Dear Mangipudi,

If we talk about appraisal of employees, it is often said that 6 months may be too short for employees to change their attitudes etc and to reflect these changes into their performances. Therefore, annual appraisal is the most preferred one in the literature.

However, if we are based on evaluation of an organization as a whole, it largely depends on a sector where related organization operates in. For example, when an organization operates in a more dynamic environment, evaluation periods for organizational performance will be shortened. Thus, in this case, a contingency approach can be adopted in terms of sector.

Best regards,

Mehmet

Dear Mehmet,

That's an excellent answer. Thank you.

Best,

I think, 360 degree feedback system is the best method. However, it should be a regular practice.

Thank you @Mr. Rabiul Islam.

Excellent explanation by Dr. Madhu.

Dear Dr. Madhu Bala,

Thanks so much for answering this. It has given great insights. So, one would conclude that 6 monthly appraisal/review is recommended, in general, and the appraisals can be conducted by giving due weightage to each KRA/KPI in every department, which must be quantified for measuring each of the metric with ease.

I would prefer annual appraisal as sometimes we need some relaxation and family time for ourselves which cannot be done if we are just preparing for the assessment every other six months especially for ladies.

I think assessment every 6 months is an overkill. Annual evaluation is still the optimum duration between evaluations. It could coincide with the employee's hire date. My university had evaluation based on the calendar year and paperwork to be submitted to Human Resources by February 1 for the evaluation period of the previous calendar year. Unless there has been significant changes in the responsibility of the employee or a promotion of some sort, annual evaluation seems to be the way to go.

Thank you for all of your responses. It provided good insights.

There should be two sets of an assessment. The first one is in the middle of the year to let the person being assessed reflect back on the objectives trying to be accomplished and to determine the adjustments for attaining the aims. The second is to see if the goal and objectives have really been met.

Dear @Ravee Art Phoewhawm,

Thank you for the revert.

As you rightly opined, exactly, interim appraisals may not necessarily lead to revision of CTCs, but gives an opportunity to both sides to adjust and fine tune, or come to terms to get on track without losing another six months of valuable time and align with the organizational objectives.

How often should Performance Evaluation (PE)/assessment be done? This is a timing issue of PE to be decided in terms of formulating a clear policy. This issue involves determining frequency of PE. PE can be carried out in the following ways: Annually, Semi-annually, Quarterly, Monthly, Biweekly, Weekly, Daily or Any other time. Psychologists have found that feedback on performance should be given frequently, and the closer the feedback to the action the more effective it is (Glueck, 1979). It is the best for the organization to do PE daily. But it is impossible to do so practically owing to the cost involved, specially time and effort.

Mamoria (1972, p.440) notes:

“In most organizations employees are formally evaluated once a year, in others twice a year. New employees are rated more frequently than the older ones. The ideal thing is that each employee should be rated three months after being assigned to a job, after six months on the job and every six months thereafter.”

When the frequency is low, it is most likely that the evaluator forgets many things relating to job performance of the employee. If the frequency of PE is high it is most likely that the degree of evaluation enhances by reducing the degree of recency effect ( when an evaluee’s job performance is rated solely on performance occurred in the recent period of time irrespective of performance occurred over the entire period of evaluation, the error of recency effect happens.). Conducting formal PE at least twice per year can be recommended. The frequency of PE should not be more than one year. Factors such as job cycle, nature of work, time, scope and depth of evaluator’s job, etc should be considered in deciding frequency of PE.

Dear @Suresh Shetye,

Thank you for the detailed analytical reply. If I am permitted, may I request you to advise me on how to measure the performance, in common, irrespective of sector or business vertical. What could be the yard sticks or scale to evaluate the impact of PMS in an organization?

As expert in Performance Management and specially Key Performance Indicators. i would prefer to have Performance/Competencies Appraisal where 75% based on KPIs and 25% based on Competencies through performance review questions on a scale from 1 to 5 and to be reviewed on quarterly basis to give 3 opportunities for employees to improve and get better performance and results.