Dinesh Divekar
Business Mentor, Consultant And Trainer
Manager, Operations
+1 Other

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Hi all,
I am new as HR in a IT company.
I want a format to mark Employee Work Performance, that will help me to decide appraisal or salary increment demanding by Employee is valid or not.
I also want to show them reason why they are getting increment or not.
Kinldy help me with some formats.

From India, Delhi
Dear Saniya,

It is common mistake on the part of HR professionals or business leaders to look Performance Appraisal (PA) only for salary increase. PA is of far greater value to the organisation.

It appears that you do not have proper Policy on 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 heading of the heading is for IT companies, the reply is applicable to all the type of 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.


Dinesh Divekar

From India, Bangalore
It is a great idea and if you can find the perfect quantitative solution - it will be an ideal world. every employee will have a performance score and you can easily decide what score deserves what increment.

However, in real life, situations will not be so clean cut.

The biggest problem will be - how do you quantify performance and how do you benchmark performance in different departments and areas of work.

The solution will not be perfect but a good solution can be worked out.

Identify every employees goals for the quarter/year. Determine how do you measure success and partial success. Ensure the employee completely understands expectations and success cirteria. The more objective, the better. Do that for all employees under you. In a big organization, you will build a model and let the reporting managers fill in the details.

Then, at the appraisal time, all you got to do is make the reporting manager sit with the employee and mark scores.

Obviously, it won't be as simple as the explanation above but you can build a very good solution here.

From India, Delhi
Dear Bodhisutra,

The opening remarks of your post are "It is a great idea and if you can find the perfect quantitative solution - it will be an ideal world. every employee will have a performance score and you can easily decide what score deserves what increment."

Well gentleman it is not imaginary world. It is a real world indeed. I have designed performance measures that are as good as putting performance meter to the employee. For few departments it is difficult to measure the performance viz. Administration, Legal, Liaison etc. For office secretary or security personnel also it is not possible to have 100% measures. But for others it is very much possible.

I say this with conviction because I provide consulting services to establish Performance Management System (PMS). I have established PMS for varied companies like port, real estate developer, fuel projects, DG set service centre, telecom tower maintenance etc.

For me one of the most the challenging task came when I had to design measures of performance for shift personnel working in shipping port. Their shift duties are different from those who work in hospital, factory, airport etc. Their work starts when vessel berths in and ends when vessel berths out (in/out of a vessel in simple words). In which shift berthing in will happen that you cannot say. Secondly, at what time berthing in will happen that also cannot be estimated totally. Therefore, establishing measures of performance for shift personnel was a great challenge. Before my consulting, they were just measuring the total turnaround time for the vessel's berthing in and berthing out. However, it was difficult to establish efficiency or inefficiency of particular shift. However, I solved that challenge too. While designing the measures of performance, I had taken into account the different types of cargo like sugar, coal, bauxite, aluminium, dolomite and so on.

Nevertheless, purpose of PA is measuring the organisation's performance then department's performance and lastly of individual performance. Certain vital measures are never measured. Recently I met Marketing Head of prominent steel manufacturing company. I just asked casually what was the marketing cost per ton and he could not tell me. One of my clients never measured the value of the finished goods inventory against the total sales in the given period. My one more client never measured the accuracy of the contractors' bills that site engineers or project managers forwarded to their billing department. When measured, it found to be just 37% Going further, let me reveal that 99% factories in India never measure scientifically Inventory Carrying cost of the raw material or of finished goods.

This is where HR professionals make a mistake. They just skim the surface and call it as PA. That is trouble of HR professionals or even business leaders is!


Dinesh Divekar

From India, Bangalore
Your reply is useful for me but i want to clear more i.e.
Usually we offer PA on base of employee performance that is in every 3 months, but if any of them are not qualified for Appraisal them how to provide Performance report card to divert all further discussion.

From India, Delhi
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