Dear Members,
I want to understand if yearly appraisals are mandatory if the employees are performing well.
Is it also that they get a hike based on company's growth?
Recently I had a discussion with my MD and he mentioned that it might not be possible to give a hike when the company is not growing.
But I am concerned about the employees. Would nt they be be discouraged about this. Instead of putting in their efforts and performing well their salary wudnt be increased.
To me it is really depressing when an organization is not recognizing the talents and hardwork of people.
Being an HR Exe. how do u think I should approach the management.
Also needed to understand if we have to do their analysis on the performance, what kinda parameters would be set for accounts people coz their work is kinda tricky.
Kindly suggest.
From India, Lucknow
I want to understand if yearly appraisals are mandatory if the employees are performing well.
Is it also that they get a hike based on company's growth?
Recently I had a discussion with my MD and he mentioned that it might not be possible to give a hike when the company is not growing.
But I am concerned about the employees. Would nt they be be discouraged about this. Instead of putting in their efforts and performing well their salary wudnt be increased.
To me it is really depressing when an organization is not recognizing the talents and hardwork of people.
Being an HR Exe. how do u think I should approach the management.
Also needed to understand if we have to do their analysis on the performance, what kinda parameters would be set for accounts people coz their work is kinda tricky.
Kindly suggest.
From India, Lucknow
Hello,
I refer to the conditionality contained in your question itself!
How would one know whether the employees are doing well at all except by appraising their performance? The appraisal may be INFORMAL (which I would not advise professionally for the fear of subjectivity creeprign in.) but it (the appraisal) has to be there to decide if and how the employees may be rewarded by way of increments or otherwise.
Increments are additional costs and technically at least, attract affordability question from the top management. In principle, this is correct because these are committed costs. One has to be careful. The decision of the organization will depend upon how short sighted or far sighted its policies are. In unfavourable times you need not be as generous as you would be in favourable times but to simply ignore the question of granting increments is UNFAIR. The organizations must consider increments in such times as "investments" in employees and NOT an expense. In fact this should be the view always but one must not go overboard in good times just as one need not be cruel about such issues.
I suppose you are right but are reacting emotionally rather than rationally!
For all recognitions also there are costs to be considered. One cannot simply wish them away. Admittedly even if the employees have worked well and the adverse situation, supposedly is due to factors other than employee performance, the organization cannot add to the adversity of the situation by granting exhorbitant increments. By default the employee fate is linked to organizational well being and that fact can not be ignored.
As a policy you may like to consider "modest" increment to all and "Performance Reward" to a few. Performance rewards are linked to performance of the employee and the same person may not qualify each year. If he does, so far so good as you have received good performance anyway and your committed costs are controlled.
Lastly Annual Salary increases have two components (whether recognized as such or not) namely, the "compensation for rising cost of living" and "recognition of good performance". You may like to deal with your superiors on the basis of such arguments!
Is the response helpful?
Regards
samvedan
April 1, 2011
--------------
From India, Pune
315I refer to the conditionality contained in your question itself!
How would one know whether the employees are doing well at all except by appraising their performance? The appraisal may be INFORMAL (which I would not advise professionally for the fear of subjectivity creeprign in.) but it (the appraisal) has to be there to decide if and how the employees may be rewarded by way of increments or otherwise.
Increments are additional costs and technically at least, attract affordability question from the top management. In principle, this is correct because these are committed costs. One has to be careful. The decision of the organization will depend upon how short sighted or far sighted its policies are. In unfavourable times you need not be as generous as you would be in favourable times but to simply ignore the question of granting increments is UNFAIR. The organizations must consider increments in such times as "investments" in employees and NOT an expense. In fact this should be the view always but one must not go overboard in good times just as one need not be cruel about such issues.
I suppose you are right but are reacting emotionally rather than rationally!
For all recognitions also there are costs to be considered. One cannot simply wish them away. Admittedly even if the employees have worked well and the adverse situation, supposedly is due to factors other than employee performance, the organization cannot add to the adversity of the situation by granting exhorbitant increments. By default the employee fate is linked to organizational well being and that fact can not be ignored.
As a policy you may like to consider "modest" increment to all and "Performance Reward" to a few. Performance rewards are linked to performance of the employee and the same person may not qualify each year. If he does, so far so good as you have received good performance anyway and your committed costs are controlled.
