Year after year, employees perform with the hope that the organisations will recognise their performance. On the other hand, organisations are constrained by the budget for salary increments that are allocated by management each year. The Human Resources (HR) in most organisations often finds itself caught between the expectations of employees and the demands of management.

Interestingly, the concept of the normal distribution curve is sometimes applied inappropriately or forcefully. Management may use a forced rating system to adjust employees’ performance ratings, often overlooking individual contributions. In the worst cases, when forced ranking fails to yield the desired results, organisations may implement cost-cutting measures under the pretext of Normalisation.

Who suffers more: employees or organisations?

While it may seem that employees bear the brunt, it is ultimately the organisations that suffer the most.

The million-dollar question is: if both employees and organisations experience negative consequences from the inappropriate use of this concept, why do organisations continue to apply this scientific tool in such an unscientific manner?

The reason lies in the fact that organisations often lack the proper HR tools to prevent what can be termed “normalisation.” There are two main reasons for this:

• Organisations struggle to set right KRAs despite popular concepts like SMART, SIMple, BHAG etc., leading to employees not setting correct KRAs and overachieving on their performance. The main reason is not having the right Performance Management Framework, despite concepts like MBO, BSC etc.
• Organisations lack a tool that empowers managers to make appropriate decisions while granting ratings to employees.

Prajjo Solutions

Prajjo on its platform has solved both the challenges with its two most acclaimed software:

1. SGR: The Performance Management System

SGR (Strategy, Goals and Review) has removed two of the oldest obstacles in making PMS effective:

• Goal Cascading: Organisations can now achieve more than 95% Goal Alignment from top to bottom management.
• Function Contribution: Every function is involved, and organisations can calculate the value of previously marginalised functions.

SGR is a copyrighted product.

2. IMS: Increment Management System

Ideally, immediate managers should know the actual performance of individual employees. In practice, they often receive the least weightage when deciding performance ratings due to lack of proper tools, leading to biased ratings and higher wage bills.

Prajjo has developed a comprehensive Increment Management System (IMS) to empower managers and improve the quality of recommendations.

Organisations using SGR and IMS can avoid relying on the flawed concept of Normalisation, which can lead to undesirable results: Unhappy people – Unhappy Organisations.