Dear Madhu,
How many employees do you have in your organization? Start with:
1) Defining the job responsibilities (Sit with the employees).
2) Prepare the job profile of each and every individual (Sit with the supervisor or manager).
3) Specify the KRA and set the goal depending upon all the above-mentioned points (Sit with the supervisor or manager).
4) Now you can start with the performance appraisal system:
a) Create an appraisal form. Set the parameters of appraisal like technical skills, behavioral skills, leadership skills required. Allot weightage to them.
b) Start with a 180-degree appraisal system and get feedback from appraisee and appraiser.
c) Fix the slab of increments depending upon the weightage score. Get the approval of technical senior members and HR head.
I think this will help. Any queries, please revert back.
Regards,
Namrata