Hello Vinay,
What HR does varies a lot from organization to organization. Whatever you do, I suggest that it is supervisors and managers that take direct responsibility for managing the performance of their staff. HR should act in an advisory capacity, and be responsible for the setup and maintenance of the “system”.
That being said, once the ratings are returned to HR, what HR does will depend on how strategic the HR department is and in what form the data is in. At one end of the spectrum, HR could simply file the forms. A more strategic and data driven approach may include:
-compute the number/percent of completed appraisals and feedback to executive team for action
-chart the distribution of ratings and act (some orgs then fire the bottom 10 percent, some normalize the ratings and redistribute, some conduct remedial performance management training for managers)
-review the written supervisor/manager comments and consult with those supervisors/managers not conforming to the standard
-calculate and organize distributions of salary increments, bonuses and other rewards
-calculate progress towards building strategic competencies/skills
-identify competency/performance shortrfalls and compile an action plan
I’m not recommending that you do any/all of these. As you can see, there is a wide variety of things that orgs do with the results. And what they do is dependent on what they want to achieve and how their performance management system is set up.
Vicki Heath
Human Resources Software and Resources
http://www.businessperform.com