Business Mentor, Consultant And Trainer
Learning & Teaching Fellow (retired)
Firstly, good to note that you have started Performance Appraisals in your company but then you have confusion in Performance Appraisal and Performance Management System. Former is part of latter.
PMS includes identifying KPIs for your business, setting up KRAs for every department/position and then measuring the performance. Giving salary increments is the last part of it.
There was extensive discussion on PMS earlier. Click the following link and read all the posts by various members (including my three posts):
To know what is the PMS practice, click the following link:
Dinesh V Divekar
23rd May 2011 From India, Bangalore
23rd May 2011 From India, Pune
It is always a dilemma when existing staff get less than new starters. It happens all the time.
I am no HR expert.
Have a lovely day
A retired academic in the UK
23rd May 2011 From United Kingdom