dear i am asking means how we decide the budget amount like co. want to give 2 lacs on increment or 4 lacs etc. r u getting my point.
means or the basis of profit who decide this that how much amount for increment/budget.
The appraisal budget i.e. the quantum of the increment to be offered to the employees is decided by the Board of Management and their decision is based on
1) Org. future plans - Eg. if rapid expansions are planned then for the need of capital there may not be very high increments.
2) Increment benchmark - What others companies of your size and in the same industry offer : look out for diff. reports published
3)Org. Budgets and projected P & L
There may be other factors also to consider and it differs from org. to org.
Saurabh
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