PERFORMANCE APPRAISAL SYSTEM OVERVIEW

The performance appraisal process can be divided into three phases:

PHASE I

Performance Planning, Communication of Performance

Expectations/Requirements and Goals/Projects
Identify appropriate KRAs from functional KRA Master
Set Key Performance indicators for each KRA
Assign a weightage for each KRA
PHASE II
Performance Monitoring and Coaching ( Mid year Review)
Conduct an appraisal to track progress of performance on KRAs
Identify Competencies for creating further Development Plan
Discuss performance with Appraisee and seek feedback on performance
If required and approved, initiate edit plan for KRAs
PHASE III
Completion of the Appraisal ( Final review)
Conduct appraisal to evaluate performance on KRAs
Discuss performance with Appraisee and seek feedback on
performance
Finalise the actual achievement against targets
Execute Recommendations.
__________________________________________________________________

Phase 1 Requirements.
1. Organisation Chart.of GadGeon
Departments
1. Healthcare& Bio-medical
2. Wireless technology
3. Embedded Systems
4. Network Systems
5. Home Automation
6. Operations
2. No. of Personnel Designation wise per Department.

DEPARTMENT

Project
Traine
e
Engg.
( prob
ation)

S/W
Engg.
(1-3
yrs)

Senior
S/W
Engg.
( 2.5 - 5
yrs)

Techni
cal/Pro
ject
Leader
(4-8
yrs)

Archite
ct/Proj
ect
Manag
er

Sr.
Architect /
Sr.Project
Manager /
Program
Manager

Director/
Delivery Hea

Healthcare&
1 Bio-medical
Wireless
2 technology
Embedded
3 Systems

Network
4 Systems

1
2

Busi.
Devlp.
Execut
ive

Busi.
Devlp.
Manag
er

Sr.
Busi.
Devlp.
Manag
er

Home
5 Automation

Direct
or/VPSales/
MKTG
1

Admin
Execut
ive

HR
Accoun
Execut tant
ive

Front
Office

Manag
erOperati
ons

6 Operations

3. Selection of the Performance Appraisal method.

There are many traditional and modern methods used for appraisal. MBO
and rating scale method seems the most convenient and easy method. 360
method is also good and accurate to a large extent since opinion from
various group is taken, but its highly time consuming and also serves better
for company with larger personnel.
Management By Objective ( MBO)
An interactive and fair form of appraisal, the Management By Objective method is
less time consuming and of course cost effective. The technique involves setting up
of objectives and goals for the employee either by the employer, or his manager, or
both employee and employer. This performance appraisal method helps the
employee to perform well because he is well aware of his goals and already knows
the quality and quantity that needs to be delivered. It has been observed that when
both employee and employer together decide the objectives, the probability of the
individual meeting the goal is much higher. This is a fair method of evaluating
because the employee knows the odds that he is measured against. It doesnt
involve giving constant feedback to the employee, because he is being constantly
self introspective, thereby saving time and efforts of the employer.
Rating Scale
This performance appraisal method can be used by startups and small businesses
that are scaling and are trying to set up processes in place. It is process-based and
involves the organisation to set pre-determined objectives that employees are
expected to meet. Individuals are then rated by their supervisors or managers. It is
similar to the grading system that is usually followed in schools, but is effective
and systematic. Employees are evaluated for their skills, teamwork,
communication skills, precision, etc. And they are expected to meet a basic score.
If they do not meet the score then they are sent for performance improvement
training which would help them cope up with their shortcomings.
We could work out a combination of both these methods.

4. Setting of KRA. ( Key Result Areas) Department Wise

Identified out of the day to day routine activities

Primary Job objectives or Major Goals

Outcomes or Expectations of a Job Position

Will have to discuss with individual Dept. Heads to understand the goals of that
SBU.
KRA score can be divided into 2 parts.

80% on Targets ( i.e. achievement of goals/objectives)

20 % on Critical Behavioral Attributes( i.e. attitudes on Job
behavior) - common for all Designations
5. Setting of KPI ( Key Performance Indicator)
KPIs are the assignment/activity/process to achieve the main goal/KRA. That is
processes done on daily basis.
Every KRA could have more than 1 KPI.

Key Drivers for Critical Behavioral Attributes.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Planning and Organising

Initiative
Commitment to Quality
Creativity and Innovation
Interpersonal Relations
Cost Consciousness
Strategic Thinking
Customer Focus
Decision Making
Risk Taking
People Capability
Analytical Ability
Communication Skills
Teamwork

15.
16.
17.

