and what knowledge/skills the employee will work to develop or enhance.

Monitoring Employee Performance: During this process, employee performance is monitored and evaluated. This is done to increase the effectiveness of the organization. Monitoring also includes day-to-day coaching and feedback, where the performance of the employee is discussed on a regular basis. Performance feedback about the employees and successes and areas that need improvement.

Regular Performance Check: The progress or the process should be checked regularly to identify successes and improvement areas in meeting the expectations and standards, achieving performance and development goals.

Formal performance review: Employee feedback is reviewed annually and the performance outcomes and development results are documented. A plan is designed for the coming year.

A good performance management process or system works towards the improvement of the overall organizational performance by managing the performances of teams and individual employees to ensure the achievement of the overall organizational ambitions and goals.

From India, Chennai
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Actually, 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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Dear Friends. please Advice me While visiting factory inspector at factory, which document we should keep ready ?
From India, Mumbai
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@ Niteshjethwa
From HR point of view I think following documents required while factory Inspector visits.
1) License of premise to work as Factory (periodical renewal if applicable)
2) Record & licenses of hazardous machinery & chemicals (Example: Chemical – Acid, Machines – Boiler, etc.)
3) Records for Health & Safety for workers
4) Muster rolls (ON-Rolls, Off-Rolls, Contract Labor), overtime, Leave records
5) Periodical return as per Factory Act, 1948
6) Accident Report Register & Copy of Intimation to the Governing Authorities

From India, Ahmedabad
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Employee turnover technically reflects the rate of employees leaving a company and new employees filling their positions. Employee turnover is detrimental for any company as it directly impacts the cost aspect. Indeed, employee turnover is expensive.

What could be the reasons for employee turnover? There is a saying that most employees leave due to their managers. If this is one of the reasons, inadequate pay could be another. Surprisingly, neither of these is the main cause of employee turnover.

Then why do employees quit their jobs?

Here are the main reasons for employee turnover:

Lack of vision: Initially, employees are more concerned about their personal interests and gains rather than the company's profit. These shortsighted employees have high expectations without realizing that progress takes time, leading them to change jobs.

Salary scale: This is a common reason for a high employee turnover rate. Employees are undoubtedly seeking jobs that offer competitive pay. When employees feel they are underpaid, they tend to seek opportunities with better compensation.

Work environment: The work environment is also a significant factor contributing to employee turnover. Every employee desires to work in an environment where they feel comfortable. This is a key reason why employees may switch companies within a short period.

Lack of motivation: Employees who leave due to a lack of motivation are not seeking recognition but rather want to understand if their work contributes to the company's growth.

Growth policies: This is a primary reason employees leave their jobs. Employees are always looking for opportunities for advancement and promotions.

Lack of employee engagement: Employee engagement is a crucial motivator. Employees appreciate being involved in the company's successes and challenges, so it's important to keep them informed about all the developments within the organization.

From India, Chennai
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Turnover can be divided into two categories:

Employees above 40 - Cat A

Employees below 40 - Cat B

Cat A turnover is influenced by:

1st Job Stability/Security

2nd Job Profile

3rd Pay Structure

Cat B turnover is influenced by:

1st Pay Structure

2nd Job Profile

3rd Job Security

Regards

From India, Delhi
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Organizations have traditionally been conducting performance appraisals or performance reviews for their employees once in a year (or more). A performance appraisal program is important to employees’ professional development, and to contribute 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.

Common outcomes of an effective performance appraisal process are employees’ learning about themselves, employees’ knowledge about how they are doing, employees’ learning about ‘what management values’ (Beer, 1981). According to Stephan and Dorfman (1989) outcomes of effective performance appraisal are improvement in the accuracy of employee performance and establishing relationship between performance on tasks and a clear potential for reward. Dobbins, Cardy and Platz-Vieno (1990) told five outcomes i.e. use of evaluations asfeedback to improve performance, reduced employee turnover, increased motivation, existence of feelings of equity among employees, linkage between performance and rewards.

Benefits that could be 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 the performance appraisal is to ensure that employees perform well to achieve the organizations’ 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.

