“Performance Appraisals have always been a critical part of a manager’s job. Doing them well differentiates the average manager from the outstanding ones. The Millennial workforce – those employees approximately 30 years old and younger – are hungry for performance feedback on a more regular basis than ever before. Being capable of delivering that feedback is, as a result, becoming a key retention tool. If managers cannot do this well, it will result in unnecessary turnover.”
Brain Van Der Weele, Executive Director, Human Resources, Johnson Controls, Inc.
Performance evaluation can be a wake up call for a young graduate from college successfully completing the period of Probation or it can be boss’s straight between the eyes candid feedback both on the form and in his/her words that can jolt the subordinate for the reasons why that employee is there at the first place.
Performance Management in third world country is not limited to the corporate world. As house hold workforce is available for domestic use, the performance is critically measured and enforced by housewives… However, the same system of performance management when discussed in company meetings and corridors, it is observed that management is reluctant to take the initiative for many reasons. whether it be the domestic experience of how they be evaluated or a peer to peer pressures. The reluctance is not only observed in management levels but also in Labour categories (Skill levels), where the baradari system is over and above the floor management.
Moreover, the initial nightmare to start with Performance Management System are more likely to be the following for owners as well as management staff reporting to C-Level management:
- How to set goals?
- How to evaluate person’s behavior?
- How to assess subordinate development needs?
- What is the right performance evaluation rating?
- How to deliver bad news (or good news) without killing communication or motivation?
Many more excuses to avoid eye to eye conversation due to hesitation of losing employees or Management conversation / communication skill levels…
Theoretically as well as practically, a well drafted performance evaluation system shall be segmented into following segments:
Performance Evaluation Segmentation – JYA HRMS
- Key Performance Areas (KRA’s);
- Key Performance Indicators (KPI’s)
- Personnel Development
- Functional Competencies;
- Behavioral Competencies;
- Company Core Values.
It is important to understand the definition, description and usefulness of each segment. The segmentation is carried out to organize the thought process and layout of the Performance evaluation strategy. The segments total score shall sum up to 100 and each segment shall be calculated on weighted average principle. The weighted average shall differ from industry to industry i.e. services & manufacturing.
Individual Employee Performance Score Summary Report – JYA HRMS
On average, for manufacturing concern – Key Performance Area shall weighted at 70% percent, Functional Competencies at 10%, Behavioral Competencies at 10%, while, Company Core Values at 10%.
Moreover, the differentiation between KRA’s and KPI’s is critical. As academics and consultants explain this jargon, KRA is the primary component or it shall tell where the individual is supposed to concentrate his/her attention; while, KPI shall tell how his/her performance in the specific area should be measured.
For example, the KRA’s can be Sales, Quality & departmental expanses. These three KRA’s shall be focused from top to bottom in each department subsequently adding up to the Company’s yearly targets.
Functional & behavioral Competencies Report – Self & Manager – JYA HRMS
Similarly, the functional competencies i.e. planning & organizing etc. shall be monitored and measured separately. While, the behavioral competencies i.e. Attendance, attitude etc. shall be monitored and measured separately.
Furthermore, all activities shall reflect back on the Company Core values. therefore, adherence of all employees to the core values of the organization shall be monitored and measured respectively.
Employee Self Assessment – JYA HRMS
Practically, it is necessary to get the perspective of each employee who is being evaluated and at the same time, the manager shall evaluate the said employee in the presence of the employee being evaluated in order to reduce the communication gap related to the expectations of the subordinates and vice versa…
As we mentioned earlier in this article, it is critical for a manager to know how to deliver bad news / good news without killing communication or motivation.
Employee Performance Summary Report – Including Increments & Adjustments – JYA HRMS
Finally, there is a long list of do’s and don’ts to be consider while drafting a Performance Evaluation System. The standardized system has to be customized as per the need of the organization. Moreover, the use of technology can help to keep the record of the evaluations and analytically review the results vis-à-vis cost and benefit ratio of the whole exercise. It is important to understand that performance evaluation system is a journey to multiple ends… It can help in Business Process Re-engineering (BPR), Project Management and Method’s engineering etc. for lowering cost and increase reliability & productivity through humans…
We at JYA Consulting, believe that if Performance Appraisal is done right, it can produce powerful and beneficial results for the owners as well as the management in an organization where employees shall prefer to stick with their jobs as a career rather then just a stepping stone for next job search. The Techniques and skills that we provide through counseling and software application of JYA HRMS, combined with your courage to put them to use, will benefit you, your organization, and everyone of your subordinates who look to you for leadership.
JYA Consulting tangible deliverables are in the form of Software Application and we stand by our products with professional after sale services for continuous development as per demand of advance technology.
We have a basket of Cloud/Web based Software Solutions including:
- Enterprise Business Solution (ERP) – www.jyaebs.com
- Secondary Sale Distribution/Dealer System (SalesPro…) – www.jyasalespro.com
- Human Resource Management System (HRMS) – www.jyahrms.com