Performance Appraisals Focus On Development Goals

Punita Jasrotia - New Delhi

Gone are the days when an organisation’s annual assessment system was a tedious and cumbersome affair and served the purpose of a ‘retention tool’ for the HR manager. Appraisal systems in most companies have now undergone drastic changes with changing periodicity. Many organisations like vMoksha Technologies, IT&T, Nucleus Software and Daksh eServices, are presently conducting additional quarterly assessments, which are markedly different from traditional annual reviews. Development being the key issue, for an organisation a multiple assessment system helps in furthering goal-setting and relationship building, and employees recognise it as a career development/enhancement exercise. The need for multiple assessments ranges from shorter project cycles to continuous stress on ROI. Bonnie Singh, executive director-human resources, Techspan India, explains, “Performance measurement and management has to be a dynamic process. A once-a-year appraisal offers no scope for mid-course correction to either the average-performer or the organisation. The yearly system is not only archaic and bureaucratic, it also precludes the ability for employees to track their ‘personal performance scorecard’ real-time. With the rampant flux in business environment and widespread acknowledgement that employees must align and realign themselves, many organisations will be compelled to measure performance in increasing frequencies. Adds M L Taneja, vice president-human resources, HCL Infosystems, Assessment tools are very important in assessing that a company’s business is going as per plan and if some anomalies are found, corrective action is taken immediately. If at the end of a year, we tell an employee that he has not performed up to the mark, he does not accept it, reasoning that he should have been given the feedback on his performance during the year so that he had a chance to improve. For an organisation also, the annual system is not suitable as it loses one year of performance from the employee appraisal system. According to him, a multiple assessment system helps in clarifying what an employee is expected to deliver. Mita Ray Brahma, head, corporate HRD, Nucleus Software, however feels that multiple assessment systems have led to increased scrutiny by companies for better manpower utilisation. It also helps a company understand its adaptability to changing industry dynamics. So, while vMoksha Technologies uses quarterly goal-setting and performance reviews under its variable pay programme, the annual reviews focus on developmental needs and overall performance. For Aptech Training, their appraisal system identifies the star performers, solid citizens, the problem child, and accordingly an action plan is drawn. On the other hand, NetBase Computing’s quarterly performance reviews are linked to the ‘Company Bonus Plan’. The rating here determines an individual’s eligibility for bonus. But, how do you determine which system best suits your company? According to Pawan Kumar, chairman & CEO, vMoksha Technologies, the task is not so easy. While the main criteria are the nature of business and diversity of work profile, there are other significant factors. The pertinent questions are: Is it a ‘fair’ goal setting/assessment tool? Is it flexible enough to suit changing business dynamics? Does it have a second level check for consistency across an organisation? Does it provide employee development processes? As a result of changing organisational demands, most companies are opting for a comprehensive in-house customised performance management lifecycle. With companies like Tata Telecom, IT&T, Techspan, Cap Gemini Ernst & Young, framing their own processes, the stress on matured systems is only going to increase. Take the case of Techspan India, which has formed an Individual Performance and Development Review (IPDR), a six-monthly performance management initiative. According to Singh, the purpose is to prevnt disorientation and non-alignment of employees and their organisations and track performance on real-time basis. For this, the company has instituted several sub-processes. IPDR is a twin-set process comprising the Individual Performance Review (IPR) and the Individual Development Review (IDR). These are done sequentially since the IPR directly influences performance bonus payouts and increments, while the IDR impacts career advancement. The company also has a Mini-IPR, done mid-cycle, which serves as a ‘spot-check’ for individuals and managers. Polaris Software has been implementing ‘Lakshya’ for performance management of its employees. Aptech Training, on the other hand, has developed a comprehensive Member Assessment System named ‘Oasis’, which includes objective assessment and subjective impression. “We have developed a tool comprising two stages, seven levels and sixteen attributes. With the help of this tool we can predict an employee’s ability to perform, potential to grow, adaptability to change and integrity,” says Ajay Oberoi, vice president-human resources, Aptech Training. Besides Oasis, we also use the assessment centre for appraising high potential members for faster growth under our internal selection schemes.

Dr E J Sarma, CEO, Hurmist, believes that ‘Assessment centres’ are slowly becoming a key focus area for many companies. Also, assessment systems have matured from being a retention tool to gradually becoming a developmental tool. The approach is not to retrench people who under perform, but help them understand their particular strengths and work towards it. Atul Srivastava, head-people relationship management of Mumbai-based Cap Gemini Ernst & Young India, says, The companies of today have become more quality conscious and the shift is more toward career enhancement and career planning for the overall growth of the organisation. Though rewards were and will still remain an integral part of the assessment system, what has happened is an increased emphasis on development of employees. Agrees R Shekhar, head-corporate strategy and business excellence, Polaris Software, who feels that the purpose of these quarterly or even monthly assessments should be to help an individual excel in his or her respective area. In case of Polaris, we help the individual build a run rate for their future. The purpose is to help all top performers, potential performers and even under performers. Top performers are helped to replicate their success and identify key areas, while potential performers are helped to deliver their best. In case of under performers, the stress is not so much on shortcomings, but their strengths which can only help an individual gain confidence and excel better.