Automating Performance Appraisal

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automating HRIn March this year, state-run Coal India ltd (CIL) introduced a new appraisal system for its employees to boost productivity, attract new talent and improve work culture. The new performance management system is based on the Department of Public Enterprise guideline that had asked the public sector companies to link salaries directly to profit they earn as well as performance of individual staff.



Infact for any Human Resource managers, performance review is considered one of the most important tools in motivating employees to outperform, retain the best talents and ultimately align individual goals with the company’s ambitions. However, it becomes a cumbersome procedure for the HR department to sift through so many performances review forms, evaluate and then award each employee. Also, the lack of transparency in the semi-automated appraisal system often leads to discontent among the employees. This is probably why so many Indian companies are shifting towards an online system for performance management.

Online performance management system simplifies the review process by breaking down each and every step, right from reminding everyone about the forms to be filled; giving the password encrypted forms to each employee to even forwarding it to the supervisor once it is completed, thus making the task of awarding ratings and bonuses virtually effortless for the HR team.

Automating the appraisal system also gives the employer an insight into the goals and aspirations of the employees throughout the year, which in turn helps identify the Hi-Pos in advance. The automated review assists in mapping development plans, training and mentoring processes for the employees throughout the year. At the same time, monitoring performance and providing feedback to achieve desirable goals also gets streamlined for the employer. In order to align individual goals with the company’s strategy, performance review system takes into account certain areas like targets achieved, competencies, value orientation, skill-set and other performance factors.

Employees also tend to view online appraisals as more open as it is easy to track their progress toward both personal and organizational goals. Apart from self-evaluation, employees can also view past appraisals, review achievements against set goals as well as take a look at the 360 degree feedback.

Organizations that have shifted to the online system are already enjoying the benefits of creating competitive advantage by using the transparent online appraisal management. It’s time now for other companies to follow the suit. 

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