Human Resources in India: How to Approach Employee Performance Management?

Annual Performance Appraisal

In most Indian companies, the performance of employees is reviewed and assessed once a year in what is called the Annual Performance Appraisal. This can best be compared to what most European HR professionals call the assessment interview. The employee’s performance is tested on the basis of the set and achieved company goals. If the assessment is positive, this can be rewarded with a salary increase. But there is more than just a salary increase.

With good employee performance management, the organizational goals are clearly shared with the employees. All employees can define personal goals that contribute to the end result of the organization. This creates a sense of involvement with the company, the expectations for the employee are clear, and there is enough room for personal development. Because employees themselves determine how they give substance to the way in which they want to achieve the goals, it creates confidence in the knowledge and skills of the employee and boosts motivation.

Working in Indian culture: hierarchy

Before we apply the above directly to your company in India, it is important to understand the Indian office culture well. As Michel Koopman, former director of the Leela Palace Hotel in Gurgaon, explained to us earlier, there are a number of differences with our Western way of doing things. For example, in India, hierarchy is very important in the workplace. The hierarchy determines who makes the important decisions and which tasks can and cannot be performed in certain functions. Indian employees are therefore used to carry out instructions from the boss, without providing their own input, let alone criticism.

Maintaining good relationships with employees and colleagues is essential in India. There is plenty of room for discussions about private life and it is not unusual for the entire office to be invited to a birthday or wedding party. The intertwining of work and private life in India is also visible in the long hours that Indians are prepared to work. It is not unusual to sit in the office until late at night to meet a deadline. This is partly due to time management. Arriving at the office on time in the morning can be challenging, but that is compensated with extra hours in the evening.

Employee performance management in India

When devising employee performance management as an international company in India, it is important to take these cultural differences into account. Many Indians have fixed expectations due to the hierarchical system, for example, in a management position, in terms of salary, responsibilities and especially about what can be delegated in that position. It is therefore very important that the tasks and expectations from the company are described and presented as clearly as possible. In addition, it is smart to carry out a performance review more often than once or twice a year. For example, opt for one long conversation and three shorter evaluation moments. This way you can test more often whether the way of working that you intend is being adopted.

And if you want to express criticism during the performance review, think carefully about how you do this. Always ensure that the conversation is conducted in privacy, so that the employee does not feel embarrassed in front of others. Talk about some lighter, personal things before you start the performance review, for example ask about the employee’s family. During the conversation, pay close attention to your own body language, avoid closed postures such as arms crossed or hands on hips, and share your criticism in a constructive way. Here too, it is important that the criticism is explained as clearly as possible, so that the employee does not see it as a personal attack, but immediately knows how he or she can handle it differently in the future. Finally, be lenient with being late and exceeding deadlines where possible. As former KPN manager Jasper Fortuyn previously told us: “That is one of the aspects of Indian culture that you have to embrace, because you simply cannot change that”.

Workshop: Efficient collaboration with India

The way of communicating in India differs fundamentally. Understanding each other is the key to success. Unfortunately, things often go wrong in this area. Based on your specific challenge, IndiaConnected sets up a personalized workshop for you with our HR experts in which we can address questions such as:

• Which communication strategy works?
• How do I get good feedback from my employees in India?
• How do I manage my team efficiently in India?
• How do I develop proactivity in my Indian team?

We train European and Indian teams, separately or better yet, together. The result of the workshop is more mutual understanding, more efficient communication, more job satisfaction, increased efficiency and better results.