PERFORMANCE APPRAISAL SYSTEM OVERVIEW

The performance appraisal process can be divided into three phases:

PHASE IPerformance Planning, Communication of Performance Expectations/Requirements and Goals/Projects Identify appropriate KRAs from functional KRA Master Set Key Performance indicators for each KRA Assign a weightage for each KRA

PHASE IIPerformance Monitoring and Coaching ( Mid year Review)Conduct an appraisal to track progress of performance on KRAs Identify Competencies for creating further Development Plan Discuss performance with Appraisee and seek feedback on performance If required and approved, initiate edit plan for KRAs

PHASE IIICompletion of the Appraisal ( Final review)Conduct appraisal to evaluate performance on KRAs Discuss performance with Appraisee and seek feedback on performance Finalise the actual achievement against targets Execute Recommendations.__________________________________________________________________

Phase 1 Requirements.

1. Organisation Chart.of GadGeon

Departments1. Healthcare& Bio-medical2. Wireless technology3. Embedded Systems4. Network Systems5. Home Automation 6. Operations

2. No. of Personnel Designation wise per Department.

DEPARTMENT

Project Trainee Engg.

( probation)

S/W Engg. ( 1 - 3 yrs)

Senior S/W Engg.

( 2.5 - 5 yrs)

Technical/Project Leader ( 4 - 8 yrs)

Architect/Project Manager

Sr. Architect /Sr.Project Manager /Program Manager

Director/Delivery Head/VP

1Healthcare& Bio-medical

1

2Wireless technology 1

3Embedded Systems 2

4 Network Systems 1

Busi. Devlp. Executive

Busi. Devlp. Manager

Sr. Busi. Devlp. Manager

Director/VP- Sales/MKTG

5 Home Automation 1

Admin Executive

HR Executive

Accountant

Front Office

Manager-Operations

6 Operations1 1 1 1 1

3. Selection of the Performance Appraisal method.

There are many traditional and modern methods used for appraisal. MBO and rating scale method seems the most convenient and easy method. 360 method is also good and accurate to a large extent since opinion from various group is taken, but its highly time consuming and also serves better for company with larger personnel.

Management By Objective ( MBO)

An interactive and fair form of appraisal, the Management By Objective method is less time consuming and of course cost effective. The technique involves setting up of objectives and goals for the employee either by the employer, or his manager, or both employee and employer. This performance appraisal method helps the employee to perform well because he is well aware of his goals and already knows the quality and quantity that needs to be delivered. It has been observed that when both employee and employer together decide the objectives, the probability of the individual meeting the goal is much higher. This is a fair method of evaluating because the employee knows the odds that he is measured against. It doesn’t involve giving constant feedback to the employee, because he is being constantly self introspective, thereby saving time and efforts of the employer.

Rating Scale

This performance appraisal method can be used by startups and small businesses that are scaling and are trying to set up processes in place. It is process-based and involves the organisation to set pre-determined objectives that employees are expected to meet. Individuals are then rated by their supervisors or managers. It is similar to the grading system that is usually followed in schools, but is effective and systematic. Employees are evaluated for their skills, teamwork, communication skills, precision, etc. And they are expected to meet a basic score. If they do not meet the score then they are sent for performance improvement training which would help them cope up with their shortcomings.

We could work out a combination of both these methods.

4. Setting of KRA. ( Key Result Areas) – Department Wise

• Identified out of the day to day routine activities

• Primary Job objectives or Major Goals

• Outcomes or Expectations of a Job Position

Will have to discuss with individual Dept. Heads to understand the goals of that SBU.

KRA score can be divided into 2 parts.

80% on Targets ( i.e. achievement of goals/objectives)20 % on Critical Behavioral Attributes( i.e. attitudes on Job behavior) - common for all Designations

5. Setting of KPI ( Key Performance Indicator)

KPIs are the assignment/activity/process to achieve the main goal/KRA. That is processes done on daily basis.

Every KRA could have more than 1 KPI.

Key Drivers for Critical Behavioral Attributes.

1. Planning and Organising2. Initiative3. Commitment to Quality4. Creativity and Innovation5. Interpersonal Relations6. Cost Consciousness7. Strategic Thinking8. Customer Focus9. Decision Making10. Risk Taking11. People Capability12. Analytical Ability13. Communication Skills14. Teamwork15. Achievement Orientation16. Negotiation Skills17. Knowledge of Business Environment

Key Result Areas( Targets/Objectives] for Software Developer

(KRAs can remain the same over all designations. KPIs will change according to the experience.]