The following outcomes would enable an organization to benefit from the overall performance management exercise:

The rating distribution – this will help the management to reward good performers and recognize their efforts, whereas it serves as a warning to poor performers to improve their performance.

The final rating for employees is an outcome of the performance appraisal. This can help to detail out the compensation of the employees.

An employee’s competency gaps can be identified and areas of improvement in the performance can be suggested. Managers can take the necessary steps to help the employees improve on those areas. This will lead to growth of employees as well as organizational growth.

Identification of high potential employees. This can help in succession planning of an organization. High potential employees can be nurtured and can tuned towards leadership path.

The necessary training requirements of employees can be an outcome of the performance appraisals. This can be a very valuable input to the training department, who can plan their training calendar based on that.

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 theirsuccess.

To summarize, outcome 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 which will help organizations to find out their star employees and high potential employees is one feature that we would like to mention here. Organizations can concentrate on them and nurture them as leaders.

From India, Chennai
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I hope the purpose of the PMS is for the parameters cited by you, and every disciplined organization is following the right procedure in evaluating the skill sets and the performance of the employees in the right perspective.

What is your query?

Pon

From India, Lucknow
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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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KPIs are for OUTPUT. When you set the KPIs against KRAs, it is a tool to measure the output of the employee. According to outputs, the award, increment, and promotion are considered. Those who lack in output are warned and given an opportunity to improve performance.

Pon

From India, Lucknow
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Changes in technology, the economy, trends, and the business environment have resulted in operational change in the organization. The management is forced to implement the changes whether they like it or not. When we consider organizational change, it is often necessary to adapt a few positive changes to keep pace with the developments in the market and the constantly evolving world.

So how do we define organizational change? When an organization re-evaluates its method of operations in order to cater to the changing demands of the market and to survive the competition, it is known as organizational change.

Unfortunately, not all employees express a positive response to change in the organization. Employee resistance to organizational change is a natural behavior as it requires new ways of thinking and doing work. Organizational change tends to bring a sense of uncertainty and fear of not knowing how life will look like after the change is implemented. Given that we live in an evolving world, one would think that the employees will be aware of it and soon get accustomed to the change in the organization. But the truth is quite the opposite.

The following 10 reasons best describe why employees resist change in the organization:

1. Mindset: The majority of the employees who view their work and workplace only as a source of income would want to have a simplified job format. When the organizations implement changes in operations, what immediately comes to the employees' minds is, "will the change simplify/complicate their work?"

2. Change of routine: When employees are habituated to following a routine, they would not like any changes as it might ask them to step out of their comfort zone.

3. Lack of knowledge/expertise: Employees may resist change simply because they lack sufficient knowledge about the change taking place in the organization or lack expertise. Not knowing much about the specifics of the change, they imagine it to be difficult to deal with and therefore, they resist giving the change a chance.

4. Workload: A change in the organization would initially be hard for employees as it would take time for them to understand. Consequently, the processing of the change makes them feel overloaded with work, which is why they resist change.

5. Unwilling to learn: Some employees feel that their work does not need any advancement and therefore are unwilling to learn something new and are hesitant to change.

6. No change in compensation: Compensation is one of the main factors that make employees perform better. If they feel that the change in operations would not make any good difference on their pay-slip, then they abide the change in the organization.

7. Fear: Fear could be of not knowing much about the imposed change, losing their position, and if the change will bring improvement or not. At the hand of fear, they fail to realize that the change is needed for the organization to stay competitive. Thus, they resist change as they are satisfied with the present workflow.

8. Peer Pressure: Some employees blindly follow their colleagues/teammates without even knowing if the change would affect them or not.

9. Loss of freedom: Employees accustomed to a certain level of personal freedom at the workplace would not want to let go of that.

10. Past experience: A few bad experiences from their ex-organization would spring into action when there is a change in the organization, and apparently they resist it.

Dealing with employee resistance to organizational change is tricky and challenging as employee behavior cannot be anticipated. But once the initiated change gets rooted, employee resistance to organizational change fades.

Let us take a look at the top 5 ways to handle employee resistance:

1. Plan the change: Have a clear change plan in hand even before introducing it to the employees. Take the help of a core team to design and implement the change. Predict the employee behavior and natural resistance that might occur. Have a well-set strategy ready to confront it.