Lastly Annual Salary increases have two components (whether recognized as such or not) namely, the "compensation for rising cost of living" and "recognition of good performance". You may like to deal with your superiors on the basis of such arguments!
Is the response helpful?
Regards
samvedan
April 1, 2011
--------------
From India, Pune
Dear Mr. Samvedan
Thanks for your prompt suggestion.
I would like to add on few points that I missed in the earlier post.
Performance Appraisal has never, formally been in practice in our organization also I would like to mention that I have joined this organization on Oct' 2010. Since then what I have found is, attrition rate of this organization is very high.
One of the reason that i could figure out is that the rules and policies of the organization are just in papers. They are not practised.
Also people who work hard have not been awarded ever and in this case I assume its coz of the management not cooperating.
Just Incentive structure for sales people and nothing at all for the people in other department doesnt justify the smooth functioning of the company and also "Growth" in that case.
While in the meeting, I pointed out one of the reason for the company not grwing was that, when people join organization they need to be trained well atleast for 3 months and then they get equipped well so that they can start performing and once they do, it has to be recognized by the Management where in this case its just the Proprietor. Because it has not been recognized in the company people start losing interest and quit.
I need some concrete ideas that can help me convince The BOSS.
Kindly guide
From India, Lucknow
Thanks for your prompt suggestion.
I would like to add on few points that I missed in the earlier post.
Performance Appraisal has never, formally been in practice in our organization also I would like to mention that I have joined this organization on Oct' 2010. Since then what I have found is, attrition rate of this organization is very high.
One of the reason that i could figure out is that the rules and policies of the organization are just in papers. They are not practised.
Also people who work hard have not been awarded ever and in this case I assume its coz of the management not cooperating.
Just Incentive structure for sales people and nothing at all for the people in other department doesnt justify the smooth functioning of the company and also "Growth" in that case.
While in the meeting, I pointed out one of the reason for the company not grwing was that, when people join organization they need to be trained well atleast for 3 months and then they get equipped well so that they can start performing and once they do, it has to be recognized by the Management where in this case its just the Proprietor. Because it has not been recognized in the company people start losing interest and quit.
I need some concrete ideas that can help me convince The BOSS.
Kindly guide
From India, Lucknow
Hello,
Now we are talking! As I see the situation now, it is clear that:
You could perhaps look one more (in addition to all above) intervention. This is called "Organizational Climate Survey". Conducted by an external agency, guarantting annonymity to respondents, you would generate valuable insights into the REALITY of the organizational situation.
I trust the above will be "food for thought" and would spur appropriate actions. If you need more interaction, do not hesitate to raise topics again!
Cheer up, you have a lot of hard work ahead!!
Regards
samvedan
April 5, 2011
-----------------
From India, Pune
Now we are talking! As I see the situation now, it is clear that:
- You are new to the organization-just about SIX months.
- The organization culture (HR) does not seem to have adopted consciously any particular orientation except the primitive!!
- You naturally have a strong desire to improve things around.
- All of us as employees are, in the final analysis, helpless against bosses who have made up their minds and are not receptive to new suggestions UNLESS they are shown a direct link between HR approach and the increased revenues/profits.
- Even if you are right (and in this case you are!) it takes time to convince the bosses about the validity of a new (your) approach.
- You are in for considerable professional work, in terms of systematising the HR policies and procedures. Review policies/practices where they exist and recommend, if necessary new ones. Evolve policies/practices where there are none. Document all these.
- Attirtion is a serious matter. Apart from any other thing you may try, if your organization does not have an "Exit Interview System", bring in one and ensure that HR will conduct the same. Make a repot to your boss periodically about what you have learnt from these.
- Develop "Employee Eagagement Programmes". Rationalize wage/salary/emolument structure and install a proactive approach. I suppose you need to revamp your Performance Appraisal System too.
- Conceptualise on establishing an "inclusive, supportive work atmosphere". Under the pressure of work, targets and deadlines, do not let the human element suffer adversely. Ensure that each person is assured human dignity.
You could perhaps look one more (in addition to all above) intervention. This is called "Organizational Climate Survey". Conducted by an external agency, guarantting annonymity to respondents, you would generate valuable insights into the REALITY of the organizational situation.
