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March 7, 2018

Whether you work in an organization which is globally dispersed and encourage flexible working hours, or you work in an office that adhere to strict working hours, communication is a key. The ability to communicate and give real time feedback on their performance allows employees to feel valued and help them stay motivated.

Understanding a 360 Degree Performance Evaluation

A 360 Degree Performance Evaluation helps company to see the bigger picture as to how well your team members are performing and meeting their timelines and objectives. The performance evaluation also provides great insight into the company as what’s going well and what requires improvement.

It can also be used to enhance compensation planning, identify the need for more training programs, and connect performance with corporate objectives. If you’re already using PMS, you may know it’s a great tool to evaluate continuous feedback all year round. This means when appraisal time comes, you can gain a collective feedback from peers as well as how the employee has performed and track the  assigned and accomplished tasks throughout the year, rather than speculating on individual performance metrics.

What options do you have?

There has been an ongoing debate regarding  bi-annual, monthly, quarterly and annual appraisals, and whether these are the best to evaluate the performance of your employees. However, these tools have been good enough to provide continual feedback as who are the top performers within the organization.

Further, simple record keeping helps managers to keep a continuous tab of a performance history for the entire tenure of each employee – indicating a graph with the opportunity to look deeply at the trends, patterns, or one-off blips. It also helps you to boost employee morale, increase productivity and retain your top employees. From defining KRAs to goal setting, review ratings and appraisals, everything is clearly defined and set in the system. Your team can input self-ratings and share with respective managers through the system itself.

We have learnt that it’s important for organizations to access data quickly and easily related to the performance of an employee. Using a performance management tool mean the manager can count on the module to monitor performance and rest assured that they can easily cull out reports and export when required.

How do you manage your talent, and what methods do you use to manage talent and their yearly, monthly and quarterly goals? As you start researching HRM systems for the business, why not get in touch with us for your comprehensive Performance Management Software needs.

The Importance of Performance and Real-Time Feedback in the Workplace

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By HR-One Team
April 24, 2017

Year ending is a time when we all should raise a toast to celebrate our successes, learn from the mistakes, and define a roadmap for the next year!

Is it possible, to erase the performance review where nobody would evaluate anybody else? Instead of giving ranks or ratings to employees, there should be an end of year celebration for what we have achieved and a planning meeting for what is to be achieved.

Nobody likes to get a report card as we use to get in schools. Rather than providing ratings, such as above average, exceeds expectations, or needs improvements, it would be a good idea to have a positive conversation and encouraging employees in the form of gratitude for the work they have done over the past year.

During performance review discussions, an employee should be calm listener. You should listen to it all without coming to any conclusion and show that you are open to an honest feedback.

Whether you agree with what is being shared with you or can’t wait out to come out of the room when it’s over, here are few things you should not say during discussion.

  • But that is not my job description or it is not my responsibility.
  • You are evaluating me based on wrong goals.
  • I’m not paid to….
  • I need a bigger pay than what I have been offered.
  • I work harder than most of my colleagues.
  • You are wrong.
  • That mistake was not my fault.
  • I would like a transfer to a different department.
  • I think you’re being overly critical.
  • But that’s just who I am. You knew that when you hired me.
  • I quit!

Saying nothing is as bad as saying any of the above! If you feel that the feedback is unjustified then the best approach would be to say something like, “Thank-you for sharing the feedback. I need some time to consider it and maybe we can sit down again once I have studied it carefully.” Organizations, where Performance Management Systems are deployed, facilitate this line of interaction between the employee and their reviewer. In fact, if you use such software, make sure you have goal setting done and review it regularly with your reviewer, recording progress every time.

Conclusion

The extra time will help you to prepare your thoughts and put them into writing. Through a proper performance management system, you can channelize your performance review rebuttals to Human Resources.

Organizations that deploy good performance management review software can avoid the above-mentioned situations by showing the employee the review process, where it is in the pipeline and also facilitating the right kind of communication.

Don’t say these things at your Performance Review

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By HR-One Team
April 14, 2017

No one is perfect but there is always a hope to achieve the desired results.

Performance review is an activity where you (as a manager) can help analyze an employee’s contribution in the past as well as going forward irrespective of whether they are perfect, inbetweeners, or underperformers. Performance reviews are an opportunity to analyze the employee’s capabilities, accomplishments, and any development needs or recommendations. But before preparing for reviews, there is time where some managers get anxious about performance review same as employees. This worry occurs, when they are not prepared due to lack of time or lack in performance evaluation skills despite of having enough data.

