I am working in a newly start up company and we are planning for next year performance appraisal. i want to ask you why performance appraisal in most companies is done in the month of March April? what are the pros and cons of doing it in some other month? Please provide some useful insights on it.

From India, New Delhi
Hi Methi,

I doubt if there is a written rule asking companies to do appraisals in March-April as I have seen companies do so in the month of Dec-Jan as well.

Basically appraisals are to be done periodically. Appraisal is a periodic measurement of the job to check how much improvement has the person done. Ideal time frame is 1 year (though many suggest doing in every 4 - 6 months).

Now we can follow calendar year or financial year.

If we follow calender year, assessment and appraisals take place in Dec so that your effective salary and increments are given from the month of Jan.

If we follow financial year, assessment is done in March-April so that the increment is effective with April's salary.

I believe most companies doing it in Mar-April so that it coincides with the Financial Year and that calculating the taxable income is not a big tax.

However many small companies who do not have many resource to be handling all the project completion as well as doing appraisals altogether in March prefer doing it in Dec-Jan time frame.

As long as the company does the appraisals periodically and fairly, I don't think there are issues with which month you do the appraisals. Or for that matter if the appraisal month in you company is different.

Seniors kindly correct me if I am wrong.

From India, Mumbai
Let us put things in this way. Basically why performance appraisals are required?. Obviously to ascertain who has done what and who has done not. This is to facilitate or ascertain for any rewards to be given to the best performer. This also helps to create healthy atmosphere of competition in the company.
The financial year of all companies is from April to March. Obviously, it is always possible to measure the performance, once the charts and figures are closed on 31st March.
I appreciate the explanation given by Ankita Shah which is absolutely correct.
Adv. K. H. Kulkarni

From India, Kolhapur
Hi Methi,
If your just doing performance appraisal then what ever Anikta said is absolutely correct.If your doing performance appraisal along with any increment or promotion then the performance appraisal is suggestible to do in the month of April.The reason behind it is,normally most of the company's do their financial review on last financial year in the month of March after review is done then the management will check where we stand in terms of company's profit,according to the the profit ratio the management will take a call on Increments.
Seniors,If any thing wrong,Requesting you to correct it.
Thank you & Regards
Harish Kumar

From India, Hyderabad
If the April-March cycle is used, then the idea is to coincide with financial cycle budgetary cycle. However, this process will clash with other budget related activities. So, in L&T, where I worked for 31 years, the appraisal cycle is April-March only but the process will be from July to June. The logic is simple: Once the budget activities for the next financial cycle is decided, objective setting for next year will become focussed and percolated down to the bottom-most employee in the pyramid. Further, it will not clash with other activities of the company and employees can focuss fully on PMS.
It is ultimately the convenience of those involved in the process.

From India
Normally performance appraisal is doing periodically ,ie. anniversary date of employees date of joining. Nowadays most of the companies review their performance in quarterly basis as well. Which is very effective and helpful to find out the best and the worst without waste any time.
I think it can be implement quarterly, half yearly or yearly according to the sector. For eg :- In banking or financial service sector normally doing their employee performance review (EPR) on yearly basis.
Hanees uk

From India, Delhi
It depends on the strategy of any company that on what basis company wants to give salary increments. If any organization decides to give a percentage from its revenue, in that case company will do performance appraisal after closing of the financial year which will be applicable from Jun-July.
In some cases it any employee resigns and company wants to retain him/her in that case company can give a salary hike in that month itself. And I feel it happens in almost all the organizations. And all the above statements given by seniors are also correct.
I want to make it clear that the it is applicable when performance appraisal is done Yearly. If any company follows a strategy of Quarterly or Half yearly appraisal then it can be done at any time, because it will be systematic and continuous.
Seniors, Please correct me if I am wrong.

From India, Gurgaon
Hi Methi

Very nice and relevant question. @Ankita - very well articulated. @Sundaram - Valid point and practical as well. BUT ( there is always a but...:-))

You need to decide first why you want to do a performance appraisal. Unfortunately in India, we have somehow confused ourselves that performance appraisal is done for increment / promotion purposes and that is the only reason why the moment you talk of a performance appraisal, you automatically picture increments and promotions...:-). That is also the reason why we have always had a annual performance appraisal system coinciding with our financial calenders. Is it the right way? Not really...

Performance appraisals must always be done periodically. Ideally every quarter but at least twice a year. Take a scenario of a person being appraised once a year. How many of us remember what we have done 6 months before ? and if you dont remember then how are you supposed to get appraised? what happens when your immediate manager leaves mid year. How are you supposed to get appraised then?

You have an ideal situation, since you are putting in a new system, to make your performance appraisal system sturdy, periodic and effective. Just remember, a good performance Appraisal system can become a fantastic motivational / envelopment tool for your organization.

It is for you to decide. A PMS to give increments and promotions or a PMS to improve the organizational efficiency and effectiveness...:-)

All the best


From India, Delhi
Performance can be defined for a task, for a day, for a week, for a month, year or life.The time period for performance is important. Time for IT organisations is limited to a quarter or a three-month period.They may also be defined by tasks or project and not time. Time may become the target.
Normally, individual performance is judged in relation to a role and across a short period.We normally talk about how well an individual done in a given role across a period of 2 or 3 years. While organisations are interested in this performance, they are more concerned with the individual's performance in a financial year or parts of a year.
some of the organizations which are project driven are interested in the individual's performance in a project as well as in a role.For example, one wants to know how he has handled this particular project as project manager. Thus, in the context of organisation , performance management is time bound as well as role specific.

From Maldives, Male
Performance Appraisal evaluation is periodical it depends of employee status such as Trainee period,Probation period and Annual performance to evaluate employee performance of the employee. This Annual PME is linked with salary revision based on the performance the management shall reward hike in salary.

From India, Bangalore

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