Performance/Productivity Linked Incentives/Bonus

Dear HR Friends<
I am working in a multinational compnay and every year we have two kinds of appraisal - one in april every year for salary and allowances and another one in december every year for payment of incentives which normally runs on calender year basis (because our budgets are on calender year basis). As of now, the appraisal for incentives are discreationary on the MD and nothing in wrting or any measurement is done.
If somebody has any suggestion on the same, please advise>
Regards
Rohit Kapoor

See, there are 3 different practices across industry
1. incentives against MD/Director's recommendations
2. incentives against systematic performance appraisal
3. no incentives
If your MD is interested, you can go for 2 but better to have a discussion with him before initiating anything further. Before going to meet him, do some homework and prepare a presentation on " benefits to the organization if go for performance appraisal for incentives + cost"