I trust the above will be "food for thought" and would spur appropriate actions. If you need more interaction, do not hesitate to raise topics again!
Cheer up, you have a lot of hard work ahead!!
Regards
samvedan
April 5, 2011
-----------------
From India, Pune
Dear Mr.Samvedan,
It has been more than a month since we discussed and now, while I was trying to work on different situation to bring in results, I failed.
Interaction with the only person, who i can refer to as the management or an entrepreneur has brought in no fruits to the amount of things that were discussed. I would like mention it in points.
1)The owner, "X" misses leadership and his way of working is only earning money or profits. Mr. X doesnt realize how important employees are and also that he cannot donot it untill and unless the employees are motivated and taken care of.
So there has been big talks all the time, saying I am open to ideas but when it comes to implementing and taking a step further, it all come back to zero.
Mr. X says you analyse the problem and take a step, I will be on for it, but why doesn't it come from him, that things need to change and he would be loosing if not others.
2) I might have mentioned earlier that people leave very very soon, whereas there has been cases where Mr. X has fired people also.
First of all all the old employees are leaving and the only reason is, there issues in terms of salary or job responsibility have not been taken care of.
Why doesnt he increase their salary?
He has involved each and evryone in everything, because of the insufficiency in manpower, whereas the new people who are being interviewed hardly join because he asks all of them to join at the same package at what they are currently working.
In this case how can i solve the problem being responsible for Recruitments.
How do i justify people when they are interviewd, bcoz i know that its not justified.
3)other employees arent happy coz they have been involved and responsible for sales to operation to Purchase and what not.
Now when they approach Mr. X with their problem, The blame is on me because I am responsible for recruitments.
How can I work and recruit in this way?
4) Being hired in a generalist profile, sofar all I have been doing is recruitments and recruitments. whoever joins, leaves in 3-4 months time and we are back to zero.
I havent been able to justify the role and i feel I am stuck, Do you think my efforts are going in vain?
I am seriously thinking of changing, but I dont want to keep hopping my job and this might not create a good impression.
Kindly suggest because I feel strongly that this is not the right place for me.
A single man show, who is responsible for the entire business and employee, when do pay heed to such issues due to his inabilities might not be successful for ever.
Guidance is what i seek!!
From India, Lucknow
Dear Mr. Samvedan,
Thanks for you suggestion and continuous follow up. I am so grateful to you.
I have got an offer from an MNC but its on a contractual basis, not under the payroll of the MNC, but the staffing company for a year, after a year it can be extended also or could also be under the MNC's payroll.
What should i do?
I am apprehensive because of the experiences that i have had in past and the current company.
What do you suggest?
Thank You
From India, Lucknow
Thanks for you suggestion and continuous follow up. I am so grateful to you.
I have got an offer from an MNC but its on a contractual basis, not under the payroll of the MNC, but the staffing company for a year, after a year it can be extended also or could also be under the MNC's payroll.
What should i do?
I am apprehensive because of the experiences that i have had in past and the current company.
What do you suggest?
Thank You
From India, Lucknow
Hello,
I thought I had almost lost you!!
While changing present employment is a certainty.
We cannot however change in a given timeframe or accept any first opportunity that comes our way.
My first response is NO. I have learnt that a bird in hand is worth two in bushes.
There are NO guarantees on what will happen after one year.
The concerned MNC will not give any guarantee and the staffing company has no authority to commit the MNC.
Where does that leave us?
I think you should speak your mind to both the staffing company and, if possible, to the MNC itself.
If the present agony has to continue for some more time, so be it but it is not right to choose between, "frying pan to fire" or between the "devil and deep blue see"! It is not worth it anyway.
Also a known devil is any day better than an unknown friend (and you don't know if tis new employer prove to be a "friend" at all!)
My advice therefore is to WAIT. Change for an acceptable company even if you have to compromise on compensation (within reason, of course) if you indeed get a good employer. Reduction in the compensation may a cost and we must accept it as such!
Finally, HR is a prime function and cannot be outsourced. I am convinced of this, even if my opinion sounds conservative and oldgen!
A child can be looked after best by a biological mother and not by surrogate mother! Honourable exceptions apart, I am simply stating a common observation.
I would be grateful for your response.
Regards
samvedan
May 23, 2011
---------------------------
From India, Pune
I thought I had almost lost you!!
