Need of revamped Appraisal System!

Performance Appraisals are part and parcel of today's HR possesses, conducted minimum once a year in organizations. Objective is to evaluate employee performance for the term (mostly a year, this could be quarter, or half-yearly), provide feedback, and also use it as a basis to finalize compensation and promotions.

In today's times, appraisal systems have become mechanical in nature. In trying to introduce Objectivity, it has been made more of a computer game; the smarter the individual is, he or she can easily control and manipulate the final score...Subjectivity for that matter is not completely gone away. Still many of appraisals, and in many organizations, are addressed through the act of favoritism. 

So, is it time to revamp the performance appraisal systems? Indeed it is time to reason out the Performance Appraisal systems. Lot of time and energy is spent each year in managing this process year-on-year. Our HR theorists should come up with different ways to assess employee performance, and improve the morale and motivation across employees.

Wouldn't it be better to replace a performance appraisal system with Self-Assessment, and guidance from the management? Any negative performance or positive performance needs to be captured as they occur in the form of events. De-link the compensation and promotion from the performance assessment. While it will help to flatten the compensation structure, it also removes uncertainty and favoritism to a greater extent...Promotions need to be based on the capability of an individual. Capability evaluation needs to be based on System, Domain, and Technical understanding; coupled with future prospects. If an organization is really flat with fewer slabs of hierarchy, it makes it further simple.

In today's times, employees are more smarter, and expecting a lot from the organization and management. A complex performance appraisal system, only complicates the situation for the management. So, it is time to bring in simpler nuances of appraisal system, and replace the other components with what will keep employees motivated and attached to the organization.