Recency Bias

Most people have a tendency to focus on “what’s happened lately” while evaluating something. The same happens in the performance review discussions also. Some managers tend to get influenced by what employees have done or achieved in the recent period instead of reviewing work done in the past 12 months. Don’t you think it’s unfair for the employees?

Vague and Quick Feedback

The most challenging part of the performance appraisal discussion is to provide a detailed feedback to the employees on their performance. Managers should be prepared to give constructive feedback. Sharing the feedback without citing evidences do no justice to employees’ contribution at any level. As a manager, it is your job to analyze their performance to help them grow. Come to the point and be ready with data supporting your evaluation about their work!

Treat Performance Review as an Annual Ritual

Many managers feel comfortable in conducting annual reviews instead of investing the time in ongoing reviews. Annual reviews cover reviews of 12 months’ performance whereas regular reviews focus on providing reviews at short intervals. A manager conducting an annual review can miss a chance to discuss the problematic issues raised 10 months prior to the review, and unable to help employees understand on how to improve the performance in those areas. Whereas, with regular reviews, managers get a chance to discuss performance goals and provide feedback on time helping employee’s performance on the fly.

Cautious about Giving Negative Feedback

Some managers are scared of providing negative feedback because it might heat up the performance review discussion. As a result, they avoid having a difficult discussion and try to share all goodies with employees. It is a good practice to share the areas of improvement and while doing so, ensure that you state the areas where you felt that there was a scope of improvement.

Not a Good Listener

Not listening is one of the common errors of performance appraisals. Both the parties – manager as well as employee should be a good listener in giving and taking the performance feedback. There is a possibility that both the parties have queries and concerns that can be further clarified or justified. If as a manager, you are dominating the conversation and evaluation, the employee feels undervalued and misunderstood.

Conclusion

All the above-mentioned mistakes can be rectified, if there is a proper performance management system. A good performance management system not only helps managers to share their feedbacks on regular basis but also help employees to bring themselves up to the expectations level. A good system can help in bridging the gap between the manager and the employee!

Are you making these 5 performance review mistakes?

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By HR-One Team
April 7, 2017

Performance management is very crucial for any businesses to survive in the marketplace and be successful amongst its competitors. It helps companies in identifying, recognizing, retaining, and rewarding the top performers to achieve sustainable growth.

To gain more and as per the latest trend, many companies are replacing their traditional annual performance review with frequent periodic reviews and feedbacks. Slowly and steadily these companies are trying to change or upgrade their performance review systems with new ways.

Selecting a good performance management system itself is a challenge. How you should start looking for an automated or digitized version for your performance management process? Following are some tips that you can consider prior to opting for a performance management system.

Involve all stakeholders to gather requirements

It is very important for you to define and document what all you are looking from a new performance management system after digitization and automation. And, to achieve this goal you should include all stakeholders involved in the process, like workers, bosses, customers, etc. What are the advantages and disadvantages of the current system and what are they expecting from the new system.

After gathering all the requirements, you should design your own performance management system. It is important because when you buy software without having any knowledge about the requirements, you are definitely going to set yourself up for failure.

Human resource data and analytics

Being a central process, the performance management process consists of abundance of data about each and every employee. This data is generated at frequent intervals that can be daily, monthly or yearly. The prospective solutions should help you to not only record this data but analyze it in an effective and efficient manner.

There are other factors also to be considered, such as capabilities of adding additional data sources from any third-party application. It should be compatible as well as easily integrated with these applications (like hiring process).

Intuitive and user-friendly system

It is very critical to understand that whether the provided solution is providing a greater experience to the prospective users.

You should involve as many stakeholders as possible to understand user experience requirements at the time of defining the solution. Involving them since beginning so that it can release pressure when the system is ready for usage can be very beneficial.

The most crucial part is to study how the performance management system is going to seamlessly interact with other existing as well as prospective systems.

Challenges you might face at the time of selecting the tool

After going through the above-mentioned points, you must have understood that there is a significant amount of work to be done internally before you digitize any process in general and in particular.

There are a lot of products (on premise HRMS software as well as cloud based HRMS software) in the market and selecting a right one is crucial to your success. To make a right choice, you should ask the following questions to yourselves.

  • What is the basic necessity to the buy software?
  • How the new solution can help me in bridging up the gap between my current and new system?
  • Which solution is best suited for my business and organization size?
  • Whether the new solution is seamlessly appropriate for my current process? Or, if there is any need to update my processes to meet the requirement?

Conclusion

You should try to evaluate the various Web-based HRMS as well as cloud-based HRMS software that are available in the market based on your company process and culture. Selecting a vendor (local or global) is also one of the factors that you should keep in mind prior to buying software.

