Performance is crude

Performance is crude and devoid of emotion. You have targets to be fulfilled. No excuse is allowed. Either do or die. Target will be stretched as situation demands. Otherwise the Company will be out of the competition and unemployment will increase in the country consequential to other social issues. Company must create a culture of tough performance where if you can survive, survive or go out of the system. Employee satisfaction index must be calculated but side by side nobody can sustain without performance for long. Performers need challenges and he or she who can take challenges can only survive in a Company to satisfy the customer and out beat the competitors. Performance management system is robust now a days. Targets are fixed at the beginning of the financial year in four perspectives like Financial, Customer, Process and People. All four are important and weightage varies from function to function. Obviously the Finance personnel will be given more weightage to Financial perspective, Quality people will be given more weightage to Customer perspective, Operations will be given more weightage to process and the HR personnel will be given more weightage to people perspective. But in all functions all these perspectives must be present, weightage may be low. Key Performance Indicators must not be more than 10. Ideally it should be 7 to 10. Weightage should be from 5 to 30. Less than 5 means it is not key and more than 30 weightage signifies skewed distribution. Performance review must be occurred in every quarter. Year end score will be attached to performance appraisal system and accordingly annual increment or promotion should be given. It should be totally transparent and unbiased and system driven. It is data based and individual does not have any role to play. HR will only coordinate. That's all. Normalization will be done by HR & CEO along with all the HODs. Self score must be given where employee will be given chance to justify his score and that must be evidence and data based. Ideally bell curve should be followed function wise and company as a whole. Some of the KPIs like EBIDTA target, mentoring target, productivity target should be given to all employees. Behavioral competence must be measured and a portion of total score must be the behavioral competence score. It may be 80 20, 80 for functional score and 20 for behavioral score. It varies from Company to Company based on culture and ethics of the Company. The Mission and Vision of the Company must be reflected in the performance management system. It is a dynamic process. Weigtage and KPIs may change as per Business needs. And CEO can decide this. Rather than making it a annual activity, it should be a continuous feedback process and critical incidents must be recorded in a proper system. Individual diary may be maintained or HR can maintain a data base. If the Company does not earn any profit, no increment should be given to anyone. It is a profit sharing mechanism. So question of increment in salary is applicable only in case of profit. As simple as that.