Performance Appraisal Method - best to use in small companies? - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
V Garg
Hr Generalist
+1 Other

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Hello Friends,
Hope you all are doing good. I am HR Generalist in a small company wherein I have to make an appraisal form according to various parameters in regard to performance appraisal. So can anyone suggest me which method of performance appraisal is best to use in small companies. Also Kindly mention various parameters on basis of which we can appraise the employee in an organization ???
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Dear V Garg,

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:

https://www.citehr.com/511936-pms-company.html

Though the heading of the link is for IT company, the contents are applicable to all the industries. In the above link, you will find several other links. Go through all the links patiently. It will improve your awareness of the subject.

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

Thanks,

Dinesh Divekar


Appraisal systems are implemented in order to make observations and measure the progress of an individual in any domain. An appraisal system may be implemented in its original form, or it may be customized in order to meet specific requirements. Companies may also devise their own performance appraisal systems to cater to their organizational needs.
Corporate Performance Management System
Performance Appraisals are in 2 ways - one is self-appraisal and the
other is appraisal by HOD. The self-appraisal is mostly seen in
Software companies like WIPRO, INFOSYS, etc. The appriasal by
HOD is seen in Public Sectors. The main reason for collecting
the appraisal is to grant annual increment/hike in salary in Software
companies in addition to his contribution towards his assignment.
In public sectors, the appraisal is obtained more for promotions
than for increments as the increments get automatically sanctioned
except in specific cases. The formats differ from public sector to
private sector and software companies. We can download best
appraisal forms from internet. Now-a-days self-appraisal is
going momentum as the superior has to agree or deny the
entries made by the employee which is also transparent to
employee. Any negative remarks by the superior has to be
intimated to employee to correct himself and also the reasons for
decrease / increase in salary
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