I give below some points to execute a Performance appraisal system in your organization:
01. Create employee gropus based on departments / divisions. e.g. Sales, Purchase, Finance, etc
02. Create a separate list of job functional responsibilities for each each department. I will give some functional responsibilities for Sales people: (a) Presales Activities (b) Product presentation (c) Lead Generation (d) Converting leads to prospects (e) Price negotiation (f) target acheivement
The above responsibilities can be treated as skills for the respective department and give a scoring mechanism for the performance against each skill. Allow the employee to self appraisal; assign supervisor/final authority for the appraisal and allow him/her to appraise the employee. Based on the net score obtained take the appropriate steps to promote / salary increment / transfer the employee.
The above process can be executed using a HR software. We have a ready made software to handle the process. The software can further be customized based on your requirement.
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Jayakumar 22nd June 2009 From India, Madras