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What’s the best way to judge employee performance? Tools and criteria used for a successful evaluation?
What’s the best way to judge employee performance? Tools and criteria used for a successful evaluation? With the advent of digitalization, workers must remain ahead of the learning curve. HR will be at the core here – it will have to personalize precise developmental pathways for workers to continue learning. The emphasis on new-age technology skills will continue. The Performance Management System (PMS) is an essential aspect of any organization that measures the employees' performance as against the vision, mission, developmental goals of an irrespective of the sector or type of an organization. The PMS is not just limited to the performance appraisal system but includes learning and development, training requirements, and enhancing communication across the organization and its bridge between employee and employer for organizational growth. In the recent times, behavioral aspect of an employee, employee performance deviations, performance measurement, psychological wellbeing, and employee training needs are taken into consideration to improve performance level of the individual as a whole included in the performance management of an organization. Today, HR is at the crossroads and at the core of ensuring business continuity and preserving the smooth operation of activities and being involved directly in business with their respective top management. COVID-19 has radically transformed the landscape of work. Performance measurement systems have undergone a significant change in vision and efficacy over the last few years. Still, the pandemic has further accelerated the process. The pandemic has contributed to a revision of priority areas for business, which has resulted in updated deliverables for employees. These priorities need to be established as soon as possible to help workers prepare their activities accordingly and, where necessary, to request assistance in time. Organizations must define goals and appraisal criteria and convey the updated perception of success to the workforce. Annual rating-based performance assessments are steadily fading away from continuous performance evaluations. Although the yearly evaluation approach is still used in most organizations, a growing number of organizations have recognized that their performance management methodology and strategies are both obsolete and inefficient. When we talk about reinventing performance management, the following are the primary measures that need to be kept in mind to approach the performance management efficiently •
A streamlined method, priorities aligned with evolving business needs, and a modern way of working protocols
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Continuing conversations between managers and staff, informal input, coaching, critical analysis, and improvement during the crisis
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Streamlined and agile goal setting with less, more dynamic targets consistent with the strategic plan and tailored to the dynamic business environment;
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Qualitative assessment of the employee achievements, contribution to business success, and development opportunities
One of the best approach to implement this would be having continuous check-ins with various stakeholder keeping in mind the OKR, i.e., Objective Key Results methodology. OKRs, the goal setting and performance management system designed by Intel's Andy Grove, seems to have become the response to the requirements set out above. Popularly used by popular tech companies such as Google, LinkedIn, Dropbox, Uber, and Twitter, OKRs are increasingly becoming the desired management framework for organizations who plan to transform and control their business categories. The goal of following the OKR approach is multifold: i) Switching from the KPIs regimented top-down structure to a system that enables workers more flexibility, allowing them to select goals and critical outcomes aligned with their core responsibility. The framework will allow workers the freedom to pick OKRs based on their monthly preferences, as compared to the annual/semi-annual KPI method. (ii) This approach also applies where the variable pay is part of the compensation. To have a measure of
competence over this part of one's income, OKR allows workers the right to monitor what they receive. Although the Smart Strategic goals performance was assessed objectively using the 360-degree Feedback Mechanism, which involves self-assessment, where the Appraiser must fill out the Self-Assessment Form, the Supervisor gathers feedback on the Appraise from a variety of colleagues who may be seniors, super seniors, subordinates and cross-functional/cross-domain peers. But they did so by anecdotal explanation and subjective behavioral appraisal, as provided by the direct Supervisor when assessing the position's impact. The methodology of the effect on position assessment is as objective as possible, intending to remove prejudice, recency error, assumptions, and prejudices. As a suggestion, I recommended that they follow the following steps: 1. Divide each job into the Talent Section or Categories. For example. Computer coding, HR processes, marketing, and distribution, etc. 2. Constitute a squad of 5-6 SMEs or Top Performers (Preferably those who have worked with the organization for a long time and were regularly promoted). 3. Ask the existing team to create a set of 5-6 success metrics in collaboration with senior managers and business managers that would be Target-based and consistent with corporate strategy. 4. A composite score of one hundred based on the performance metrics to be measured. With the score as a reference, the effect of the position can be evaluated. E.g., 70-100-High, 50-70 medium, and 30-50 medium can be assessed as low.