Talented business leaders or HR personnel will always clearly state their expectations from the new system, evaluate the available solutions as per their requirements, and then select a tool matching all the points described in their checklist to be successful in the market.

A Quick Guide: How to Buy a Performance Management System?

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By HR-One Team
February 17, 2017

A good performance management system works towards the betterment of the overall organization performance including employees across the vertical. It includes activities such as goal settings, regular progress reviews, and frequent communication with employees for their development programs and rewarding achievements. Vital to an organization’s success, yet complex! Isn’t it?

The performance management is defined as a process that starts with inducting a new employee into a system and ends when the employee quits the organization.

The performance management system can motivate employees and increase their productivity by:

  • Providing regular feedbacks
  • Providing learning and development programs
  • Evaluating performance in a fair and equated manner
  • Recognizing and rewarding good performance
  • Providing maximum opportunities of career growth to the deserving employees.

Who benefits from an efficient performance management system?

  • Organization: To benefit, an organization should retain its talented employees. How? Well, a good performance management system helps an HR providing regular and transparent feedback to employees. The system will surely have a feature where employees can regularly share issues and blockades to achieve their goals. The organization can see early trends of what’s impacting their employees and take corrective actions. It helps the organization towards improved productivity, clear accountability, and higher revenues.
  • Managers: Managers need to know how to keep their employees motivated. How can they do that? Performance management systems show employee feedback directly as well as organization trends. Managers can look into trends, specifics and analyze what steps to take keep employee morale and motivation high.
  • Employees: Well, employees are the ones who can benefit the most from an effective performance management system. How? The system can help in setting goals for the employees. The performance appraisals feature can easily help employees identify gaps in their skillsets.

An effective performance management system bridges the gap by providing consistent feedback and coaching.

Employees can also enroll themselves for proper training and development programs that can help them coming to the level as what is expected out of them.

Conclusion

To summarize, an effective performance management system should help producing:

  • Aligned goals guiding employees in their daily work.
  • Engaging employees by creating a culture of shared accountability helping them in career growth and development.
  • Proper transparency ensuring all employees is getting proper roadmaps, feedback and development.

Benefits of an Effective Performance Management System

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By HR-One Team
January 6, 2017

We all have gone through this many times: putting our colleagues in “average” category despite being aware of how good they’re. The Bell Curve system of performance appraisal intimidates HR managers as much as employees. For a long time this forced ranking system has remained a topic of debate, but companies still continue to use it. Why? Because in the eyes of leadership teams it rewards top performers who create most part of the value for their companies. In simple words, they continue to use it because it benefits them. But is that really the case? We try to figure out in this article.

Understanding the Curve

The Bell Curve performance appraisal system is based on the premise of Bell Curve in Statistics, which is also known as Normal Distribution Law. According to that phenomenon it assumes that in an organization there’ll be a few employees that’ll be high-performers, and a few employees that’ll be extremely low performers. Majority of employees will be in-between, the category known as average performers. The ratio of percentages adopted for low:average:high varies among companies: a majority of them adopt the ratio of 10:80:10, while a rare few adopt 10:70:20.

Bell Curve: Advantages

A major advantage of Bell Curve appraisal system is that it rewards high-performers, thus giving them more encouragement to work harder for the goals of company. On the other hand, it can also help in identifying the suitability of jobs for individual employees (if done the right way). It also helps in managing leniency of HR managers while rating employees and forces them to rate people strictly.

Another advantage of this system is that it’s easy to implement in comparison to other performance appraisal methods, thanks to HRMS software vendors who have included it traditionally in their products. If you want to implement some other method of performance appraisal, your search for Human Resource Management Software may get a bit more difficult.

All of this, as you may expect, helps companies in achieving their goals easily.

Bell Curve: Disadvantages

We just saw how Bell Curve system helps companies in achieving their goals. But how many of those goals are actually achieved because of it? It seems not a lot. Despite the advantages this system provides to a few high-performers, there’re many reasons due to which this model doesn’t do justice to the employees as well as companies. Research has suggested many times that people’s performance doesn’t follow the law of Bell Curve, which means it’s quite possible to have more high performers in your company than the percentage that you’ve allotted to the “high performers” category of your bell curve system. By forcing your HR managers to fit only a fixed number of employees in that gradient you may be discouraging the remaining high-performers (or good performers at least) who could have brought more business to your company.

Final Thoughts: Is it Relevant Anymore?

Despite the large number of companies that continue to deploy it, a few industries have already realized that this performance appraisal method is not good for them. IT is one of them: Google, Microsoft, Adobe, IBM, Infosys, Mindtree, TCS and many others have already dropped this performance appraisal system for alternatives.

