Human Resources – Performance Appraisal (7 of 10)

Human Resources need to be assessed just like any resource needs to be evaluated. As our human resources, besides getting them to perform, we also need to develop them. How do we know what is required?

Human Resource department generally request us to do an annual performance appraisal either in July or December. You would notice that most of the companies would do it in December.

We usually use the appraisal result for (a) performance increment (b) annual wage supplement (c) bonus payment and (d) training needs analysis. Human Resource will issue guideline for the payment.

We feedback to the Human Resource we need a mid-year appraisal for mid term payment of bonus. Half-yearly business result would be motivational if it is a positive KPIs or profitable trends. Human Resource would then consult the Corporate Management with the Finance on the quantum to be awarded.With the quantum, we would need to appraise our employees and broadly classified into (a) good (b) average and (c) below average. Employees with exceptional performance would then be classified under “exemplary” performance with extra quantum.

Human Resource does highlight other methodology using bell curve distribution. We do understand that this method is using force distribution curve. Some managers prefer while others prefer the classification. Human Resource manager remainder us that the total payout is within the budget sum.

We acknowledge that from the classification method, the extra bonus for “exemplary” performers is tougher to get approval as this sum is not within the budget amount.

However, using the force distribution system, we would be able to use the amount from non-performers to award to better performers. Human Resource explained that the amount may not be significant as compare to classification method.

Performance appraisal system is further divided into three sub-system as advocated by Human Resource Manager. We feel that it is rather time consuming for do different type. But when we receive the manager-appraisal, executive-appraisal and support-appraisal, we recognize the significant difference of these three sets.

We would applause the forms designed and the appraisal process explanation by Human Resource.

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