Lessons For The IAF From The Corporate Sector Commerce

The performance appraisal systems of almost all the corporate sector companies studied under chapter 3 are complete performance management systems rather than just appraisal systems. The evolution of the concept of performance management as a new Human Resource Management model reflects a change of emphasis in organisations away from command and-control towards a facilitation model of leadership.1 This change is accompanied by concepts such as employee first, customer second2 and further deriving the employees' goals and objectives from their departments, which in turn support the mission and goals of the organisation.

Performance Appraisal vs Performance Management

Often the distinction between performance management and performance appraisal is not clearly understood. Performance appraisal is one component of the Performance management cycle and is the process of assessing an employee's performance in the current position. Thus 'Appraisal' is an annual affair while performance 'management' is a year round activity. Appraisal focuses on ratings while 'management' focuses on the work, the stakeholders, service levels, productivity, motivation effort and all such performance related variables. The following table3 highlights the difference between performance appraisal and performance management.

Joint and Unambiguous Goal Setting

The performance management process provides an opportunity for the employee and performance manager to discuss development goals and jointly create a plan for achieving those goals. Development plans should contribute to organisational goals and for the professional growth of the employee. In the absence of such a system, staff members are unclear as to the employer's expectations regarding performance objectives and required standards/targets, leading to low productivity, costly mistakes, stress, de-motivation, and conflict. Sound performance management systems subscribe to the crucial Principle: "What gets measured gets done". The days of having a "one-set-of-measures-fits-all" Performance Management Systems are inherently flawed and long gone. Performance objectives and measures need to be specific to job categories and individual roles.

360 Deg Appraisals

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