I would like to know the process of appraisal in the company. Till now, we have an appraisal form in which employee himself /herself and their manager give ratings to employee based on their performance during the entire year. But now, our management has decided to change this method of appraisal. Can somebody please suggest me the other effective way for this?
From India, Noida
1From India, Noida
Dear Shruti Arora,
From the Performance Appraisal (PA) you need to scale up to Performance Management System (PMS).
Earlier, I have given a detailed reply on PMS. You may click the following link to refer to it:
https://www.citehr.com/showpost.php?p=2306729&postcount=2
By the way, instituting PMS in the organisation strong support from the Managing Director (MD). It cannot be instituted at the HR level. Do you have buy-in from him/her?
Thanks,
Dinesh Divekar
From India, Bangalore
From the Performance Appraisal (PA) you need to scale up to Performance Management System (PMS).
Earlier, I have given a detailed reply on PMS. You may click the following link to refer to it:
https://www.citehr.com/showpost.php?p=2306729&postcount=2
By the way, instituting PMS in the organisation strong support from the Managing Director (MD). It cannot be instituted at the HR level. Do you have buy-in from him/her?
Thanks,
Dinesh Divekar
From India, Bangalore
Hi Shruti-arora
I suggest you to ask your management for information about the organization's goals for that specific year or the organization's mission for that particular year.
Create an OKR for your company or organization at the quarterly level.
Divide the Organization OKR into Team level OKR after that.
Then divide the team-level OKR into individual-level OKRs once again.
You can now map out what that specific employee has contributed or done for each quarter in percentage or number based on his/her job nature. If the employee has achieved a particular proportion, you can classify them as High, Medium, or Low, depending on what your organization prefers, and connect them to PayScale.
But make sure that each OKR can be quantified (in percentages or figures). so that it will be simple to gauge the contribution of the specific individual.
This is just an idea, you can customize this based on your industry type, Business and number of employees.
From India, Madurai
I suggest you to ask your management for information about the organization's goals for that specific year or the organization's mission for that particular year.
Create an OKR for your company or organization at the quarterly level.
Divide the Organization OKR into Team level OKR after that.
Then divide the team-level OKR into individual-level OKRs once again.
You can now map out what that specific employee has contributed or done for each quarter in percentage or number based on his/her job nature. If the employee has achieved a particular proportion, you can classify them as High, Medium, or Low, depending on what your organization prefers, and connect them to PayScale.
But make sure that each OKR can be quantified (in percentages or figures). so that it will be simple to gauge the contribution of the specific individual.
This is just an idea, you can customize this based on your industry type, Business and number of employees.
From India, Madurai
it should be two way process , any one way cannot justify it , employee and reporting manager has to come to agree and than only appraisal can be finalised .
From India, Vadodara
From India, Vadodara
Dear Gowtham,
You have written about the creation of the OKRs for the organisation, then the department and lastly for the individual. For the benefit of the members who do not know much about OKRs, let me apprise them about the concept. Objectives and key results (OKR, alternatively OKRs) is a goal-setting framework used by individuals, teams, and organizations to define measurable goals and track their outcomes. The development of OKR is generally attributed to Andrew Grove who introduced the approach to Intel in the 1970s.
While reading these concepts may give a sense of pleasure, it may be noted that the creation of OKRs, at any level is not a child's play. Creating OKRs for the various levels is an organisation-wide intervention. It requires an in-depth understanding of how the organisation works, the technical complexities of the operations, systems and processes of each department etc.
Whatever the nomenclature of the intervention may be, the important thing is to measure the costs and ratios associated with the business. This is a far tougher task and those who have decades of experience in a particular industry also cannot do it.
Devising the OKRs for the organisation would require designing the OKRs for the Managing Director (MD) as well. How many MDs will be ready to accept their OKRs from the HR professional? Therefore, while recommending the introduction of the new concept, we must take into account the ground reality also.
