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To make the Performance Management process effective here are the four absolute necessities.



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SAP joins host of organisations who have dropped or changed the annual performance review process. Why SAP did it ? Was millennial workforce a big factor ? Also what is the new process they are looking to make it part of their culture. And what does it mean for HR Tech 2.0


SAP has joined the list of organizations which have changed their performance reviews. With this they have joined a significant list of organizations in a last few weeks (read here on how Deloitte, Adobe, Accenture, Infosys have changed the review process.)
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Morgan Stanley recently deiced to change their Performance Review and Feedback System. They are second Wall Street company after rival Goldman Sachs to change their performance review process. Here is a look on what prompted the change and how the new process looks like.


Over the past few months, you may have heard about Goldman Sachs changing Performance Reviews. Not surprising because Performance Management is the hottest topic in Human Resource right now.
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A one page look on how different organisations have adopted new performance review & feedback system and have dropped the annual reviews.


There is a storm brewing in Human Resources. There have been drastic changes in how the industry thinks and department function and things have beyond the traditional old age ways. From traditional recruiting to social hiring, from traditional onboarding to tech based super personalized ones. And last but not the least, Performance Management, where people have been raising voices against the age old bureaucratic systems where humans were mere numbers.
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Dick Grote concentrates exclusively in the area of performance management. He is a prolific author : "How to Be Good at Performance Appraisals: Simple, Effective, Done Right" shares his first Grote Consulting, an award winging performance management company.
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We help you to go through a check list, which will help you setup a 360 Feedback process and get the most of it.


Before you start a 360 Feedback process, it’s important that you define traits for the process. Following is a 9 point list, which will help you ensure that you don’t miss anything to create an important process.
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360 degree feedback has always employees to find out their hidden talents, strengths and plan development accordingly. Mostly done with mid and senior management people, 360 Feedback helps to gather feedback on performance and behavioural attributes. When we helped customers to run their 360 Feedback process, many were not clear with questions for the evaluation. Here is a template of Behavioural and Performance Attributes which can be used in any 360 Review.


While helping HRs set 360 Feedback we face this question on how the questionnaire is to be set for the feedback givers. There is a lot on at stake from 360 Feedback analysis as development plans are chalked out based on the inputs. 
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How an American call center manager helped an employee to develop skills, increase sales and save from getting fired.


How an American call center manager helped an employee to develop skills, increase sales and save from getting fired.
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Performance Review and Compensation : Why and how you should separate the discussions ? How Performance Review should and only be kept to discuss about future and empowered with feedback, compensation can be discussed separately. Why linking compensation and performance is not a good idea and how you can use 2 approaches to segregate the two processes.


How To Separate Performance Review & Compensation Discussion
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A complete guide to 360 Feedback. Step by Step approach on how you can set up a 360 Feedback, implement and analyse.


During World War II German Military first started gathering feedback from multiple sources in order to evaluate performance. After being first introduced in the 1950s to gather information from employees, 360-Feedback has made rapidly into the corporate world. With 90 % of Fortune 500 firms using 360 Feedback and one third of US companies use multi type – feedback.
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If done correctly, performance management is perhaps the best Employee Retention tool.


A healthy organization is one which has a balance between happy external and internal customers. For an organization to be productive it must have a happy customer base and for that to happen, they must have a happy workforce. How does one achieve that?
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Now its Goldman Sachs, the American multinational banking firm has decided to do away with Annual Reviews. What made a giant like GS drop the Annual Appraisals like GE, Adobe and move towards a continuous evaluation process. We talk about it.


Seems the people who love numbers, do not seem to love seeing them as numbers.
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How to make your Review process more continuous and feedback based ? We have got 10 concrete points here which you can act upon and take the best out of Performance Management.


10 ways for Continuous Performance Evaluation and feedback
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Performance Review processes are evolving. Likes of GEs,Adobe dropped the bell curve. Young start-ups are moving to process based feedback as they grow. So what are the most important features you should ask from your Employee Performance Management System ?


Performance Management is evolving.
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Annual Reviews are dead. Why and what's the alternative


Annual Performance review is DEAD! Finally year end would mean new opportunities, career counseling, and new possibilities. It is so heartening to see the way the change is getting welcomed by employees and management alike. No more rivalry and negative competition, high levels of attrition and low level of trust amongst employees.
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Wipro, is among the latest in Indian IT Giants to drop its Annual Review Process and Ditch the Bell Curve. We discuss how they are introducing a new system and how it will impact them, the employees and the way Indian IT industry looks at Appraisals and Reviews.


Annual Performance Appraisals has always been a dread to 90% of the employee force. The majority of them don’t accept/don’t agree upon the criterions they are ranked on. Annual appraisals always end up as a nightmare both for the management and the employees. The management either loses a significant chunk of its workforce or somehow manages to cripple employee’s morale.
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Its that time of the year again, where employees and organizations are going through Appraisals. So is everyone looking for learning or just another hike/promotion ?


