Information On KRA, KPI, Performance Appraisal And Performance Management System - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Rahul Girish
Hr Officer

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Hi everyone,
I am working as an HR Executive (Fresher). Now I am confused in the case of Performance Appraisal system. I had no platform to learn this from my company. Now, i am the one who need to set up a Performance Appraisal System.
Our company employee strength is 20+.....
It would be great if someone could help me out....
Also I need informations regarding calculation of Basic salary/HRA/DA/PF/ESI/Professional Tax!!!

Dear Rahul Girish,

It appears that you do not have proper Policy on Performance Appraisal (PA) well in place. When employees join the company, during induction itself they should be told that when their appraisal will take place. The salient features of policy could be as below:

a) Appraisal may be done quarterly. Appraisal cycle of one year is too long. Nevertheless, salary hike may be done a son 1st April or 1st Oct.

b) Employees who join in between, when their first PA will take that can be decided in the policy.

c) % of salary hike should be linked to the score of PA.

The important point is PA concentrates only on the individual performance. We need to go beyond and measure the business performance. For this you need to have well-designed policy on Performance Management System (PMS). There was query in this forum on PMS. I have given reply to this post. Click the following link to refer the reply:

Though the above link is for IT company, the contents are applicable to all the type of industries. In the above link, you will find further links. Go through all the links and you will understand the subject.

For further doubts, you may call me on my mobile number.


Dinesh Divekar

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