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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.
15th October 2013 From India, Mumbai
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
15th October 2013 From India, Kolhapur
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
16th October 2013 From India, Hyderabad
It is ultimately the convenience of those involved in the process.
16th October 2013 From India
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.
19th October 2013 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.
23rd October 2013 From India, Gurgaon
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
23rd October 2013 From India, Delhi
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.
23rd October 2013 From Maldives, Male
24th October 2013 From India, Bangalore