What we believe in or follow is called DYNAMIC PERFORMANCE REVIEW; a different way of managing appraisal system (an analogy can be agile methodology of software development) and gradually picking up popularity around world (especially in start ups)
Conventional appraisal system and DPR
The problem with the regular/conventional system of appraisal is
- This is periodic is nature and happen once in a year in a predefined time (for some organisation twice a year). So here if one has performed/contribute something good to company (in say month June), he/she need to wait till next March or December to get rewarded.
- There is long and tedious life cycle of conventional appraisal system.
New thing s in dynamic performance review (DPR) –
- There is no pre defined cycle for appraisal.
- One may appraise at any time and N-times in a year, also one may never apprised for a longer time.
- Everything depends on the performance, learning and value addition to the team/company.
How start-ups are doing it -
Sketch HR has customized DPR for some of its start-ups client and successfully executed it –
Based on Organisation value, we identify some key qualities (parameters) for employee, and then every month, we rate each employee (for that particular month) on these aspects.
For example, one of our client have 5 values
- Nurture culture
- Continues learning
- Never be an evil.
Now based on these 5 values, we decided 7 parameters that need to be judge, which are–
- Value addition (Qonta WOAV)
- Learning, punctuality
- Team player,
- Self motivation
Now we have data for all employees of every month – so we got a trend, based on this trend we appraise one whenever it seems the person is able to take to the next level.
Definitely finances and budget have to be considered here, and appraisal needs to be in mandate budget only.
It may sound difficult to apply, but in actual it is much easier & effective than conventional appraisal system. It is not only reasonable and transparent to employees, but also easier for middle and top management.