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Performance Management & Appraisal Systems: What Startups & SMBs Should Know

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Team sumHR
August 8, 2012

Time and again, management experts have cited that employees are one of the strongest pillars of an organization. For most startups and small business, attracting good talent is a challenge and retaining them is even a bigger challenge. That's why it becomes important for startups to reward their employees very often and use performance management and appraisals.

But as a Startup/SMB, why does a performance management and appraisal system matter?


For small business and startups, especially the latter, HR management activities such as attendance management and leave management are documented on paper or maybe a spreadsheet. However, these are inefficient and time consuming methods. The same goes for methods for performance appraisals. Many startups either keep it subjective or download a basic form off the web, get it filled and that’s about it! As a company that is growing, it becomes difficult to manage the increasing number of personnel, and systems are needed to ensure there are no mistakes. A software for performance management and appraisal enables on organization to bring in more efficiency, especially for growing companies.

Data, Analysis, Data

When companies use subjective methods to appraise their employees, there are many questions that remained unanswered, either completely or partially. When a performance appraisal is made more objective, it enables the HR to make better decisions. The best way to implement appraisals that are objective is to use performance management and appraisal software. Both the sides, the company that is appraising and the employee who is getting appraised, can carry it out objectively and then use the numbers for analysis and improvement. While the employee benefits from his appraisal analysis, the organization can use the data of all the employees for broader analysis and better HR management.

More Features

When employee-related tasks such a performance management and appraisals are automated, there are several advantages that a small business and startup gets. Generally, appraisals take place during a particular period. However, using performance management and appraisal systems you can carry out appraisals for an employee any time of the year, and maybe twice in a year depending on the employee. In addition, you can streamline the process. Many startups have a setup where the manager sits in one location while the employee sits in another location. Instead of couriering back and forth appraisal forms, both can use the system.

At sumHR too our engineers are building a performance management and appraisal system that will be integrated in our cloud-based software.

What are your expectations from a performance management and appraisal software? Use the comments section below to share your views.

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Team sumHR
SumHR is a flexible and configurable end-to-end HR Software/HRMS which help HR teams automate the HR Processes, and improve the employee's HR experience.
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