A start up has its focus purely on business, as that is the need of the hour; however as the business grows other there are other areas that start seeking more attention. One of these is managing the work force.
In the initial stages, when the work force is small, keeping the employee motivated and engaged is far easier a job than when the numbers are large. It is then when HR practices need to be implemented to complement t he scale up.
One of the often ignored, but vital practices is that of managing performance. Yes, as an organization grows it becomes important to “manage” its performance. In a small group feedback becomes a default; such might not be the case in a larger setup.
More over in a small organization, time taken for mistakes (performance goof ups) to have effects is far lesser than in larger organizations, hence the need to create periodic checks (appraisals) to avoid unpleasant surprises.
Why have performance management systems?
• Alignment of Business and Individual Goals
• Distinguish between good and bad performance.
• Better motivate and retain top performers
• Create a more engaged workforce
The importance of the performance managements is kind of given in today’s scenario. Therefore this article will focus on how to ensure that you don’t go worn with this critical process.
This is because though critical, yet having “wrong” practice can be more fatal than not having one. This often happens as smaller organizations try to capture the performance management systems of market leaders (read: much larger manpower and at a different stage in the organization life cycle.)
The check list while implementing performance management system
• Business Aligned
o The performance management system must complement the business nuances. The appraisal process should not become a hindrance to the normal way of working. The performance parameters/grades should make sense in the business context.
• Organization Culture Aligned
o Every organization has a culture that is unique to its self. It is very critical that a performance management system is not contradictory to this culture. As in that case it is bound to cause unrest. If the organization is one that values individual opinions then the appraisal system should not curb it. On the other hand if the organization practices an autocratic culture then too much freedom in the processes will lead to unwanted confusion.
• Its maturity should match the business’s and work force’s maturity
o Organizations vary in the stage in the organizations life cycle. It is elementary that the process & system matches the same. Appraisal processes are characteristically against human nature. Giving or receiving feedback, tends to put the parties involved in the “awkward zone” and hence it is necessary that the appraisal system caters to this fact.
• User Friendly
o The appraisal system (pen-paper/online) should aim at making the process simple and not complicated. Often this simplicity is seen from the logistical or organizational perspective; however the correct point of view is that of the user. There should be a clear distinction between “need to have” and “good to have” and that start should be made with the former.
• Process, not Compliance Focused
o When an organization decides to move towards a formal performance management system it is vital that the ethos of processes remains as a way to improve performance through constructive feedback. Performance Management systems fail, when they drift from this towards being a mere process compliance. Also with time the process fall victim to the organizational realities. It requires a conscious effort to ensure that this does not happen.
Pre-Requisites for a performance management system:
Before creating a performance management system there are certain “must haves”. Without these there is a high possibility that process becomes an addition to the task list, while adding noting to the benefit column. These are:
• Job Descriptions
o It is mandatory to have clearly documented key result areas of every role in the organization. This will form the basis of all assessments in the future, and making a mistake here could see a negative fall out to the system.
• Induction to the process
o As mentioned earlier the process of giving and taking feedback does not come naturally to people. People are not comfortable judged or adjudged. Hence the process of introduction of a performance management system has to be very smooth. There should be elaborate yet simplified communication of the same to each take holder. One should remember that getting it correct is more important that just getting it.
• Management Buy in:
o When we say management buy in, it does not refer to their being “ok” and approving the process. They need to practice it in the same way as it is designed. This is one most important clog in ensuring that the performance management system delivers on its expectations.
If the above points are kept in mind and proper efforts are taken while introducing the process, the organization will start seeing the benefits with 8-12 months of introduction.
Sajiri Utturkar & Monimoy Sengupta:
Founder Members of Connect10.
The team has hands on experience of handling various HR processes viz. Learning & Development, Performance Management, Recognition, Assessments and others before deciding to take the entrepreneurial route.
The organization’s focus area is organizational development.
