B K BHATIA
Director Of Company
+2 Others

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Dear Seniors,
As April is near I hope the performance appraisal has started in all the organizations.
The same is started in our organization also. Let me give a short note of our appraisal cycle -
The process begins with setting of the KPA's in the beginning of the year. The KPA's are set individually linking to the department objectives. Based on the KPA's the performance is assessed. The Performance appraisal report is then used for increments, Promotions & benefits.
Clarifications required:-
Even though the Individual KPA’s are linked to business/department objectives I find some of the issues. Since the KPA’s are individual, sometimes we see team work is lost within the department. Employees are worried about achieving their goals.
Other way round from employee’s perspective, one person achieves his goals but department fails then his increments also affected, as a HR how to resolve this dilemma?
Please share your views on this.
Regards,
Raghavendra B R

Dear Raghavendra ,
Always you should approach with the individual performer who performing and achieving the targets.
If team fails put a ball into the Court of manager and senior management.
If people are performing good obviously they must be rewarded.
Regards,
Sriram

Hi Raghavendra,
Increments and individual incentives are 2 different things. Increments are based on the KRA/KPAs which you set. KPA are lied down based on the company's goals breaked down into department goals. If a individual has successfully contributed to KRA's then he is eligible for increments.
Incentives again should have goals and criteria. Here it depends on the overall achievement of department.
If you want to strengthen the team building, then align their KRA's to your objective. This can solve your problem.

The weights allotted to individual & team goals vary with employee level. For example, at junior level the team delivery is far more important than individual accomplishments. On the contrary, at the level of Managers & above, the individual goals are as important as the team output. And for Senior Managers/ Head of functions, the individual goals (which are directly aligned to corporate objectives) carry much higher weight.

Percentage weights may be in the ratio of 30% & 70% for individual & team goals for Junior level employees. And this ratio may reverse for managers, and become 80 to 90% as the weight for individual goals in respect of the Head of Functions.

The incentives/ increments are to be regulated based on these weights at different levels.

The spirit behind allocation of weights in the manner discussed above is to cater for higher levels of accountability at senior level & to promote team effort at the working level. The ratios may vary vastly for different industry verticals.

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