2. Take one step at a time: The organizational change could be huge, but never announce it as it is to the employees. Big announcements of change alert the employees to resist. Therefore, it has to be opened quietly one after the other. This allows the employees to accept the change without resisting it.

3. Let your plan come out as the employees' idea: When you know what changes are to be introduced, hold a meeting. Well, the meeting will not be to project the changes but to discuss the scenario. Put forth the current state of the organization before the employees. Give them cues that will lead them to suggest ideas that exactly match your already planned changes. This is an easy way; however, this strategy is unlikely to work always.

4. Tap on the right switch: Employees would never resist without a reason, and the reasons could be plenty. Therefore, stabilize your relationship with these employees by listening to them with endurance. Know the exact reason for their resistance and tackle it respectively. If this includes any kind of assurances, then make sure you keep up your words.

5. Pick the hard way: If you think that your employees would never allow you to take charge of the changes required by the organization, then the last option would be to take the hard curve. Have the changes introduced in terms of laws and regulations so that the employees have no option to resist but to accept it.

From India, Chennai
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First step in implementing a performance management process in any organization is defining the process and implementing the process. Needless to say, most of the organizations will either adopt paper based forms where people fill in the forms and submit the printed ones (or) use Excel, fill it and send it to the HR / manager. It is definitely a right way to get started. You get to know the feedback on the forms design / what to capture / what not to capture / employee’s reaction to the form itself / whether you need one form for entire company (or) multiple feedback forms based on the level / etc.

However, following are the challenges as the organization grows:

1. Paper based form/Excel form eats more time for HR, Manager and the employee.

From the HR end, the distribution of forms to all the employees requires much effort. Especially in case of multiple forms for the different level/different designation employees, it takes much time for the distribution itself.

On the other hand, employees may not express their original feedback as they find it difficult or time consuming process to fill the form / excel.

The HR need to collect all the data. They should follow up with each employee to ensure that everyone has filled the necessary fields of the forms and submitted the same. This process requires more number of resources and lot of time.

2. Aggregation of data from paper based form/Excel.

Aggregation of data takes lot of time. Collecting all data and preparing reports from them will leave the HR in trouble. HR needs to spend a lot of time and needs to be much careful while integrating feedbacks from multiple employees.

If an organization wants the feedbacks submitted by the employees to be reviewed /approved by their managers, here comes the inconvenience for managers.

Maintaining all the forms throughout the appraisal process, getting the approval of corresponding managers, returning the forms to the employees when the feedback is rejected and recollecting the forms from the employees. This sequence requires many resources and also may lead to the extension of the appraisal period.

3. Confidentiality.

The performance management process should encourage the employees to strive for excellence by conveying their thoughts. But in this case, the employees may get a feel like their feedback may not be kept much confidential as there is a possibility of the paper forms to be read by others.

4. Possibility for human mistakes.

As there is no system involved, all the efforts are from human. This leads to the thought of error rate probability.

The level based forms might have got distributed wrongly. The HR might have missed to collect the form from few employees. There are chances for the collected hard copies to be missed.

Use of effective performance management systems will reduce the likelihood of errors occurring.

5. No history maintenance.

When an organization implements the appraisal process using paper forms/Excel forms, the history of employee performance level from each quarter/year will not be maintained. It is very hard to refer the previous year ratings of the employees.

The history will help both employees and higher level authorities to fill the forms and to take the decisions on the employee appraisal.

The consistency of the employees will be mostly figured by the history, as the possibility of change in employee hierarchy is high in the organizations based on the business needs.

6. Increased workload.

This excel or hard copy process will work for a company with maximum of 25-30 people. But as the company grows, once it hits 100 people count, workload increases massively. It is impossible to rely on such excel/paper based stuff. On an average, if you use Excel based forms, HR spends atleast 60% of their effort in administering, collating the data.