It’s that time of the year yet again in India.
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Everybody is questioning Performance Appraisals. The fact is has anybody given a thought on what are its Responsibility areas ? No right! So here we are, answering the fundamental question and giving you 5 KRAs of Performance Appraisals


Performance Appraisals are dying.
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In last of our 3 part series, we look at 5 critical elements you can ask to make Performance Review more effective. The questions are related to Feedback & Commitment


In our last of our 3 part series, we discuss how questions on Feedback and Commitment form essential backbone of an effective employee evaluation process.
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In 2nd part of 15 Best Questions for Effective employee evaluation, we look at Competitiveness and Development & how best practices questions can be formed from them. Previously we had discussed best questions on Performances.


 
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In a 3 part series, we revel the 15 best questions you should ask to make the Performance Review process a more effective and beneficial activity for your organization.


How’d you like to have a look at the most effective questions to evaluate employees during performance reviews?
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Here is a list of terms used in Performance Reviews and Feedback. With a lot of confusion regarding the terminology of Performance Reviews, here is a guide to the terms used to have the best practice measures.


Glossary of terms used in Employee Performance Review process.
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The workplace in India is going through interesting times.
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In the online marketing jungle, it is so proclaimed that content is king.
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Is there anything fair about employee compensation?
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Make it Annual, Quarterly or continuous, the real revolution for change in Performance Management has to be within us and not by TECH


Everyone loves a revolution; once in a while; for a real reason.
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A common question that customers ask us during the evaluation stage is “Are you funded? Who are your investors?”
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In many workplaces, failure is not an option. There is a significant social cost that makes many employees to try their level best to not FAIL? Each waking moment! 
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We, humans, are obsessed with numbers.
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The Real Reasons why employees are leaving
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Companies exist for customers.
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Till today, I always had an uneasy relationship with Mr. Ganesha.
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The best thing about imagination is that there is no space for failure or Ifs & Buts. Neither are there constraints. So when we let our imagination dream up to improve, change or disrupt something, that itself becomes the omnipotent driver for realizing it.
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I met a couple of my friends, who were not content with their company gifts. They said that the annual gifts need to change to make more sense. What followed was a funny discussion and everybody voiced their opinion on what their organization should gift them. What struck me that, we are concerned about the annual gifts by companies and not the annual reviews. Especially when performance reviews hold a significant place in life-cycle of employee work experience.
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With competitive high growth environment and perennial talent supply-demand gap, Indian startups have employee engagement on top of their agenda. To ensure they retain the best talent around, startups are looking to change their approach to employee performance reviews.
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Contrary to what many of us think we believe, the most important tool in our lives is neither WhatsApp nor Facebook.  It is that tool which helps us become better. More of that later! Let’s first try to understand what being better means. Being better means improving our human performance – of bettering ourselves in every possible aspect. However, the nature of performance is quite difficult to predict. Performance is never a finished product. Its form is evolutionary; it doesn’t have limits. What actually motivates & helps improve performance can’t be fixed to a formula as it’s typically specific to the individual. However, one thing is for sure – Performance cannot exist without feedback; just as there is no effect without a cause or an output without an input. That is how intrinsically feedback is tied to the performance outcome. So, what then are the characteristics of Feedback that affects Performance? The following are 5 of the key characteristics
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‘Practice what you preach’ is the mantra GroSum works by. We are determined to make employee performance reviews a valuable aspect to organizations, and we abide by that here too. I am going to talk about how my performance review is conducted here at GroSum, and why I term it real-time.
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I went to an Internet Movie Database in search of a movie. Not any specific genre in mind, I traversed through a movie list. The list was sorted on user rating of the movies. More than I found movies, I was surprised to see the recommendation ranking of the them. I found that many of the movies which deserved top ranking were down the list and vice versa.
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Everybody seemed to have done their part correctly. They did what they thought was their role was and were content with it. The question arises, what were they working towards ? Saving the patient, or chasing only individual goals.
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Technology has been a great enabler, but has it still some way to go before it can become our true good friend?
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Though I am Mr. Average Joe, please don’t trample me as I am human too.
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Has anybody seen the shape of sense of ownership? The heading above might pop some images in your mind. It’s not completely true that ownership’s shape is like a funnel, but in most cases it is. But what does the funnel signify? It depicts the fact that sense of ownership is highest at the top in an organization and goes down the hierarchy. Just to clarify, sense of ownership is the feeling that something is yours and you are responsible for it, come what may. Doesn’t it sound good? But like all good things around, for any organization it’s a little difficult to achieve and even dangerous if it takes the shape of a funnel.
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Feedback is the breakfast of champions - Ken Blanchard
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Be it a manager, a HR, the CEO or the employee himself, the employee review system has different perspective for everyone. Some might see it a scorecard to get another promotion, some may look it as a criticizing process, and others might think of it as a time taking task and rest may look it as employee’s effort to achieve goals. It is just like those blind men who depict only those elephant parts which they feel, failing to "see" the full elephant
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It is often observed that there is a considerable dip in employee’s engagement from the time he/she joins a company. This can be very much related to the gas which fizzles out soon after a soda bottle is opened.
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Cricket is the flavor of the season & as we must always learn from our environment; so let’s have a look at some interesting reminders for Performance Management. Why reminders? I believe all of us have reached an age where we possibly know most life lessons – it’s just that we tend to forget these at times.
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In the age of instant Whatsapping, where do Annual Review cycles fit in? While the historically inflexible education system is also gradually trundling towards continuous feedback methods, the corporate world is surprisingly still stuck with annual reviews for managing performance of it’s workforce.  No wonder, the new age employee cannot relate to such archaic methods & view them as form filling rituals that determine their salary increments & bonus quite mysteriously.
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The way an organization is structured is probably the most influential factor to employees’ performance. After all, the structure provides the framework within which employees are assigned responsibilities, go about doing their day to day tasks and derive the freedom, flexibility and inspiration to do their jobs well.
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Customer relationships are usually defined by revenue & profitability numbers. While these are definitely the life blood indicators of any enterprise, there is more to customer relations than just current monetary assessment. Are you tracking your performance with your customer properly? Firstly, let’s try to define our overall goals/objectives with a customer. Typically, these may include –
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Oh, it’s so difficult to let people go.  It is probably one of the single most awkward events in the lives of managers who have to do this to their employees. 
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How will you measure your Sales Person's productivity ? Be a startup or an MNC, it becomes imperative that you not only get the best person to take your business ahead, but you need to make sure that they are being productive. So how do you do it ?


