A UNIQUE PROCESS OF PERFORMANCE REVIEW 

DR. PRAKASH V. BHIDE

Performance Reviews are dreaded by Employees and hated by Bosses. Many organizations and HR Heads are not very happy with the review process and the outcomes. The Employee Engagement Surveys also consistently show low scores on this process.

“Is there a way to make the process more effective and where both the Employee and the Boss feel motivated at the end of the process and feel it was worthwhile?” This was the question which bothered me. We surveyed several best companies and best practices. We also saw Dr T V Rao’s film “Dream or Nightmare” on the topic.

I am happy to share with you the unique process which we developed with my HR Team. We have been successfully implementing it in JK Group (Delhi) for more than 10 years (2002 onwards) and must have covered more than 25000 Performance Reviews across 9 Businesses both in Manufacturing & Service sectors. We call it “Performance Review with HR Facilitation”. We find that it is highly effective, especially at Middle and Junior levels of Management Cadres – DGM, Managers and frontline executives.

BACKGROUND

In JK Group, we have introduced “SIX MONTHLY” and “YEARLY” PERFORMANCE REVIEWS from 2002. The goal setting is done separately using ‘Balance Scorecard Methodology’ and ‘Strategy Maps’ with CEO and Top Management team(about 25 participants) at the beginning of the year in a  two day “Goal Setting Workshop” facilitated by CHRO (More on this in future blog). The goals are signed off and the end of the workshop. The goals are then cascaded down up to the frontline level in one day workshops. The “Goal Setting” process is robust and each employee up to the frontline level has clearly defined KRA’s & targets for the year.

The ‘SIX MONTHLY’ Performance Reviews focus more on Learning and Development’ & ‘Career Planning’. We find that both, Boss and Appraisee, are more at ease, as there is no Year End time pressure, Normal Distribution Forced Ranking or Increment & Promotion Decision pressures.

The HR Head of each Business with the help of Unit HR Heads conduct a two hour workshop (25 to 40 people) to cover all Management Cadre Employees at each location just before the 6 Monthly and Yearly Performance Review process begins. The workshop is attended by Unit Head & at least one/two VP or GM’s by rotation. Coverage of all APPRAISERS & HR Facilitators is ensured. Unit Head (facilitated by Unit HR) puts up a 6 weeks “Performance Review” schedule for each Department/Boss with details of Dates & Review session timing of 90 minutes for each employee.  The schedule is very essential so that Unit HR can streamline the process and both Boss/Appraiser & Appraisee knows their schedule and timings.

PERFORMANCE REVIEW PROCESS WITH HR FACILITATION

Corporate HR at Group Level discussed in detail with all Business HR Heads and Unit HR Heads the concept. All HR Facilitators were trained in one day workshops. Unit HR Facilitator attends the Performance Review Session with the Appraiser & Appraisee. Initially it took a long time and detailed dialogues to convince and create a “Buy In” on why & how HR Facilitation will help. Lots of doubts & misgivings were expressed, including confidentiality issues. Initial pilot reviews convinced Bosses and Appraisers the usefulness and effectiveness.

The process was refined and fine tuned over next two years with feedback sessions with Appraisers and Unit HR Facilitators. The process starts with Unit HR contacting both Appraiser & Appraisee requesting them to prepare themselves & bring along any documents to the session if they so desire.

The session lasts for 90 minutes. The HR Facilitator initially was chosen to be at a level higher than the Appraisee. (In the later years even junior level HR Facilitators were accepted.) The Facilitator ensures that the review session starts on time and in a conference room away from the Appraisers cabin. This is essential to bring in complete focus without any interruption or disturbance. No calls are allowed. The HR Facilitator welcomes both Appraises & Appraisee and informs them about the 90 minute session schedule. HR Facilitator also ensures before starting that both Appraiser & Appraisee are well prepared for the session and in rare cases reschedules the session.

THE 90 MINUTES SESSION IS AS FOLLOWS:

1. FIRST TWO MINUTES:

 HR Facilitator welcomes Appraiser & Appraisee, sets the mood and broadly describes the objectives of the session. (HR Facilitator’s role after this is to be a silent observer and make notes in a separate one page form, unless a crisis develops). No phone calls & interruptions are entertained.