Defeating the above drawbacks brings in the introduction of effective online performance management software such as Synergita. Using a good performance management software reduces the number of resources needed to administer the process and increases the productivity. This saves tons of time of both HR and employees. The software will have the provision of defining the workflows which eases the process of submission and approval. We will have an easier way to track the employees who are stuck in a particular step so that they can be notified about the dead line for the same or go and help them solve their challenges in providing feedback or whatever help they need.



This makes the whole process much easy & pleasing. History can be maintained for all the years which can be referred at any point of time. The appraisal process can be completed on time which will increase the reliability. Data can be kept more confidential and safe. There are several advantages of having an online performance management software such as Synergita.

From India, Chennai
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Hi!

I agree with the insights you discussed above on the negative side of such a PMS. As I have always stated in this forum, the choice of PMS, the frequency of its administration, and processing depend on many factors.

Indeed, PMS is a time-consuming process if the tool has not been designed well, simplified, and pre-tested (or actually used successfully). The problem with some canned PMS software is that you can be perpetually tied up with its vendor!

I suggest you try our very simple one-page PMS tool. All the horrors you mentioned do not exist in our PMS environment.

Best regards,

Ed Llarena, Jr. Managing Partner Emilla International Consulting Services Manila, Philippines Tel: 006352-742-0315 Email: <emillaconsulting@hotmail.com>

From Philippines, Parańaque
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4 steps on how 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, as they can perform better. Having an effective performance management program increases the productivity of the company; helps identify top performers and motivate them to work harder. Having a perfect Performance Management program can also ensure their objectives and goals coordinate with hiring and employee development plan.

Performance management is an ongoing event, and not just an annual task. Therefore, the companies need to realize this to reap the benefits of 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 that 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 is included in the competencies. Initiate the first step of performance management program as soon as the employee is hired, and re-visit 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 as to how often the managers will deliver performance reviews to their team/employees. Annual performance review is mostly practiced annually, but continuous or frequent reviews would give the managers an opportunity to address the employees' negative behavior or oversight before it affects their productivity. Well, frequent reviews is time consuming and difficult for the managers and the HR's which is why they agree to supplement the usual performance reviews with the 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 KPI's.



Note: Managers need to be honest at the time of employee assessment. If employees are performing well, then they deserve to hear that. And if they are doing a bad job, then 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, the employees should also be given a chance to acknowledge to the feedback he receives. The data generated at the time of performance review should be incorporated into the human resource planning. The HR should consider it while revising the employee compensation, in setting up employee training programs, while defining long term succession plans and to identify candidates who deserve a fast track career growth.



By following these steps, the organization can not only have an effective performance management program, but they can also have an opportunity to improve their business.

What is the role of performance management software in an organization?

The above mentioned task is not at all easy for HRs. It’s tough to evaluate the performance of all the employees on the manual basis. HR is also a human being and hence creates mistakes as it is almost impossible to remember the yearly data. So here is the solution to the problem of HRs. A Performance Management Software can troubleshoot all such problems in an organization. It plays a very important role in evaluating and giving exact result which also satisfies the employee.

Like finance, human resource, sales and marketing, supply chain management and other departments and systems, performance management system has a key role to play in improving the overall value of an organization. Having a performance management software might sound expensive or like a huge investment, but they are not so. 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 the employees get a clear picture of what is expected of them to reach the organizational goals and objectives. Performance management software also ensures that the employees understand their 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 the team members, peers and managers. It also helps pass on the 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.

Well, 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?

From India, Chennai
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Hi Elan,

This is an excellent article! Performance management is a hard and complex process that requires absolute attention. Effective performance management is helpful for both employees and organizations. Every business needs productivity, which can be achieved through an effective management system.

Thank you for sharing the information.

From Pakistan, Karachi
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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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Dear friends,

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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Need for Continuous feedback:

If we look at successful organizations, we can easily see that they comprise of capable people who perform well to achieve the organization goals.

Organizations realize the importance of good performance by the 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. But current day performance management focusses on continuous coaching and development of employees and giving continuous or regular feedback on their performance.

Continuous feedback is feedback that is given by managers to employees, on their performance, on a regular manner instead of waiting till the year end. Continuous feedback will make sure that employees are well appreciated on their good performance, as well as corrective path is initiated much earlier, in case if there are performance slips.

