Management in India

Performance management and appraisal as a two-stage system

The primary purpose of performance appraisal is to review and reflect on employee performance with the aim that employee performance will improve in the next appraisal cycle. However, in order to ensure performance improvements, we really need to manage performance in a more proactive and continuous basis.

Looking at the issues with the annual performance appraisal cycles, it is clear that many of the issues are due to the long nature of the cycle. Managers and employees simply 'forget' a lot of detail. Most people are also susceptible to the proximity of the events. More importantly, in the current knowledge industry, setting specific goals for the next one year is a futile exercise since ...