How it is done
When evaluating employee performance management system, instead of looking at features the software offers, it would be a very valuable exercise to first analyse the internal needs and requirements and keep a comprehensive requirement manual ready in hand. If an organization evaluating the system is not satisfied with the existing performance appraisal software, then it would make a lot of sense to note down the pain points as a part of the manual.
The answers to the following questions can make your manual:
How many times do appraisals take place in your organization in a year?
What would be the employee selection criteria for an appraisal?
For each appraisal, what would be the required steps?(Steps like Feedback, Approval, Recommendation, Meeting etc.)
How are competencies defined and how does it apply to each employee? (It can be based on function, designation combination etc.)
Are organization goals defined? When and how are employee goals defined? Is there an alignment needed?
What would be the rating scale for competencies and goals? How are overall scores calculated?
Having a performance management policy enables you to:
? Lead your business. There is a saying that the view from the engine room is different to the view from the bridge. You are on the bridge; you have charted your course and know precisely where you are taking the business. It is part of the leader's function to communicate that information to others so that they can see where their work fits in with achieving your business goals.
? Listen to your employees' real concerns. Employees will feel happier and perform better if there is an open two-way system for talking to their line manager, getting feedback on how they are doing, and getting help to improve and develop.
? Understand your employees and how they contribute to your business success. Performance management helps develop this understanding through regular and open interaction.
? Achieve best results. To work at their best, achieve better results, and continually improve, your employees need an ongoing system for adjusting and reviewing the way they work.