Benefits of continuous feedback:

1. Eliminates problem of recency: One of the main complaints in a yearly performance appraisal is that the 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 that 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 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 allows managers to understand problem areas, and take corrective path 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 a 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 a 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 also much easier, as employees would have already been communicated on their performance through-out 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 in a continuous fashion?

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.

From India, Chennai
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Ryan
90

Giving feedback continuously? possible. Receiving and acting on feedback continuously - not practical. Regards,
From India, Mumbai
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At the time of performance review of an employee, feedback has to be given and that is not always positive. The feedback has to be honest, even when the employees are reluctant to hear what you have to say. So, 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 point 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 straight.

• Avoid surprises: This is a must! Provide immediate feedback if you see any issue coming up. Address the issue immediately with the employee and do not wait until things turn out to be real bad for both of you.

• Prepare your performance review in writing: Have proofs before you decide your reviews. Write down your thoughts and evaluate to avoid confusions and disputes.

• Verify before you decide: If employee performance is obtained from a third party, then 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 on loss of trust.

• Keep performance review professional: Talk only about the employees’ 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 employees 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 review should be done to both, 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 employees explanation if you do not intend to change the conclusion.

• Be a guide: Give your employees some useful tips to help them improve on the areas of growth and the workplace. Feedback followed by some tips would do well for your employees.

From India, Chennai
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Those interested in Change Management, please go to Change Management Learning Center - Prosci. You will find good material as well as free webinars.
From United Kingdom
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Adrenalin performance management system helps optimise your process needs to ensure smoother, faster processes. It aligns the workforce to the organisation’s goals and objectives, thus empowering employees to be responsive to business opportunities and deliveries. Employee Performance Management Software, Employee Management System - Adrenalin
From India, Delhi
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It is important for organizations to implement performance management software/system. Most organizations do use some form of performance appraisal system in their workplace. They use performance appraisal system as a communication tool that bridges the barrier between employees, top level and the management. It is also an integral part of the compensation system. However, a lot of times, appraisal related processes are poorly designed and implemented which is why organizations feel that performance appraisals are not done effectively.

A few signs that performance appraisal system isn't working are described below.

• All employees evaluated on same factors: Evaluating employees of all levels and from different departments on same factors or competencies is not correct. For e.g. 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 the employees and the appraiser.

• Inconsistent evaluation among appraisers: The system should prompt the appraiser to give consistent comments and numbers to the individual employees.

• All the employees are rated on an average scale: When all the employees are rated to be average or below average, low performers will never make an attempt to improve and very high performing employees will be demotivated.

• Appraisals are not complete in time: Top levels are always occupied with number of other things that participating in appraisals might just slip out their mind. 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 employees input: Self-evaluation also holds great value during performance appraisal. If a system does not have a slot for employees input, the process is again incomplete.

• System lacks customization: If the system isn't tailored to an individual employee's position, strengths, weaknesses or career path are not particularly useful.

• Lacks confidentiality: If the system is not programmed to be confidential, the employees will begin to compare themselves to what others do and receive. This creates low morale among the employees and conflicts.

If you come across anyone these signs in your appraisal system, decide to consider 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 his employees, no matter how perfect it is on paper.

B. Saikumar
HR & IR Advisor

From India, Mumbai
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Here is the REAL TIME

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Bugscore 360 is a web-based software that allows your company's employees to score/rate each other in real-time. These scores are given on a range of attributes that are tailored by you, to your company's values and KPIs.

Our Solution will empower you with the following features

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 Self-Assessment >> Know your strengths and weakness

 Invite-based Scoring & Stats >> Create your own survey

 Reports /Big data analytics >> Quick decision making

Kind request to kindly have a quick look on corporate video : https://www.youtube.com/watch?v=ySoRRoqq7dU

In details about our software https://www.youtube.com/watch?v=CsirS8FLmsM

Thanks & Regards

Deepak Raj | Managing Director – Business Development

M: +91 9972552800

E:

Bugscore India Pvt. Ltd.

Umiya Business Bay Tower 1,

Level 8, Cessna Business Park,

Marathahalli ORR, Bangalore-560103.