While changing present employment is a certainty.
We cannot however change in a given timeframe or accept any first opportunity that comes our way.
My first response is NO. I have learnt that a bird in hand is worth two in bushes.
There are NO guarantees on what will happen after one year.
The concerned MNC will not give any guarantee and the staffing company has no authority to commit the MNC.
Where does that leave us?
I think you should speak your mind to both the staffing company and, if possible, to the MNC itself.
If the present agony has to continue for some more time, so be it but it is not right to choose between, "frying pan to fire" or between the "devil and deep blue see"! It is not worth it anyway.
Also a known devil is any day better than an unknown friend (and you don't know if tis new employer prove to be a "friend" at all!)
My advice therefore is to WAIT. Change for an acceptable company even if you have to compromise on compensation (within reason, of course) if you indeed get a good employer. Reduction in the compensation may a cost and we must accept it as such!
Finally, HR is a prime function and cannot be outsourced. I am convinced of this, even if my opinion sounds conservative and oldgen!
A child can be looked after best by a biological mother and not by surrogate mother! Honourable exceptions apart, I am simply stating a common observation.
I would be grateful for your response.
Regards
samvedan
May 23, 2011
---------------------------
From India, Pune
Dear Samvedan,
It is so kind of you to help me in my decision making process.
Someone senior and experienced mentoring people like us in the early stage of career building helps a lot.Thanks a lot for your help
I would love to share the MNC's and the 3rd party name but I am not sure if i am allowed to share it here or not. Anyway, I have also not been very sure about this proposal, though the working hours from 9.00-5.00 and Mond to Sat, which was the most attractive offer for me but not at the cost of compromising with my career, moreover they aren't paying very well. Just average..20%hike they say. which makes just 2k more.
I have been getting calls from other companies also but I think they aren't organization with strong values and clear objectives.
This stage of finding out the right company is so difficult. Any suggestions or tips on how can I make the process simpler.
I really respect the fact of you taking out time for me amidst this difficult situation.
So I wouldn't take this offer. Decided.
Thanks a lot Sir:)
From India, Lucknow
It is so kind of you to help me in my decision making process.
Someone senior and experienced mentoring people like us in the early stage of career building helps a lot.Thanks a lot for your help
I would love to share the MNC's and the 3rd party name but I am not sure if i am allowed to share it here or not. Anyway, I have also not been very sure about this proposal, though the working hours from 9.00-5.00 and Mond to Sat, which was the most attractive offer for me but not at the cost of compromising with my career, moreover they aren't paying very well. Just average..20%hike they say. which makes just 2k more.
I have been getting calls from other companies also but I think they aren't organization with strong values and clear objectives.
This stage of finding out the right company is so difficult. Any suggestions or tips on how can I make the process simpler.
I really respect the fact of you taking out time for me amidst this difficult situation.
So I wouldn't take this offer. Decided.
Thanks a lot Sir:)
From India, Lucknow
Hello,
Congratulations!
Making up mind on such tempting but critical issues is NOT easy and I speak from personal experience! It takes a lot of courage and you have demonstrated that you are courageous!
One thing, never regret a decision even if it goes wrong. There are always more opportunities to encash and if we keep learning from mistakes we are honing skills to eliminate mistakes.
With active patience, you will be in for better opportunities, I feel sure of!
Finally, I am doing no favour to you. I could help and inferred that you need someone to brainstorm with! I am GLAD to be of assistance!
In future also do not hesitate to sound off ideas or to throw questions at me!
Cheer up. Best of luck.
Regards
samvedan
May 24, 2011
---------------------
From India, Pune
Congratulations!
Making up mind on such tempting but critical issues is NOT easy and I speak from personal experience! It takes a lot of courage and you have demonstrated that you are courageous!
One thing, never regret a decision even if it goes wrong. There are always more opportunities to encash and if we keep learning from mistakes we are honing skills to eliminate mistakes.
With active patience, you will be in for better opportunities, I feel sure of!
Finally, I am doing no favour to you. I could help and inferred that you need someone to brainstorm with! I am GLAD to be of assistance!
In future also do not hesitate to sound off ideas or to throw questions at me!
Cheer up. Best of luck.
Regards
samvedan
May 24, 2011
---------------------
From India, Pune
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