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 The
performance appraisal system forms an integral part of the employee
development process in any organisation. It reflects the ability
of an organisation to define goals and expectations from employees.
A fair and ethical performance appraisal process is essential for
the company’s well-being and it plays a significant role in
bringing out the best in workers. Salary revision following a performance
appraisal is a great motivating factor and a fair performance appraisal
process goes a long way toward reducing attrition rates.
Six-monthly appraisals
Most IT organisations go in for a bi-annual performance
review, helping to ensure that employees are on the right track.
Steps are taken to bring them onto the track if they deviate from
their goals. However, most organisations believe in giving their
employees a salary hike only once a year based on their annual performance.
Prabhakar Chandrashekhar, manager HR, Apara Enterprise Solutions
says, “Employees love to get feedback twice a year and it works
in two ways. One, it helps them correct any mistakes they might
have committed during the first half of the year; and two, they
can set things right to achieve their goals by the end of the year.”
Fair appraisals
An organisation needs to have an appraisal system
that is free from bias. Being fair and objective is of utmost importance
for the integrity of the performance review process. Unfortunately,
personal biases, prejudices and idiosyncrasies, occuring at the
subconscious level can have a negative effect on an employee’s
evaluation. It has been observed that most organisations have more
than two appraisers to maintain objectivity in the performance appraisal
process.
Madan Mohan Nagaldinne, vice president of human
resources, Tavant Technologies says, “We have two rounds of
appraisals, whereby the performance appraisal given by the team
leader is again reviewed at the company level to ensure that it
is not biased. This ensures that the employee gets due recognition
of the work which he or she has put in for the tasks assigned to
them.” It has been observed that if an employee gets severely
negative feedback he can have a deflated picture of his performance
and development needs and might feel angry, alienated, de-motivated,
and demoralised ending up suffering from a loss of confidence.
On the other hand, when an employee receives
overtly positive feedback, there might be ill feelings from other
employees who perceive that one employee enjoys preferred status.
There are also chances of clouding an employee’s understanding
of what is actually expected from him.
Multiple rounds of appraisals
In order to avoid biased assessments some organisations
have multiple rounds of appraisals, which helps maintain the objectivity
and transparency of the exercise. Most organisations vouch that
biases and difference of opinion between the appraiser and the appraisee
are very uncommon and on an average happen maybe once in a hundred
occasions. For instance, SAP Labs India has an online performance
management system and the managers (who on an average head 16 employees
each) keep defining objectives for them from time to time, depending
upon changes in project objectives. It helps employees update themselves
and change their approach, depending upon project requirements.
Satish Venkatchaliah, head of HR with SAP Labs
India adds, “Regular sharing of information through the online
performance management system helps ensure that communication channels
between a manager and an employee are open throughout the year.
This helps avoid any difference of opinion in performance reviews.
In case there is any difference, it is sorted out with mutual discussion.
When a discussion does not help in sorting out the problem, the
HR department mediates and things are put on track.” In MindTree
Consulting, there is a panel which overlooks the assessment which
has been done by the appraiser. Puneet Jetli, general manager—people
function, MindTree Consulting explains, “It is ensured that
consistency in rating employees based upon their performance is
maintained. This ensures that an employee gets his due in context
of the performance which he put in for achieving set goals.”
Training the appraisers
Almost all organisations train their appraisers
to ensure that they give proper feedback to the appraisee and maintain
transparency in the performance appraisal system. Training helps
an appraiser in setting directions and establishing clear performance
expectations from employees. It helps them give performance feedback
on a regular basis, ensuring that goals set up by the appraiser
get completed on time, within budget, and according to required
specifications.
SAP Labs India conducts performance training
for its managers, which helps in setting proper objectives for their
direct reports. Similarly, Tavant Technologies also has a set of
training programmes for its managers that help them assess performance
better. Nagaldinne says, “Proper training of appraisers helps
ensure that they have a fair idea of the types of biases and the
harmful effect any bias might have on an employee. Training of appraisers
also ensures that they give their feedback in a diplomatic way which
helps them maintain objectivity and does not hurt the sentiments
of the employee.”
Effective communication
Open communication channels between an appraiser
and an appraisee is the backbone of any successful appraisal system.
Regular discussion between the two is necessary as it helps develop
a positive relationship. Positive achievements of the appraisee
should be highlighted and problem areas dealt with before they spin
out of control. Addressing problems immediately ensures the reinforcement
of good performance as it motivates employees to excel in their
work. Regular discussions with employees help raise motivation levels
and reinforce their belief in the organisation. It ultimately leads
to higher productivity, quality work and effectiveness of employees
as a group.
- Become aware of your own prejudices and challenge them.
- Focus on observable behaviours related to expectations.
- Ask yourself if you are viewing the employee’s behaviour
in an objective manner.
- Consider factors that may have affected an employee’s
performance or behaviour, such as circumstances beyond the
employee’s control.
- Keep things in perspective in terms of frequency, significance
in the overall picture, and representation of the employee’s
overall performance.
- Ask yourself if you have overemphasised aspects of the
employee’s performance you find particularly admirable
or irritating.
- Check your perceptions for accuracy, fairness, balance,
reasonableness, and consistency.
- Give written feedback that is specific, constructive,
and action-oriented.
Source: Tavant Technologies
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- Address performance problems as an opportunity for professional
development.
- Listen actively to the employee’s concerns.
- Remember and acknowledge that negative feedback is both
hard to give and to receive.
- Identify and ask for specific behaviour or training needed
to correct performance problems.
- Work together on one performance concern at a time.
- If there are multiple concerns, schedule additional meetings.
- Solve problems and identify solutions together that are
acceptable to both parties and then decide when you will
meet again to evaluate the outcomes of these solutions.
- Don’t discount emotional responses that are bound
to occur.
- Take a break to relieve tensions if emotions become extreme
and reschedule the meeting if necessary.
- Work to communicate assertively rather than aggressively
or submissively.
Source: Tavant Technologies
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abhinav@expresscomputeronline.com
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