Karnataka –India.

P: +91 80 6757 7722

F: +91 80 7657 7898

w:Bugscore 360

From India, Namakkal
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IN REAM TIME here is the Unique tool

Our Solution will empower you with the following features

 360 degree Employee Scoring Portal >> Real time.

 Skill Assessment >> KPI’s tailored to your company

 Measure employee performance >> Overall Rating

 Identify training needs >> Need analysis

 Early Problem identifier >> Real Time Alert System

 Identify strength and weakness >> Compare your Resource

 Self-Assessment >> Know your strengths and weakness

 Invite-based Scoring & Stats >> Create your own survey

 Reports /Big data analytics >> Quick decision making

Kind request to kindly have a quick look on corporate video : https://www.youtube.com/watch?v=ySoRRoqq7dU

In details about our software https://www.youtube.com/watch?v=CsirS8FLmsM

Thanks & Regards

Deepak Raj | Managing Director – Business Development

M: +91 9972552800

E:

Bugscore India Pvt. Ltd.

Umiya Business Bay Tower 1,

Level 8, Cessna Business Park,

Marathahalli ORR, Bangalore-560103.

Karnataka –India.

P: +91 80 6757 7722

F: +91 80 7657 7898

w:Bugscore 360

From India, Namakkal
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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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Dear Elan Synergita,

The opening statement of your post is "Employee engagement and performance are inter-linked." In support of your statement, you could have given a case example. Either you could have quoted a study result of your own or a study result from someone else. Your entire post lacks specifics. How employee engagement was measured and the increase in employee engagement, and how it resulted in increased productivity/performance should have been included. Without this information, your post remains hypothetical.

In the Indian context, in many companies, people work solely for money. They are not engaged; they work only because they receive a hefty salary. This factor is not mentioned in your post.

Thanks,

Dinesh V Divekar

"Beware of false knowledge; it is more dangerous than ignorance."

From India, Bangalore
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The Employee Performance is depends not only engagement it also depends on Employee Training. Training is not giving the product knowledge and soft skills, it help us motivate the employees.
From India, Hyderabad
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Organizations would like to conduct their performance appraisals in an objective manner. But, a certain bit of subjectivity and bias do seem unavoidable when the manager rates employees on their performance. One main factor for subjectivity in rating is due to difficulty in setting-up number driven goals for all employees and tracking and measuring the same.

The most common rating errors in a performance appraisal are mentioned below:

1) Halo effect: When an employee performs well in a few areas of his work, then the general tendency of a manager is to rate him well even in un-related areas where his performance was mediocre. This is called a “Halo” effect. The opposite of Halo effect is called “Horns” effect in which a manager rates an employee poorly, when he spots a few areas where he has been not performing well. In other words, in this type or rating error, the overall rating of an employee gets influenced by good or bad performance in a few areas of his/her work.

2) Recency: Another common error in rating is the problem of recency. Though performance appraisals are done to rate an employee’s performance through-out a year (or 6 month period etc.), managers tend to remember only the past few months performance, and rate the employee’s performance based on that. So any performance highs or performance lows of an employee in the last few months, significantly influences the rating.

3) Central tendency: Central tendency is again a very common rating error. Sometimes, managers with the intention of avoiding conflict, play it safe, by rating employees in the middle of the rating scale. So it might be a “met expectation” for all performance parameters, irrespective of whether in reality they have not met it or not.

4) Leniency / Severity: Sometimes, managers tend to rate employees leniently or severely. This may be due to factors like:

Whether manager’s like an employee or not. Personal bias or preferences creep in the rating. Their general style is either lenient or strict.

They compare employee’s performance with their personal standards (instead of standards expected from the role). This is also called as “Frame of reference” error. Sometimes when employees are similar to the manager, it influences the manager’s rating which will then be lenient.

So in this case the rating is either positively or negatively skewed.

5) Contrast effect: This occurs when managers rate an employee by comparing him with other employees. So, instead of giving rating based on the standards required for the job, managers rate a person by comparing with other employees performance. In such cases, a person may be given higher ratings just because he is better than others, but he may still lag behind when compared to the standards expected.

