Infosys launches iCount, its new appraisal system
Infosys introduced iCount, its new incentive-based structure which will replace the old performance appraisal system. This method endeavors to disproportionately remunerate individual workers on the basis of specific targets. As part of iCount, workers will be given "feedback and subjected to reviews throughout the year rather than just an annual appraisal." Infosys said iCount was part of its CEO Sikka's "new and renew" strategy.
A performance appraisal (PA), also known as the performance review, or performance evaluation, is a process by which the productivity of a worker is documented and assessed. Performance appraisals form an essential part of career advancement and consist of regular feedbacks of employee performance within the companies. These appraisals are conducted at least annually in most organisations.
Many companies are choosing to embrace a new system called performance preview instead of the "one-side-accountable, boss-administered/ subordinate-received performance reviews." The performance previews provide a timely check and feedback to the employees and facilitates immediate damage control rather than an annual report. Moreover, these previews are aimed at taking the focus away from the boss's authority and target the team member's individual strengths.
Performance reviews though aimed to increase productivity, have proven to be rather "ineffective, unreliable and unsatisfactory", according to research on it. The research highlighted that these reviews consume a lot of time and leave most employees dissatisfied and disgruntled. A once-a-year, backwards-looking conversation with the boss does not answer the challenges that organisations face. Though intended to be objective, it is anything but that.
In the U.S., 6% of Fortune 500 companies have done away with these rankings. It had been found out that companies such as Deloitte spend as many as 2 million combined hours in performance previews.
The 4 question performance approach (employed at Deloitte) makes the managers answer 4 questions. The managers have to agree/disagree if they think an employee qualifies for bonus/compensation increase; and if he is needed on the team. In the next 2 questions, in Yes/No terms the manager will ascertain if the employee is a low performer and if he is ready for promotion.
Accenture, one of the largest consulting, technology services and outsourcing companies in the world has decided to get rid of the annual performance review. The company plans to implement a better system, in which employees will receive timely feedback on an ongoing basis following assignments from their managers. This disbanding of rankings will come into operation in the 2016 fiscal year.
IBM CEO Virginia Rometty, at a townhall in one of its biggest centres in Bengaluru spoke on the necessity to reform and reinvent IBM's employee governance structure. She stated that a new app-based employee evaluation criterion would be employed for the India operations, called "Checkpoint". According to the new scheme, workers will be evaluated atleast every quarter, replacing the existing annual appraisal system.