Module 6 : Performance Management
The young workforce, often coupled with a relatively low EQ, has made managing the performance process in IT companies a challenge. Despite this, performance management systems existed in most IT companies and were generally more widely implemented compared to other industries. The approach to performance management was generally to combine both development objectives and reward. However to some extent both these aspects were compromised by the pressure to retain and the need to achieve maximum revenue from employees.
The IT companies have taken the lead in implementing 180 degree and 360 degree appraisals. The appraisal by subordinates is considered a very important input especially for project managers. Several companies have a 360 degree appraisal done once in two to three years and not every year. Such appraisals are also often outsourced for compilation.
Many companies did appraisals more often than on an annual basis. Appraisals at the end of a project/module and often twice a year were commonly reported. The reason was the need felt to review performance from a feedback point of view more often especially in the initial years. The process was also an important input to building a skills inventory that was necessary for project allocation.
Most companies had a common appraisal form across levels, though a few companies did define different forms or competencies for different levels. In general the focus in the industry was more on competency assessment than actual achievements in terms of goals. This is a reflection of the focus on developers in the industry. Competencies described by most companies were fairly similar and the difference lay mainly on the number of competencies and the articulation of the competency.
With the focus on certification of quality standards in many companies, processes for measuring productivity have been enabled. However the actual measurement of productivity and use of measurement tools was mixed. A large number of companies did not link productivity measures to performance ratings.
A key issue for most companies was ensuring that appraisees were fairly appraised especially when attrition and changes of projects resulted in too frequent changes of bosses. Similarly "virtual" bosses without close interactions or divergent feedback from multiple bosses were reported as key challenges in ensuring fairness. A key issue for most companies was ensuring that appraisees were fairly appraised especially when attrition and changes of projects result in too frequent changes of bosses. Similarly "virtual" bosses without close interactions or divergent feedback from multiple bosses were reported as key challenges in ensuring fairness.
Training on performance management including giving and receiving feedback was also seen to be an important. Several companies did conduct such programs on a regular basis.
