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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 prevent 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 towards 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.”
The focus is albeit always clear—build lasting relationship
with employees and work towards organisational goals.
Industry
experts believe that the trend of multiple assessments will continue
to increase in the near future. While the systems are expected to
become online, simpler and shorter, the focus will be more on performance
assessment than personality attributes. Significantly, present performance
is going to be the key focus area than potential performance.
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PEOPLE