Thanks,
Dinesh Divekar
From India, Bangalore
You have written about the creation of the OKRs for the organisation, then the department and lastly for the individual. For the benefit of the members who do not know much about OKRs, let me apprise them about the concept. Objectives and key results (OKR, alternatively OKRs) is a goal-setting framework used by individuals, teams, and organizations to define measurable goals and track their outcomes. The development of OKR is generally attributed to Andrew Grove who introduced the approach to Intel in the 1970s.
While reading these concepts may give a sense of pleasure, it may be noted that the creation of OKRs, at any level is not a child's play. Creating OKRs for the various levels is an organisation-wide intervention. It requires an in-depth understanding of how the organisation works, the technical complexities of the operations, systems and processes of each department etc.
Whatever the nomenclature of the intervention may be, the important thing is to measure the costs and ratios associated with the business. This is a far tougher task and those who have decades of experience in a particular industry also cannot do it.
Devising the OKRs for the organisation would require designing the OKRs for the Managing Director (MD) as well. How many MDs will be ready to accept their OKRs from the HR professional? Therefore, while recommending the introduction of the new concept, we must take into account the ground reality also.
Thanks,
Dinesh Divekar
From India, Bangalore
Can you please elaborate how should I start following Performance management system in walkie talkie manufacturing company? Thanks & Regards,
From India, Noida
From India, Noida
Dear Shruti Arora,
If you wish to implement PMS in your company, then you need to first find out whether your MD understands what is PMS. Any kind of misunderstanding will have a fallback on the implementation. Secondly, he/she needs to accept the KRAs for him/her also. At the top of the hierarchical pyramid lies the position of MD. Therefore, the process of fixing KRAs should start from his/her level. If he/she thinks that KRAs are only for the juniors, then it is greatly a mistaken view.
In a nutshell, please obtain buy-in from the MD on the implementation of PMS. Otherwise, mark my words, the exercise could become wasteful. If you wish to know the immensity of the process of PMS, then call me and I shall explain in detail.
For Astha Agarwal: - You have written, "employee and reporting manager has to come to an agreement and then only appraisal can be finalised". But then what if there is a disagreement between the two? For the sake of agreement, Performance Appraisal (PA) cannot be contrived. The forced agreement will put both, the Manager and the subordinate on an equal footing. In that case, what authority managers will have? The decision taken by the Manager should be final and binding on the subordinate. However, disputes do occur between the two. To avoid this, the marks should be awarded based on the evidence. If there is incontrovertible evidence of the performance, then the perception will not have any role to play. Neither the Manager nor the subordinate can tamper with the score.
However, creating an evidence-based marking system requires a lot of expertise. It requires a tremendous amount of power of anticipation to foreclose the possibility of favouritism, disputes or even conflict(s).
Thanks,
Dinesh Divekar
From India, Bangalore
If you wish to implement PMS in your company, then you need to first find out whether your MD understands what is PMS. Any kind of misunderstanding will have a fallback on the implementation. Secondly, he/she needs to accept the KRAs for him/her also. At the top of the hierarchical pyramid lies the position of MD. Therefore, the process of fixing KRAs should start from his/her level. If he/she thinks that KRAs are only for the juniors, then it is greatly a mistaken view.
In a nutshell, please obtain buy-in from the MD on the implementation of PMS. Otherwise, mark my words, the exercise could become wasteful. If you wish to know the immensity of the process of PMS, then call me and I shall explain in detail.
For Astha Agarwal: - You have written, "employee and reporting manager has to come to an agreement and then only appraisal can be finalised". But then what if there is a disagreement between the two? For the sake of agreement, Performance Appraisal (PA) cannot be contrived. The forced agreement will put both, the Manager and the subordinate on an equal footing. In that case, what authority managers will have? The decision taken by the Manager should be final and binding on the subordinate. However, disputes do occur between the two. To avoid this, the marks should be awarded based on the evidence. If there is incontrovertible evidence of the performance, then the perception will not have any role to play. Neither the Manager nor the subordinate can tamper with the score.
However, creating an evidence-based marking system requires a lot of expertise. It requires a tremendous amount of power of anticipation to foreclose the possibility of favouritism, disputes or even conflict(s).