So ultimately, it’s up to you to figure out how much this system is working for you. If it’s not working then you should replace it immediately for the good of your company.

Bell Curve Performance Appraisal Method: Is it Still Relevant?

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By HR-One Team
December 5, 2016

Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. According to the Wikipedia, “Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas.”

A performance management system has 3 key pillars:

  1. Goals – that an organization sets for itself and cascades it down to department and individual levels
  2. Employees – those who perform to meet those goals
  3. Rewards and recognition – tools to motivate employees towards meeting the goals

Performance Management Systems are used to measure employee / department performance towards obtaining those goals resulting in rewards and recognition.

The way goals are usually set, when an employee or a department attains them, fresh goals are set, or scales are revised. A natural conclusion is that over a period of time, as they keep attaining goals, the organization will grow, scale and prosper. Therefore, it becomes imperative to know if the Performance Management System in place is effective in helping improve performance.

The efficiency can be measured in several ways.

  1. Analyze the organization’s growth trend and correlate it to the goals set.
  2. Conduct surveys of employees about the Performance Management System and analyze the feedback to see if employees are able to effectively use the system to track and report their progress.
  3. Evaluate if the Performance Management System is effective in identifying areas of improvement. If no areas of improvement are being identified, chances are that the system is unable help identify them.
  4. Are the rewards and recognition programs being utilized effectively? If the ground report (as a result of the surveys) indicates that employees don’t feel that they are being rewarded or recognized sufficiently, the Performance Management System may need to be reconfigured or else employee morale may sag.

Analytical tools play a great role for any management to slice and dice the data to measure such aspects. However, a Performance Management System itself must allow for such data to be available so that it can be analyzed.

Conclusion

Performance Management Systems are an important tool for organizations to thrive. If these systems are at fault for stifling growth, it may be too late before it comes to notice. Therefore, using techniques such as mentioned above, organizations should periodically check the efficiency of these systems.

How to check the efficiency of your performance management system

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By HR-One Team
March 29, 2016

From excel sheets to detailed forms, a performance review encompasses what not. But how do you ensure that your process is meeting your business needs?

It’s about time for everyone to start filling appraisal forms. The HRs are busy preparing the plans and ensuring that the timelines are met. Amidst this hustle bustle what we miss is evaluating the appraisal process. Most businesses pick appraisal processes on basis of references, industry benchmarking, HR recommendations and more. However, how to do know whether it fits your business needs? Is it good enough to meet your employee expectations?

Here is a quick checklist to determine if your performance review process needs a makeover.

Is employee performance getting tracked fairly, across the board? Well, if you have not been invited to literal battle fields where people are armed with emotional rants and tears, you can live in peace. A good performance tracking measure is to ensure that KRAs are clearly defined and more importantly, accepted. When appraisals happen, you will hear grumpy sounds, but if the performance stats are clear and transparent, a lot of such noise can be handled with ease.

Do your employees know what they are expected to do? Setting expectations is not an easy task. For a fair handling of reviews, it is imperative that performance expectations and targets are pre planned and defined (clearly), as soon as a person comes on board. Having a clarity on what is expected from their role not only helps a person perform better, but also make it easier to track performance over days, months and years.

Is everyone following the rules? Even if all expectations and KRAs are well defined, you must ensure that everyone across the board, follows the rule. The onus of this lies on the management to a great extent. The managers need to lead by example and need to be supportive of their team to get and give the necessary details consistently. The flow of feedback needs to be comfortable and clear on both the sides.

Is the process sluggish and boring? Backed with lots of statistics and documents to fill, the review process is often perceived to be very boring. While there is always a lot of excitement and anticipation around appraisals, the process in itself can get very drudgery. You must ensure that the process is engaging enough for all the stake holders – using instant appreciation cards, online feedback mechanism or quirky dialogues, spice up the process of you feel it’s getting very boring.

Like you look at employee performance annually, make sure that you also evaluate the whole process from time to time and sure that the gaps get filled.

Are you evaluating your employees correctly?

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By HR-One Team
January 5, 2016

Performance management is a very tricky space as it directly has a direct impact on an employee. At times, it becomes very challenging to set, measure and review performance in a clear, simple way.

In our year end survey, 60% of the HR managers listed Performance Management as a key challenge that they faced in 2015. While, almost a same number enlisted recruitment as a key challenge too, most agreed that Performance Management was a tough task as it had huge emotional impact on employees too.