6) Stereotyping: Stereotyping occurs when managers generalize about 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 generalize or stereotype saying that all young employees do not take ownership of their work, or that freshers hired from a particular university have great technical skills and so on. But actually, it is important that managers should consider individual differences

HR team can educate managers about these common rating errors, and ask them to be beware of them, when they do the performance rating. Managers, who are well aware about the performance rating issues, will tend to approach it more objectively and ensure that bias does not creep in their rating.

From India, Chennai
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Dear Elan Synergita,

All the problems mentioned can be eliminated if there is a sound Performance Management System (PMS). However, PMS is not just software that you use; PMS is not just the HR department's responsibility to design the KRAs for all. PMS is far wider and more comprehensive.

I provide consulting services on PMS. As part of the consulting, I design policies on PMS for the client. In the policy, I have mentioned that it is the juniors' responsibility to provide evidence of the attainment of the measures. Evidence can be in the form of soft or hard copy. Without evidence, various biases creep in.

To institute a sound PMS, it demands training all the staff on how to implement policies on PMS. This is where many companies fail, and what they get is a distorted PMS.

Thanks,

Dinesh Divekar

From India, Bangalore
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In a survey that was conducted by Deloitte, more than half 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 are subjective, filling up forms and meetings to agree to the ratings are time consuming, and the end results are not what is intended. It basically ends up assessing the past performance, instead of being agile and driving better performance.

Companies are trying out newer performance management practices, to engage their employees and to inculcate a high performance culture. This is a good and a much needed change.

In this Webinar, we will look at the most important modern performance management practice of continuous interaction between manager and employee to set expectations, coach and guide. Basically the focus is on agile.

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 of the organizations are adapting these.

Webinar will be held on 19th August 2015, 11:30am - 12:30pm IST

Register Here: https://attendee.gotowebinar.com/reg...16989268336898

From India, Chennai
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In a survey that was conducted by Deloitte, more than half 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 are subjective, filling up forms are time consuming, performance review meetings are challenging and the end results are not what is intended. It basically ends up assessing the 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 about 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, it's benefits and how some of the 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

From India, Chennai
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In a survey that was conducted by Deloitte, more than half 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 are subjective, filling up forms are time consuming, performance review meetings are challenging and the end results are not what is intended. It basically ends up assessing the 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 about 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, it's benefits and how some of the 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/register/8629406329158564353

From India, Chennai
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Almost every second Organization is running behind changing their full performance management system, they want to give the employees clear view of their performance and results. They are abolishing Bell Curve and Forced Fit Ranking system, which is considered as one of the major Demon in the work culture. Companies are aware of this Demon now and gratefully are now working in positive direction to abolish this system.

But the matter of fact here is are the employees really benefiting from this change? Are they really seeing the Ray of Hope?

 For most of the employees will say "NO", and it is true to some level, because this system has been embedded so deeply in the nerves of the organizations that it will easily take 10-15 years to overcome from this process. As we all know overcoming from some system and adopting a totally new system itself takes considerable amount of time.

Organizations will have to work in a new environment, have to follow the concept of continuous feedback, regular check-ins, periodic reviews, one-to-one meetings, etc. Companies will have to switch to automation process as traditional manual methods will no more work in this concept. 

Employees have lots of faith with the new system and we just hope their faith dwells forever in the new trends. May companies do justice in all the way possible.

For more info visit: www.synergita.com

From India, Chennai
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We are bringing a Free Webinar on "Energizing Employee Performance Management: How two companies are disrupting the status quo and shifting from dread to cred!"

Date: Thursday, 15th September 2016
Time: 03:00 PM CST
Duration: 1 hour
Learn from two different companies (SAVO and Equity Residential) why they are making a change from the traditional performance management, what they have learned along the way, how they championed the necessary changes, and how the process is going so far.

SAVO is a mid-sized, growth phase, cloud-based software firm in Chicago with 150 employees, and Equity Residential is a publicly traded real estate investment trust based in Chicago, Illinois.

Key Takeaways:
Answers to the following questions
1. Why is the status quo not working? Need to disrupt the process and try something new.
2. What are the expected roadblocks?
3. How did we get buy-in?
4. How does compensation work? How is it fair?
5. How is it perceived by Employees? By Managers? By the Business?

