Although many progressive employers, such as Toyota, have essentially eliminated formal appraisals doing so may not be practical for most employers. At firms like Toyota, eliminating appraisals is a by product of a broader effort. New employees endure a week or more of screening and then several weeks of training. Enormous efforts go into fostering employee commitment and teamwork. Incentives support company oriented thinking. Not all employers can or necessarily would benefit from such systems. Conventional appraisals are therefore still the norm. They are also as most people know, more often than not occasions for tension and grief.
Why appraise performance?
Here are four reasons to appraise subordinates’ performances>>>
1) First, from a practical point of view most employers still base pay and promotional decisions on the employee’s appraisal. Although a similar trend is becoming popular with the Indian private sector and MNCs pay and promotion decisions in the Indian public sector and the more traditional private sector organizations are still based on seniority. However, the minimum level of performance does need to be recorded, to be eligible for promotions.
2) Second, appraisals play an integral role in the employer’s performance management process. It does little good to translate the employer’s strategic goals into specific employees’ goals, if you don’t periodically review performance.
3) Third, the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies and to reinforce the think the subordinate does right.
4) Fourth, appraisals should serve a useful career planning purpose. They provide an opportunity to review the employee’s career plans in light of his or her exhibited strengths and weaknesses.
In reviewing the appraisal tools we discuss blow, don’t miss the forest for the trees. It doesn’t matter which tool you use if you’re less than candid when your subordinate is under performing. Not all managers are devotees of such candor, but some firms like GE, are famous for hard hearted appraisals. GE’s former CEO Jack Welch once said, for instance that there’s nothing crueler than telling someone who’s doing a mediocre job that he or she is doing well. Someone who might have had the chance to correct bad behavior or find a more appropriate vocation may instead spend years in a dead end situation, only to have to leave when a more demanding boss comes along.
There are many practical motivations for giving soft appraisals: the fear of having to hire and train someone new: the appraisee’s unpleasant reactions; or a company appraisal process that’s not conducive to candor, for instance. Ultimately it is person doing the appraising who must decide if the potential negatives of less than candid appraisals outweigh the assumed benefits. They rarely do.
The Supervisor’s Role:
Appraising performance is both a difficult and an essential supervisory skill. The supervisor – not HR – usually does the actual appraising and a supervisor who rates his or her employees too high or too low (or all average) is doing a disservice to them and to the company. Supervisors must therefore be familiar with appraisal techniques, understand and avoid problems that can cripple appraisals and know how to conduct appraisals fairly.
The human resources department serves a policy making and advisory role. Generally human resources provide advice and assistance regarding the appraisal tool to use, but leaves final decisions on procedures to operating division heads. In some firms, Human resource department prepares detailed forms and procedures for all departments. The human resources team should also be responsible for training supervisors to improve their appraisal skills for monitoring the appraisal system’s effectiveness and for ensuring that it complies with relevant laws and guidelines.
A sound presentation that will send across the point – Appraisal
Rewards and incentives contribute to strategy implementation by shaping individual and group behavior. Well designed incentive plans are consistent with an organization’s objectives and structures. They motivate employees to direct their performance toward the organization’s goals. Sega’s reward system must be compatible with the risk of their strategy.
Qualitative measures of performance can reinforce initiative by assuring executives that total performance will be evaluated for purposes of bonus awards.
The size of both salary and incentive awards should be commensurate with the business and personal risks involved.
Bonus pools can be based on divisional performance, total corporate performance, or mix of the two. Each arrangement sends different signals in terms of interdivisional co-operation.
Nondiscretionary formula based bonuses for division managers are most practical in companies where little cooperation among divisions is required Discretionary bonuses are practical when top management wants to encourage cooperation among divisions.
With the meltdown down on knees and economy getting back on feet, it is payback tie mfr the employee. Here are a few back quick tips to ensure a fair deal in appraisal as India Inc., gears you for the annual review reason:
You might believe that work should do all the talking, but you need to exercise your tongue in this crucial period. While hard work may be alone sufficient to draw attention of the right quarters, it is a sound presentation that will send across the point more strongly. So yes do believe in work over words, but when it is time do not shy away from marketing yourself.
Sacrifice is not a bad idea:
Occasionally that is and that too when feasible. One wants to catch a movie but your work demands overtime? Bonus season but revenues are on the downside? Relinquish it. Itsy bitsy sacrifices on odd occasions pile up and bring dividends towards the end. Like with your yearlong contributions all you would need to do is bring them to the notice of your reviewers during review meetings.
Legend has it that people who suddenly indulge in lengthy overtime just one week before appraisals tend to get the extra pie. You are dealing with bosses with years of experience under their belt, all well aware of such obsolete hike stunts. So if you are not very well known to work beyond daily schedule continue to wrap up the day on time. Such an honest display of behavior would only do well to your image in such a crucial phase.
One of the worst approaches to win appraisal is fighting it out with your boss If anything, a quarrel only ensures rejection of the candidate even if the boss might be considering his prospects. The challenge is to convince everyone with a cool mind and counter criticisms with logic.
Another let down displayed often by the desperate is the resignation letter. You do not want to pose yourself as ungrateful to the company particularly during appraisals. Even if your way through such threats the overall impression would go against you in the longer run. The sensible thing would always be to abstain from the R word, hike or no hike.
Good appraisal may not necessarily mean good money. If your company goes on the defensive and almost requests you to settle for a tad raise quoting revenue reasons, you can still bargain out a good deal. Try to focus on other things like incentives, perks, or deadlines all their while offer in pay hike. This way, both the parties will see benefit and walk home satisfied.
Getting a good appraisal is important for everyone but you need to remember the few points that constitute a decent appraisal. You need to work towards a good appraisal throughout the year than in the last few months.