Because the pandemic has undoubtedly changed the way we work, employees are keener to know how they are performing & look forward to feedback more than before. In such a scenario, both ongoing feedback and goal-setting activities on 90 days allow workers to keep their goals in line with their efforts, considering the circumstances in which they work. Refining results and changing targets is just exploring the possibilities of a redesigned performance evaluation approach. To ensure successful adoption, companies must assign cultural ambassadors to lead the re-examination of performance appraisal thinking by example and strengthen adherence to the new standards to prevent any deviation or fall back on old processes and principles. Culture and reflection are a precursor to success. Although the accountability for performing work lies with the worker, providing an encouraging culture rests with the leaders and managers. Mindset is an essential part of the management of the transition. Given that a more versatile and transparent approach to performance management can run counter to age-old evaluation techniques breaking these mental roadblocks in performance assessment is one of the basics that need to be tested. While many can do their best to deliver, often the results are just not apparent enough. Employees can also make it challenging to illustrate or be outspoken about their work. Whether it's a good time or a wrong time, success needs to be recorded, and input needs to be offered. All deserve to learn how they did in a particular duration of time. The concern is, how different is it? Here's how organizations can drive strategic success using a "special recipe" called strategic performance analysis, which involves collecting, arranging, evaluating, analyzing, and analyzing data. The purpose is to determine how well you handle the process, which is, by the way, a series of assumptions that if they do any of those things, they will accomplish what they set out to do. Understanding whether or not the theory is working early in the year can allow you to fine-tune your strategy. As per this strategy, Employees will not be assessed solely by their functional roles. The story is different at the moment due to the highly volatile situation we are in. Not all functions have the same job tasks as before, and most have far less workload than they'd have on a regular working day. When assessing efficiency, confidence and transparency would be integrated by newfound value organizations. There needs to be a significant difference between a person and a professional approach. Managers need to be tactful, knowledgably and understand the psychology of his employees to help his/her team through the challenging times. The manager may be compassionate and emotionally intelligent to his employees. Still, he will also have to take strong measures that may not be in the employees' interest. Values like collaboration will become even more crucial as physical interaction declines when it comes to measuring the performance of the employees. Trust will become key to collaboration, and employees would have to strive towards creating a mutual trust. The pandemic has reinvented how leaders and workers think about their careers. The task of HR professionals in the future will be to establish a robust, stable, remote work culture that captures every aspect of the hiring cycle. Compassion and sympathy are going to play a vital role throughout. Employees will not just be now evaluated based on their technical intelligence but also based on their emotional intelligence.
Established conditions also offer companies an incentive to tap into rebalancing incentives more in line with the changing needs of workers. Integrating their compensation with what workers need in the current scenario Leaders need to concentrate their skills on rethinking the performance management strategy while using resources to accelerate the method. We must introduce a Continuous Performance Platform to assist our Daily Performance & Development (EPD) Dialogue, help managers and colleagues remain linked, gather feedback, and demonstrate their accomplishments throughout the year. Success in the present situation would also need to be guided by a collaboration between employers and workers, each of whom will have to step up for the other and make this change a challenge. This will lead to a brighter future for both the workplace and the workforce. Name- Sneha Kamath, College-XAHR
WHAT’S THE BEST WAY TO JUDGE EMPLOYEE PERFORMANCE? TOOLS AND CRITERIA USED FOR A SUCCESSFUL EVALUATION Employee’s Performance assessment is a vital factor in rousing your workers, improving the nature of work, and keeping them spurred. It’s not only the best channel to see how your representatives are performing, yet in addition a convincing measure to get input about how your business is working, regardless of whether the representatives are working emphatically towards accomplishing your objectives, and how you can deal with improve worker commitment. It additionally gives an establishment to deciding augmentations and progression plans for workers and their turn of events. • •
