I am in a managerial position in an organization where the system of performance appraisal is an annual form submitted by the employees which are then reviewed by the superiors to award them grading as Good, Very Good, Excellent and Outstanding. This complete appraisal process lies at the hand of superiors without any involvement of HR until the last stage where appraisal report is submitted to them for record keeping and utilization for further promotions and increments.
I find this system faulty to a large extent. Consider these scenarios- (1) My subordinate works hard enough throughout the year but due to some unavoidable reasons, just a few days before his appraisal form reaches me, he goes for a verbal fight with me. Then there is a huge possibility that I will screw his appraisal. (2) My subordinate gives sub standard results throughout the year, but one month before the times of appraisal he starts giving extra ordinary results. Then I am susceptible to give him much better rating than what he actually deserves based on his annual performance.
Moreover, my organization is a labor intensive workplace. For example, I have to manage more than 500 people daily. Obviously, I achieve this only through my immediate subordinates who are 11 in number.
I want to create a system where each and every task I assign to each of my subordinates should give them a clear indication as of how it will affect their appraisal report. It should appear to them that each and every action they are committing is directly associated with their appraisal. Moreover, I want to make the system much more transparent, positive and trustworthy.
My Ultimate Goal- To create a system which motivates people to work.
For this purpose, I have come up with an idea of monthly points based reward system. Its salient features will be -
- For each task that I will assign to each subordinate, I will get a target date from them in a fixed format.
- If the task gets completed on the target date, +5 marks else -1 for each passing working day after that.
- For genuine reasons, target dates will be shifted without any point loss. Excuses and that too just 1 or 2 days before target date will not be tolerated.
- There will be some bonus points like +50 for innovating and successfully executing an idea. No negative points for this.
- At the end of each month, I will send a report to all the subordinates containing total marks obtained by them out of maximum marks for that month along with their aggregate marks for all the months of the current financial year.
- The final appraisal grading will depend on the final percentage received by him like Outstanding for >=95%, Excellent for >=85%, Very Good for >=70% and so on.
Now I want to ask two questions -
- In case I gave 3 tasks to one person and 15 tasks to the other, the chances of getting a good score or potentially bad score is more for the first one. How should I change my scoring system to neutralize it from the number of tasks that I assign to a person?
- Any loopholes or logical faults that I may be missing which will lead to the failure of this system? Can I remove those loopholes or further improvise this system to achieve my ultimate goal? I am looking for practical actionable advice rather than plain bookish ideas.
- Most of the people with whom I am working are grossly demotivated. It's not that I have not tried public appreciation before resorting to this idea. I have a system of giving instant appreciation note to someone doing a great job. But here I am trying to find out the solution for giving results on time. The reason why I am going for such a system is to fight the huge inertia inside them without going for scolding or charge sheets or major punishments.
- Apart from occasional prizes, I have no power to give any kind of monetary benefit to any employee.
- The work is mostly managerial for my subordinates too. It's all about getting work done on time with quality.
- The scoring system I have explained above is not exhaustive. In real time application, I will add some more levels as suitable for my organization.