How do you convert your employee performance appraisal system to Development management system

Most companies do performance appraisals once a year and use a performance appraisal software for streamlining the process (self evaluation, 360 degree feedback, manager’s feedback & rating, recommendation, etc.).  Due to the volume of the work and stress associated with this process, the process stops with the salary revisions.  Ideally, the HRs and managers should extend this process to identify the training needs, strengths & weaknesses of the people/organization, people development needs and put a clear roadmap for addressing them.

When the feedback obtained is used to address the ways to improve the performance and capabilities of individuals, the system starts moving towards the development management system.  If you conduct the formal feedback periodically (eg. Every quarter or month), it is a lot more easier to obtain/provide feedback to the team members.  Managers need not hold on to providing appreciations or weaknesses for yearly appraisals.

And, best is to move onto continuous feedback and provide them then and there.  When this process is done on a regular and close intervals, the performance appraisal system starts to become a Development Management System.  Continuous mapping of performance, competencies and aspirations clubbed with actions are the key.  Following are the steps:

– Empower the managers to do the feedback cycles minimally, every quarter.
– Managers should provide feedback to their team members, review the status of goals accomplished, listen to the team member’s feedback and derive specific action items.  These action items could be sending the team member for any specific training, equipping the team member with necessary skill sets, etc..
– Department manager should be able to collate the feedback across all the people and make sure that the action items are in place & acted upon.
– Maintain the scores in each cycle and use these cycle and finding should be used in annual performance appraisal.  (theoretically, annual performance appraisal score should be just an average of the scores obtained during monthly/quarterly feedback cycles).

By doing the above, the amount of stress is reduced respectively during the appraisal process.  And, this process will really help managers, HRs and employees as they really see true value of doing the above.  That is when “Pay for Performance” comes.