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While every business' representative assessment contains components that are explicit to the business and expected set of responsibilities, there are some all-encompassing criteria; HR should use in worker performance evaluations. These criteria’s are: Nature of Work: One of the main measures for making a decision about a worker's presentation is the general nature of work, as per Workforce. How is the representative's exhibition on an everyday premise? Nature of work is an umbrella class that may incorporate viewpoints, for example, collaboration, relational abilities and profitability. It might likewise remember subtleties for the worker's objectives. You can assess this classification overall and give explicit estimations to the models this classification contains. While assessing the nature of work, consider both the higher perspective and little subtleties. Give models in your assessment, for example, the amount of the organization focus on the worker has accomplished. Additionally, incorporate explicit insights about a task where the worker progressed nicely or a gathering that required improvement. Objectives and Target Achievement: Your measures for making a decision about worker execution ought to incorporate quantitative components, for example, their objectives and target accomplishment. While a very remarkable exhibition examination is subjective and emotional, the objectives and accomplishment component is level headed and quantifiable in clear numbers. For instance, if your salesman has an objective to close 25 new records each quarter and just closes seven, you can see that there is an issue with accomplishing the objective. It’s important to remember the hard numbers for the presentation assessment, yet in addition consider the setting encompassing those numbers. Are there any outer or wild factors that have influenced what amount of the objective your representative has accomplished? For instance, an adjustment in client needs could be the reason the representative had the option to close just nine new records, rather than the normal 20. Level of Productivity: The degree of efficiency worker assessment measures is significant in light of the fact that it sees representative yield over a particular period, as indicated by Workable. For your business to be effective, you need a proficient and profitable group that
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is quick and light-footed. In the event that a portion of your colleagues accept twice the length others to finish basic errands, you may wind up passing up significant deals openings. Consider what your industry normal for explicit assignments or obligations is for the expected set of responsibilities you're assessing and perceive how your workers analyze. Remember the nature of work while checking on efficiency, since it doesn't make a difference how quick somebody functions if the work should be revamped because of horrible showing. Activity and Motivation: Successful employees need to propel themselves to make a move without waiting be told by their administrator or partners. On the off chance that representatives need outer inspiration to finish their undertakings, chiefs may micromanage or invest an excess of energy helping their workers complete their work. Representatives with activity can perceive what should be done and complete errands without trusting that the chief will poke them. It’s very important to give your workers an illustration of a period where they stepped up to the plate and complete their undertakings. On the off chance that they blew away their expected set of responsibilities, this is another illustration of stepping up. On the off chance that the representative needs activity and isn't persuaded to finish assignments, clarify how this influences the presentation of the business all in all. Collaboration and Leadership Skills: Whether or not a representative has an administrative role, initiative abilities are significant. In accordance with administration, representatives likewise should have the option to work successfully with their associates. In your presentation evaluation, cover how well the worker exhibits initiative during undertakings or gatherings. Is it accurate to say that they are acceptable at assuming responsibility and keeping their group on target? Do they urge other colleagues to prevail by motivating them? Also, notice whether the worker assists colleagues by offering direction or addressing questions. The Evaluation Forms site exhorts that a decent pioneer is receptive by everybody to talk about issues a lot. It's additionally imperative to impart trust in colleagues by giving positive criticism and support to others where conceivable. Capacity to Problem Solve: Regardless of the sort of occupation your employee has, having the option to tackle issues adequately is fundamental. Employees need to realize what to do in a troublesome circumstance without asking a director or senior worker. Guarantee that representatives have the preparation and assets they need to take care of issues in their jobs. In your worker assessments, talk about how well they respond to unpleasant circumstances. Example: Does the worker realize what to do if there is a deficient item? Do they realize how to determine a client debate? If not, give steps that your representative can take in the examination to show what successful critical thinking resembles. Composed and Verbal Communication Skills: Performance assessment standards ought to incorporate the worker's capacity to speak with supervisors, collaborators, clients, accomplices and different partners. Example: Is the representative ready to be straightforward with colleagues without being forceful? Do they realize how to give input
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while being heartfelt? Listening is additionally a significant piece of powerful correspondence. How well does the representative tune in to authority's headings and finish them? While having a discussion with a business partner, do they focus on the subtleties or would they say they are simply holding on to state what they need to share?