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Dinesh Divekar,
Thanks for the detailed explanation. I agree with your points. Surely implementing an OKR system cannot be done in a day or two. we have to do some homework.
I have a doubt here sir. whether individual OKRs can be quantified or defined in a measurable way to fulfill organizational goals? If they are measurable why they cannot be connected or linked to their performance? Need your advice on this
Regards
Gowtham
From India, Madurai
Thanks for the detailed explanation. I agree with your points. Surely implementing an OKR system cannot be done in a day or two. we have to do some homework.
I have a doubt here sir. whether individual OKRs can be quantified or defined in a measurable way to fulfill organizational goals? If they are measurable why they cannot be connected or linked to their performance? Need your advice on this
Regards
Gowtham
From India, Madurai
Dear Gowtham,
You may click the following link to refer to the OKRs of the Operations Team:
https://quantive.com/resources/articles/operations-okrs
In the above result, key results are given. These can be assigned to the individual.
Final Comments: - When you OKRs to the individual, to the team or even organisation, please avoid getting trapped in the jargon. This is the problem with the HR professionals. Ensnared in the characteristic language of the HR profession, the end result is given short shrift. To avoid this challenge, it is better to implement PMS where the sole focus is on the measurement of the costs and ratios. Each KRA must meet the SMART principle. If it is not SMART, it is not a KRA at all.
Thanks,
Dinesh Divekar
From India, Bangalore
You may click the following link to refer to the OKRs of the Operations Team:
https://quantive.com/resources/articles/operations-okrs
In the above result, key results are given. These can be assigned to the individual.
Final Comments: - When you OKRs to the individual, to the team or even organisation, please avoid getting trapped in the jargon. This is the problem with the HR professionals. Ensnared in the characteristic language of the HR profession, the end result is given short shrift. To avoid this challenge, it is better to implement PMS where the sole focus is on the measurement of the costs and ratios. Each KRA must meet the SMART principle. If it is not SMART, it is not a KRA at all.
Thanks,
Dinesh Divekar
From India, Bangalore
Hi Shruthi,
There are various approaches to conducting employee appraisals, and it's great that your company is open to exploring different methods. Here are a few alternative approaches that you can consider:
360-Degree Feedback:
Description: Involves gathering feedback from multiple sources, including peers, subordinates, superiors, and even external stakeholders.
Advantages: Provides a comprehensive and well-rounded view of an employee's performance. Reduces bias by incorporating diverse perspectives.
Disadvantages: Can be time-consuming and resource-intensive. Requires a well-structured process to ensure anonymity and honesty.
Objectives and Key Results (OKRs):
OKRs involve setting specific, measurable objectives and key results for each employee. Performance is then evaluated based on how well these objectives are met. This method focuses on outcomes rather than activities.
Continuous Feedback and Check-Ins:
Instead of a once-a-year appraisal, implement a system of regular check-ins and feedback sessions between employees and their managers. This promotes ongoing performance discussions and allows for timely adjustments.
Behavioral Anchored Rating Scales (BARS):
Description: Evaluates performance based on specific behavioral indicators linked to different levels of performance.
Advantages: Provides specific and observable criteria for evaluation. Helps in linking behaviour to outcomes.
Disadvantages: Requires a well-defined set of behaviors, which can be subjective to some extent.
Skill-based Assessment:
Evaluate employees on specific skills and competencies that are crucial for their role. This can be particularly effective for roles where specific skills are paramount.
Management by Objectives (MBO):
Similar to OKRs, MBO involves setting specific objectives and goals, and then evaluating employee performance based on the achievement of these objectives.
Gamification of Performance Management:
Introduce a gamified system where employees earn points or badges for achieving specific milestones or demonstrating desired behaviors.
Critical Incident Technique:
Description: Focuses on significant events or behaviors, both positive and negative, that have a notable impact on performance.
Advantages: Offers specific examples for assessment. Helps in identifying strengths and areas for improvement.
Disadvantages: Can be subjective and reliant on individual judgment. May not cover all aspects of performance.
Ranking and Forced Distribution:
Description: Employees are ranked in order of their performance, often leading to a predetermined distribution (e.g., top 10% are high performers, next 20% are average, etc.).
