Consultancy_hr & Ir
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Hi All,

Query: We belong to IT company. I have to standardize the Performance appraisal form by giving some formulaes. So that Employees can calculate themselves about their increment. I have been asked to assign some weightage in the form of Percentage. I know there are different different methods for this & depends upon company to company.

For your reference, We are rating employees on 4 point scale. There are 10 columns for KRA against which Employees rating & Manager ratings are written. There are 12 columns for Core values & Leadership Skills.

Now I want some formulaes so that employees can calculate themselves that they got appraisal of 10% , 20% or whatever amount of perecentage.

I have tried some formule. Please correct me if am wrong.

FORMULA : We will calculate Total Rating by adding all the KRAs 's ratings of Manager & then Divide "Total Rating" by 10 = Average rating "A"

Same with "Core Values & Leadership Skills" There are 12 columns for it. Then we will add the Manager rating & Divide "Total Rating" by 12 = Average rating "B"

FINAL RATING CALCULATION : I have assigned 60% Weightage to "Average Rating" A & 40% Weightage to "B" ( Because Average rating A is related to employees tasks thats why 60% weighatge is assigned & 40% assigned to "B" related to Core values & Leadership skills")

Average Rating "A" : 60%

Average Rating "B" : 40%

Final Rating C = A* 0.6 + B* 0.4

If C = Tick appropriate box to confirm Final Rating & associated Performance Indicators.(PI Denotes to Performance Indicators)

a) 3.50 - 4.00 Outstanding( 2PI) b) 2.50 - 3.49 Very Good ( 1PI)

C) 1.50 - 2.49 Good ( 1PI) d) 0- 1.49 Improvement Needed ( 1PI)

I want to convert 2 PI , 1PI into some standardize Percentage So that at glance, Employees get to know that how much they got appraisal in the form of Percentage.

Kindly assist me in fornulate Appraisal system .

From India, Delhi
Dear Swati,
As per your post,firstly KRA of employee should be SMART.
A Smart Goal (KRA)
1.Specific : Clearly stated what to do and how to do?
2.Measurable: States how the performance will be measured.
3.Agreed: Goal targets are agreed between the manager and employee.
4.Realistic: Is relevant to the employees job role and to the organization.
5.Time Bounded: States a time frame.
Enclsoed KRA 1st sheet for the more clearity.

From India, Ludhiana

Attached Files
File Type: docx KRA 1 sheet.docx (20.8 KB, 1735 views)

Based on the information shared, I find that you have adopted a decently professional approach.
However since you are into KPA based Performance Appraisal System I suggest you look at following suggestions.
1) Are detailed "job profiles" for each job in place?
2) Normally we ensure the each KPA is aided by "targets", "performance indicators" and then "weightages".
3) I suppose KRAs, Targets and the Performance Indicators are decided jointly by the Appraiser and the Appraisee.
4) I also suppose "measurability" of performance is a settled issue in your system.
5) How about "identification of training needs"?
6) And one off excellent performance on a special assignment?
This is just by way suggestions. Need clarification. do not hesitate to take contact.
January 16, 2015

From India, Pune
I understand from your question that you are seeking guidance on distribution of increments or rewards and not the overall performance management process.
Your approach is good to arrive at the performance indicators.
In my experience, increments are a function of budget which vary from year to year and depends on number of people who are rated in each category. In all organizations, the increment is communicated separately so that affordability can be determined by CEO, CFO and HR head. Once it is finalized then you can decide to publish gradewise, performance indicatorwise increment matrix to all or just to managers. Typically, you will have to create a grid and apply to salaries of all to compute total impact of increment for the whole company. So delink the increment with performance indicator

From India
swati pls share your KRA Form then it would be easier to drive the formula for PI and will help the all members
From India, Mumbai
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