The various techniques and tools for successful performance evaluation are as follows: •
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Management by Objectives (MBO): To guarantee achievement, the MBO cycle should be implanted in the hierarchical wide objective setting and examination measure. By joining MBO into the presentation the board cycle, organizations can improve employee’s responsibility, intensify chances for objective achievement, and empower workers to think modernly. It's ideal for estimating the quantitative and subjective yield of senior administration like administrators, chiefs, and leader (business of any size). Example: Retail monster Walmart, utilizes a broad MBO participatory way to deal with deal with the exhibition of its top, center, and first-line administrators and has been very successful. Peer Review: The cycle comprises of taking unknown inputs from partners, colleagues, and companions on explicit parts of a representative's presentation. It gives an exceptional chance to examine the representative abilities and capacities and help recognize person's organizing, initiative, word related, and cooperation abilities inside an association. Given the unpredictable idea of working connections, this cycle gives an interesting opportunity to distinguish every representative's qualities and shortcomings, and utilize this significant information to settle on choices with respect to progression arranging, building groups, and occupation turns. Self Evaluation: Self-assessment is an indispensable action to help make your examination cycle more proficient. At the point when done appropriately, it can give a few key contributions to the association. This technique offers an opportunity for workers to assume a functioning part in their assessment cycle. Along these lines, as opposed to just being the collector of the administration's input, the workers are given a voice. This gives an immediate connection between their positions and the assessment cycle and cultivates better correspondence among staff and the board. With dynamic interest, representatives can encounter better commitment with the general audit measure, while chiefs can more readily comprehend the person's exhibition just as their impression of their presentation. At the point when the self-assessment is created as a vital piece of the survey cycle, it urges workers to routinely assess themselves over time prompting a most extreme accomplishment of the organization's objectives.
Quantitative Evaluation: Quantitative assessment depends on insights and utilizations different norms to follow profitability. The cycle starts with the definition of organization guidelines against which worker's information can be estimated. It is basic to format principles in clear and exact terms without vagueness, leaving zero chance for error. A portion of the quantitative principles against which the employee's' exhibition can be looked at are cost norms, time guidelines, pay principles, ROI, profitability, and piece of the pie principles. The information can be utilized to assess an organization's objectives and furthermore give an establishment to granting advancement or raises. Furthermore, you can likewise utilize the information to legitimize the end of any staff part for helpless work execution.
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Qualitative Evaluation: Qualitative assessment goes inseparably with quantitative assessment. While the quantitative assessment model is factual, or figures-based, it doesn't give a full image of the representative's presentation. A subjective assessment centers around the exhibition territories that can be outwardly noticed, yet not estimated in numbers like cooperation, relational abilities, and truancy. The subjective assessment should be set up by noticing the worker during the workday, long-structure data remarks on their work conduct. It should remember remarks for their day by day obstructions and difficulties, their day by day work propensities, and occupation victories. Together, the subjective and quantitative assessment types will give a total image of the representative's "at work" execution. 360 Degree Feedback: It is more appropriate for Private associations than public area associations as companion audits at public area associations are more lenient. This technique gives an opportunity to all workers to present their perspectives and contribute towards the business objective. Under this framework, a worker is appraised by his/her subordinates, bosses, peers, and even customers and clients. As a worker is assessed from all the sides it is called '360-degree criticism'. Under this strategy, a poll is readied which contains angles, for example, collaboration, administration characteristics, objective direction, inspiration level, versatility, and so on and the significant individual is approached to fill this survey. The input encourages representatives to acquire knowledge on how different workers see their work and propels them to endeavor to understand the organization's goals. Example: Top private associations as Sainsbury RBS, and G4S are utilizing 360-degree, multi-rater execution criticism to gauge worker execution. Competency on a scale: Under this strategy, the person's exhibition in different zones of occupation obligations should be evaluated on a scale. A wide scope of rules, including efficiency, client care, collaboration, nature of work, worry for wellbeing, and so on are assessed. This technique can be refined with letters or numbers and it as a rule comprises of a reach, moving from inadmissible to extraordinary. This strategy likewise permits managers to at the same time assess many employees effectively. Continuous Feedback: Continuous input, fundamentally, is a technique for progressing criticism. It is intended to replace the yearly exhibition audit. It is likewise vital for note that ceaseless criticism isn't just continuous input. It is an assessment approach drives the cycle towards significant advances and improvement goals. It's anything but a structure filling exercise that centers on review evaluations, it is the everyday commitment among directors and subordinates. The main advantage is that it permits group pioneers or directors to intercede fortuitously when a representative is failing to meet expectations. This keeps a negative circumstance from spiraling crazy. Furthermore, it will turn a negative into a positive; accordingly, driving beneficial development and advancement.