Achievement Orientation
Negotiation Skills
Knowledge of Business Environment

Key Result Areas( Targets/Objectives] for Software Developer

(KRAs can remain the same over all designations. KPIs will change
according to the experience.]
1. Creativity and Innovation
2. Decision making
3. Problem Solving Skills
4. Quality
5. Adaptability to New Technology

Key Result Areas( Behaviour] for Software Developer

1.
2.
3.
4.

Teamwork Skills
Interpersonal Skills
Attitude
Achievement Orientation

KPI Master list for S/W Developers, Sr. S/W Developers, Project Leader etc.
KRA 1 . Be responsible for the overall software
engineering of the project including providing overall
direction to others / partners.
1.Establish project plans including timelines and resources
required for the project.
2.Monitor progress; address any issues across the project
interfaces, ensuring that project deliverables and milestones are
achieved.
3.Engage and provide direction as necessary to others ,
contractors or technical experts and manage related contracts
and terms of appointment according to the relevant guidelines.

4.Provide regular project reports to the management

5.Facilitate the ongoing assessment of commitments and regular
strategic reviews .
KRA 2 .. Develop and support the software engineering
project methodology of the project
1.Investigate, select, implement and maintain an appropriate
software engineering project methodology across the complete
project.
2.Ensure that appropriate software engineers, or consultants are
engaged as required.
3.Select, develop as required, plus maintain software coding
standards, plus full documentation.
4.Adapt software engineering industrial standards to:data
collection/data analysis/security/
storage/data visualization etc
5.Ensure that all software engineering deliverables and
milestones are achieved.
KRA 3.Manage the development , through implementing
production standards, strong development processes
1.Manage all aspects of the process related to the development
and production of the system.
2.Be responsible for implementing production procedures,
including reliability testing, error handling, user interface, pilot
releases, plus full documentation.
3.Plan, execute, monitor and manage thorough user/usability
testing and feedback .
KRA 4.Manage a team of project staff.
1.Establish a staffing strategy to deliver the specific project
objectives in consultation with the management.
2.Recruit and appoint project staff and technical consultants as
required following appropriate procedures.

3. Develop a clear project plan and communicate that with the

project staff through an intensive induction process.
4.Provide technical and operational guidance to the project as
necessary.
5.Assist staff to work through project in a prompt manner.
FEW MOREKPIs
Perform Software Development activities for Systems.
Participating in the development, integration, formal release and
final acceptance software deliverables.
Responsible for the investigation of system and software
problems .
Support the integration and acceptance of the systems.
Investigate and manage the resolution of problems uncovered
during the Integration and formal acceptance.
Participate in feasibility studies into future training solutions.
Manage projects, organise information, monitor progress and
meet deadlines under limited direction; and interpret and apply
complex policy, procedure and practices
Builds and maintains relationships, in particular, skills in:
managing the delivery of quality client service, under limited
direction; developing and maintaining productive internal and
external relationships, partnerships and networks; and working
as a senior team member, assisting with managing the
performance of individuals.
KRA AND KPI FOR HR.
1. New Joining Formalities
Preparation of Appointment letters
Preparation of new joinees files
2. HR record maintenance & Full and Final Settlement
3. Time management System
Maintaining regular attendance
Preparing Monthly leave reports
Sending data to account department
4. Performance management

5. Employees Retention & productivity

6. Compensation & Benefit reward program
7. Training & Development

KRA AND KPI FOR Sales

New business acquisition
Territory management
Customer care
Lead generation
Lead follow up (internal and external)
Account management
Customer retention
Interpersonal skills
Negotiating skills
Product knowledge
Sales forecasting
KRA AND KPI FOR Accountant/Finance
Management information
Capital expenditure
Security
Financial analysis
Cost control
Internal audit
Regulatory reporting
Credit control
Financial records
Payroll
Cashflow forecasting
Budgeting
Costing
KRA AND KPI FOR Sales/Marketing

Monitoring sales target & sales Budgeting

Effective planning and execution of marketing strategy and marketing budget.
Customer relationship management
Maintaining & developing effective operational effectiveness.
Target Achievement
Developing new customers
Increase market penetration
KRA AND KPI FOR Administration, Front Office, Clerical
Staff
Correspondence
Filing
Records management
Administrative support
Internal customer relations
Equipment maintenance
Forms administration
Scheduling
Supply maintenance and purchasing
Telephone coverage
Project support
Finally, key result areas for everyone in an organisation are:
Personal development
Professional development
Internal and external customer satisfaction
Public relations
Communication - oral and written
Interdepartmental relations
KRA AND KPI FOR Operations
Cost saving objectives
Quality
Systems and Policies
People management
New Initiatives

LAST STEP : Appraisers Final recommendation.Promotions,

Increment, Further training etc.