2.)  5 to 7 MINUTES:

> Appraiser welcomes the Appraisee with a smile. Appraiser asks Appraisee’s view on how their department/section is performing against their department goals. This shifts the focus to the department/Bosses’ goals rather than individual appraisee’s. It also emphasizes that the appraisee is a part of the team.

> At senior levels, we encourage a dialogue on company’s performance against budgets, competitors and external factors including customer feedback & perceptions.

3.)  20 MINUTES:

> The Appraisee to recount and talk on his/her own achievements during the last six months. The Appraiser is advised not to counter or argue about any of Appraisee’s achievements. Appraiser can only take down notes, very silently and with full attention, even if he/she does not agree and the Appraisee’s performance is very poor

> Our experience shows that this is the most motivating and satisfying part of the session for Appraisee. They feel that the Appraiser/Boss has heard them fully and they were given full time and attention. Boss has heard their side for once.

4.)  5 MINUTES:

> Appraiser asks Appraisee to say on areas he/she could have done better or where they have not met targets.

> After the last 20 minutes session, the Appraisee is found to be more open to talk on his/her failures & shortcomings.

5.) 30 MINUTES: PERFORMANCE REVIEW AGAINST TARGETS

> Now the Appraiser goes through each of KRA’s & targets. The actual performance as supported by data and also filed in ‘Self Appraisal’ section by Appraisee.

> Appraiser is guided to have main focus on how the performance can be improved in future. Past is past and beyond some analysis and discussions nothing much can be done. The forward focus is useful and at least 50% time is invested in this.

> Appraiser acts a coach and asks lot of questions to get commitment and initiative from Appraisee. The action planning and Appraiser’s guidance is helpful.

>Appraiser gives the rating against each target and overall rating confidentially.  At a later date after Normal Distribution and Forced Ranking, the boss shares the Cluster rating with the appraiser at the time of giving out the increment/ promotion letter.

6.) 10 – 15 MINUTES:

> Active participation of HR Facilitator during discussions on “Learning & Development” plan for the next year (during 6 monthly reviews) and Boss’s rating on the Leadership Competencies displayed at work – Strength & Areas of improvement etc.

> Only for Hi Pots and High Performers (Top 10 to 15 %)  Career Aspirations of Appraisee and Career Growth opportunities, Job rotation and Job Scope improvement, Development, Assignments etc are discussed.

> What “Training & Development” has been completed? How was it useful? Has it been put in actual use at work? Has the Appraisee improved on the soft skills of the training? etc. This is a great way to get feedback on “Training & Development Programme

” from Boss/Appraiser & Appraisee. Both, Appraiser & Appraisee are candid and at times it is “Deflating” experience for HR Facilitator and brings him/her to ground level reality. My experience shows HR always feels the Training was great as per the “SMILE SHEETS” filled at the end of the programme.

7.)  5 MINUTES:

> The Appraisee is to make 3 statements as to how he/she plans to improve the performance in future/next six months and meet the targets starting with:

i.) I will ……

ii.) I will ……

iii.) I will ……

These are recorded by Appraiser & HR Facilitator and discussed in the next review meeting.

8.)  3 MINUTES:

Appraisee is seen off by HR Facilitator and escorted outside the conference room. HR Facilitator briefly asks the Appraisee how he/she feels to gauge the motivation and satisfaction level.  Also asks Their happiness and if they found the session useful. (Anonymous feedback for Appraisers show they are much more happy and find the sessions useful. In fact many of them look forward for HR facilitation for the session.)

9.) Last 10 MINUTES: Feedback to Appraiser

> HR Facilitator gives feedback to Appraiser about the session. This is based on a structured form filled by HR Facilitator during the session.

> We have found that appraising & reviewing skills have improved significantly over years for all Appraisers. They are very confident, prepare well, and give both positive & negative feedback upfront.

CONCLUSION:

Yes, HR needs to invest lot of time during the SIX MONTHLY and YEARLY reviews, but it is worth it. HR Facilitators are trained and monitored to ensure that they are very very mature, keep the review session discussion completely confidential, and be very respectful, helpful and understanding. Our experience over last more than ten years shows the results are excellent. The Training and Development has improved with the feedback received during reviews. The Self – Worth and Self – Esteem of HR Facilitators has gone up significantly. The Business Understanding of HR Facilitators has also gone up significantly.  Most importantly the performance of many more individuals & departments has improved leading to better business performance. The Business Heads are really happy and appreciate the HR contribution to business.

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