In the end, it can be concluded that all these methods and techniques mentioned above will play an important role in effectively judging and evaluating the employee’s performance.
Name- Ankur Sharma, College- SIIB Pune
What’s the best way to judge employee performance? Tools and criteria used for a successful evaluation “What gets measured, gets counted, what gets counted gets acted upon.” Evaluating employees in a firm, helps the management and the employees in measuring their achievements against the goals set in the beginning of the year. It is an analysis of the strengths and weaknesses of the employee, what he/ she has made of the opportunities offered to him/ her in the firm. They key thing to remember here is that the employee evaluation is a dialogue. The employee must feel free to express and discuss any reservations he\she has or the challenges he/she faced and how they were overcome. Key benefits of employee evaluation are as under –
Career development
Training
Benefits of evaluaiton
Motivation
Organizational planning
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Career development - Performance appraisal helps in measuring the progress made by the assesse (typically the employee) over a given period of time (six or twelve months, as the assessment period maybe) against the goals (i.e. set performance standards) specified in the beginning of the year. Performance assessment helps in analyzing the strengths and weaknesses of employees and also gives a picture of the skills acquired during the year, new projects undertaken, etc. Based on the achievements, employees can be promoted to higher levels by giving them additional responsibility, or asked to undergo training in order to hone skills in the weak spots identified. Compensation arrangements can be tailored by taking merit and performance throughout the year into consideration.
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Organizational planning - It is important for the HR vertical to layout staffing and hiring plans based on the current qualifications and aspirations for the staff and the level of training. For example, if a manufacturing company is planning to setup a new unit in a different geography, various relocation decisions need to bet taken and the manpower planning has to be done well before the plant becomes functional. Evaluating current employees, provides a clear picture about the level of skill that is at hand in the current organization and helps in moving skilled employees across functions to the most suitable functions, if they so desire.
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Motivation –Training programs for grooming for leadership roles, merit based bonuses and compensation arrangements, promotions help in improving the team morale and the level of motivation. When high achievers in a team are awarded, it sets an example for others in the team to seek new goals and challenges. It creates a dynamic atmosphere in the team and helps them reach their full potential.
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Training – Timely evaluation is an effective tool to gauge employees who need training. More times than not, the ones who need training and reskilling may not be the new joinees in the team, but the managers. Timely assessment can help identify and bridge training needs, leading to a productive work culture.
Various methods in practice for performance assessment There are various methods in practice for employee assessment. In some organizations, a combination of two methods is used to ensure effective evaluation. The following table shows a bird’s Eye View of various performance management methodologies currently in practice.
Key Features Management Measuring performance to • by Objectives previously stated objectives (MBO) •
Pros Improved teamwork and communication Goals aligned employees with their strengths, skills & educational experiences
360 degree Seeking feedback about an • feedback employee from all directions -managers, • coworkers, and direct reports
Offers constructive • feedback Reveals specific development areas •
Assessment Centre Method
Social-simulation exercises • that ensure success in a role •
Behaviorally Anchored Rating Scale (BARS)
Compares individual’s • performance against best practices tied to numerical ratings
Psychological Appraisals
• Focuses on analyzing an • employee’s future performance rather than their past work •
HumanResource (Cost) Accounting Method
Compares the cost of retaining an employee and the monetary benefits yielded to the company
Cons Cannot be used for measuring goals that do not fit under MBO e.g. practicing ethical behaviour
Intensive process requires data collection from many sources Inexperienced raters/ groups may render process less effective
Enhance employee’s Time and cost intensive knowledge, boost thought process, and improve efficiency Tailored to fit different roles
Reliable as the appraisals remain the same even when different raters rate them Increase reliability Measurable, objective data about employee’s potential Offer introverted employees a platform and prove their potential
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Process of creating BARS is time and cost intensive High maintenance
Quality of results depends on the psychologist Complex and costly process
Effectively measure the High-dependency on the cost and value that an cost and benefit analysis employee brings to the organization