1. Creativity and Innovation2. Decision making3. Problem Solving Skills4. Quality5. Adaptability to New Technology

Key Result Areas( Behaviour] for Software Developer

1. Teamwork Skills2. Interpersonal Skills3. Attitude4. Achievement Orientation

KPI Master list for S/W Developers, Sr. S/W Developers, Project Leader etc.

KRA 1 . Be responsible for the overall software engineering of the project including providing overall direction to others / partners.

1.Establish project plans including timelines and resources required for the project. 2.Monitor progress; address any issues across the project interfaces, ensuring that project deliverables and milestones are achieved.3.Engage and provide direction as necessary to others , contractors or technical experts and manage related contracts and terms of appointment according to the relevant guidelines.4.Provide regular project reports to the management5.Facilitate the ongoing assessment of commitments and regular strategic reviews .

KRA 2 ….. Develop and support the software engineering project methodology of the project1.Investigate, select, implement and maintain an appropriate software engineering project methodology across the complete project. 2.Ensure that appropriate software engineers, or consultants are engaged as required.3.Select, develop as required, plus maintain software coding standards, plus full documentation.4.Adapt software engineering industrial standards to:data collection/data analysis/security/storage/data visualization etc5.Ensure that all software engineering deliverables and milestones are achieved.

KRA 3….Manage the development , through implementing production standards, strong development processes1.Manage all aspects of the process related to the development and production of the system.2.Be responsible for implementing production procedures, including reliability testing, error handling, user interface, pilot releases, plus full documentation.3.Plan, execute, monitor and manage thorough user/usability testing and feedback .

KRA 4….Manage a team of project staff.

1.Establish a staffing strategy to deliver the specific project objectives in consultation with the management.2.Recruit and appoint project staff and technical consultants as required following appropriate procedures.3. Develop a clear project plan and communicate that with the project staff through an intensive induction process.4.Provide technical and operational guidance to the project as necessary.5.Assist staff to work through project in a prompt manner.

FEW MORE……KPIsPerform Software Development activities for Systems. Participating in the development, integration, formal release and final acceptance software deliverables.Responsible for the investigation of system and software problems .Support the integration and acceptance of the systems. Investigate and manage the resolution of problems uncovered during the Integration and formal acceptance. Participate in feasibility studies into future training solutions. Manage projects, organise information, monitor progress and meet deadlines under limited direction; and interpret and apply complex policy, procedure and practicesBuilds and maintains relationships, in particular, skills in: managing the delivery of quality client service, under limited direction; developing and maintaining productive internal and external relationships, partnerships and networks; and working as a senior team member, assisting with managing the performance of individuals.

KRA AND KPI FOR HR.

1. New Joining Formalities Preparation of Appointment letters Preparation of new joinee’s files

2. HR record maintenance & Full and Final Settlement3. Time management System

Maintaining regular attendance Preparing Monthly leave reports Sending data to account department

4. Performance management5. Employees Retention & productivity6. Compensation & Benefit reward program7. Training & Development

KRA AND KPI FOR Sales

New business acquisitionTerritory managementCustomer careLead generationLead follow up (internal and external)Account managementCustomer retentionInterpersonal skillsNegotiating skillsProduct knowledgeSales forecasting

KRA AND KPI FOR Accountant/Finance

Management informationCapital expenditureSecurityFinancial analysisCost controlInternal auditRegulatory reportingCredit controlFinancial recordsPayrollCashflow forecastingBudgetingCosting

KRA AND KPI FOR Sales/Marketing

Monitoring sales target & sales BudgetingEffective planning and execution of marketing strategy and marketing budget.Customer relationship managementMaintaining & developing effective operational effectiveness.

Target AchievementDeveloping new customersIncrease market penetration

KRA AND KPI FOR Administration, Front Office, Clerical Staff

CorrespondenceFilingRecords managementAdministrative supportInternal customer relationsEquipment maintenanceForms administrationSchedulingSupply maintenance and purchasingTelephone coverageProject supportFinally, key result areas for everyone in an organisation are:Personal developmentProfessional developmentInternal and external customer satisfactionPublic relationsCommunication - oral and writtenInterdepartmental relations

KRA AND KPI FOR Operations

Cost saving objectivesQualitySystems and PoliciesPeople managementNew Initiatives

LAST STEP : Appraiser’s Final recommendation.Promotions, Increment, Further training etc.