Advantages: Encourages differentiation between employees. Can help identify high-potential individuals.
Disadvantages: Can foster competition and a negative work environment. May not accurately reflect individual contributions.
Self-Assessment:
Description: Employees evaluate their own performance against predefined criteria or objectives.
Advantages: Encourages self-reflection and personal accountability. Provides insights into how employees perceive their own contributions.
Disadvantages: Can be influenced by self-bias or a lack of self-awareness. Should be used in conjunction with other evaluation methods for a balanced view.
The most effective appraisal system may vary depending on the nature of your industry, company culture, and specific roles within your organization. It's a good idea to involve employees in the process to get their input and buy-in for the new approach.
It's important to note that no single method is universally superior, and organizations often use a combination of these methods to provide a comprehensive evaluation of employee performance. Additionally, effective implementation of any evaluation method requires clear communication, regular feedback, and ongoing support for employee development
Thanks
From India, Bangalore
There are various approaches to conducting employee appraisals, and it's great that your company is open to exploring different methods. Here are a few alternative approaches that you can consider:
360-Degree Feedback:
Description: Involves gathering feedback from multiple sources, including peers, subordinates, superiors, and even external stakeholders.
Advantages: Provides a comprehensive and well-rounded view of an employee's performance. Reduces bias by incorporating diverse perspectives.
Disadvantages: Can be time-consuming and resource-intensive. Requires a well-structured process to ensure anonymity and honesty.
Objectives and Key Results (OKRs):
OKRs involve setting specific, measurable objectives and key results for each employee. Performance is then evaluated based on how well these objectives are met. This method focuses on outcomes rather than activities.
Continuous Feedback and Check-Ins:
Instead of a once-a-year appraisal, implement a system of regular check-ins and feedback sessions between employees and their managers. This promotes ongoing performance discussions and allows for timely adjustments.
Behavioral Anchored Rating Scales (BARS):
Description: Evaluates performance based on specific behavioral indicators linked to different levels of performance.
Advantages: Provides specific and observable criteria for evaluation. Helps in linking behaviour to outcomes.
Disadvantages: Requires a well-defined set of behaviors, which can be subjective to some extent.
Skill-based Assessment:
Evaluate employees on specific skills and competencies that are crucial for their role. This can be particularly effective for roles where specific skills are paramount.
Management by Objectives (MBO):
Similar to OKRs, MBO involves setting specific objectives and goals, and then evaluating employee performance based on the achievement of these objectives.
Gamification of Performance Management:
Introduce a gamified system where employees earn points or badges for achieving specific milestones or demonstrating desired behaviors.
Critical Incident Technique:
Description: Focuses on significant events or behaviors, both positive and negative, that have a notable impact on performance.
Advantages: Offers specific examples for assessment. Helps in identifying strengths and areas for improvement.
Disadvantages: Can be subjective and reliant on individual judgment. May not cover all aspects of performance.
Ranking and Forced Distribution:
Description: Employees are ranked in order of their performance, often leading to a predetermined distribution (e.g., top 10% are high performers, next 20% are average, etc.).
Advantages: Encourages differentiation between employees. Can help identify high-potential individuals.
Disadvantages: Can foster competition and a negative work environment. May not accurately reflect individual contributions.
Self-Assessment:
Description: Employees evaluate their own performance against predefined criteria or objectives.
Advantages: Encourages self-reflection and personal accountability. Provides insights into how employees perceive their own contributions.
Disadvantages: Can be influenced by self-bias or a lack of self-awareness. Should be used in conjunction with other evaluation methods for a balanced view.
The most effective appraisal system may vary depending on the nature of your industry, company culture, and specific roles within your organization. It's a good idea to involve employees in the process to get their input and buy-in for the new approach.
It's important to note that no single method is universally superior, and organizations often use a combination of these methods to provide a comprehensive evaluation of employee performance. Additionally, effective implementation of any evaluation method requires clear communication, regular feedback, and ongoing support for employee development
Thanks
From India, Bangalore
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