Management by Objectives (MBO) This concept was introduced by Mr. Peter Drucker , wherein he set forth principles for MBO. In this exercise, a mission and vision which is defined for the company, is translated into organizational objectives, or milestones which can be achieved by employees. The goals can be set using he SMART principles (Specific, Measurable, Achievable, Realistic, and Time-Sensitive). These goals are set by employees in consultation with their managers so that expectations are set up front and the employees know what is expected of them. At the end of pre decided review period (quarterly/biannual/annual), the goals are compared against achievements, and performance is evaluated. This process leads to improved communication at the time of goal setting between the managers and the team as each team member is aware of the expectations upfront and any clarification can be sought at the time of goal setting. This method focuses on the targets, which are defined quantitatively, often ignoring other aspects of evaluation such as work ethos, upholding company culture, etc. 360 degree feedback In this method, the effectiveness of an employee is assessed, by reviews (often anonymously) from his peers, managers, team member and customers (if applicable). The feedback is collected in the form of a questionnaire wherein the participants are asked to rate the employee’s effectiveness in the workplace on a pre-determined scale. This method gives a window to the employee himself, and areas of development are identified. Though this method helps the employee to identify key areas for professional growth and development, feedback from inexperienced raters and groups may render this method less effective. Also, distributing, collecting and compiling of results for organizations having many employees may become a tedious and time consuming process. Assessment Centre Method This method was used in the 1930s by the German Army, this process entails running social simulation exercises which are critical to the success of the job. The biggest advantage of these simulations is that they can be tailored to fit any job requirement and offer a window to peek into the personality of the employee. The simulation exercises seek to improve employee’s knowledge, boost thought process and improve efficiency. A drawback of this method is that because of the multitude of scenarios that can be played out, the process requires significant investment in terms of time and cost. Behaviorally Anchored Rating Scale (BARS) The BARS process compares employee performance or specific behavior to best practices tied to numerical ratings. This method eliminates the rater’s bias and standardizes the process of rating as the best practices remain the same for every assessment. A drawback of this method is that the process of creating and implementing BARS can be time consuming. Each BARS needs be created from scratch for every position in the company. Inspite of this rigorous approach, the listed behaviours may not include qualitative actions to be taken by the employee, resulting in confusion for the raters.
Psychological Appraisals This method focuses on analyzing an employee’s future performance rather than their past work. Companies employ psychologists to conduct a battery of tests to assess the employee effectively. The outcome of the process is a measurable, objective data about employee’s potential and provide introverted employees a platform and prove their potential. However, the competency professionals and the tests chosen for the assessment can alter the efficiency of the process.
Human-Resource (Cost) Accounting Method This approach compares the cost of retaining an employee and the monetary benefits yielded to the company. This approach helps to identify the financial implications that an employee’s performance has on the organization. This method is crucial for small businesses or startup organizations where the performance of a single employee can make or mar the organization.
Hybrid Model Each of the above evaluation techniques can be used for a specific type of job requirements. Hence, while selecting a model it is important for the organization to decide the critical aspects of the job that are to be monitored and assign weights. Often, a single method of performance evaluation might not be useful for all employees in the organization. For example, in retail stores such as D-mart, MBO method maybe used for line managers and workers and a 360 degree feedback approach can be used for the senior management.
Performance management in COVID-19 The COVID-19 pandemic has forced everyone, professionally and personally to evaluate strategies like never before. The pandemic, which brought to word to its knees has highlighted the need for agile response to the uncertainty in the business environment. Many teams worked in sync from homes and ensured continuity of work. Few companies like Facebook, announced that they it would be giving all 45,000 employees rating of exceeds expectations, while on the other hand, some companies deferred the performance appraisal process altogether. There were some departments of various companies, stuck in a lopsided environment in which few departments were short staffed, while employees of other departments were sitting idle with little or no work. Such events created an atmosphere of panic or fear in organizations as to what process would be followed for the appraisals going forward.
Communication is key In times like these, it is important from the management to ensure that a steady flow of communication is maintained from the top all the way through bottom. It is important to assuage concerns of employees w.r.t. increment, compensation, evaluation, etc. It is only in a company where employees fell heard and valued, is the contribution to shared goals highest.
Name- Ajita Ranade, College- JBIMS