Selling is the most difficult job in the world. Period!!!
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Did you know that the attrition rate amongst the high performer segment of the workforce is 9.1%. That means nearly 
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Do you measure your performance each year as a CEO? What parameters do you consider for evaluation? Are you able to measure it against the performance of your competition & peers? For public company CEOs, a common & acceptable indicator typically is the company’s stock price & its movement over the time when the particular leader is in charge. The stock price is useful as it is indicative of how current performance is in relation to the past, competition and overall market expectation. The Stock Price indicator is however not available to private company CEOs as a performance parameter. This leads them to mostly rely on operational metrics of their organizations to judge their performance. However, these metrics are mostly internal & do not indicate
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Inspite of the all the chaos & uncertainty, organization structure is one aspect in startups that is surprisingly easy to define. That’s when teams are small & everyone mostly knows what everyone else is doing. In most cases, it’s really the CEO & the rest of the team working closely together.
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The world is filled with stereotypes all around. The problem arises when we start believing in these as absolute truth, without using our judgement.
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Did you know that turnover rate amongst the high performer segment of the workforce is 9.1%? It’s like 1 out of every 11 high performers of your company leaving each year. Can you afford it? Doubt anyone would ever answer YES to that!!!
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One of the many causes of anguish for a CEO is when he sees that employees are not taking ownership. He feels that he has already done all that it takes – given them good respectable designations, attractive compensation & fantastic office corners topped up with frequent motivational talks & team-building off-sites. What else can he do to get them to own up? That’s when the CEO needs to check whether his employees know “what to do” Knowing how to do can be figured out at most times. It’s always easier to find an answer to a question that is asked than to figure out what question to ask. This is because when the question is asked, even if we don’t know the answer we at least know what we are looking for. 
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All CEOs have a strategy. Most CEO strategies are very good. After all, CEOs reach their position due to a sharp mind and strategic-thinking ability.
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Performance review is a stressful time in every organization. More the reason why it often gets avoided by both the employee and the manager. 
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“What can’t be measured can’t be managed”. Some people believe that performance reviews can never be objective. The methods have always been questioned due to the bias that can creep into the system. There are a lot of tools available that try to reduce this bias but none can completely get rid of it. The reason is no matter how full proof the system is or how many variables it takes into account it will always be the human who is doing the performance appraisal and his emotions, interactions and perceptions will always be a part of this process. Even if we cannot completely make performance appraisals objective we can at least try to get rid of subjectivity as much as we can. This means doing 360 degree feedback
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Forced ranking or stack ranking is a performance appraisal process that is designed to propel the best performers in a company to the top. It came into popularity after Jack Welch introduced it in GE in the 1980s. So what is forced ranking or stack ranking?  It is a system which forces the appraiser to categorize his employees into three sections. 
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Top talent is in short supply and companies are having a hard time attracting them. Key skills like engineering, analytics, and mathematics are even scarcer. So retention has become a top priority for many companies.
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We are all used to being judged by a lot of people – parents, teachers and bosses. Sometimes we may feel we do not get to have our fair share of the argument. Self appraisal
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In many organizations performance reviews are still done only once a year. Growing number of managers and employees feel that the ‘once-a-year’ performance appraisals are not giving the results expected. More and more organizations are converting their one time performance appraisals to ‘all year round’ performance reviews. 
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Increase your performance review frequency-
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A good place to start is to look at your last self-appraisal and think how the management had acknowledged it. If the response from the management was not that good, maybe this time you should rethink and avoid the same mistakes. 
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The main goal of performance management is to help employees reach their full potential. Managers often forget that this process is a two way street. 
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Are you one of those companies who still use a performance appraisal system which just measures some default characteristics of an individual? Let me guess……it usually happens once annually and these forms will not be touched again for another whole year.
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