Our Presenters:
Tracy McCarthy, SHRM SCP, SPHR, GPHR
EVP, Human Resources for SAVO Group

Christa Sorenson
EVP, Human Resources for Equity Residential

Register here soon: https://attendee.gotowebinar.com/register/2085350622292009988

From India, Chennai
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Synergita is participating in World’s Largest Expo HR Technology Conference & Exposition in Chicago this year! Test drive Synergita @ link: http://marketing.synergita.com/HRTECHSYNERGITATESTDRIVE with the special code HRT007 and stand a chance to win an Employee Engagement Survey completely free for your entire organization!
Register soon only 3 days left!!!

From India, Chennai
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There are ideally different ways to interpret our concept of peopleMAGIC™. We were looking for historical events, theories, great sayings, etc. to relate it to our peopleMAGIC™ theory, it was then we landed at Buddha’s 8 rights. Do you wonder what Synergita’s peopleMAGIC™ is? This simple blog outlines how Synergita brings Buddha’s 8 rights into an organization and creates peopleMAGIC™.

1. RIGHT KNOWLEDGE (or VIEW)

Vision of the nature of reality and the path of transformation

How Synergita can bring it into an organization?

So far you would have had unclear, uncertain performance reviews, appraisal cycles, etc. With Synergita, performance management itself becomes completely transparent, real-time void of errors or uncertainties.



2. RIGHT RESOLVE

Liberating emotional intelligence in your life and acting from love and compassion. An informed heart and feeling mind that is free to practice letting go

How Synergita can bring it into an organization?

Employees are not machines but human beings. Synergita helps organizations to treat employees just right. Feedback mechanism, employee engagement and motivation activities, rewards system in Synergita make employees feel they are cared.

3. RIGHT SPEECH

Clear, truthful, uplifting and non-harmful communication

How Synergita can bring it into an organization?

Synergita helps you make effective manager-employee, peer-to-peer communication that resolves work place concerns and issues. Communication can be giving feedback, sending appreciation notes, suggestions on areas of improvements, etc. A job well done, when praised makes an employee feel uplifted. Synergita makes it constructive at the same time problem addressing and solving.

4. RIGHT CONDUCT (or ACTION)

An ethical foundation for life based on the principle of non-exploitation of oneself and others

How Synergita can bring it into an organization?

Synergita helps employees to unleash their real potential. Their talents will never go latent. Synergita will help you identify every individual’s skills & competencies. With such details, employees cannot exploit one another. With Synergita, every employee’s performances are captured and the best are rewarded.

5. RIGHT LIVELIHOOD

This is a livelihood based on correct action the ethical principal of non-exploitation. The basis of an Ideal society

How Synergita can bring it into an organization?

Employees are looking for a non-exploiting work environment that is motivating and at the same time uplifting. Synergita brings about a peaceful work environment for employees with opportunities for professional growth and self-growth.

6. RIGHT EFFORT

Consciously directing our life energy to the transformative path of creative and healing action that fosters wholeness. Conscious evolution

How Synergita can bring it into an organization?

Evolution has been happening ever since mankind evolved or even before. There is also evolution taking place among employees (ie) different types of employees. Today’s organizations are coupled with multi-generational employee base. There is no more “one size fits all” concept. Synergita fosters wholeness being compatible with both organization and the employees.

7. RIGHT MINDFULNESS

Developing awareness. Levels of Awareness and mindfulness – of things, oneself, feelings, thought, people and reality

How Synergita can bring it into an organization?

Synergita elevates organization’s performances by making the leadership team aware of what is happening within the organization. Synergita brings about real occurrences within each team and reveals accurate performance results of every employee.

8. RIGHT CONCENTRATION (or MEDITATION)

Literally means to be fixed, absorbed in or established at one point

How Synergita can bring it into an organization?

Synergita helps employees to focus on their career and make progress throughout their professional journey. Synergita enables employees to add a completely whole new set of skills and expertise to their already existing skills list and help them to develop into future leaders.

From India, Chennai
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