How Can I Make Our Appraisal System More Objective and Relevant to Each Role?

Introduction

I have recently joined an ITES company. We are about to start the appraisals for this year. It's a three-year-old company, and a formal appraisal system was introduced only last year. The system is based on a 180-degree appraisal technique using a five-point rating scale. The KRAs were also distributed to employees for the next review period (which is going to happen now).

Concerns with Current KRAs

My concern is that all the KRAs distributed were not associated with the job but were only based on employers' expectations from the employees, e.g., adaptability, willingness to learn, etc. All these are not based on the function or the job they are in. I have been given the authority to make changes in the system if I wish, and I would like it to be more objective than subjective.

Proposed Changes

As the KRAs were not set earlier, I thought we should set a few for every department, out of which a few can be selected for each employee during the review discussions, and their performance should be evaluated further based on these KRAs in addition to the behavioral attributes.

Please guide me, is this the right way of doing it? Is there anything else I should be doing? Any suggestions to make it better?

Regards,
Meeta

KRA-Based Performance Review: A Balanced Approach

KRA-based performance reviews with additional inputs on behavioral aspects are beneficial to follow. However, care should be taken to associate KRAs with specific jobs. If you want to create a complete set of KRAs for each job, you should probably hire a consultant or explore sites like KPI Library.

Regards

Some of the tasks are crucial but not frequent. Can such tasks or job aspects be considered for framing KRA?

Certainly. You could even classify the KRAs conveniently and then apply the weightage logic, job role-wise. An example is provided below:

Sales Manager

Functional KRAs: 45%
Organizational KRAs: 20%
Behavioral Attributes: 35%

Dear senior members,

I am the regional manager for my organization where no standard has been implemented for reviewing employee performance, and there is no specific appraisal system in place as of now. For this year's appraisal, I would like to implement a self-appraisal system and Key Result Areas (KRAs) into my organization, of which I don't have much idea.

Could you please help me move forward with my intentions?

Thanks in advance.

Regards,
Selvakumar.N

Sharing the information on the PMS process prevailing at my organization.

Key Result Areas (KRAs)

1. An employee ideally should have KRAs covering Financial Results, Customer Results, Process Improvements, New Initiatives, and People & Organizational Development. Employees who have two or more direct reportees should include team work and self-development initiatives under People & Organizational Development. It must be qualified and then quantified.

2. The appraisee has to list these KRAs along with their weightages. The weightages need to be agreed upon between the appraisee and the appraiser. The sum of the weightages of all KRAs put together should be equal to 100%.

3. The appraisee's achievement on each KRA has to be measured as per the weightage on a 100-score scale.

Personal Development Plan

The Personal Development Plan of employees could be added to the PMS process based on the competencies (which could be specified as per the organization/role - Functional & Behavioral), which in turn will be the input for your TNI and L&D programs. Hope this information will help you.

Regards,
Santhoshi

That's great, Mr. Selvakumar,

Congratulations on being a part of such a dynamic company. Honoring the greatest asset of any company, i.e., Human Resources or their employees, is very professional and the need of the hour.

Selvakumar, there are two aspects to consider when appraising employees.

The Behavioral Aspect

The first aspect is the behavioral part, which is very subjective and verifies the competencies required for a job or a particular position in the organization. This is typically done through various appraisal systems, such as the 360-Degree Appraisal System.

The Performance Aspect

The second aspect is the performance part, which deals purely with numbers and figures. This is measured using various employee performance management systems, such as Key Performance Indicators.

You may choose to implement one of these first and then the other (my preference would be the 360-Degree Appraisal).

Thanks with warm regards,

Vinod

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