Are you doing performance management right

Performance Management as a practice, is a complex. It has multiple connotations, too many stakeholders, and at times, in tangible KPIs. This is one area where things cannot be marked as black and white always. Here are some steps that you could consider to make this process a little less complex, a little less challenging:

    1. Automate the process: This is a big change which most organizations are adapting now. Look for a suitable human resource management system which has a robust performance management module. Go for a system that is simple to use for all employees and gives instant reports.
    1. KPIs and Goals: Set the KPIs and goals clearly. The best approach is to explain stuff and set expectations in a meeting. Once goals are defined, all KPIs should be transferred to the performance management system.
    1. Plan short term. Along with long term, year-end goals, define shorter goals for employees too. Something which they can also track month on month. Let the system generate a month end report indicating progress and lack areas.
    1. Frequent reviews: Don’t leave the reviews for the last minute. Give feedback frequently so that the employee knows what is expected from him and works accordingly. Set your performance management system in such a way that it gives auto alerts to employees when they are short or their goals or are about to achieve them.
    1. Keep them informed. Share all reports with the team members clearly. Since the data is shared through a performance management system, there is complete transparency and the employee would also know what he has missed or gained. This would help in avoiding any last minute surprises.
    1. Monitor. Monitor. Monitor. Last but not the least, stay on top of the system. Make sure that all employees, and management, follows the process and shares information through the system. This is the only way to build a transparent performance management process that doesn’t hurt!

Are you doing performance management right?

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By HR-One Team
March 18, 2015

Appraisal period is one of the most anticipated and anxious phases for any company. For employees, it is the time when they get rewarded for their work through either a salary hike or a promotion, for the managers it is the time when they need to evaluate their teams accurately. Appraisals instill accountability and discipline in some sense. Though it is an important step in maintaining the overall efficiency and performance of the company, it is not an easy phase.

The managers need to assess the performance of their teams for the entire year. They should consider all the positives, keep a track of any negatives if there are any and give the appropriate appraisal to the right candidates. There may be more than two candidates who could be eligible for a promotion, it gets extremely crucial that the manager takes in account every tiny aspect of their work and promotes the more deserving candidate. Imagine keeping a track of a lot of employees and their work files of a year. There may be cases of files getting lost or someone can make the mistake of assigning a different grade to an employee who did not deserve it. Appraisals can be stressful and can be prone of unwanted and unexpected mistakes. HR-One’s HRMS ensures that this does not happen.

Importance of Appraisal and HRMS

An appraisal helps in the growth and progress of both the employees and the organization. Employee morale is boosted during appraisal and their performance can be measured accurately. It is not easy to evaluate a number of employees in a short period of time but it is possible to ease up the process of appraisals significantly with the help of best recruitment management software in India. Let us see how HRMS helps an organization in one of the most important steps.

  • It helps the manager in tracking performance accurately: There are certain guidelines and goals that are set for each employee. Some employees fall short, some accomplish their targets and some exceed the expectations. For those who accomplish and exceed their targets, they should be compensated accordingly. Likewise, appropriate action should be taken for those who fail. It is not possible for the managers to overlook all these details at every point of time. Thus, HRMS is employed to assist the managers. The performance automatically gets documented which the manager can use during the evaluations. The automated process measures the performance of individual employees but also notifies the manager when someone over-exceeds the set goals.
  • HRMS ensures that the employees awarded fairly: In the past there have been cases and accusations of favoritism and similar practices. There was no way one could verify such accusations but now, the scenario has changed for the better. HRMS, the best recruitment management software in India, is an objective program which doesn’t understand the concept of favoritism and other practices. It measures and documents every task as performed by the employee that needs to be considered during the appraisal. There won’t be any cases of the manager overlooking that or missing out if the employee slacked in certain aspects. Thus, the employees can be assured of being rewarded fairly for their work and not just because someone has gone extra miles to butter the manager to score that promotion. This ensures that appraisals are transparent and extremely fair.
  • Managing strengths and weaknesses: Every employee has his own share of strengths and weaknesses. The manager needs to assure that their teams’ strengths are honed further and appropriate measures are taken to work on the weaknesses. Keeping an eye everyone’s strengths and weaknesses can get quite taxing. HR-One’s HRMS can automate this and can track the performance of any employee in an efficient manner. It monitors their strengths and weaknesses and sends the reports to the manager who can consider the same during the appraisal process. They can design training programs to help people overcome their weaknesses. So, appraisals are also responsible for training schedules of the employees in a way.

HRMS also provides a platform for giving and receiving feedback. The managers can give objective feedback through HRMS to his/her team at regular intervals. There won’t be any cases of disparity or ambiguity since HRMS records and maintains everything. So, the appraisal gradings can be justified through the feedbacks and other comments.

Automating Appraisals Can make it more accurate & Quick

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By HR-One Team