Q1: As per my understanding the employee who is working for 6 months will get the increment proportionately and the other employee who is working for more than a year will get full increment hence there will be differentiation.
Q2: If the organization is planning to give equal percentage of raise then it is called as a general increment but not a performance based / linked increment. If it is the same then it's almost a Govt type of an organization and the Promotion process also may be time based in such type of organizations you can not expect any value addition but being a HR person (being a change agent) you have a bright opportunity in case you are able to bring any change, if not better to look for a change.
Thanks and regards
Q1- i got your point that it should be proportionate . can you suggest any mechanism for that?
Q2- i am not saying all are getting same increment but i just gave en example that if two employees are best performers one from senior management and one from junior management then would it be justified to provide just equal percentage of wage. is it possible to design any mechanism for different level of management?
The percentage of increment will differ for both. I think it's not the matter of equal percentage of increment, appraisal is all about accountability and performance. I assume the Senior Manager and Executive's responsibilities must be different and like wise the weight-age to each responsibility or KRA too.
Usually, organization allocates a certain budget or specific increment range for each grade separately. If this would have been there in your organization, you will not come across such an issue.
As you said, it is possible to design a mechanism for different levels of management. I am a Consultant based in Pune. If you want to know in detail or set the right mechanism, you may contact me on my email or phone number.
If you go to the higher level the benefits should be different. If your's is a professional and very particular on rewarding the performance then you should go for fixed + variable pay mode.
In general the quantum of increment amount differs from grade to grade.
Ex: A, B, C are the performance ratings then the amount what you are allotted for a lowest position of an Assistant is different from the amount you allotted to a Executive / Manager / GM / Vice president etc., The base increment will be less but the performance bonus / variable pay etc., etc., will be higher basing on their performance grade.
Proportionate part is simple calculation: The salary of the employee is Rs.10000/-, rate of increment is 10% per annum, he worked for 6 months then 50% is Rs.500/-.
Thanks and regards
q1- how to differentiate in appraising between employee who just worked for 7 months(newly recruited) and one who worked for whole year?
A-1: Why appraisal is done? To know the performance and its productivity during the period. The two employees to be considered on equal norms. The new employee to be paid 10% less amount being considered for older one.
q2- if two employees has performed really well in appraisal review one of executive level another one in senior level . Would it be legitimate to give them equal percentage raise?
A-2: The same % of hike to be given for both the category to maintain parity. The %of hike will be equal but not the amount.