a human resource newsletter
issue no 58 | may 2013
continued from previous page | PERFORMANCE APPRAISAL: A ‘MERRY-GO-‘ROUND’GAME : Shekhar Joshi
without considering the impact of factors such as economic fall of the organization, the national or market conditions during the same period. For example, organizations in the automobile sector have seen tremendous slowdown in the last scal year where performance appraisals would be of little help. Apart from 90° or 360° performance appraisal methodologies, there are many other ways to ascertain employees’ performance such as Critical Incidence, Weighted Checklist, Behaviour or Trait indicators, MBO – Management by Objectives, Forced Ranking etc. All the appraisal methodologies end with monetary consideration for an individual. The bell curve of allocated budget, forces team leaders to t and reward all subordinates within the available constraints. Thus, the process of negative motivation in the team begins. Although the goal setting process commences at the beginning of assessment year, it seldom ensures complete alignment of an individual with organizational goals. KPIs or KRAs for an individual are usually dened, discussed and logged as per the process mapped which calls for transparent evaluation, a herculean task in itself. HR professionals all over, hence largely agree to the fact that no performance appraisal system can satisfy every individual in the organization. Performance appraisal, in a way, becomes a ‘Merry Go ‘Round’ game for all concerned. Performance culture means, that rewards are based on the actual performance against targets across the organization. Many organizations have followed this culture for long-term success. These organizations have seen results of a performance oriented culture during the most dicult economic times. For example, at Foseco India Ltd we have developed this culture and added more share holder value while beating the competition. It takes many years to develop a performance culture and make it a part of the organization’s DNA. When you implement a performance culture, there is both optimism and fear in the minds of employees. Optimism, as there is a feeling of organizational betterment, that everyone will share the fruit of this high performance and be better professionals. Fear, due to the feeling that lack of performance will be detrimental for job retention. At this point, employee engagement is needed for performance management to succeed. We need to manage the conict between individual and team performance. Organizations cannot attain success with a few individuals winning and the team lagging behind. At the end of the goal setting discussion, each employee must own the set objectives. This is the most dicult phase, where to achieve success, the employee needs to experience the support of the whole team including the leader. He should be encouraged to set objectives on monthly/weekly basis. There should be a self-monitoring mechanism along with a monthly review by the supervisor. Finally, in a performance culture all employees are rated with a common yardstick. Review should be very thorough and be a give and take process. The employee also needs an opportunity to convey his feedback. The review is required to have a positive environment for all since there will be stars, average and below average performers in all organizations. Thus, this culture is a constant learning and improvement process, which necessitates involvement and commitment at all levels of the organization.
THE OD ENTHUSIAST’S ORATE Roshan Lal Aggarwal
Roshan Lal Aggarwal has a bachelor’s degree in Engineering and a postgraduate diploma in Industrial Engineering. He has retired as the national head of sales in 2009 from Foseco India Ltd. He has been a management team member of Foseco India Ltd and a member of the Centurion club of Foseco International.He is currently the CEO of VIMP Pvt.Ltd., which is a SME.
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