Dinesh Divekar
Business Mentor, Consultant And Trainer
Nikita Dharia
Executive- Hr & Administration
+2 Others

Hi, everyone.
I am working as an Executive- HR & Administration in a mfg firm, 42+ employee strength, have joined a month ago and prior to this org i was associated as a Recruiter & HR Trainer in a consultancy. I am a commerce graduate but aware of most things in HR, also i have sound knowledge of various performance appraisal methods but haven't used practically.
My current organisation had no performance appraisal system and i am setting a new one. Can anyone please guide me with the easiest process and practical implication to performance appraisal?
Also what is the min/max hike given/practised in india?
Thank you.
Dear Nikita,

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). Earlier, I have clarified the difference between the two. You may click the following link to know the difference:


While designing KRAs, please remember the following formula:

Job Description + SMART Principle = KRAs

Click on the hyperlink to know about the SMART Principle

In one of my posts, I have uploaded Sample KPI and KRA Manual. You may refer the following link to download it:


Final Comments: - Designing KPIs and KRAs is not that easy. To do this, you need to work under some expert and to gain expertise, it takes years. I have seen professionals spending decades in the industry but were unable to develop KRAs for their own department.

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


Dinesh Divekar
If you are interested in learning about rating scales, read LINKERT Rating scales (found in internet although best if you get a book from the Library. Marketing and brand managers are quite familiar with Linkert scales).
As for developing your own performance appraisal system, you may want to read up on
competencies assessments programmes. When you have decided on what factors are to be used on the different categories of employees, you may want to use SPSS software to
validate and verify your rating factors.
Get your IT experts to help you for SPSS is a very powerful and useful tool for HR professionals.
Pls tell me the procedures of appraisals. What are the techniques and steps?
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