How To Redefine Performance Appraisal Policies In SMEs

Human capital management now does not only rely on the 'one size fits all' thinking. Talent related decisions in today's context rely on a plenty of factors like company size, diversity of workforce, transforming employee expectations among many other critical factors. Small and medium sized companies come with their own set of unique challenges and opportunities when it comes to talent management, which may not be always seen in conventional large organizations. 

Most small and medium enterprises in their initial growth phase do not have clearly defined people management practices and goals. SMBs often depend on non - formalized, temporary or existing resources to carry out Human capital management (HCM) processes such as recruitment, learning and development and performance management. 

The problem with yearly appraisal: 

The UK's Chartered Institute of Personnel and Development (CIPD) says that at its best, performance management is a holistic process which ensures employees' performance contributes to business goals. It brings together many elements of good people management practice, including learning and development, measurement of performance, and organisational development. 

Performance Management is a continuous process. It involves ensuring that employee performances contribute to both team goals and those of the business as a whole. The target is to continuously improve the performance of individuals and that of the organisation. 

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