Designing a Performance appraisal system for startups that works Part-2

Designing a Performance appraisal system for startups that works Part-1

Problem part-1

In many of companies, before the appraisal process starts, there is flurry of activities starts, managers are sending mails to their reportees on slightest of pretext in order to look more sincere and hands-on, technical managers are preparing training materials and providing training to all the engineers and engineers attending them but is it adding any value to the company? I think, NO. Actually, this activeness harms the organisation more than it helps.

Another issue which is worth pondering is, more often than not, productivity of team is less than sum total of productivity of all its team members. It can’t be as every team in organisation possesses organisation capital and intellectual properties which is accumulated overtime.

To understand this thing called annual appraisal process, we need to understand the cognitive biases that have crept in the process:

1. Availability heuristic
2. Essentialism
3. Anchoring
4. Attentional bias
5. Duration neglect
6. Functional fixedness
7. Hyperbolic discounting
8. Optimism bias