A Goal Oriented Appraisal System

Observations from Yesterday's Meeting

It was observed that the organization currently lacks a proper performance appraisal system. Technical skills are assessed by their Netherlands counterpart, but to the best of my knowledge, this process is not documented. Presently, they are using a 360-degree feedback system; however, the content of the appraisal is quite poor. The organization is focusing on implementing a goal-oriented appraisal system and planning to conduct appraisals quarterly. Their primary objective is to enhance employees’ soft skills while simultaneously assessing their technical skills. Through this approach, they aim to identify skill gaps and training needs within their workforce.

Performance management involves working collaboratively with employees to identify strengths and weaknesses in their performance and finding ways to help them become more productive and effective workers. Therefore, it is crucial to have a proper performance management system in place to benefit everyone in the organization. To establish an effective performance appraisal system, the following actions should be considered:

Actions to Be Taken

Evaluate the Current Performance Appraisal System

The current performance appraisal system needs to be evaluated thoroughly. We must analyze the areas it covers and how frequently feedback is provided. Additionally, it is necessary to identify any changes or additions required in the evaluation criteria. As per the current system, only soft skills are being assessed, but it is crucial to evaluate technical, operational, and service skills to foster career development.

Identify Organizational Goals

The performance management system should align with project goals. Project managers have insights into project deadlines, the necessary resources to meet those deadlines, and metrics to assess effectiveness and efficiency. This chain of measurement ensures alignment with the organization's overall results. Goals should be established within a SMART framework:

• Specific: Clearly defined to inform employees exactly what is expected, when, and how much.
• Measurable: Provide milestones to track progress and motivate employees toward achievement.
• Achievable: Success should be attainable with effort by an average employee, with a bit of a stretch.
• Relevant: The goals should focus on the greatest impact on the overall corporate strategy.
• Timely: A goal should be grounded within a time frame to create a sense of urgency for completion.

Thus, it is vital to clarify what your goals are for the next quarter.

Simplify Processes or Procedures

Identify processes or procedures that could be simplified or executed more effectively. Declare the goals for the next quarter or any new products/projects employees may be involved in. Implement better communication between departments and team members.

Set Performance Expectations

Clearly explain performance expectations to employees. Examine how well they are currently performing their job. Share observed weaknesses in their work habits and discuss how overcoming these would enhance their performance within the company. Identify specific tasks to accomplish over the next quarter, prioritize them, and provide deadlines for each task.

Monitor and Develop the Performance Cycle

Throughout the quarter, one-on-one feedback is a valuable approach. As employees work on their expectations, regular assessments of their performance are necessary. Weekly feedback sessions can be conducted to provide insights into their performance. If they struggle to meet expectations, discuss the situation with them and determine if they require any support or coaching.

Evaluate Employee Performance

During each performance review, employees should be informed of their progress. Assigning a numeric value on a scale, ranging from “not meeting expectations” to “exceeds expectations,” can be helpful. As a company, it is essential to provide specific feedback, noting key examples when they demonstrated particular qualities. Explain the consequences or rewards of their performance, as this is a key strategy for retaining top talent and driving organizational performance beyond expectations. These strategies can also help develop underperformers into valuable assets for the organization. Discuss any challenges they may face and listen to their concerns. Align feedback with the feedback provided throughout the quarter during one-on-one sessions.

Set New Performance Expectations for the Next Quarter

Some performance expectations may remain the same, but since these are also based on organizational goals, you will need to reassess the goals for the upcoming quarter.

Conclusion

An effective performance management plan is essential for creating an engaged and aligned workforce, a hallmark of all successful businesses. Without such a plan, the organization risks losing more than just time and money; it could lose valuable knowledge, employees, and ultimately its competitive edge.

References:

• Armstrong, M. (2014). Armstrong's Handbook of Performance Management: An Evidence-Based Guide to Delivering High Performance. Kogan Page Publishers.
• Cascio, W. F. (2018). Managing Human Resources: Productivity, Quality of Work Life, Profits. McGraw-Hill Education.