The document outlines six key steps for successful performance appraisal, emphasizing the importance of preparation, transparency, and fairness. It advocates for regular communication and a holistic approach to employee development, which ties performance to organizational culture. Finally, it highlights the need for a relaxed appraisal environment and the use of an automated process to enhance efficiency and acceptance.

1. SIX STEPS TO PERFORMANCE
APPRAISAL SUCCESS
P RAJAGOPAL TAMPI
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2. STEP 1: PREPARATION
Nothing is more important than preparation and performance
planning. I start the year by meticulously defining the KRAs and
KPIs of employees who report to me. “Grappling” sessions follow
where there is much discussion and arguments between
employees and myself on KPIs and how they should map to
ratings, what constitutes outcomes. It is the time to define
accurately and unambiguously all planned measures and make
them well understood.
In these planning sessions, I am fair but have the veto as well.
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3. STEP 2: TRANSPARENCY
The keys to successful employee performance management, the
avoidance of angst and bitterness is transparency and fairness.
Organizations can achieve fairness by laying down in advance
policies to resolve possible conflicts e.g. what percentage of
employees can constitute a rating of “Five”.
Benefit only accrues when these policies are effectively
communicated at the beginning of the appraisal cycle.
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4. STEP 3: FAIRNESS
Fairness is more involved and capturing relevant data from internal
systems lies at its core.
I have identified data that can be extracted from internal systems
and also data which is not available or cannot be got from
systems. In the latter case I have a plan to obtain them from
sources that are neutral and acceptable to all.
It is better not to interpret the data. However, if it is unavoidable I
keep notes throughout the year which I refer to while conducting
appraisals.
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5. STEP 4: COMMUNICATION
Good two-way communication with employees throughout the appraisal cycle is
essential. Give instant feedback rather than wait for the appraisal time to come.
This gives a chance for employee to get it right sooner. Giving employees a fair
chance is the best policy.
I can be erroneous in arriving at conclusions without incontrovertible supporting
data since there is unavoidable office politics and the decision of mine is going
to make a huge difference to my employees and their families’ lives.
Springing surprises at appraisal time speaks badly of me, not the employee
being appraised. “No surprises” means constant communication which builds a
high performance culture in the Organization.
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6. STEP 5: HOLISTIC APPROACH TO
PERFORMANCE MANAGEMENT
Performance Appraisal cannot be divorced from performance and
employee development which brings completeness and selfsufficiency into the Organizational high performance culture.
Is the employee equipped with the knowledge and tools necessary
for the job description?
Employee training and career development plans provide a holistic
approach to performance management.
They help manage the human factors and emotions which cause
angst in Organizations with a high performance culture.
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7. STEP 6: WALKING THE TALK
I do the appraisal only in a relaxed and very good frame of mind.
Linking of performance to variable pay is the expression of the high performance
culture.
Flexibility in appraisal cycles and exceptions for employees should be very rare
and even then then only for justified case-by-case approvals given by an
empowered group of senior Managers.
A simple automated process for appraisers and employees performed at regular
intervals makes appraisals acceptable to all.
Your Organization will see the reward in terms of business growth, profitability
and reputation very soon.
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8. Simple automated Performance Management
Processes available at:
www.rentanhrprocess.com
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